CC 07-16-2024 Searchable Packet.pdf — Cupertino City Council, July 16, 2024 (part 2 of 5)

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3. Pipeline Consequence of Failure Evaluation Methodology Establishing the methodology for evaluating each pipeline's consequence of failure is the most involved and pivotal portion of this study because, in the end, methodology will determine results. Therefore, it is imperative that the methodology is developed such that it captures all key consequences or impacts that result from pipeline failures and accurately measures them.

Various consequence of failure evaluation methodologies have been developed for different water utilities and for research purposes. However, upon review of various studies, it was found that a new and customized methodology was necessary to more specifically evaluate and address the particular needs within the Cupertino Lease Area. This section presents SJWC's customized methodology which is intended to provide an objective and systematized process that will yield quantifiable and justifiable consequence of failure results. The section is structured as follows:
• Section 3.1 Impact Categories - Introduction to key impacts that result from pipeline failures
• Section 3.2 Impact Category Measurement Parameters and Tools - Discussion of parameters and tools used to measure impacts
• Section 3.3 Pipeline Consequence of Failure Scoring Methodology- Explanation of scoring methodology used to develop final rankings

3.1 Impact Categories
The following four impact categories encompass what SJWC believes to be the primary societal impacts when a pipeline fails:
• Health & Safety Impact
• Transportation Impact
• Business Impact
• System Operations Impact
The following subsections provide explanations as to why and how pipeline failures play a role in these four impact categories.

3.1, 1 Health & Safety Impact
The most critical societal impact of pipeline failures is related to public health and safety.

Pipeline failures often create a major drop in pipeline pressures, potentially allowing contamination infiltration into pipes. According to the California Division of Drinking Water (DDVV) Waterworks Standards, distribution systems are required to "assure that the minimum operating pressure in the water main at the user service line connection throughout the distribution system is not less than 20 pounds per squar~ inch {psi) at all times" (Chapter 16, Section 64602). However, in the event of a pipeline failure, pressures often drop below 20 psi, and sometimes even below O psi (atmospheric pressure) giving rise to potential contamination Pipeline Consequence of Failure Study
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I.Ills.• Jose w,u ... C°"'p•n:r PIPELINE CONSEQUENCE OF FAILURE EVALUATION METHODOLOGY of the water system. In addition to water quality concerns, pipeline failures can also compromise public safety due to flooding. Depending on the extent of flooding, conditions may be such that the general public is more prone to injuries. lastly, public health and safety may be impacted due to users being put out of water service while the failed pipe is hydraulically isolated for repair. Pipeline failures can also negatively affect firefighting capabilities. However, due to the momentary nature of pipeline failures and the infrequency of fire events, fire-flow impacts during a pipeline failure were not included as part of this study.

3.1.2 Transportation Impact
In densely populated areas such as the San Francisco Bay Area, transportation is a critical component of public life and is heavily intertwined with numerous societal functions. Therefore, it is essential that all corridors related to public transportation such as highways, roads, and passenger railroads be minimally disrupted. Pipeline failures, depending on magnitude and location, can cause major disturbances to transportation corridors due to flooding.

3.1.3 Business Impact
Pipeline failures also negatively impact commercial and industrial businesses, possibly resulting in economic loss. \JVhen flooding occurs due to a pipe failure, all businesses that require customer or worker access may be temporarily inaccessible, thereby halting or impeding business operations. For example, potential customers of restaurants and shopping centers would be deterred from entering due to flooded conditions in parking lots, walkways, and building interiors. In addition to flooding, service shutdowns due to hydraulic isolation may also negatively affect businesses. \JVhile heavy water-consuming businesses such as restaurants, car wash stations, and certain heavy industries will be most affected, nearly all businesses will be affected as customers and workers will temporarily have only limited or no access to water.

3.1.4 System Operations Impact
There are specific pipelines that must remain in service for SJWC to maintain safe and reliable system operations. These pipelines include SCWvD transmission mains and critical pathway pipes that keep important water system facilities operational and hydraulically connected to the system.

SJWC relies heavily on SC\/VvD for its water supply. On an average water demand day, the District treats and delivers approximately 70 million gallons of wholesale water per day to SJWC through their large transmission mains which range from 20-inches to 6.5-feet in diameter in SJWC's service area (20-inches to 48-inches within the Cupertino Lease Area). A catastrophic break in an SJWC main that crosses a District transmission main could potentially result in significant damage to SCVWD's pipeline. This could cause flooding damage and result in water supply shortages to Cupertino and other surrounding communities. Therefore, SJWC pipelines crossing SCVWD transmission mains are considered critical to system operations.

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PIPELINE CONSEQUENCE OF FAILURE EVA LUA TJON METHODOLOGY Critical pathway pipes are defined as pipelines without redundancy that keep major facilities such as tanks and pumps in operation. These pipelines typically include tank inlet/outlet pipes as well as transmission mains located upstream and downstream of pump stations.

3.1.5 Impact Categories Summary
Table 2 summarizes the hydraulic effects and practical impacts which were considered in this study that correspond to the four impact categories.

Table 2. Impacts Categories Impact Summary
!mpact
Category
Buslnus
System
Operations
Impact Cause
Low Pressures
Flooding
Out of Service
Transmission
Main Damage
Critical Pathway
Pipeline Outage
Pipeline Conseq1.1ence of Failure Study
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Impacts
• Public exposure to potential water quality hazards due to contamination infiltration
• Public more prone to injuries due to hazardous
conditions
• Disruption to critical facility operations
---~-=======~
• Disruption to critical facility operations
• High traffic volume roads/highways and railroads
disrupted
• Customer access to business prevented
• Business operations disrupted
• Business operations disrupted
• Water supply shortage
• Inability to operate important water system facilities

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3.2 Impact Category Measurement Parameters and Tools
Quantifiable parameters were established to measure the amount of impact every individual pipeline failure event has on each impact category. Table 3 provides all of the parameters used for this study, as well as the primary tools used to obtain these measurements for each parameter.

Table 3. Q,uantjfiable Parameters Used to Measure Impact Cat•gories Parameter
Number of users (by type) that experience less than 20 psi durin~,?!Pe ~rea~ s~ e 1 _ _ _
Number of users (by type} that expert
to O psi during pipe break stage 1
Quantity of water lost in gallons per minute
Number of valves (by type and size) needing to be closed to isolate pipe segment for repair
- - --- ----- ----------- Number of users (by type) hydraulically isolated after valves are closed for p;pe segment repair 1
::::-"" --- ._. Quantity of water inhibited due to hydraulic isolation when valves are closed for pipe segment repair _.,......__ _ ., . --- ~- -- -- - -- __... ---- • - - - Number of non-isolated users (by type) that experience less than 20 psi during isolation stage 1
:.::::::::.=-.... ~ - - ;: •
Number of non-isolated users (by type} that experience less than or equal to O psi dur;ng isolation stage 1
-- - =~·~,~~~ -:,;"""""---
Number of properties (by type) within flooding region 1 Road types within flooding regions 1
Population density within flooding region
Pipes that cross SCVWO transmission mains
Critical pathway pipelines essential for water system
operations
Notes:

Impact Cause
Low Pressure
Low Pressure
Flooding
Out of Service
Out of Service
Out of Service
Low Pressure
Primary Tool
Hydraulic Model
Hydraulic Model
Hydraulic Modef
GIS
(1) Certain user types, facility/property types, and roads types are more critical than others. Therefore, all users that would experience low press,ures and all properties or roads that would be flooded due to pipelin~ failure were accounted for according to their type. See Section 3.3 Pipeline Consequence of Failure Scoring l l Methodology for detail on how these critical users and facilities contributed to the overall consequence of failure score for each pipe.

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Ccmpa":, PIPELINE CONSEQUENCE OF FAILURE EVALUATION METHODOLOGY As indicated in Table 3, all parameters required in this study for evaluating the consequence of failure of each pipeline could be obtained through the use of the hydraulic model and Geographic Information System (GIS) mapping system. Synergi WaterTM was the tool used to measure parameters related to services experiencing low pressures following pipe breaks and outages due to isolation, while ArcGIS® was the tool used to measure parameters related to geographic location such as flooding or proximity to other features. The following subsections explain in detail how these two software tools were used to obtain measurable parameters.

3.2.1 Hydraulic Model
In order to obtain results required for the consequence of failure evaluation, SJWC created an all pipes and valves hydraulic model based on GIS data. Pipe segments are assigned a unique ID in GIS and defined as a continuously drawn pipe with the same diameter and work order ID.

A pipe segment is only broken by GIS at water main tees, changes in diameter, or when the work order ID changes. Pipe segments are not broken in GIS at valves, hydrants, elbows, or service taps.

After importing all facilities into the hydraulic model from GIS, 1-ft resolution elevation contours were obtained from Santa Clara County and assigned to each node. Annual service demand data from SJWC's Billing Department was then geospatially plotted and assigned to the nearest node of the appropriate pipeline. Creating this hydraulic model allowed SJWC to simulate the effect caused by catastrophically breaking and then isolating each pipe segment.

3.2.2 Geographic Information System (GIS)
ArcGIS® software can perform various spatial analyses and yield useful information tied to the geographic location of a specific feature. In this study, ArcGIS® was used to tie locations and attributes of each failed pipe to other external spatial data such as parcels, transportation corridors, SCW>/D facilities, and population density.

Floodjng Buffers
Following a catastrophic main break, water may inundate the surrounding area, possibly impacting critical facilities, roads, transportation corridors, businesses, and residential properties. SJWC's Distribution Systems Department identified 50-ft as the inundation limit for most pipe breaks. Therefore, 50-ft buffers surrounding each pipe were developed as potential flooding areas. \Nhen flooding intensity (see Section 3.3.1 Health & Safety Impact Category Scoring for an explanation of flooding intensity) was simulated to be greater than twice the average flooding intensity, a 100-ft flooding buffer surrounding the pipe was used as the potential flooding area. Map 2 shows the flooding buffers created around each water main.

GlS Spatial Data
Spatial data related to parcels, railroads, roads and population density was needed for this study and obtained via external sources as summarized in Table 4 and illustrated in Maps 3, 4 Pipeline Consequence of Failure Study
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Table 4. Type and Source of External Spatial Data
Spatial Feature
Name
Using GIS to Measure Parameters
Type
Polygon
Line
Line
Polygon
Line
Source
City of Cupertino
United States Census Bureau
Bay Area Census I Metropolitan
Transportation Commission
SCVWD
Spatial intersection analyses were performed using the flooding buffer surrounding each pipe segment and the feature of interest (e.g. parcels, roads, population density polygons, etc.) in order to obtain a quantifiable value that would ultimately be used to determine the consequence of failure score. Figure 5 provides samples of the data obtained from ArcGIS® by using a 50-ft flooding buffer as an example. GIS was also used to identify water mains considered critical to SJWC's operations, as illustrated in Map 6.

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MAP 2. CONSEQUENCE OF FAILURE ANALYSIS - Flooding Buffers W+E
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1 MAP 4. CONSEQUENCE OF FAILURE ANALYSIS - Population Density Road Type
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•:: ::_ ~ Cupertino Lease Area Limit
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Industrial busiriess parcels shown in this map that reside outside of the Cupertino Lease Area were included as part or the Consequence of Failure Analysis because they are served by the Cupertino Lease Area water system. 198
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FIGURE 5. Sample of GIS Results Obtained Using Flooding Buffers and Various Spatial Features Flooding Buffer Interaction with various Features
NOTES: For a definition of Pipe Segment see Section 3.2.1 Hydraulic Model Description of Measurable Parameters Obtained
50-ft Buffar/Populatlon Da111jty Intersect
A spatial intersect between the 50-ft buffer of pipe 05318281 and the population density layer is observed. Because five population density blocks intersect the highlighted 50-ft buffer, five polygons are created as a • result of the spatial intersects. Each of these polygons contains the attributes of pipe 0531628 as well as the attributes of each specific density block as illustrated in the summary table below. For the population density spatial feature the measurable value selected for pipe 0531626 is the weighted arithmetic mean of the population density by area.

PlpelO D<mltylloctlDCoN ,.,...,..o-lty Toc.10..sily OIHl ... r-.dltt') Jllllll~ril --111'1 osnm Sl&l50770ll0l2 7328.33537 ti715 9558.lU07,l o:mm fi085507l012034 14452.2091 3405 1028.015525
om.us 608550770l203S 2h12 ms.94312
D53U<& ' 6QISS077012()~6 805 lS!ll.0'!1481
osima "'85.507ltll2<ll7 4592.lID 102 40HA44<Wi
so.ft Buffer/parcels lnttruct
A spatial intersect between the 50-ft buffer of pipe 0531828 and the Santa Clara County parcels layer is observed. Because nine parcels intersect the highlighted 50-11 buffer, nine polygons are created as a result of the spatial intersects. Each of these polygons contains the attributes of pipe D531826 as well as the attributes of each specific parcel as illustrated in the summary table below. For the parcels spatial feature the measurable value selected for pipe 0531628 is the number and type of parcels affected by the flooding buffer.

Pipe IO Section .ArH of lntenecte:d APfl .. ,..i tt'
D53182ll 357-16--059 452.61 0490
0531323 3.57·16-1,4j 1599-79 8455
D.531828 3.57-17-099 6titi.01 5054
0531828 357-17-100 l36.n 4850
0531B2' 3S1-17•101 Ul-44 5026
Q53L82B 357-17-lll SS.27 .... 0531828 357-18-002 373.70 13471 0531Sl8 357-18-039 3064-27 7Dl3
n531828 357-1&-040 21S48.SO 6313
SO-ft Buffer/Road Type Internet
A spatial intersect between the 50-ft buffer of pipe D531698 and the Cupertino Roads layer is observed. Four different road types are found w~hin the highlighted 50-ft buffer. As a result, the intersect tool reports on each of these 4 road types and ties their attributes with thOse of pipe D531698 as mustrated in the summary table below. For the Cupertino Roads spatial feature the measurable value selected for pipe 0531826 is the Annual Average Daily Traffic (AAOT)2 of the highest traveled road affected by the pipe.

PlpolD -= RoadN•me Tolall-""'lnt@ne<tedfftl
0531698 Artert.ls STEVENS CREEK Bl VO 23,91
0531698 Local R.oads PENINSUlAAVE '9.SS
D531698 Malor Collectors STEVEl>IS CREEK BLVD 76.13
0531698 Mlr\Or COilectors BUBB RO 100S.6S
50-ft Buffer/Railroad Intersect
A spatial intersect between the 50-ft buffer of pipe 0532145 and the Cupertino Railroads layer is observed. Four different road types are found within the highlighted 50-ft buffer. As it is illustrated, a segment of the Union Pacific Railroad is contained within the 50-ft flooding buffer for pipe 0532145. The final measurable value selected for pipe D532145 would be a 1 indicating pipe 0532145 does affect the railroad.
(2) Annual Average Daily Traffic is explained in Section 3.3.2 Transportation Impact Category Scoring 199
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MAP &J CONSEQUENCE OF FAILURE ANALYSIS - Critical System Operations Mains and Pipes Intersecting SCVWD Main ·••11:::,ose ••• Company W+E
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PIPELINE CONSEQUENCE OF FAILURE EVALUATION METHODOLOGY

3.3 Pipeline Consequence of Failure Scoring Methodology A two-step process was used to obtain consequence of failure scores for each pipeline. First, the parameters listed in Table 3 were used to calculate scores for each impact category for every pipeline. Then scores for each impact category were weighted and combined to yield the consequence of failure score for all pipes. Figure 6 illustrates the overall scoring process. The following subsections provide explanations of the scoring process for each impact category and for the overall consequence of failure score.

Consequence of Failure Scoring Process

CONSEQUENCE OF FAILURE SCORE
Figure 6. Overview af Consequence af Failure Scoring Process Pipeline Consequence of Failure Study
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PIPELINE CONSEQUENCE OF FAILURE EVALUATION METHODOLOGY

3.3.1 Health & Safety Impact Category Scoring
The Health & Safety impact category is the largest contributor to the overall consequence of failure score, accounting for 50 percent of the total weight. The overall process and methodology for calculating the Health & Safety impact category score is presented in a flow chart in Figure 7. Following the flow chart is the discussion and rationale for the methodology. (
;,Health am!).,'
Safety
Impact
"" . Score
i ~
r I Healch &Safety Impact Score = 0.75 (Water Quality Score) + 0.25 (Flooding Score) ... t t .,
- I I
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1 ( Flooding) (Population) WQ Score = Service WQ Score WQ Score ~ 2x Node WQ Score Flooding Score = 1 t ·t x log D ·t n ens1 y ensi y •
Yes i i
Node Water Quality Scort = [ Flooding Intensity== (Di5·charge) x crime U~til) ] { Service WQ Score> 0? J No - Rate Isolation # of nodes SO psi
i
Service Water Quality Score =
(#of serotces bet~een) + 2 (#of servi~es)
O a.nd 20 psi ~ 0 psi ...

Figure 7. Health and Safety Category Scoring Process and Equations The Health & Safety impact category score can be separated into a water quality component and a flooding component, as these are the two major impact causes associated with the general health and safety of the public. There is also a third component, the "out of service" component which results from hydraulic isolation. However, this third component was only considered in special cases, particularly when critical facilities requiring constant water service were placed out of service. These special cases were handled separately and are further discussed throughout this subsection. The water quality component and flooding component contributed 75 percent and 25 percent, respectively, to the total weight of Health & Safety impact category score, as shown in Equation 3.1 . The methodologies used to obtain water quality and flooding scores are described in the following subsections.

Health &Safety == 0.?5 (Water Quality Score)+ 0.25 (Flooding Score) Impact Score Pipeline Consequence of Failure Study
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(3.1 )

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PIPELINE CONSEQUENCE OF FAILURE EVALUATION METHODOLOGY
Water Quality Score
SeNice Water Quality Score
For each pipe, the water quality score was determined based on the number of services that would experience between O psi and 20 psi, and the number of services that would experience less than or equal to O psi during the break or isolation stage of a pipeline failure event. Each service experiencing between O psi and 20 psi contributed one point to the water quality score, and each experiencing less than or equal to O psi contributed two points to the service water quality score, as shown in Equation 3.2 below.

Service Water Quality Score = (#of services between) + 2 (#of services) (3_2) 0 psi and 20 psi :;:; 0 psi Hydraulically isolated services that did not drop below 20 psi after the pipe break (i.e. before isolation) do not contribute to the water quality score. The rationale behind this was that hydraulic isolation does not negatively affect water quality because, although isolated services drop to O psi, isolation is a controlled event. Before an isolated pipeline is put back into service, the necessary protocols (e.g. flushing) will be taken to ensure only high quality water is provided to users. However, if a service elsewhere in the system that is not hydraulically isolated drops below 20 psi or O psi as a result of the isolation of the failed pipe, it will contribute to the water quality score.

If no services dropped below 20 psi in both the break and isolation stages, the service water quality score was equal to 0. In these cases the node water quality score was considered.

Node Water Quality Score
In some cases, areas of the water system without services may experience low pressures due to a pipeline failure. Should there be contamination infiltration into these parts of the system, it is still possible for contaminated water to be conveyed toward users' services. In order to account for these potential cases, the number of hydraulic model nodes that would experience less than or equal to O psi were considered for the node water quality score, as shown in Equation 3.3.

Only nodes with pressures at or below atmospheric pressure were included as part of the node water quality score because of the unlikelihood of water quality at a service being negatively affected due to pressures below 20 psi but above atmospheric pressure in a remote area. Any minor contamination infiltration would likely be disinfected by chlorine residual before the water reaches any service.

Node Water Quality Scor e = # of nodes :<:; 0 psi
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(3.3)

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PIPELINE CONSEQUENCE OF FAILURE EVALUATION METHODOLOGY
Water Quality Score
In cases where the service water quality score was greater than 0, the service water quality score was used as the water quality score. When the service water quality score was equal to 0 (i.e. no services were affected by low pressures), one-half of the node water quality score was used. Only a half of the node water quality score was used because, although contaminated water may be introduced into the system at atmospheric or sub-atmospheric conditions, the chlorine residual may disinfect the contaminated water in the time it would take to reach users services. Equation 3.4 shows the process for determining the water quality score. After a water quality score was calculated for all pipes, the scores were scaled such that the maximum score was equivalent to a value of 1.
{ Service WQ Score , Service WQ Score > 0
Water Quality Score == ~ x (Node WQ Score), Service WQ Score= 0 (3.4) Critical Facilities
Pipes affecting critical facilities by lowering their service pressures below 20 psi due to a pipe break had their scores elevated to the maximum water quality score of 1. In addition, pipes that took critical facilities out of service during the isolation stage were also given the maximum water quality score of 1. Although isolation is not typically a water quality concern, because it is a serious overall health concern for critical facilities requiring constant water service, it was considered a reasonable cause for score inflation.

Flooding Score
For each pipe, the flooding score was determined based on estimated flooding intensity and population density of the estimated flooded area.

Estimated Flooding Intensity
Flooding intensity resulting from a pipe break is difficult to approximate as it is dependent on numerous factors. However, it can be roughly approximated as a function of the discharge rate of the pipe break and the time it takes to isolate the failed pipe, as shown in Equation 3.5.

Flooding Intensity :::: (Discharge Rate) x (Time Until Isolation) (3.5) The discharge rate for each pipe break was attained from the hydraulic model (see Section ' 3.2.1 Hydraulic Mode{), and the time required to respond to and isolate each failed pipe was approximated based on the pipeline emergency response procedures and practices of SJWC's Field Service and Distribution Systems Departments.

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Ccnlpony PIPELINE CONSEQUENCE OF fAILURE EVALUATION METHODOLOGY Typically, when SJWC is notified of a water leak, it may take a Field Service worker up to 45 minutes to respond and arrive at the site of the break for investigation. If the Field Service worker is able to close the valves by hand (i.e. when valves are not larger than 8-inch gate valves or 12-inch butterfly valves), then it will usually take up to 10 minutes to close each valve.

However, if valves cannot be closed by hand (e.g. larger valves) the Field Service worker will contact the Distribution Systems Department to have a truck dispatched. It may take up to 45 minutes for the truck to arrive onsite, and it may take up to 15 minutes to close each of the remaining valves. The flow chart used for deciding the approximate required time for isolation is shown in Figure 8.
,------ -7
.------'
( SJWC Notified of
i
Add 45 min for Fleld
\ M~ln Break ..,} ! Servic:e Response 1
'
Notes:
1 Add 45 min for
I Distribution System 1
truck dispatch and
arrival
L---·-- - ---
Aou 10 min per
valve
Add 15 min per
! ,,....--·-
~ Failed Pipe Isolated\
Gate Valve >8" ,...1 ___ __.
and Butterfly
Valve >12" 2
(1) Field Service response time of 45 min assumes SJWC is notified outside of working hours. (2) This pathway assumes that all gate valves ~8" and butterfly valves ~12" in diameter are closed by Field Service by the time the Distribution System truck finishes its work. However, if takes longer for Field Service to close the smaller valves than it does for the Distribution System truck to be dispatched and close the larger valves, then the time it takes to close the smaller valves should be used.

Figure 8. Estimated Time Required for Isolation Flow Chart Population Density
Flooding occurrences in densely populated areas will have a greater impact on general public safety. The average population density associated with each pipe was estimated based on the intersection of the population polygons and the flooding buffer of each pipe. See Section 3.2.2 Geographic Information System (G/S) for more detail on how the population density for each pipe was estimated.

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.r.tll·sa•.,....

Wrtll
Comp•II)'
Flooding_ Score

PIPELINE CONSEQUENCE OF FAILURE EVALUATION METHODOLOGY
The flooding score for each pipe was calcula1ed by multiplying estimated flooding intensity by the logarithm of the estimated average population density in the vicinity of the pipe, as shown in Equation 3.6. The logarithm of the population density was used for a more even distribution.

After the flooding scores were calculated for each pipe, they were scaled such that the maximum flooding score was equivalent to a value of 1 .

Flooding Score = (Flooding Intensity) x log(Population Density) (3.6) Critical Facilities
Pipes affecting critical facilities due to flooding had their scores elevated to the maximum flooding score of 1.

3.3.2 Transportation Impact Category Scoring
The Transportation impact category is a large contributor to the overall consequence of failure score, accounting for 20 percent of the total weight. The score for this impact category is calculated solely based on flooding of public transportation corridors. The City of Cupertino categorizes their road types similarly to the United States Department of Transportation Federal Highway Administration's classifications. Table 5 tabulates the City of Cupertino road types along with their estimated Annual Average Daily Traffic (AADT). The AADT is defined as the total volume of vehicle traffic in a year divided by the number of days in a year, in units of vehicles. A map provided by the City of Cupertino with the MDT values for major roads is included in Appendix B.

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PJPEUNE CONSEQUENCE OF FAILURE EVALUATION METHODOLOGY
Table S. Transportation Corridor Annual Average Daily Traffic Transportation
Corridor
C!assitication
Notes:

Lower
N/A
3,300
80 Annual Average Daily Traffic
Upper Average
265,000 (Route 280) NIA 222,000 (Route 85)
35,800
15,700
14,580
700 400
Source
California Department of
Transportation 2009
Traffic Census 1
City of Cupertino
City of Cupertino
City of Cupertino
US Department of
Transportation Federal
Highway Administration2
(1) 2009 Traffic Census data was used because the AADT data from the City of Cupertino for arterials, major collectors, and minor collect.ors are primarily from 2009. This allows for a fair comparison between the two datasets and more representative relative values.
(2) The United States Department ofTransportation Federal Highway Administration provides general MDT ranges for various road classifications.

In order to determine the amount of impact each pipeline failure would have on public transportation, flooding areas for each pipeline were geospatially plotted and overlaid with roads and railroads (see Section 3,2.2 Geographic Information System (GIS) for more detail on flooding areas). Each pipe was given a score equivalent to the AADT value of the highest traveled road affected by the pipe. For example, a pipe affecting both an arterial and a major collector would receive a score of 35,800. One exception, however, was that only half of the AADT value for freeways was taken into account because of the unlikelihood of flooding both sides of freeways with center dividers. After the transportation corridor scores for all pipelines were assigned, scores were scaled so that the maximum score was equivalent to a value of 1.

Passenger Railroads
Pipes that affected passenger railroads due to flooding were given the maximum score of 1.

Although passenger railroads would likely not affect as many people as freeways, the impact would be great because trains are typically4 unable to take alternate routes to get to their destinations, and any railroad damage could r~quire extended repair times.

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.IIIIE'::, PIPELINE CONSEQUENCE OF FAILURE EVALUATION METHODOLOGY

3.3.3 System Operations Impact Category Scoring
The System Operations impact category accounts for 20 percent of the total consequence of failure scoring weight. This impact category score takes into account pipelines that are necessary for the continual operation of the water system. Pipes that cross SCVWD transmission mains were considered critical to the overall operations of the water system, as SJWC relies heavily on these transmission mains for water supply; these pipes were given a score of 1. In addition, critical pathway pipes without redundancy that are essential for the operation of pumps or tanks were also given a score of 1. Table 6 presents the scoring summary for the system operations impact category. See Section 3.1.5 System Operations Impact Category Scoring for more information on the System Operations impact category.

Tobie 6. System Operations Impact Scoring Summary
Parameter
Pipe· crosses SCWVD transmission main. and/or is a
criticaJ pathway pipe
Pipe does iiot cross SCVWD.trarisrriission main and
is not a~c:rltical pathway pipe
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System Operations
Impact Score
1 0

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PIPELINE CONSEQUENCE OF FAILURE EVALUATION METHODOLOGY

3.3.4 Business Impact Category Scoring
The Business impact category accounts for 10 percent of the total consequence of failure score weight. The overall process and methodology for calculating the Business impact category score is presented in a flow chart in Figure 9. Following the flow chart is the discussion and rationale for the methodology.

Consequence of
Failure Score
Transportation • Business
(
Heal.th and) ( System ) ,
= 0.5 Safety + 0.2 ( Impact ) + 0.2 Operations + 0.1 ( Impact ) Impact S Impact core Score Score Sco1·e .~ i
I
Bus11tess Impact = 0.6 (Out of Ser1Jice Score)+ 0.4 (Flo"ding Score) Category Sco1·e t a '- I
I
0-ut of Service Sc ore ;;;;; l ( Commercial and lndustrtal + i) og Inhibited Demand
Flooding Score #of Commercial and Industrial
= Properties A/ fected
Figure 9. Business Impact Cate,gory Scoring Process and Equations Out of Service Score
The Out of Service score, which is a measure of business impact due to a water service outage, was based on inhibited demand. The inhibited demand is equivalent to the average day demand (in gpm) of the services placed out of service, which can also be understood as the amount of water that would have been used by businesses had there been no service outage. The equation used for the Out of Service score is as follows, in Equation 3. 7:
0 t f S • S r _ l ( Commercial and Industrial + i) u o ervice co e - og 1 h'b' d D d n 1 tte eman . (3.7) A small number of commercial and industrial services with very high demands create a skewed and uneven demand distribution. Therefore, the logarithm of the demands was used for a more even distribution. A value of 1 was added to the demand before the logarithm was taken in order to avoid negative Out of Service scores and also to ensure that pipes which did not affect Pipellne Con8equence of Failure Study
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.au;:£: PJPEUNE CONSEQUENCE OF FAILURE EVALUATION METHODOLOGY commercial or industrial demands would receive a score of O (i.e. /og(0+l)=0). After the scores were obtained for each pipe, the results were scaled such that the maximum value was equal to a value of 1.

Flooding Score
The flooding score for the business impact category was equivalent to the number of commercial and industrial parcels affected. A parcel was considered affected if it was at least partially within the flooding region of the pipe. Equation 3.8 presents the equation used to calculate the flooding score.

Flooding Score #of Commercial and Industrial
Properties Affected (3.8)
After the flooding scores were obtained for each pipe, results were scaled such that tha maximum score was equivalent to a value of 1.

Business Impact Category Score
The overall Business impact category score is equivalent to the weighted sum of the Out of Service score and the flooding score for each pipe. The Out of Service score was given a 60% weight, and the flooding score was given a 40% weight. The flooding score was given a lower weight than the Out of Service score because of the higher degree of uncertainty with flooding.

In the event of a pipe break, there is uncertainty as to where the break will occur along the pipe, and there is also uncertainty as to the exact destination of the discharged water. Nevertheless, because a large flooding scenario would leave a relatively long-term negative impact on businesses, a weight no lower than 40% was considered appropriate. Equation 3.9 is the equation used to obtain the overall Business impact category score for each pipe.

Business Impact Category Score = 0.6 (Out of Service Score)+ 0.4 (Flooding Score) (3.9) After the scores for each pipe were calculated, they were scaled such that the maximum score was equivalent to a value of 1.

Freight Railroads
Railroads exclusively used for freight transport are critical to numerous industrles requiring the transport of goods. Because pipes that impact freight railroads due to flooding would have a large impact on many businesses, they were given the maximum business impact category score of 1.

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Camp•r1y PIPELINE CONSEQUENCE OF FAILURE EVALUATION RESULTS

4. Pipeline Consequence of Failure Evaluation Results

4.1 Results for Overall System
Every pipeline in the Cupertino Lease area was evaluated according to the methodology explained in Section 3.3 Pipeline Consequence of Failure Scoring Methodology and ranked based on the calculated consequence of failure scores. Pipes with identical final scores were prioritized according to their flooding intensities. Results were grouped into four criticality categories as shown in Table 7. Figure 1 O shows the breakdown of the four criticality categories by pipe count and by pipe segment length.

Table 7. Criticality Categories by Rank
Criticality
low
Criticality Results by Count
Medium
30"
Rank
1 - 106
107 - 212
213 -530
531 -1061
Rank by Percent
Top 10%
10 - 20%
20-50%
50-100%
Criticality Results by Length
Fisure 10. Percent Distribution of Criticality Results by Count and by Length A compiled summary of the impact category scores, final consequence of failure scores, and final rankings for all pipes in the Cupertino Lease Area is included in Appendix C. Final results for all pipes by rank are geospatially presented in Map 7.

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MAP 7J CONSEQUENCE OF FAILURE ANALYSIS - Results by Rank W+E
~ .. ,
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~-
~ ! . . .
/
,. ,,.
i
\ Cristo Rey Dr Rose~olr
~'
LEGEND
RANK
- 1 • 106 -> High Criticality (10%)
- 107 -:212-> Med-High Criticality (10%)
- 213 },530-> Medium Criticality (30%)
- 531- f 61 -> Low Criticality (50%)
RoadTylj"
- Free-.yays
=='! Arterials
- Major Collectors
- Minor Collectors
Com,t,ercial/lndustrial Business
lndusral Business
1111!11 Com'f.ercial Business .
~-· _ 1 Cupe/tino Lease Area L1mlt
NOTE:
~ '\
~-, ..
\ ~ ~
/"<- ~ -,1 \
--~,7"~ . ~'t-,, , f ; / \ -- -·
l ' ·I I ~ •
Set-vu Layet'Ctedlll USGS Tl"le Nation.J Map· Naho~ Bourldanas 01\lset., National Etevat.ioo oataNt. Se09faPhic Names 1nrccmation Syaem, HatiOMI 'H'idrwraPhy J o.&aset. N1bqnal L.aod Ca-er Database, National Structu,ea Data-; Ind National Tnsn~~on Oat~t; U-~- Cit~~ B~ • TIGERA.tne, ~~!~0.0.la : __ ~ .:t_ \ ·1
1·
···•~:;o•• •••• Company
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I T -lowering Paar or Station •
i1
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STEI/ENS CRUI( IILVO
'" ·r
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Industrial busin\lss parcels shown in this map that reside outside of the Cupertino Lease Area were included as part of the ConseQUence of Failure Analysis because they are served by the Cupertino Lease Area water svstem. 212
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PIPELINE CONSEQUENCE OF FAILURE EVALUATION RESULTS

4.2 Results for Pipes Affecting Critical Facilities, Key Features, and System Operations
The following results summarize the number of pipes affecting critical facilities, key features, and system operations due to water quality impact, flooding, or placing services, tanks. or pumps out of service. Results indicate that 9 pi~s affected a critical residential unit re~uiring constant water service for life supPQrt, 103 pipes affected schools, 8 pipes affected freeways, 22 pi es affectea freight railroads, and 39 pipes affected system operatiori1s. No hospitals, acute health care facilities, or passenger railroads were found within the Cupertino Lease Area. See Figure 11 for a visual breakdown of the number of pipes affecting these key features and operations.
120
100
..

C 80 :I
0 V 60 GI
CL
~ 40
20 0
Count of Pipes Affecting Critical Facilities, Key Features and System Operations
/
/ /
- ·· ,
/ ·-39-- - -/
/ B ,,-- -a,-~ L/~ ....,,,
Figure 11. Breakdown of Pipes Affecting Critical FaciUties, Key Features, and System Operations Pipeline Consequence of Failure Study
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.r.-Son~o ..

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CO(tll)a"y PIPELINE CONSEQUENCE OF FAILURE EVALUATION RESULTS Pipes affecting critical facilities, key features, and system operations predominantly fell within the high or medium-high criticality categories. Figure 12 shows the breakdown of criticality categories for pipes affecting critical facilities, key features, and system operations.

Dialysis/ Life Support Schools
10 /
9 / 100 ,, 85
::•
1: 75 :::,
0 ~ so a.
ii:
2 0 0
High Med-High Medium Low High Med-High Medium Low
Criticality Criticality
Freeways System Operations
4 ,.. _J
-- 40 / 31 ..----~ ..... /
... _,/ 3 § 30
0 u .,,.
2 g,20
ii:
10 0 0
High Med-High Medium Low High Med-High Medium Low
Criticality Criticality
Freight Railroads
. /
15 / 12
/ 10 6
5 /
0 High Med-High Medium Low
Criticality
Figure 12. Humber of Pipes by Criticality Affecting Critical Facilities, Key Features, and System Operations Pipeline Consequence of Failure Study
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RECOMMENDED IMPROVEMENTS AND ACTIONS

5. Recommended Improvements and Actions
The results and finding$ of this study are intended to provide a baseline to help with future efforts to identify and prioritize pipeline capital improvement projects. Definitive main replacement and rehabilitation projects are not included as part of tfiis study. SJWC requests that the Cit_y o Cupertino provide more pipe type and age of installatfon data before a comprehensive probability of failure analysis is conducted for the development of definitive pipeline improvement projects. However, the results of this study did bring to surface the need for a regulator installation, a valve installation, and easement documentation.

5.1 Regulator Installation for Mann Regulated Zone
Mann Regulated Zone is located within the northeast portion of the Cupertino Lease Area.

Although most pipes within Mann Regulated Zone do not affect any critical facilities, key features, or businesses, nearly all of them fell within Medium-High and Medium criticality categories. The cause of these results is that Mann Regt1lated :Zone was designed with only one regulator station as the le p1:.1 int the z.one. ::rher!:U.Qre, when there is high demand in the zone due to fire flows or a pipeline fai1.1,1re, nearly all services in the regulated zone drop to very low pressur~s. often to subatmoepheric pressures, regardless of which pipe fails.

Therefore, SJWC recommends an 8-inch pressure regulator be installed on the northern border of Cupertino Memorial Park, near the intersection of Christensen Drive and Fenway Court. This improvement will prevent many services from dropping to low pressures in the event of a pipeline failure and will also increase fire-flow capacity to help meet current fire department flow requirements. Figure 13 shows the location of the proposed B~inch regulator in relation to Mann Regulated Zone, and Figure 14 shows the regulator in relation to its immediate vicinity. This improvement is recommended for implementation in 2017 and is estimated to cost $117,600.

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c ..... pony RECOMMENDED IMPROVEMENTS AND ACTIONS
• Legend
I G Proposed Regulator
• E~isting Re~ulator
• E.xistmg Zone Valve
- Pipeline - Mann Regulated Zone
Pipeline
Mann Station
Prop~ed 8-,nch
regulator wiU allow
wate1 mto Mann
\ Regulated Zone lo
kee.p i:,res$Ure,
liigt,er ,n the <!vent of
a main break or fire
Cl: .... :i- ..:
-iai,~•
........ 0,
Figure 13. Recommended 8-inch Pressure Regulator and Mann Regulat~d Zone ngure 14. Recommended B-inch Pressure Regulator and Immediate Vidnity Pipeline Consequence of Failure Study
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5.2 Valve Installation

RECOMMENDED IMPROVEMENTS AND ACTIONS
A 2,200-ft long, 14-inch diameter pipe alignment on South Foothill Boulevard between Stevens Creek Boulevard and Alcalde Road requires 7 valves to be closed to achieve hydraulic isolation, 4 of which are greater than or equal to 12 inches in diameter. In the event of a catastrophic break anywhere along this alignment, it is estimated that approximately 2 million gallons could be discharged into the surrounding area. However, with the installation of a 14-inch valve at the intersection of South Foothill Boulevard and Stevens Creek Boulevard, only two valves greater than or equal to 12 inches in diameter will need to be closed, thereby decreasing the time required to hydraulically isolate the alignment and reducing the volume discharged by up to 400,000 gallons. iherefore, it is recommended that a 14-inch valve be installed as illustrated in Figure 15. This improvement is recommended for implementation in 2017 and is estimated to cost $21,900.

Figure 15. Recomm•nded 14-inch Valve Installation

5.3 Easement Documentation
It was found that a number pipelines within the Cupertino Lease Area cross through private property yards and streets. SJWC requests the, City of Cupertino provide documentation defining the limits of the easements, as they woµld be necessary for any potential pipeline improvements in these areas. Map 8 highlights the location of these pipelines and Table 8 lists APN's and addresses of parcels that intersect these pipelines.

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Table B. Easement Documentation RequeJt list
APN Address
326-12-049 10420 CRESTON OR
326-12-051 10440 CRESTON DR
326-12-052 10450 CRESTON DR
326-13-035 10407 VISTA KNOLL BLVD
326-15--076 10370ALPINE OR
326-15-076 10370ALPINE DR
326-15-076 10370 ALPINE DR
326-15-076 10370 ALPINE DR
326-1S-103 22364 SALEM AVE
326-15-130 22445 CUPERTINO RD
326-15-130 22445 CUPERTINO RO
326-16-045 10130 CRESCENT RD
326-16-047 10151 HILLCREST RD
326-16-050 10181 HILLCREST RD
326-16-052 10161 HILLCREST RD
326-16-053 10143 HILLCREST RO
326-16-055 10133 HILLCREST RD
326-16-061 10191 HILLCREST RD
326-16-080 10171 HILLCREST RD
326-17-013 10168 AMELIA CT
326-17--019 10201 AMELIA CT
326-17-020 10185 AMELIA CT
326-17-026 10171 AMELIA CT
326-17-0S3 10151 AMELIA CT
326-18-057 10019 OAKLEAF PL
326-27-037 10145 PARKWOOD DR
326-27-037 10145 PARKWOOD DR
326-27-037 10145 PARKWOOD DR
326-27--037 10145 PARKWOOD DR
326-27-037 10145 PARKWOOD DR
326-35-063 10451 PHAR LAP DR
326-35-068 SOUTHERN PACIFJCTRANS.
326-37-004 10391 RIVERCREST CT
326-37-047 CRESTON DR
326-39--060 SANTA CLARA VALLEY WATER
326-41-033 10S00 CASTINE AVE
326-41-095 21291 MILFORD DR
326-41--096 21301 MILFORD DR
326-41-097 21311 MILFORD DR
326-41-098 21321 MILFORD DR
326-41-099 21331 MILFORD OR
326-41-100 21341 MILFORD DR
326-41-101 21361 MILFORD DR
326-41-102 21371 MILFORD DR
326-41-103 21381 MILFORD DR
Pipeline Consequence of Failure Study
October 2015

RECOMMENDED IMPROVEMENTS AND ACTIONS
APN Address - 326-41-104 21391 MILFORD OR
326-41-105 21401 MILFORD DR
326-41-106 21421 MILFORD DR
326-41-107 21431 MILFORD DR I
326-41-108 21451 MIU:ORD DR
326-41-109 21461 MILFORD DR
326-41-114 OTY OF CUPERTINO -
326-47-019 10410 STOKES AVE ,
326-49-007 10650 STOKES AVE
326-49-018 21887 WILSON CT
326-49-034 STOKES AVE
326-55-023 10315 ANN ARBOR AVE
342-12-063 22615SALEM AVE
342-12-064 22625 SALEM AVE
342-12-064 22625 SALEM AVE
342-12-064 22625 SALEM AVE
342-12-090 22611 POPPY DR
342-29-057 10495 MERRIMAN RD
342-44-017 10500 SAN FELIPE RD
342-44-020 10530 SAN FELIPE RD =
342-45--007 22864 VOSS AVE
342-45-035 10396 AVENIDA LN ' 342-48-006 22654 OAKCREST CT 342-48--018 10439 HENEY CREEK Pl a
342-48-030 10350 HENEY CREEK PL
342-48-030 10350 HENEY CREEK PL
342-57--009 10799 JUNIPER CT
342-57-030 10829 SYCAMORE CT
342-58-003 22238 HAMMOND WAY
356-01-021 10980 MIRAMONTE RD
356--05--005 MCCLELLAN RD
356-06-030 2 2044 BAXLEY CT
357-01--027 22288 BELI.EVUE AVE
357--01-033 10168 CASS PL
357--04-029 10494 MIRA VISTA RD
357-06-016 10489 SCENIC BLVD
357-09-053 22120 STEVENS CREEK BLVD
357-10-006 21975 SAN FERNANDO AVE
357-10-008 21979 SAN FERNANDO AVE
357-12-0S5 10485 SAN FERNANDO AVE
' 357-20-019 10340 BUBB RD
357-22-006 10106 IMPERIAL AVE
357-22-007 101041 MPERIAL AVE
3S7-22-035 10118 IMPERIAL AVE

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MAP 8. CONSEQUENCE OF FAILURE ANALYSIS - Water Mains Crossing Private Properties W+E
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0 1,500
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6,000
,._~~ .... ~
! Feet S9'Vlce La~ Credrta· USGS Th~ Natrona! Map· National Boondarles Oatastl. National Elevatlor, Ootlaet, Oeogr..-C Mamet information $y1tem, Nabooal Hydrogqphy Dataset.· Nltlonll Land CoYer Database, NatiOnal StrucbJNs Dataset, and National Trantpo,tabon Dataset. U.S Cen1u1 Buota»- TIGER.One, HEftf Road Datil ,:-
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Water
Company
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-·SanJo Water ..
•••••• Comp••Y
Appendices
Pipeline Consequence of Fai1ure Study
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Pipeline Consequence of Failure Study
October 2015

APPENDIX A
City of Cupertino Land Use Map
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J+= -~---
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p
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!~--
=It ':,: ,--. -
,..;--r.• __ <.:.....;.\-; ' <';_... ' (( --
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I.Ills." Watar Jou
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P1pe/,ne Consequence of Failure Study
October 2015

APPENDIX B
City of Cupertino Annual Average Daily Traffic
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2,030

13.2003)
\
\
\ 7,940 ''-----~-
., . i
~ ~~--d ~ ("- ~ ,0 ~
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(!.i .2009)
~ .- MCCLELLAN RD.
(3.200,)
;I ~I&! (\a"' N ~
Q ~00 'I 200 ' 2400 ' 4800'
Graphic Scale

7.3.50 ---- ---@;§J-- Q -- 8,070 0,::
-~i c,:,
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Ill
~

RATNBOWDR
~
~
~,
HOMESTEAD RD. ~ I , 0 """ 1 ,,,.,, ,o ,..o ~ I o.,oo --~----i---~-1--~--j--~;'·""" --- 107-40 -~-- 1 l,b30 ~ 10,nr;2 • 10,.,20 _ 6.t50 1-4,Z0:>9) '2,20071 ~ ( .. _2009) 8 8 ~!'.I {1.2013) ~ i ~8 < ; ~ !~
i ~ ~; ~ __ fRJJ_ NERIDGE A.VE
j I l'lla-11:()8 ' ~-~-;:: 'J
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3,520
(-1.2009)
lQ
2~
.,.,
"'ii
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STEVENS CREEK
1S300
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~ I ,.,ao ~ ..1: f 3,bOO ~OUliSAVE
<'l,
ZC'J.,. ~: .. ,-,·N~ ·. <
;~
~!'i
BLVD. i?.,300 1-t,90G
--~- lb,93!;1 --~--- (2.20CIT)
~
i
Iii
~ ;:;i
~l~I~ !
13,730
13 2000,
·~ Q
~ ;S BOLLINGER RD. 9,990
~
10,5&0
(5.2000
CITY ~ ~~;_;RTINO ¼.
2009 "o = Freeway & Expressways
•••• = Arterials - = Major Collector = Minor Collector
CJ = Average Daily Traffic (ADT)
(typically a Wedne:iday)
(0.0000) = DATE ===-.":u
Mll:li:nowtM'lffi
21,190
11,200
, •. 2000)
...,..,.,....WOol.19 .. lf'WI
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CC 07-16-2024
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Company

APPENDIXC
Pipeline Consequence of Failure Scores and Rankings Table Pipeline Consequence of Faifure Study
October 2015
225
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Pipeline Consequence of Failure Scores and Rankings Table Neta: Pipit, with idelllicaf C:onsaque-nc• of F;t.ilure-Score!i were prioritb:vd accordir111n t~e ir floadina Wltan.sit~s. tr,.
-..... , .. . .. ...
..
- ' .
·-
Floodl~ lmPKt Ot•oerv Q>/Kequence '
Diameter L,qth •rrtensitv Health• System of F1ilur1
.. Pipe ID Uni (ftl !rail Safety TArupcltatlon l115'rlen 011 mlors Jmpactkore 0531520 12 107 1,168,042 0.8756

0.1414

1.0000 l.0000

0.7661 1
0531685 12 637 803,565 0.8134 1.0000 0.0956 00000 0.6162 2 0532529 12 181 779,5&6 0.8283 0.3225 1.0000 0.0000 0.5787 3 D531717 12 120 792,816 1.0000 0.3225 0.0000 0.0000

0.5645 4
D531672 10 111 649,809 1.0000

0.3125 0.0000 0.0000 0.5645 ~
D531689 10 31 1,230,701 0.8719 0.1414 1.0000 0.0000 0.5642 6 I I D533109 12 52 1,985,310 09572

0.1414 0.3780 0.0000 0.5447 7
D530938 14 667 1,847,805 0.9350 0.1414 0.2817 0.0000 0.5240 e D5427S1 14 77 2,038,245 0.9263 0.1414 0.2817 0.0000 0.5196 9 D530939 12 35 ' 1,969,425 0.9399 0.1414 0.1878 0.0000 0.5170 10 0S31889 10 8 615,731 1.0000 0.0802 0.0000 0.0000

0.5160 11
0531890 6 36 605,441 1.0000 0.0802

0.0000 , 0.D000 0.5160 12
' 0531896 6 53 494,360 1.0000 0.0802 0.0-000 0.0000 0.5160 13 0531895 6 127 456,025 1.0000 0.0802 0.0000 0.0000 05160 11 D531892 6 16 417,053

1.0000 0.0802 0.0000 0.0000 0,5160 1S
0S31916 6 135 414,540 1.0000 0,0802 0.0000 0.0000 0.5160 16 D531897 8 68C 389,632

1.0000 0.0802 0.0000 0.0000 0.5160 17
0531898 6 411 363,936 ' l.D000 0.0802 0.00D0 0.0000 05160 18 D531894 6 895 291,278 1.0000

0.0802 0.0000 0.0000

0.5160 19
D540881 16 ' 161 1,577,040 1.0000 0.0036 0.0000 0.0000 O.SOD7 20 0540878 16 264 1,5TI,204 1.0000 0.0036 0.0000 0.0000 0.5007 21 ) 05.31369 15 7118 1,524,780 1.0000 0.0036 0.0000 0.0000 0.5007 22 D540879 6 28 1,000,812 1.0000 0.0036 00000 0.0000 05007 23 ) D531368 6 242 598,776 1.0000 0.0036 0.0000 0.0000 0.5007 24 0531563 8 850 353,269 1.0000

0.0036 0.0000 0.0000 0.5007 25
) 0531687 12 10 915,474 0.8311 03225 0.0956 0.0000 0.4896 26 D532531 12 211 743,266
0,B204 0.3225 0.0956 0.0000 OA842 27
) D532060 12 97 1,374,908 0.8843 0.1414 0.0939 0,0000 0.4798 : 28 0532530 8 24 711,l~ 08206'
0,3225 0.0482

0.0000 04796 29
j 0532S27 12 8 776,246 0.8280 0,3225 0.0000 0.0000 0.478S 30 D5316&6 6 39 613,947 0.8044 0.3225 0.1071 0.0000 0.4774 31 D532528 8 31 721,667 0.8222 0.3225 0.0047 0.0000 0.4761 32 0532070 12 233 1,420,860 08941 0.1414 0,0000 0.0000 0,4.753 33 0542774 12 24 768,893 0.8198 0.322S 0.0000 0.0000 0.4744 34 D535814 12 1 326 767,151 0.8191 0.3225 0.0000 0.0000 0.4741 35 I D531682 12 479 765,504 0.!!182 0.322.S

0.0000 0.0000 04736 36 I 0532176 12 6 1,404,297 08900 0.1414 0.0000 0.0000 0.4733 37 I
) D532177 12 6 1,405,580 , 0.8899

0.1414 0.0000 0.0000 0.4732 38
I D532127 12 50 1,406
,619 0.8895 0.1414 0.0000

0.0000

0.4730 39
) D532062 20 20 1,377,513 0.8884 0.1414

0.0000 0.0000 0.4725 40
I
0542773 12 6 716,436 0.&150 0.3225 0.0000 0.0000 0.4720 41 D542775 12 15 711,996 08146

0.3225

0.0000 0.0000 0.4718 42
) 0542784 12 15 740,421

0.8144 0.3225 0.0000 0.0000 0.4717 43
I 0542772 12 24 6.94,72!l 0.8130 0.3225 0.0000 0.0000 0.4710 44 I
) 0542777 12 20 726,017 0.&130 0.3225 0.0000 . 0.0000 0.4710 45 0531680 g 6 692,244 08128 03225 0.0000

0.000Q 0.4709 46
0532058 12 10 1,221,264 0.8662 0.1414 0.0939 0.0000 0.470& 47 i 0531974 12 203 1,399,236

0.8841 0.1414 0.0000 0.0000 0.4704 48
0542776 12 24 714,137
0-8114 0.3?25 0.0000 0.0000 0.4702 49
D532128 12, 46 1,345,181 0.8831 0,1414 00000 0.0000 0.4698 so D531673 12 3S0 678,659 0.8093

0.3225 0.0000 0.0000 0.4692 51

0.542780 8 24 650,556

0.8090 0.3225 0.0000 0.0000 0.4690 52
0S31671 12 108 664,119 0.8088

0.322!\ 0.0000 0.0000

0.4689 53 .

I D532071 12 906 1,321,392 0.8804 0.1414 0.0000 D.0000 0.4685 54 ) 0531684 u 42 787,992

0.8074

0.3225 0.0000 0.0000 0.4682 55
0532059 11 91 1,154,220

0.B603 0.1414 0.0939 0,0000 o 467a 56
) 0532178 12 228 1,270,188
0,8775

0.1414

0.0000 0.0000 0.4671 57
D532512 6 24 865,641 0.8331 0.1414 0.2213 0.0000

0.4670 58
I ) 0532065 12 519 1,242,708

0.8761 0.1414 0.0000

0.0000 0.4664 59
D531683 12 38 816,684 0.8002 0.3225 0.0000 0.0000 0.4646 60 I DS.32513 12 120 958,398 0.8420 0.1A14 0.1275

0.0000

0.4620 61 l
I 0532522 12 199 953,639 0.8416
0,1414

0.1275 0.0000 04618 £2
I D532069 8 316 1.156,476 0,B667 0.1414

0.0000 0.0000 0.4616 63
I D532523 12 334 940,320

0.8407 0.1414 0-1275

0.0000 0.4614 64
I ) 0531668 8 396 479,796 D.7~28

0.3225 0.0000 0,0000

0.4609 65
D532020 8 171 1,150
,295 0,8632 0.1414 0.0000 0.0000 0.4599 66
) D532525 8 23 862,_410 o.8346

0.1414 0.1275 0.0000 0.4Sl.13 67
D540880 15 19 1,577,868 0.9117 0.0036

0.0000 0,0000 0.4566 68 ·---- I ) 0532066 8 776 1,041,984 o.ssa1 0.1414 0..0000 0.0000 0.4548 69 I I 0531388 16 590 1,558,992

0.9036 0.0036 0.0000 0.0000 0.4525 70
I ) 0532526 12 52 908,913 0.8402

0.1414 0.0336 00000 0.4518 71
226
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\
I
)
)
Note: PlpFlS with identlcaf Corue-qu@nce of F;im~r@ Sccrl!'s were pricrrt:fii,d a<:rordlne; to their floodfnR 1nteri5itie.s, , . , .. . , ...
- ~ Aoodlng lmpatt cateogry Consaqllanc:e '
Diameter Lengtll mtefl$ity Health& TranspomUan eusJness System of Failun! • 1'1pelt> tin) ltt) lnfl Satetv Operations l~pact Stor•
DS3251l 8 32 692,4!B 0.8155 0.1414 , 0.1275 0.0000 a.4493 72 0532191 1 48 185,976 0.7669 0.3225 0.0000 . 0.0000 0.4479 73 0532194 2 48 1S6,543 0.7661 0.3225 0.0000' 0.0000 0.4475 74 0532192 2 48 165,312 0.7650 0.3225 0.0000 0.0000 0.4470 • 75 0532190 2 4B 165,264 ' 0.7650 0.3225 0.0000 0.0000 0.4470 16 0531976 ' 8 14 892,441 0 .8364 0.1414 0.0000 0.0000 ' 0,4465 77 D532147 16 24 1,251,34S 0.2750 0.0000 1.0000 1.0000 0.4355 78 0543109 16 12 1,522,824 0.8570 0.0036 0.0000 0.0000 0.4292 79 D532187 10 6 973,032 08553 0.0036 0.0000 0.0000 0.4284 80 DS31833 10 315 952,104 0.8519 0.0036 0.0166 0.0000 0.4283 81 D54310B 16 24 1,518,012 0,8535 0.0036 0.0000 0.0000 0.4275 82 0532146 16 163 1,301,040 0.2509 . 0.0036 1.0000 1.0000 0.4262 S3 0531873 10 350 916,908 0.8489 0,0036 0.0000 I 0.0000 0.4252 84 D531888 10 311 632,121 0.815S O.OS02 0.0000 0.0000 0.4238 85 D531885 10 93 904,527 0.8450 0.0036 o._oooo 0.0000 0.4232 86 0531861 8 344 821,232 0.8373 0.0036 0.0000 0.0000 0.4194 87 0531879 10 838 &Sl,756 0.8364 0.0036 0.0000 00000 0Al89 , 88 .

D531881 10 322 839.592 0.8359 00036 0.0000 0.0000 0.4187 89 D531860 a 327 801,012 0.8346 0.0036 0.0000 0.0000 0.4180 90 D5_31882 10 10 880,908 _0._8304 0.0036 0.0000 0.0000 0.4159 91 0600356 17 1,094 99,677 0.0188 1.0000 0.0000 1.0000 0.4094 92 D542783 12 24 714,380 0.8120 0.0036 0.0000 0.0000 0.4067 93 0600337 17 1,4n 51,887 0.0078 1.0000 0.0000 1.0000 0.4039 94 0531676 12 329 641,ln 0.8055 0.0D36 0.0000 0.0000 0.4035 95 0531675 12 415 617,520 0.8054 0.0036, 0.0000 0.0000 0.4034 96 0600384 17 , 3,600 48,928 0.0065 1.0000 0.0000 1.0000 0.4033 97 , D531367 &I 126 424,6S6_ 0.7933 0,0036 0.0000 00000 IJ.3974 98 D531677 6 100 470,700 0.7908 0.0036 0.0000 0.0000 03961 99 0531366 6 283 385,332 0.7859 0.0036 0.0000 D.0000 0,3937 10D 0542781 B 4 351,613 0.7819 0.0000 0.0000 0.0000 0.39iO 101 0531382 14 12 1,455,?76 0.369.3 0.0036 0.0000 10000 0.3854 102 053,2195 2 48 186,476 0.7662 0.0036 0.0000 0.0000 0.3838 103 0532145 16 136 1,187,544 ' 0.1249 0.000D 1.0000 1.0000 0.3624 104 0533110 8 27 1,356,924 0.5826 0.1414 0.3780 0.0000 0.3574 105 0532144 16 74 1,651,415 0.6439 0.1414 O.OOOD_ 0.0000 0.3503 106 D532117 8 210 887,712 0.0912 0.0036 1.0000 1.0000 0.3463 107 0531620 8 1,98a 137,700 0.2514' 1.0000 0.1970 0.0000 0.3454 108 0534685 16 6 1,470,816 0.6234 0.1414 0.0000 0.0000 0.3400 109 0534684 16 24 1,470,288 0.6222 0.1414 - 0.00001 0.0000 0.3394 110:
0532152 14 27 1,639.670 0.6140 0.1414 0.0000 0.0000 0 . .3353 I 111 D531345 16 : 485 1,457,436 0.6671 0.0036 0.0000 00000 0.3342 112 T602760 10 38 1,256,703 . 0.2663 0.0036 00000 . 1.0000 0.3339 113 . 0531151 20 763 2,594,940 02635 0.0036 0.0000 1.0000 0.332.S 114 D531095 16 248 1,357,824 0.2567 . 0.0036 0.0000 1.0000 0.3291 115 0531637 8 132 , 428,820 0.0247 0.0802 1.0000 1.0000 0,3,284 1 116 D53217D 8 2.27 537,453 0.0547 0.0036 1.0000 1.0000 03280 117 D531387 14 . 199 1,536,312 0,6247 0.0036 0.0000 0.0000 0.3130 118 0530942 14 539 1,932.660 0.5213 0.1414 0.1878 0.0000 03077 119 D531346 8 270 1,056,108 0.6061 0.0036 0.0000 0.0000 0.3038 120 D600412 17 1,601 46,706 0.0055 ' 0.0D36 1.0000 1.0000 0.3035 121 0531102 14 38 1,599,075 0.5471 0.1414 0.0000 0.0000 0.3018 122. 0531105 16 194 1,438,.404 0.5231 0,1414 0.0000 0.0000 0.2898 123 0531103 14 353 1,614,168 0.5146 0 .1414 0.0000 0.0000 0.2856 124 D600351 17 1,007 100,790 0.0188 0.3225 ' 0.0000 1.0000 0.2739 125 0602851 17 30B 99,939 0.0175 0,3225 0.0000 1.0000 02732 126 0S30923 14 . 394 1,588,829 0.4733 0.1414 0.0000 0.0000 0.2650 • 127 0531100 16 253 1,580,904 0.4716 0.1414 0.0000 0.0000 0,2641 128 T603403 20 6 1,623,72.0 01178 0.0000 0.0000 1.0000 0.2589 129 T603399 20 120 1,884,924 0.1142 00000 0.0000. 1.0000 0.2571 130 rl603393 20 14 1,603,056 0.1130 0.0000 0.0000 1.0000 0.1565 131 . '1'603396 20 22 1,632,936 0.1085 0.0000 0.0000 10000 0.254~ . 132 0531385 14 2.23 1,483,092 0.5013 0.0036 O.OOQO 0.0000 0,2524 133 0S32168 8 396 982,980 05012 0.0036 0.0000 0.0000 0.2513 134 D531344 8 57 1,364,448 0.5002 0.0036 0.0000 0.0000 0.2508 135 0530905 14 384 1,586,777 0.4421 0.1414 0.0000 0.0000 0.2493 136 0S30936 14 419 1,620,068 04247 0.1414 0.0000 0.0000 0,2406 137 0531061 10 471 277,215 0 .0762 0.0036 0.0000 1.0000 0.2388 l38 OS3HS6 8 698 126,650 0.4646 0.0036 0.0000 0.0000 0.2330 139 D531108 8 499 92.2,_860 0.4077 0.1414 0.0000 0.0000 0.2321 140 D542702 10 522 321,000 0.0603 0.0036 0.0000 1.0000 0.2309 141 0531150 6 1,BZ 285,890 0.0527 0.0036 0.0000 1.0000 0.2271 142 D530945 12 543 1,454,604 0.3367 0.1414 0.2841 0.0000 0.2250 143 0531381 8 56 1,293,264 0.4478 0.0036 0.0000 00000 0.2246 144 227
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~ote: Pipe-, with Jderitlc;il COnscq11c-nc2 of F:1IC1Jre Scores wem prioritized acco<din:: to their floodlni rnteruttfos . . . ... •· . . . . . . , .. I Flj)odlng Impact C..teogty Consequence Diameter Lenath Intensity Hnlth& Trinsportatlon BusifltSS SVStem cfF•llun Pipe ID (In) (ft) !gall Safetv Operations lmpattScore
'
0531147 10 1,309 576,612 0.0477 0.0036 0.0000 1.0000 0.2246 145 0531044 10 330 1,323.459 0.3923 0.1414 0.0000 0.0000 0.2244 146 0544257 10 279 491,970· 00393 0.0036 0.0000 1.0000 0.2204 147 0531193 20 482 2,128,824 0.4372 00036 0.0000 0.0000 0.2193 148 0530903 8, 167 1,212,368 0.3808 0.1414 0.0000 0.0000 0.2187 149 0531771 8 342 127,160 0.4356 0.0036 0.0000 0.0000 0.2185 150 0534683 10 1,253 225,612 0.0354 0.0036 0.0000 1.0000 0.2184 151 D531128 16 22 1,396,572 0.4319 0.0036 0,0000 0.0000 0.2167 152 0531275 20 827 1,966,968 0.4314 0.0036 0.0000 0.0000 0.2164 153 D532987 16 27 1,397,760 0.4265 0.0036 0.0000 0.0000 0.2140 154 ) D531799 10 590 195,228 0.0253 1.0000 0.0000 0.0000 0.2127 155 D531119 16 161 1,392,396 0.4234 0.0036 0.0000 0.0000 0.2124 156 I 0531161 20 16 2,124,576 0.4228 0.0036 0.0000 0.0000 0.2121 1S7 0532986 16 233 1,391,400 0.4221 0.0036 0.0000 0.0000 0.2118 158 ' 0602B70 12 12 109,400 0.01.07 0.0000 0.0000 1.0000 0.2104 159 D53,1129 16 24 1,383,084 0.4159 0.0036 0.0000 0.0000 0.20B7 160 ' 0532999 16 4 1,382,892 0-4151 0.0036 , 0.0000 0.0000 0.2083 161 0531602 B 1,106 63,317 0.0144 1.0000 0.0000 0.0000 0.2072 162 0531378 12 12 1,091,507 0.4123 0.0036 0.0000 0.0000 0.2069 163 D531279 20 20 2,188,661 0.4089 0.0036 0.0000 0.0000 0.2052 164 I 0602868 12 11 87,896 0.0088 0.0000 0.0000 1.0000 0.2044 165 D531384 14 340 1,464,576 0.4068 0.0036 0.0000 0.0000 0.2041 166 0531596 8 2,SOC 65,468 0.0069 1.0000 0.0000 0.0000 , 0.2035 167 0531123 16 166 1,381,836 0.4052 0.0036 0.0000 0.0000 0.2033 168 D602872 12 13 46,123 0.0055 0.0000 0.0000 1.0000 0.2028 169 D532988 B 27 1,218,288 0.4027 0.0036 0.0000 0.0000 0.2021 170 0S36144 12 347 469,296 0.0014 0.0036 0.0000 1.0000 0.1014 171 D531785 8 271 110,010 0.4006 0.0036 0.0000 0.0000 0.2010 · 172 D531054 12 1,44-0 493,776 0.0014 0.0000 0.0000 1.0000 0.2007 173 D531052 12 471 559,020 0.0007 , 0.0000 0.0000 1.0000 0.2004 174 D535147 12 957 287,184 0.0004 0.0000 0.0000 1.0000 0.2002 175 T603407 6 8 418,0BS 0.0000 0.0000 0.0000 1.0000 0.2000 176 T603410 6 3 290,692 0.0000 0.0000 0.0000 1.0000 0.2000 177 - - ) 602321 12 76 220,320 0.0000 (l.0000 0.0000 1.0000 0.2000 178 T602326 12 34 192,780 0.0000 0.0000 0.0000 1.0000 0.2000 179 T603416 6 113 149,279 0.0000 0.0000 0.0000 1.0000 0.2000 lBO D531159 20 492 2,860,320 03979 0.0036 0,0000 0.0000 0.1997 181 D531787 B 630 107,100 o.~973 0.0036 0.0000 0.0000 0.1994 182 0531121 16 261 1,374,516 0.3953 0.0036 0.0000 0.0000 0.1984 ·183 D531972 12 411 1,280,316 0.3369 0.1414 0.0000 0.0000 0.1967 184 0531098 16 240 1,516,644 0.3910 0.0036 0.0000: 0.0000 0.1962 185 D531232 14 453 1,862,760 0.3548 0.0802 0.0000 0.0000 0,1934 186 I 0531172 10 17 1,811,070 0.3514 0.0802 0.0000 0.0000 0.1918 187 I ) 053215!! 10 34 1,795,470 0.3490 0.0802 0.0000 0.0000 0.1905 188 I 0531593 8 8S3 59,531 0.2518 0.3225 0.0000 0.0000 0.1904 189 I D531126 16 52 1,364,436 0.3790 0.0036 0.0000 0.0000 0.1902 190 I D531127 16 24 1,364,700 0.378S 0.0036 0.0000 0.0000 0.1901 191 I T602842 8 31 1,046,357 0.37S1 0.0036 0.0000 0.0000 0.1883 192 I 0531278 10 183 1,863,257 0.3747 0.0036 0.0000 D.0000 0-1881 193 T60284S g 11 1,135,560 0.3694 0.0036 0.0000 0.0000 0.1854 194 0531166 10 389 1,549,110 0.331S 0.0802 0.0000 0.0000 ' 0.18.18 195 ' 0532160 14 32 1,791,840 0.3312 0.0802 0.0000 0.0000 0.1816 196 0530940 6 36 1,085,205 0.2570 0.1414 0.1885 0,0000 0.1756 197 D532159 10 12 1,762,560 0.31!!9 0.0802 0.0000 0.0000 0.1755 198 D530944 12 233 1,338,084 0.2920 0.1414 0.0025 0.0000 0.1745 199 0531153 20 311 2,832,390 0.3467 0.0036 0.0000 0.0000 0.1741 200 0S32629 B 299 1,081,464 0.3467 0.0036 0.0000 0,0000 0.1741 201 D531772 8 26!! 126,557 03467 0.0036 0.0000 0.0000 0.1741 202 D531769 s, 211 109.695 0.3456 0.0036 0.0000 0.0000 0.1735 203 i
602854 8 6 926,373 0.3457 0.0000 0.0000 D.0000 0.1729 104 D531770 6 383 101,070 0.3426 0,0036 0.0000 0-0000 0.1710 205 I 0531160 10 255 1,817,940 0.3421 0.0036 0.0000 0.0000 0.1718 206 l 0531973 8 273 940,236 0.2842 0.1414 00000 0.0000 0.1704 207 D540882 6 45 979,620 0.3268 0.0036 0.0000 0.0000 0.1641 208 D531230 14 347 1,778,790, 0.2959 0.0B02 0.0000 0.0000 0.1640 209 f602863 8 7 797,601 0.3255 0.0000 0.0000 0.0000 0.162/ 210 0531231 14 812 1,790,325 0.2902 0.0802 0.0000 0.0000 0.1611 211 D531099 8 350 1,044,077 0.3202 0.0036 0.0000 0.0000 01608 212 D532111 8 20 466,200 0.3181 0.0036 0.0000 0.0000 0.1598 213 1 "'53.1.-7~· 6 -¼,10-1 --99,8-10 --0,3151 ----0.0036 ---0.0000 f-0.0000 -O .. J..582 0531146 4 56 600,156 0.1160 0.0000 1.0000 0.0000 0.1580 215 0532022 10 lSS 657,552 0.1140 0.0036 LOOOO 0.0()00 0.1577 216 D531200 20 638 2,045,064 0.3107 0.0036 0.0000 0.0000 0.1561 217 I ) 228
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Note· PipP..s with rdentical Conse:iuence of Failure Score$ were priortti?~d accordln~ tc t~•ir floodingintf:n.sitlcs. • !ff ~ , .. .. ..,~ .... . . .

Flo:ltfrng Impact Ceteogry COnsequence
Diameter l•lljlth Intensity Haalth& Systam of Fiilunl ..

Plpe lD (In) 1ft) Inn Safelv Tl'ill15pottation Business Operations Impact Sccre 0531774 8 .'!19 122,655 03092 0,0036 0.0000 0.0000 0 .1553 218 D531610 B 688 384,180 0.2759 0.0802 0,0000 00000 0.1540 119 D531790 8 1,285 105,203 0.3054 0.0036 0.000□ 0.0000 0.1534 220 0531783 8 417 106..S3B 0.3043 0.0036 0.0000 0,0000 0.1529 221 D531760 8 164 175,824 0.3031 0.0036 0.0000 0.0000 0.1523 222 D531182 10 508 1,371,885 0.2711 0,0802 0.0000 0.0000 0.1516 223 D531630 8 46 618,8 □ 3 0.3012 0-0036 0.0000 0.0000 0.1513 224 D531612 8 795 457,842 0.2577 0.0802 0,0601 0,0000 0,1509 225 0532189 10 8 177,540 0.30D0 0.0036 0.0000 0.0000 0.1507 226 0531777 10,5 265 177,110 0,2993 0.0036 0.0000 0.0000 0.1504 227 D531886 10 2.28 677,492 0,1668 0.0802 0.0000 o.ooao 0,1494 228 D531179 10 405 176,520 0.2950 0.0036 0,0000 0.0000 0.1482 229 0531759 8 53 176,244 0.2.930 0.0036 0,0000 0,0000 0.1472 HO D53l780 10 162 174,216 0.2929 0.0036 0.0000 0.0000 0.1472 231 0531773 6 410 110,203 0.2897 0.0036 0.0000 0.0000 0.1456 232 0531778 s 386 170,904 0.2890 0.0036 0,0000 0.0000 D.1451 233 0531611 8 138 363,773 0.2.577 0.0802 0.0000 0.00D0 0.1449 234 0531154 10 45 2,278,005 0.2871 0,0036 0.0000 00000 0.1443 235 0531i67 8 262 107,175 0.28S6 00036 0.0000 0.0000 0.1435 236 D531584 6 1,817 83,818 0.2S18 Q,0802 0.0D00 0.0000 0.1419 237 0543089 10 6 164,483 0.2823 0.0036 0,0000 0,0000 0,1419 238 D531776 8 417 108,015 0.2810 D.0036 0.0000 O.D000 0.1412 139 0531768 6 250 101,588 0.2796 0.0036 0,0000 0.0000 0.1405 240 D531178 10 90 1,540,710 0.2461 0.0802 o.oooa 0,0000 01391 241 0531781 8 168 149,688 02763 0,0036 0.0000 0.0000 0.1389 242 05317!16 6 256 157,764 0.2772 0.0000 0,000 □ 0.0000 D.1386 243 0531792 10 81 149,520 0.2757 0,0036 0,0000 0,0000 0.1386 244 D531791 6 119 138,275 0,2750 0.0036 0.0000 0,0000 0,1382 245 D5317&2 8 563 105,878 0,2736 0.0036 0.0000 0.0000 0,1375 246 D531761 6 341 105,435 0.2736 00036 00000 0.0000 0.1375 247 0531766 8 270 105,983 0.2734 0.0036 0.0000 0,0000 0.1374 248 D531763 8 254 105,503 0,2732 0.0036 0.0000 0,0000 0.1373 249 D531106 6 611 519,420 0.2732 0.0036 0.0000 0.0000 013B 250 0531762 6 149 100,463 0.2693 00036 0.0000 0,0000 0,1354 251 0531793 10 561 143,000 0.2689 0,0036 0.0000 0.0000 0 .1352 2S2 D531765 6 240 99,615 0,2684 0.0036 0,0000 0.0000 0.1349 253 0531775 6 330 97,305 0.2680 0.0036 0.0000 0,0000 0.1347 254 0531764 6 233 98,805 0.2672 0.0036 o.oaoa 0.0000 0.1343 255 0532631 s 384 647,632 0.2668 0,0036 0.0000 0,0000 0,1341 256 D531110 6 563 594,240 0.2107 0.1414 0.0000 0.0000 0.1336 257 0531635 6 28 573,317 0.2633 0.0036 0,0000 0.0000 0.1324 258 D531698 8 971 H8,7Bl 0.0322 0.3225 0.5176 0,0000 0.1324 25!;1 0532166 6 573 205,811 0.2605 0,0036 0.0000 0,0000 0.1310 260 0532633 8 123 616,786 0.2598 0.0036 0.0000 0.0000 0.1306 261 D531969 12 271 1,434,186 0,1037 0.1414 0.0000 0.0000 0.1301 262 D531968 12 298 1,414,274 0.2009 0.1414 0.0000 0.0000 0.1287 263 0531638 8 395 430,826 0.0243 0.0802 1.0000 0.0000 0.1282 264 0531650 8 713 87,645 0.2549 0,0036 0.0000 0,0000 0.1282 2.65 DS31251 6 52 1,321,005 02220 0,0802 0.0000 0.0000 0,1270 266 D531945 6 615 385,378 0.2521 0,0036 0,0000 0.0000 0.126B 267 0531617 8 1,111 435,782 0,0114 0.0802 1.0000 0.0000 0.1268 268 0532167 2 48 167,136 0.2500 0.0036 0.0000 0.0000 0.1257 269 0531611 8 307 372,204 0-0178 0.0802. 1.0000 0.0000 0.1249 1.70 D530978 10 120 1,443,708 0 .2170 0.0802 0.0000 0.0000 0.1246 271 D531556 8 1,189 392,627 0.2476 0.0036 0.0000 D.0000 0,1245 272 D531623 8 441 213,248 0.0111 0.0802 1.0000 00000 0.1216 273 D531802 10 24 137,792 0.2432 0.0000 0.0000 0.0000 0.1216 274 D53100S 10 2,088 1,128,948 0.1671 0,1414 0,0939 a.ooao 0,1212 275 D531642 6 172 87,983 0.239S 0,0036 0.0000 0.0000 0,1205 276 053162.2 a 319 182,700 0.0084 0.0802 1,0000 0.0000 0,1202 277 0531051 s 1,690 124,066 0,0082 0.0802 1.0000 0.0000 0.1201 278 D542765 8 18 171,848 0.0071 0.0802 1.0000 0,0000 0.1197 279 0531616 i 8 25 170,513 0,0072 0.0802 1.0000 0.0000 I 0.1196 280 D532139 20 9 1,431,948 0.2060 0.0802 0.0000 0.0000 0.1190 281 D531002 10 53 1,437,012 0.2055 0,0802 00000 0.0000 0.1188 282 0532197 2 48 66,660 0.0028 0.0802 1.0000 0.0000 0.1174 283 0532052 10 346 940,080 0,1158 0.1414 0,3071 0,0000 0.1169 284 0531118 8 520 619,710 0.1736 0.1414 0.0000 0.0000 0.1151 285 D530985 10 201 1,386,396 0.2254 0.0036 0.0000 0,0000 0.1134 286 D530979 10 17 1,450,224 0.2222 0.0036 0.0000 0.0000 0,1118 28? D532923 8 34 405,594 0.2182 0,0036 0.0000 0.0000 0,1098 288 0532157 10 21 1,975,685 0.2180 0.0036 0.0000 0.0000 0.1097 289 0532921 8 59 403,431 0.2178 0.0036 0.0000 0,0000 0,1096 290 229
CC 07-16-2024
229 of 849
Note .. Plpos wl'tt. ldehlicaf Con~P.f{uenc.e of Failure, Scoras win~ p,1arrt1zed' acconu,,, to their fiaodlni in terultlf:s ... . . . .. . . , .... . .

Floodi .. Impact cateOltY COMaquenca
Diameter L~n,th lntllnsity Health& of Failtn . . Symlm
P,pelD (In) (ftl (pl) Safety TraPSpOrtatlan 8usl!Mss Uperatlons Impact Sea ... \ 0530947 a 498 703,956 0.1614 0,1414 0.0025 0.0000 0.1092 291 D531S44 8 790 374 84 0.Z152 0 .. 0036 0.0000 0.0000 0.10&3 292 l D530983 10 411 1,362,840 0.2144 0.0036 o.aooo 0.0000 0.1079 293 D532039 6 407 532,896 0.0601 0.1414 0.4949 0.0000 0.1079 294 D531992 12, 76 1,296,675 0,1587 0.1414 0,0000 0.0000 0.1076 295 D531003 10 26 1,402,728 0,1825 0.0801 0,0000 0.0000 0,1073 ' 296 I 1602763 10 6 · t,239,158 0.2103 0.0036 0,0000 0.0000 0.1059 297 D542763 8 47 206,278 0.0108 0.0000 1.0000 0.0000 0,1054 298 D532138 20 18 1,383,804 02081 0.0036 0.0000 0.0000 0.1048 , 299 D542764 8 24 171,210 0.0093 0,0000 1.0000 D.0 00 0.1047 300 ) D531377 8 60 953,967 0.2078 0.0036 0.0000 0,0000 0.1046 301 0531001 8 24 1,l87,432 0.1768 0,0802 0.0000 0.0000 0.1044 302 ) DS31163 10 240 1,510,353 0.2065 0.0036 0,0000 0,0000 0,1040 303 ,0532162 6 14 1,29&,700 0,2057 00036 0.0000 0.0000 0.1036 304 I 0531554 B 612 379,250 0.2055 0.0036 0.0000 _ 0,0000 0.1034 305 0531550 8- 279 395,934 0.2053 0,0036 0.0000 0.0000 0.1034 306 D531322 10 30 958,092 0,1730 0.0802 0.0000 0.0000 0.1025 307 D531311 10 508 743,568 0,1727 0.0802 0.0000 0.0000 0.1024 308 I 0531158 10 94 1,562,247 0,2029 0.0036 0.0000 0.0000 0.1022 309 0531094 6 230 533,112 0.2017 0.0036 0.0000 0.0000 0.1016 310 I D531697 g 414 553,680 00687 0.1414 0.3861 0.0000 0,1013 311 0531545 a 198 396,900 0,2003 0-.0036 0.0000 0.0000 0.1009 312 D542754 8 19 390,863 0.1997 0,0036 0.0000 0,0000 0.1006 313 0531164 10 403 1,354,523 0.1994 0.0036 0.0000 0,0000 0.1004 314 T602757 10 8 1,231,041 0 .1993 O.D036 0.0000 0.0000 , 0,1004 315 1602803 8 6 1,226,946 0.1989 0.0036 0.0000 0.0000 0.1002 316 T602771 10 6 , 1,220,898 0.1987 0.0036 0,0000 0,0000 0.1001 317 ) T602811 8 6 1,227,272 0,1986 0,0036 0,0000 0.0000 0.1000 318 D532188 8 15 379,271 , 0.1985 D.0036 0.0000 0.0000 0.1000 319 T6Ql775 10 6 1,212,498 0.1981 0.0036 0.0000 0,0000 0.0998 320 D533111 8 382 649,528 01017, 0.1414 0.2057 0.0000 0.0997 321 D531186 10 178 993,048 0.1662' 0.0802 0.0000 0.0000 0,0991 • 322 T602806 8 7 1,207,868 0.1968 O.D036 0,000D 0.0000 0.0991 323 D531608 8 696 422,310 0.0788 0.0036 0.5754 0.0000 OJY.!77 324 D531180 10 437 1,161,959 0.1629 00802 0.0000' 0.0000 0,0975 32S 1602817 B 6 1,200,024 0.1930 0.0036 0.0000 0.0000 0,0972 326 1602815 8 6 1,2.00,644 0,1928 0.0036' 0.0000 0.0000 0.0971 327 T602779 10 3 1,205,442 0.1927 0.0036 0.0000 0.0000 0.0971 328 ' D531187 B 455 897,696_ 0.1620 0.0802 0.0000 0,0000 0.0971 329 D531185 10 177 1,053,840 0.1619 0.0802 0.0000 0.0000 0.0970 330 D531229 8 629 673,980 0.1618 0.0802 0,0000 0.0000 0.0970 331 D531560 8 236 421,629 0.1911 0:0036 0.0000 00000 0.0963 332 D532040 6 347 623,088 0,0701 0,0035 0.5820 0,0000 00940 333 D531788 8 310 105,713 0,1838 0.0036 0.0000 0,0000 0.0926 334 0531587 8 768 111,636 0.1281 0.1414 0.0000 0.0000 0,0924 335 I I I D531825 10 9 969,792 0,1794 0.0036 0,0166 0.0000 0.0921 336 I D531555 8 271 335,S61 0.1820 0.0036 0.0000 0.0D00 0.0917 337 I
D531551 6 1,411 291,701 0.1810 0.0036 0.0000 0.0000 0,0912 338 0531827 - 10 101 965,700 0.1776 0,0036 0,0166 0.0000 0.0912 339 D531575 8 257 533,682 0.1482 0.0801 0.0000 00000 0.0901 340 D532073 6 38 879,084 0.1233 01414 0.0000 00000 0.0899 341 , D53156Z 8 275 358,607 0,1777 0.0036 0.0000 0,0000 0.089ii 342 0531201 8 46 1,395,060 0.11n 0.0036 0.0000 0.0000 0.08% 343 D531561 8 671 350,685 0.1767 0.0036 0.0000 0.0000 0.0891 344 D531669 11 796 535,092 0.0487 0.3225 0.0000 0.0000 0.0888 345 I D532051 10 252 961,856 0,1345 0.0036 0.2044 0.0000 0.0884 I 346 D532053 10 60 973,668 0,1336 0.0036 0.2044 0.0000 0,088,0 347 0531574 g 503 380,175 0.14H 0,0802 0,0000 0.0000 0.0877 348 D531179 10 30 1,19;1,508 0.1429 0-0802 0.0000 0.0000 0.0875 349 D531122 8 285 916,404 0.1731 0,0036 0.0000 0,0000 00873 350 D531175 6 2.8 1,192.785 0.1422 o.oso2 0.0000 0.0000 0,0872 351 0531156 10 449 1,480,221 0.1722 0.0036 0.0000 0.0000 0.0868 352 0531000 8 815 489,192 0.1115 0.0801 0.1408 0.0000 0.0859 353 D532041 6 9 836,934 0.0908 0.1414 0.1193 0.0000 0.0856 354 I D531110 8 470 835,596 0,1654 0.0036 0.0000 0,0000 0.0834 355 I 0531607 8 . 152 510,930 0.0687 0.0036 0.4788 0.0000 00829 356 D531280 8 153 1,189,881 o.1644 0.0036 o.ooao 0.0000 0.0829 357 0531572 8 56 398,415 0.1318 0.0802 0.0000 0.0000 0.0819 358 0531564 8 283 327,075 0,1610 0.0036 0.0000 0.0000 0.0817 359 0531-8'18~ --ie 3c29 - 881;888 -Oc16'1c7 - 0:0035 - 0;0000 - 0:0000 0;0816 ~ 360 I- ----- -- D531081 10 230 415,536 0.1612 0.0036 0.0000 D.0000 0.0813 361 D531317 8 18 705,054 0.1195 0.0802 0.0000 0.0000 0.0808 362 J D531641 8 38 100,950 01601 0.0036 0.0000 0.0000 0,0808 363 230
CC 07-16-2024
230 of 849
i
)
Note · Pfi,e.s with lcl!!!nlical Consequence of Faik.Jre Searo were prioritizi'!d accordrt1.g to thi!!.irfloodin~ lnteh1itle-s - -
Flooding Impact C&tl!OIIV
Diameter Len,th lntamlty Htahll&
Pipe ID (inl (ft) (gall Safa!v T~atlon Business
0531083 10 484 469,044 0.1597 0.0036 0,0000
D531084 10 377 472,284 0.1589 0.0036 0.0000
0531016 8 20 987,294 0.1276 0.0802 0.0000
0532061 , 6 47 812,669 0.0978 0.1414 o.ois4 ,
D53108S 10 1 2,451 415,193 0.1566 0.0036 ' 0.0000
0531148 10 1,148 435,405 0.1561 0.0036 0.0000
0531071 10 231 474,836 0.1555 0,0036 0.0000
0530977 6 200 8S4,S08 0.1539 0.0036 0.0000
D532136 B 252 926,426 0.1232 0.0802 0.0000
0532054 • 6 348 580,493 0.0556 0.1414 0.2132
D5321S6 6 31 1,055,400 , D.U26 0.0802 0.0000
D536145 8 433 414,3U 0.1531 0.0036 0.0000
D532057 6 126 733,9Sq 0.0741 0,1414 0.1193
0531162 10 261 1,298,772 0.1531 O.OCB6 0.0000
0532033 10 218 960,768 0.1485 0.0036 0.0166
0531091 10 222 46.5,710 0.1501 0.0036 0.0000
0530873 8 44 926,545 0.1192 0.0802 0.0000
0533665 8 372 415,608 0.1490 0.0036 0,0000
0542752 6 185 752,261 0.0923 0.1414 0.0000
D531567 8 523 386,261 0.1471 0.0036 0.0000
DS31064 10 326 468,113 0.1470 0.0036 0.0000
0531043 10 117 1,061,280 0.1459 0.0036 0.0000
0531699 8 ' l.53 549,810 0,0710 0.1414 0.0986
D531063 10 555 493,425 0.1457 0.0036 0.0000
1D531601 12 56 100,181 0.0177' 032.25 0.0000
0600342 10 1,997 101,220 0.0174 03225 0.0000
0600347 8 183 101,042 0.0161! 0.3225 0.0000
D530937 8 19 646,17(] 0.0700 0.1414 0.0939
0531316 8 264 600,212 0.11~0 0.0802. 0.0000
0532201 10 21 462,5:u· 0.1423 00036 0.0000
D530932 6 12 636,370 0.0682 0.1414 0,0939
D532143 10 24 1,0-$0,100 0.1419 0.0036 0.0000
0531072 8 270 412.,080 0.1416 0.0036 0.0000
D532067 6 105 765,744 0.0862 0.1414 0,0000
0533117 6 820 336,728 0.0470 0.1414 0.1939
0530963 8 231 887,661 0.1103 0.0802 0.0000
0542750 10 193 469,679 0.1407 0,0036 0.0000
0532142 10 6 1,038,960 0.1404 0.0036 0.0000
0531065 10 153 456,840 01391 0.0036 0.0000
0531306 10 177 531,S10 0.1073 0.0802 0.0000
0530975 8 328 687,629 0.13n 0,0036 0.0000 - 0531645 6 605 79,500 0.1375 0.0036 0.0000 0531073 a, 375 415,056 0.1374 0.0036 0.0D00
,0531024 10 274 1,006,908 01371 1 0.0036 . 0.0000
'0531600 8 232 52,135 0.0086 0.3225 0.0000
0531585 8 1,6S9 67,574 0.0082 0.3225 0.0000
0531092 10 110 400,308' 0.1357 0.0036 0.0000 '
0531111 8 28 672,665 0.0806 0,1414 0.0000
0531647 8 528 8S,238 0.1356 0.0036 0,0000
0531982 6 197 617,868 O.Oll04 0.1414 0.0000
0532251 8 9 109,158 0.0079 0,3225 0.0000 '
D531547 a 983 287,291 0.1351 0.0036 0.0000
D531059 10 l,138 365,775 0.1344 0.0036 0.0000
0531304 B 18 516,212 0.1031 0.0802 0.0000
0530980 6 272 656,736 0.1336 0.0036 0.0000
D531323 6 971 292,706 01027 0.0802 0.0000
0530962 8 134 816,g43 0.1027 0.0802 0.0000
D531589 2 92 34.671 0.0056 0.3225 0.0000
D532038 6 165 455,184 0.0527 0.0036 0.4009
0532013 8 203 581,033 0.0775 0.1414 0.0000
0531167 10 377 1,012,428 0.1325 0.0036 0.0000
0531276 B 372 840,032 0.1324 0.0036 0.0000
0530964 8 224 I 788.880 0.1318 0.0036 0.0000
D531337 8 706 376,457 0.1316 0.0036 0.0000
0531693 6 155 417,915 0.0513 0.0036 0.4009
0531334 8 391 388,714 0.1308 0.0036 0.0000
0530933 8 694 550,834 0.0564 0.1414 0.0939
0S31305 B 37 499,454 0.0984 0.0802 0.0000
0532.164 6 32 563,210 0 ,0981 0.0802 0.0000
D531335 8 491 336,600 0.1287 0.0036 0.0000
053159D 2 131 13,233 0.0010 0.3225 0,0000
0531592 2 105 13.129 0.0010 0.3225 0.0000
D531320 6 401 488,124 00976 0.0802 0.0000
. -
Consequanee
System dFaU~r"' ..

O........t!nno: tmpact$:019

0.0000 0.0806 364

0.0000 0.0802 365

0.0000 0.0798 366

0.0000 0.0798 367

0.0000 0.0790 I 368

0.0000 ' 0.0788 369

0.0000 0.0785 370

0.0000 0.0776 371

0.0000 0.0776 3n

0.0000 0.0774 373

0.0000 0.0773 374

0.0000 0.0773 375

0.0000 0.0773 376

0.0000 0.0773 377

0.0000 00766 378

0.0000 0.0758 379

0.0000 0.0756 380

0.0000 0.0752 381

0.0000 0.0745 382

0.0000 0.0743 383

0.0000 0.0742 384

0.0000 0.0737 385

0.0000 Q.()736 I 386 ,

0.0000 0.0736 367

0.0000 00733 388

0.0000 0.0732 389

0.0000 0.0729 390

0.0000 0.0727 .391

0.0000 0.0720 392

0.0000 0.0?19 393

0.0000 0 .0718 394

0.0000 0.0717 395

0.0000 0.0715 396

0.0000 0.0714 397

0.0000 0.0712 398

0.0000 0.0712 399
0,0000 0.0711 400

0.0000 0.0709 401

0.0000 0.0703 402

0.0000 0.0_697 403

0.0000 0.0696 404

0.0000 0.0695 405
00000 0.0694 406

0.0000 0.0693 407

0.0000 0.0688 4oa

0.0000 0.0686 409

0.0000 0.0686 410

0.0000 0.0686 411
0,0000 0.0685 412

0.0000 0.0685 413

0.0000 0.0684 414

0.0000 0"0683 415

0.0000 0.0679 416

0.0000 0.0676 417

0.0000 0.0675 418

0.0000 0.0674 419 ,
00000 0 ,0674 42.0
0-0000 0.0673 421

0.0000 0.0672 422

0.0000 0.0670 423

0.0000 0.0670 424
O.QOOO 0.0669 425

0.0000 00666 426

0.0000 0.0665 427

0.0000 O.llli,65 428

0.0000 Q,0661 429

0.0000 0.065S 430

0.0000 0,0652 431

0.0000 0.0651 432

0.0000 0.0651 433

0.0000 0.0650 434
0,0000 0.0650 435

0.0000 0,0649 436
231
CC 07-16-2024
231 of 849
Nah!-. P1p!!S- with id'-rrtl<=•I Corniequ~nc:e- of F11ilure SWre$ were prlorltlzid at:cofding tn th,rr floodi nJ Intensifies
• 11:. . .
-. .~
. .
..
fl00d/n1 lmpatt cataogry Consequence . ' Diameter Le,,Jth Intensity Health& Sy«e(n or Failunl PipelD llnl Cit! (nil S.fetv Transportation Buslnest ooeratlons Impact score D531083 10 484 469,044

0.1597

0.0036 0.0000 0.0000
o.os06 364
0531084 10 377 4n,2s4

0.1589 00036 0.0000 0.0000 0.0802 365
0531016 g 20 987,294 0.1276 0.0802 0.0000

0.0000 D.0798 366
D532061 6 47 812,669 0.0978 0,1414

0.0254 0.0000 , 0.0798 367
I 0531085 10 2,451 415,193

0.1566

0.0036

0.0000 0.0000 0.0790 368
0531148 10
1,14.!l 435,405

0.1561 0,0036 0.0000 0.0000

0.0788 369
\ 0531071 10 231 474,836 0,1556

0.0036 0.0000 00000 , 0.0785 370
0530977 6 200 !!54.508

0.1539 0.0036 0.0000 0.0000
o.om; 371
\ D532135 8 252 926,426

0.1232

0.0802 0.0000 0.0000 0.0776 372
D5320S4 6 348' 580,493

0.0556 0.1414

0.1132 0.0000

0.0774 373 ,
D532156
5 1 31
1,055,400

0.1226 '

0.0802 0.0000 0.0000

0.0773 374
0536145 8 433 414,312 0.1531 0.0036 0.0000

0.0000 0.0773 375
0532057 6 126 733,950 0.01.41 0.1414

0.1193 0.0000

0.0773 376
0531162 10 261 1,298,772 0.1531

0.0036 0.0000 0.000D

0.0773 377
D532033 10 21B 960,768

0.1485 00036 0.0166 0.0000 0.0766 378
D531091 10 222 465,710

0.1501

0.0036 0.0000 a.0000 0.07S8 379
) 0530873 8 44 926,545 0.1192 D.0802 0.0000

0.0000 0.0.756 ' 380 ,
053:!665 8 372 415,608 0.1490 0.0036 0.0000 0.0000 0,0752 381 0542752 6 185 752,261 ' 0.0923

0.1414 0.0000 0.0000 0.0745 382
D531567 8 523 386,261

0.1471 0.0036

0.0000 0.0000 0.0743 383
! D531064 10 326 468.113 0.1470

0.0036 0.0000 0.0000

0.0742 384
) 0531043 10 117
1,061,280 0.1459 0.0036 0.0000 0.0000 0.0737 385
0531699 B 153 549,810 0.0710

0.1414 0.0986 0.0000 0.0736 386
,0531063 10 555 493,425 0.14S7 __

0.0036 0.0000 0.0000 0.0736 387
0531601 12 , 56 • l00,181 0.0177 0.3225 0.0000 00000 0.07B 388 D600342 10 1,997 101,220 0.0174

0.3225 0.0000 0.0000 0.0732 389
060034i 8 183 101,042 0.0168

0.3225 0.0000 0.0000

0.0729 3.~0
0530937 8 19 646,170 0.0700 0.1414 0.0939 0.D0OO 0.0727 391 0531316 8 264 600,212 0.1120 0.0802 0.0000 0.0000 0.0720 392 D532201 10 21 462,514 0.1423 0,0036 0.0000 0.0000

0.0719 393
D530932 6 12 636,370
D.0682

0.1414 0.0939 0.0000

0.0718 394
D532143 10 24 1,040,100 0.1419 0.0036

0.0000 0.0000 0.0717 395
0531072 8 270 412,080 0 .. 1416 0.0036

0.0000 0.0000 0.0715 396
D532067 6 105 765,744 0.0862 0.1414 0.0000 0.0000, 0.0714 397 D533117 6 820 336,728

0.0470 0.1414 0.1939

0.0000 0.0712 398
0530963 8 231 887,661

0.1103 0.0802

0.0000

0.0000 0.0712 399
• 0542750 10 : 193 4G9,679

0.2407 0.0036 0.0000 0.0000 ' 0.0711 400
0532142 10 6 1,038,960 0.1404 0.0036 0.0000

0.0000 0.0709 401
0531065 10 1S3 456,840 0.1391

0.0036 0.0000 00000

0.0703 402
D531306 10 177 531
,510 0.1073

0.0802 0.0000 0.0000 0.0697 403 I 0530975 8 328 687,629 0.1377 0.0036 0.0000 00000 0,0696 404 I 0531645 6 605 79,500 0.1375 0.0036 0.0000
0,0000

0.0695 405
I D531073 g 375 415,056 0.1374

0.0036 0.0000 0.0000

0.0694 , 406
I D531024 10 274
1,006,908 0.1371 0.0036

0.0000 0.0000 0.0693 407
I 0531600 8 232 51
,135 0.0086 0.3225 0.0000 • 0.0000 ,

0.0~88 408
I 0531585 8 1,6S9 67,574 0.0082

0.3:?25 0.0000 0.0000 0.0686 409
D531092 10 110 400,308 0.1357

0.0036 0.0000 0.0000 0.0686 410
I 0531111 8 28 672,665 0.0806 0.1414 0.0000 0.0000

0.0686 411
I D531647 8 528 85,231! 0,1356 0.0036

0.0000

0.0000 0.068S 412
0531982 6 197 617,868 0.0804 0.1414 0.0000 0.0000 0.06!!5 413 0532251 8 9 109,158 0.0079 0.3225 0.0000 0.0000 0.0684 414 0S31547 8 983 287,291

0.1351 0.0036 ' 0.0000 0.0000 0.0683 415
0531059 10 1,238 365
,775 0.1.344

0.0036

0.0000 0.0000

0.0679 416
D531304 8 18 516,212 0.1031

0.0802 0.0000
0,0000

0.0&76 417
0530980 6 272 656,73G 0.1336

0.0036 0.0000

0.0000 0.0675 418
D531323 6 971 292,706

0.1027 0.0802 0.0000 0.0_(lO0
0,0674 419
0530962 8 134 , 816,943 0.1027 0.0802

0.0000 0.0000 0.0674 420
:0531589 2 92 34,671

0.0056 0.3225 0.0000 0.0000 0.0673 421
0532038 6 165 455,184
o.0s27. 0.0036 0.4009 0.0000 00672 422 I 0532013 8 103 581,033 0.0775 0.1414 0.0000 0.0000 0.0670 423 D531167 10 377 1,012,428 0.1325

0.0036 0.0000 0.0000

0.0670 424
I D531276 8 372 840,032
0:!1324 0.0036 0.0000 0.0000 0.0669 425
I ) 0.530964 8 224 788
,880 o.~318 0.0036 0,0000 0.0000

0.0666 1 426 I D53133/ 8 706 376,457 0.1316 0.0036 0.0000 0.0000 0.0665~ 427 ) D531693 6 155 417,915

0.0513 0.0036 04009 0.0000

0.0665 428
D531334 8 391 388,714 0.1308 0.0036 0.0000 0.0000 0.0661 429 ) 0530933 8 694 550.834 0.0S64 0.1414 0.0939 0.0000 0.0659 430 053130S 8 3/ 499,454

0.0984 0.0802 0.0000 0,0000'

0.0652 431
D532164 6 32 563,210 00981 00802

0.0000 0.0000

0.0651 432
,053-1336...

G. .J91 •36 600
-

0.1287 0.0036 0.0000

0.0000 0.0551 433
0531590 2 131 13,233 0.0010 0.3225 0.0000 0.0000
0,0650 434
0531592 2 105 13,129 0.0010 0.3225 0.0000 0.0000

0.0650 435
DS31320 6 401 488,124 0,0976 0.0802 0.0000' 0.0000 0.0649 436 ! 232
CC 07-16-2024
232 of 849
(
~
' (
{
{
(
(
(
(
(
i
(
l \.
l
rtnte; Ptpel with hJentlcal conu11ueme of f.aJlurc Score-s were prioritlz.ed acx-orclrneto tht~t rbJ.di~ lnten!.itie5. ---· . . _,laT • • . "" . . Flood,ng Impact Cateogry
Diameter Le11gth Intensity Health&
J>i,.elO
(in) 1ft) (1•1) 5afety Transpot1ati0n l!-uslness
0S310B3 10 48~ 459,044 0.1597 0.0036
0,0000
0531084 10 37l 472,2.84 0.1589 00036

0.0000
D531016 B 2( 987,294

0.1276 0.0802 0.0000
0537tl61 6 47 812,669

0.0976 D.1414 0.02S4
0531085 1D 2,45 415,193

0.1566 0.0036 0.0000
0531148 10 1,14, 43
5,405

0.1561 0.0036 0.0000
0S31071 10 231 47
4,836 0.1556 0.0036 0.0000
D530977 6 200 854
,508 0.1539

0.0036 0.0000
D53U36 8 252 926,426

0.1232

0.0802 0.0000
0532054 6 348 580,493 0.0556

0.1414

0.2132
0532156 6 31 1,055,400 0.1226 0.0802

0.0000
D536145 433 414,312

0.1531 0,0036 0.0000
0532057 126 733,950 0.0741 0.1414
0,1193
053U62 10 261 1,198,772 0.1531 0.0036

0.0000
0532033 10 218 960,768

0.1485 0,0036 0.0166
0531091 10 222 465,710

0.1501 0.0036 0.0000
0530873 8 44 926,545,

0.1192

0.0802 0.0000
D533665 8 371 415,608 0.1490

0.0036 0.0000
0542752 6 185 752,261 0.0923

0.1414 0.0000 ,
0531567 8 523 386,161 0.1471 0.0036

0.0000
D531064 1 l26 468,113

0.1470 0.0036 0.0000
0531043 10 117 1,061,280

0.1459 00036 0.0000
0531699 lj 153 549,810

0.0710

0.1414 0.0986
0531063 10 555 493,425

0.1457 0.0036 0.0000
0531601 12. 56 100,1B1

0.0177

0.3225

0.0000
0600342 10. 1,997 101,220 0.0174 0.3225 0.0000
0600347 8 1B3 101,042

0.0168 0.3225

0.0000
0530937 8 19 646,17C 0.0700

0.1414 0.0939
D531316 8 264 600,212
0,1120 0.0802 0.0000
0S32201 10 21 462,524

0.1423 0.0036 0.0000
0530932 6 12 636,370 . 0.0682 0.1414

0.0939
D532143 10 l~ 1,040,100 0.1419 0.0036 0.0000
0531072 8 nc 412,08C 0.1416 0.0036 0.0000
D532067 6 10' 765
, 744 0.0862 0.1414:

0.0000
0533117 6 820 336,728

0.0470 0.1414 0.1939
D530963 8 231 887,661 0.1103

0.0802 0.0000
0542750 10 193 469
,679

0.1407 0.0036 . 0.0000
0532142 10 E 1,038,960

0.1404 0.003li

0.0000
D531065 10 153 456,8_40 0,1391 O.D036 0.0000
0531306 10 lfJ 531,510

0.1073

0.0802' O.D000
053097S e 3lS 687,629 D.1377, 0.0D36 0.0000
0531645 6 605 79,500 0.1375

0.0036

0.0000
0531073 8 375 415,056 0.1374 0.0036 0.0000
0531024 10 274 1,006.908

0.137l 0.0036 0.0000
D53160D 8 232 52,135

0.0086 0.3225 0.0000
D531585 8 1,659 67,574 0.0082 0.3225

0.0000
0531092 1C 110 400,308

0.1357 0.0036 0.0000
DS31111 8 28 672,665 0,0806 0.1414

0.0000
D531647 B 528 85
,:1.38

0.1356

0.0036 0.0000
0531982 6 197 617,868 0.0804

0.1414 D.0000
0S32251 8 9 109,15B 0.0079

0.3225 0.0000
D531547 8 983 287,291 0.1351 0.0036 0.0000
D53l.059 10 1,138 365,775

0.1344 0.0036 0.0000
D531304 8 18 516
,212 0.1031 0.0802 0.0000
0530980 6 272 656,736 0.1336 0.0036

0.0000
D531323 6 97l 292,706

0.1027 0.0802 0.0000
0530962 s 13< g16,943 0.1027 0.0802 0.0000
D531589 2 92 34,671 0.0056 0.3225

0.0000
0532038 6 16' 455,184

0.0527 0.0036. 0.4009
0532013 e 203 SBI.033

0.0775

0.1414

0.0000
D531167 10 377 1,012,428

0.1325 0.0036 0.0000
D531276 8 372 _ 840,032

0.1324 0,0036

0.0000
0530964 ' B 224 788,880
D,1318

0.0036 0.0000
D531337
a, 706 376,457 0.1316 0.0036

0.0000
0531693 6 155 417,915
0,0513

0.0036 D.4009
D531334 8 391 3!18,714 01308 0.0036

0.0000
D530933 , 8
- 694 550,834 .

0.0564 0.1414

0.0939
0531:'IOS a 37 499,454 0.0984 0.0802

0.0000
D532164 6 32 563,21C 0.0981

0.0802 0.0000
' 0531336 8 491 B6J6DO

0.1287 0.0036 0.0000
D531590 , 2 131 J.3,233 0.0010

0.3225

0.0000
0531592 2 105 13,129 0.0010

0.3225 0,0000
D531320 6 401 488,124 0.0976 0.0802 0.0000
. .

Consequence •offailure . ' System
Oaeratrons Impact Score

0.0000 0.0&06 364

0.0000 0.0802 365
,

0.0000 0.0798 366

0.0000

0.0798 367
t 0.0000 0.0790
368

0.0000

0.0788 369

0.0000 0.0785 370

0.0000

0.0776 371

0.0000 0.0776 372

0.0000

0.0774 373

0.000D 0.0773 374

0.0000 0,0773 375

0.0000
D.0773 376

0.0000

0.0773 377

0.0000 0.0766 378

0.0000 . 0.0758 379

0.0000

0.0756 380
0,0000 0.0752 381

0.0000

0.0745 382

0.0000 0.0743 383

0.0000 00742 384 0.0000 0.0737 385 0.0000 0.0736 386

0.0000 0.0736 387

0.0000

0.0733 388

0.0000

0.0732 389'

0.0000 0.0729 390

0.0000

0.0727 391

0.0000 0.0720 392

0.0000 0.0719 393

0.0000 0.0718 .394

0.0000 0.0717 395

0.0000 0.0715 396

0.0000

0.0714 397

0.0000 00712 398
00000 0.0712 399

0.0000 .

0.0711 400

0.0000 0.0709 401
D.0000 00703 402 0.0000 0,0697 403

0.0000 0.0696 404

0.0000 0.0695 405 D.0000 0.0694 406

0.0000 0.0693 407

0.0000 0.0688 408

0.0000 0.0686 409

0.0000 0.0686 410

0.0000 0.0686 411

0.0000

0.0685 412

0.0000. 0.0685 413

0.0000 0,0684 414

0.0000 00683 415

0.0000 0.0679 416 0.0000 0.0676 417

0.0000 0.0675 418
0,0000 0.0674 419 0.0000 0.0674 420 0.0000 0.0673 421 0.0000 0.0672 422 0.0000 0.0670 423 0.0000 0.0670 424 0.0000 0.0669 425 0.0000 D.0666 426

0.0000
0,0665 427

0.00D0 0.0665 428

0.0000 0.0661 429

0.0000 0.0659 430

0.0000. 0,0652 431 0.0000 0.0651 432

0.0000 0.0651 433

0.0000 0.0650 434
00000 0.0650 435

0.0000 0.0649 436
233
CC 07-16-2024
233 of 849
tic:ata: fipeJ
with idlffltlt:a1 Corur.quer,c;e othI,u,e Scores were priorltl:u1d ac,nfdin1 to thelrtf0oc011g i11tcnsitles I ----. . ;.,. , .... ( Impact Cateoerv Consequence ' floocl"I Diameter ltn,th Intensity of fallw.
.. ( Health Ii Transportation System
Pipe ID fill) (ft) (pl) Safety Business Oparatlons Impact Score l 0531914 8 65 389,880
0,0718 0.0802 0,0000

0.0000 0,0519 510
D536143 8 790 405
,059

0.0411 0.1414

0.0000

0.0000 0.0519 511
r D532169 8
257 501,857 0,1022 0.0036 0.0000

0.0000 0.0518 512
0532025 8 12 657,552 0.1021 0.0036 • 0.0000 0,0000 0,0518 513 , D53ll92 8 39 629,413 0.0712 0.0802 0.0000

0.0000 0.0516 514
D531654 8 509 87,355
0,1014 0,0036 0,0000 0.0000 0.0514 515
j 0531303 8 305 353,462
0,0708 0.0802
0,0000
0,0000 0 0514 516
0532163 6 38 846,651 0.1011 0.0036 0.0000 0.0000

0.0513 517
I D531553 Ii 285 255,818 0.1009
0,0036

0.0000 0.0000 0.0512 518
0531930 8 I! 615,429 0.069S 00802 0.0000 0.0000
o.osoa 519
I 0532026 8 20 · 632.,289 0,0996 0.0036 0.0027 0,0000 0.0508 520 0S31191 8 119 603,697 0.0695 0.0802

0.0000 0.0000 0.0508 521
I 0531966 8 401 662,008 0.0991 0.0035

0.0000 0.0000 0.0503 522
D531947 8 382 602,034 0.0985 0.0036 D,0000 0.0000

0.0500 523 l 05308!13 a 373 SSS,128 0.0984 0.0036 1 0,0000 0.0000 0.0499 524 D53n80 8 18 385,455 0.0677
0,0802 0,0000

0.0000

0.0499 525 j D532035 6 172 441,252 0,0587 0,0036 O.l95S 0.0000 0,0496 526 D531962 8 56 663,642

0.0976 0.0036 D.0000 0.0000

0.D495 527
r T602850 g l 941,525 0 0989
0,0000 0.0000

0.0000

0.0495 .528
0531023

8. 195 782,988 0.0974 0,0036 0.0000 O.D000 0.0494 529
'D533666 8 714 378,276 0,0974 C.0036 0.00D0 , 0.0000 0,0494 530 0531333 B 479 475,220

0.0972 0.0036 D.0000 0.0000 0.0493 531
D532193 6 6 343,~17 0.03S7 ' 0,0036 0.3070 0.0000

0.0493 532
0531262 6 48 573,203 0.0665 0.0802 0,0000 0.0000 ·

0.0493 533
0530924 6 65• 371,735 0.0413 0,1414 0.0000 0.0000 0.04S9 534 0542.707 10 339 343,335 0 0964 0.0036 ' 0,0000 0,0000 0.048 535 0533676 8 203 417,396 0.0962 00036 0.0000 0.0000 0.0488 535 0531586 8 65 90,636 0.0409 0.1414

0.0000 0.0000 0.0487 S37
D532875 G 2, 612,476

0.0653 0.0802 0.0000 0.000D 0.0487 538
0531923 12 140 759,423 0.0971 0,0000 0.0000 0.0000 0.0486 539 T602856 ' 8 20 922,194 :

0.0971 0.0000 0.0000 0.0000
0,0485 540
- 0531868 8 10! so2.1q3

0.0747

0.0036 0.1033 ~

0.0000 0,0434 541 """
0532888 6 376 433,237 0,0646 0.0802 0,0000 0.0000 0.0483 542 0531664 6 314 74,993 0.0944 0,0036 0.0D00 0.0000 0.0479 543 0530897 8 35 736;64S 00940 00036

0.0000 0.0000
0,0477 544
•D532129 6 20 870,240 0.0942 0.0000

0.0000 0.0000 0.0471 545
0530896 8 156 712,567 0.0925 0,0036 0.0000 0.0000

0.0470 ' 546
0531842 8 36 732,218 0.0925 0,0036 0,0000 0.0000 0.0470 547 I D531004 e 566 640,219 0.0618

0.0802 0,0000 0,0000 0,0461 548
D53281!7 6 33 479,324 0.0613 0.0802 0.0000 0.0000
0,0467 549
I D531.58'> 8 1,183 177,068 0.0610 , 0.0802 0,0000 .
0,0000 0,0465 550
I D532&!5 6 175 511,658 0.0608 0.0802 00000 0.0000

0.0464 551
I 0533667 8 596 374,160 0,0911 0.0036 0.0000 0.0000 0.0463 552 0531591 12 1( 466,830 0.0356 0.1414 0,0000 0,0000 0.0461 553 I 0542711 8 1,215 374,475 0.0904 0.0036 0.0000 0.0000 0.0459 554 D531700 6 305 471,045
0,0501

0.0036

0.2010
0,0000 0,0459 555
0531957 8 42Q 576,954

0.0902 0.0036 0.0000

0.01)(){) 0.0458 556
' 0531010 8 1,265 304,620 0.0311
0,0802 0.1408

0.0000 0.0457 557
0532032 6 859 537,084 ' 0,0866

0.0036

0.0166 0.0000

0.0457 558
D5348l4 8 91 520,913 0.0696

0.0036
-

0.1006 0.0000 0,0456 559
D531977 8 353 592,416 0.0896

0.0036 0.0000 00000 0,0455 560
\ D531843 8 11 ' 722,841 0.0895

0.0036 0.0000

0.0000 0.045S 561
0531347 8 464 583,83,1

0.0895 , 0.0036 0.0000 0.0000 0.0455 562
I 053W08 6 227 282
,465 0,0342 0.1414

0.0000 0.0000 0.0454 563
0531696 8 359 515,415

0.0684 0.0036 0.1 31 0.0000

0.0452 564
I 0531819 8 201 678,426
0,0890

0.0036 0.0000 0,0000 0.0452 565
I ( 0531653 8 166 84,S75

0.0886 0.0036 0.0000

0.0000
0,0450 566 1
I D531665 6 HJ 84,898

0.0885 0.0036 '
0,0000

0.0000 ·
0,0450 567 I 0533671 8 321 375,792 0.0885 0,0036 0.0000 0.0000 0.0450 568 I 0531711 8 298 412,700 0,0884 0,0036 0.0000 0,0000 0.0449 569 I 05312.34 8 672 420,743 0.0576 0.0802 0.0000 0.0000 0,0448 570 I D530908 8 363 668,!114

0.0879 '

0.0036 0.0000 0.0000
0,0447 571
l 054
2704 10 501 340,920 ' 0,0878 1 0 0036
0,0000 00000 0.0446 1 572
0531849 8 ' 18 827,474 0,0876

0.0036 0.0000 0.0000 0,0445 573
0532871 6 3( 442,536

0.0570 0.0802
0,0000

0.00D0 0,0445 574
0531058 6 B 463,824

0.0890

0.0000 0,0000 0.0000 0.0445 575
- j 053S869 6 118 75,098 0.087S 0.0036 0.0000

0.0000

0.044S 576
0530882 8 136 711,212 0.0874 0,0036 0,0000

0.0000 00444 577
0542.705 10 1,321 '._ 33S,145 0.0873 0.0036 0.0000
0,0000 0,0444 578
0~309,
0531844 -1
s- 24t sn,440 0$2-2.
.n 0036 --0,oom .O,OJJOD ~ ~
8 354 736
,197 0.0869

0.0036 0.0000

0.0000 CL0442 580
0536147 8 177 379,740
0,0562 0,0802 0,0000 0.0000 0,0442 581
0530959 8 55 458,115 0.0562 00802 0.0000 0.0000 0.0442 582 " I 234
CC 07-16-2024
234 of 849
{
l
l
\
I
'
(
Notl!; Pfpe:s wPth idl:!ntical Consaqu~oce of Failure Scores were- p~ioritized acr.ordin£ tn thtfr flaodine: jntcnsitie~ "lfTT~ i"r.t • r,,..-,01:1 • ··••
- .... . . . .. 'r.:n~[!ft 1.••! •
Ftoodlng I mpac;t Cateagry
Diameter Le~gth lntvnsity Ho,alth It System
Pipe ID (iri) (ft) (gal) Safet'j, Transporta
tior> Business Opefallons
0531104 8 435 621,852 0.0721

0.1414

0.0000

0.0000
0531074 G 61 316,649

0.1270 0.0036

0.0000 00000
OS30931 8 652 441,201 0.0S26
0,1414 0.0939

0.0000
DS36149 12 4 1,032.,402 0.1275

0.0000

0.0000
0531649 B 99 86,985

0.1260 0.0036 0.0000 0.0000
D531310 8 83 479,892

0.0944 00802 0,0000 0.0000
0532199 8 22 408,864 0.1244 0.0036

0.0000 0.0000
D531661 8 129 88,587 0.1240

0.0036 0,0000

0.0000
0530982 e 490 558,888

0.1239

0.0036 0.0000 0.0000
D543110 f 12 867,395 01233

0.0036 0.0000

0.0000
0533108 6 9 610,879 0.0736 0.0802 0.0946 0.0000
0531009 s 169 713,788 0.D923 0.0802

0.0000 0.0000
D531155 10 507 934,659 0.1225

0.0036

0.0000 0.0000
D531335 s 167 386,206

0.1221 0.0036 0.0000

0.0D00
0531975 a 84 773,917

0.1H4

0.0000

0.0000 0.0000
D531606 8 349 512,828
0,0640

0.0036

0.2884 0.0000
D531651 8 54< 7S,966 0.1214

0.0036 0.0000 0.0000
D532072 8 121; 585,897

0.0661 0.1414 0.0000

0.0000
053206B a 476 579,338

0.0656 ().1414

0.0000

0.0000
' D531847 10 191 B89,50B 01203 0.0036 0.0000 0.0000
D53.2116 8 223 782,076 01200 0.0036 0,0000 0,00D0
, 0542760 12 13 940,776 0.1190 0.0036

0.0000 0.0000
D542757 12 ~ 913,068 0,1186 D.0036 0.0000 0.0000
• D531082 6 231 199,556 01185 00036 0.0000 0.0000
D542759 12 24 932,220 0.1182 0.0036 0.0000 0.0000
0542756 12 2• 911,040

0.1180 0.0000 0.0000

0.0000
' 0542758 12 644 917,988 0.1165 0.0036 0,0000

0.0000
D531846 e 749 626,262 0.0848 0,0802

0.0000 0.0000
1 D531314 6 73( 373,842

0.0846 0.0802 0.0000

0.0000
• 0531025 8 36 862,124

0.1149 00036 0.0000 0.0000
D531109 6 89 496,561 0.0597 0.1414 0.0000

0.0000
D532027 8 ! 663,831

0.1146 0.0036 0.0000 0.0000
0531089 10 758 418,811 0.114S

0.0036 0.0000 0.0000
D531663 i 203 n,010 0.1145 0 0036

0.0000

0.0000
' 0531028 8 23 651,431

0.1140 0.0036 0.0000

0.0000
0531848 8 16 899,798

0.1130 0,0036 0.0000 0.0000
D531188 B 361 636,557 0.0816
0,0802 0.0000 0.0000
0531060 12 SSB 395,004 0.1118 0.0036 0.0000 0,0000
D531184 6 117 486.312 0.0807 0.0802 0.0000 0.0000
0531662 8 151 77,108 0.1113 0.0036

0.0000 0.0000
0531576 8 428 574,114 0.0805 0.0802 O.D000

0.0000
D531181 5 679 467,208 0.0805 0.0802 0.0000 0.0000
D532 64 6 &59 449,831 0.0508 0,1414

0.0254 0.0000
D531519 B 495 344,285 0.0306 0.0802

0.2478 0.0000
T602848 10 7 1,162,044 0.1106 0.0036

0.0000

0.0000
T603302 8 102 1,04:1.
,128 0.1117 0.0000 0.0000 0.0000
0531643 6 673 79,500

0.1095 0.0036 0.0000

0.0000
0532198 8 313 430,920 0.0292 0.0802 02478 D.0000
D531038 8 216 846,626

0.1092 0.0036 0.0000 0.0000
0532021 8 221 603,309 0.1086 0,0036 0.0000 0.0000
D531582 8 921 169,095 0.0775

0.0802

0.0000 0.0000
0530885 8 113 856
,947

0.1080

0.0036

0.0000 0.0000
0531380 6 658 310,644

0.1080 0.0036 0.0000

0.0000
T600006 10 7 921,480 0.1095 0.0000

0.0D00 0.0000
D531289
61 151 295.730 0.1070 0.0036 0.0000
0,0000
D534823 8 74 543,053 D.0860 0.0036 0.1031

0.0000
D530934 6 ~ 278,401 0.0319 0.1414 0.0939 0.0000
D531829 • 6 859 519,396 0.1024 0.0036 0.0166 0.0000
D531910 8 463 376,403

0.0748
0,0802 0.0000 0.0000
0535813 6 42 85,493

0.1051 00036

0.0000 0.0000
D5315B8 8 548 6!!,752
0,0497

0.1414 0.0000
0,000D
0531850 12 391 928,464

0.1046 0,0036 0.0000

0.0000
D531648 6 85 82,710 01046 0.0036 0.0000

0.0000
D531845 8 121 850,941 0.1045

0.0036 0.0000 0.0000
D531869 8 75 501
,885 0..0648

0.0036 0,1971

0.0000
D54.2708 10 301 352,755

0.1041 0.0036

0.0000 0.0000
DS30950 6 256 402,259 0.0545 0.0802 0.0946 0.0000
0530894 8 67( 661,359

0.1034

0.0036 0.0000 0.0000
D5319ti3 8 173 665,865 0.1034 0.0036 0.0000 00000
0531915 8 30 382,080 0.0726 0.08D2 0.0000

0.0000
D531618 • 8 200 392,133
0,0230
0,0802

0.2478 0.0000
0532023 8 192 536,437

0.1026 0.0036

0.0000 0.0000
D531132 8 752 391
,417 0.0473

0.1414 0.0000 0.0000
constqu1nce
of f;iilure
•··
Impact Score 0.0643 437 0.0642 438

0.0640 439 0,063/ 440 0.0637 441

0.0632 442 0.0629 443

0.0627 444
00627 445

0.0623 446 0,0613 447 0.0622 448 0.0620 449

0.0618 450

0.0617 451 0.0616 452
0,0614 453

0.0613 454

0.0611 455

0.0609 456
0,0607 457

0.0602 458

0.0600 459

0.0600 460

0.0598 461 0.0590 461 0.0590 463 0.0585 464 0.0583 465

0.0582 466 0.0581 467
00580 468

0.0580 469

0.0580 470 0.0577 471

0.0572 472 0.0569 473

0.0566 474

0.0564 475

0.0564 476

0.0563 477 0.0563 478

0.0562 479 0.0561 480 0.0560 481

0.0559 482

0.0555 483

0.0554 484
0,0553 485
0 0550 486

0.0548 487

0.0547 488

0.0547 4B9
O.OS47 490
0,0542 491
0 0540 492 O.OS36 493

0.0536 494 0.0534 495

0.0533 496

0.0531 497

0.0530 498 0.0530 499 0.0530 500 0.0529 501
00528 502 0.0527 503 0.0524 504

0.0524 505 0.0524 506

0.0523 507
00520 sos 0.0519 509
235
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Note: f'ipM with ItJenUr."I C.oMequtnce of Fai~uro Scoi:!!.~ere priorit__!_z~d accard;ng to thf!ir ffo0ditle lntensitie!I. . . . . . . . . . . .
floodlna Impact C11teo,,y Cons11qt1enc:e '
Diameter Lengt/1 lnte/lSlty Health & System of failure .. Pipe.ID (ln) 1ft] (;rail Safetv TranspDrtalian Busllless Ooe,a!lons lmpactSco,e 0532869 8 27 450,893 0.05S9 0.08D2 110000 0.0000 0.0440 583 D53187l 6 26 425,502 o.ossa 00802 0.0000 0.0000 0.0440 584 D535329 6 10 449,238 0.0556 0.08D2 0.0000 0.0000 0.0439 585 D535330 6 13 448,110 0.0556 0.0802 D.0000 0,0000 0.0438 586 D532886 6 24} 42&,562 0.0554 0.0802 0.0000 0.0000 0.0437 587 0535331 6 31 440,918 0.0553 0.()802 D.0000 0.0000 0.0437 588 D530874 8 353 628,754 0.0859 0.0036 0.0000 0.0000 0-0437 589 D532884 6 269 470,841 0.0551 0.0802 0.000D 0.0000 0.0436 590 D531578 8 209 599,355 0.0548 0.0802 0.0000 0.0000 0.0434 591 D530900 s 262 679,953 0.0854 0.0036 0.0000 0.0000 0.0434 592 D53B89 s 317 712,257 0.0850 0.0036 0.0000 0.0000 0.0432 593 D533669 8 874 369,000 0.0848 0.0036 00000 0.0000 0,0431 594 0532011 8 239 692,927 0.0845 0.0036 0.0000 0.0000 0.0430 595 D541507 6 36 509,954 0.0845 0.0036 0.0000 0.0000 0.0430 596 0Sl287:l 6 22 430,525 0.0525 0.0802 0.0000 0.0000 0.0423 597 0531088 10 144 475,170 0.0830 0.0036 0.0000 0.0000 0.0422. 598 0531022 8 459 436,548 0.0523 0.0802 0.0000 00000 0.0422 599 T602B60 B 34 855,341 0.0841 0.0000 00000 0.0000 0.0420 600 D532882 6 347 423,848 0.0519 0.0802 0.0000 0.0000 0.0420 601 0531694 6 157 404,678 0.0428 0.0036 0.1959 0.0000 0,0417 602 D531i01 6 205 460,972 0.0415 0.0036 0.2010 0.0000 0.0416 603 0532050 6 308 518,460 0.0596 0.0036 0.1105 0.0000 00416 604 D532037 6 433 399,832 0.0529 0.0036 0.0939 0.0000 0.0415 605 D535332 8 470 396,368 0.0504 0.0802 0.0000 0.0000 0,0413 606 D531222 8 730 496,409 0.0810 0.0036 0.0000 0.0000 0.0412 607 0531998 8 240 548,331 0.0808 0.0036 0.0000 D.0000 0.0411 608 D532000 8 233 693,977 00804 0.0036 0.0000 0.0000 0.0409 609 0531090 6 193 291,072 0.0803 0.0036 0.0000 0 0000 0.0409 610 0530960 6 357 423,491 0,0495 0.0802 0.0000 0.0IJ00 0.0408 611 0531011 8 687 564,154 0.0801 0.0036 0.0000 00000 0.0408 512 0531349 6 185 400,482 00800 0.0036 0.0000 0.0000 0.0407 613 D531613 8 335 368,708 0,0366 0.0802 0.0601 0.0000 0.0404 614 D530957 6 46 379,670 0.0481 0.0802 0.0000 0.0000 0.0401 615 0S31062 10 11 492,060 0.0785 0.0036 0.0000 0,0000 0.0400 616 0531911 8 11 380,D10 0.0470 0.0802 0.0000 0.0000 0.0395 617 0531996 8 226 705,716 0.0775 0.0036 0.0000 0,0000 00395 618 T602866 8 24 787,532 0.0788 0.0000 0.0000 0.0000 0.0394 619 D531667 8 nG 73,523 0.0770 0.0036 0.0000 0.0000 0.0392 620 0542710 B 313 327,120 0.0769 0.0036 0.0000 0.0000 0.0392 621 053S654 6 294 287,925 0.0552 0.0036 0.1031 0.0000 0.0391 622. 0531076 6 115 539,427 0.0766 0.0036 0.0000 0.0000 0.0390 62.3 D531967 8 131 5S5,728 0,0763 0.0036 0.0000 0,0000 0 .0389 62.4 D531ll51 6 738 435,048 0.0762 0.0036 0.0000 0,0000 0.0388 625 D533105 6 19 391,283 0.0454 0.0802 0.0000 0.0000 0.0387 626 D531979 8 317 473,399 0.0759 0.0036 0.0000 0.0000 0.0387 6i.7 0S31828 6 12.4 671,660 0.0726 0.0036 0,0166 0.0000 0.0387 628 D542709 8 298 325,875 0.0754 0.0 36 0.0000 0.0000 0.0384 629 0531157 6 866 420,696 0.0751 0.0036 0.0000 0.0000 0.0383 630 0531020 6 60 358,019 00442 0.0802 0.0000 0.0000 0.0381 631 D531918 6 123 421,635 0.0439 0.0802 0.0000 0.0000 0.0380 632 0531929 12 20 757,575 0,0758 0.0000 0.0000 00000 0.0379 633 0542706 8 263 319,305 0.0741 0.0036 0.0000 0.0000 0.0378 634 D530955 6 376 332,415 0.0432 0.0302 00008 0.0000 0.0377 635 0532016 8 307 532,399 0.0738 0.0036 0.0000 0.0000 0.0376 636 0531559 8 503 386,745 OJJ738 0.0036 0.0000 0.0000 0.0376 637 0542712 8 420 321,795 0,0735 0.0036 0.0000 0.0000 00375 638 0535639 6 248 312,323 0.0525 0,0036 0.1006 0.0000 00370 639 D531695 8 29 S22,615 0.0711 0.0036 0.0067 0.0000 0.0369 640 05321$1 l 48 156,300 0.0171 0.1414 0.0000 0.0000 0.0368 641 0532137 & S5 S67,323 0.0720 0.0036 0.0000 0,0000 0.0367 642 0531841 6 18 664,052 0.0719 0,0036 0.0000 0,0000 0.0367 643 0532001 8 351 676,904 0.0717 0.0036 0.0000 0.0000 0.0366 644 D532112 8 1,009 3S8,073 0.0713 0.0036 0.0000 0.0000 0.0364 645 0542755 6 18 360,910 0 0712 0,0036 0.0000 0.0000 0.0363 646 D533668 6 122 362,580 0.0703 0.0036 0.0000 0.0000 0,0361 647 05?.1714 6 1,155 316,855 0.0489 0.0036 0.1071 0.0000 0.0359 648 D531003 12 20 99,677 0.0148 0.1414 0.0000 0.0000 0.0357 649 0531857 8 2, 519,767 0-069& 0.0036 0.0000 0,0000 0.0356 650 D531249 6 265 297,382 0.0391 0.0802 0.0000 0.0000 0,0356 651 053201° s - iJJs 54-1;3-10 f-e;069'1- - o:003ii 0.0000 0.0000 0,0356 652 D530902 8 279 629,655 00696 0.0036 D.0000 00000 0,0355 65?. 0531864 6 194 272,190 0.0297 0.0036 0.1971 0.0000 0.0353 654 0532175 8 251 586,755 0,0685 0.0036 0.0000 0.0000 0.0350 655 236
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Note · fipei with idential Collst~J.la!nce cf Failurt. Scores were prioritized accordinB to thetr flooding lhten.'iitre!i ,_ - ,m· ,,.._,
Floodl11t1 Impact Cateogiy Consequence
Oiarnew Length lnansity Health& Transp«Qtlon Symm offallurt Pipe ID (in) [ft) laall s,r.i\,, 9uslness o...-ns lmDactSwre 0531702 6 324 347,854 0.0468 0.0036 0.1071 0.00DO 0.0348 656 0532109 8 339 484,891 0.0680 0.0036 0.0000 0.0000 0.0347 657 0532009 8 350 680,558 0.0679 0.0036 0.0000 0.0000 0.0347 65S 0531952 8 62 509,116 0.0675 0.0036 0.0000 0.0000 0.0345 659 0533675 8 427 365,856 0.0670 0.0036 0.0000 0.0000 0.0341 660 T602878 4 10 536,220 0.0680 0.0D00 0.0000 0.0000 0 .0340 661 D531287 6 93 273,848 0.0661 0.0036 0.0000 0.0000 0.033S 662 0531858 8 20 482,741 0.0660 0.0036 0.0000 0.0000 0.0337 663 0532106 B 330 468,274 0.0660 0.0036 0.0000 0.0000 00337 664 0531375 8 313 546,083 0.0658 0.0036 0.0000 0.0000 0.0336 665 D531338 6 65 359,110 0.0656 0.0036 0.0000 0.0000 0.0335 666 0531273 6 409 391,409 0.0656 0.0036 0.0000 0.0000 0.0335 667 D531853 6 648 435,444 0.0656 0.0036 0.0000 0.0000 0.0335 668 D531364 6 430 413,018 0.0654 0,0036 0.0000 0.0000 0.0334 669 0531872 6 326 497,988 0.0651 0,0036 0.0000 0.0000 0,0333 670 D531883 6 533 486,720 0.0650 0.0036 0.0000 0.0000 0.03.32 671 D532196 8 1,007 436,170 0.0650 0.0036 0.0000 00000 0.0332 672 0S31348 6 139 496,026 0.0646 0.0036 0.0000 0.0000 0.0330 673 D5312.02 6 61 596,709 0.0646 0.0036 0.0000 0.0000 0.0330 674 0532014 8 296 543,391 0,0644 0.0036 0.0000 0.0000 0.0329 675 D531925 12 92. 729,467 0.0658 0,0000 0,0000 0.0000 0.0329 676 D531311 8 919 264.019 0.0334 0.0802 0.0000 0.0000 0.0327 677 os31no 8 8 420,968 0.0639 0.0036 0.0000 0.0000 0.0327 678 0531018 8 287 438,648 0.0638 0.0036 0.0000 0.0000 0.0326 679 0531577 6 321 341,744 0.0330 0.0802 0,0000 0.0000 0.0325 680 0531579 6 75 368,524 00328 0.0802 0.0000 0.0000 0.0325 681 D532107 8 12 412,200 o.0633 .0036 0.0000 0.0000 0.0324 682 0531302 6 161 232,605 0.0327 0.0802 0.0000 0.0000 0.0324 683 D531093 6 48 381,612 0631 0.0036 0.0000 0.0000 0,0323 684 0530952 6 345 311,648 0.032.1 00802 0.0008 0.0000 0.0322 685 D531840 6 1,280 300,878 0.0627 00036 0.0000 0.0000 0.0320 686 D531341 8 61 545,078 0.0626 0.0036 0.0000 0.0000 00320 687 0531712 8 240 450,795 0.0624 0.0036 0.0000 0.0000 o. 319 688 D532174 8 46 456,212. 0.0622 0.0036 0.0000 0.0000 0.0318 689 0531371 8 63 485,299 0,0620 0.0036 0.0000 0.000-0 0.0317 690 D531235 8 118 469,613 0.0618 0.0036 a.0000 0.0000 0.0316 691 05320i9 6 154 497,361 0.0617 0.0036 0.0000 0.0000 0.0316 692 D530948 8 224 433,643 0.0616 0.0036 00000 0,0000 O.D315 693 0531210 6 58 388,323 0.0616 0.0036 0.0000 0.0000 0.0315 694 D531920 8 61 738,539 0.0630 0.0000 0.0000 0.0000 O.o315 695 D531571 8 157 355,965 0.0615 0.0036 0.0000 0.0000 0.0315 696 0531855 8 243 469,379 0.0615 0.0036 0.0000 0.0000 0.0315 697 0532634 8 32 580,695 0.0614 0.0036 0.0000 o.aooo 0.0314 698 0531557 8 291 358,036 0.0612 0.0036 0.0000 0.0000 0.0313 699 0532036 6 33 469,583 0.0608 0.0036 0.0000 0.0000 0.0311 700 D531789 6 176 59.175 0.0606 0.0036 0,0000 0,0000 0.0310 701 0531228 6 500 296.445 0.0298 0.0802 0.0000 0.0000 0.0309 702 D530951 4 587 105,032 0.0287 o.oao2 0.0008 0.0000 0.0305 703 0531921 8 43 712,971 0.0609 0,0000 0.0000 0.0000 0.0304 704 0531880 6 357 421,867 0.0594 0.0036 0.0000 0.0000 0.0304 705 D531798 8 937 393,098 0.0594 0.0036 0.0000 0.0000 0.0304 706 0531165 6 869 350,268 0.0592 0-0036 0.0000 0.0000 0.0303 707 0531856 8 267 485,325 0.0589 0.0D36 0.0000 0 .0000 0.0301 708 D531209 6 194 346,834 0,0588 0.0036 0.0000 0.0000 0.0301 709 D531340 8 61 505,598 0.0587 0.0036 0.0000 0.0000 0.0301 710 0531237 6 22 559,731 0.0583 0.0036 0.0000 0.0000 0.0299 711 D531922 8 23 699,636 0.0597 0.0000 0.0000 0.0000 0.D299 712 0530943 4 583 78,071 0.0085 0.0802 0.0946 0.0000 0.0297 713 0532165 4 40 197,557 0.0274 0.0802 0.0000 0.0000 0,0297 714 0531342 8.3 481 485,145 0.0580 0.0036 0.0000 0.0000 0.0291 715 D530925 8 264 477,280 0.0580 0.0036 0.0000 0.0000 0.0297 716 D531292 6 401 239,745 0.0579 0.0036 O.D000 0.0000 00297 717 0533673 8 480 353,724 0.0578 0.0036 0.0000 I 0.0000 0.0296 718 D532034 6 240 430,610 0.0577 0.0036 0.0000 0.0000 0.0296 719 D531877 6 333 481,680 0,0577 0.0036 D.0000 0.0000 0.0296 720 0531161 6 228 427,188 0.0576 0.0036 0.0000 0.0000 0.0295 721 D531138 6 47 558,971 0.057S 0.0036 0.0000 0.0000 0.0295 722 0531909 6 1lll 238,230 0.0266 0.0802 0.0000 0,0000 0.0294 723 D531265 6 134 452.498 0.0572 0.0036 0.0000 0.0000 0.0293 724 D531263 6 437 364,931 0.0571 0.0036 0.0000 0.0000 0.0293 725 0531350 6 800 283,385 0.0571 0.0036 0.0000 0.0000 00293 726 053B31 6 127 289,315 0.0570 0.0036 0.0000 0.0000 0.0292 727 T600009 4 10 352,643 0.0583 0.0000 0.0000 0.0000 0.0191 728 237
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)
)
)
)
)
Note: Pipe:<. wit}i lderl(fi;::~I ConstHfUE!11(."'e cf F;1iaJre Sr;om were priorlt~d ccardinR to thtfr fluoc:Fng int•r1,~Jtres ........... ___ -
Ffclodlnr Impact Cati!Ogty
Diameter length Intensity Health& -~
Pipe ID fin). (ft) rcalJ Safetv TranspOl'tation 81jSiness D532115 6 395 135,885 0.0127 0.0036 0.0000
0531034 6 41 110,044 0.0125 0,0036 0.0000
D531053 , 6 439 85,774 0.0124 0.0036 0.0000
0544651 6 s 111,436 0.0123 0,0036 ; 0.0000
0530987 4 40 73,508 00123 0.0036 0.0000
D531964 4 184 122,626 0.0123 0.0036 00000
0531206 6 257 130,484 0.0121 0.0D36 0.0000
0531373 4 305 112,889 0.0117 0.0036 0.0000
OS31852 4 295 104,948 0.0117 0.0036 0.0000
0603112 8 g 100,695 0.0116 0.0036 0.0000
0603109 8 30 100,664 0.0116 , 00036 0.0000 I
0603115 8 65 100,527 0.0116 0.0036 0.0000
D539619 6 462 122,232 0.0112. 0.0036 0.0000
0531037 4 101 108,540 0.0121 0.0000 0.0000
0531248 4 160 102,356 0,0106 0.0036 00000
0531288 e; 766, 113.568 0.0106 0.0036[ 0.0000
0531135 3 ' 210 105.613 0.0103 0.0036 0.0000
0533075 4 107 92,174 0.0103 , 0.0036 0.0000
0532017 4 513 94,620 0.0100 0.0036 0.0000
D531224 4 227 88,118 0.0099 0.0036 0.0000
D530877 4 82 94,452 0.0095 0.0036 0.0000
D531137 4 239 99,294 00095 00036 0.0000
05311% 6 449 107,399 0.0094 0.0036 0.0000
D532114 4 120 96,743 0.0093 0.0036 0.0000
0531965 4 244 84,015 0.0091 0.0036 0.0000
0532019 4 501 85,468 0.0091 0.0036 ' 0.0000
0530878 4 155 81,751 0.0104 0.0000 0.0000
0531035 4 ;a 78,998 0.0088 0.0036 0.D0001
0531372 4 586 81,915 0.0087 0.0035 0.0000
0531327 4 234 79,970 0.0086 0.0036 0.0000
0531197 6 379 97,818 0.0085 0.0036 0.0000
0532108 4 207 86,607 0.0081 0.0036 0.0000
0531040 4 113 68,757 0.0077 0 ,0036 0.0000
0531309 4 30 82,391 0.0077 0.0035 0.0000
0531036 4 80 77,963 0.0087 0.0000 0.0000
0531041 4 144 64,552 0.0069 0.0036 0.0000
0531924 4 767 87,528 o,ooa1 0.0000 0 .0000
0531801 2 48 56,637 0.0052 0.0000 00000
0531308 2 128 13,188 0.0019 0.0036 0.0000
0531570 2 499 ll,40Q 0.0012 0.0036 0.0000
0531379 l 397 11.110 0.0010 0.0036 0.0000
..

Consequence
System of Failure
Opiltations I ,If pact Score

0.0000 0.0071 1021

0.0000 0.0070 1022

0.0000 0.0069 1023 ,

0.0000 0.0069 1024

0.0000 0.0069 102S
00000 0.0069 1026

0.0000 0.0068 102:i:

0.0000 0-0066 1028

0.0000 0.0066 1029

0.0000 0.0065 1030 I

0.0000 0.0065 1031

0.0000 0.0065 1032

0.0000 0.0063 1033

0.0000 0.0060 1034

0.0000 0.0060 103S
00000 0.0060 1036

0.0000 0.0059 ' 1037

0.0000 0.0059 1038

0.0000 D.0057 1039

0.0000 0.0057 1040

0.0000 0.0055 . 1041

0.0000 0.0055 1042
D.0000 0 ,0054 1043

0.0000 ' 0.0054 1044 1

0.0000 0.0053 1045

0.0000 0.0053 1046

0.0000 0.0052 1047
o.aoao 0.0051 1048

0.0000 0.0051 1049

0.0000 0.0050 1050

0.0000 0,0050 1051

0.0000 0.0048 1052
o.pooo 0.0046 1053

0.0000 0.0046 1054

0.0000 0.0043 1055

0.0000 0.0042 1056

0.0000 0.0040 1057

0.0000 0.0026 1058

0.0000 0.0016 1059

0.0000 0.0013 1060

0.0000 0.0012 1051
238
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EXHIBITD
Capital Improvement Plan
239
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Asset Class/
Location
Water Mains
Air Release, Vent,
& Blow Off Valves
Fire Hydrants
Line Valves
Total
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
894.900 'J 1100 0 6.500 888.300 a.oo o.:> 900 DO
oOO oOO a.oo a. 700 800 DO DO
s1,ooo 11 s1,~~o II s1,ooo II $1,400 n $3,400 II s1,100 II s2,100 II s2,100 II $3,100 $47,000 .J $18,800 $37,400 $22,400 $30,900
s1,ooo n $59,600 II $3,189,900 11 $483,600 ![ $47,600 - .. ···-· • i i 2,ioo ••• - • $62,i'oof ••• $47€i:o·oo $3,400 $8,500 1--c ::i c::1 $17,000 $3,400 $28,300 $93,800 ··s1i8,700 •• ··-·-----··1r $28,300 $3,400 $1,600 _ _.J - -~- .. . __ _____IL._~-~ -1 ssss,300 I I $411,200 II $41s,ooo II $371,ooo II $465,400 I! $695,700 $33,900 $11,000 L $15,400 II $2,500 $4s,ooo 11 $2,500
l ·--- .... s2s,3oo II $14,700
- .. ···-1-c ...... ·"·· ..... 11-· s2,200 n $5,700 I[ $600 II $76,300 II $600 1- - 7
s1,1s6,soo 11 s1,012,100 11 $416,400 11 s2,001,200 lf s116,4oo II s1,s49,100 11 s1,39s,600 11 ss,16s,soo 11 s2,142,soo II si,442,100 I 3 240
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Asset Class/ 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 Location
Water Mains
Air Release, Vent,
& Blow Off Valves ----------------
Fire Hydrants
Line Valves
Meters
Mann Station
Cristo Rey Storage
Tank
Mercedes Road
Station
Services
Flowering Pear
Well
Franco Court Well
lnterties
Total
s1,091,400 II s2,s11,100 H $866,200 II s1so,soo H s1,452,3oo H s2,242,100 II $452,100 H s1,140,400 H sss2,100 11 $755,ooo II $6: a --$2,400 I $5-,800 ~~i~ • s25,3oo] [2400
$3,400 H $2,700 II $21,000 H $3,700 H $85,800 ]I $700 H $1,000 H $1,000 H $1,000 I! $1,400 $25,i oo - s·11-0,900 ___ $20,700 ·- ---- --$44,600- - • s~io,2001 ··-- $7.5,SODJ- $9-;7oo] [- ··-$72,90o][ $14,Boi]I $29,800 $61,400 II ss10,iwJC s223,ooo H $248,900 H $84,100 11 $255,700 H $189,600 II $35,200 H $3,100 1- $19,400 $42,4oo1f -· -$52,200 - $31,800 $-1-81~600-- -- s·i 1,3oo] i $36,900 I[ sis3,600 Ii si 2,6ooJI $58,700 - ~ JI $932,300 11~ 300
$28,300 jiiiiiiiiiiiiiiiiiiiiiiiiiii-- r $3,400 II $28,300 ~l I! $17,000 l_::l[ $3,400 IL 27,700 $860,200 H $1,461,100] $469,900 H $316,900 II s1s1,200 11 s1,161,200 ll $408,900 ][ $744,500 H $457,700 H $842,100 $2,500 - $3,400 •
1 $2,500 IL $2,500.. -· -- ·1;-ss,2-oo 11 · -$65,0~~r - $2,500 $20,200 1 II II L__J H_
$60,i11 $4,000 n $600 ,_c $600 1
_ 1 $11,900 11 $93,200 11 $600 11 $3,600
-- • - - -- ------,~- - • - -- - ---·- --- ·-- -· -· • r-- •• ------. $67,800 $2,092,400 II $4,794,600 II $1,665,800 II $1,429,100 II $2,668,400 II $3,752,500 II $1,136,000 II $3,034,200 II $2,336,000 II $1,820,000 4 241
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EXHIBITE
Maintenance Plan
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✓ Measure source pump capacity in gallons per minute (GPM) to detect pump output problems.
✓ Calibrate pressure gauges and flow meters monitoring pump performance and capacity.

Storage Facilities
Weekly
✓ Check any warning lights or alarms - low water level, high water level, intrusion, power outage, etc. Correct issues or write work order for follow up corrective action. ✓ Check storage tank for signs of security breaches - damaged fences, open gates, graffiti, vandalism, etc. Report security violations.
✓ Check the overflow line, vents, ladder access locks, roof access hatches, and controls that are readily visible from the ground for damage, vandalism, or other conditions. Correct issues or write work order for follow up corrective action.
✓ Check storage tank and site after any adverse event (i.e., heavy rain, high wind, earthquake). Correct issues or write work order for follow up corrective action.

Monthly
✓ Check water level indicator and record information.
✓ Verify all openings are protected from surface runoff, windblown contaminants, insects, birds and animals. Correct issues or write work order for follow up corrective action. ✓ Check tank overflow lines for signs of damage, such as, screens, flapper valves, check valves, splash plate, etc. Correct issues or write work order for follow up corrective action. ✓ Check area for excessive vegetation or dangerous conditions - uncut grass, brush, dead trees, fire hazard, ponding water, etc. Correct issues or write work order for follow up corrective action.
✓ Check control valves for proper positions, open or closed. Reposition as needed. ✓ Check control valves for damage or leaks. Correct issues or write work order for follow up corrective action.
✓ Check earth embankments for erosion, burrowing animals, improper drainage, and leakage.

Annually
✓ Check storage tank structural, seismic, and sanitary integrity - leaks, corrosion, cracks, supports, warping, etc.
✓ Exercise valves and make repairs as needed.
✓ Document inspection and maintenance activity as part of the annual maintenance program. ✓ Evaluate stored water for clarity, sediments, floating materials or films, unusual odors, insects, birds or animals.
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Five Year Inspection
✓ Inspect storage tank interior for pitting, concrete spalling, rot, corrosion, rust, water level sensors, biofilrn build-up, etc.
✓ Inspect tank indicator every three years for steel storage tanks without corrosion protection or every five years for storage tanks other than steel without corrosion protection. ✓ Drain, inspect, clean, and disinfect storage tank or use a diving maintenance service without draining tank.
✓ Respond to any evidence of storage tank problems or deficiencies and report them. [ Instrumentation
Daily
✓ Perform corrective maintenance on any malfunctioning sensor loop.

Annual
✓ Calibrate each sensor loop and document results in work order. Write follow up work orders to correct each unresolvable sensor issue.
[ O&M Planning & Record Keeping
✓ Develop/update Water Master Plan and Water Rate Study every five years ✓ Develop an Asset Management Plan to manage risk and ensure financial capacity to deliver safe and reliable water. Report to City annually on progress in meeting objectives. ✓ Develop a five-year annual maintenance plan. Update annually. Report actual to planned accomplishment to City yearly.
✓ Maintain logs of water main and service line repairs. ✓ Maintain logs of safety equipment repairs.
✓ Maintain records of valve exercising programs and associated logs. ✓ Maintain employee training log.
✓ Maintain the customer complaint and system telephone threat checklist/logs. ✓ Review emergency response plans and update as needed. ✓ Review O&M manual and update as necessary.
✓ Consider installation of soft-startersNFDs for well submersible and system pressure pump motors.
✓ Consider installation of an EAMS/CMMS to manage assets and maintenance. ✓ Consider backup power at Mercedes, Flowering Pear, and Franco Stations. ✓ Consider solar power installation with battery at Cristo Rey Station. 244
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✓ Review the adequacy, reliability, and redundancy of the current pumping facilities and plan for improvements.
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EXHIBIT F
SCVWD Contract
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•. •
S -
.. llESOWTlOH tro. 540-8
,. ~t~otirt~oo or ~, ctn .cffl.rNcu. or THE c1n or wP&,"a'tlm Atrrtt()tt!tJfflV ~<m oc, r~cr B~EEM t.HE CU'Y ott
ouPtJi'.t~o . • ·Ami 't1m• • SMtrA . ct.AM Y:At.t;Ev ~A'f!ft .rrlisrucr trOR ' ••• •• • A.) $11'¥I.~ TREATED loii'l'.U •
, • ~~~~ thf! ,City:,of Ctlpertino c-µttenrly bas e ~tuec: to pttretl~ w.af!;,ef fr:~m .-the ~~•-t:t.ira. ·1alld_y ti:atf!r- District vhich was ;e,:neut:ed. .oa rf&~1;~/,~;~ « ¢~ ~1g1~1 ~ad - tbO
. , 'lii}l~. -t:ht lftt,~~ ·-Dl$t-tict ha~ JubtaiU:ed .a new eootra-et -to -th~ Ctt,·.1tl1if.'!h ,tbr:it'i:es Bild --~Utt., th:t?,O'l'l,g!ps.1 conti,-act 'lild incerpo,i--atas t;be_ --®-~ • . •nti •nd 1;i}li'$:i@!:si wh:t~t( Jmli':;. city bas r,equ Ued; :and .· •• • • -• ._ ·_•_ i-ff£R:EM~ the ii~r.,: ~(lil,ttt:Ji::t t s .1:n pror~r and suf{ict.eut for:ra amt is ~p- • tabi~ t<> the Ct•tf.'9.f :Cuf''.,\'E'tifio; • ----·- ·-· • l'itv'it• ilJ&RttOR.E, '5:E<lt ltESOVVE:D that the CHy ;Clerk and d1.e . Mayor be &nd . .a:r~. heJ'.'.aby aur;~rlt.~d. to ~Y..e.s::ttt:a said contn~t i-n behalf of the Citj of ~gt~tpq.. ' , ·:. • • • • •• • • •• PASSED 4.~:0 AIXI:PTEO at a t-~guiar meeting of the -City Co~:f.l of tlJe City of Ciapeft:~l'lo .::Id,$ . ipd ~iay -of ~e:t.f!!\her • 1980 by the . ~f():llowing VPt.~: .

NOES;
ADS£Nl' :
-il-Sl'Alth
AIT£S1' :

AP?-RO\'f.P:
/ 1d Barbara A, Roger&
Hayo-r. City of Cuperti~--o ----
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Ct.N'TllACT a:Erwm~N SANT A QLARA VALLEY WA T.EJ! mST.m-CT AND CJ:TY OF Ct;'Pm:tlN~
PORA SUPPLY Of TlitEA.TEP ~A'J'SR'
. . . .

THIS co NTRACT is nnoe and entiefed into or, Jenua:rr, • 21,. l ''l$1 - , ~t.:Well':n • tbeSANtACLAftA. VAi.LEY WATlE,R DJSTatcT.ftere;{Mffnr ref~ to - !fl)lr:trict". ·. a.ml Cf~ .. IJ'E <;U,S~ . . • . . . • . • • . • .·. • , · hereinafter·rdtrr-ed \Q M tieo.ntra~tor" ,md su~es pr-,evi-000 1Writer ~ee f"'Untt-acts • tte:tw~cn .Oi1trict ~ -contractor. · . •• . . • . •·
'MCltA.J,,$: . .• .. . .

A. Pi$trlcthnt .. ex~ut~~ «mtracts with. tile State of Onltf~ma J)epe:rtttl~nt of ¼\~e:tef Iruo.urees am1 ihe Uni'~ $!ates nu~ of R~la~ W~}' Omtriet .is ®d · : ,;1~.=~:~1.::~tf~~;~li!ti~«>Di~~~::t\~~~~::nst$eti~n .· .. ;~ntra!i~1~,,~~:~=~ti~!~!:~;=it:;;1:watN;::1° . •• · AG·itE~EN~'{ · l?or.~t-n ~~4et-~ti® &{. the mutual ,l:lr00):1~ ~d eo.v,enants tl:er~in, ®ntamed, ttHrt>'ifrties her-eto ttgtee •zw foilGWS:

AJ(TtCLE A. fN'fRODtJGTOit J P~OVISlONS •••

1. De.finitions- W-hen ·use<Hn this contr-a~t, .the f'OllQWmg: U1'.'ID$.sluµi hnv1; th~ meanings her-einafter' s,et fGirtbt · • • • · • . • • .• · · a) '')?i$.c.al ·b~~r11 slJ~U mellll ~aeh 12~mQt1th period d\it~g ~ term ~reof • ~m.nteneillg J_ul_y {ot one year.~ -- t~~n~ti.riKJune: 30 of the n~ s~ee~dlng yw; both dat~ fue1usj ve~ • • ••• •
b) "Ea.eh 1-~ontr1:.c.tor"., qr 1'0ther contra~w1' ~ sh-ail roettn any entity, public -0"' private, contraciii1g with District (or a supply of tmated water. •
c) Ttie "A~t-" shall mean the Santa Clara V~llcy WDter Oistri~1 Adt ~ - amended. d) "Boaron ahwl mean the Board of Directors of tt,e &nt~ C1lira Vall~y Water- Distrtet • .

2. Tenn of Contract
lCIC71 ..
a} This ·eontro.-et shall become effeet.i¥e o.n the-d'1te fir1;t ~bove w.riuen nf?d shaU retn-9.in in effect for a period of·yo Yf!'Uts or until ..,u to.6ns and an bo~, the pr(.)eetds of sttle of tlhich hev-e been used for Ul!" • -couiirtt•uot.ion of wat« treatin:&fit and -d#d;ribution f/leiti'ties ht1,re tx.-e-n retired. whjch~ver peri:Qd sha,ll be tonger, P,"'QVjded, hOW,:;;\'Ci', 'Uu1t in no ev-ent shalt the term of this ,..anuuet ·oe oe~mcd t<> extC'M be1°'2d the pt".ritld authorized by law~ • • •
1 ~~~~t\ftn~ .:: 't;. 4~\~-:Jt~~{~}.t •":: ,'__, ~- \ _. < .. ·-;;\!;· ~)~,r~~:;;Mf---;~~{:,~:i~ ,_: : :~ .. }-, 1~;-~ :·1 , --- ~,<'>\ ,~\~£ttJ::tf'·:~,i :f"! ::_._-~:;_~'"~:_~1--h\~J,_.:.~1;t.:, '-~rsi~;~;::t~·~ft'l~. 248 CC 07-16-2024
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b) The ttrtm of tbi$.,act «tliY~ ~d i<;r an ~d$tiMal term o£ years upon. ~ch t~m; ~dj:onditfons s tmiy be' s:ut ftit•tll fl: Q wrltte:r fl!P'eement ·of ttt-e :~de$ i'iere~ C?-X~~ aHe!l.St ~tttn {1~} mMU1s prior w~xpiraticm,¢ tn~wms -~-¢il•~..d tn_the:[)te<:edhttc. ~~U1.1n ~ .-n • su~~'®m~titta-Dbe-,i;,, ·t~eeuw!, thiS' • Ct;;ntrnet. $!:tall a!}:~~t~JtS:jp~:(jt,d l~(\$8'.i<l Stibs~,tttt ~ .W!le$.S Qt l~t om~ ye111 ptliii tQ saf?'t~-nti®tion date C<ltm'aetot mrdl ~Uy DiStrlcttn wilt}'~ -~ ~ttn.ctc>1> dest-r~to ·extendJl'I~ t't'tm. hereof; i-n,;uctfQVclit1 ~ ;tn<,n s.hall. be- e.~~qed t~r an ~cfij9rtal ,eriQO'. (1( tiv¥ .Y~t$ ~61fttt~ ®V~Jiliiltt; ~pem:cn~.~ ~tf cms .httcln ~taj,r1,~~. . ... ••. . • •
• , . ·_·· . 3~ .. su~c~r$ ~nd A~·• ·~oj~t ~t~ FWtsiCA~ <.f die s~J~~-d~ s1cti6n 4 l~reof, this co11trtet a,NH:iitr~·Jel'llS, eovehafrts, agtJet:nianu ~ ~tUQnfl1~rein oii{y 4 PMti:on:of. $he -~b~gaiJ.◊nlfQf .• tJ)is ·oonttset. Colltl"~tor $1),ail' rem~i:fli ~bUgat~tfor therema{nd~r~ or in the ev~t'C~n~etoi; shall &el~tt'iins'Cet1 or 4to1wey any ~n '°l' parts or1t$:'.Watrir syst~m to iuty «itttyr p~i;?Uc w p!'iv~te,·.Cont~ett1r n1ny-as~ to 1'.he • ••• ptircl1Bser thereof ~ portfon of C<>µtt~vtn rigtt~'priYileges an~ obHga.tions rnti-e'ura:le· and, in the e-venl Qf any suchassfgam-ent Oontractot shallec tclievedo(sueh poJ>tion of sw,h gblifJaUpns <>f Co.,,tr~tpr 5'> .~_-· JTtMd Jt, fo;lk!y,r.i;ng ~µ~ll sale~. tr4risfe,- qr COP!ey,&Jt~, DfstficLsh~ll comraenee. !O funush t:t·cated<lt'~t,er to $11~-entity, or Dllltt"jet ~ a .·• con~ract wltbsu~il .enti~y e~ngpr:i!,>t'to'suen Sll~, trtirlsr'er-0r eonveyattC{etner~es the· nmo-unt-o! treated watet 'deltver~ to s1,;1eh-~flttty .lti Qr4er ·!<.. . moot in part ,the • -·. • il!\c-re.a~d vtBter t.equir:etnetrt.s o.t •~ctf-iYitity r~iUtlPt from sueh sale; trOMte:r (}.r eon veyanet:!. • • • • • • • • ·. s. • ~\1just~ent .ofSeh~~;l~~cJ\~tes ~e?!}~Oilier. Water s~·viee to l>n>jeeted Se-rviee Ar~ta -1\111ere Cont1·acator has i,r~p.ared .f.1.1,(t $U~mitted a proposed water deliv<,ry sefi~?futEt tP ,Pistrlct for _~ ensulfirr tbree-y• p:erlQd. in ~ce~n(!e w.itt.t: /wti~e8.bereo.f in l'.EWlOU.bl~ '.,mticipntton cf,anc:t r.eU~we ~pon projected .water s~rvioo t>y, C'Alltrtlctm' to its f.'!~tlng or futW.'tl <ri.Jst.omers 1i1hQ:'.~!1:ive or wou-ld-~1n1,,e service within a>sc1.ivlee areti whleh shat! b.e de:rined and ~y'be ru;1~nrJed i'rQm ttm~ to Um~ .l)y Contru.(?lor and nit.a'.ehed heretQ, ~ -- E~hi9tt Ii.; and tl~~:s.-¢:hedule .has ~ ttJWtovcd a.nd ms.de l:>inding upon cpntmctor in .n:ctPN1an~ with Artlcle.- 8 ,hercl)f, ~d 1¥ller¢, in lieu of contract«,:any og:.¢.1l~Y. pt,1pUc or. priv:.ue sf:ltdl t:llru-~ittei- Pf"Oltide tre4't-ed water .ser,viee fo a,,y zneh custom-e,rs und ··Ute i?~stooee ·of such eitC:t;o.:nstanee an4 :the Aeeet~sity oI Co.ntr.~to-;r to red~ce Us deHveey)sf~hedolc bi,i'r:rg sbQ,wt, to Di.:triet and nek,1owleagoo by O!str'H .. '1. to be tacts (sl;lcl1 ucknuwl~gment to oo in no rose unrritl!KlfUlblJ w!lhbeld), tllctt CC!titractor'i ~atd dethr~y s~h.edul~ ~b~ at Us Qption h~ amendfJd p:Nroptly .in sue,h . maniler f.'IS. to r~dtiee Conttector•s schedUl«i iwit~ purchases from District trerounder by an ~mount fairly ®mm~urat-e w!~h such reduett9!) .of Ccmt-ractc!"s Mtictpated <>r pN:>jccled water ~e .. v;ee. • •
2 1 (iC31 Z
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-.:~:;~:a:·:~~a~;r:~:4:.;a~~r;;~= -. - thr~e--y~ar pene;d ~f~ Jt.tfy-1.-J ;Ugi t--oitojt~,,e_. .. ,_ ·_ -: ; ---• •_._-- _ p~p~ed .liitl~iiv~h~~~t~•s~rnltt~ <lii-f-;tl~~~~,~•
t1t:e Pt!i'l"dct .-.nd •hall :.J~~",,tbt!' s,~~~;s:-m"_ treat~ )Yat-110::~:?"d·f • __ i~=~.::~~:=nu. reqµes.t.an Jmo.unt or,-.t~· fQt)~l) f*ttr 'Wr.t~•~-~~• m tpml > . • and after.,00tmUltati.tm with. Conti:.i.\et~ Md Other ~ntri¢t~rs- • ·_- · _ , .. _ -reooivmg-"treated water''ffom ~~~~t, tllllllappr~y~ ·~~eh~~Ie6r make s•lleh rerlueti(}M thereln ~ -~ cimsis-tent with Dis.trl~tts ab:iHi~ ~:rJr~~~~iiCi~{ • every reasonable-etf'.ort io ~~~ :eo~h ~p~t)~ oeit,~rr ~d1Ue su1;>mitt~·oy·contr~eU)r-a~Othffl'~9m.r,aeton.. ~~P'.t.AA,prov~\1 -in Sqf:'s~cetii>n ,e of ttdi'gec-tI pn, • Dh>trief ~rees ,tlutf it will ~~nwe 1( delivery se.'le&ile f()r saJd e.osrung'.s~hedul~;peg!~ij wlli~11 wttt~>oo· less in total ~nount f<ll'- ~aehJ~ yenr--o.,f ~~,sntte<Jtd~ _p~ripd than 95 percent of the 11U:l.~:rrt~ fl;Elk?al y,s:ri~t forth in the tlt~~ ~l#r'l"eht - . • - sch'edu!t:t perl:od. _ , _ ~ ' • • -• : _ ·,· -· -- :_ ·- . :
c) Notwithstandh1g the Pf{>~$ltl~~fsu:bseeµtms ,ll nndb of thi~-~tw~. either Contrn~tor er Oisti'id IJ)ayreqq~t ttiat too mini.rn:wn:•iru)unt ot water for ea.et, fiseal y.~~ ~ ~ui• uu-,e-yenr 11ch~e -. • • perfoo be reduced to a l~er ~tllirtnlf:lf ,an~.unt thWJ pr~et.ibeid in _ - Subsecticns a mid ~ Upo.h writ,tei) 'tigre~nnmt by· t1Qih DJnt't;a~.or-and -Dis.trfot,. ~ed .cm .a :!l,howing of -~~or<iinary .~u•eurt1sW:ooasi tl1& clellvery sehedul~ l'!Ul1: :t1e:~~~1!~ at such l~ amount. . -· , . d) Tho approved d~ttvery ~b~le st~~.a be trtm ,1ni'tt~ to Contrne.for prior to December 31 of the YW in ~lileh the proposed .t:cliv,a-y schedttlc is ~1.lb.tnHt-ed. llle ,approved ddiv-m·y s'.?ttooute tor 'f''iieel • ytnrs Hl'lG~?'l Utrougt) l"~+-81 is St.'1 forth in Exhibt_l B1 .att,-cbed ·_ hereto and by this .reference made a part horeot. •
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. • Uus B¢~~<;J,l.<m ~~nd 9f ~tntetqr .:a:t rJtt~~ .ft:O\V. Yl 'lP.',,_ . . irlstMt~fleous ;tiutximu.R1 t'J~t r.ate ~¥aleilt to ;~ p~t bf tree th~(). ~t+~ifannual. ~lume'.$~~)l ()~ :the e{iptrJVfli}_";;i~u,;,~ ~~11u!e .e~p~ed u .• ;•iv.alent _'.l11M'QJ-1rl now ~te o-ve:rrtll~ '~-~tc~ fln . ••=1.:111: rat;<¼t,.nli\Y reQu~,mchrniw,t,Q.a.n'instsfl'tAneous :turiid~-~.v tat(;J' !4~i~l;;,~:l:.t~~%:!·:::~:~:Jit::~t~1~ ¢. ~ -_ •
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~ntruc,tal' t:r;\ 1si9 .perc®t_. of _- Uie :then.outt~t' •n~uru·_v~'ne ortmit • Contran:tor ~.,;; ~11 t11e '.~V~ 'WlttPI' -d.e-liVtty sehecblla ~p~ess-ed f1S. tJJI 1.lqtdvnt~t -mW·. ,?)r~te'(W~ the full ~ear. Pistdet 'filigi:ve • . ¢9nt,fl(,ttor r~·nil~ pr~~ .notice :or any $U.® prop.~ u~t •of • • - m~xilmtl1l f:lo-w r:<ilte. • • • • •

3. DeUvery Stru<1tur~
J OC312
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D) Watet deiiv~ tt> Contr6.ctt>~ pursw1nt to tbis ~racett·~iilloe • pr(ivided !f(lJJi _ l)~b•.iet f . eilit~~ ttlro>~J~i t!eli Vft")1 ~~etUl'Q$ t<). f;le loolit~ ~ .5:U~l?Oat~~ as may t,,e m-u,tmlly •~edupon. ·-$.i~. <1ei:,,:er:., $tntctlt(".('!$. mlall mi deaign~d a-r.rl ,®iutruet ed or ·euUS® to be eom;tr~,ed by District. ~f½P'! bnl1 !>id •ts sbnll be s•~etJ.o f avorah!e r~view n.nd appNval by !:he C".,ontructor pr lot' tQ ,a,. v~rd of t ttt' ' rtrrtGvnr:e - 251
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fie-SJftle ~town·~ · ~1'1f r; att~ebe<Sh~•~t(i:'Jmdt,. •. tM$ ~'~{!r.~~f~t~,~1.~f: .. . ·.~~ ~~tl 99:ti~~ttt,•
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·. 4;. • fylansurafll~l}t~:'W~ter zjeH~¢rrea·-- ·~J;l'j~t$'htajl_tn~$~~~ wnter • deµ.,~-red to. Oohti'l<C~~!:'. I {ind'•:,~ ::k~p· ,$:!t(l jn.£UH~i~ ffl!oe.tirat~ ~d: :e()fflpl-ete r,:eortjs· • thereof. f ~ :SU~U,p :r.pose, Qistr1~t Jbai~ lns~ ~r$te and J.t'li;µi1tain ilt nll 00.tivcry st.·oetur-es stJ<Ih m•.ttring c,le'ti~ {lnd e:guipment as. -~re lH.i-t,i$fll~J~ry ~; a.e¢~pt!iible to both pat·till:S. ·. . . . . . . . ·. . . . . .· . . . . . . . · · ' ~- .. ··•· : P,W!il;l!fl,rnen~ of :t)i;in~~ry Purh1~l M~tenn9~-P-~iodi.; J})~trJqt 11;H1 ~~~ an reasomhlc. eff91:tto:pr~vlt'.!~9~ntin~()US ~ 1·vic~ tfl ·eor.-tr~tw lm.t t111"Y-t~pi:H~!l£Uy.· .· dtsoontinue cir re.dubt-tJtte·o~U:v.ery '.Of ~cater fa boil~tor-t-0r t~,.pij:rp.hs~ of ~y investigatlon, l,tmi?9(!ii~jl~ m~int~ance, repair Ql't-~¢~mcnt ~tuiy (lf .l:he faciUiti~ • ne~,4ary for the 1'<tli ,,ery Q:t·t.:~~eJl rt.at.er t9 .Contract->r:. :Olsnict:Sl:iitllnctify . Ccntrttetor ~-f~· in• ad,;~~ ~s p_ossib,le t>f-ai,y. dfscnnti~an~ Of'~lietloo t,t!M ~~.· e$Umated • (luratkm <Jf ijur:ll 1~l1eatinnuan~e w ·reductloo~ lteoogiii~ t."IM Cqntmetcr • will -rely Oil Dit>lrI<:t:lQ£UrJtfi;et'l.1.i,pt~ <t,uverje$ ot~~t~Jlftrt'i-eµ!~ty d~ing ~ b.igh water· .etJ~ption:.mont~'ia~· $~~. District ~es• t¢ .ffiie lm,-~t eftw-~ throutJ)()Ut the term·-0f tflis<H>ntra~.t .. to :mttl<'e any· ff~ ('lisoontit~e¢or·re<hn;lion in. the ,~vecy of • water oo_fy :tludng t;trt ~Hod, t>fN;0v4mber through Nbttcb in _ilftJ fit,ctsfy~,u-. In the evelit of any dis-00ntit-ltlnnce 0ftf o.·. t-edtte<tip:n. ifl deliv~ of wate'i.'t {".;OAtraetof l'll~.Y elm~f to reooiv-e too am~t -ot-wa~ w~icl:\ otherwtse would l~\le Q~ deli~ tc tt ourit.g s.u(!:h pe,-iQd uti9er the~pp~¢d wat~~li\l~yschedule fQt.lh&t.1',iscaJ:~~iltoth(!F times durJttg such ye41•~ ®~stat¢ .. wl-th DJiti'i(tt's deli'!ery ability. ®:~tlg the then ®rrent d:eltvery s¢hooules of' ml Ott1«Co.titra.cwN<A • • • • • • • • • • • . . . .·· •. '••·: .,: . . • . ~ .. • . s~mefi::'!t0!1,;?~ ~t!;vie~. Ueon De,~ ~¥,lt - ln the. e~ent of :tn~ do(uul t by Ccntt·•e.tor m fi~ ~1tf1Mlc>J at~y l'floooy tCQt(1red ·tc- be p~-d t".'l Dt:Jtt~,et here1.u1dm-, Oistriiet may, ~ .»c-~ less tl1011 tft!"ee n:tonttts• written notice to po~traetot-, ~pend deU:veril".s o! wat,e.r «ndet' this conttnct for S¢-lo~g .ru:· su<?h def~ult slla;U continue, provu.Jed, how<Ne.r, .that -dttt·i,ng such period Contractor $.hAH rem~•~ ohJtg~too to mak~ an pnftncilt.s required ttndet• this cQntract ttnd PfWidt'Cl, further, that ~ch deii-nqu.c:nt ttmount sh1HI aceruc Jttter.est nt the rate 'Of one-half of one percent ~ month oommer,ci ng- on th~ s
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dt'f! Gate of such deHnquerst ~mount nrw ccm-tfoui~ until t~ t.ht1'prb'i¢il?al atno:unt :;r ~:1~ cll•:ct•,ges and the inte,~-st thereioo ure pnid tn f~l.. 'ISU~li $USt>"',J1Si~ni>! ~ lh•ety t~<:m pul'Suant to tltls Sec1.Iv11 6 :mall not rleprive (,)tsi.rlct of or· 1h,'J'lt tif:ll 'M1nea,:; provide4 t>y .. fh:i\\i, contriOet or t>Y Jr.uv for too recovery'()t'money <:lw or ~icbnray f)ecol?ffl ~ ~act U,is COOtr'ifl~t. ft; the event or My ~namtt¢twteh 01~--,i~ :md l')i~tr'lei a •t(l·· tht: amour;t ot any ttin rern.'lcred to Corili-uewr t,y 'OJ.stri-0t, win'#' ~ie(¾ $haU :no;t t,e • disew1tinU:Sd if the ·disput~,J a171ount tn~cof .ts placed Oi'l.~-with !)~tr:i~t.. 'Sf.itti . . d"y0$jt $~ ·Mt pr~Ch)-de revi,.nv t«ld atlj~m¢nt ul jny watet tJJU fl:$ S¢tlort:hin Arttcl;-e C1 SeetiQn D, ~r~t. • • • • . . . . . • 7, • • Wnt~r Qm,l&- fJistti'(el agrees that~• wat~rto bedelVeN:-!b,t~to · .. •.•·.•··· • Contrtwtot pu1•sut1rrt tt> tne t;ocmii: or tJus ~~r.1wt, wiff be m,r.e~ ,~ateble.j whol~~ .• pottml~ t~ hi:mlthf~.d t!tid that all $U¢h water will be pt ~qtin;lity toot. ttie JJpa,e lhaf . • beus.ed fer domestie puiyo.<;.e$ ntthepqfnt:5.()f .. deliv~'tbl!r~f:'to bt,~~et Mt~·.· fl.li'Uter treatment. IJl$tr,i,-.t.undet'Stands'mai r-,nu-~ ts ,,~:{i.Ub.liR:.·ufttlJy (~fl\~•·· . • water to if~ .eustom~ tor domestic put~ mt~ ;Jl(ft ~t(tt w :-~Jlt'li'\i~¢e ~yJ!',ltl-< .• .· .

C()n.t~-'¼~t~1' tff,r:eunde1· will t>ci d~~~l'~ tj',~~'it:lr'~:,~~~~~ .~#"~t,,v~ ... •• that Jb sy.stem·~1.oe e<mSli'ua,~ and~~~'tbe;~ .. •• •· . _:-4~~&ijfde., • • • . =~:=~~~~~-:J!w.~•:·i.e~~L • . pij~uant tc this contr~ct shall ct>ntor~ ui:c:b:e:~fy:l'e.qtdr¢i:11ent$'$~ ~ tnt~-U1~. ¢'WTcnt pd,nui.ry and ;secondat•y s,:~n~ds f:~l' ~meffit watet~ity nnd nmiuJ~, •. ••• retulatirimr ado?t~i!l by Hui CtiH!or~ Stat~ DC!\lllftm1¢f.lt !)iff~alUi, Sllould tl'le'.,Jieed . ~rise,. Dilitrkt s'ld Coi;tractor wm eoopetoat-e fully LA ~qj~tfq tbcir NIS~tive p~~ . t() t!w ~-!Xtmlt r~isc,o.abl:; predicable. and .prcviooo such adyu,t~,ts do ttot art~«t.~- Coritruet(S:rs, w aid the ('.('•ntractor in ®tt.i'o.i'.mlng- to sueh lai<J wittlbl the ContJ".a.¢ttirt:i;. • di.Str.ibutioo syst.em. • • • • • . .. . . • • • .· . . • • AR'i1CJ.,E C, . PAl'Ml~NT PUOYlSIONS . • . • . •
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1. The paymcnt1' to be made byCootra~tOf aridlta.nti Conti~~tor for deliv~r,· -of . treated water ,inu l)t? 11 pd,ec p~ m::re-foot bas~ uppn the pctdiug polie:,r t>dopt~-by 'the Board! ,.l:tted January a, 1971, as from tim!! tQ time amended,: llt"hi<m is se-t fotUdn: ••• • B:rMbit v, aHacht.~ hereto mid oy- this rafc,rm1<!c mad~ .n pa.rt hereof, and s,tmll be: the total oi the basle water l!lmrges and tr.P.ated·,,.a:ter. $W-.ebarg~ as detormm¢d by. U~ f).istricit Bo.urd for each peri~x:1 fQr whl9li & l'llt~ ~eh~®le is @Cf ~Uva • . . . . . •• . • . . .

2. · In determininf; the above clmi'ges, ~~ t;.,asi<: water charge sha.li be '6qtm! b ms.tric:l's grou1:td~11Ht~r ebf;u~ for wat-er other thu:o agfi.<Mtutal \'i-ltt~r {ss,i('j ""Ord$ · .. · "ogrieulttital water" h~int defin-ed hi the At?t) in ~ne W-i~ whieb shatl be ~terntliled • annun.Uy by th<" flnard iii aeeqr<:ltinee with ·vie legal p,1-ovi$iorn. nnd reijUiN11nents of the Act; provided. ho~ev~r, thnt dt.tting <;:neb l'.Alt~ perlO<I tin~ !)ist;riet will cpnsidcr eij • anticiplltt,.>d cm,L~ for f'.JH!fl such rate ,period ttµ() will 011d~vot to ,es~hfl d\actng: t;t.1~ 'fi~t ycnr of $Uch rate period u i;;·oundwatcr charg-P; that is intended h') rem~Jn eos.stantf« the fuU rrlte oet·iod. . · •. . · . · • •
J. Dl:itricL shall ct1arge for. ~he de.th•ery oC tr-('.JltP.d water in .at,corrnme4! with d,e rute ~cheduk for water Jer\lice ·~ $U(!.h r,.te $clledtd12 is est.«t>iished t>y lhe 81~~l'd The Hoard of Directors sJmU NView snid.rnte sct>.edule very 11,re{" yel\l-,,; to dsitenniue whether the !ii'hedule is in 11ceordnneee \Vith toe m<a$t r~-cent antl nntielpl'lte!J «>St~ ~oo 1·evenues of District. Acct,rdin-i,rl,t1 the B-01,rd SMU) ou Qr .Ji.bvut lhc $!'COM 'Tu~.sdft>' i n Mcrch 1 ~81, out 1◊t la Hit t hirn J\pr-il l5) Ht81, es',t1 lilish 11 r~l.e srehtmulc for the ~1,te period com m-'mcing July l. 1981 tfu'Ou~h June :m. 1984., and shn ll folio" s,,id prr>ee<furt~ l f>CJ 1 ~
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r()l" ettch. 1?0$llJtig tlti'~e-y~.u• period, Ea<!h mioo tate S4:!hedulJ: $btlll be ~Sf)OC'tiv.e jr; ¢~euon. but soon pil:'OVide [-or the f'CCCVCI'Y ·or e'lqlet'ldUures to~ re~vered bj the !Jdle wat~ char~ an<! the lr~fed w~tffl' sur~~•$1ring' tne p:mit-d$aid rates eu·e.·h!t cUeet 4111~ ~»i sh<1mg~ oi r<t~e for $aid ~rli~. tt,at m~ ~ be;m ~if!!\~ . dw'fng the p1eee6lng nte Pffl"i~ •. · -tt is:~ · th~t ·~ rate.s U; t;ie so· ~t-abJiiiL,s1 sJm.:U hol,ti:e Unfe&&~~l>t~ ffl' litJ•bltritryt zt.all ~~-.,pen 1•em..o~~ •Urfl't.t~ qt.~~ts $1'1 w~i~.-d~nv~i~ lritd ilba:Ull~ tne same !or~l()l" and Other COnkactors ~mJ.-.1,. • • cn~•~rs0!'1$1 ,~lie.« pN~11te~ w,raastnii~ted wnt.er ?wn_ Oistrict,. r~~~s ol · :t.be t:Oi~t~( ~f.tli,~ey of sµ¢lt Wlll~et' by ,Oi~ttfet; Dfstrhrt ~.t'ei .1.Q ·~ hs ~ t1f!1,,"1;s; ~~~ tll~ t~m Gt ·t~ls ~~t.u-i ~~trr~m OtMr ~ntr,tet~, ~ ~ &t~ .~~~ t".l tC{...'?i'ciafl~ Wi~h $U~· rate s~n~«-, the S.fipt'Ql}M:Jte ~.1J1lli\ or f ll(m~)f vn.ttio;ut .. dedu~tio:n or Mlset ~:ut<:tng w the ~p¢~iive ,am.oonis :or tre.at1:1d W$t~ @lhi'~ .b;; tiw ;!}tstr.i.<-tt~ . . . • •. ·• .· •. · . · . · •· .· • · .·· .• ... ·• • • • •• • ·. •. · · · • · · ··. . . , . . · •. .. . . : . . . • . . . _. . • . " • . ·.. , . • • • ' · .
·such dtUv~ln e>rcffl oi 911. 1ier<,'ttnt• flll• ~ d.:her year mi.l31 . f~ a~' tU· a .«-e!Jct tlii~M~ ytt1rijJ:n Bl¢h rate f(W·uiul~ ~l<id b'f ~tncn ·cr.mh"'ll~tor ~ved ~ '. ·tnan •··~ ~¢ent .of the treated. Wl'!t-C?i' .M sJ~wra ·?fi• tMapprb~d·dtaUv~r-y ~i:lle, and tr Contriutt-hl- has paitft.l')U~tttlt to sueti ffi1r-lUal mlrumuin ~p, for water n<>t -deU~ei'ed ·.~ .it,CCQ;tt~tor SnaU ti,1ve the r.igb:t to. r~l've su~hunde.J!Y~~d i.vater without ~ddft.i~ payment diiting the Ntmtdndet of th~ then cun•e:nt t-af<? soh:e<Lile ~rled at times. when Dist.rict h~ the· • delivery <!apnbUity provided fut·th~r, no;vever, th~t: • • • aJ
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lf in iiny -O~J or $l'lf year during thee ~l'fil ntt'OO(. IJisuiet~ for alljf reason~ hteltldil)g' ~ueed deliv~~ pursooot ~ the provision$ i.>t Art.iefo O hereof, shall b.e uns~(a to t.le'U ver t1•e4t~ watet" to Contrnctor in M. f:tl'fiO:Wlt cqwu to l/!tO <>f th~ tteu CUrN!?'lf montf1ly sei1eduled amount nsifet forthin Artiele St Section lfo) as expr~sed 88 a uniform dailtvolum.~,the then n,irumurn ehu.rg~ fQft~ .• ~J.r . sholl bt based. upon ruf,am®nt ot water es e:ttlauta:ted· abQve f.n Seetmi 4 rerluooo bY M arnoont ~ to th~ roouetion ooqt1ired 'i:J'} D1$U-l~t for ea.ch daf 0- r-edueoode.U.Verjl'is requir~d. ••• • . . . . • . lf in fUlY day of :any year :during tlle term her(!Of Di:.trfot shaU .offe:r to deliver to, Co11tr.&f!t(tr ,1atet which shall fail to meet the qu£.Wty rc-qulrements S:etfol"t'" in Article Bt :Section 71 hereof., then Cimtrocto:r shall have· the tight to r?fusc to nccepl or· reduee . delivme, .of water from District until such Urti c U}; sucll waier slwU m~et SQid qw1Uty .r~QUktmel\ts. ln sl;!Ch <went Contractor shell £mi1iediat-0!y noU!y l)i$(rfot, Md confirm ir: wrmng within !fdl~ q.f the beginnirm- uf an:, su.c~ ~j.od. ln nny 1n.1eb re~f the twn mtnimtnn cJrn;·ge shall t;,e reduc~ ·oy on amount equal to Ute volumJJ <>f wat.er redUeed by the Contract1>r vt:, to m1 .i:uiw m-t . ~sl to 1/30 of too ~ ~urrei.'i1 mon!Jdy scrre'd~ll'ld a~;,1J.nmt as set forth in Article e .• Section l(e), :ls ~Xi">f€~-,;e<l os ~ !mifo-rrn duily vohH? e for each tl..qy ttmt: water $e;!•~ice is s~> t'efus~ or ~t¾lut. ;-d by Um CQntraetor. Jf Ci,ntr"\etor at 7 J
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any Ume, or from time tc, -UmEI dming the t~m ber«>f-; ~ld tvtv~ the ri~t t<nduse fo. ~¢c~t _ WJ!tgr .fj,em Dfstt"il'1 :by reG.sOR of. the _ toi·ego:ng proyis-ions of thf,11 ~eetron 4b, bet ~~d ncv~1$ tail _ tq er.crciu -~h t•igh4sucJ1 :t~w-c ~ -tn ~ ·went_ tte· ~ed to waive or ti,~lt e~~ .or• t.ipt·t,y Con~. ~~t ttB :-i. f forth by Ute foregoing F<!"Vl$Jtm!iof tht$ ~~n· (y Ce~tract-cir.:iball. no:foe,obli~t~ to9'Y t<ii'il,:Y wtt<ll'-nata•ee¢pt~t., n. I(:c,;1iti,,m (;6'Hai~ bi tl\)S SM~O\l 4 ~~11 ln riny way be d~futid to 1~1t - Co11tnu~ter'_s ;t1b}tftt.~• ~ ,a,, f~_~ll WA't_ .. -~JP,~d t,, It_. from __ _ JJiKttict'in ll:~1d~e wj&_tbe epp~Mc~ -l"ate ~ f~ t:r~m lime to ·ume in Distri~tts tb~t.ippli~ r..t.t~ scn~e~ - • • -. ·_ - . . . . . . . .

J( hi any yeiir <hzrlng --~ • :( .. '."-1 ~t, •the· BOOJ'd ~ Dit<tet~ "f • tlf~triet 6fwJ1 by ll l$0lutj.i;)n t,1~ fn - f!eet a· ~~f -. ft.du,t~~~ ~ram £4iif&s~~ •· _ - _ __ S:,• ,-~wl!}!:-f,.Djstt-!-<?t~l ~~!1'l1,ri.~J~a~~daru:ctw1th~t.md a~~J , - p.rapt{ce.1 (fl~tJhe,agS7ega~ or,~ re~~•t®~lvei,~y lt ltl,,ey fm-ettl ~,-•_.-~,-•~ p~rwo, ,durlr,; trteJerm ll~1&Cfa}Jro.rn tbrf~~ . .6t. ~1:l.t~ -.~w to ~~etcir end Qthar Con,u-ne.to~, h)Jrotrt tne stJe ot row· water,,.-tJ!4~t;~ :aQ.UeeUon 4iii' the ~at-er·· c~ i'ff~rid, to fa Artiele-i ~et"~, --nas ~t.!eri~ Distrifri costs ~~.$et_~. $µ,et.f y¢ar, or rl!lte period, Distr.Uitshtdl r-etmn~dl~~ a-nd t'fi!Stt,t(,t~ $ill~t for , purdmtS<?$' ef raw wat~, eons~.u«ion, rrtnii,ten~tie -t/1' oper~tion of ~Ung -Qt additiQf!A! fscUiti'E!$ for tbe imp¢ttntion~ conse.rvatjQJ), treatment or wholesa:ic diatdbuttoo or watier, -- redu:~e i4',_ ~l'redUled prt'i<!e ot tr~~ wttte:t 01t,s1!l)Ject to- the ·pr:ovisl~ns,ol the Act, re~.~ Aid grpundtyter :elu,lrf~- It is t;t'dl?l"SlP~ tn~t Jlle¢ject. _in wrnp.utlr~ iatl?l$ Utltfor tMs co-ntr~et is t~ eov:er the ~~ -~ etoo to 'the lm,~mtfon,. C'QJ~B-1:icm; trentment or wn0'.1,~le distrU>ut!!'.:lnqf v,ater* • • • 6, Non--{;':o.nfrttc.f Water -- ~10 ter1n 11noh~11ttaf!t wnter'' refers tr> tredted watet< f0t,tnd,t<y"DistHct to be ~\1,dia'bt<tfor,i.icnver, to tne t-re&~ wttier ®ritfttclw::;_ifl ~t.tit!tJ-rt lo -t11e 1rehoouled ~mounts.•· • N~11--~1.1tfn~ watc-r- may be. ani.iab!t ool}•, 11t -wdl times ,tlnd $Ueh l,)l'lC-e$ ti$ dcterruiruw by tl1e l)ist:rl~ Ois:lriet will notit~ Ct>n~tor- in wr'i.ting tl):er@of. Pellverles ofni,,n~ntrAAt t Jer t~;> Contra~tcor wilt ~ ~¢ ~e.de aft~ Contraetor ha .. purellaSed 1 oo pereent Q:l t~ mQntbly sch~oo amount _tl! s,..t tQt~h ln A.r'tiel¢ :B, $¢<!tion 1{~).. Further~ at the end t>f ~1 !1$eli:l year an iidjti$1:D'l(!nt in bimng wiU be made ·and C-0ntroctor win l;)e required«> bilv~ pttid !or l&O {>-\"J'~ttt of the . . approved ~ti very 5Che4uled $1®htt less an, bt~ ~dJt.tstroc-.nts before th~ pu~ of no~nttaet wider i,; (.Uo,ve<t During' ~{)y pe.,r,i*d in -Whiell non-eontr4P,t water ilt uot availli!l'>le and contrsctot takes wat~r in ~CC$$ bf Jts ~heduled emou.11t. such w-tltet will l'li)t be r~;efa._,;tfi!lcd nntj wiU be ~1,ar:r,n'!d fer ct 1:he full oontraet prke, W,ater ttiktm in EiXC(!S~ of scbedul~4 ,Jil'IH11.mts durJn1f per:tods -~~-noll-t1'Qn-tract v.~kr is f!Qt a.vailabhr m&J be credited as n p~rt of Conttlu~tor.'S h\itlitntttrl ~Jl charge. 7,. aUHrigs - niUings shall t>,e, ln~de monthl-y M foJ'Jows: On en- about th~ fo·st of eac)i fnO!lth District win suod t.o-Cont:rae?for _a b:nt .eJ-l<ruloted in a~aa~ With the p1-ovi:;;ion~ of ArHole C hereof fot all tre~H.~ \Voter aeecptect by Contr~etor from District durin: the p.rec~~lng moritll. The fin-al ltiU for ~ch-fiscal year !,h~U iiwtvcle ~:; ~ st1rm.: d11~ far th mini1num churge r,iquirtl\d by Articli!! C, Sec-tion 4. hereof. msttit"t shnf\ m-ak~ 1 OC:J 12
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~~~ry ~tfqrt t!o). make i'F-'f Jircd m~tor rea<ffn~ Qn fhe .uu;t t:!ay ,of eaoi c-tii~ month, bl4t Pl$'trl<'!l ~ t1t t-.ntttle<i ~d m~ so.ch r~d~.tbl'~C?: day$· prior to Ute e!ose of eJ~Y stalemmr ~ .~ .· or ~'ittii1" nve ~~ &fttt aw be;lmtltlg qf'ru,;; oalenthir monOt. ·; · . . . • . ' .• . •• ...... . •~ ·.•· ·: Tfme mid~M~m,rd,~ :ft~q,i~t .. ~li~C(i~,fltl:lt·~ ffl$tre.b1 con~wto tl~tiht Witlti~ t1i~~1ttrl.~Y8':ift~ offiloo bV l)t&tt;hft Jn tita cw®t . lm4 contra~ tn • =rr•~~-;i,#~~~ .
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CITY OF CUPERTINO
Agenda Item
24-13271 Agenda Date: 7/16/2024
Agenda #: 1.

Subject: Receive the FY 2022-23 Annual Comprehensive Financial Report (ACFR) (Continued from July 9, 2024)
Receive the FY 2022-23 Annual Comprehensive Financial Report (ACFR) CITY OF CUPERTINO Page 1 of 1 Printed on 7/10/2024
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CITY COUNCIL STAFF REPORT
Meeting: July 16, 2024
Subject
Receive the FY 2022-23 Annual Comprehensive Financial Report (ACFR) Recommended Action
Receive the FY 2022-23 Annual Comprehensive Financial Report (ACFR) Reasons for Recommendation
Background
In June 2023, the City appointed The Pun Group LLP (TPG)as its new external auditors following a comprehensive selection process. This decision came after the City’s previous auditors, Crowe LLP, completed a five-year contract with an additional one-year extension, covering fiscal years 2016-17 to 2021-22. The selection process began with a Request for Proposal (RFP) issued in February 2023, which garnered seven proposals from various auditing firms. The proposals were evaluated based on technical qualifications by a subcommittee of the Audit Committee, including two audit committee members and City staff representatives, and the top three firms—Crowe LLP, Maze and Associates, and The Pun Group LLP—were interviewed.

TPG was ultimately selected due to their ability to provide a fresh perspective on the City’s financial reports, their innovative use of artificial intelligence for sample selection, and their workflow management software, which enhances audit tracking. The Pun Group has a strong track record with local municipalities and offers the necessary governmental auditing experience and technical capabilities to ensure timely and accurate audits and reports. The FY 2022-23 ACFR marks the first audit conducted by The Pun Group for the City.

Annual Comprehensive Financial Report
TPG audited the City’s accompanying financial statements as of and for the year ended June 30, 2023. During the audit, procedures were performed to obtain audit evidence regarding amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design appropriate audit 274
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procedures. Audit procedures are not designed to express an opinion on the effectiveness of the entity’s internal control.

TPG expressed an unmodified (or clean) opinion, stating “the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2023, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. (see FY 2022-23 ACFR, page 1).

TPG also issued an Independent Auditor’s Report on Internal Control Over Financial Reporting and Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards (GAGAS Report). The purpose of this report is solely to describe the scope of the auditor’s testing of internal control over financial reporting and the results of that testing and not to provide an opinion on the effectiveness of the entity’s internal control or compliance. The report disclosed no instances of noncompliance or other matters required to be reported under Government Auditing Standard.

The completion of the FY 2022-23 ACFR has taken longer than usual due to a three-month delay in the audit commencement following the RFP process and the inherent challenges of contracting with a new public accounting firm. While the ACFR structure and content have remained mainly the same, the following three key points contributed to the delay and are worth noting:
 Prior Period Adjustment: This adjustment records interest receivable from two housing development loans that were historically unrecorded, ensuring accurate financial reporting. Details are provided in Notes 3 and 14.  GASB 96 – Subscription-Based Information Technology Arrangements:

Effective FY 2022-23, this standard defines accounting and financial reporting guidelines for subscription-based IT arrangements, ensuring accurate reflection in the City's financial statements.
 GASB 77 – Tax Abatement Disclosures: Although effective since FY 2015-16, information on a tax-sharing agreement did not meet TPG’s standards. Additional language has now been proposed to meet reporting requirements, providing transparency about tax abatements and their effects on the City's revenue.

The financial section of the ACFR was presented to the City’s Audit Committee on June 24, 2024. Staff informed the Committee that the complete ACFR, including the Transmittal Letter, Management Discussion and Analysis (MD&A), and Statistical Section, would be emailed to them immediately, likely the following day. Any questions arising from the report will be answered and provided to the Council via a supplemental report. The 275
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Committee unanimously approved the report to be received and forwarded to the Council.

Revisions and Additional Information
Following the preparation and initial completion of the ACFR for the July 2, 2024, City Council meeting, staff made four additional changes to the ACFR as recommended by the Audit Committee. The following redlines reflect these changes:
- Page 5, seventh bullet point: The City’s change in net position was $28.2 million for governmental activities reflecting the continued positive experience in sales and property tax and modest departmental spending.
- Page 5, eighth bullet point: The City’s Net Pension Liability for June 30, 2022, (measurement date) was $55.8 million, increased by $21.8 million from June 30, 2021, or 64%. The Plan Fiduciary Net Position as a Percentage of the Total Pension Liability for the City’s pension plan with CalPERS maintained at decreased by 68%...
- Page 6, second bullet point: As of June 30, 2023, the City reported an increase in Net OPEB Liability of $7.9 million primarily due to the investment return being less than the service cost plus interest on Total OPEB Liability (TOL). The City’s actuarial valuation generated a Net OPEB Liability of $0.5 $0.6 million - Page 22, Capital Assets: At June 30, 2023, the City had $221 million, net of depreciation, invested in a broad range of capital assets used in governmental and business-type activities, as shown in Table 9 and in Note 6 to the Basic Financial Statements. This reflects the City’s continued investment into capital projects dedicated to street and transportation improvements, storm drain improvements, and maintenance of and improvements to City facilities, resulting in an increase in net capital assets of $4.2 $4.3 million, after depreciation and amortization.

Additionally, there were two questions posed by the City Council relating to the “legal deadline” requirements and the status of the FY 2023-24 audit. In California, there is no “legal deadline” for the ACFR. However, the GFOA’s Certificate of Achievement for Excellence in Financial Reporting deadline is December 31 following the end of a June 30 fiscal year unless an extension is filed, which the City has submitted. The City’s debt covenants require a draft by March 31, and the City has been working closely with its consultant to ensure compliance. Lastly, the FY 2023-24 audit is on schedule to be completed and presented to the Audit Committee in a special meeting in December.

Agreed-Upon-Procedures
The City of Cupertino engaged TPG to perform an Agreed-Upon-Procedures (AUP) on the City’s Appropriations Limit (GANN) Worksheet related to the City’s compliance with Section 1.5 of Article XIIIB of the California Constitution during the period ending June 30, 2022. City Council adopted Resolution 21-054, establishing an Appropriations Limit of $114,666,491 for FY 2021-22. The AUP is set to be completed and presented to Audit 276
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Committee on the next regularly scheduled meeting, July 22, 2024, and will be presented to Council thereafter
The City of Cupertino engaged TPG to perform an AUP on the 2019 Clean Water and Storm Protection Fee for the City of Cupertino. The AUP is set to be completed and presented to Audit Committee on the next regularly scheduled meeting, July 22, 2024, and will be presented to Council thereafter.

The City of Cupertino engaged TPG to perform an AUP on the City’s investment policy dated May 2022. The AUP is set to be completed and presented to Audit Committee on the next regularly scheduled meeting, July 22, 2024, and will be presented to Council thereafter.

Single Audit
Lastly, the City of Cupertino engaged TPG to perform a Single Audit on the City’s federally funded programs, including COVID-19 – American Rescue Plan Act of 2021 and Community Development Block Grant (CDBG), in accordance with GAAS, Government Auditing Standards, and requirements under Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. The audit is set to be completed and presented to Audit Committee on the next regularly scheduled meeting, July 22, 2024, and will be presented to Council thereafter.

Sustainability Impact
No sustainability impact.

Fiscal Impact
No fiscal impact.

California Environmental Quality
Not applicable.
_____________________________________
Prepared by: Jonathan Orozco, Finance Manager
Reviewed by: Kristina Alfaro, Director of Administrative Services Approved for Submission by: Pamela Wu, City Manager
Attachments:

A – FY 2022-23 ACFR
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CITY OF CUPERTINO, CALIFORNIA

ANNUAL COMPREHENSIVE

FINANCIAL REPORT

WITH REPORTS ON AUDIT

BY INDEPENDENT

CERTIFIED PUBLIC ACCOUNT ANTS

FOR THE YEAR ENDED
JUNE 30, 2023
Prepared by:

The City of Cupertino Administrative Services Department Finance Division
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City of Cupertino
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
Table of Contents
INTRODUCTORY SECTION (Unaudited)
Page
Letter of Transrn ittal ...................................................................................................................... .. .-............................. i City Council and Directory of City Officials .............................................................................................................. vii Organizational Chart .................................................................................................................................................. viii Commissions and Committees ..................................................................................................................................... ix GFOA Certificate of Achievement fo r Excellence in Financial Reporting .................................................................. x

FINANCIAL SECTION
Independent Auditors' Report on Financial Statements ............................................................................... .......... I Management's Discussion and Analysis (Required Supplementary Information) (Unaudited) ............... ....... ... 5 Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position .............................................................................................................................. 28 Statement of Activities ................................................................................................................................... 30 Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet .......................................................................................................................................... 34 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position ......................................................................... 37 Statement of Revenues, Expenditures, and
Changes in Fund Balances ................................................................................................................ 38 Reconc iliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities ...................................................................................................................... 40 Proprietary Fund Financial Statements:

Statement of Net Position ........................................................................................................................ 42 Statement of Revenues, Expenses, and Changes in Net Position ............................................................ 46 Statement of Cash Flows ......................................................................................................................... 48 Notes to the Basic Financial Statements ............................. .............................................................................. 57 282
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City of Cupertino
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
Table of Contents (Continued)
Page
FINANCIAL SECTION {Continued)
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule:

General Fund ................................................................................................................................................ I 03 Transportation Special Revenue Fund ......................................................................................................... I 04 Housing Development Special Revenue Fund ............................................................................................. 105 Notes to the Budgetary Comparison Schedules ................................................................................................ 107 Schedule of Changes in the Net Pension Liability and Relate</ Ratios- Last Ten Fiscal Years Agent Multiple Employer Defined Benefit Retirement Plan - Miscellaneous Plan ..................................... I 08 Schedule of Plan Contributions - Pension - Last Ten Fiscal Years Agent Multiple Employer Defined Benefit Retirement Plan - Miscellaneous Plan ..................................... 110 Schedule of Changes in the Net OPEB Liability and Related Ratios - Last Ten Fiscal Years Single Employer Defined Benefit Other Post Employment Benefit Plan .................................................... 112 Schedule of Plan Contributions - Other postemployment Benefits Single Employer Defined Benefit OPEB Plan ............................................................................................. 114 Supplementary Information:

Other than the General Fund and Special Revenue Funds ................... : ............................................................. 117 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual:

Public Facilities Corporation Debt Service Fund ......................................................................................... 11 9 Capital Improvement Projects Capital Projects Fund .................................................................................. 120 Nonmajor Governmental Funds:

Description ofNonmajor Governmental Funds ........................................................................................... 121 Combining Balance Sheet ............................................................................................................................ 122 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances .................................... 124 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual:

Storm Drain Improvement Special Revenue Fund ................................................................................ 126 Park Dedication Special Revenue Fund ................................................................................................ 127 Environmental Management/Clean Creeks Special Revenue Fund ............................. , ........................ 128 Traffic Impact Special Revenue Fund ................................................................................................... 129 Stevens Creek Corridor Park Capital Projects Fund .............................................................................. 130 Nonmajor Enterprise Funds:

Combining Statement of Net Position .......................................................................................................... 133 Combining Statement of Revenues, Expenses and Changes in Net Position .............................................. 134 Combining Statement of Cash Flows ........................................................................................................... 135 Internal Service Funds:

Combining Statement of Net Position .......................................................................................................... 138 Combining Statement of Revenues, Expenses, and Changes in Net Position ............................................. 140 Combining Statement of Cash Flows ........................................................................................................... 142 283
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City of Cupertino
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
Table of Contents (Continued)
STATISTICAL SECTION (Unaudited)
Description of Statistical Section Contents ............................................................................................................... 14 7 Financial Trends:

Net Position By Component - Last Ten Fiscal Years ............................................................................................ 148 Changes in Net Position - Last Ten Fiscal Years .................................................................................................. 150 Fund Balances of Governmental Funds - Last Ten Fiscal Years ........................................................................... 154 Changes in Fun·d Balances of Governmental Funds - Last Ten Fiscal Years ........................................................ 156 Revenue Capacity:

Assessed and Estimated Actual Value of Taxable Property - Last Five Fiscal Years .......................................... 159 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years .................................................................... 160 Princ ipal Property Taxpayers - Last Fiscal Year and Nine Fiscal Years Ago ...................................................... 162 Property Tax Levies, and Tax Collections - Last Ten Fiscal Years ...................................................................... 163 Debt Capacity:

Ratios of Outstanding Debt by Type - Last Ten Fiscal Years ............................................................................... 164 Direct and Overlapping Bonded Debt. ................................................................................................................... 165 Legal Debt Margin lnfonnation - Last Ten Fiscal Years ....................................................................................... 166 Ratio of General Bonded Debt Outstanding - Last Ten Fiscal Years .................................................................... 167 Demographic and Economic Information:

Demographic and Economic Statistics - Last Ten Fiscal Years ........................................................................... 168 2023 E1nployee Ranking ................................................................................................................ ........................ 169 Operating Information:

Full-Time Equivalent City Employees By Function/Program - Last Ten Fiscal Years ........................................ 171 Operating Indicators by Function / Program - Last Ten Fiscal Years ................................................................... 172 Capital Assets By Function - Last Ten Fiscal Years ............................................................................................. 174 Community Economic Profile ... ................................... .......................... ............................................. ................... 177 284
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CUPERTINO
July I, 2024

CITY OF CUPERTINO

CITY HALL
10300 TORRE AVENUE• CUPERTINO, CA 95014-3202
(408) 777-CITY • WWW.CUPERTINO ORG
To the Citizens of Cupertino, Honorable Mayor,
Members of the City Council, and City Manager:

It is our pleasure to submit the Annual Comprehensive Financial Report (ACFR) for the City of Cupertino (the City), California for the fiscal year ended June 30, 2023. The report is prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) set by the Governmental Accounting Standards Board (GASB). The report presents City information on an entity-wide basis and a more detailed fund-level basis. The fund-level reports emphasize the City's major fu nds. A Management Discussion and Analysis (MD&A) presents a comparative analysis of current and prior year results, changes in financial position, a comparison of actual versus budget, financial highlights, trends, and disclosure of any known significant events or decisions that affect the financial condition of the City. This transmittal letter is designed to complement the MD&A and should, therefore, be read in conjunction with it. The MD&A is required supplementary information and is found in the Financial Section of the ACFR.

The accuracy of the data presented and the completeness and fairness of the presentations, including all disclosures, are the responsibility of the management of the City. To provide a reasonable basis for making these representations, management has established a comprehensive internal control framework that is designed to protect the City's assets and provide sufficient, reliable infonnation for the proper preparation of these financial statements. We believe the data is accurate in all material respects and is presented in a manner that fairly sets forth the City's financial position. Fu11hermore, we believe that all disclosures necessary to enable the reader to gain an understanding of the City's financial activity have been included.

REPORTING ENTITY
This ACFR includes all component units and funds of the City. It reports all activities for which the City is considered to be financially accountable. The general governmental funds suppo11 a full range of services, including law enforcement, community development, recreation, public works, public and environmental affairs, and general administration. Enterprise funds account for recreation and solid waste operations supported by user fees. This financial report incorporates data for the City of Cuper1ino and its component unit, the Cupertino Public Facilities Corporation.

The City operates under a Council-City Manager form of government. There are five council members, including the Mayor, who serve staggered four-year terms. The City Council appoints the City Manager who is responsible for the daily administration of City affairs. The City Council also appoints the City Attorney. The Director of Administrative Services shall also be appointed Treasurer per the Cupertino Municipal Code 2.48.020. All other employees are appointed by the City Manager. 286
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ECONOMIC CONDITIONS
The City of Cupe1tino is located in Santa Ciara County at the southern end of the San Francisco Bay Peninsula. The City is comprised of 13-square miles and is bordered by the cities of San Jose, Sacatoga, Sunnyvale, Santa Clara, and Los Altos. It has a residential population of 59,47 1 (California Department of Finance, January 2024).

Situated at the west end of Sil icon Valley, Cupertino has earned the reputation of a balanced community with a healthy climate for business and well-maintained residential neighborhoods, community parks and public faci lities. The excellent reputation ofCupe1tino's schools is a major attraction for families wishing to settle in close proximity to high paying jobs in Silicon Valley. The City recognizes the importance of quality school facilities and programs to all Cuperti no residents, and works in partnership with the schools in many programs affecting education and youth. National surveys rank the City high in education levels, average household incomes, and registered patent numbers, as well as one of the best cities in which to live and raise a fami ly.

Because Cupertino is a mature, 93% built-out city, the City of Cupertino focuses on business retention and revitalization. Cupertino is world renowned as the home of high-tech giants, such as Apple, Inc., and as a community with stellar public schools. De Anza College, one of the largest single-campus community colleges in the country, is another major employer and a magnet for attracting local and international students. The City's proactive economic development effo1ts have resulted in an innovative environment for start-ups and growing companies to tlu·ive. The City strives to retain and attract local companies through active outreach and a responsive and customer-oriented entitlement process. The City is excited to have a number of new mixed-use development projects offering more retai 1 and dining options, as well as provide additional housing oppo1tunities to meet the needs of the growing community.

According to the 2022-2023 Assessor's Annual Report for Santa Clara County, Cupertino's net assessment roll growth increased by nearly $2,084 million, or 7.2%, from the prior year. Residential use values increased 7.2% a total of $1 ,260 million and represented 61.1 % of all growth experienced in the City.

Commercial prope1ties posted an increase of $1 ,066 mi II ion, or 13. I%, due to the movement of assets from the unsecured to the secure roll. The industrial properties repo1ted growth of $280 mill ion, or 24. 7%, on the strength of parcels adding improvement values between tax years or tenants at these sites adding fixtures and business assets. Unsecured assets in Cupe1tino decreased by $655.million, or 38% due to the movement of assets from the unsecured to the secured roll, which contributed to the large growth seen in the commercial use category.

The City of Cupertino has experienced significant fluctuations in sales tax revenues over the past several fiscal years. In FY 2018- 19, the City received $24.9 million in sales tax revenue. This amount increased substantially in FY 2019-20 to $35.7 million, and frnther to $42.6 million in FY 2020-21. During FY 202 1- 22, the sales tax revenue slightly decreased to $42.2 million. In FY 2022-23, sales tax revenue has decreased to $34.8 million, to a pre-pandemic level, driven by a return to in-person purchases.

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$45,000
$40,000
$35,000
$30,000
$25,000
$20,000
$15,000
$ 10,000
$5,000
$-
20 14 20 15
Sales Tax ($ in thousands)
2016 2017 2018 20 19 2020 202 1 2022 2023
The increase in sales tax revenue during FY 2020-2 1 and FY 2021 -22 can be attributed to strong growth in two major industry groups: Business and Industry, and State & County Pools. These groups experienced the greatest growth during the pandemic. However, in the current fiscal year, these groups have returned to FY 2019-20 levels. Other industry groups have shown modest but constant growth over the years, contributing to the City's diversified economic base.

Sales taxes are comprised of eight maj or industry groups: Business and Industry, State & County Pools, Restaurants and Hotels, General Consumer Goods, Fuel and Service Stations, Food and Drugs, Building and Construction, and Autos and Transpo11ation. For FY 2022-23, the composition of sales tax revenue received from these groups is as follows: Business and Industry (7 1.6%), State & County Pools ( 19.3%), Restaurants and Hotels (4.1%), General Consumer Goods (2.5%), Fuel and Service Stations (1.2%), Food and Drugs (0.8%), Building and Construction (0.4%), and Autos and Transportation (0.1 %).

With the economic recovery and easing of credit, commercial development activity picked up considerably in 2012-13 and 2013-14 led by plan reviews of the new Apple Campus 2. Plans for the redevelopment of the Marina shopping center into a mixed-use project, Marina Plaza, was approved in 2016. This project will inc lude 23,000 sq. ft. of retail and restaurant use, a 122-room boutique hotel, and 188 residential units including 16 below market rate units. Construction of a five story, 148-room Hyatt House hotel was completed in April 2019 and includes a full-service restaurant and meeting rooms. Through the City's new General Plan Amendment (GPA) Authorization Process applications for two development projects were authori zed by City Council during FY 20 19-20 with the De Anza Hotel and the Cupe11ino Village Hotel.

The City's pension and retiree medical (also referred to as OPEB, Other Post-Employment Benefits) unfunded ach1arial accrued liabilities are discussed in the Notes to the Basic Financial Statements. The City must pay CalPERS, the state's government pension system, annua lly to reduce its long-term liability for pensions. Cupe11ino's Cal PERS actuarial valuation repo11 as of June 30, 2022 repo11ed a pension unfunded accrued liability of $41.3 million with annua l payments to Cal PERS of 32.75% and 32.81 % of projected payroll for 2023-24 and 2024-25, respectively, with ongoing decreases after that. Ca!PERS' strong performance in FY 2020-21 with a return of 2 1.3%,triggered a reduction in the discount rate from 7% to

6.9%, leading to a greater unfunded liability for all agencies and increased norm~! costs and mandatory annual contributions. To address long-term rising costs, Cupertino and state law · has reduced pension benefits for new hires and increased employee contributions. As of the June 30, 2023, the City has a Net OPEB Liability of $0.5 million with annual payments to a retiree health plan trust at 2. 1 % of payroll. The fundi ng status changed from over-funded to a liability due to negative year-over-year market conditions and change in demographic assumptions.
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In addition to the City's Section 115 OPEB Investment Trust established in 20 I 0, in FY 2017-1 8, the City Council approved the establishment of a Section 115 trust as patt of a pension rate stabilization program.

An initial investment of$8 million was made in FY 2018-1 9, with additional contributions of$4 million in FY 20 I 9-20, $2 million in FY 2020-21 , and $2 million in FY 2021-22. In FY 2022-23 instead of contributing additional funds to the trust, the Council authori zed the use of trust funds to cover direct OPEB costs amounting to $1 ,385,359 to assist the City in balancing a projected deficit due to a potential loss of sales tax revenue due to the California Depa1tment of Tax and Fee Administration (CDTFA) Audit of one the City's sales taxpayers.

Because the City contracts out police services to the County Sheriff and because fire protection is handled by a special district, the City avoids the high pension, capital, and operating costs of a City-operated public safety function. The City caps its contributions to employee health insurance premiums that benefit both the City and employees. A build-up of operating reserves from strong revenue years, such as 2013-14, a long with a traditional under-spending of budgets, enables the City to withstand weak revenue years that occur periodically, such as in FY 2009-1 0.

On March I I, 2021, the American Rescue Plan Act (ARP) of 2021 was signed into law and established the Coronavirus State Recovery Fund and Coronavirus Local Fiscal Recovery Funds, which together make up the Coronavirus State and Local Fiscal Recover Funds ("SLFRF").

The ARP is a $1.9 trillion economic stimulus bill. Within the ARP, the Coronavirus Local Fiscal Recovery Fund provided $350 billion for states, municipalities, counties, tribes, and territories, including $130 billion for local governments split evenly between municipalities and counties. California cities are expected to receive more than $7 billion dollars in much needed assistance to help offset the billions of dollars in revenue sho1tfalls due to the shutdown of local economies and the billions spent protecting public health, delivering essential services, protecting vulnerable populations, and helping small businesses survive during the pandemic.

The City received two payments totaling $9,694,773 in SLFRF funding, with the first payment received in May 2021 in the amount of$4,847,386.50 and the second payment in May 2022. The City may use SLFRF funds to cover these eligible costs incurred during the period that begins on March 3, 2021 and ends on December 31, 2024, as long as the award funds for the obligations incurred by December 31 , 2024 are spent by December 3 I, 2026.

On September 7, 202 I, the Cupe1tino City Council approved a plan which allocated the ARP funding towards revenue loss which was estimated at approximately $29 million. Additionally, the $9.7 million in total ARP fundi ng was approved to be spent on general government services in the General Fund, specifically, City Work Program and special project items. The City subsequently submitted compliance repotting allocating $3,594,028 and $6, I 00,745 for fiscal year 202 1-22 and 2022-23, respectively, fu lly repo1ting allocated funds to offset revenue losses in transient occupancy taxes.

ECONOMIC INITIATIVES
With the expanded Apple presence, the City's revenue base will remain concentrated among its top companies and top economic sector, the volatile business-to-business area. Past recessions and the historic departure of a major tax provider, Hewlett-Packard, demonstrates the need for diversification of the City's revenue base and a long-term balance of revenues and expenditures. The City desires other revenues to mitigate the fluctuating nature of sales taxes, transient occupancy (hotel) taxes, user fees, and state grabs of local taxes in times of budget distress.
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.COVID-19 has had significant adverse impacts on the City's transient occupancy taxes, charges for services, and is sure to have long.lasting impacts on its sales tax. While the City's revenues remained strong in FY 2019-20 and are currently on pace with projections in FY 2020-21, the City's strong, untapped reserves afford the City to coi1tinue actively mitigating the impacts of the pandemic on the community.

Efforts to reduce operating costs, _additional allocations for tenants at risk of eviction and homeless assistance, public facility and· area sanitation enhancements, and small business grant assistance are all examples in FY 20 19-20 and FY 2020-21 of the City's on-going ability and commitment to overcome these challenges.

ACCOUNTING AND BUDGET ARY CONTROL
In developing and evaluating the City's accounting system, consideration is given to the adequacy of internal accounting controls. The City's controls are designed to provide reasonable, but not absolute, assurance regarding the safeguarding of assets against losses from unauthorized use or disposition and the reliability of financ ial records for preparing financial statements and maintaining accountability of assets.

The concept of reasonable assurance recognizes that the costs of a control should not exceed the benefits li kely to be derived and that the evaluation of costs and benefits requires estimates and judgments by management.

The City's budget is a detailed operating plan that identifies estimated costs and results in relation to estimated revenues. The budget includes 1) the programs, projects, services and activities to be provided during the fiscal year; 2) estimated revenue and fund balance available to fi nance the operating plan; and 3) the estimated spending requirements of the operating plan. The budget represents a process through which policy decisions are made, implemented and controlled.

INDEPENDENT AUDIT
City ordinance requires an annual audit of the financial records by an independent certified public accounting firm selected by the City Council and its audit committee. The Pun Group LLP audited the City's Basic Financial Statements, and their opinion thereon is included in the Financial Section of this report.

FRAUD INVESTIGATION
On September 5, 2018, former City of Cupertino employee Jennifer "Yuen-Cheng" Chang, Senior Accountant, was arrested by the Santa Clara County Sheriff's Office for embezzling $79 I ,494 in public funds through fraudulent checks between 2000 and 2014. The scheme ended in September 20 I 4 with the implementation of an upgraded financial system that tightened internal controls. Ms. Chang retired in July 20 15.

The fraudulent checks were discovered in early 2018 during a detailed review of several accounts after the new financial system was implemented. These checks, debited against a liability account, were suspicious due to their nature, size, and lack of supporting documentation.

In 2018, the Santa Clara County Sheriff's Office submitted its case to the District Attorney's Office, resulting in 68 criminal charges against Ms. Chang. At a Preliminary Hearing on December 10, 2019, Judge Pennypacker ruled that Ms. Chang would stand trial on 53 felony counts. In December 202 1, Ms. Chang pied gu ilty to three fe lony counts ·and paid $612,000 in criminal restitution to the City on January 31 , 2022.

The City is pursuing civil remedies to recover the fu ll amount embezzled, interest, and investigation costs.

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The City has since strengthened internal controls, hired additional accounting staff to enhance segregation of duties, and approved the implementation of an internal audit function in FY 2019-20. Additionally, Moss Adams, LLP was engaged as the City's internal auditor.

CERTIFICATE OF ACHIEVEMENT
The Government Finance Officers Association of the United States and Canada (GFO/\) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Cupe1tino for its ACFR for the year ended June 30, 2022. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized ACFR. This repo1t must satisfy both GAAP and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe that the current report continues to meet the Certificate of Achievement Program's requirements.

ACKNOWLEDGMENTS
I would like to express my appreciation to City employees, depaitment heads, the City Manager, members of the Audit Committee, and members of City Council for their interest in conducting the financial operations of the City in a responsible manner. Special thanks go to, Jonathan Orozco, Zeng Wang, Min Zhao, Jumaini Judoprasetijo, Vi Tran, and Amber Chang of the Finance staff for their continued support and dedication. Special recognition to Betli Viajar, Richard Wong, Giang Dinh, and Janet Liang for their efforts in the preparation and production of this repo,t. ~;:·~~
Kristina Alfaro
Director of Administrative Services
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Directory of City Officials
City Council
Hung Wei
Mayor
Sheila Mohan
Vice Mayor
Liang Chao
Council Member
J.R. Fruen
Cou11cil Member
Directory of City Officials
Pamela Wu - City Manager
Matt Morley - Assistant City Manager
Christopher Jensen - City Attorney
Tina Kapoor - Deputy City Manager
Kristina Alfaro - Director of Administrative Services
Ben Fu - Director of Community Development
Chad Mosley - Director of Public Works
Rachelle Sander - Director of Parks and Recreation
Bill Mitchell - Chief Technology Officer
Vil
Kitty Moore
Council Member
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City Organizational Chart
Law Enforcement
:santa Clara Count,,
Sheriffs- Contract)
Citizens of
Cupertino
City Attorney City Manager
Economic
Development
Administrative
Services•
finance
(Accounting, 1
urchasing, Budget1
Community
Development
Building
Planning
Icade Enforcement!
Housing
Recreation and
Education
*The City Treasurer is the Director of Administrative Services Sustainability
Programs I
Commun1tyOutrr:ach
and Neiehborhood
watch
Public Works
Development
Services
Environmental
Programs
Capital
Improvement
Program
Transportation
I Facilities and Fleeti
City Clerk Office of
Communications
Innovation and
Technology
Infrastructure GIS
Multimedia Applications
Trees and ROW Streets Grounds
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CITY OF CUPERTINO, CALIFORNIA
Fiscal Year 2022-2023

COMMISSIONS AND COMMITTEES

ARTS AND CULTURE

COMMISSION
Carol Maa
Dana Ford
David Wang
Kiran Varsshneya Rohra
Vacant

AUDIT COMMITTEE
Angela Chen
Sheila Mohan
J.R. Fruen
Sophie Song
Laura Hammer

BICYCLE PEDESTRIAN

COMMISSION
Herve Marcy
Grace John
Joel Wolf
John Zhao
Ilango Ganga

HOUSING COMMISSION
Govind Tatachari
Tessa Parish
Sue Bose
Connie Cunningham
Angan Das

LIBRARY COMMISSION
Archana Panda
Janki Chokshi
Liyan Zhao
Sheefa Sreekanth
Qin Pan

PARKS AND RECREATION

COMMISSION
Carol Stanek
Hemant Buch
Jennifer Shearin
Seema Swamy
Sashikala Begur

PLANNING COMMISSION
Tejesh Mistry
David Fung
Seema Lindskog
Muni Madhdhipatla
Steven Scharf

PUBLIC SAFETY COMMISSION
Eric Shan
Rohan Pandit
Lakshminarasimha Ankireddipally
Tiffany Wang
Bobby Toda
IX

SUSTAINABILITY

COMMISSION
Anna Weber
Sonali Padgaonkar
Meera Ramanathan
Steve Poon
Vignesh Swaminathan

TEEN COMMISSION
Rachael Ding
Geethikaa Tarra
Andrew Qin
Joyce Cheung
Dhruti Halambi
Elspeth Luu
Pranav Gupta
Rayna Shah
Sudisha Kumar
Adhya Kasamsetty

TECHNOLOGY, INFORMATION
& COMMUNICATIONS

COMMISSION
Eliza Du
Mukesh Garg
Emma Shearin
Rajaram Soundararajan
Prabir Mohanty
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G <3)
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Cupertino
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2022
~P-~
Executive Director/CEO
X
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INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and the Members of the City Council of the City of Cupertino
Cupertino, California
Report on the Audit of the Financial Statements
Opinions
200 E. Sandpolnte
Santa Ana,
Avenue,
California
Suite
92707
600 \?ia ~
www.pungroup.cpa ~
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Cupertino, California (the "City") as of and for the year ended June 30, 2023, and the related notes to the basic financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2023, and the respective changes in financ ial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our repo11. We are required to be independent of the City and to meet our other ethical 1·esponsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Other Matters
Change in Accounting Principle - Implementation of GASB 96 As discussed in Note 1 to the basic fi nancial statements, the City adopted new accounting guidance, Governmental Accounting Standards Board ("GASB") Statement No. 96, Subscription-based Information Technology Arrangements. Our opinion is not modified with respect to this matter ..

Prior Period Adjustments
As discussed in the Note 14 to the basic financial statements, the City also recorded prior period adjustment in the governmental activities in the amount of $1 ,562,736 due to correction of recording loans related interest receivable.

The City also recorded prior period adjustments in the General Fund and the Housing Development Special Revenue Fund in the amount of $509,278 and $4,725,458, respectively, due to correction of recording loans related interest receivable and the restatement of unavai I able revenue related to the loans receivable to the fund balance.

ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 296
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To the Honorable Mayor and the Members of the City Council of the City of Cupertino
Cupertino, California

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Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financ ial staten;ients in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditors' Responsibilitiesfor the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would infl uence the judgment made by a reasonable user based on the fi nancial statements.

In performing an audit in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the fi nancial statements.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressi ng an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed.

Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the fi nancial statements.

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
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To the Honorable Mayor and the Members of the City Council of the City of Cupertino
Cupertino, California

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Required Supplementary Information
Accounting principles generally accepted in the United States of America require that Management's Discussion and Analysis, the Budgetary Comparison Schedules - General Fund and Major Special Revenue Funds, the Schedule of Changes in Net Pension Liability and Related Ratios, the Schedules of Contributions - Pensions, the Schedules of Changes in Net Other Postemployment Benefits Liability and Related Ratios, and the Schedules of Contributions - Other Postemployment Benefits as listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the I imited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The accompanying combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the a1mual report. The other information comprises the Introductory Section and the Statistical Section are presented for purposes of additional analysis and are not a required part of the basic financial statements. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financi al statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 3 298
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To the Honorable Mayor and the Members of the City Council of the City of Cupertino
Cupertino, California

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Other Reporting Required by Govemment Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated July I, 2024, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely . to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. -pu- ~ ~ / L-'f
Santa Ana, California
July 1, 2024
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CITY OF CUPERTINO
Management's Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
This section describes the City of Cupertino's (the "City") fin.ancial performance for the year. Readers are encouraged to consider the following information in conjunction with the accompanying Transmittal Letter and Basic Financial Statements.
2022-23 FINANCIAL HIGHLIGHTS
• In December 202 1, the California Department of Tax and Fee Administration (CDTFA) infonned the City that an audit would be conducted on one of the City's major sales taxpayers. While the full impact of the audit was not known at that time, the City ceased its large annual transfers of excess unassigned fund balance to the Capita l Reserve Fund. In March 2023, the CDTF A verbally notified the City of its preliminary determination that tax dollars had been misallocated to the City, resulting in an adverse outcome for the City. In October 2023, the City formally received the results of the audit and took many steps to mitigate the impact which are discussed in the City's FY 2023-24 and FY 2024-25 Adopted Budgets. The City is currently appealing the decision by the CDTF A and continues to receive disputed sales tax revenues. Those revenues are set aside in a committed Sales Tax Repayment Reserve that was created in October 2023.
• The assets and deferred outflows ofresources of the City exceeded its liabilities and deferred inflows of resources at the close of the fiscal year 2022-23 by $388. 1 million (net position). Of this amount, $ 120.5 mill ion represents u nrestricted net position, which may be used to meet the City's ongoing obligations to c itizens and creditors. • City revenues have increased in 2022-23 with base governmental revenues showing a $5.9 million increase, or 6%, over 2021 -22. The primary fluctuations include an increase in use of money and property and intergovernmental revenues that are offset by decreases in sales tax and charges for services. According to the 2022-23 Assessor's Annual Report for Santa Clara County, Cupertino's net assessment roll growth increased $2.08 billion, or 7.2%, from the prior year.
• Residential use values increased 7.2%, a total of $1 ,260 million, and represented 61 .1 % of all growth experienced in the City. Commercial properties posted an increase of $1 ,066 million, or 13. 1 %, due to the movement of assets from the unsecured to the secure roll. The industrial properties reported growth of$280 million, or 24.7%, on the strength of parcels adding improvement values between tax years or tenants at these sites adding fixtures and business assets. Unsecured assets in Cupertino decreased by $655 million, or 38.0% due to the movement of assets from the unsecured to the secured roll, which contributed to the large growth seen in the commercial use category. • The City experienced a decrease of approximately $8.3 million, or 20% in FY 2022-23 sales tax revenues compared to the previous year. The decrease was mainly due to a return to in store versus on line purchases. Although the City experienced declines in many of the sectors, including business and industry, general consumer goods, and State and County pools, these experiences were mitigated by strong performances in the remaining major industry groups. • The City continued to make substantial investments into capital projects dedicated to street and transportation improvements, storm drain improvements, and maintenance of and improvements to City facilities, resulting in an increase in net capital assets of $4.3 million, or 2.0%, after depreciation. • The City's change in net position was $28.2 million for governmental activities reflecting the continued positive experience in property tax and modest departmental spending. • The City 's Net Pension Liability for June 30, 2022, (measurement date) was $55.8 million, increased by $2 1.8 million from June 30, 202 1, or 64%. The Plan Fiduciary Net Position as a Percentage of the Total Pension Liability for the City's pension plan with CalPERS decreased to 68%. In accordance with guidance under GASB 67/68, the assets in the Section 11 5 Trust are repo11ed as restricted cash and investments in the City's General Fund. While the Section 115 Trust qualifies as a "trust," the assets in the Section I 15 Trust are not used to directly pay benefits to beneficiaries; rather, they are used to pay CalPERS via the CERBT Trust and as a result, the activities are not required to be reported in a fiduciary fund. The Trust's ending balance as of June 30, 2023 was $19.1 million. 5 300
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CITY OF CUPERTINO
Management's Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
• Business-type activities contributed $7.2 million to citywide revenues totaling $25.7 million, while the same activities contributed over $8.0 million to citywide expenses of$98.4 million. • As of June 30, 2023, the City reported an increased in Net OPEB Liability of $7.9 million primarily due to the investment return being less than the service cost plus interest-on Total OPEB Liability (TOL). The City's actuarial valuation generated a Net OPEB Liability of $0.6 mill ion. The City also repot1ed deferred outflows and inflows related to OPEB of $6.2 million and $2.3 million, respectively. As of June 30, 2023, the City's OPEB plan had a funding ratio or funded ratio or status of 98%.
• On March 11, 2021, the American Rescue Plan (ARP) Act of 202 1 was signed into law, establishing the Coronavirus State and Local Fiscal Recovery Funds (SLFRF). The ARP Act is a $1.9 trillion stimulus bill, with $350 billion allocated for states, municipalities, counties, tribes, and territories, including $130 billion for local governments. California cities are expected to receive over $7 billion to offset revenue shortfalls and cover costs incurred due to the pandemic.

The City of Cupertino received two payments totaling $9,694,773 in SLFRF funding: $4,847,386.50 in May 2021 and a second payment in May 2022. These funds can be used for eligible costs incurred between March 3, 202 1, and December 3 I, 2024, with the funds spent by December 31, 2026. The City has discretion to use these funds within four statutory categories set by the U.S. Depa11ment of the Treasury.

On September 7, 2021 , the Cupe11ino City Council approved a plan to allocate the A RP fundi ng towards an estimated $29 million revenue loss. The $9.7 million in ARP funding was designated for general government services in the General Fund, including City Work Program and special projects. Compliance repot1ing submitted by the City allocated $3,594,028 and $6, I 00, 745 for fiscal years 2021 -22 and 2022-23, respectively, ful ly offsetting revenue losses in transient occupancy taxes.
• The net position presentation has been updated to reflect the implementation of Governmental Accounting Standards Board (GASB) Statement No. 96, effective FY 2022-23, resulti ng in new asset and liability categories.

The objective of the new statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. • The City recorded a prior period adjustment, necessary to record interest receivable due to two housing development loans that the City has historically not recorded. This adjustment ensures that all financial activities are accurately reflected in the City's financial statements. Information on the Loan Receivable can be found in Note 3 - Loans Receivable, and details of the adjustment are provided in Note 14 - Prior Period Adjustment. This adj ustment aims to improve transparency and accuracy in our financial reporting.

OVERVIEW OF THE FINANCIAL STATEMENTS
The discussion and analysis is intended to serve as an introduction to the City's Basic Financial Statements. The Basic Financial Statements are comprised of the City-wide Financial Statements, the Fund Financial Statements, and the notes to the Basic Financial Statements. These two sets of financ ial statements provide two different views of the City's financial activities and positions.
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CITY OF CUPERTINO
Management's Discussion and Analysis {Unaudited) (Continued) For the Year Ended June 30, 2023
The City-Wide Financial Statements provide a long-term view of the City's activities as a whole, and comprise the Statement of Net Position and the Statement of Activities. These statements are prepared on the accrual basis, which means they measure the flow of all economic resources of the City as a whole. The accrual basis of accounting is similar to the accounting used by most private sector companies. The Statement of Net Position provides information about the financial position of the City as a whole, including all its capital assets and long-term liabilities. The Statement of Activities provides information about all the City's revenues and expenses, with the emphasis on measuring net revenues and expenses for each of the City's programs. The Statement of Activities explains in detail the change in net position for the year. Over time, increases or decreases in net position can be indicators of whether the financial condition of the City is improving or deteriorating.

All of the City's activities are grouped into Governmental activities and Business-type activities, as explained below.

The Statement of Net Position and the Statement of Activities provide a summary of these two types of activities for the City as a whole.
• Governmental activities-Most of the City's basic services are considered to be governmental activities, including public works, law enforcement, community development, recreation, innovation and technology, and general administration. These services are supported by general City revenues such as property, sales and other taxes, and by specific program revenues such as developer fees and grants.

The City's governmental activities include the activities of a separate legal entity, the Cupertino Public Facilities Corporation (the "Corporation"), because the City is considered to be financially accountable for the Corporation.

The City leases its major facilities from the Corporation, which then uses the lease payments to pay principal and interest on the Corporation's long-te1111 debt.
• Business-type activities-All of the City's enterprises are reported here, including solid waste management and most of the City's recreational operations. Unlike governmental services, these services are suppo11ed by charges paid by users based on the amount of services used.

The Fund Financial Statements report the City's operations in more detail than the City-wide Financial Statements and focus primarily on the sho11-term activities of the City's General Fund and other major funds. The Fund Financial Statements measure only current revenues, expenditures, assets, liabilities, and deferred inflows and outflows of resources; they exclude long-term assets and liabilities. Because these statements focus on the near-term inflows and outflows of spendable resources, such info,:mation may be useful in evaluating near-term financing requirements.

The Fund Financial Statements provide detailed information about each of the City's most significant funds, called major funds. Cupertino's Fund Financial Statements include governmental, enterprise and internal service funds as discussed below. Each major fund is presented individually, with all non-major funds summarized and presented only iri a single column. Subordinate schedules, which follow the Notes to Basic Financial Statements, present the details of these non-major funds. Major funds present the significant activities of the City for the year and may change from year to year as a result of changes in the pattern of the City's activities and public interest. For example, the Capital Improvement Projects Fund may or may not appear as a major fund depending on the volume of construction activity in a certain year.

Governmental Fund financial statements are prepared on a modified accrual basis, which means they measure only current financial resources and uses. They present essentially the same functions reported as governmental activities in the city-wide financial statements. However, capital assets and other long-lived assets, along with long-term liabilities, are not presented in the Governmental Fund financial statements. Reconciliations are provided to facilitate a comparison between governmental funds and governmental activity statements to allow a better understanding of the long-term impact of the government's near-term financ ial decisions. 7 302
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CITY OF CUPERTINO
Management's Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
Comparisons of budget and actual financial information are included in the Basic Financial Statements for the General Fund and other major Special Revenue Funds. For other nonmajor funds, budgetary comparison schedules for these funds are included in this document as supplemental information only.

Enterprise and Internal Service Fund financial statements are prepared on a ful I accrual basis and include current and long-term assets and liabilities and defetTed outflows and inflows of resources. Enterprise funds are used to repott the same functions presented as business-type activities in the City-wide Financial Statements, and in more detail in the Fund Financial Statements.

Since the City's Internal Service funds provide goods and services only to the City's governmental and business-type activities, their activities are reported only in total at the fund level. Internal Service funds may not be major funds because their revenues are derived from other City funds. These revenues are eliminated in the City-wide financial statements and any related profits or losses are returned to the activities which created them, along with any residual net position of the [nternal Service funds. For this City, internal service activities predominantly benefit governmental rather than business-type functions, and are therefore included within governmental activities in the City-wide Financial Statements.

The Notes to Basic Financial Statements provide impo1tant additional detail that is essential to a full understanding of the data repo,ted in the City-wide and Fund Financial Statements.

CITY-WIDE FINANCIAL ACTIVITIES
This analysis focuses on the net position and changes in net position of the City's Governmental Activities (Tables 1 and 2) and Business-Type Activities (Tables 3 and 4) as presented in the City-wide Statement of Net Position and the Statement of Activities.
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Assets:

CITY OF CUPERTINO
Management's Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
Table 1
Condensed Statement of Net Position at June 30
(in thousands)
Governmental Activities
2023 2022
Cash and investments $ 205,572
19,089
$ 190,003 .

Restricted cash and investments
Other assets
Capital assets
Total assets
Deferred Outflows of Resources:

Loss on refunding
Related to Pensions (Note 8)
Related to OPEB (Note 9)
Total deferred outflows of resources
Liabilities:

Long term debt
Other liabilities
Total liabilities
Deferred Inflows of Resources:

Leases Receivable
Re lated to Pensions (Note 8)
Related to OPEB (Note 9)
Total deferred inflows of resources
Net Position:

Net Investment in capital assets
Restricted
Unrestricted
Total net position
25,222
2 19, 168
469,051
159
17,294
5,859
23,312
18,850
80,725
99,575
2,380
131
2,169
4,680
198,450
69, 129
120,529
$ 388,108
*Updated to reflect prior period adj ustment (see No.te 3 and . .14). 9 17,248
20,849 *
214,927
443,027
199
8,3 17
4,786
13,302
21 ,269
58,527
79,796
2,495
11 , 16 1
2,993
16,649
196,9 16
69,355
93,6 13
$ 359,884 *
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CITY OF CUPERTINO
Management's Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
The City's change in net position from governmental activities was $28.2 million. The following significant changes within assets, liability, and net position categories occurred:
• As part of the City's budget balancing efforts, the City did not make an additional contribution into its Section I 15 Pension Trust during the fiscal year. In accordance with guidance under GASB 67 /68, the assets in the Section 115 Trust are reported as restricted cash and investments in the City's General Fund.

While the Section I 15 Trust qua I ifies as a "trust," the assets in the Section I 15 Trust are noi used to directly pay benefits to beneficiaries; rather, they are used to pay CalPERS via the CERBT Trust and as a result, the activities are not required to be reported in a fiduciary fund. • Cash and investments increased by $15.6 million, or 8.2%, over the previous fiscal year. This was largely due to the City's efforts to reduce expenses as part of it's budget strategy to address the structural deficit while relying other sources of funding to.
• The City utilized the Section 115 OPEB Trust to pay for the direct benefit costs instead of relying on the General Fund to subsidize the expense. Additionally, the change in demographic assumptions and investment performance, the Net OPEB Liability grew to $0.6 million, a shift of $2.1 million from the previous year's Net OPEB Asset of$ I .5 million.
• Capital assets increased approximately $4.2 million. This consisted of continued significant capital investment into capital projects ded i.cated to street and transportation improvements, storm drain improvements, and maintenance of and improvements to City faci lities that were offset with current year depreciation expense.
• Long-term debt decreased by $2.4 million or 11 .4% over the previous year and resulted from the regular debt service payment and amo11ization on the issuance premium. • Other liabilities decreased by approximately $22.2 million or 37.9%, primarily due to an increase in the City's Net Pension and OPEB Liabilities.
• Deferred Outflows Related to Pension and OPEB increased $10.1 million primarily due to actuarial changes of assumptions. Deferred Inflows of Resources Related· to Pension and OPEB increased approximately $ I 1.9 million primarily due to actuarial changes of assumptions. 10 305
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CITY OF CUPERTINO
Management' s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
Sources of Revenue, Governmental Activities
2022-23
Gain on capital assets 0.0%
Investment Earnings 2.4% Transfers -0.2%
Other Taxes 2.4%
Franchise Tax 3.4%
Utility User Tax

3.5%
Transient
Occupancy Tax 6.0%
Sales Tax 29.3%
Charges for
Services 15.5%
Operating Grants &
Contributions 9.2%
C
l s
Property Tax 26.9%
Revenue categories are returning to their proportionate pre-pandemic amounts, with the exception of transient occupancy tax (TOT), which has gradually increased but has not yet returned to FY 20 18-19 levels. 11 306
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CITY OF CUPERTINO
Management's Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
Functional Expenses, Governmental Activities
2022-23
Community
Development 13.8%
Administration 9.8%
Parks and Recreations

6.7%
Administrative
Services 7.1%
Innovation and
Technology 2.2%
Public Works 43.0%
■ Administration ■ Law Enforcement ■ Public Works
■ Innova tion and Technology ■ Administrative Services ■ Parks and Recreations ■ Community Development
Law Enforcement

17.5%
Similarly to TOT in the previous chart, Parks and Recreation was adversely affected by the pandemic, but program activity has gradually increased over the course of the last two fiscal years. 12 307
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CITY OF CUPERTINO
Management's Discussion and Analysis (Unaudited) (Continued) • For the Year Ended June 30, 2023
The Statement of Activities prese1Jts program revenues, expenses, general revenues, and the resulting change in net position as summarized in the next table.

Table 2
Condensed Statement of Activities for the Year Ended June 30 (in thousands)
Governmental Activities
Expenses
Administration
Law enforcement
Innovation and technology
Administrative services
Parks and recreation
Community development
Public works
Interest on long-term debt
Total expenses
Revenues
Program revenues:

Charges for services
Operating grants and contributions
Capital grants and contributions
Total program revenues
General revenues:

Taxes:

Property tax
Property tax in-lieu of motor vehicle fee
Sales tax
Transient occupancy tax
Utility user tax
Franchise tax
Other taxes
Intergovernmental, unrestricted:

Motor vehicle license fee
Investment earnings
Gain on sale of capital assets
Miscel laneous
Total general revenues
Total revenues
Excess of revenues over expenses,
before extraordinary item and transfers
Transfers (Note 5)
Change in net position
Beginning net position (Restated) (Note 14)
Prior period adjustment
Ending net position
13 2023 2022
$ 8,830 $ 7,293
15,7 16 16, 100
1,95 1 2,004
6,363 5,364
6,021 3,977
12,463 12,210
38,696 35,654
370 637
90,410 83,239
18,405 21,387
10,881 7,601
1,594 1,283
30,881 30,271
2 1,808 20,323
10,082 9,402
34,819 43,647
7,062 4,405
4,104 3,356
3,995 3,480
2,873 11,118
62 68
2,802 (9,242)
444 1,948
88,051 88,504
118,932 118,775
28,521 35,536
(296) (887)
28,225 34,649
359,884 323,672
1,563
$ 388,109 $ 359,884
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CITY OF CUPERTINO
Management's Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
City-Wide Governmental Activities Revenues
Table 2 shows that revenues from governmental activities increased $0.16 million or 0.1 % from last year, finishing at $119 million. The modest increase is largely due to increases in Operating grants, property taxes, TOT, and investment earning offset by decreases in charges for service, sales taxes, and other taxes.

Increases in the City's general revenues are attributable to a $1.5 million increase in property tax over the prior year.

According to the 2022/23 City of Cupertino Property Tax Review from HDL (Assessor's Annual Report for Santa Clara County) the net assessment roll growth increased $2.1 billion million, or 7.24%, from the prior year. Approximately I 00% was attributable to residential, commercial, industrial, recreational, vacant properties, Miscellaneous and Institutional use values and 2.27% decreased in Unsecured Value change.

The City experienced a sales tax decrease of $8.3 million in FY 2022-23, decreasing by 20.2% over the previous fiscal year. Although the City experienced declines in many of the sectors including autos and transportation, building and construction, fuel and service stations, general consumer goods, and restaurants and hotels over the last two year, these experiences were mitigated by strong performance in the business and industry sector and the City's county pool allocation. The decrease in sales tax was expected as consumers transitioned back to in store shopping from online.

In FY 2022-23, total transient occupancy tax increased $2.7 million, or 60.3%, over the prior year. The City continues on the road to recovery for this tax source, although it was anticipated to take longer than other areas as employers' long-term and permanent telework policies will have a substantial impact on the timing and extent of recovery.

Other taxes experienced a decrease of $8.3 million, or 74.7%, which was primarily driven federal funding received from the CARES Act and the revenue is recognized in, FY2 l-22.

Investment earnings increased by $12.0 million over the prior year. This was due to the shift from a negative market adjustment (4.76%) in FY 2021 -22 in the City's portfolio's rate ofreturn of .36% (net of fee) for the fiscal year (source:

Chandler Asset Management).

Program revenues showed a modest increase of $0.6 million or 2%, and is primarily attributable to the revenue recognition of the remaining SLFRF funds, offset by decreases in charges for services across all programs.• City-wide Governmental Activities Expenses
City-wide governmental activities expenses increased by $7.2 million, or 9%. This was primarily driven by increases in Administration due to , Recreation due to a return to normalcy following the global pandemic and Recreation and Public Works.

Change in Net Position
The City-wide governmental net position increase of $28.2 million nearly matching the previous year's $34.5 million increase, and can be best explained by budget reduction strateg ies and continued revenue recognition of the federal funding assistance.

Business Type Activities
Business-type activities in the City-wide Financial Statements include the City's four enterprise funds. Enterprise funds are used to account for recreational and solid waste management operations that are financed and operated in a manner similar to private business enterprises where the intent is that costs of providing servic~s and facilities to the general public on a continuing basis be financed or recovered primarily through user fees. The major proprietary funds section of this report provides more information on business-type results. 14 309
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CITY OF CUPERTINO
Management's Discussion and Analysis (Unaudited) (Continued) For.the Year Ended June 30, 2023
As shown in Table 3 and Table 4, the business-type net position totaled $10.4 million at June 30, 2023, decreased by $255,000 or 2.4%, largely due to decreased cash and investments from negative operating activities. Business-type activities transferred in (net) decreased by approximately $0.5 million over the prior year. An increase in capital asset additions of $181 ,863 offset with $161,840 in depreciation expense res Lilted in a net increase of $20,023 over the prior year. Enterprise activities experienced an overall increase in assets due primarily to investment income which increased cash and cash equivalents. Liabilities for business-type activities increased by $268,000 or 6.5% over the previous year.

In Table 4, revenues for all business-type activities increased $1.6 million, or 26.9% and operating expenses increased by $0.45 million, as the enterprise funds continue to return to normal, pre-pandemic operations.

Table 3
Condensed Statement of Net Position at June 30
(in thousands)
Business TtQe Activities
2023 2022
Assets:

Cash and investments $ 11,373 $ 12,342
Other assets 307 230
Capital assets 2,109 2,091
Total assets 13,789 14,663
Deferred Outflows of Resources:

Related to pensions 832 565
Related to OPEB 311 256
Total deferred outflows of resources 1,143 821
Other Liabilities: 4,386 4, 118
Total liabilities 4,386 4,118
Deferred Inflows of Resources:

Related to pensions 6 498
Related to OPEB l 15 188
Total deferred inflows of resources 121 686
Net Position:

Net Investment in capital assets 2,1 10 2,090
Restricted 167 167
Unrestricted 8,148 8,423
Total net position $ 10,425 $ 10,679
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CITY OF CUPERTINO
Management's Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
Table 4
Condensed Statement of Activities for the Year Ended June 30 (in thousands)
Business Type Activities
Expenses
Resource recovery
Blackberry farm
Cupertino sports center
Recreation programs
Total expenses
Revenues
Program revenues:

Charges for services
General revenues:

Investment earnings
Tota l revenues
Excess of revenues over expenses,
before extraordinary item and transfers
Transfers
Change in net position
Beginning net position
Ending net position

MAJOR GOVERNMENT AL FUNDS
General Fund
General Fund Revenues
2023 2022 - $ 2,038 $ 1,838
3,456 655
1,662 3,396
799 1,6 18
7,955 7,507
7,249 6,239
156 (404)

71.405 51.835
(551) (1,672)
296 887
(255) (785)
101.679 11,465
$ 10,?,425 $ 101.679
General Fund actual revenues of$ ! I I million ended $16.4 million, or 17.3%, above the original budget and $24.3 million, or 18.0%, below the final' 'budget. Table 5 displays the variations in actual revenues, while Table 6 shows budgeted revenues compared to actuals.

Property taxes increased $2.2 million, or 7.3%, over the prior year due to continued roll-growth. According to the 2022- 2023 Assessor's Annual Report for Santa Clara County, Cupertino's net assessment rol I growth increased by $2.1 , or

7.24%, from the prior year.
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CITY OF CUPERTINO
Management's Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
Sales tax decreased by 20% or $8.3 million, returning to pre-pandemic levels. Sales Tax revenue continues to be the City's greatest revenue at 29.3% of tota l.

Transient occupancy tax increased $2.7 million, or 60%, due to the continual growth following the heavy decline caused by the pandemic.

Charges for services decreased by 24%, nearly $3.5M under the previous year.

Licenses and permits decreased by $48,000, or I%, due to a decrease 111 permitting on animal licenses, Mech/Elec/Plumbing, and others.

Revenue b;y Source
Taxes:

Prope11y
Sales
Transient occupancy
Utility user
Franchise
Other
Use of money & property
Intergovernmental
Licenses and permits
Charges for services
Fines and forfeitures
Other
Total revenues
Other financing sources:

Inception of subscription liability
Transfers in
Total other financing sources
Table 5
Revenue Changes
General Fund, Fiscal Year 2023 vs. 2022
(in thousands)
Fiscal Year 2023
Amount % of Total
$ 3 l,890 29%
34,819 31%
7,062 6%
4,104 4%
3,995 4%
1,472 1%
3,034 3%
7,771 7%
4,094 4%
l l, l l4 10%
304 0%
1,306 1%
$ 110,964 100%
$ 965 53%
$ 861 47%
$ 1,826 LOO%
17 Increase/(Decrease)
From Fiscal
Year 2022
Amount Percent
$ 2,165 7%
(8,318) -20%
2,657 60%
748 22%
515 15%
458 24%
8,557 - 155%
3,386 77%
(48) -lo/o
(3,478) -24%
(66) -l8%
(635) -33%
$ 5,940 · 6%
$ 965
$ 846 5640%
$· 846 5640%
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CITY OF CUPERTINO
Management's Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
Taxes:

Property
Sales
Transient occupancy
Utility user
Franchise
Other
Use of money & property
Intergovernmental
Licenses and permits
Charges for services
Fines and forfeitures
Other
Total revenues
Inception of subscription liability
Transfers in
General Fund Expenditures
Table 6
Revenue, Budget, and Actual Comparisons
General Fund 2022-23
(in thousands)
Bud_g_eted Amounts
Original Final Actual
$30,040 $30,040 $ 3 1,890
31 ,944 31 ,944 34,819
5,000 6,000 7,062
2,955 2,955 4, 104
3,230 3,230 3,995
1,788 1,788 1,472
1,275 1,275 3,034
1,434 7,946 7,77 1
3,541 34,058 4,094
11,799 14,428 11, l 14
427 427 304
I.J.2.Q_ I, 183 1,306
$94,594 $135,273 $ l 10,964
$ $ $ 965
$ 61 $861 $ 861
Over/(Under)
Final
$ 1,850
2,875
1,062
1,149
765
(3 16)
1,759
( 175)
(29,964)
(3,314)
(123)
124
$ (24,309)
$
Fiscal 2022-23 overall expenditures, at $72.6 million, were $2. 1 million, or 3.0%, higher than last year. This result came in $12.4 million, or 14.6%, under the final budget. Year-over-year and budget-versus-actual results for General Fund programs are described below and in Tables 7 and 8.

Administration increased of $ 110,000 or I% from 2021 -22 and is primarily due to the Economic Development and Video functions moving from Community Development and Innovation & Technology departments, respectively.

Law Enforcement was $437,000 lower by approximately 3%, which is attributed to a shift in reclassing the Santa Clara County Sheriffs reconciling year end refund payment from a miscellaneous revenue to a reduction in expenditure and the year-over-year increases to services provided.

Innovation & Technology decreased by $450,000, or 8%, over the prior year. This was driven by the Department's reorganization.

Administrative Services' expenditures increased approximately $332,000, or 6%, over the prior year largely due to increases in insurance premiums.

Parks & Recreation General Fund expenditures experienced a 15% increase, or $703,000, across its programs. The increase is attributed to the program returning to pre-pandemic level of activity. 18 313
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CITY OF CUPERTINO
Management's Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
Community Development expenditures in the General Fund decreased $5 million, or 5%, and resulted primarily from · increases in cost allocation charges.

Public Works expenditures increased by approximately $0.6 million or 2%. This is primarily represented by an increase in compensation and benefits. Various divisions and programs fluctuated over the prior year due to the addition and completion of one-time special projects.

Transfers out of the General Fund decreased from $21.4 million in 202 1-22 to $12.3 million a 42%. This was due to a reduction transfers from the General Fund to the Capital Reserve.

Table 7
Expenditure Changes
General Fund, Fiscal Year 2023 vs. 2022
(in thousands)
Increase/(Decrease)
Fiscal Year 2023 From Year Fiscal 2022
Function/Program Amount % of Total Amount Percent
Administration $ 7,602 10% $ I LO 1%
Law enforcement 15,277 21% (439) -3%
Innovation and technology 1,826 3% (237) -11%
Administrative services 5,976 8% 450 8%
Parks and recreation 5,432 7% 703 15%
Community development 10,667 15% (521) -5%
Public works 23,880 33% 553 2%
Capital outlay 1,263 2% 867 219%
Debt service 645 [% 645
Total expenditures $ 72,568 100% $ 2,131 3.0%
Transfers out $ 12,344 [90% $ (9,08 1) -42%
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CITY OF CUPERTINO
Management's Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
Table 8
Expenditure Changes
General Fund 2022-23
(in thousands)
Budgeted Amounts
Original Final Actual
Administration $ 11,046 $ 10,275 $ 7,602
Law enforcement 16,815 16,815 15,277
Innovation and technology 3,397 2,779 1,826
Administrative services 7,209 7,164 5,976
Parks and recreation 7,462 7,663 5,432
Community development 11,349 12,782 10,667
Public works 25,581 27,184 23,880
Capital outlay 306 287 1,263
Debt service 645
Total expenditures $ 83,165 $ 84,949 $ 72,568
Transfers out $ 11,252 $ 26,124 $ 12,344
General Fund - Fund Balance
Ove r/(U nde r)
Final
$ 2,673
1,538
953
1,188
2,23 1
2,115
3,304
(976)
{645}
$ 12,381
$ (13,780)
The General Fund carried a June 30, 2023, ending fund balance of $138.6 million, up 25.2% over prior fiscal year. Loan receivables totaled $970,962 of non-spendable fund balance out of$4,000,588 total non-spendable. The remaining nonspendable is related to advances, inventories, and prepaid items . The City committed $34.1 million for general economic unce11ainty and $ I 27,891 for sustainability. The City assigned $9,735,187 million for encumbrances. The City restricted $19,088,859 for the pension rate stabilization program (Section 115 Trust). $71 ,603,813 was classified as unassigned.

Transportation
The Transportation Special Revenue Fund carried a June 30, 2023, ending fund balance of$ I 0,6 million down I 0.5%, or $1.2 million from the beginning of the fiscal year. ln recent years this fund has accumulated fund balance year over year. The decrease in fund balance can be attributed to the progression of scheduled projects, funded by available funds.

Housing Development
The Housing Development Special Revenue Fund carried a June 30, 2023, ending fund balance of$ l 1.5 million, down

3.4%, or $0.4 million, from the beginning of the fiscal year. The decrease can be attributed to lower intergovernmental revenue recognized.

Public Facilities Corporation
On September 2911\ 2020, the City of Cupertino 2020A Certificate~ of Pa11icipation (2020 COPs) were successfully sold at very attractive interest rates in order to refund the City's 2012 Ce11ificates of Paiiicipation for debt service savings.

The 2020 COPs were very well received by investors due in large pai1 to the well-regarded Cupertino name, the topnotch AA+ rating, the sizable armual principal amounts and short maturity, and favorable supply and demand dynamics in the California municipal market.
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CITY OF CUPERTINO
Management's Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
At the end of the order period, there were nearly eight times as many orders as there were bonds for sale. This strong investor demand enabled the underwriter to further lower yields. The refunding ultimately generated net present value savings of approximately $3.14 million, or 11.6 I% of refunded par (compared to $2.26 million, or 8.36% of refunded par, when presented to Council on September I st) and a True Interest Cost of0.72%. Savings to the City's General Fund amounts to approximately $494,000 per year for the next IO years, or almost $5 million in total savings. Fund balance as of June 30, 2023 was $1 ,750 lower than the previous year, which will remain at this approximate fund balance in future fiscal years.

Capital Improvement Projects
The Capital Improvement Projects Capital Projects Fund carried a June 30, 2023, ending fund balance of$34.8 million, largely unchanged to the prior fiscal year.

MAJOR PROPRIETARY FUNDS
Resource Recovery
The City has a solid waste franchise agreement with Recology that shares collection, landfi ll disposal, and recycling revenues and costs. This fund receives revenues from Recology with the funds going toward landfill costs, regulatory fees, and staffing costs that the City incurs to manage its solid waste, recycling, and household hazardous waste programs. Total operating revenue and expenses is at $1.77 million and $2.04 million, respectively. Net position decreased by $207,128. The fund ended the year with $4.8 million in net position.

Recreation Programs
This enterprise operates the Quinlan Community Center, Monta Vista Recreation Center, McClellan Ranch, Creekside Park building, eight school sites, and various parks. These programs generated approximately $1.7 million in revenues and program expenses of approximately $ 1.7 million. This resulted in a net operating gain of $80,756. The fund ended the year with a net position of $2.8 million.

Cupertino Sports Center
Revenue increased by $ I ,307,386 or 72.2% as the activities continued to increase post-pandemic. As a result of the increase in services generating more revenue, expenses increased by $ 1.3 mill ion or 58.3%, resulting in a net operating loss of$338,959. This fund's net position was $ 1.9 million as of June 30, 2023.

NONMAJOR PROPRIETARY FUNDS
Blackberry Farm
City employees, with a teaching professional contractor, staff the City-owned Blackben-y Farm golf course and pro shop. Operating revenues increased from $602,778 to $6 I 6,461 or 2.27%. Operating expenses increased by $1 43,984, or 22.0%, to $799,168 this year, which ended up with the operating loss of $182,707. After a transfer in from the General Fund of $23,600 and investment earnings of 37,286, net position de.creased by $121,821. As of June 30, 2023, this fund 's net position was $734,400.
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CAPITAL ASSETS

CITY OF CUPERTINO
Management's Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
At June 30, 2023, the City had $221 million, net of depreciation, invested in a broad range of capital assets used in governmental and business-type activities, as shown in Table 9 and in Note 6 to the Basic Financial Statements. This reflects the City's continued investment into capital projects dedicated to street and transportation improvements, storm drain improvements, and maintenance of and improvements to City fac ilities, resulting in an increase in net capital assets of$4.3 million, after depreciation and amo1iization.

Table 9
Capital Assets, Net of Depreciation and Amortization, at June 30 (in thousands)
Governmental Activities:

Land
Easements
Construction in progress
Buildings
Improvements other than buildings
Machinery and equipment
Roads, curbs, gutters, sidewalks, medians and bridges
Streetlights
Sto1m drain structures and mains
Traffic signals
Right-to-use subscription asset
Total Governmental Activities
Business-Type Activities
Construction in progress
Buildings
Improvements other than buildings
Machinery and equipment
Total Business-Type Activities
Total City

DEBT ADMINISTRATION
2023
$ 64,787
19,615
28,594
12,504
13,373
3,640
69,369
1,241
3,54 1
420
2,083
219.!167
358
1,419
262
70 2,109
$ 22 1,276
2022
$ 64,787
19,615
23,406
14,118
15,405
4,195
67,932
1,270
3,691
508
1,773
216,700
185
1,501
315
89 2,090
$ 217,017
On September 29, 2020, the City of Cupertino's 2020A Ce11ificates of Participation (2020 COPs) were successfully sold in order to refund the City's 2012 Ce11ificat_es of Participation for debt service savings. The 2020 COPs were very well received by investors due in large part to the well-regarded Cupertino name, the top-notch AA+ rating, the 'sizable annual principal amounts and sho1i maturity, and favorable supply and demand dynamics in the California municipal market. The refunding generated net present value savings of approximately $3.14 million, I 1.61 % of refunded par and a True Interest Cost of0.72%. Savings to the City's General Fund amounts to approximately $494,000 per year for the next 10 years, or almost $5 million in total savings.
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CITY OF CUPERTfNO
Management's Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
The June 30, 2023, outstanding principal of $16,065,000 is due to be paid off by June I, 2030. More information can be found in Note 7 to the Basic Financial Statements and in the Public Facilities Corporation discussion earlier in this analysis.

CURRENTLY KNOWN FACTS AND CONDITIONS
The COVID-19 pandemic has had significant impacts on the City, both financially as well as operationally. Although revenues in transient occupancy tax and charges for services have experienced declines since the start of the pandemic, the City has put forth efforts to reduce its operating costs to mitigate the future impacts. Additionally, through the assistance of the CARES Act and American Rescue Plan Act, the City anticipates these funds will mitigate much of the revenue loss and fiscal impact of the pandemic over the short- and long-term. The City's reserves remain intact and the City does not anticipate requiring the use of these Committed and Restricted funds.

Aside from the pandemic, the City is unaware of any other facts or conditions or decisions that are expected to have a significant effect on net position or results of operations.

CONTACTING THE CITY'S FINANCIAL MANAGEMENT
This Annual Comprehensive Financial Report is intended to provide a general overview of the City's finances. Fu1ther information can be provided by the City of Cupertino Finance Department, I 0300 Torre A venue, Cupe1tino CA 95014, phone (408) 777-3280, or by the City website at www.cupertino.org. 23 318
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")fllll/Q ljll/ 1lj/1JIIOf/llll/llf iJfJIJd Sfl/.l
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BASIC FINANCIAL STATEMENTS
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·'flllJ/q J/il/ ,f// lJ IIOf/llil/11! i181Jd Sfl/.1
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GOVERNMENT-WIDE

FINANCIAL STATEMENTS
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ASSETS
Curr'ent assets:

Cash and investments
Receivables:

Accounts
Interest
Leases, due within one year
Inventories
Prepaid items
Other assets
Total current assets
Noncurrent assets:

Restricted cash and investments
Lease receivable, due in more than one year
Loans receivable. net
Capital assets:

Capital assets. not being depreciated
Capital assets. being depreciated and amortized
Total noncurrent assets
Total assets
DEFEllRED OUTFLOWS OF RESOURCES
Deferred charges on refunding
Related to pensions
Re lated to other postemployment benefit
Total deferred outflows of resources
See accompanying Notes to the Basic Financial Statements City of Cupertino
Statement of Net Position
June 30, 2023
Governmental
Activities
$ 205.571 ,569

15.591.022
732, 160
221 ,644
21 ,383
8,243

3.884
222.149,905

19.088,859

2.271.395

6.373,278
112.996.509
106, 171 ,455
246,90 1.496
469.051.40 I
159,478

17.294.067

5.858,7 18

23.3 12.263
28 Business-Type
Activities Total
$ 11.372,546 $ 216,944, 115
267.1 36 15.858. I 58

39.832 771 ,992
221 ,644
2 1,383
8,243

3.884
11 ,679.5 14 233,829._'1_12_
19,088,859

2.271 .395

6.373,278
358.231 I I 3,354,740

1.751.361 l 07,922.8 I 6

2. 109.592 249,0 11 ,088
13,789, 106 482.840,507
159,478
83 1,986 18,126,053
3 11 ,282 6, 170,000
I, 143,268 24,455,53 1
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City of Cupertino
Statement of Net Position (Continued)
June 30, 2023
Governmental
Activities

LIABILITIES
Current liabilities:

Accounts payable and accruals 8,094.159
Accrued payroll and benefits 602,421
Deposits payable 8.645.547
Interest payable 53.550
Unearned revenues 167,673
Compensated absences, due within one year 50 1, 158
Claims payable, due within one year 382.000
Subscription liabilities. due within one year 783,067
Long-term debt, clue within one year 2,035.000
Total current liabilities 21 ,264,575
Noncurrent liabilities:

Compensated absences, clue in more than one year 4,580,402 Claims payable, due in more 'than one year 1.840.786
Subscription liabilities, due more than one year 1,244.223 Long-term debt, due in more than one year 16.814,7 11
Aggregate net pension liabilities 53.277,80 I
Net other postemployment benefit liability 552,638
Total noncurrent liabilities 78,3 10,56 1
Total liabilities 99,575, 136

DEFERRED INFLOWS OF RESOURCES
Leases 2,379,733
Related to pensions 13 1,066
Related to other postemploymenl benefit 2, I 68,769
Total deferred intlows of resources 4,679,568

NET POSITION
Net investment in capital assets 198,450,441
Restricted for:

Public works 35,408,750
Affordable housing 11 ,492,607
Pension trust 19,088,859
Other postemp loyment benefit 3, 137,311
Debt service 1,750
Total restricted 69, 129,277
Unrestricted 120,529,242
Total net position $ 388, I 08.960
See accompanying Notes to the Basic Financial Statements 29 Business-Type
Activities Total
475.433 8.569.592
289 602.710
8,645.547
53,550

1.097,879 1.265,552
10,492 5 I 1,650
382,000
783,067
2,035,000

1.584.093 22,848,668
209.749 4,790, 151
1,840,786
1,244.223
16,814,7 11

2.563.097 55,840,898

29.362 582,000
2,802,208 81 , 112,769

4.386,301 103,961 ,437

2.379,733
6,305 137,371
11 5,231 2.284,000
12 1,536 4,80 I. 104
2, I 09,592 200.560,033
35,408,750
11 ,492,607
19,088,859
166,689 3,304,000
1,750
166,689 69,295,966
8, 148.256 128,677,498
$ 10,424.537 $ 398.533.497
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City of Cupertino
Statement of Activities
For the Year Ended June 30, 2023
Charges for
Expenses Services
Functions/Prog rams
Governmental Activities:

Administration $ 8.830.1 27 $ 3,098,916
Law enforcement 15.7 16,30 I 6 12,993
Innovation and technology 1,950.7 I 8
Administrative services 6,363,343 5.4 19.34 7
Recreation services 6,020,526 62 1,587
Community development 12,463.257 5,36 I ,837
Public works 38,696,234 3.290,506
Interest and fiscal charges 369,502
Total Governmental Activities 90,4 10,008_ 18,405, [86
Business-Type Activities:

Resource recovery 2.038,3 l 3 1.772,252
Cupertino sports center 3.456,539 3.117.580
Recreation programs 1,661.686 1,742,442
Blackberry fann 799.1 68 6 16.46 1
Total Business-Type Activities 7,955,706 7,248.735
Total Primary Government $ 98,365.7 14 $ 25.653.92 1
See accompanying Notes to the Basic Financial Statements 30 Program Revenues
Capital Grants
Operating Grants and
and Contributions Contributions
$ 6. 125.745 $
1,255.790
407,090
3,092,8 13 1,593.9 10
10,881,438 l,59\910
_J_ I 0.881.438 $ 1.593.9 l 0
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City of Cupertino
Statement of Activities (Continued)
For the Year Ended June 30, 2023
Net (Expense) Revenue and Changes in Net Position
Governmental Business-Type
Activities Activities Total
Functions/Programs
Governmental Activities:

Administration $ 394.534 $ $ 394,534
Law enforcement ( 13.847,518) ( 13,847,5 18)
Innovation and technology ( 1.950,718) (1,950.718)
Administrative services (943,996) (943,996)
Recreation services (5,398,939) (5,398.939)
Community deve lopment (6,694.330) (6,694,330)
Public works (30. 719.005) (30,719,005)
Interest and fiscal charges (369,502) (369,502)
Total Governmental Activities (59.529,474) (59,529,474) Business-Type Activities:

Resource recovery (266.061 ) (266,061)
Cupertino sports center (338.959) (338,959)
Recreation programs 80,756 80.756
Blackberry farm ( 182,707) ( 182,707)
Total Business-Type Activities (706,97 1) (706,971 )
Total Primary Government (59,529,474) (706,971 ) (60,236,445) General Revenues:

Taxes:

Property taxes 2 1,807,628 21,807,628
Property tax in lieu of motor vehicle fee 10.082,01 I 10,082,011 Sales taxes 34.8 I 9,34 1 34,819,34 1
Transient occupancy tax (TOT) 7,062, 150 7,062, 150
Utility user tax (UUT) 4. 103,906 4, 103,906
Franchise tax 3,995,0 18 3,995,0 18
Other taxes 2,872,57 1 2,872,571
Motor vehicle license fee 62,072 62,072
Investment earnings 2,80 1,930 155,92 1 2,957,85 1
Miscellaneous 444,339 444,339
Total General Revenues 88,050,966 155,92 1 88,206,887
Transfers (296,481 ) 296,481
Changes in Net Position 28,225.0 1 I (254,569) 27,970,442 Net Position - Beginning, as restated (Note 14) 359,883,949 I 0,679, I 06 370,563,055 Net Position - Ending $ 388. I 08,960 $ I 0,424.537 $ 398,533,497 See accompanying Notes lo the Basic Financial Statements 31 326
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ZE
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GOVERNMENTAL FUND

FINANCIAL STATEMENTS
In the Fund Financial Statements only individual major funds are presented, whi le nonmajor funds are combined in a single column.

Major funds are defined generally as having significant activities or balances in the current year.

The funds described below were detem1ined to be Major Funds by the City for the fiscal year 2022-23. Individual nonmajor funds can be found in the Supplementary Section.

General Fund - This fund is the general operating fund of the City and is used to pay for core services such as public safety, parks and recreation, community development, public works, and a host of other vital services. The revenue used to pay for these services comes primarily from local taxes such as sales tax, property tax, franchise fees, charges for services, and a variety of other discretionary sources. It also accounts for activities related to the City's investment portfolio. It is used to account for all financial resources except those that are required to be accounted for in another fu nd.

Transportation Special Revenue Fund - This fund accounts for the City's gas tax, vehicle registration fees, and grant revenues and expenditures related to the maintenance and construction of City streets. All revenue in this fund is restricted exclusively for street and road purposes, including related engineering and administrative expenditures.

Housing Development Special Revenue Fund - This fund accounts for the Federal Housing and Community development Grant Program activities administered through the County, including rehabilitation loans. Monies collected from developers that mitigate the impact of housing needs are also included. Monies in this fund are governed by the program's rules.

Public Facilities Corporation Debt Service Fund - This fund accounts for the payments of principal and interest on certificates of participation issued to provide for the financing of the Civic Center, Library, Wilson Park, Memorial Park, and other City facilities.

Capital Improvement Projects Capital Projects Fund - This fund accounts for activities related to the acquisition or construction of major capital faci Ii ties.
33 328
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ASSETS
Cash and investments
Restricted cash and investments
Receivables:

Accounts
Interest
Loans, net
Leases
Due from other funds
Advances to other funds
Inventories
Prepaid items
Other assets
Total assets

LIABILITI ES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable and accruals
Accrued payroll and benefits
Advances from other funds
Deposits
Unearned revenue
Total liabilities
Deferred inflows of resources:

Leases
Unavailable revenue
Total deferred in flows of resou recs
Fund balances:

Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balances
Total liabilities, deferred inflows
of resources, and fund balances
Sec accompanying Notes to the Busic Financial Statements City of Cupertino
Balance Sheet
Governmental Funds
June 30, 2023 .
34 $
$
Special Revenue Funds
Housing
General Transportation Deve lopment
I 16.051.281 $ 11.425. 764 $ 6.095.719

19.088.859

13. 762.883 255,483 97.332
550.744 40.067 21,334
970,962 5.402.316

2.493,039

1.395.657
3,000,000
21,383

8.243
3,884
157.346.935 11.721.3 14 11.616.701

6.206,007 I, 134.640 124,094
602.349
8,645.547
158,400

15.612.303 1.134.640 124.094
2,379.733
798.56 1

3. 178,294

4.000,588
19,088,859 10.586,674 11.492.607

34. 127,891
9,735.187
71 ,603.8 13
138,556,338 10,586.674 11.492.607
157.346.935 • $ 11.721.314 $ 11.616,70 I
(Continued)
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City of Cupertino
Balance Sheet (Continued)
Governmental Funds
June 30, 2023
Public Capital
Facilities Improvement
Corporation Projects Nonmajor Total
Debt Capital Governmental Governmental
Service Fund Projects Fund Funds Funds
ASSETS
Cash and investments $ 1,750 $ 38, 14 1,292 $ 24.91 6.749 $ 196,632.555 Restricted cash and investments 19.088,859
Receivables:

Accounts 74,43 1 15,134 14.205,263
Interest 87.221 699,366
Loans, net 6.373.278
Leases 2,493.039
Due from other funds 1.395,657
Advances to other funds 3.000,000
Inventories 21 ,383
Prepaid items 8,243
Other assets 3,884
Total assets 1.750 38,2 15.723 25.0 19.1 04 243,921 .527 LIABILITrES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable and accruals 364.825 11 4.116 7.943,682 Accrued payroll and benefits 602.349
Advances from other funds 3.000.000 3,000.000
Deposits 8,645,547
Unearned revenue 9.273 167,673
Total liabilities 3,374,098 11 4, 116 20,359.251
Deferred inflows of resources:

Leases 2.379,733
Unavailab le revenue 74.43 1 872.992
Total deferred inflows of resources 74,43 1 3,252,725
Fund balances:

Nonspendable 4,000,588
Restricted 1,750 24,747,645 65,917.535
Committed 34, 127,89 1
Assigned 34.767. 194 157,343 44,659,724
Unassigned 71 ,603,8 I 3
Total fund balances 1,750 34,767, 194 24,904.988 220,309,551 Total liabilities, deferred inflows
of resources, and fund balances $ 1,750 $ 38,2 15,723 $ 25,0 19, 104 $ 243,92 1,527 (Concluded)
Sec accompanying Notes to the Basic Financial Statements 35 330
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·.y11v1q I/ii/ ,1;,,mo1111il/ll! il8Vd Sfl/1
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City of Cupertino
Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position
June 30, 2023
Total Fund Balances - Total Governmental Funds
Amounts reported for governmental activities in the Statement of Net Position were reported differently because:

Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet.

No ndepreciable, net of $ 119,408 reported in the Inte rnal Service Fund Depreciable and amortizable,
net of$2.789,976 reported in the Interna l Service Fund $ 112,877.10 I
103.38 1.479
Long-term liabilities are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities, both current and long-term. are reported in the Statement of Net Position:

Bonds payable
Premium on bonds payable
Deferred charges on refunding
Subscription liabilities. net of $ 198,494 reported in the Internal Services Funds Interest payable
Compensated absences. net of $388,890 reported in the Internal Service Fund Claims liability. net of$1 ,654.000 reported in the Internal Service Funds ( 16,065,000)
(2.784,7 11)
159,478
( 1.828. 796)
(53.550)
(4,692,670)
(568,786)
Net pension liabilities and the related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period or not available for current expenditures and are not reported in the governmental fund financial statements:

Pension re lated deferred outflows of resources, net of $1,2 12,633 reported in the Internal Service Funds
Aggregate net pension liability, net of$3,735,756 reported in the Internal Service Funds Pension related deferred inflows of resources, net of $9. 190 reported in the Internal Service Funds
$ 16,08 1,434
(49,542,045)
( 12 1.876)
Net other postemployment benefit liability and the re lated deferred outflows of resources and deferred inflows of resources are not due and payable in the current' period or not available for current expenditures and are not reported in the governmental fund financial statements:

Other postemployment benefits related deterred outflows of resources. net o f $4 10.644 reported in the Internal Service Funds
Net Other postemployment benefits liability, net of$38,735 reported in the Internal Service Funds
Other postemployment benefits related deferred inflows of resources, net of $152,012 reported in the Internal Service Funds
$ 5.448,074
(5 13,903)
(2,0 16,757)
Revenue reported as unavailable revenue in the governmental funds when it is not rece ived soon enough afte r year-end to be considered available. The availability c riteria does not apply to the Government-Wide Financial Statements and. therefore, the revenue is recognized when eligibility requirements are met and earned.

Internal Service Funds were used by management to charge the costs o f certain activities, such as insurance and equi pment replacement to individual funds. The assets and liabilities of the Internal Service Funds were included in the governmental activities in the Government-Wide Statement of Net Position.

Net Position of Governmental Activities
See accompanying Notes 10 the Bas,c Financial Statements 37 $ 220,309,55 1
2 16,258,580
(25.834,035)
(33,582,487)
2,9 17,4 14
872.992

7. 166,945
$ 388, I 08,960
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City of Cupertino
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2023
Special Revenue Funds
Housing
General Transportation Development
Revenues:

Taxes $ 83,341.842 $ $ 170,824
Use of money and property 3.033.683 2 11.271 194,096
Intergovernmental 7.771 ,411 3.385.823 196.6 16
Licenses and permits 4.093,631
Charges for services I I. 11 3,598 34.012 1.640
Fines and forfeitures 303,573
Other revenue 1,306.455 2.000 28.082
Total revenues 11 0,964, 193 3,633.106 591 ,258
Expenditures:

Current:

Administration 7,602,232
Law enforcement 15.276,950
Innovation and technology 1.825,667
Administrative services 5,976,301
Recreation services 5.432, 183
Community development 10,666,834 1,026.720
Public works 23.879,927 2,726,550
Capital outlay 1,263,4 12 4.950,786
Debt service:

Principal 626, 18 1
Interest and fiscal charges 18,540
Total expenditures 72,568,227 7,677,336 1,026,720
Excess of rev en ucs over
expenditures 38,395,966 (4,044,230) (435,462)
Other financing sources (uses):

Inception of subscription liability 964,745
Transfers in 86 1,140 3,000,000 25,000
Transfers out ( 12,344,345) ( 197,491 )
Total other financin g sources (uses) ( I 0,518,460) 2,802,509 25.000 Net Change in Fund Balances 27,877,506 ( 1,24 1,72 1) (41 0,462) Fund balances:

Beginning of year, as restated (Note 14) 110,678,832 11 ,828,395 11 ,903,069 End of year $ 138.556,338 $ 10,586.674 $ 11 ,492.607
(Continued)
Sec accompanying Notes to the Basic Financia l Statements 38 333
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City of Cupertino
Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Governmental Funds
For the Year Ended June 30, 2023
Public Capital
Facilities Improvement
Corporation Projects Nonmajor Total
Debt Capital Governmental Governmental
Service Fund Projects Fund Funds Funds
Revenues:

Taxes $ $ $ 720.679 $ 84.233,345
Use of money and property (5. 100) (326.69 1) 3 14,847 3.422.106 Intergovernmental 5 15.8 14 11.869.664
Licenses and pern1its 4.093,63 1
Charges for services 51.675 1,54 1,027 12.74 1,952
Fines and forfeitures 23,37 1 326.944
Other revenue 56.522 1.393.059
Total revenues (5. 100) 297.320 2.599.924 118.080, 70 I Expenditures:

Current:

Administration 1.500 7.603,732
Law enforcement 15.276.950
Innovation and technology 1.825.667
Administrative services 5.976,30 1
Recreation services 5.432, 183
Community development 11.693.554
Public works 1,6 15,379 28.22 1,856
Capital outlay 4.4 17.593 1.901,525 12,533.316
Debt service:

Principal 1.955,000 2.58 1, 181
Interest and fiscal charges 720.800 739.340
Total expenditures 2,677,300 4,4 17,593 3.5 16.904 9 1.884.080 Excess of revenues over
expenditures (2.682.400) (4. 120.273) (9 16.980) 26.1 96.62 1 Other financing sources (uses):

Inception of subscription liability 964,745
Transfers in 2.675.800 4.788,757 11.350,697
Transfers out (823,600) ( 1.7 11 , 140) (15,076.576)
Total other financing s·ourccs (us es) 2,675.800 3,965, 157 ( 1,7 11 , 140) (2. 76 1, 134) Net Change in Fund Balances (6.600) ( 155, 11 6) (2,628, 120) 23,435.487 f und balances:

Beginning of year. as restated (Note 14) 8.350 34,922.3 10 27.533, I 08 196,874,064 End of year $ 1.750 $ 34.767.194 $ 24.904.988 $ 220.309.551 (Concluded)
Sec accompanying Notes lo the Basic Financial Statements 39 334
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City of Cupertino
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities For the Year Ended June 30, 2023
Net Change in Fund Balances - Total Governmental Funds
Governmental activities in the Statement of Activities were reported differently because:

Capital assets used in governmental activities are not financial resources and therefore are not reported in governmental funds.

Capital outlay. net of$527.793 reported in Internal Service Fund Depreciation amortization. net of $904.610 reported in Internal Service Funds Net ertect on disposal of capital assets
$ 11,622.819
(8.327 .056)
(476.537)
Net change in revenues that was considered unavailable in the governmental funds. These items have been reported as revenue in the Statement of Activities.

Bonds payable
Subscription liabiltiies. net or$ I 09,339 reported in the Internal Service Funds $ I. 955.000
626, 181
Interest accrued on long-term debt is reported in the Statement of Activities. but does not require the use of current financial resources. Therefore. accrued interest is not reported as an expenditure in governmental funds. This amount represents the change in accrued interest from the prior year.

Amortization of bond premium and defer.red charges were recognized in interest expense on the Government-Wide Statement of Activities. but did not require the use of current financial resources. Therefore amortization of bond discount was not reported as an expenditure in the governmental funds.

Inception of subscription liability. net of$24,865 reported in the Internal Service Funds.

Compensated absences were reported in the Government-Wide Statement of Activities. but they did not require the use of current financial resources. Therefore. compensated absences were not reported as expenditures in the governmental funds. Compensated absences is net of $68,970 reported in the Internal Service Funds.

Certain claims expenses reported in the Statement of Activities do not require the use of current financial resources and. therefore, are not reported as expenditures in governmental funds net of $85,000 reported in Internal Service Funds.

Certain pension expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore. are not reported as expenditures in governmental funds. net of$325.644 reported in Internal Service Funds.

Certain OPEB expenses reported in the Statement of Activities do not require the use of current financial resources and. therefore, are not reported as expenditures in governmental funds net of$2 1.395 reported in Internal Service Funds.

Internal Service Funds are used by management to charge the costs of certain activities. such as insurance and equipment replacement. to individual funds. The net revenue of the Internal Service Funds is reported in governmental activities.

Change in Net Position of Governmental Activities
See accornpan) mg Notes to the Basic Financial Statements 40 $
$

23.435.487

2.8 19.226
872.992

2.581.181
(53.550)
424.249
(964,745)
(322.269)
(568,786)
( 1.244,041 )
(4,686)

1.249.953

28.225,01 1
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PROPRIETARY FUND

FINANCIAL STATEMENTS
Proprietary funds account for City operations financed and operated a in manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services be fi nanced primarily through user.charges.

The City has identified the funds below as major proprieta1y funds for fiscal year 2022-2023.

Resources Recovery Fund - This fu nd accounts for activity related to the collection, disposal, and recycling of solid waste. A private company has been issued an exclusive franchise to perfom, these services.

Recreation Programs Fund- This fund accounts for activities of the City's community centers and park facilities.

Cupertino Sports Center Fund - This fund accounts for the operation and maintenance of the Cupe1tino Sports Center. 41 336
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ASSETS
Current assets:

Cash and investments
Accounts receivable
Interest receivable
Total current assets
Noncurrent assets:

Capital assets:

Nondepreciable
Depreciable and amortizable, net
Total noncurrent assets
Total assets

DEFERRED OUTFLOWS OF RESOURCES
Related to pensions
Related to other postemployment benefit
Total deferred outflows of resources
See accompany ing Notes to the Basic f-inancial Statements City of Cupertino
Statement of Net Position
Proprietary Funds
June 30, 2023
Business-Type _Activities - Enterprise Funds
$
42 Resources
Recove_Q'.

5.351.3 16
222.326

18.754

5.592.396

5.592,396
326,269
I 04,839
43 1,108
$
Recreation
Programs

3.484.602
41 ,981
12,2 10

3.538.793
220,888
492.149
713,037

4.25 1.830
24 1,077
106,877
347,954
$
Cupertino
Sports
Center
1,639,687
1,000

5.732
1,646,±!2_

1.24 1.1 70
1,24 1, 170
2,887.589
163. I 34
8 1.087
244.221
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City of Cupertino
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2023
Business-Type Activities
Enterprise Funds
Current assets:

Cash and investments
Accounts receivable
Interest receivable
ASSETS
Total current assets
Noncurrent assets:

Capital assets:

Nondepreciable
Depreciable and amortizable, net
Total noncurrent assets
Total assets

DEFERRED OUTFLOWS OF RESOURCES
Related to pensions
Related to other postemployment benefit
Total deferred outflows of resources
See accompanying Notes to the Basic Financial Statements $
43 Nonmajor
Enterprise
Fund
896,94 1

1.829

3.136
901,906
137.343
18,042
155,385
1,057,291
101.506
18,479
119,985
$
Total

11.372,546
267, 136
39,832

11.679,5 14
358.23 1
1,751.361
2, I 09,592
13,789,106
831,986
3 11 ,282

1.143.268
$
Governmental
Activities
Internal
Service
Funds

8.939,014
1,385,759
32,794
10,357,567
119,408
2,789,976
2,909,384
13,266,951

1.2 12,633
4 10,644
1,623,277
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City of Cupertino
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2023
Business-Type Activities - Enterprise Funds

LIABILITIES
Current liabilities:

Accounts payable and accruals
Accrued payroll and benefits
Due to other funds
Compensated absences
Claims payable
Unearned revenue
Subscription liabilities
Total current liabilities
Noncurrcnt liabilities:

Compensated absences
Claims payable
Net pension liability
Net other postemployment benefit liability
Subscription liabilities
Total noncurrent liabilities
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Related to pensions
Related to other postemployment benefit
Total deferred inflows of resources

NET POSITION
Net investment in capital assets
Restricted
Unrestricted
Total net position $
See accompanying Notes to the Basic Financial Statements 44 Resources
Recoverx_

98.762
289

3.062
102.11 3
6 1.21 4
1,005, 136

9.889
1,076,239

1.178.352

2.473
38,809
4 1.282
56, 141
4,747.729

4.803.870 $
Recreation
Pro~rams
244.7 11

4.623
488. 175
737.509

92.41 6
742,684

10.08 1
845, 18 1

1.582.690

1.827

39.564
4 1.39 1
7 13.037
57,232

2.205.434

2.975.703 $
Cupertino
Sports
Center
112,984

2.349
5 17,48 I
632.8 14
46,962
502.568

7.649
557, 179

1.1 89.993

1.236
30,0 17
3 1,253

1.24 1, 170
43,42 1
625,973

1.9 10.564
(Continued)
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LIABILITIES
Current liabilities:

Compensated absences
Claims payable
Net pension liability
Net other postemployment benefit liability
Subscri ption liabilities
Total noncurrent liabilities
Total liabilities

DEFERRED INFLOWS OF RESOURCES
Related to pensions
Related to other postemployment benefit
Total deferred intlows of resources

NET POSITION
Net investment in capital assets
Restricted
Unrestricted
Total net position
City of Cupertino
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2023
Business-Type Activities
Enterprise Funds
$
Nonmajor
Enterprise
Fund
18,976
458

92.223
11 1.657

9.157
3 12. 709
1,743
323.609
435,266
769
6,84 1
7,6 10
155,385
9,895
569, 120
734.400 $
Total
475,433
289
10,492

1.097,879
1,584,093
209.749
2,563.097
29,362

2.802,208
4,386,30 I
6,305
11 5.23 1
12 1,536
2, 109,592
166,689
8, 148,256
I 0,424.537
See accompanying Notes lo the Basic Financial Statements 45 $
Governmental
Activities
Internal
Service
Funds
150,477
72 1,395,657
38,354
292,000
125,990
2,002,550
350.536
1,362,000
3,735,756
38,735
72,504
5,559,531
7,562,08 I
9, 190
152,012
16 1,202
2,789.976
4 10,644
3,966,325

7. 166.945
(Concluded)
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City of Cupertino
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2023
Business-Type Activities - Enterprise Funds
Cupertino
Resources Recreation Sports
Recovery Programs Center
OPERATING REVENUES:

Charges for services $ 1.673,40 I $ 1,591,303 $ 2,756,264 Other 98.85 1 15 1, 139 361,3 16
TOTAL OPERATING REVENUES I. 772.252 I, 742.442 3, I I 7~58Q OPERATING EXPENSES:

Salaries and benefits 487.020 482,65 1 355. 109
Materials and supplies 284,671 26 1,484 448,263
Contractual services 1,266, I 09 870.494 2,541 ,729
Insurance and claims and premium
Depreciation and amortization 513 47,057 111,438
TOTAL OPERATING EXPENSES 2,038,3 13 1,66 1.686 3,456,539 OPERATING INCOME (LOSS) (266,06 1) 80,756 (338.959)
NONOPERATING REVENUES (EXPENSES):

Investment income (loss) 58,933 45,346 14,356
Gain on sale of capital assets
Interest expense
Total Nonoperating Income (Expenses) 58,933 45,346 _ 14,356

NET INCOME (LOSS) BEFORE TRANSFERS
AND CAPITAL CONTRIBUTIONS (207,128) 126,102 (324,603)
TRANSFERS AND CAPITAL CONTRIBUTIONS:

Transfers in 376,000
Transfers out ( 103, 119)

TOT AL TRANSFERS AND
CAPITAL CONTRIBUTIONS 272,881
CHANGES IN NET POSITION (207, 128) 398,983 (324,603)
NET POSITION:

Beginning of year 5,010,998 2,576,720 2,235, 167
End of year $ 4,803.870 $ 2.975.703 $ 1.910.564
(Continued)
See accompanying Notes to the Basic rinancial Statements 46 341
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City of Cupertino
Statement of Revenues, Expenses, and Changes in Net Position (Continued) Proprietary Funds
For the Year Ended June 30, 2023
Enterprise Funds
Nonmajor
Enterprise
Fund Total
OPERATING REVEN UES:

Charges for services $ 570,038 $ 6,591 ,006
Other 46,423 657,729
TOTAL OPERATING REVENUES 616,46 1 7,248,735
OPERATING EXPENSES:

Salaries and benefits 233,0 I 3 1,557,793
Materials and supplies 208.348 1,202,766
Contractual services 354,975 5,033,307
Insurance and claims and premium
Depreciation and amortization 2,832 161,840
TOTAL OPERA TrNG EXPENSES 799,168 7,955,706
OPERA TING INCOME (LOSS) ( 182.707) (706,97 1)
NONOPERATING REVENUES (EXPENSES):

Investment income (loss) 37.286 155.92 1
Gain on sale of capital assets
Interest expense
Total Nonoperating Income (Expenses) 37.286 155,92 1

NET INCOME (LOSS) BEFORE TRANSFERS
AND CAPITAL CONTRIBUTIONS ( 145,421) (551.050)
TRANSFERS AND CAPITAL CONTRIBUTIONS:

Transfers in 23.600 399,600
Transfers out (103, 119)

TOTAL TRANSFERS AND
CAPITAL CONTRIBUTIONS 23,600 296,48 1
CHANGES IN NET POSITION (12 1,821 ) (254,569)
NET POSITION:

Beginning of year 856,22 1 10,679, 106
End of year $ 734.400 $ I 0.424.537
See accompanying Notes to the Basic Financial Statements 47 Activities
Internal
Service
Funds
$ 4,606,283
1,385,759
5,992,042
4,289,604
1,279,946
6 I 7,432
1,086,999
904,610
8, 178,591
(2, 186,549)
(22, 193)
30, 158
(861)

7. 104
(2, 179,445)

3.429.398
3,429,398
1,249,953
5,916,992
$ 7, 166.945
(Concluded)
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City of Cupertino
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2023
Business-Type Activities - Enterprise Funds
Cupertino
Resources Recreation Sports
Recovery Programs Center

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users $ 1,596. 163 $ 1.795,593 $ 3,099,825 Cash paid to suppliers for goods and services ( 1,553.924) ( 1, 12 1,474) (2,939,258) Cash paid to employees for services (664.327) (705,749) (49 1,404) Recove1y for insurance claims
Net Cash Provided by (Used in) Operating
Activities (622.088) (3 1.630) (330,837)

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Cash received from (paid to) other funds 272,88 !
Net Cash Provided by (Used in)
Noncapital Financing Activities 272,881

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of capital assets (36,220) (8,300)
Principal paid
Interest paid
Proceed from sale of capital assets
Net Cash (Used in) Capital and
Related Financing Activities (36,220) (8.300)

CASH FLOWS FROM INVESTING
ACTIVITIES:

Investment income (loss) ___iQ,_ 179 33,136 8,624
Net Cash (Used in) Provided by
Investing Activities 40.179 33, 136 8,624
Net Change In Cash and Cash
Equivalents (58 1,909) 238,167 (330,513)
CASH AND CASH EQUIVALENTS:

Beginning of year 5,933,225 3,246.435 1.970,200
End of year $ 5.351.31(>_ 3,484,602 $ 1.639.682
CASH AND CASH EQUIVALENTS:

Cash and investments $ 5,351,3 16 $ 3,484,602 $ 1,639,687 Total cash and cash equivalents $ 5.351.316 $ 3,484.602 $ 1.639.687 (Continued)
See accompanying Notes to the Basic Financial Statements 48 343
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City of Cupertino
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2023
Business-Type Activitie'S Governmental
Enterprise Funds Activities
Nonmajor I nlernal
Enterprise Service
Fund Total Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users $ 6 12,394 $ 7. 103,975 $ 4,606,283 Cash paid lo suppliers for goods and services (582,924) (6, 197,580) (2,952,729) Cash paid to employees fo r services (245,31 1) (2.1 06,79 1) (3,873,595) Recovery for insurance claims 85,000
Net Cash Provided by (Used in) Operating
Activities (2 15,84 1) ( 1,200,396) (2, 135,041)

CASH FLOWS FROM NON CA PIT AL
FINANCING ACTIVITIES:

Cash received from (paid to) other funds 23,600 296,481 4,285.85 I Net Cash Provided by (Used in)
Noncapita l Financing Activities 23,600 296,481 4,285.851

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of capital assets (137,343) ( 181 ,863) (527. 793) Principal paid ( I 09,339)
I nteresl paid (86 1)
Proceed from sale of capital assets 30, 158
Net Cash (Used in) Capital and
Related Financing Activities ( I 37,343) ( 181 ,863) . (607,835)

CASH FLOWS FROM INVESTING
ACTIVITIES:

Investment income (loss) 34, 150 11 6,089 (54,987)
Net Cash (Used in) Provided by
Investing Activities 34, 150 11 6.089 (54,987)
Net Change In Cash and Cash
Equivalents (295,434) (969,689) 1,487,988
CASH AND CASH EQUIV A LENTS:

Beginning of year I, I 92,375 12,342,235 7,45 1,026
End of year $ 896.94 1 $ 11.372.546 $ 8.939.0 14
CASI-I AND CASH EQUIVALENTS:

Cash and investments $ 896,94 1 $ 11 ,372.546 $ 8,939,0 14 Total cash and cash equivalents $ 896.94 1 $ 11.372.546 $ 8.939.0 14 (Concluded)
See accompanying Notes to the Basic Financial Statements 49 344
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City of Cupertino
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2023
Business-Type Activities - Enterprise Funds
Reconciliation of Operating Income (Loss) to
Net Cash Provided by (Used in) Operating Activities:

Operating income (loss)
Adjustments to reconcile to net cash provided by
Operating activities:

Depreciation and amortization
Changes in assets and liabilities:
(lncrease)/decrease in accounts recei vables
(lncrease)/decrease in deferred outflows of resources
related to pensions
(lncrease)/decrease in deferred outflows of resources
related to OPEB
Increase/( decrease) in accounts payable
lncrease/(decrease) in unearned revenue
lncrease/(decrease) in compensated absences
lncrease/(decrease) in claims payable
lncrease/(decrease) in net pension liabilities
lncrease/(decrease) in other postemployment benefit liabilities lncrease/(decrease) in deferred inflows of resources
related to pensions
lncrease/(decrease) in deferred inflows of resources
related to OPEB
Net Cash Provided by (Used in) Operating Activities
See accompanying Notes to the Basic Financial Statements $
50 Resources
Recove~
$ (266.06 1)
5 13
(92.396)
( I 13.387)
(8,356)
(3, 144)
(83,693)
4,740
123,045
14,890
( 186,791 )
( 11,448)
(622.088}
Recreation
Programs
$ 80.756
47,057
(4 1.423)
( 65.682)
(39,534)
10,504
94,574

5.528

2.046

46.933
(150.417)
(2 1,972) -
s; (3 1.630)
-
$
-
$
Cupertino
Sports
Center
(338,959)
111,438
(44,533)
(2.110)

50.734
( 17,755)
2,627
17,988

64.86 1
( 128,578)
{46,5502
(330.837)
(Continued)
345
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City of Cupertino
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2023
Business-Type Activities
Enterprise Funds
Reconciliation of Operating Income (Loss) to
Net Cash Provided by (Used in) Ope rating Activities:

Operating income (loss)
Adjustments to reconcile to net cash provided by
Operating activities:

Depreciation and amortization
Changes in assets and liabilities:
(lncrease)/decrease in accounts receivables
(lncrease)/decrease in deferred outflows of resources
related to pensions
(lncrease)/decrease in deterred outnows of resources
related to OPEB
lncrease/(decrease) in accounts payable
lncrease/(decrease) in unearned revenue
lncrease/(decrease) in compensated absences
lncrease/(decrease) in claims payable
lncrease/(decrease) in net pension liabilities
lncrease/(decrease) in other postemployment benefit liabilities lncrease/(decrease) in deferred inflows of resources
re lated to pensions
lncrease/(decrease) in deferred in nows o f resources
related to OPEB
Net Cash Provided by (Used in) Operating Activities
See accompanying Notes to the Basic Financial Statements $
$
5 1
Nonmajor
Enterprise
Fund
(182,707)

2.832
( 1.659)
(42,810)
(5.380)
(19,60 1)
(2.408)
(9.290)
62,474
1,743
(25.876)
6,841
(215.84 1)
$
$
Toals
(706,97 1)
16 1,840
(135,478)
(266,4 12)
(55,380)
38,493
(9.282)

3.605
205,553
128,427
(49 1.662)
(73,129)
( 1.200.396)
$
$
Governmenta l
Activities
Internal
Service
Funds
(2,186.549)
904.6 10
(1.385.759)
(693.504)
(64,342)
3 1,648

68.970

85.000
1,809,8 13
119,864
(790.665)
(34,127)
{2. 135.04 1)
(Concluded)
346
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'.'fllllJq J/i1J rljJ/JIIOf/lli1/ll! i1fi1Jd S/1/.1
347
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NOTES TO THE BASIC FINANCIAL STATEMENTS
53 348
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.}fl/lJ/q lji1/ 1lj/lll/Of/lli1/llf i18lld Sfl/,L
349
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City of Cupertino
Index to the Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
Note 1 - Summary of Significant Accounting Policies · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · A. Financial Reporting Entity · · · .. · · .. · · · · .... .. · .... .. · · .. · .. ............ · .. · · · · · .. · · .... .. · · · · · .. · .. · .. · .. ·: .......... · · 57 B. Basis of Presentation······························· · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 58 C. Measurement Focus, Basis of Accounting and Financial Statements Presentation · · · • · • · • · • · • · · · · · · · · · · · · · · · · · · 58 D. Cash, Cash Equivalents, and Investments· .. · .. .. ······ .... · .. ·· .. · .. ··· .. .. ·· .. ···· .. ·· .... ·· .. ········ ...... .. .. ····· 61 E. Fair Value Measurements • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • · • · • · • · • · • · · · · · · · · · · · · · · · · · · • · • · • · · · · · · · · · · · · · · · · · · 62 F. Receivables························································································· ····················· 62 G. Leases Receivables··························· ··········································································· 62 H. Inventories .. ·.. · · · · · · .. · .... .. · .. · .. .. · .. · ...... · · .. .. · · · · · · · .. · · .. · · .............. · .. · .. .. .. .. .. · .. · .. · .. .. .. · · .... .. · · .. 63 I. Prepaid Items·············································································································· 63 J. Interfund Transactions···· • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • · • • · · · · · · · • · · · · • · · · • · • · • · · · · · · · · · · · • · · · · · · · · · · · · 63 K. Capital Assets • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • · · • · · · · · · · · · · · · · · · · · · · · · • · · · • · • · • :. · · · · · · · · · · · · · · · · · · · · · · · · · · · 63 L. Deferred Outflows of Resources and Deferred I ntlows of Resources·············································· 64 M. Interest Payable • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · • · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 64 N. Unearned Revenue · · .. · · · .. .... .. .. .. · .. · · .. · · .. · .... · .... .. · · .. · · .. · · · · .. · .... · · .. · · .. .. .. · · · · · .... · · .. · .. · · ...... · .... · · 64

0. Compensated Absences····················································•·•·········································· 65 P. Claims and Judgement Payable························································································· 65 Q. Subscription Liabil ities···· .... ···· .. ······ ..... · .. .. .... · .. .. ...... · ...... ... · .. .. .. .. .... · .. · .. · .. · .. ·· .. ····· ... · .. ···· 65 R. Long-Term Debt······ •• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • · · • · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 65 S. Pensions···· .. ···· · · · · · .. · · · · · · · .. · · · · · · · · · · · .. .... · · .. · .... .. · .. · · .. · · .. · · .. .... · --: · · ...... · · · · · ... .... · · ..... .. ... · · 66 T. Other Postemployment Benefits ("OPEB") Plan······························································•······ 66 U. Net Position • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • · • • · • · · · · · · • · • · • · · · • · • · · · · · · · · · · · · · · · • · • · • · · · · · · · · · · · · · · · · · · · 67 V. Fund Balances···· • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • · • · • · · · · · · · · · · · · · · · · · · · · · · · · · • · • · · · • · · · · · · · · · · · · · · · · · · · 67 W. Property Taxes • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • · · · · · · · · · · · · · · · · · · · · · · · · · · · • · • · • · • · • · · · · · · · · · · · · · · · · · · · · · 68 X. Use of Estimates· • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • · • · • · • · • · • · • · · · · · · · • · · · · · • · · · · · · · · · · · · · 68 Y. Implementation of New GASB Pronouncements .. · .. .... .. · · · · · .. .. ...... .. .. · · · .. ... .. .... .. .... · .. ... · .. · · · .. · · · · 69 Z. Upcoming New GANB Pronouncements .. ·· .. .... ·· .... .. · · · .. .. · · · · .. · · .. · .. · · · · .. · .... .... · · .. · .... · .... .. · .. · · · · 69 Note 2 - Cash and Investments · · .. .. · · · .. .. · · .... .. · .. · .. · .. · .... · .. · · · .. · · ...... · · .... .. .. · ...... · .. · · · · · .... · .. · .... · .... 70 A. Deposits··········· • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • · · • · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 71 B. Investments Authorized by the California Government Code and the City's Investment Policy · · · · · · · · · · · · · · 72 C. Investments Authorized by Debt Agreements··········· ············· • • • • • • • · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 73 D. Risk Disclosures ········································································································ 73 E. Fair Value Measurement Disclosure .. ······· .... ···· .. · .. ··· ........ · ...... ·· .. .. ·· .. · .... ·· .. ··· ........ .. · .... ·· .. ··· 76 F. Investment in Local Agency Investment Fund (LAIF)-- · .. · · .. .. · .. .... ... · .. .. .. ......... .... · .... .. .. · ......... .. · 76 Note 3 - Loans Receivable • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • · · · · · · · • · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·, · · · · · 77 Note 4 - Leases Receivable and Lease-Related Deferred Inflows of Resources··································· · · 77 Note 5 - Interfund Transactions··········· · .. · .. · · ... .. · · ..... · ·: ·•···•·· ·•· •·•· ··················· .. . · ... . · · · · · . . ······ 78 A. Advances • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •• • • • • • • • • • • • • • • • • • • • • • • • • · • · • · • · • · • · • · • · • · • · · · • · · · · · · · · · · · · · · · · 78

8. Due from and To other Funds ...... .... .. .. · .. · · · .. .... · .. · .. .. .... .. .... · .. ...... · .. .. .. · .. .. · .. · .. .. .. ......... · 79 C. Transfers in and Out • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • · · · · • • · · · · · • • • · · · · · · · · · · · · · · · · · · · • · · · · · • · • · · · · · · · · · · · · 79 55 350
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City of Cupertino
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023
Page
Note 6 - Capital Assets··········································································································· 80 A. Governmental Activities·· · · ··· · •· · · · · • · • ·• · · · · · •· •·· · • ·• • • • • •• • • • • • •• • • • • ·• • • • • • • • • • • • • • • •• •• •• • • • • • • • •• • • • • ··•· •• • • • • 80 B. Business-Type Activities ····················· • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 81 Note 7 - Long-Term Liabilities · · · · · · · · · · · · · · · · · · • · · · • · • · • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 82 A. Governmental Activities································· .. •• •••• ••• .. •• ••• ••• • • • • • • • • • • • • • • • • • • • .. • • • • .. • • • • • • 82 B. Business-Type Activities ················· · · · · • · · · · •• • •· • • • • • • • • • • • • •• •• • • • •• • • • • • • • • ••• • • • • • • • • • • • • • ·• • • • • • • • • • • • • • • • • 84 Note 8 - Defined Benefit Pension Plan········· · · · · · · · · · · · · • · • · • • · • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 84 A. General Information about the Pension Plan · · · • · · · · · • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • .. • • • • • • • • • • • • • • • • • • • .. • • • • • • • 84 B. Net Pension Liability · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · • · · · · · • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 86 C. Changes in the Net Pension Liability ························ .. •••• • • • • • • • • • • • • • • • • • •• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 88 Note 9 - Other Post Employment Benefits (OPEB)· · · · · · ·· · · · ·· · · • • •• • • •• • •• •• • • • • • • •• • • • • • • • • • • • • • • • • ••• •• • • • • • • • • • • 90 A. General Information about the OPEB Plan · · · · • · · · • · • · .. • • • • • • • • .. .. • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 90 B. Net OPEB Liability · · · · · · · · · · · · · · · · · · · · · · · · · · · · · • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 91 C. Change in Net OPEB Liability · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 94 D. OPEB Expense and Deferred Inflows of Resources Re lated to OPEB • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 95 Note 10 - Liabilities Under Self-Insurance and Risk Management • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 95 Note 11 - Net Position and Fund Balances · · · · · · · • · • · • • • .. • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • .. • • • • • • • • 96 A. Net Investment in Capital Assets···················································· •• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 96 B. Fund Balance Classifi cations · · · · · · · · · • · • · • · • · · · • · · • · · • · · • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 97 Note 12 - Commitments and Contingencies·· · · · · · · · · · • · · · · · · · · · · • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 97 A. Federal and State Grants································································································· 97 B. Encumbrances···························· · · · · · · ·• · · · ·· •·• ·• • • • • • • • • • • • • • •• • • • • • • •• • • • • ·•· • • • • • • • • • •• • •• • • • • •• • ••• • • •• • • • • • 98 C. Consulting Agreement for Sales Taxes··········· · · · • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 98 D. Santa Clara County Vehicle Registration Fee (VRF)· • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 98 E. Unasserted Claim ························· · · · · · · · · · •• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 99 Note 13 - Concentration Risk·················· · · · · · · · · •· • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 99 Note 14 - Prior Period Adjustments ··························································································· 99 A. Government-Wide Financial Statements···········.-.·······:.························································ 99 B. Governmental Fund Financial Statements · · · · • · • ·• · • · • · · · · :. ••• ·" • .. • • • • • • • •• • • • • • • • • • • • • • • • • • • • • • • • • • • • • .. • • • • • • • • • • • • 99 56 351
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City of Cupertino
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
Note 1 - Summary of Significant Accounting Policies
A. Financial Reporting Entity
The City of Cupertino, California (the "City") was incorporated on October 3, 1955, under the laws of the State of California. The City operates under a Council - City Manager form of government and provides services through the followi ng departments: Administrative Services, Community Development, City Manager, Parks and Recreation, Innovation and Technology, and Public Works. Fire services are provided by the Santa Clara County Fire District, and the City contracts with the Santa Clara County Sheriffs Depaiiment for pol ice services, and with Recology for garbage and recycling services.

The accompanying basic financ ial statements include all funds and boards and commissions that are controlled by the City Council. The basic financial statements include the City's blended component unit entity for which the City is considered to be fi nancially accountable. A blended component unit, although a legally separate entity, is in substance, part of the City's operations and so data from this unit is combined with the City.

Blended Component Unit
In evaluating how to define the City for financial repo1iing purposes, management has considered all potential component units. The primary criteria for including a potential component un it within the reporting entity are the governing body's financial accountability and a financial benefit or burden relationship and whether it is misleading to exclude. A primary government is financially accountable and shares a financial benefit or burden relationship, if it appoints a voting majority of an organization's governing body and it is able to impose its will on the organization, or ifthere is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on the primary government. A primary government may also be financially accountable if an organization is fiscally dependent on the primary government regard less of whether the organization has a separately elected governing board, a governing board appointed by a higher level of government, or a jointly appointed board, and there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on the primary government.

Management determined that the following component unit should be blended based on the criteria above:

Although the fo llowing is legally separate from the City, it has been "blended"· as though it is part of the City because the component unit's governing body is substantially the same as the City's and there is a financial benefit or burden relationship between the City and the component unit; management of the City has operational responsibilities for the component unit; and/or the component unit provides services entirely, or almost entirely, to the City or otherwise exclusively, or almost exclusively, benefits the City, even though it does not provide services directly to it.

The Cupertino Public Facilities Corporation (the "Corporation") - The Corporation was incorporated in May 1986, under the Nonprofit Public Benefit Corporation Law of the State of California. The Corporation was organized as a nonprofit corporation solely for the purpose of assisting the City in the acquisition, construction, and financing of public improvements which are of public benefit to the City. The Corporation, after acquiring certain properties from the City, leases these back to the City. The lease money provides the funds for the debt service for . the Ce1iificates of Paiiicipation issued by the Corporation to acquire the properties. The Corporation does not issue separate financial statements, since it is reported separately in the City's basic financial statements.

The City had no discretely presented component units.
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City of Cupertino
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 1 - Summary of Significant Accounting Policies (Continued) B. Basis of Presentation
Financial statement presentation follows the recommendations promulgated by the Governmental Accounting Standards Board ("GASB") commonly referred to as accounting principles generally accepted in the United States of America ("U.S. GAAP"). GASB is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.

C. Measurement Focus, Basis of Accounting and Financial Statements Presentation The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained in accordance with legal and managerial requirements.

Government-wide Statements
The City's Gove rnment-Wide Financial Statements include a Statement of Net Position and a Statement of Activities. These statements present summaries of governmental and business-type activities for the City accompanied by a total column. Fiduciary activities of the City are not included in these statements.

These financial statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the City's assets, deferred outflows of resources, liabilities, and deferred inflows of resources, including capital assets, as well as infrastructure assets, and long-te1111 liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.

Certain types of transactions are reported as program revenues for the City in three categories:
► Charges for services
► Operating grants and contributions
► Capital grants and contributions
Ce1iain eliminations have been made in regards to interfund act1v1t1es, payables and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities and Changes in Net Position, internal service fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been e liminated:
► Due to/from other funds
► Transfers in/out
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City of Cupertino
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 1 - Summary of Significant Accounting Policies (Continued) C. Measurement Focus, Basis of Accounting and Financial Statements Presentation (Continued) Governmental Fund Financial Statements
Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and nonmajor funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in net position as presented in these statements to the net position presented in the Government-Wide Financial Statements. The City has presented all major funds that met the applicable criteria.

A II governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures and Changes in Fund Balances presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets.

Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both " measurable" and "available" to finance expenditures of the current period.

Revenues are recognized as soon as they are both " measurable" and "available". Revenues are considered to be available when they are collectible within the current period as soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property taxes, sales tax, intergovernmental revenues and other taxes. Expenditures are recorded in the accounting period in which the related fund l iability is incurred.

The Reconciliation of the Fund Financial Statements to the Government-Wide Financial Statements is provided to explain the differences.

The City reports the following major Governmental Funds:
).- General Fund- The General Fund is the general operating fund of the City. It is used to account for all financial resources except those that are required to be accounted for in another fund. ► Housing Development Special Revenue Fund - The Housing Development Special Revenue Fund accounts for the Federal Housing and Community Development Grant Program activities administered through the County.

Monies collected from developers that mitigate the impact of housing needs are also included. Monies in this fund are governed by the program's rules. Management considers this fund qualitatively major and has elected to present this fund as such, even if mathematically it does not qualify per applicable GASB requirements. ► Transportation Special Revenue Fund - The Transportation Special Revenue Fund accounts for the City's gas tax, vehicle registration fees and grant revenues and expenditures related to the maintenance and construction of City streets. All revenue in thi s fund is restricted exclusively for street and road purposes including related engineering and administrative expenses. Management considers this fund qualitatively major and has elected to present this fund as such, even if mathematically it does not qualify per appl icable GASB requirements. ► Public Facilities Corporation Debt Service Fund - The Public Facilities· Corporation Debt Service Fund accounts for the payments of principal and interest on certificates of participation issued to provide for the financing of City Hall, Library, Wilson Park, Memorial Park, and other City facilities. Management considers this fund qualitatively major and has elected to present this fund as such, even i f mathematically it does not qualify per applicable GASB requirements.
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City of Cupertino
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 1 - Summary of Significant Accounting Policies (Continued) C. Measurement Focus, Basis of Accounting and Financial Statements Presentation (Continued) Governmental Fund Financial Statements (Continued)
► Capital Improvement Proiects Capital Proiects Fund - The Capital Improvement Projects Capital Projects Fund Accounts for activities related to the acquisition or construction of major.capital facilities.

Proprietary Fund Financial Statements
Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses and Changes in Fund Net Position, and a Statement of Cash Flows for each major Proprietary Fund.

A separate column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the Government-Wide Financial Statements. The City's internal service funds include two individual funds which provide services directly to other City funds. These areas of service include Central Garage and Print Shop.

Proprietary funds are accounted for using the "economic resources" measurement focus and the accrua l basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Fund Net Position presents increases (revenues) and decreases ( expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.

In these funds, receivables have been recorded as revenue and provisions have been made for uncollectible amounts.

Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are repo1ted as nonoperating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as nonoperating expenses.

The City reports the following major proprietary funds:
► Resources Recoverv Enterprise Fund - The Resources Recovery Enterprise Fund accounts for activity related to the collection, disposal, and recycling of solid waste. A private company has been issued an exclusive franchise to perform these services.
► Recreation Programs Enterprise Fund - The Recreation Programs Enterprise Fund accounts for activities of the City's community centers and park facilities.
► Cupertino Sports Center Enterprise Fund - The Cupettino Sports Center Enterprise Fund accounts for activities of the City's sports center facility.

The City also reports the following fund as proprietary fund type:
► Internal Service Funds. These funds account for management information systems maintenance and replacement, workers' compensation, equipment maintenance and replacement, accrued leave payouts, and long-term disability, retiree health costs, coverage which are provided to other departments on a costreimbursement basis. 60 355
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City of Cupertino
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 1 - Summary of Significant Accounting Policies (Continued) C. Measurement Focus, Basis of Accounting and Financial Statements Presentation (Continued) Basis of Accounting
The government-wide and proprietary financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.

Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method. revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after year-end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on long-term debt which are recognized as expenditures to the extent the City has provided financial resources to a debt service fund for payment of these liabilities that mature early in the following year. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds from long-term debt and acquisitions under capital leases are reported as other financing sources.

Unearned revenues are considered on a full accrual basis, while unavailable revenues are based on the modified accrual measure.

Property taxes, transient occupancy taxes, utility taxes, franchise taxes, interest and special assessments are susceptible to accrual. Other receipts and taxes are recognized as revenue when the cash is received. Sales taxes collected and held by the state at year end on behalf of the City are also recognized as revenue. Sales tax consultant payments which are contingent on revenues collected are netted against the related revenues.

Under the terms of grant agreements, the City may fund certain programs with a combination of cost reimbursement grants, categorical block grants, and general revenue. The City's pol icy is to first apply restricted grant resources to such programs, followed by general revenues ifnecessary. Grant revenues are recognized after eligibility and billing occurs, but may be a deferred inflow if not received within sixty days of year-end. Because of the costreimbursement and recognition 11<;1ture of some grants, certain capital project funds may carry deficit fund balances until billing and receipt of grants. The City may also front the capital outlays with cash advances from other funds.

Non-exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include property taxes, grants, entitlements, and donations. On the accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenue from grants is recognized as described above. Entitlement and donation revenues are recognized when cash is received.

D. Cash, Cash Equivalents, and Investments
The City pools its cash resources, consisting of cash and investments, of all funds for investment except for restricted funds generally held by an outside fiscal agent. Cash amounts are reported net of outstanding warrants.

Investments are stated at fair value, except for m_oney market mutual funds which are reported at amortized cost.

Adjustments to fair value, as well -as d}vidimd and interest income received is recorded by the City in its governmental funds in the Use of money and, property caption while proprietary funds- report these items as Investment income.

The statement of cash flows requires presentation of "cash and cash equivalents". For the purposes of the statement of cash flows, the City considers all proprietary fund pooled cash and investments as "cash and cash equivalents", as such funds are available to the various funds as needed. 61 356
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City of Cupertino
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note I - Summary of Significant Accounting Policies (Continued) D. Cash, Cash Equivalents, and Investments (Continued)
Certain disclosure requirements, if applicable, for Deposits and Investment Risks in the fo llowing areas:
)., Interest Rate Risk
► Credit Risk
Overall
Custodial Credit Risk
Concentration of Credit Risk
► Foreign Currency Risk
In addition, other disclosures are specified including use of ce11ain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures.

E. Fair Value Measurements
U.S. GAAP defines fair value, establishes a framework for measuring fair val ue and establishes disclosures about fair value measurement. Investments, unless otherwise specified, recorded at fair value in the financial statements, are categorized based upon the level of judgment associated with the inputs used to measure their fair val ue. Levels of inputs are as follows:

The three levels of the fair value measurement hierarchy are described below:
► Level 1 - Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.
► Level 2 - Inputs, other than quoted prices included in Level l, that are.observable for the assets or liabilities through corroboration with market data at the measurement date. ► Level 3 - Unobservable inputs that reflect management's best estimate of what market pa11icipants would use in pricing the assets or liabilities at the measurement date.

If the fair value of an asset or liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement.

F. Receivables
Receivables include such items as taxes, intergovernmental revenues, charges fo r services, miscellaneous accounts receivable, and interest receivable. No allowance for doubtful accounts has been established, as the City believes all amounts are considered to be collectible in the normal course of business.

G. Leases Receivables
The City is a lessor for leases of buildings and land and recognizes leases receivable and deferred inflows of resources in the financial statements. Variable payments based on future performance or usage of the underlying asset are not included in the measurement of the lease receivable. 62 357
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City of Cupertino
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note I - Summary of Significant Accounting Policies (Continued) G. Leases Receivables (Continued)
At the commencement of a lease, the lease receivable is measured at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the pr.incipal portion of lease payments received. The deferred inflows of resources are initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the .deferred inflows of resources are recognized as revenue over the life of the lease term in a systematic and rational method.

Key estimates and judgments include how the City determines ( 1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts. ► The City uses the incremental borrowing rate (TBR) provided by the City's financial institution for existing leases or the current rate at the time a new lease is executed. ► The lease term includes the noncancelable period of the lease plus any option periods that are likely to be exercised.
► Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.

H. Inventories
Inventories consist of fuel.

I. Prepaid Items
Prepaid items are reported under the consumption method, which recognizes the expenditures/expense in the period associated with the service rendered or goods consumed.

J. Interfund Transactions
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" or "advances to/from other funds" (i.e., the current portion of interfund loans). Any residual balances outstanding between the governmental activities and businesstype activities are reported in the Government-Wide Financial Statements as "internal balances" .

K. Capital Assets
Capital assets are recorded at cost or estimated historical cost if purchased or constructed. Donated capital. assets_ -are recorded at their estimated acquisition value on the date donated. Public domain (infrastructure) c~pital assets consisting of roads, bridges, curbs, gutters, medians, sidewalks, drainage and I ighting systems have been capitalized and depreciated. Capital assets are defined as assets with an initial individual cost of more than $5,000 for general capital assets and $100,000 for intangible assets.
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City of Cupertino
Notes to the·Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 1 - Summary of Significant Accounting Policies (Continued) K. Capital Assets (Continued)
Depreciation is recorded using the straight-line method over the following useful li ves:

Buildings
Improvements
Vehicles
Street equipment
Water equipment
Office equipment
Road, curbs. gutters. sidewalks. medians and bridges
Streetlights
Storm drain structure and mains
Traffic signals
15 - 25 years
10 - 15 years
4 - IO years
3- 20 years
3- 50 years
3- 5 years
30 - 40 years
20 years
40 years·
20 years
M ajor outlays for capital assets and improvements are capitalized as projects are constructed. For enterpri se funds, interest incurred duri ng the construction phase is reflected in the capitalized value of the asset constructed, net of interest earned on the invested proceeds over the same period. Some capital assets may be acquired using federal and state grant funds, or they may be contributed by developers or other governments. These contributions are accounted for as revenues at the time the capital assets are contributed.

Right-of-Use Subscription Asset£
Subscription assets are recorded at the amount of the initial measurement of the SBITA liabi lities ('·subscription liabilities") and adjusted by any subscription payments to the SBITA vendor at or before the commencement of the subscription term, less any incentives received from the SBITA vendor at or before the commencement of the subscription term along with subscription implementation costs. Subscription assets are amortized over the shorter of the subscription term or the useful life of the underlying information technology assets.

L. Deferred Outflows of Resources and Deferred Inflows of Reso~rces The Statement and Net Position and the Balance Sheet repori separate sections for deferred outflows of resources, and deferred inflows of resources, when applicable.

Deferred Outflows o(Resources represent a consumption of net assets that applies to future periods.

Deferred Inflows o(Resources represent an acquisition of net assets that applies to future periods.

M. Interest Payable
In the government-wide financial statements, interest payable on long-term debt is recognized as the liability is incurred for governmental activities and business-type activities.

N. Unearned Revenue
Unearned revenue is reported for transactions for which revenue has not yet been earned. Typical transactions recorded as unearned revenues are prepaid charges for services. 64 359
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City of Cupertino
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 1 - Summary of Significant Accounting Policies (Continued)

0. Compensated Absences
Compensated absences comprise vested accumulated vacation and sick leave. The City's liability for compensated absences is recorded in governmental or business-type activities as appropriate. The liability for compensated absences is determined annually. For all governmental funds, amounts expected to be "permanently liquidated," such as what is due to be paid because of a realized employment action, are recorded as fund liabilities; the longterm portion is recorded in the Statement of Net Position.

Compensated absences are liquidated by the fund that has recorded the liability. The long-term portion of governmental activities compensated absences are liquidated primarily by the General Fund, using the Compensated Absences and Long-Term Disability internal service fund to account for termination payouts.

P. Claims and Judgement Payable
Claims and judgments payable are accrued when the liability is incurred and the amount can be reasonably estimated. Claims and judgments payable are recorded in an internal service fund for workers' compensation and long-term disability, and other claims and judgments are recorded in the General Fund or enterprise funds, as appropriate.

Q. Subscription Liabilities
The City recognizes subscription liabilities with an initial, individual value of $5,000 or more with a subscription term greater than one year in the govenunent-wide and proprietary fund financial statements. Variable payments based on future performance of the City, usage of the underlying information technology assets, or number of user seats are not included in the measurement of the subscription liability.

At the commencement of a subscription, the City initially measures the subscription liability at the present value of payments expected to be made during the subscription tenn. Subsequently, the subscri ption liability is reduced by the principal portion of subscription payments made.

Key estimates and judgments related to subscription liabilities include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription tenn, and (3) subscription payments.
► The City uses incremental borrowing rate provided by the financial institution at July 1, 2022 for existing subscription or the current rate at the time a new subscription is executed. ► The subscription term includes the noncancellable period of the SBlTA. Subscription payments included in the measurement of the subscription liability are composed of fixed payments.

The City monitors changes in circumstances that would require a remeasurement of its SBITA and will remeasure any subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability.

R. Long-Term Debt
Government-Wide Financial Statements
Long-term debt and other financial obligations are reported as liabilities in the statement of net position. 65 360
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City of Cupertino
Notes to the Basic Fi.nancial Statements (Continued)
For the Year Ended June 30, 2023
Note 1 - Summary of Significant Accounting Policies (Continued) R. Long-Term Debt (Continued)
Government-Wide Financial Statements (Continued)
Bond premiums and discounts, as well as gains and losses on refunding, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable premium or discount.

Issuance costs are expensed in the year of issuance.

Fund Financial Statements
The fund financial statements do not present long-tenn debt but are shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position.

S. Pensions
For purposes· of measuring the net pension liability, deferred outflows ofresources and deferred inflows ofresources related to pensions, and pension expense, information about the fiduciary net position of the plans and additions to/deductions from the plans' fiduciary net position have been determined on the same basis as they are reporied by the plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are repo1ied at fair value.

The following timeframes are used for pension reporiing:

Valuation Date
Measurement Date
Measurement Period
June 30, 2021
June 30, 2022
July I, 2021 to June 30, 2022
Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amoriized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferTed outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.

General Fund is typically used to liquidate pension liabilities to governmental funds.

T. Other Postemployment Benefits ("OPEB") Plan
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City's OPEB Plan and additions to/deductions from the OPEB Plans' fiduciaiy net position have been determined on the same basis as they are reported by the plans. For this purpose, benefit payments (i ncluding refunds of employee contributions) are recognized when due and payable in accordance with benefit tenns. Investments are reported at fair v~lue. 66 361
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City of Cupertino
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 1 - Summary of Significant Accounting Policies (Continued) T. Other Postemployment Benefits ("OPEB") Plan (Continued) The fo llowing timeframes are used for OPEB reporting: .

Va luation Date
Measurement Date
Measurement Period
June 30; 2023
June 30, 2023
July I, 2022 to June 30. 2023
Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. The first amortized amounts are recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of a ll members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.

General Fund is typically used to liquidate OPEB liabilities to governmental funds.

U. Net Position
In governmenta l-wide and proprietary fund financial statements, net positions are categorized as follows:

Net Investment in Capital Assets - This category consists of capital assets, net of accumulated depreciation/amortization, reduced by the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of those assets and retention payable.

Restricted - This category represents net position that has external restrictions imposed by creditors, grantors, contributors or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.

Unrestricted - This category represents net position of the City that do not meet the definition of "net investment in capital assets" or "restricted."
When expenses are incurred for purposes for which both restricted and unrestricted net position are available, the City's policy is to apply restricted net position first, then unrestricted net position as they are needed.

V. Fund Balances
As prescribed by GASB Statement No. 54, governmental funds report fund balance in c lassifications based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the funds can be spent. Fund balances for governmental funds are made up of the followings:

Nonspendable Fund Balance - includes amounts that are (a) not in spendable form, or (b) legally or contractually required to be maintained intact. The "not in spendable form" criterion includes items that are not expected to be converted to cash, for example: prepaid items, prope1ty held for resale and long term notes receivable. 67 362
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City of Cupertino
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 1 - Summary of Significant Accounting Policies (Continued) V. Fund Balances (Continued)
Restricted Fund Balance - includes amounts that can be spent only for the specific purposes stipulated by external resource providers, constitutionally or through enabling legislation. Restricti9ns may effectively be changed or I ifted only with the consent of resource providers.

Committed Fund Balance - includes amounts that can only be used for the specific purposes determi ned by a formal action of the City's highest level of decision-making authority, the City Council. Commitments may be changed or lifted only by the City taking the same formal action (resolution) that imposed the constraint originally.

Assigned Fund Balance - comprises amounts intended to be used by the City for specific purposes that are neither restricted nor committed. Intent is expressed by the City Council or official to which the City Council has delegated the authority to assign amounts to be used for specific purposes. Through the adopted budget, the City Council establishes assigned fund balance policy levels and also sets the means and priority for the City Manager to fund these levels.

Unassigned Fund Balance - is the residual classification for the General Fund and includes all amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose. Only the General Fund reports unassigned positive fund balance. A governmental fund other than the General Fund may report a negative unassigned fund balance if expenditures incurred for a speci fie purpose exceed the amounts that are restricted, committed or assigned to those purposes.

In circumstances when an expenditure may be made for which amounts are available in multiple fund balance classifications, the fund balance in General Fund will generally be used in the order of restricted, unassigned, and then assigned reserves. In other governmental funds, the order will generally be restricted and then assigned.

W. Property Taxes
Propertv Tax Calendar - All property taxes are levied and collected by the County of Santa Clara. Secured taxes are levied on July I, are due in two installments on November I and February I and become delinquent after December IO and April I 0. Unsecured taxes are levied on July I and become delinquent on August 3 1. The lien date for secured and unsecured property taxes is January I.

The City, in fiscal year 1993-94, adopted an alternative method of property tax distribution (the "Teeter Plan").

Under this method, the City receives I 00 percent of its secured property tax levied in exchange for foregoing any interest and penalties collected on delinquent taxes. The City receives remittances as a series of advances made by the County during the year.

X. Use of Estimates
The preparation of the basic financial statements in accordance with U.S. GAAP requires management to make estimates-and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
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City of Cupertino
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 1 - Summary of Significant Accounting Policies (Continued) Y. Implementation of New GASB Pronouncements
GASB Statement No. 91 In May 20 19, GASB issued Statement No. 91, Conduit Debt Obligations (GASB Statement No. 9 I), to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with ( I) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial repo1iing of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. Implementation of this Statement did not have a significant effect on the City's financial statements for the fiscal year ended June 30, 2023.

GASB Statement No. 94 In March 2020, GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements (GASB Statement No. 94) to improve financi al reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). This Statement also provides guidance for accounting and financial reporting for availability payment arrangements (APAs).

Implementation of this Statement did not have a significant effect on the City's financial statements for the fiscal year ended June 30, 2023.

GASB Statement No. 96 ln May 2020, GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements (GASB Statement No. 96), to provide guidance on the accounting and financial reporting for subscription based information technology arrangements (SBITAs) for government end users (govenunents).

This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset- -an intangible asset and a corresponding subscription liability: (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs ofa SBITA; and (4) requires note disclosures regarding a SBITA. Implementation of this Statement had a significant effect on the City's financial statements for the fiscal year endedJune30,2023.

GASB Statement No. 99 - In April 2022, the GASB issued Statement No. 99, Omnibus 2022. The objectives of this Statement are to enhance comparability in accounting and financial repo1iing and to improve the consistency of authoritative literature by addressing ( I) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The Statement is effective immediately for the requirements related to extension of the use of LI BOR, accounting for SNAP distributions, disclosures ofnonrnonetary transactions, pledges of future revenues by pledging governments, clarification of certain provisions in Statement 34, as amended, and terminology updates related to Statement 53 and Statement 63. The Statement is effective for fiscal year years beginning after June 15, 2022 for requirements related to leases, PPPs, and SBITAS. Implementation of this Statement did not have a significant effect on the City's financial statements for the fiscal year ended June 30, 2023.

Z. Upcoming New GANB Pronouncements
The City is currently evaluating its accounting practices to determine the potential impact on the financial statements for the following GASB Statements:

In June 2022, GASB issued Statement No. I 00, Accounting Changes and Error Corrections - an Amendment of GASB Statement No. 62. The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. Application of this statement is effective for the City's fiscal year ending June 30, 2024. 69 364
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City of Cupertino
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 1 - Summary of Significant Accounting Policies (Continued) Z. Upcoming New GANB Pronouncements (Continued)
In June 2022, GASB issued Statement No. IO I, Compensated Absences. The objective of this Statement is to better meet the info1111ation needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. Application of this statement is effective for the City's fiscal year ending June 30, 2025.

In December 2023, GASB issued Statement I 02, Certain Risk Disclosures. The objective of this Statement is to provide users of government fi nancial statements with essential information about risks related to a government's vulnerabilities due to certain concentrations or constraints. That objective is achieved by requiring governments to assess whether a concentration or constraint makes the primary government reporting unit or other reporting units that report a liability for revenue debt vu lnerable to the risk of a substantial impact. The statement also requires a government to assess whether an event or events associated with a concentration or constraint that could cause the substantial impact have occurred, have begun to occur, or are more likely than not to begin to occur within 12 months of the date the financial statements are issued. Application of this statement is effective for the City's fiscal year ending June 30, 2025. Earlier application is encouraged.

In April 2024, GASB issued Statement I 03, Financial Reporting Model Improvements - The objective of this Statement is to improve key components of the financial reporting model. The purposes of the improvements are to (a) enhance the effectiveness of the financial repo1ting model in providing information that is essential for decision making and assessing a government's accountability and (b) address certain application issues identified through pre-agenda research conducted by the GASB. Application of this statement is effective for the City's fiscal year ending June 30, 2027. Earlier application is encouraged.

Note 2 - Cash and Investments
The City had the following cash and investments at June 30, 2023:

G>vernment-Wide
Statement ofNet Position
G>vernmental Business-Type
Activities Activities Total
Cash and investments $ 205,571.569 $ 11,372,546 $ 216,944.115 Restricted cash and investments:

Held by fiscal agent for pension 19.088,859 19,088.859
Total cash and investments $ 224.660.428 $ 11.372,546 $ 236,032.974 70 365
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City of Cupertino
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 2 - Cash and Investments (Continued)
The City's cash and investments at June 30, 2023, in more detail:

Cash on hand $ 3,586
Deposits with financial institutions 47,281.61 I
Total cash 47,285,197
In vestments 169,658,918
In vestments with PARS 19,088,859
Total investments 188,747,777
Total cash and investments $ 236,032.974
A. Deposits
The carrying amounts of the City's demand deposits were $47,281,61 1 at June 30, 2023. Bank balances at that date were $48,018,306 the total amount of which was collateralized or insured with accounts held by the pledging financial institutions in the City's name as discussed below.

Cash and Investments with PARS were related to the City's Pension Trust.

The California Government Code requires California banks and savings and loan associations to secure the City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name.

The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City's total cash deposits. The City may waive collateral requirements for cash deposits, deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation ("FDIC"). The City did not waive the collateral requirement for deposits insured by FDIC.

The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period-end cash and investment balances.

Interest income from cash and investments with fiscal agents is credited directly to the related fund. 71 366
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City of Cupertino
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 2 - Cash and Investments (Continued)
B. Investments Authorized by the California Government Code and the City's Investment Policy The following table identifies the investment types that are authorized for the City by the California Government Code (or the City's investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code ( or the City's investment pol icy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy: This does not include the City's investments of debt proceeds held by fiscal agents that are governed by the provisions of debt agreements of the City.

Authorized Investment Type
U.S. Treasury Oblig;itions
U.S. Agency Securities•
California Local Agency Investment Fund (LAIF)
Non-neb'lltiable Cenificates of Deposits (time deposits) Slate ofCalifomia registered state
warrants. lrcasury notes. or bonds
Califomia local a1,:ncy bonds. notes.
warrants, or other obli~t ions
Bond issued by the local agency
Bankers' Acceptances
Commercial Paper
Ne1'lltiablc Cenificates of Deposit
Repurchase Agreements
Medium Tenn Corperate Notes
Money market mutual funds investing
in U.S. Treasury . Government Agency
seaLriti"-'S or repurchase 31:feemcnls
collateralizecl by U.S. Treasury or
Government Agency securities
Supernationals
~la.ximum
Maturity
5 years
5 years
NIA
5 years
5 years
5 years
5 years
180 days
270 days
5 years
I year
5 years
5 years
5 years
~linirnum Credit
Quality
NIA
NIA
NIA
NIA
NIA
NIA
NIA
NIA
A-l+P-1
NIA
NIA
A or better
Aaa/AAA
AA or bater
tvla\llmun
Percent •b"' of
Pon folio
None
None
Up to S65 million
30%*•·
None
None
None
40~.
25%
30%
None
25%
20%
30%
'Securities issued by ab>e11cies oft he federal govemment such as the Government National Mon~i,oe Association (GNMA). •• Represe111s restric1ion in which the City's investment policy is more restrictive than the CaJifomia Government Code. '" 30% maximum percent of ponfolio if using a private sector entity to assist in the placement of the time deposits. No maximum 72 M a,\lmum Investment in
One Issuer
None
None
None
10% of ponfolio:
5% of issuer's net worth **
lone
None
None
!\one
I 0% of poI1 folio; 5% of issuer's
net worth; JO% ofoulstanding
paper of Issuer. ••
JO~, ofponfolio: 5~, of issuer's
net worth. ••
I 0% of pon folio; 5% of issuer's
ne1 worth. ••
JO% of ponfolio: 5% of issuer's
net worth. ••
None
I0¾of ponfolio
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City of Cupertino
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 2 - Cash and Investments (Continued)
C. Investments Authorized by Debt Agreements
The City must maintain required amounts of cash and investments with trustees or fiscal agents under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged reserves to be used if the City fails to meet its obligations under these debt issues. The California Government Code requires these funds to be invested in accordance with •c ity ordinances, bond indentures or State statutes. The City's Investment Policy allows investments of bond proceeds to be governed by provisions of the related bond indentures. The following identifies the investment types that are authorized for investments held by fiscal agents under the terms of the bond indentures of the related debt issue:

Authorized Investment Type
Cash or obligations of the U.S. including U.S. Treasury obligations Federal agencies obligations which represent
full faith and credit of the U.S.

Direct federal agencies obligations wh ich are not
fully guaranteed by the full faith and credit of the U.S.

U.S. dollar denominated deposit accounts, federal fui1ds and bankers' acceptances with domestic commercial banks
Commercial Paper
Money market funds
Pre-refunded municipal obligations that are not callable prior to maturity or as to wh ich irrevocable instructions have been given to call on the date specified in the notice
Municipal obligations or General obligations of states
California Local Agency Investment Fund (LAIF)
Shares in a California common law trust established pursuant to Title I, Division 7, Chapter 5 of the California Government Code wh ich invests exclusively in investments permitted by Section 53635 of Title 5, Division 2. Chapter of the California Government Code. as it may be an1ended.

D. Risk Disclosures
Disclosures Relating to Interest Rate Risk
Maximum
Maturity
NIA
NIA
NIA
360 days
270 days
NIA
NIA
NIA
NIA
NIA
Maximum
Minimum Credit Percentage of
Quality Portfolio
NIA None
NIA None
NIA None
P-1. A-I+, A-I None
P-1. A-I None
Aaan, or AAAm-G None
Highest
Rating Category None
Aaa.. AAA. A2, A None
NIA Up to $65 million
NIA None
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. • Generally, the longer the maturity ofan investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a pottion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash fl ow and 1 iquidity .needed for operations.
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City of Cupertino
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 2 - Cash and Investments (Continued)
D. Risk Disclosures (Continued)
Disclosures Relating to Interest Rate Risk (Continued)
Information about the sensitivity of the fair values of the City's investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity:

Remaining Maturity (In Months)
12 Months of More than 24
In vestment Type less 13 lo 24 Months Months Total
U.S. Treasury Securities $ 4,588;328 $ 12,214, 180 $ 36,160,305 $ 52,962,813 Corporate Notes 1,454,667 19,059,694 19,537.835 40.052,196 U.S. Agency Notes:

Federal Home Loan Mottgage Corporation 836,535, 2,232,499 3,408.904 6,477,938 Federal National Mortgage Association 8,574,094 4,540.665 13,114,759 Federal Home loan Banks 1,463,544 1,943,320 3,406,864
Municipal Bonds 726, 12 1 726,12 1
Asset-Backed Securities 329,142 4,647,343 11,558.949 16,535,434 Supranationals 2,747,746 6,683,579 9,431.325
Collateralized Mo1tgage Obligations 1,261,927 4,392,528 5,654,455 Local Agency Investment Fund 21,099,954 21 ,099,954
Money Markel Mutual Funds 197,059 197,059
Restricted investment with PARS 19,088,859 19,088,859
Total investments $ 51 ,805,834 $ 50,659, 178 $ 86,282,765 188,747,777 Cash in banks and on hand 47,285,197
Total Cas h and lnves tments $ 236,032,974
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfi ll its obligation to the holder of the investment. This is measured by the assignment ofa rating by a nationally recognized statistical rating organization.

Presented below is the minimum rating required by (where applicable) the California Government Code, the City's investment policy, or debt agreements, and the actual rating, by Standard and Poor's or Moody's', as of June 30, 2023 for each investmen.t type:
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City of Cupertino
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 2 - Cash and Investments (Continued)
D. Risk Disclosures (Continued)
Disclosures Relating to Credit Risk (Continued)
Investment Type Total AAA AA A Not Required
U.S. Treasul)' Securities $ 52,962,813 $ 52.962,813 $ $ $ Corporate Notes 40,052.196 12.4 15.464 27,636,732
U.S. Agency Notes
Federal Home Loan Mortgage Corporation 6,477,938 6.477.938 Federal National Mortgage Association 13, 11 4,759 13, 114,759 Federal Home Loan Banks 3,406,864 3.406,864
Municipal Bonds 726.1 21 726,121
Asset-Backed Securities 16,535,434 16.535.434
Supranationals 9.43 1,325 9,431.325
Collateralized Mo1tgage Obligations 5.654,455 5.654,455 Local Agency Investment Fund 21,099.954 21.099,954
Money Market Mutual Funds 197,059 197,059
Restricted investment with PARS 19,088,859 19,088.859
Total In vestments $ 188,747,777 $ !08.506. 768 $ 12,415.464 $ 27,636,732 $ 40,188,813 Disclosures Relating to Concentration of Credit Risk
The investment policy of the City contains no lirriitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. At June 30, 2023, the following investment represent 5% or more of total City investments:

Issuer Investment Type Amo unt Percentage
Federal National Mo,t gage Association (FNMA) U.S. Agency Notes $13,114,759 7% Disclosures Relating to Custodial Credit Risk
Custodial credit risk is the risk that, in the event of the failure of the counter party, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. All securities, with the exception of LA IF and other pooled investments, are held by a third-party custodian. 75 370
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City of Cupertino
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 2 - Cash and Investments (Continued)
E. Fair Value Measurement Disclosure
At June 30, 2023, investments are reported at fair value. The following table presents the fair value measurement of investments on a recurring basis and the levels within GASB 72 fair value hierarchy in which the fa ir value measurements fa ll at June 30, 2023:

Investments by Fair Value Level
U.S. Treasury Securities
Corporate Notes
U.S. Agency Notes
Federal Home Loan Mortgage Corporation
Federal National Mortgage Association
Federal Home Loan Banks
Asset-Backed Securities
Collateralized Mortgage Obligations
Supranationals
Municipal Bonds
Quoted Prices
in Active
Markets for
Identical Assets
(Level I)
$ 52,962.813 $
Significan t
Other
Observable
Inputs
(Level 2)

40.052.196

6.477,938

13.114.759

3.406,864

16.535.434
5,654,455

9.43 1.325
726, 12 1
Total Investments $ 52.962,8 13 $ 95.399,092
Investments Meas ured at Amortized Cost:

Money Markel Mutual Funds - Restricted lor Pens ion (PA RS) Money Markel Mutual Funds
lnvestments Exempt from Fair Value Hierarchy:

Local Agency Investment Fund
Cash in banks and on hand
Total Cash and Investments
F. Investment in Local Agency Investment Fund (LAIF)
Total
$ 52.962,813

40.052.1 96

6.477.938

13. 114.759

3.406.864

16.535.434

5.654.455

9.43 1.325
726.121
I 48.36 1.905

19.088,859
197,059
21 ,099.954

47.285.197
$ 236,032.974
The City is a participant in LAIF which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City's investments in LAIF at June 30, 2023 included a portion of pool funds invested in Structure Notes and Asset-Backed Securities:

Structured Notes are debt securities (other than asset-backed securities) whose cash-flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options.

Asset-Backed Securities, the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from pool of assets such as principal and interest repayments from a pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables. 76 371
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City of Cupertino
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 2 - Cash and Investments (Continued)
F. Investment in Local Agency Investment Fund (LAIF) (Continued) As of June 30, 2023, the City had $2 1,099,954 invested in LAlF, which had invested 2. 78% of the pool investment funds in Structured Notes and Asset-Back Securities. LAlF determines fa ir value on its investment po11folio based on market quotations for those securities where market quotations are readily avai I able and based on amo11ized cost or best estimate for those securities where market value is not readily available. LAIF is repo11ed at amortized cost, which approximates fair value.

Note 3 - Loans Receivable
Housing Program Loans
On June 30, 1995, the City loaned $82 1,000 to Community Housing Developers, a California nonprofit public benefit corporation. The note bears interest at three percent per annum, compounded annually, payable to the extent of surplus cash, and all unpaid principal and interest due June 30, 2035. As of June 30, 2023, the balance remaining on the loan was $ 1,878,389 including principal and interest in the amounts of $821,000 and $ 1,057,389, respectively. The loan was issued using resources in the amount of $417,000 and $404,000 in the General Fund and the Housing Development Special Revenue Fund, respectively and is considered governmental activities.

On June 6, 1996, the City loaned $320,000 to Cupe11ino Community Services, a California nonprofit public benefit corporation. The note bears interest at three percent per annum and due on July 14, 2026. As of June 30, 2023, the balance on the loan was$ I 35,87 1. The loan was issued using resources in the Housing Development Special Revenue Fund and is considered governmental activities.

On September 11 , 20 17 the City loaned $3,672,000 to Stevens Creek, L.P., a California limited pai1nership. The note bears interest at three percent per annum for 55 years. After the completion of construction of the development, no later than April 30th of each calendar year, the Developer shall make repayments of the loan in an amount equal to the City loan percentage of the lenders' share of residual recei pts. The payments shall be credited first against accrued interest and then against outstanding principal of the loan, and shall be accompanied by the developer's report of residual receipts. As of June 30, 2023, the balance remaining on the loan was $4,359,018 including principal and interest in the amounts of $3,672,000 ana $687,018, respectively in the Housing Development Special Revenue Fund and is considered as governmental activities.

Note 4 - Leases Receivable and Lease-Related Deferred Inflows of Resources The City leases various City assets to other entities via contractual arrangements under the provisions of GASB Statement No. 87, Leases. The leases include land leases utilized for cell phone towers as well as property leases of the McClellan Ranch House and the Cupertino Public Library. The City receives fi xed payments from the lessees, with a total of $220,308 recognized as rental revenue and $3 1,333 recognized as interest revenue on the lease for the year ended June 30, 2023 and a receivable for the remaining payments under the leases of $2,493,039.

A summary of changes in lease receivable for the year ended June 30, 2023 is as fo llows:

Balance
July I, 2022
$ 2,495,226 $
Additions
218,121
Retirements
Balance
June 30, 2023
$ (220,308) $ 2,493.039
77 $
Current
Portion
22 1,644 $
Long-term
Portion
2,271,395
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City of Cupertino
Notes to the·Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 4 - Leases Receivable and Lease-Related Deferred Inflows of Resources (Continued) At June 30. 2023, the required payments for these leases, including interest, are:

Year Ending NPV Leases Total Lease
June 30, Receivable lnteres t Payment
2024 $ 221.644 $ 29,203 $ 250,847
2025 215.649 27,022 242,671
2026 216,753 24,745 241,498
2027 227.844 22,348 250, 192
2028 238.976 19,832 258,808
2029-2033 930.850 60,105 990,955
2034-2038 335,529 17,807 353,336
2039-2041 105,794 1,720 !07,514
Total $ 2,493,039 $ 202,782 $ 2,695,821
At June 30, 2023, the amounts reported as deferred inflows of resources related to leases will be recognized as lease revenue as follows:

Year Ending
June 30, Amount
2024 $ 263,427
2025 248,416
2026 236,054
2027 236,054
2028 236,054
2029-2033 822,454
2034-2038 259,170
2039-2041 78,104
Total $ 2,379,733
Note 5 - Interfund Transactions
A. Advances
Interfund advances are balances between funds that are not expected to be repaid within the current fiscal year. As of June 30, 2023; the General Fund advanced $3,000,000 to the Capital Improvement Projects Capital Projects Fund for advance funding of planned projects that will be repaid in subsequent years. 78 373
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City of Cupertino
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 5 - Interfund Transactions (Continued)
B. Due from and To other Funds
At June 30, 2023, the City has the following due from and to other funds:

I Due From Other Funds
Governmental Funds:

General Fund
Due to Other Funds
Internal Serv ice
Funds Total
$ 1,395,657 $ 1,395,657
$ 1,395,657 $ 1,395,657
These interfund balances represent routine sho,t-term cash flow assistance.

C. Transfers in and Out
Transfers between funds during the fiscal year ended June 30, 2023 were as follows:

Transfers In
G:tvemmental Funds Pro~riela!! Funds
Capiial
Housing Public Facilities Improvement Recreation
Transponation Devclopmenl Corporation Projects Programs Non major Special Revenue Special Revenue Debt Capital Project Entequise Enterprise !Transfers Out I Cteneral Fund Fund Fund Service Fund Fund Fund Fund Go\'ernmentnl Funds:

General Fund $ s 3,000.000 $ 25,000 s 2,675,800 s 2,838, 147 s 376,000 s Transponation Special Revenue Fund 197.491
Capitnl Improvement Projects
Capital Projects Fund 800,000 23,600
Non major Ciovemmcntal Funds 61,140 1,650,000
Proprietary Funds:

Recreation Programs Enterprise Furrd 103, 119
$ 861,140 s 3.000,000 s 25.000 s 2,675,800 s 4,788.757 $ 376,000 23,600 Internal
Service
Funds Total
$ 3,429,398 S 12,344,345
197,491
&23.600

1.711.140
103.119
$ 3.429,398 S 15,179.695
Transfers provided funding for operating subsidies, capital projects, capital acquisitions, internal service funds personnel costs associated with staff special project, compensated absences and retiree health, and debt service. 79 374
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Note 6 - Capital Assets
City of Cupertino
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
A. Governmental Activities
A summa ry of changes in capital assets of the governmental activities for the year ended June 30, 2023 is as fo llows:

Balance
July I, 2022 Balance
(As Restated ) Additions Deletions Transfers June 30. 2023 Gowrnmental Acti\ities :

General Government Capital Asset:

CaJital assets not being depreciated:

Land $ 64,786,669 s s s S 64.786,669
Easements 19,615,039 19,615,039
Constniction in progress 23,398,649 10,658.074 (476,537) (5,104,793) 28,475.393 Total general go, l.!rnment capital assets not being depreciated 107.800,357 10,658,074 (476,537) __ (5) 04,793) 11 2,877,101 CaJital assets being depreciated:

Buildings 47,763,913 47.763,9 13
lmprovements other than buildings 61,263,926 359,435 61 ,623,361 Machinery and equipment 4,529,929 45,697 4,575,626
Roads. curbs, gutters, sidewalks, medians
and bridges 183,534,212 4,275,603 187,809,815
St reel lights 9.302,437 402,243 9,704,680
Stonn drain stmcturc and main s 37,373,158 37,373,158
Traffic signals 6.418.246 2 1.815 6.440.061
Total capital assets being depreciated 350.185,821 5,104,793 355.290,614 Less accumulated depreciation for:

Buildings (33,646.294) ( 1,612,633) (35,258,927)
Improvements otherlhan buildings (45,859,016) (2.390,853) (48,249,869) Machinery and equipmenl (3,306, II 0) (218,247) (3,524,357) Roads, curbs, gullers, sidewalks, medians and bridges (115,601,625) (2,839.730) ( 118,441,355) Streetlights (8,031,745) (431,927) (8,463,672)
Stonn drain strncture and mains (33,682,048) ( 149,952) (33,832,000) Traffic signals (5,910,218) ( 109,425) (6,019,643)
Total accumulated depreci ation (246,037,056) (7,752,767) (253,789,823) Total capital assets being depreciate,~ net 104,148,765 (7,752,767) 5,104.793 IO 1,500.791 Intangible assets, being amortized
Right-to-use subscription assets 1,490,232 964,745 2,454,977 Total intangible assets, being amortized 1.490,232 964,745 2.454,977 Less accumulated .amortization for:

Righi-to-use subs cription assets (574,289) (574,289)
Total accumulated amortization (574.289) (574,289)
Total intangible assets, being amortized, net 1,490,232 390,456 1,880,688 Total general go\'Crnment ca1lital asset, ne t 213,439,354 3,295,763 (476,537) 21 6,258.580 Internal Se nice fund Capital Assets:

Ca1ital assets not being depreciated:

Constrnction in progress 7,828 527,792 (4 16,212) I 19,408 Total internal fund capital
assets not being depreciated 7,828 527,792 (416,212) 119,408 Ca1ital assets being depreciated:

Machinery and equipment 12,769,434 (118,475) 416.212 13.067, 171 Less accumulated depreciation (9,798,894) (798.599) I 18,475 (I 0.4 79,0 I 8) Total internal fund ca1ital
assets being depreciate<~ ne t 2.970,540 (798,599) 416,212_ 2,588,153 Intangible assets, lx-ing amortized
Right-to-use subscription assets 282.968 24.866 307,834 Total intang i~e assets, being amortized 282.968 24.866 307,834 Less accumulated amortization for:

Right•to•use subscription assets (106.01 I) ( 106.01 I) Total accumulated amortization (1 06.0 1 I) (106,011)
Total intangible assets, being amortized, net 282,968 (81,145) 201,823 Total internal s enice fund capital assets, ne t 3,261,336 (35 1,952) 2,909,384 Gowrnmental acth ities capital assets, net S 216,700,690 $ 2,943,811 $ (476,537) s S 2 19,167,964 80 375
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City of Cupertino
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 6 - Capital Assets (Continued)
A. Governmental Activities (Continued)
B.

Depreciation and amortization expenses were charged to functions and programs based on their usage of the related assets. Depreciation and amortization expenses were charged to governmental activities as follows:

Governmental Activities Deereciation Amortization
Admin istration $ 189,942 $ 49.676
Innovation and technology 16,281
Administrative services 29,461 16,138
Parks and recreation 169,010 63.689
Community development 147.707
Public wo rks 7.348,073 297,079
Subtotal 7,752,767 574,289
Internal Service A llocation
Ad min is tration 247,725 9,170
Innovation and technology 21,642
Administrative services 55,264 2,979
Parks and recreation 73,072 11,757
Community development 27,266
Public wo rks 400,896 54,839
Subtotal 798,599 106,01 I
Total - Governmental Activ ities $ 8,551.366 $ 680,300
Business-Type Activities
A summary of changes in capital assets of the business-type activities for the year ended June 30, 2023 is as follows:

Balance Balance
July I, 2022 Additions Deletions Transfers June 30, 2023 Business-type activities:

Capital assets not being depreciated:

Construction in progress $ 184,667 $ 181,863 $ (8,299) $ $ 358,23 1 Total capital assets not being depreciated 184,667 181,863 (8,299) 358,23 1 Capital assets being depreciated:

Buildings 2.073,689 2.073,689
Improvements other than buildings 2, 175,914 2,175,914
M achinety and equ ipment 743,453 8.299 751. 752
Total capital assets being depreciated 4,993,056 8,299 5,001,355 Less accumulated depreciation for:

Buildings (573,223) (81,796) (655,019)
Improvements other than buildings (1,860,740) (5 1.912) (1,912,652) Machinety and equipment (654,191) (28, 132) (682,323)
Total accumulated depreciation (3,088,154) (161,840) (3,249,994) Total capital assets being depreciated, net 1,904,902 (161,840) 8,299 1,75 1,361 Business-type activity capital assets, net $ 2,089,569 $ 20,023 $ $ $ 2, 109,592 81 376
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City of Cupertino
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 6 - Capital Assets (Continued)
B. Business-Type Activities (Continued)
Depreciation expense was charged to the business-type activities as follows:

Business-Type Activ ities Deereciation
Cupertino spo1ts center $ 111.438
Recreation program 47,057
Blackbeny farm 2.832
Resources recovery 513
Total $ 161,840
Note 7 - Long-Term Liabilities
A. Governmental Activities
A sommary of changes in long-term liabilities for governmental activities for the year ended June 30, 2023 is as follows:

Balance
July I, 2022 Balance Current Long-tem1
(As Restated) Additions Retirements June 30, 2023 Portion Portion 2020A Certificates of Participation $ 18,020,000 $ $ ( 1,955,000) $ 16,065,000 $ 2,035,000 $ 14,030,000 Issuance Premium 3,248,829 (464,118) 2,784,711 2,784,711 Subscription liabilities 1,773,200 989,61 1 (735,521) 2,027,290 783,067 1,244,223 Claims payable 1,569,000 765, 116 (111,330) 2,222,786 382,000 1,840,786 Compensated absences 4,690,321 797,673 (406,434) 5,081,560 501,158 4,580,402 Total long-tenn liabilities $ 29,30 I ,350 $ 2,552,400 $ (3,672,403) $ 28, 181,347 $ 3,701,225 $ 24,480,122 2020 A Certificates of Partici[!ation
The Cupe11ino Public Facilities Corporation issued Certificates of Participation to provide financing for the construction of the Community Center, improvements of the City Hall and the Library in July 1986; purchase of Wilson Park in 1989; finance the Memorial Park Expansion in 1990; and purchase the Blackberry Farm and Fremont Older site in 1991. The Cupe11ino Public Facilities Corporation, as lessor, leased real property to the City (under the Lease Agreement with the lessee) and assigned the base rental payments to the trustee for the benefit of the owners of the ce11ificates of pa11icipation. The _rental payments which represent the pledged revenues are scheduled to be sufficient in both time and amount, when the principal and interest of the ce11iftcates are due, which was the case for the year ended June 30, 2023.

On May 9, 2012, $43,940,000 principal amount of 2012 Refinancing Certificates of Participation (20 12 COPs) were issued to refund the 2002 COPs, to fund a reserve fund for the 20 12 COPs, and pay costs incurred in connection with issuance.

On September 29, 2020, $22,040,000 principal amount of 2020A Certificates of Pa11icipation (2020 COPs) were issued to refund the 2012 COPs and pay costs incurred in connection with issuance. The proceeds were placed into an escrow account, along with funds from the City's 20 I 2 COPs Reserve and on October 30, 2020, the 20 12 COPS were prepaid, resulting no amounts outstanding as of June 30, 2023 for the 2012 COPs. The result of the transaction was an economic gain of $3,133,8 19.
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City of Cupertino
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 7 - Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
2020 A Certificates of Participation (Continued)
The 2020A COPs are payable by a pledge of revenues from the lease payments payable by the City pursuant to the Lease Agreement between the Cupertino Public Facilities Corporation and the City for the use and possession of the Site and Facility as described in the Lease Agreement. The City also covenanted in the Lease Agreement to include all lease payments in its annual budget. Total debt service payments remaining on the 2020 COPs is $ 18,736,200 payable through June I, 2030. For the year ended June 30, 2023, the bonds had $1,955,000 of principal and $720,800 interest due. The annual debt service requirements on these certificates are as follows:

Year Ending
June 30, PrincieaI Interest Total
2024 $ 2,035.000 $ 642,600 $ 2,677,600
2025 2,11 5.000 561,200 2,676,200
2026 2,200,000 476,600 2,676.600
2027 2,285,000 388,600 2.673.600
2028 2,380.000 297.200 2,677,200
2029-2030 5,050.000 305,000 5.355,000
Total $ 16.065,000 $ 2,671 ,200 $ 18,736,200
Subscription Liabilities
The City has entered into subscriptions for information technology arrangements. The terms of the arrangements range from 24 to 63 months with implicit rates used between 1.710% to of3.331%. Principal and interest to maturity are as fo llows:

Year Ending
June 30, Principal Interest Total
2024 $ 783,067 $ 43,045 $ 826,112
2025 710,777 26,433 737,210
2026 481 ,502 11 ,133 492,635
2027 51,944 1,424 53,368
Total $ 2,027,290 $ 82,035 $ 2,109.325
Compensated Absences
The long-term portion of compensated absences payable has been accrued for the Governmental Activities on the Government-Wide Financial Statements. In prior years, the General Fund has typically been used to liquidate the liability. The balance outstanding at June 30, 2023 was $5,081 ,560.

Claims Payable
Refer to Note IO for more details.
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Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 7 - Long-Term Liabilities (Continued)
B. Business-Type Activities
The following is a summary of changes in long-term liabilities for business-type activities for the year ended June 30, 2023:

Compensated absences
Total long-tenn liabilities
Compensated Absences
Balance
Juli'. I, 2022
$ 216,636 $
$ 216,636 $
Additions Retirements
52,873 $ (49,268)
52,873 $ (49,268)
Balance Current Long-tem1
June 30, 2023 Portion Portion
$ 220,241 $ 10,492 $ 209,749
$ 220,241 $ 10,492 $ 209, 749
All vested vacation and compensatory leave time is recognized as an expense and as a liability in the business-type funds at the time the liability vests. All of the enterprise funds of the City have been used to liquidate the liability.

The balance outstanding at June 30, 2023 was $220,241.

Note 8 - Defined Benefit Pension Plan
Below is a summary of the deferred outflows of resources, net pension liabilities and deferred inflows of resources by Pl an at June 30, 2023 :

Deferred Outflows of
Resources Net Pens ion Liabilit2:'._
DefeJl'ed Inflows of
Resources
1\11 iscellaneous Plan $ 18,126,053 $ 55,840,898 $ 137,371 A. General Information about the Pension Plan
Plan Descriptio_n
The City contributes to the California Public Employees' Retirement System ("CalPERS"), an agent multipleemployer public employee defined benefit pension plan. Cal PERS acts as a common investment and administrative agent for participating public entities within the State of Californ ia .. Benefit provisions and al.I other requirements are established by state statute and City ordinance. A full description of the pension plan regarding number of employees covered, benefit provisions, assumptions (for funding, but not accounting purposes), and membership infonnation are listed in the Annual Actuarial Valuation Report. This report and CalPERS' audited financial statements are publicly available reports that can be obtained at CalPERS' website at www.calpers.ca.gov under Forms and Publications.

Benefit Provided
CalPERS provides service retirement and disabil ity benefits, annual cost of living adjustments and death benefits -to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. A II members are eligible for non-duty disability benefits after IO years of service.

The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law. 84 379
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City of Cupertino
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 8 - Defined Benefit Pension Plan (Continued)
A. General Information about the Pension Plan (Continued) Benefit Provided (Continued)
The Pension Reform Act of2013 (PEPRA), Assembly Bill 340, is applicable to employees new to CalPERS and hired after December 31 , 20 I 2. The Plans' provisions and benefits in effect at June 30, 2023, are summarized as follows:

Benefit fonnula
Benefit vesting schedule
Benefit payments
Minimum retirement age
Monthly benefits, as a% of eligible compensation
Required employee contribution rates
Required employer contribution rates
Hire date
Prior to Jan uaIy I ,
2013

2.7%@55
5 years serv ice
monthly for lite
50 2% to 2.7%

8.00%

9.74%
On or after Janua1y I,
2013

2.0%@62
5 years serv ice
monthly for life
52 1% to 2%

7.00%

9.74%
Participant is eligible for non-industrial disability retirement if becomes disabled and has at least 5 years of credited service. There is no special age requirement. The standard non-industrial disability retirement benefit is a monthly allowance equal to 1.8 percent of final compensation, multiplied by service. Industrial disability benefits are not offered.

An em.ployee's beneficiary may receive the basic death benefit if the employee dies while actively employed. The employee must be actively employed with the City to be eligible for this benefit. An employee's survivor who is eligible for any other pre-retirement death benefit may choose to receive that death benefit instead of this basic death benefit. The basic death benefit is a lump sum in the amount of the employee's accumulated contributions, where interest is currently credited at 7 .5 percent per year, plus a lump sum in the amount of one-month salary for each completed year of current service, up to a maximum of six-months salary. For purposes of this benefit, one month's salary is defined as the member's average monthly full-time rate of compensation during the 12 months preceding death.

Upon the death of a retiree, a one-time lump sum payment of $500 will be made to the retiree's designated survivor(s), or to the retiree's estate.

Benefit terms provide for annual cost-of-living adjustments to each employee's retirement allowance. Beginning the second calendar year after the year of retirement, retirement and survivor allowances will be annually adjusted on a compound basis by 2 percent.

Emplovees Covered by Benefit Terms
As of the June 30, 202 1 actuarial valuation date (most current), the following employees were covered by the benefit terms of the Plan:

Active employees
Trans fe1Ted and tenninated employees
Retired Employees and Beneficiaries
Total
85 205
169
273
647
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Notes to the Basic Financial Statements (Continued)
For the Yea·r Ended June 30, 2023
Note 8 - Defined Benefit Pensio·n Plan (Continued)
A. General Information about the Pension Plan (Continued) Contributions
Section 20814( c) of the California Public Employees' Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July I following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by Ca!PERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

B. Net Pension Liability
Actuarial Methods and Assumptions Used to Determine Total Pension Liability The June 30, 2021 val uation was rolled forward to determine the June 30, 2022 total pension liability, based on the following actuarial methods and assumptions:

Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Salary Lncreases
Mo1tality Rate Table1
Post Retirement Benefit Increase
Entry Age Nonml in accordance with the requirement of GASB Statement No. 68

6.90%

2.30%
Varies by Ent1y Age and Se,vice
Derived using CalPERS' Membership Data for all Funds.

The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter
1 The mo1tality table used was developed based on CalPERS-specific data. The probabilities of m01tality are based on the 2021 CalPERS Experience Study tor the period from 2001 to 2019. Pre-retirement and Post-retirement mo1tality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS S'i()erience Study and Review of Actuarial Ass umptions repo,t from November 2021 that can be found on the CalPERS website.

Change of Assumptions
Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, Cal PERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected po1ifolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. 86 381
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Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 8 - Defined Benefit Pension Plan (Continued)
B. Net Pension Liability (Continued)
Long-term Expected Rate of Return
The long-term expected rate of return on pension plan investments was dete1111 ined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all of the funds' asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points. The expected real rates of return by asset class are as fol lows:

Asset Class 1
Global Equity - Cap-weighted
Global Equity - Non-Cap-weighted
Private Equity
Treasu1y
Mo1tgage-backed Securities
In vestment Grade Corporates
High Yield
Emerging M arket Debt
Private Debt
Real Assets
Leverage
1 An expected in flat ion o f2.30% used for this period.

Assumed
Asset
Allocation

30.00%

12.00%

13.00%

5.00%

10.00%

5.00%

15.00%
-5.00%
I00.00%
?
- Figures are based on the 2021 Asset Liability Management study.

Discount Rate
Real Return , ,2

4.54%

3.84%

7.28%

0.27%

0.50%

1.56%

2.27%

2.48%

3.57%

3.21%
-0.59%
The discount rate used to measure the total pension liability was 6.90%. The projection of cash tlows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily req uired rates, actuarially determined. Based on those assumptions, the Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability. 87 382
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Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 8 - Defined Benefit Pension Plan (Continued)
C. Changes in the Net Pension Liability
The following table shows the changes in net pension liability for the City's Miscellaneous Plan recognized over the measurement period.

Miscellaneous Plan
Increase (Decrease)
Total Pension
Liabili~
Plan Fiduciary Net
Position (b)
Net Pens ion Liability
(c) = (a) - (b)
Balance at June 30, 2021 (Valuation Date) $ 161,1 80,149 $ Changes in the y ear:

Service cost 3.614.486
Interest on the total pension liability 11.3 12,835
Change of Benefit Te1111s
Change of Assumptions 5.380,881
Differences between actual and expected experie1 ( 188.249) Contribution - employer
Contribution - employee
Net investment income
Administrative expenses
Other miscellaneous income/(expenses)
Benefit paymen ts, including refunds o f employee
contributions (8,45 1,800)
Net Changes during July I, 2021 to June 30, 2022 11,668,153 Balance at June 30, 2022 (Measurement Date) $ 172,848,302 $ Sensitivity of the Net Pension Liability to Changes in the Discount Rat~ 127,12 1.572

6.396,030
1,632,86 1
(9,612,070)
(79.189)
(8,451 ,800)
(10,114,168)
117,007,404
$
$
34,058,577
3,614,486

11.3 12,835
5,380.88 1
(188,249)
(6,396,030)
( 1.632,86 1)
9,612.070
79,189
21,782,321
55,840,898
The following presents the net pension liability of the plans as of the measurement date, calculated using the discount rate of 6.90%, as well as what the net pension liability would be if it were calculated using a discount rate that is I percentage-point lower (5.90%) or I percentage-point higher (7.90%) than the current rate:

Miscellaneous Plan
Pension Plan Fiduciary Net Position
Plan's Net Pension Liability/(Asset)
Discount Rate
- I% (5.90%)
$ 79,168,477
Current Discount
Rate (6.90%)
$ 55,840,898
Discount Rate
+ 1% (7.90% )
$ 36,670,370
Detarled information about the plan's fiduciary net position is available in the separately issued CalPERS financial report.
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Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 8 - Defined Benefit Pension Plan (Continued)
C. Changes in the Net Pension Liability (Continued)
Pension Expense (Credit) and Deferred Outflows and Deferred Inflows of Resources Related to Pensions For the year ended June 30, 2023, the City recognized pension expense of $8,200,508. As of June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Miscellaneous Plan
Deferred outflows Deferred inflows
of Resources of Re sou recs
Pension contribution made after measurement date $ 7.183,364 $ Changes o f assumptions 3.926.589
Difference between e)q>ected and actual experience 1.057,512 ( 137.371 ) Net difference between projected and actual earning on
pension p Ian investments 5,958,588
Total $ 18, 126,053 $ ( 137.371 )
The amounts above are net of outflows and inflows recognized in the 2021-22 measurement period expense.

The expected average remaining service lifetime ("EARSL") is calculated by dividing the total future service years by the total number of plan pa11icipants (active, inactive, and retired). The EARSL for the miscellaneous plan for the 202 1-22 measurement period is 3. 7 years, which was obtained by dividing the total service years of 2,275 (the sum of remaining service lifetimes of the active employees) by 6 12 (the total number of participants: active, inactive, and retired).

The $7, 183,364 of contributions for the fiscal year ended June 30, 2023 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2024.

Other amounts reported as deferred inflows of resources related to pensions wi II be recognized as pension expense as follows:

Measurement
Period
Ending June 30
2023
2024
2025
2026
2027
Thereafter
Total
89 Deferred
0 U tfl O\\S / (In fl O\~ )
$ 3,069,776
$
2,637,405
1,426,385
3,67 1,752
I0,805,318
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Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 9 - Other Post Employment Benefits (OPEB)
A. General Information about the OPEB Plan
Plan Description
Permanent employees who retire under the City's CalPERS retirement plan are, pursuant to their respective collective bargaining agreements, eligible to have their medical insurance premiums paid by the City. Retirees receive the amount necessary to pay the cost of his/her enrollment, including the enrollment of his/her fami ly members, in a health benefit plan provided by CalPERS up to the maximum received by active employees in their respective bargaining unit.

The City contracts with CalPERS for this insured-benefit plan established under the state Public Employees' Medical and Hospital Care Act (PEMHCA). The plan offers employees and retirees three CalPERS' self-funded options, setup as insurance risk pools, or offers various third-party insured health plans. The plan's medical benefits and premium rates are established by CalPERS and the insurance providers. The City contribution is established by City resolution. Retirees and active employees pay the difference between the premium rate and the City's contribution. Premiums and City contributions are based on the plan and coverage selected by actives and retirees, with the City's potential contribution ranging from zero to $1,605 per month per employee or retiree. The responsibility for benefit payments has transferred to the insurers and the City does not guarantee the benefits in the event of default by the insurers. A comprehensive annual financial report of Cal PERS, inclusive of their benefit plans, is available at www.calpers.ca.gov.

The City participates in the Public Agency Retirement System (PARS) Public Agencies Post Retirement Health Care Plan Trust Program (PARS Trust), an agent-multiple employer irrevocable trust established to fund other postemployment benefits. The City Council adopted the PARS Public Agencies Post-Retirement Health Care Plan Trust, including the PARS Public Agencies Post-Retirement Health Care Plan, to fund medical insurance costs for its retired employees, effective February 17, 20 I 0. The City Council appointed the City Treasurer, or his/her successor or his/her designee as the City's plan administrator. The plan administrator is authorized to execute the PARS legal documents on behalf of the City and to take whatever additional actions necessary to maintain the City's participation in the Program and to maintain compliance of any relevant regulation issued or as may be issued; therefore, authorizing him/her to take whatever additional actions are required to administer the City's PARS Plan. The PARS Trust is approved by the Internal Revenue Code Section 115 and invests funds in equity, bond, and money market mutual funds. Copies of PARS Trust annual financial report is available at the City's Finance Department.

An employee is eligible for lifetime medical benefits under the OPEB Plan, along with his/her spouse or declared domestic partner at the time of retirement, if all criteria listed below are met:
• The employee was hired or the City Council member was elected prior to August I, 2004, and the employee has five or more full-time years of service and the City Council member has five or more years of electe_d service with the City of Cupertino; or
• The employee was hired or the City Council member was elected on or after August I, 2004, and the employee has ten or more full-time and/or elected years of CalPERS service, five years of which must be from the City of Cupe1iino; and
• The employee is eligible for retirement as defined under the CalPERS retirement systeni"; and the employee retires from the City of Cupe1iino.
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Notes to the Basic Financial-Statements (Continued)
For the Year Ended June 30, 2023
Note 9 - Other Post Employment Benefits (OPEB) (Continued) A. General Information about the OPEB Plan (Continued)
Plan Description (Continued)
In addition, the eligible employee's dependent children at the time of retirement who are under 23 years old are eligible for medical benefits. In addition to extending the eligibility of dependents from age 23 to age 26 in accordance with the recent healthcare refonn act, effective July I, 20 I 0, employees that retire or resign from service with the City of Cupe1iino and who are not eligible for retiree medical benefits can continue on the City's medical and dental plans provided that they pay the premiums in full.

Plan Members Covered by Benefit Terms
At June 30, 2023 (the latest information available), Plan membership consisted of the following:

Inactive plan members or beneficiaries currently receiving benefit payments Inactive plan members entitled to but not yet receiving benefit pay ments Active plan members
Contributions
156
0 171
327
OPEB Plan contributions are set by the adopted budget. The cost of the benefits provided by the OPEB Plan is currently being paid by the City on a fully pre-funded basis. Based on the actuarial valuation date of June 30, 2023, the annual required contribution rate is 7 .3 percent of annual covered payroll. For the year ended June 30, 2023, the City paid $ I ,753,000 in healthcare premium payments including implied subsidy. Plan members are not required to contribute to the plan.

B. Net OPEB Liability
The City's net OPEB liability was measured as of June 30, 2023 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of July I, 2023. Standard actuarial update procedures were used to project/discount from valuation to measurement dates.

Investment Rate of Return
The long-term expected rate of return on OPEB plan investments was detennined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of geometric real rates of return for each major asset class included in the target asset allocation as of June 30, 2023 (see the discussion of the Plan's investment policy) are summarized in the following table: •
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Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 9 - Other Post Employment Benefits (OPEB) (Continued) B. Net OPEB Liability (Continued)
Investment Rate of Return {Continued)
Asset Class
Fixed income - core
Fixed income - high yield
Equities - domestic
Equities - developed foreign
Equities - emerging foreign
Real estate
Cash
Investment Policy
Long-Term
Expected Real Rate
ofRetum

5.17%

8.06%

6.96%

9.94%

11.22%

7.67%

2.95%
The Plan's policy in regard to the allocation of invested assets is established and may be amended by the City Council by a majority vote of its members. It is the policy of the City Council to pursue an investment strategy that reduces risk through the prudent diversification of the portfolio across a broad selection of distinct asset classes.

The Plan's investment policy discourages the use of cash equivalents, except for liquidity purposes, and aims to refrain from dramatically shifting asset class allocations over short time spans. The following was the City Council's adopted asset allocation policy as of June 30, 2023:

Concentrations
Asset Class
Fixed income
Equities
Real estate
Commodities
Cash
Total
Target Allocation

29.00%

63.00%

5.00%

2.00%

1.00%
100.00%
The Plan did not have investments outside of mutual funds that comprise five percent or more of the Plan's total fiduciary net position.

Rate ofReturg
For the year ended June 30, 2023, the annual money-weighted rate of return on investments, net of investment expense, was I 0.94 percent. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. 92 387
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Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 9 - Other Post Employment Benefits (OPEB) (Continued) B. Net OPEB Liability (Continued)
Actuarial Assumptions
The total OPEB liability was determined by an actuarial valuation as of July I, 2023, using the previously listed actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified. Mortality rates were based on the CalPERS mortality assumptions.

Projections of benefits fo r financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with long-term perspective of the calculations.

The other significant actuarial assumptions used to prepare the City's June 30, 2023 actuarial valuation include the following:

Valuation date:

Measurement date:

Actuarial Cost Method:

Amo1tization Method:

A11101tization Period:

Asset Valuation Method:

Actuarial Assumptions:

Discount Rate
Amo1tization growth rate
Ultimate Rate of Medical Inflation
Salary increases
Mo1tality
Discount Rate
June 30. 2023
June 30, 2023
Entry Age Nonna!
Level percent of pay closed, 5.5 years as of.lune 30, 2023 10 year
Market value of Assets

6.50%

2.75%

4.25%

2.75% plus merit component based o n years of service
Ca!PERS mo1tality assumptions
The discount rate used to measure the total OPEB liability was 6.5 percent. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.
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Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 9 - Other Post Employment Benefits (OPEB) (Continued) C. Change in Net OPEB Liability
Changes in the Net OPEB Liability: The changes in the City's net OPEB liability (asset) are:

Net Increase (Decrease)
Total OPEB Plan Fiduciary Net
Liability (a) Position (b)
Balance at June 30, 2022 $ 29,87 1,000 $ 31,340.000
Changes in the year
Se1vice cost 1,260,000
Interest on the total OPEB liability 1.967.000
Change of assumptions (492,000)
Differences between actual and
expected experience 4,437.000
Cont1ibution - employer 1.753.000
Contribution - employee
Net investment income 3,484,000
Ad min is trative expenses (116.000)
Benefit payments. including refunds of
Employee contributions (I, 753.000) (I, 753,000)
Net Changes durin g July I, 202 1 to June 30. 2022 5.419,000 3,368,000 Balance at June 30, 2023 (Measurement Date) $ 35,290,000 $ 34,708,000 Sensitivity of the net OPEB Liability (Asset} to Changes in the Discount Rate Net OPEB Liability
(Asset)
(c) = (a) - (b)
$ (1,469.000)
1,260,000
1,967.000
(492.000)

4.437.000
(1,753.000)
(3,484,000)
116,000
2,051.000
$ 582,000
The fo llowing presents the net OPEB asset of the City, as well as what the City's net OPEB liability would be if it were calculated using a discount rate that is one-percentage-point lower (5.5 percent) or one-percentage-point higher (7.5 percent) than the current discount rate:
$
Plan's Net OP EB Liabili__.ty'-/(,._A_s_s_et.,_) ____ _ 1 % Decrease

5.50%
Current Discount
Rate 6.50%
4,827,000 $ 582,000 $
1 % Increase

7.50%
(2,959,000)
Sensitivity of the Net OPEB Liability (Asset) to Changes in the Health Care Costirend Rates The following presents the net OPEB asset of the City, as well as what the City's net OPEB liability would be if it were calculated using healthcare cost trend rates that are one-percentage-point lower (decreasing to 3.5 percent) or one-pe rcentage-point higher (increasing to 5.5 percent) than the current healthcare cost trend rates:
$
Plan's Net OPEB Liabili_,ty'-/(,_Ac.:.s.:... s e'-'t"-) ____ _ I% Decrease
Current Healthcare
Cost Trend Rate
(3, 11 9.000) $ 582,000 $
94 I% Increase

5.1 10.000
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Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 9 - Other Post Employment Benefits (OPEB) (Continued) D. OPEB Expense and Deferred Inflows of Resources Related to OPEB For the year ended June 30, 2023, the City recognized OPEB expense of $1,779,000. As of June 30, 2023, the City reported deferred inflows of resources related to OPEB from the following sources:

OPEB Plan
Deferred Outflows Deferred lnllo\\'s of
of Resources Res ources
Net difference between projected and actual
eamings on investments $ 1,864.000 $
Differences between expected and actual experience 3,697,000 1,874.000 Changes in assumptio n 609,000 410,000
$ 6,170,000 $ 2,284,000
The difference between projected OPEB plan investment earnings and actual earnings is amortized over a five-year period. The remaining gains and losses are amo11ized over the expected average remaining service life. The expected average remaining service life is 6 years, which was determined as of June 30, 2022, the beginning of the measurement period, for employees covered by the OPEB plan benefit terms.

Amounts repo11ed as deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows:

Measurement
Period
Ending June 30
2024
2025
2026
2027
2028
Thereafter
Total
Note 10 - Liabilities Under Self-Insurance and Risk Management Deferred
Outflo\\'s/(Inllow.;)
$ 696,000
(8.000)
2,176,000
367,000
655,000
$ 3,886,000
General and Property Liability: The City is self-insured for the first $250,000 of general and property liability for each occurrence, and the excess (up to $ 10,000,000 for each occurrence. and annual aggregate) is covered through the City's pat1icipation in the Pooled Liabi lity Assurance Network Joint Powers Authority (PLAN JP A - formerly the Association of Bay Area Governments Pooled Liability Assurance Network or ABAG PLAN). The risk pool consists of28 agencies within the San Francisco Bay Area. The stated purpose of the PLAN JPA is to provide certain levels of liability insurance coverage, claims management, risk management services, and legal defense to its pa11icipating members.

PLAN JPA is governed by a Board of Directors, which comprises officials appoi nted by each participating member.

Premiums paid to PLAN JPA are subject to possible refund based on the results of actuarial studies and approval by the Board of Directors. Complete financial statements for PLAN JPA may be obtained from their offices at the fo llowing address: PLAN JPA, c/o Sedgwick, 1750 Creekside Oaks Drive Suite 200, Sacramento, CA, 95833. Premiums are revised each year based on the City's claims experience and risk exposure. For the year ended June 30, 2023, the City paid the PLAN JPA premiums of$ 1,263,l9I.
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Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 10 - Liabilities Under Self-Insurance and Risk Management (Continued) Workers' Compensation Liability: The City belongs to the CSAC Excess Insurance Authority (EIA), a joint power authority which provides excess workers' compensation liability claims coverage above the City's self-insured retention of $500,000 per occurrence. Losses above the self-insured retention are pooled with excess reinsurance purchased to a $50,000,000 statutory limit. EIA was established in 1979 for the purpose of creating a risk management pool for all California public entities. EIA is governed by a Board of Directors consisting of representatives of its member public entities. Complete financial statements for ETA may be obtained from their offices at the fo llowing address: CSAC Excess Insurance Authority, Finance Department, EIA 75 Iron Point Circle, Suite 200, Folsom, CA 95630. For the year ended June 30, 2023, the City paid premiums of $158,781.

It is the City's practice to obtain biennial actuarial studies for the self,insured workers' compensation liability. The claims liabilities included in the workers' compensation internal service fund is based on the results of actuarial studies and include amounts for claims incurred but not reported and loss adjustment expenses. Claim liabilities are calculated considering the effects of inflation, recent claim settlement trends, including frequency and amount of payouts, and other economic and social factors. Inflation of 2.5 percent, annual rate of return of two percent, claim severity increase at 2.5 percent were assumed. In the current year, management used actuarial estimates based on a 90 percent confidence level.

Settlements have not exceeded insurance coverage in the past three years.

Changes in the balances of workers' compensation and general claims liabilities during the years ended June 30 are as follows:
2023 2022
Claims liability, beginning of year $ 1,569,000 $ 1,374,000 Incurred claims and changes in estimate 1,122,626 671 ,344 Claim payments and credits (468,840) (476,344)
Total claims liability, end of year 2,222,786 1,569,000 Less cu1Tent po1tio n . (382,000) (282,000)
Non-cu1Tent portion $ 1,840,786_ $ 1,287,000
Note 11 - Net Position and Fund Balances
A. Net Investment in Capital Assets
The fo llowing is the calculation of net investment in capital assets at June 30, 2023:

Cap ital assets, net of accumulated dep reciation and amortization Add: deferred charges on refunding
Less: outstanding principal on capital related debts
Less: bond premium
Less: subscription liabilities
Net investment in cap ital assets
96 Governmental Business-Type
Activities Activities
$ 219, 167,964 $ 2, I 09.592
159,478
(16,065,000)
(2.784,711 )
(2.027,290)
$ 198,450,441 $ 2, I 09,592
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Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 11 - Net Position and Fund Balances (Continued)
B. Fund Balance Classifications
At June 30, 2023, fund balances a re classified in the governmental funds as follows:

Capital
Public Facilities lnvestmenls
Cofl)Ornlion Projects Non major
Housing Debt Service Capital Projects Governmental
General Transeortation Developirenl Fund Fund Funds To1al Nonspendable:

Loans receivable s 970,962 s s 5,402,316 s s $ $ 6,373.278 Advances to olher funds 3,000,000 3,000,000
Inventories 21,383 21,383
Prepaid items 8,243 8,243
Sublotal 4,000,588 5,402,316 9,402,904
Restricted for:

Public access lelevision
Debt service
PARS Section 11 5 T111st 19.088,859 19,088,859
Public safety power shuloff
Debi services 1,750 1,750
Stonn drain system 3,993,672 3.993.672
Parks and open space 18,763,732 18,763,732
Environnl!ntal Jro.nagemenl 1,220,134 1,220,134
Streets and road projects 10,586,674 770,107 11 ,356,781 Housing programs 11,492,607 11,492.607
Sublotal 19,088,859 10,586,674 11,492,607 1,750 24,747,645 65,917.535 Conunitted for:

Economic uncertainty 24,000,000 24,000,000
Sustainability reserve 127.891 127.891
Capital project reserve 10,000,000 10,000,000
Subtolal 34,127,891 34,127,891
Assigned to:

Encumbrances 9,735, 187 9,735,187
Capital projecls 34,767,194 157,343 34,924,537
Subtotal 9,735,187 34,767,194 157,343 44,659,724
Unassigned 71,603,813 71,603,813
Total s I 38.556,338 $ 10,586,674 $ 16,894,923 $ 1,750 s 34,767,194 $ 24,904,988 $ 225,711 ,867 Note 12 - Commitments and Contingencies
A. Federal and State Grants
The City participates in a number of federal and s tate grant programs s ubject to financia l and compliance audits by the granters o r their repres entatives. Audits of ce1iain g rant programs, including those for the year ended June 30, 2023, have yet to be conducted. The amount, if any, of expe nditures that may be d isallowed by the granting agencies cannot be d e termined at this time. M a n agement believes that such dis allowances, if any, w ou ld not have a material effect on the financial statements.
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Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 12 - Commitments and Contingencies (Continued)
B. Encumbr.ances
The City uses encumbrances to control expenditure commitments for the year. Encumbrances represent commitments related to executor contracts not yet performed and purchase orders not yet filled. Commitments for such expenditure of monies are encumbered to reserve a portion of applicable appropriations. Encumbrances still open at year end are not accounted for as expenditures and liabilities, but as restricted, or assigned fund balance.

As of June 30, 2023, the City had the followi ng encumbrances outstanding:

Governmental Funds:

General Fund
Transportation Special Revenue Fund
Capital Improvements Projects Capital Projects Fund
Housing Development Special Revenue Fund
Non major Governmental Funds
Proprietary Funds:

Resource Recove1y Enterprise Fund
Cupertino Sports Center Enterprise Fund
Nonmajor Enterprise Fund
Internal Se1vice Funds
Total Encumbrances
C. Consulting Agreement for Sales Taxes
$ 9,735, 187
1,998,991
1,994,887
3,666
2,106.625
284,540
7,925
5,858
1,001.388
$ 17,139,067
The City entered into agreements (commitments) with two companies to provide services consisting of the assessment and creation of new sales and use tax revenue sources for the City. The City agreed to pay the companies based on a sliding scale payment schedule dependent on the level of new sales tax revenue realized by the City as defined in the consulting agreements. These agreements qualify as tax abatements under the provisions of GASB Statement 77. For the year ended June 30, 2023, the City abated taxes totaling $9,056,208.

D. Santa Clara County Vehicle Registration Fee (VRF)
The City is required to report VRF revenues, expenditures and fund balances for the year ended June 30, 2023:

VRF Balance as of July I. 2022 $
VRF Reven ue 343,735
YRF Interest
VRF E'\j)ended (343,735)
VRF Balance as or June 30, 2023 $ ========
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Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
Note 12 - Commitments and Contingencies (Continued)
E. Unasserted Claim
The City is aware of a probable reallocation of sales and use tax revenues pursuant to Revenue and Taxation Code Section 7209. Given the limited information available about this matter, the City is not able to predict the likelihood of an unfavorable outcome or the amount or the range of any potential loss. However, the City had $56.S million reserved for the potential reallocation.

Note 13 - Concentration Risk
The City has an economic dependency on revenues generated directly or indirectly from one company. For the year ended June 30, 2023, more than IO percent of the City General Fund's total revenues are derived from the company.

The City's operations would be adversely impacted if there are any significant declines in taxes received from the company.

Note 14 - Prior Period Adjustments
A. Government-Wide Financial Statements
The beginning net position was restated as following:

Net position at July I, 2022, as previously reported
Correction on the interest receivable related to loans
Net position at July I, 2022, as restated
B. Governmental Fund Financial Statements
The beginni ng fund balance was restated as following:

General Fund
Fund balances at July I. 2022. as previously reported $ I I 0, I 69,554 $ Interest receivable related to loans 509,278
Restatement o f unavailable revenue from loan receivable to fund balance ------ - Fund balances at J uly I, 2022, as restated $ 11 0,678,832 $ Governmental
Activities
$ 358.32 1,213
1,562,736
$ 359,883,949
I-lousing
Development
Special
Revenue Fund
7, 177.6 1 I
1,053,458
3,672,000
11 ,903,069 =======
99 T otal
$ 11 7,347.165

1.562. 736

3.672,000
$ 12 1.0 19, 165
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REQUIRED SUPPLEMENTARY

INFORMATION (UNAUDITED)
IOI
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Required Supplementary Information
Budgetary. Comparison Schedule - General Fund
-For the Year Ended June 30, 2023 ...

Original Final Variance with
Budget Budget Actua l Final Budget
REVENUES:

Taxes:

Property $ 30,039,574 $ 30,039,574 $ 3 1,889,638 $ 1,850.064 Sales 31 ,944,089 3 1,944.089 34.8 19,341 2,875,252
Transient occupancy 5,000,000 6,000.000 7,062, 150 1,062, 150 Utility user 2,955,404 2.955,404 4, I 03,906 I, 148.502 Franchise 3,230, I 0 1 3.230, 10 I 3,995,0 18 764,9 17
Other 1,787,69 1 1,787,69 1 1,471 ,789 (315,902)
Use of money and property 1,275, 11 3 1,275. 11 3 3,033,683 1.758,570 Intergovernmental 1,434,491 7.946,05 I 7,77 1,411 ( 174,640) Licenses and pern1its 3,541 ,0 12 34,057,523 4,093,631 (29,963,892) Charges for services 11,798,652 14.427,740 11 , 11 3,598 (3,3 14, 142) Fines and forfeitures 427,000 427,000 303,573 ( 123,427) Other revenue I, 160,437 I, 182,892 1,306.455 123,563
Total revenues 94,593,564 135,273, 178 11 0.964. 193 (24,308.985) EXPENDITUUES:

Current:

Administration I 0.944,795 10. 164.030 7,602.232 2,561 ,798 Law enforcement 16,8 14,5 19 16,814.5 19 15,276.950 1,537,569 Innovation and technology 3,32 1,862 2,774,746 1,825,667 949.079 Administrative services 7.386,069 7,278.86 1 5,976,301 1,302,560 Recreation services 7,461 ,888 7,663.132 5,432, 183 2,230,949 Community deve lopment 11 ,348,827 12,78 1,783 10,666.834 2,1 14,949 Public works 25,580,835 27, 184,374 23,879,927 3,304,447 Capital outlay 306.000 287.292 1,263.4 12 (976, 120)
Debt service:

Principal 626, 181 (626, 181)
Interest and fiscal charges 18.540 (18,540)
TOTAL EXPENDITURES 83, 164,795 84,948,737 72,568,227 12,380,510

EXCESS OF REVENUES OVER
EXPENDITURES 11 ,428,769 50,324,441 38,395,966 (11 ,928,475) OTHER FINANClNG SOURCES (USES):

Inception of subscription liability 964,745 964.745
Transfers in 6 1, 140 86 1, 140 861, 140
Transfers out ( 11 ,996,300) ( 12,453,2 13) ( 12,344,345) I 08,868 Total other financing sources (uses) ( 11 ,935, 160) ( 11 ,592,073) ( I 0,518,460) 1,073,6 13 NET CHANGE IN FUND BALANCE $ (506,391) $ 38,732.368 27,877,506 $ ( I 0,854.862) FUND BALANCE:

Beginning of year, as restated (Note 14) 11 0,678,8-32
End of year $ 138,556,338
103
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Required S upplementary Information
Budgetary Comparison .Schedule - Transportation Special Revenue Fund For the Year Ended June 30, 2023
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Use of money and property $ $ $ 2 11 ,271 $ 211.27 1
Intergovernmental 3,008.043 3.008,043 3,385,823 377,780 Charges for services 1,654 1,654 34,012 32.358
Other revenue 2.000 7,000
Total revenues 3.009.697 3.009,697 3,633.106 623.409 - -- EXPENDITURES:

Current:

Public works 4, 181,513 3.03 1.02 1 2,726,550 304,47 1
Capital outlay 3,2 17,800 4,944.938 4.950,786 (5,848)
TOTAL EXPENDITURES 7,399,3 13 7.975,959 7,677,336 298,623

EXCESS OF REVENUES OVER
EXPENDITURES (4.389,6 16) (4,966.262) ( 4.044.230) 922,032 OTHER FINANCING SOURCES (USES):

Transfers in 3,000,000 3.000,000 3,000,000
Transfers out ( 197,49 1) ( 197,491)
Total other financing sources (uses) 3,000,000 2,802,509 2,802,509 NET CHANGE IN FUND BALANCE $ ( 1.389.6 I 6) $ (2. I 63. 753) ( 1,24 1,721) $ 922.032 FUND BALANCE:

Beginning of year 11,828,395
End of year $ 10,586,674
104
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Required Supplementary Information
Budgetary Comparison Schedule - Housing Development Special Revenue Fund For the Year Ended June 30, 2023
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Taxes $ 8.002,202 $ 8.002,202 $ 170,824 $ (7,83 1,378)
Use of money and property 3,300 3.300 194,096 190,796
lntergovemmental 492. 181 492, 181 196.6 16 (295.565)
Charges for services 1,640 1,640
Other revenue 28,082 28.082
Total revenues 8,497,683 8,497,683 591 ,258 (7,906,425) EXPENDITURES:

Current:

Community development 1,777,397 2,058,3 10 1,026.720 1,031.590 TOTAL EXPENDITURES 1,777,397 2.058,3 10 1,026,720 1,03 1.590

EXCESS OF REVENUES OVER
EXPENDITURES 6.720,286 6.439,373 (435,462) (6,874,835)
OTHER FINANCING SOURCES:

Transfers in 25,000 25,000 25,000
Total other financing sources 25,000 25,000 25,000
NET CHANGE IN FUND BALANCE $ 6.745.286 $ 6.464.373 (4 10,462) $ (6.874.835) FUND BALANCE:

Beginning of year, as restated (Note 14) 11 ,903,069
End of year $ 11 ,492,607
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Budget and Budgetary Accounting
City of Cupertino
Required Supplementary Information
Notes to the Budgetary Comparison Schedules
For the Year Ended June 30, 2023
The budget of the City is a detailed operating plan which identifies estimated costs and results in relation to estimated revenues.

The budget includes (I) the programs, projects, services and activities to be provided during the fiscal year; (2) estimated revenue available to finance the operating plan; and (3) the estimated spending requirements of the operating plan. The budget represents a process through which policy decisions are made, implemented and controlled. The City prohibits expending funds for which there is no legal appropriation. Operating appropriations lapse at fiscal year end.

In May of each year, the City Manager submits to the City Council a proposed budget for the fiscal year beginning July I. Public hearings on the proposed budget are held during the month of June and the budgets for all fund types are legally adopted by Resolution prior to June 30. Original budget amounts are presented on the accompanying budgetary statements include these legally adopted amounts.

Budgets for governmental funds are adopted on a basis consistent with accounting principles generally accepted in the United States of America. The City's legal level of budgetary control is at the functional level for the general fund and at the fund level for other funds. The City Manager is responsible for controlling the City's expenditures in accordance with the adopted budget.

The City Manager is authorized to administer and transfer appropriations between budget accounts within the operating budget when in his opinion such transfers become necessary for administrative purposes. Any revision which increases total appropriations must be approved by the City Council. Requests for additional personnel or capital outlay also require the approval of the City Council.
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Required Supplementary Information (Unaudited)
Schedule of Changes in the Net Pension Liability and Related Ratios For the Year Ended June 30~, _20_2_3 ______ _
Last Ten f iscal Years 1
Agent Multiple Employer Defined Benefit Retirement Plan - Miscellaneons Plan Measurement period 2021-22 2020-2 1 2019-20 2018- 19
Total 11ension liability
Service cost $ 3,614,486 $ 3,392.942 $ 3,241 ,719 $ 3.324,361 Interest 11 ,312,835 10,907,002 10,302.395 9,800.245
Changes of benefit tenns
Changes of assumptions 5,380,881
Differences between expected and actual experience ( I 88,249) 2,212,836 444. 188 4,144,384 Benefit payments, including refunds of employee
contributions (8,451,800) (7,937,592) (6,815,494) (6, I 93,271) let change in total pension liability 11,668,153 8,575.188 7, 172,808 11 ,075,7 19 Total pension liability - beginning 16 1, 180,149 152,604,961 145,432,153 134,356,434 Total pension liability - ending (a) $ 172,848,302 $ 161, 180,149 $ 152,604,96 1 $ 145,432, 153 Pension fiduciary net 11osition
Contributions - employer $ 6,396,030 $ 5,957,595 $ 5,308,579 $ 4,654,841 Contributions - employee 1,632,861 1,560,532 1,429,446 1,364,731 Net investment income (9,61 2,070) 23,553,078 4,975,822 6,096,968 Benefit payments. including refunds of employee
contributions (8.45 1,800) (7,937,592) (6,815,494) (6,193,27 1) Net Plan to Plan Resource Movement
Administrative expense (79,189) (103,981) ( 140,036) (66,707) Other Miscellaneous lncome/(Expensef 216
Net change in plan fiduciary net position ( 10,114,168) 23,029,632 4,758,3 17 5,856,778 Plan fiduciary net position - beginning
j
127,121,572 !04.091 ,940 99.333,623 93,476,845
Plan fiduciary net position - ending (b) $ 11 7,007,404 $ 127,12 1,572 $ I 04,091,940 $ 99,333,623 Plan net pension liability - ending (a) - (b) $ 55,840,898 $ 34,058,577 $ 48,513,02 1 $ 46,098,530 Plan fiduciary net position as a percentage 67.69% 78.87% 68 2 1% 68.30% of the total pension liability
Covered payroll' $ 20,455,494 $ 20,427,103 $ 18,662,748 $ 18,46 1,490 Plan net pension liability as a percentage of cove red
payroll 272.99% 166.73% 259.95% 249.70%
2017-18
$ 3,058,629
9,065,322
(847,606)
I, 184,340
(6,051,845)
6,408,840
127,947,594
$ 134,356,434
$ 4,263,020
1,506,888
7,347,936
(6,051,845)
(2 16)
(135,263)
(256,867)

6.673,653
86,803,192
$ 93,476,845
$ 40,879,589

69.57%
$ 16,809,349
243.20%
'Historical infonnation is presented only for periods after GASS 68 was implemented in 2013- 14. Additional years of information wi ll be displayed as it becomes available.
2 During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASS 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California's agent OPEB plan Accordingly, Cal PERS recorded a one-time expense as a result of the adoption of GASS 75. Additionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017 - 18, Cal PERS recorded a correction to previously reported financial statements to properly renect its proportionate share of activity related to pensions in accordance with GASS Statement No. 68, Accounting and f inancial Reporting for Pensions (GASS 68).
3 Includes any beginning of year adjustment
' Includes one year's payroll growth using 2.80% payroll growth assumption for fiscal year ended June 30, 2022; 2.75% payroll growth assumption for tiscal years ended June 30, 20 18-21 ; 3.00% payroll gro\\1h assumption for fiscal years ended June 30, 20 14- 17.

Notes to Schedule:

Changes of Benefit Tenns: The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the Valuation Date arc not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.

Changes of Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to

6.90%. In detennining the long-term expected rate of return, Cal PERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project comp ound (geometric) returns over the long term. The discount rate used to discount liabilities was mformed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 Cal PERS Experience Study and Review of Actuarial Assumptions The accounting discount rate was

7. 15% for measuremem dates 20 17 through 202 I, 7.65% for measurement dates 20 I 5 through 2016, and 7 50% for measurement date 2014 108
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City of Cupertino
Required Supplementary Information (Unaudited)
Schedule of Changes in the Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2023
Last Ten Fiscal Years
Agent Multiple Employer Defined Benefit Retirement Plan - Miscellaneous Plan Measurement period 2016-17 2015-16 20 14-15 20 13-14
Total pension liability
Service cost $ 2,895.549 $ 2,525,314 $ 2,444,939 $ 2,504,228 Interest 8,6 I 9,588 8,253,983 7,789,134 7,349,943
Changes of benefit terms
Changes of assumptions 7,125,558 ( 1,883,633)
Differences between expected and actual experience ( 182,397) 696,347 372,917 Benefit payments, including refunds of employee
contributions (5,346,890) (5, 15 I ,298) (4,637,005) (4,351 ,614) Net change in total pension liability 13, 111,408 6,324,346 4,086,352 5,502,557 Total pension liability - beginning I 14,836,186 I 08,5 11 ,840 104,425,488 98,922,931 Total pension liability - ending (a) $ 127,947,594 $ 114,836, I 86 $ I 08,5 11 ,840 $ 104,425,488 Pension fiduciary net position
Contributions - employer $ 4. 183,822 $ 3,659, 170 $ 3,30 I ,642 $ 2,891 ,986 Contributions - employee 1.236,052 1,169,92 1 I, 149,894 1,06 I ,884 Net investment income 8,749,288 466,704 1,724,204 11 ,379,985 Benefit payments, including refunds of employee
contributions (5,346,890) (5, I 5 1,298) (4,637,005) (4,351 ,6 14) Net Plan to Plan Resource Movement
Administrative expense' (1 15,304)
Other Miscellaneous lncomc/(Expense)'
(47,536) (87,780)
Net change in plan fiduciary net position 8,706,968 96,96 1 1,450,955 ! 0,982,241 Plan fiduciary net position - beginning' 78,096,224 77,999,263 76,548,308 65,566,067 Plan fiduciary net position - ending (b) $ 86,803, 192 $ 78,096,224 $ 77,999,263 $ 76,548,308 Plan net pension liability - ending (a) - (b) $ 41 , 144,402 $ 36,739,962 $ 30,5 12,577 $ 27,877,180 Plan fiduciary net position as a percentage 67.84% 68.0 1% 71 .88% 73.30% of the total pension liability
Covered payroll' $ 15,595,136 $ 14,336,969 $ 13,504,966 $ 13,080,327 Plan net pension liability as a percentage of covered
payroll 263.83% 256.26% 225.94% 213.12%
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City of Cupertino
Required Supplementary Information (Unaudited)
Schedule of Plari Contributions - Pension
For the Year Ended June 302 2023
Last Ten Fiscal Years
Agent Multiple Employer De fined Benefit Retirement Plan - Misce llaneous Plan Fiscal Year End 2022-23 202 1-22 2020-2 1 20 19-20 20 18-1 9 Actuarially determined contribution 1 $ 7, 183,364 $ 6.396.030 $ 5.957.595 $ 5.308.579 $ 4,654.84 1 Contributions in re lation to the actuarially
determined contribution 1 (7. 183,364) (6,396.030) (5.957 .595) (5.308,579) (4,654,841) Contribution deficiency (excess) $ $ $ $ $
Covered payroll1 $ 2 1,028,248 $ 20,455,494 $ 20,427,1 03 $ I 8.662,748 $ 18,46 1.490 Contributions as a percentage of covered
payroll2 34. 16% 3 1.27% 29.17% 28.44% 25.2 1%
1 Employers are assumed to make contributions equal to the actuarially detennined contributions. However. some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. 2 Includes one year·s payroll growth using 2.80% payroll growth assumption for fiscal year ended June 30, 2022: 2. 75% payroll gro,-vth assumption for fiscal years ended June 30, 20 I 8- 2 1: 3.00% payro 11 growth assumption for fiscal years ended June 30. 20 I 4- 17.

Notes to Schedule:

The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2022-23 were derived from the June 30. 2020 funding valuation report.

Methods and assumptions used to detem,ine contribution rates:

Actuarial cost method
Amortization method
Asset valuation method
Inflation
Salary increases
Payroll Growth
Investment rate of return
Retirement age
Mortality
Entry Age Actuarial Cost Method
Level percentage of payroll, closed
Fair Value of Assets

2.50%
Varies by entry age and service

2.75%

7.00% net of pension plan investment and administrative expenses: inc ludes inflation.

The probabilities of retirement are based on the 20 17 CalPERS Experience study for the period from I 997 to 2015.

The probabilities of mortality are based on the 20 17 Cal PERS Experience Study, for the period from I 997 to 20 I 5. Pre-retirement and post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale M P-20 16 published by the Society of Actuaries.

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City of Cupertino
Required Supplementary Information (Unaudited)
Schedule of Plan Contributions - Pension (Continued)
For the Year Ended June 30, 2023
Last Ten Fiscal Years
Agent Multiple Employer Defined Benefit Retirement Plan - Miscellaneous Plan Fiscal Year End 2017-1 8 2016- 17 20 15- 16 20 14-15
Actuarially determi ned contribution $ 4,263,020 $ 4.1 83,822 $ 3.659, 170 $ 3.30 I ,642 Contributions in relation to the actuarially
determined contribution I (4,263,020) (4,183,822) (3,659.170) (3.30 1.642) Contribution deficiency (excess) $ - $ $ $
Covered payroll2 $ 16,809.349 $ 15.595.1 36 $ 14,336,969 $ 13,504,966 Contributions as a percentage o f covered
payroll
2 25.36% 26.83% 25.52% 24.45%
111
20 13- 14
$ 2.89 1,986
(2.89 1,986)
$
$ 13,080,327

22.11 %
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City of Cupertino
Required Supplementary· Information (Unaudited)
Schedule of Changes in the Net OPEB Liability and Related Ratios For the Year Ended June 30, 2023
Last Ten Fiscal Years*
Expressed in lhousands
Single Employer Defined Benefit Other Post Employment Benefit Plan Measurement period 2022-23 2021-22
Total OPEB liability
Service cost $ 1.260 $ 1,015
Interest 1,967 1,92 1
Changes of benefit terms
Difference between expected vs actual experience 4,437
Changes or assumptions (492)
Benefit payments. including refunds of employee contributions (1,753) ( 1.69 f) Net change in total OPEB liability 5.41 9 1,245
Total OPEB liability - beginning 29.871 28.626
Total OPEB liability - ending (a) $ 35,290 $ 29,871
Contributions - employer • 1.753 1.691
Net investment income 3.484 (6.568)
Benefit payments (1,753) ( 1.69 I)
Administrative expense ( 11 6) ( 117)
Net change in fiduciary net position 3,368 (6,685)
Plan fiduciary net position - beginning 31,340 38.025
Plan fiduciary net position - ending (b) $ 34,708 $ 31 ,340 Net OPEB liability (asset) - ending (a-b) $ 582 $ ( 1,469) Plan fiduciary net position as a percentage 98.35% 104.92% of the total OPEB liability
Covered employee-payroll" $ 27,344 $ 24,015
Plan OPEB liability as a percentage of covered payroll 2.13% -6.1 2% Notes to Schedule:
* Fiscal year 20 17 was the 1
st year of implementation, therefore only seven (7) years are shown. 11 2
2020-21
$ 844
2,042
(4.688)
640
( 1,550)
(2,712)
3 1)38
$ 28,626
1,550

8.776
( 1,550)
( 121)

8.655
29,370
$ 38,025
$ (9,399)
132.83%
$ 23,082
-40.72%
2019-20
$ 1,009
1,985

1.41 2
(I, 141)
3,265
28,073
$ 3 1,338
1, 141
2 19
( 1.141 )
(67)
152

29.2 18
$ 29,370
$ 1,968

93.72%
$ 21,643

9.09%
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City of Cupertino
Required Supplementary Information (Unaudited)
Schedule of Changes in the Net OPEB Liability and Related Ratios (Continued) For the Year Ended June 30, 2023
Last Ten Fiscal Years*
Expressed in thousands
Single Employer Defined Benefit Other Post Employment Benefit Plan Measurement period 2018-19
Total OPEB liability
Service cost $ 865
Interest 2,005
Changes of benefit terms
Actual vs. expected experience ( 1,808)
Changes of assumptions (37)
Benefit payments, including refunds of employee contributions ( 1,423) Net change in total OPEB liability (398)
Total OPEB liability - beginning 28,471
Total OPEB liability - ending (a) $ 28,073
Contributions - employer 1,423
Net investment income 1,259
Benefit payments ( 1,423)
Administrative expense (97)
Net change in fiduciary net position 1, 162
Plan fiduciary net position - beginning 28,056
Plan fiduciary net position - ending (b) $ 29,2 18
Net OPEB liability (asset) - ending (a-b) $ (I , 145)
Plan fiduciary net position as a percentage 104.08%
of the total OPEB liability
Covered employee-payroll ' $ 20,086
Plan OPEB liability as a percentage of covered payroll -5.70% Notes to Schedule:
* Fiscal year 20 17 was the I" year of implementation, therefore only seven (7) years are shown. 11 3
20 17- 18
$ 1.008
1,876
( 1,419)
1,465
27,006
$ 28,471
1,419
2,365
( 1,419)
(54)
2,31 1
25,745
$ 28,056
$ 415

98.54%
$ 19, 153

2.1 7%
2016-17 .
$ 908

1.781
( 1,333)
1,356
25,650
$ 27.006
1,333

2.960
( 1,333)
(49)
2,911
22,834
$ 25,745
$ 1,261

95.33%
$ 17,255

7.3 1%
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City of Cupertino
Required Supplementary Information (Unaudited)
Schedule of Plan Contributions - Other postemployment Benefits For the Year Ended June 30, 2023
Last Ten Fiscal Years*
Single Employer Dclined Benclit OPEB Plan
2022-23 2021-22 2020-2 1 20 19-20 2018-19
Actuarially detem1ined contribution $ 147 $ 129 $ 124 $ 1,40 1 $ 1,300 $ Contributions in relation lo the actuarially
determined contribution 1,753 1,691 1,550 1, 141 1,423
Contribution deficiency (excess) $ ( 1,606) $ ( 1.562) $ (1 ,426) $ 260 $ ( 123) $ Covered payroll $ 27,344 $ 24,0 15 $ 23,082 $ 21 ,643 $ 20,086 $ Contributions as a percentage of covered
payroll -6.41% -7.04% -6.72% -5.27% -7.08%
• - Fiscal year 20 I 7 was the I st year of implementation, 'therefore only seven (7) years are shown.

Notes to Schedule:

Valuation Date 7/ 1/2023
2017-18 20 16-17
1,362 $ 1, 117
1,419 1,333
(57) $ (216)
19, 153 $ 17,255
-7.41 % -7.73%
Timing
Actuarially detennined contributions are calculated based on the most recently performed actuarial valuation, which for the fiscal year end 2023, was the 7/ 1/2023
Methods and assumptions used to determine contribution rates:

Actuarial cost method
Amortization method
Asset valuation method
Discount rate
Amortization growth rate
Ultimate rate of medical inflation
Salary increases
Mortality
Entry Age
Level Percent of Pay. Closed, 5.5 years as of7/ 1/2023
Market value of assets

6.50%

2.75%

4.250%

2.75% plus merit component based on years of service
CalPERS mortality assumptions
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11 5

SUPPLEMENTARY

INFORMATION
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City of Cupertino
Major Governmental Funds
Other than the General Fund and Special Revenue Funds
This section is provided for the presentation of budget-to-actual schedules for the Public Facilities Corporation Debt Service Fund and the Capital Improvement Projects Capital Projects Fund. Although the funds are considered to be major government funds. budget- toactual information in the required supplementary information is limited to the General Fund and major Special Revenue Funds. All other major governmental fund schedules with such information are therefore included as Supplemental Information.

Public Facilities Corporation Debt Service Fund - This fund accounts for the payments of principal and interest on certificates of participation issued to provide for the financing of the Civic Center. Library. Wilson Park, Memorial Park. and other City facilities.

Capital l111prove111e11t Projects Capital Projects Fund - This fund accounts for activities related to the acquisition or construction of major capital facilities.
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City of Cupertino
Schedule of Revenues, Exp~nditures, and Changes in Fund Balance - Budget and Actual Public Facilities Corporation Debt Service Fund
For the Year Ended June 30, 2023
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Use of money and property $ $ $ (5, I 00) $ (5.100)
Total revenues (5,1 00) (5.100)
EXPENDITURES:

Current:

Administration 1,500 ( 1.500)
Debt service:

Principal 1.955,000 1,955,000 1,955,000
Interest and fiscal charges 720,800 720.800 720,800
Total expenditures 2,675.800 2,675.800 2.677,300 ( 1,500)

EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (2.675.800) (2,675,800) (2,682,400) (6,600) OTHER FINANCIN SOURCES:

Transfers in 2,675,800 2.675,800 2,675.800
Total other financing sources 2,675.800 2,675.800 2,675,800 NET CHANGE IN FUND BALANCE $ $ (6.600) $ (6.600)
FUND BALANCE:

Beginning of year 8.350
End of year $ 1,750
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City of Cupertino
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Capital Improvement Projects Capital Projects Fund
For the Year End_ed_ June 30, 2023
Original Final Variance with
Budget Budget Actual Final Budget
REVENUES:

Use of money and property $ $ $ (326.69 1) $ (326.69 1) I ntergovemmental 5.320.973 515.814 (4,805. I 59)
Charges for services 51 ,675 51.675
Other revenue 6 10.93 1 56,522 (554.409)
Total revenues 5.931.904 297,320 (5.634.584)
EXPENDITURES:

Capital outlay 3,6 10,000 5.831,8 I 8 4,4 17.593 1,414,225 TOTAL EXPENDITURES 3,610,000 5,831 ,818 4.417.593 1,414,225

EXCESS OF REVENUES OVER
EXPENDITURES (3,6 10,000) 100.086 (4. 120,273) (4,220,359) OTHER FINANCING SOURCES (USES):

Transfers in 2,500.000 6.454.3 11 4,788.757 ( 1.665.554) Transfers out (23.600) (2,489, 154) (823,600) 1,665,554 Total other financing sources (uses) 2.476,400 3,965, 157 3,965. 157 NET CHANGE IN FUND BALANCE $ ( 1.1 33.600) $ 4.065.243 ( 155, 116) $ (4,220,359) FUND BALANCE:

Beginning of year 34,922.3 10
End of year $ 34,767, 194
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NONMAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS
All funds not considered as major ftmds on the Fund Financial Statements are consolidated in one column entitled "Other Governmental Funds." These non-major funds are identified and included in this supplementary section and includes the City's Special Revenue Funds and Capital Project Funds.

The Special Revenue Funds are used to account . for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes.

Storm Drain Improvement - This fund accounts for the construction and maintenance of storm drain facilities including drainage and sanitary sewer facilities. Revenues were collected from developers as a result of connections to the storm drainage sewer system.

Park Dedication - This fund accounts for the activity granted by the business and professions code of the State of California in accordance with the open space and conservation element of the City's General Plan. Revenues of this fund are restricted for the acquisition, improvement, expansion and implementation of the City's parks and recreation facilities.

Environmental Management I Clean Creeks - This fund accounts for all activities related to operating the non-point source pollution program. A parcel tax provides revenues.

Traffic Impact - This fund accounts for development impact fees and related that ensure that new development and redevelopment projects pay their "fair share" to mitigate traffic impacts.

CAPITAL PROJECTS FUNDS
Capital Projects Funds account for the financial resources committed to the construction or improvement of major facilities.

Stevens Creek Corridor Park Capital Projects Fund - This fund accounts for the design and construction of the Stevens Creek Corridor Park projects.
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ASSETS
Cash and investments
Accounts receivable
Interest receivable
Total assets

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable and accruals
Total liabilities
Fund balances:

Restricted
Assigned
Total fund balances
Total liabilities and fund balances
City of Cupertino
Combining-Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
Special Revenue Funds
Storm Environmental
Drain Park Management/
~ovemen t Dedication Clean Creeks
$ 3.985.841 $ 18,778.647 $ 1.227.519
15, 134

14.071 66,271 4, 171

3.999.912 18.844.9 18 1.246,82_±_
6,240 81,186 26,690
6,240 81, 186 26.690

3.993,672 18,763,732 1.220, 134
3,993,672 I 8,763,732 1,220, 134
$ 3.999.912 $ __J_8_Jl_44. 9 18 $ 1.246.824
122
Traffic
Impact
$ 767,399
2,708
770,107
770.107
770, 107
_j_ 770.107
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ASSETS
Cash and investments
Accounts rece ivable
Interest receivable
Total assets
City of Cupertino
Combining Balanc~ Sheet (Continued)
. Non major Governmental Funds
June 30, 2023

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable and accruals
Total liabilities
Fund balances:

Restricted
Assigned
Total fund balances
Total liabilities and fund balances
123
• Capital Projects
Fund
$
$
Stevens Creek
Corridor Park
157,343
157.343
157.343
157,343
157.343
Total Nonmajor
Governmental
Funds
$
$

24.916,749
15, 134
87,221

25.0 I 9. 104
114, 116
114. 116

24.747,645
157.343

24.904.988
25,0 19.104
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Combining Statement of Revenues, Expenditures, and Changes in Fund Balance Nonmajor Governmental Funds
For the Year Ended June 30, 2023
Special Revenue Funds
Storm Environmental
Drain Park Management/ .
~ovement Dedication Clean Creeks
Revenues:

Taxes $ 73,912 $ 646,767 $ $
Use of money and property 2 1,801 277.663 4.476
Charges for services 4,810 1.498,017
Fines and forfeitures 23,37 1 - Total revenues 95,713 929,240 1,525.864 Expenditures:

Current:

Public works 1,6 15.379
Capital outlay 135,840 1,757,252
Total expenditures 135,840 1,757,252_ 1.615,379
Revenues over (under)
expenditures (40.127) (828,0 12) (89,515)
Other finan cing sources (uses):

Transfers out ( 1.7 I I. 140)
Total other _financing sources (uses) ----
(1.7 11.1 40)
Net Change in Fund Balances (40, 127) (2,539, 152) (89,5 15) Fund balances:

Beginning of year 4,033,799 21,302.884 1,309,649
End of year $ 3.993.672 $ 18,763,732 _J_ 1.220.134 $
124
Traffic
Impact
11,710

38.200
49,9 10

49.9 10 .
49,9 10
720, 197
770.107
419
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City of Cupertino
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance (Continued) Nonmajor Governmental Funds
Revenues:

Taxes
Use of money and property
Charges for services
Fines and forfeitures
Total revenues
Expenditures:

Current:

Public works
Capital outlay
Total expenditures
Revenues over (under)
expenditures
Other financing sources (uses):

Transfers out
Total other financing sources (uses)
Net Change in Fund Balances
Fund balances:

Beginning of year
End o f year
For the Year Ended June 30, 2023
125
Capital Projects
$
$
Fund
Stevens Creek
Corridor Park
$
(803)
(803)
8,433

8.433
(9.236)
(9.236)
Total Nonmajor
Governmental
Funds
720,679
3 14,847
1,541,027

23.37 1
2,599,924
1,615.379
1,901 ,525
3,5 16,904
(916.980)
(1 ,71 1.1 40)
( 1,711 , 140)
(7,628, 120)
166,579 27.533. 108
157,343 =$ = ===24=.9=0=4.=9=88=
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City of Cupertino
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Storm Drain Improvement Special Revenue Fund
For the Year Ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Taxes $ 201.229 $ 201.229 $ 73,9 12 $ ( 127.317)
Use of money and property 2 1,801 21 ,801
Tota I revenues 201.229 201 ,229 95.7 13 ( 105,516)
Expenditures:

Capital outlay 135,840 135,840
Total expenditures 135.840 135,840
Net Change in Fund Balance $ 201.229 $ 65,389 (40. 127) $ (105,516) Fund balance:

Beginning of year 4,033,799
End of year $ 3,993.672
126
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City of Cupertino
Schedule of Revenues, Expenditures, and Changes in Fund Ba.lance - Budget and Actual Park Dedication Special Revenue Fund
For the Year Ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Taxes $ $ $ 646,767 $ 646,767
Use of money and property 277.663 277,663
Charges for services 4,810 4,810
Total Revenues 929,240 929,240
Expenditures:

Capital outlay 1.832,007 1,757,252 74,755
Total Expenditu res 1.832.007 1,757,252 74,755

REVENUE OVER
(UNDER) EXPENDITURES (1,832,007) (828,0 12) 1,003,995
Other Financing Sources (Uses):

Transfers out ( 1.650,000) (1,7 11 , 140) (6 1, 140)
Total Other Financing Sources (Uses) ( 1.650.000) (1 ,71 1,140) (6 1, 140) NET CHANGE IN FUND BALANCE $ $ (3,482,007) (2,539, 152) $ 942,855 FUND BALANCE:

Beginning of Year 2 1,302,884
End of Year $ 18,763.732
127
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City of Cupertino
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Environmental Management/Clean Creeks Special Revenue Fund Revenues:

Use of money and property
Charges for services
Fines and forfeitures
Total Revenues
Expenditures:

Current:

Public works
Total Expenditures

NET CHANGE IN FUND BALANCE
FUND BALANCE:

Beginning of Year
End of Year
For the Year Ended June 30, 2023
Budfeted Amounts
Orifinal Final
$ 2,248 $ 2,248
1,510.555 1,510.555
68,669 68,669
1,512,803 1,512.803
2,067,399 1,724,715
2,067,399 1,724.715
$ (554.596) $ (2 11 ,912)
128
$
1 Actual
Amounts

4.476

1.498.017
23,37 1
1,525,864

1.615,379
1,615,379
(89,515)
1,309,649

1.220,134
Variance with
Final Budget
Positive
(Negative)
$ 2.228
( 12.538)
(45,298)
_______J__!_Q_,310)
109,336
I 09,336
$ 122,397
423
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City of Cupertino
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Traffic Impact Special Revenue Fund
Revenues:

Use of money and property
Charges for services
Total Revenues

NET CHANGEIN FUNDBALANCE
FUND BALANCE:

Beginning of Year
End of Year
For the Year Ended June 30, 2023
Budgeted Amounts
Original Final
$ $
$ $
129
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 11 ,710 $ 11,71 0
38,200 38,200
49,910 49,9 10

49.9 10 $ 49,9 10
720, 197
$ 770.1 07
424
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City of Cupertino
Schedule of.Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Stevens Creek Corridor Park Capital Projects Fund
Revenues:

Use of money and property
Total Revenues
Expenditures:

Capital outlay
Total Expenditures

NET CHANGEINFUNDBALANCE
FUND BALANCE:

Beginning of Year
End of Year
For the Year Ended June 30, 2023
Budgeted Amounts
Original Final
$ $
8,543
8,543
$ $ (8,543)
130
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ (803) $ (803)
(803) (803)

8.433 110
8,433 11 0
(9,236) $ (693)
166,579
$ 157.343
425
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NONMAJOR ENTERPRISE FUND
Proprietary funds account for City operations financed and operated in a manner similar to a private business enterprise.

The intent of the City is that the cost of providing goods and services be financed primarily through user charges.

The City has identified the fund below as a nonmajor proprietary fund for fiscal 2022-23.

Blackberry Farm Fund - This fund accounts for activities related to operating the City-owned golf course.

L3I
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132
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ASSETS
Current assets:

Cash and investments
Accounts receivable
Interest receivable
Total current assets
Noncurrcnt assets:

Capital assets:

Nondepreciable
Depreciable, net
Total capital assets
Total noncurrent assets
Total assets
City of Cupertino
Combining Statement of Net Position
Nonmajor Enterprise Fund
June 30, 2023

DEFERRED OUTFLOWS OF RESOURCES
Related to pensions
Related to other postemployment benefit
Total defe rred outnows of resources

LIABILITIES
Current Liabilities:

Accounts payable and accruals
Compensated absences, current portion
Unearned revenue
Total current liabilities
Noncurrent liabilities:

Compensated absences
Net pension liability
Net other postemployment benefit liability
Total noncurrent liabilities
Total liabilities
DEFERRED INFLO\V OF RESOURCES
Related to pensions
Related to other postemployment benefit
Total deferred inflows of resources
NET POSITION:

Net investment in capital assets
Unrestricted
. Total net position
l33
$
$ .

Blackberry
Farm
896,94 1
1,829
3, 136
90 1,906
137,343
18,042
155,385
155,385
1,057,29 1
IO 1.506
I 8.479
11 9,985

18.976
458
92,223
111.657
9, 157
3 I 2,709
1,743
323,609
435,266
769
6,84 1
7,610
155,385
579,0 15
734,400
428
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City of Cupertino
Combining Statement of Revenues, Expenses, and Changes in Net Position Nonmajor Enterprise Fund
For the Year Ended June 30, 2023
OPERA TING REVENUES:

Charges for services
Others
Total operating revenues
OPERATING EXPENSES:

Salaries and benefits
Materials and supplies
Contractual services
Depreciation
Total operating expenses

OPERATING INCOME (LOSS)
NONOPERATING REVENUES:

Investment income
Total nonoperating revenues

INCOME (LOSS) BEFORE TRANSFERS
TRANSFF:RS:
i·ransfers in
Total transfers

CHANGES IN NET POSITION
NET POSITION:

Beginning of year
End of year
134
Blackberry
Farm
$ 570.038
46,423
616,461
233.0 13
208,348
354,975
2,832
799,168
(182,707)
37,286
37,286
( 145.421)
23,600

23.600
( 121,82 1)
856,221
$ 734,~00
429
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City of Cupertino
Combining Statement of Cash Flows
Nonmajor Enterprise Fund
For the Year Ended June 30, 2023

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers
Cash paid to suppliers for goods and services
Cash paid to employees for services
Net cash (used in) operating activities

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Cash received from other funds
Net cash provided by noncapital financing activities
CASH FLOWS FROi\11 CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition or capital assets
Net cash (used in) capital and related
financing activities
CASH FLOWS FROM INVESTING ACTIVITIES:

Interest received
Net cash provided by investing activities
Net change in cash and cash equivalents

RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO STATEMENTOF NET POSITION:

Beginning of year
End of year
CASH AND CASH EQUlVALENTS:

Cash and investments
Total cash and cash equivalents
Reconciliation of Operating Income (Loss)
to Net Cash (used in) Operating Activities:

Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:

Depreciation
Changes in assets and liabilities:
(lncrease)/decrease in accounts receivables
(lncrease)/decrease in deferred outflows of resources pension related (lncrease)/decrease in deferred outflows of resources O PEB related lncrease/(decrease) in accounts payable
Increase/( decrease) in unearned revenue
Increase/( decrease) in compensated absences
lncrease/(decrease) in net pension liability
lncrease/(decrease) in O PEB
lncrease/(decrease) in deferred inflows of resources pensio n related lncrease/(decrease) in deferred inflows of resources OPEB related Net cash (used in) operating activities
135
$
$
$
$
$
$
Blackberry
Farm
612,394
(582,924)
(245.3 11)
(2 I 5,84 1)

23.600

23.600
( 137,343)
( 137.343)

34. 150
34, 150
(295,434)
I, 192,375
896.941
896,941
896.941
( 182.707)
2,832
( 1,659)
(42,8 I 0)
(5,380)
( 19,60 1)
(2.408)
(9.290)
62,474
1,743
(25.876)
6,84 1
(2 15.841)
430
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9£1
')fl/U/q I/ii/ lli/VII0 //1/il/ll! nflud S/1{.L
431
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·1NT-ERNAL SERVICE FUNDS
These funds account for goods or services provided to other departments of the City where the intent of the City is that the costs of these goods or services are to be recovered through interdepartmental charges at the time that the goods are delivered or the services rendered to those departments.

The concept of major funds does not extend to internal service funds because they do not do business with outside parties. For the Statement of Activities, the net revenues or expenses of each internal service fund are eliminated by netting them against the operations of the City departments that generated them. The remain ing balance sheet items are consolidated with these same funds in the Statement of Net Position. However, internal service funds are still presented separately in the Fund financial statements.

Information Technology - Accounts for the activities related to the maintenance and replacement of the City's technology infrastructure.

Workers' Compensation - This fund is used to account for all expenses relating to workers' compensation (i.e., injury claims, insurance premiums, etc.). The costs are recovered through an annual "user fee" which is charged to all departments/funds that have employees.

Equipment Revolving - Accounts for the activities related to the maintenance and replacement of the City's vehicle fleet and other equipment.

Compensated Absences and long-Term Disability - Accounts for accrued leave payouts and the City's long term disability insurance program.

Retiree Medical - Accounts for funds set-aside for other post-employment retirement benefits. 137
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ASSETS
Current assets:

Cash and investments
Accounts receivable
Interest receivable
Total current assets
Noncurrent assets:

Capital assets:

Nondepreciable
Depreciable and amortizable. net
Total capital assets
Total noncurrent assets
Total assets
DEFERRED INFLO\V OF RESOURCES
Related to pensions
City of Cupertino
Combining Statement of Net Position
Internal Service Funds
June 30, 2023
Information
Technology
$ 3.437.1 13
I 1,734

3.448,847
764,856
764,856
764,856
4,213,703
935,304
Related to other postemployment benefit liability 311.746 Total deferred outflows of resources 1.247.050

LIABILITIES
Current Liabilities:

Accounts payable and accruals 7 1.950
Accrued payroll and benefits
Due to other funds
Compensated absences 32,052
Claims payable
Subscription liabilities 125.990
Total current liabilities 229,992
i\oncurrent liabilities:

Compensated absences 292.942
Claims payable
Subscription liabilities 72,504
Net pension liability 2,88 1,390
Net other postemployment benefit liability 29.406
Total noncurrent liabilities 3,276,242
Total liabilities 3,506.234

DEFERRED INFLOW OF RESOURCES
Related to pensions 7.088
Relatecl to other postemployment benefit liability 115.402 Total d~ferred inflows of resources 122,490
NET POSITION:

Net investment in capital assets 566.362
Restricted 166.938
Unrestricted 1,098,729
Total net position $ 1,832,029
138
Workers' Equipment
Compensation Revolvi.ng
$ 3.841.250 $ 94 1, 189
13,429 4,870
3,854_,_679 946.059
11 9,408
2,025,120
2, 144,528
2, 144,528

3.854,672_ 3,090,587
23,564 253. 765

3.328 95,570
26,892 349,335

78.527
72 1,285 5,017
292,000
293.285 83,616
11 ,742 45,852

1.362,000

72.593 781,773
3 14 9,015
1,446,649 836,640
1,739,934 920,256
179 1,923
1,232 35,378
1,41 1 37,301
2, 144,528

1.782 51, 177
2, 138,444 286,660
$ 2, 140,226 $ 2,482,365
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City of Cupertino
Combining Statement of Net Position (Continued)
Internal Service Funds
June 30, 2023
Compensated
Absences and
Long-Te rm Retiree
Disability Medical Total
ASSETS
Current assets:

Cash and investments $ 709.564 $ 9,898 $ 8,939,0 14
Accounts rece ivable 1,385,759 1,385,759
Interest receivable 2,761 32,794
Total current assets 712.325 1.395,657 I 0,357,567
Noncurrent assets:

Capital assets:

Nondepreciable 119.408
Depreciable and amortizable, net 2,789,976
Total capital assets 2,909.384
Total noncurrent assets 2,909,384
Total assets 712.325 1,395.657 13.266,95 1

DEFERRED INFLOW OF RESOURCES
Related to pensions 1.2 12,633
Related to other postemployment benefit liability 4 10,644 Total deferred outflows of resources 1,623,277
• LIABILITIES
Current Liabilities:

Accounts payable and accruals 150,477
Accrued payroll and benefits 72
Due to othe r funds 1,395.657 1,395,657
Compensated absences 38,354
Claims payable 292,000
Subscription liabilities 125,990
Total current liabilities 1,395,657 2,002,550
Noncurrcnt liabilities:

Compensated absences 350,536
Claims payable 1,362,000
Subscription liabilities 72,504
Net pension liability 3,735,756
Net other postemployment benefit liability 38,735
Total noncurrent liabilities 5,559,531
Total liabilities 1,395,657 7,562,081

DEFERRED INFLOW O F RESOURCES
Re lated to pensions 9, 190
Related to other postemployment benefit liabili ty 152,0 12 Total deferred in nows of resources 161,202
NET POSITION:

Net investment in capital assets 2,7 10,890
Restricted 2 19,897
Unrestricted 7 12,325 4,236, 158
Total net position $ 7 12,325 $ $ 7, 166,945
139
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City of Cupertino
Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds
For the Year Ended June 30, 2023
Information Workers'
Technology Compensation
OPERATING REVENUES:

Charges for services $ 2,485,218 $ 436,462
Other
Total operating revenues 2,485.218 436,462
OPERATING EXPENSES:

Salaries and benefits 2,309.184 42,636
Materials and supplies 867,945 28,369
Contractual services 530.557
Insurance and claims and premium 470.630
Depreciation and amortization 327,470
Total operating expenses 4,035,156 541,635
OPERATING INCOME (LOSS) (1 ,549,938) ( I 05, 173)
NONO PERA TING REVENUES (EXPENSES):

Investment income (30.8 19) 18,646
Gain on sale of capital assets
Interest expense (86 1)
Total nonoperating revenues (3 1,680) _l_ll,_646
INCOME (LOSS) BEFORE TRANSFERS ( 1,58 1,618) (86,527)
TRANSFERS:

Transfers in 2,537,500
Total transfers 2,537.500
CHANGES IN NET POSITION 955.882 (86,527)
NET POSITION:

Beginning of year 876, 147 2,226,753
End of year $ 1,832,029 $ 2, I 40,2_2Q_
140
Equipment
Revolving
$ 1.568,633
1,568,633
556,909
357,803
86,875
577, 140
1,578,727
( I 0,094)

12.099
30, 158
42,257
32)63
32, 163
2,450,202
$ 2,482,365
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City of Cupertino
Combining Statement of Revenues, Expenses, and Changes in Net Position (Continued) Internal Service Funds
For the Year Ended June 30, 2023
Compensated
Absences and
Long-Term Retiree
Disability Medical Total
OPERA TING REVENUES:

Charges for services $ 115,970 $ $ 4,606,283
Other 1,385,759 1,385,759
Total operating revenues 115,970 1,385,759 5,992.042
OPERATING EXPENSES:

Salaries and benefits 1,380,875 4,289,604
Materials and supplies I 1.047 14,782 1,279,946
Contractual services 6 I 7,432
Insurance and claims and premium 616.369 1.086,999
Depreciation and amortization 904,6 10
Total operating expenses 627.416 1,395,657 8, 178,591
OPERATING INCOME (LOSS) (511 ,446) (9,898) (2.1 86,549) NONOPERATING REVENUES (EXPENSES):

Investment income 4,435 (26,554) (22. 193)
Gain on sale of capital assets 30.158
Interest expense (86 1)
Total nonoperating revenues 4,435 (26,554) 7, 104
INCOME (LOSS) BEFORE TRANSFERS (507,0 11 ) (36,452) (2, 179,445) TRANSFERS:

Transfers in 882,000 9,898 3,429,398
Total transfers 882,000 9.898 3,429,398
CHANGES I ' ET POSITION 374.989 (26,554) 1,249,953
NET POSITION:

Beginning of year 337:336 26,554 5,916,992
End of year $ 712,325 $ $ 7, 166.945
141
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City of Cupertino
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2023
In formation
Technology

CASH FLOWS FROM OPERATING ACTIVITIES
Cash rece ived from customers and users $ 2,485.218
Cash paid to suppliers for goods and services (1,397,669) Cash paid to employees for services ( 1.974. 702)
Cash paid for insurance claims
Net cash provided by (used in) operating activitiei (887.153)

CASH FLOWS FROM NONCAPIT AL
FINANCING ACTIVITIES:

Cash received (paid) from other funds 2.537.500
Net cash provided by (used in) noncapital financing activities 2.537.500

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of capital assets ( 173,813)
Principal paid ( I 09.339)
Interest paid (86 1)
Proceeds from sale of capital assets
Net cash (used in) capital and related
financing activities (284.013)
CASH FLOWS FROM INVESTING ACTIVITIES:

Interest earnings (42.553)
Net cash provided by (used in) investing activities (42.553) Net change in cash and cash equivalents 1,323.781
CASH AND CASH EQUIVALENTS:

Beginning of year 2.113.332
End of year $ 3 437, 1 IL
Reconciliation of Operating Income (Loss) to
to Net Cash Provided by (Used in) Operating Activities:

Operating income (loss) $ ( 1.549.938)
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:

Depreciation and amortization 327.470
Changes in assets and liabilities:
(Increase )/decrease in accounts receviables
(lncrease)/decrease in deferred outflows of resources related to pensions (55 1,497) (lncrease)/decrease in deferred outflows of resources related to OPEB (49.897) lncrease/(decrease) in accounts payable 8" .).)
lncrease/(decrease) in compensated absences 40. 142
lncrease/(decrease) in claims payable
lncrease/(decrease) in net pension liabilities 1,448,629 lncrease/(decrease) in other postemployment benefit liabilities 88,29 1 lncrease/(decrease) in deferred inflows of resources related to pensions (62 1.047) lncrease/(decrease) in deferred inflows of resources related to OPEB (20. 139) Net cash provided by (used in) operating activities $ (887 ls;D 142
Workers' Equipment
Compensation_ Revolving
$ 436,462 $ 1,568,633
(498,999) (413,863)
(42,379) (475,639)

85.000
( 19.91 6) 679.13 1
(539,204)
(539.204 l
(353,980)

30.158
(323.822)

5.217 7.229

5.217 7.229
(14,699) ( 176,666)

3.855.949 I.I 17.855
$ 3 841 250 $ 941. 189
$ ( 105, 173) $ ( 10,094)
577, 140
(10, 154) ( 131 ,853)
618 ( 15.063)
30,815
616 28.2 12

85.000
23,775 337,409

1.052 30,52 1
( 15.019) ( 154,599)
(63 t l ( 13.357)
$ ( 19 916) $ 679 13 I
(Continued)
437
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City of Cupertino
Combining Statement of Cash Flows (Continued)
Internal Service Funds
For the Year Ended June 30, 2023
Compensated
Absences and
Long-Te rm Retiree
Disability Medical Total

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users $ 115,970 $ $ 4.606.283 Cash paid to supp liers fo r goods and services (627.4 16) ( 14,782) (2,952.729) Cash paid to employees for services ( 1,380.875) (3,873,595) Cash paid for insurance claims 85.000
Net cash provided by (used in) operating activitiei (5 11 .446} ( 1.395.657} (?.1 35.041 ) CASI-I FLOWS FROM NONCAPlT AL
FINANCING ACTIVITIES:

Cash rece ived (paid) from other funds 882.000 1.405.555 4.285.85 1 Net cash provided by (used in) noncapital financing activities 882.000 1.405.555 4.?85.85 1

CASI-I FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition o r capital assets (527. 793)
Principal paid ( I 09.339)
Interest paid (86 1)
Proceeds from sale of capital assets 30. 158
Net cash (used in) capital and related
financing activities (607.835)
CASH FLOWS FROM lNVESTING ACTIVITIES:

Interest ea rnings 1.674 (26.554 l (54.987)
Net cash provided by (used in) investing activities 1.674 (26.554) (54.987) Net change in cash and cash equivalents 372.228 ( 16,656) 1,487,988 CASH AND CASH EQUIVALENTS:

Beginn ing of year 337.336 26.554 7.45 1.026
End of yea r $ 109 ~64 $ 9 898 $ 8 939 0 14
Reconciliation of Operating Income (Loss) to
to Net Cash Provided by (Used in) Operating Activities:

Operating income (loss)
Adjustments to reconcile operating income (loss)
$ (5 11.446) $ (9.898) $ (2, 186.549)
to net cash provided by ( used in) operating activities:

Depreciation and amortization 904,6 10
Changes in assets and liabilities:
(lncrease)/decrease in accounts receviables ( 1,385,759) ( 1,385,759) (lncrease)/decrease in de terred outflows of resources related to pensions (693,504) (Increase)/decrease in de ferred outnows of resources related to OPEB (64,342) lncrease/(decrease) in accounts payable 31.648
Increase/( decrease) in compensated absences 68,970
lncrease/(decrease) in claims payable 85,000
Increase/(decrease) in net pension liabilities 1,809,8 13 Increase/(decrease) in o the r postemployment benefit liabilities 11 9.864 (l ncrease)/decrease in deferred in nows o f resources related to pensions (790,665) lncrease/(decrease) in deferred inflows of resources related to O PEB (34. 127) Net ~ash provided by (used in) operating activities $ (5 11 446) $ ( I 39j 6j7l $ (? I 1j,04 I l (Concluded)
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STATISTICAL SECTION
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City of Cupertino
Description of Statistical Section Contents
June 30, 2023
This part of the City of Cupertino's annual comprehensive financial report presents detailed information as a . context for understanding what the information in the financial · statements, note disclosures, and required supplementary information say about the government's overall financial health.

Contents:

Financial Trends - These schedules contain trend information to help the reader understand how the City's financ ial performance and well-being have changed over time.

Revenue Capacity - These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax.

Debt Capacity - These schedules present information to help the reader assess the affordability of the City's current level of outstanding debt and the City's ability to issue add itional debt in the future.

Demographic and Economic Information - These schedules offer demographics and economic indicators to help the reader understand the environment within which the City's financial activities take place.

Operating Information - These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report related to the services the City provides and activities it performs.
147
Pages
148- 157
159-163
164-167
168-169
170-175
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Government activities:

Net investment in capital assets
Restricted
Unrestricted
Total governmental activities net position
Business-type activities:

Net investment in capital assets
Restricted
Unrestricted
Total business-type activities net position
Primary government:

Net investment in capital assets
Restricted
Unrestricted
Total primary government net position
City of Cupertino
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
2014 2015
$ 122,08 1.223 $ 131.425.677

24.232.367 38.327.705
63, 150.548 51.003.950
$ 209,464. I 38 _ $ 220. 757,332
$ 1, 110,414 $ 2.079.56 1
10,292,210 6.604.578
$ 11,402, 624 $ 8,684, 139
$ 123, 19 1.637 $ I 33,505,238
24,232,367 38,327,705
73,442,758 57,608,528
$ 220,866,762 $229,44 1,471
Source: Department of Administrative Services, City of Cupertino. 148
Fiscal Year
2016 2017 2018
$ 148, 168.074 $ 153.239,534 $ 167,606.366
34,861,807 34,991 ,692 32,073, 195
51, 164,063 59,385,309 50,457,871
$ 23_4, 193,944 $ 247,6 16,535 $250, 137,432
$ 1,708,183 $ 1.972, 169 $ 1,597.700

7.375,444 9,092,584 8.051 ,015
$ 9.083,627 $ 11,064,753 . ~ 648. 7 15
$ 149,876,257 $ 155.211.703 $ 169,204.066
34,861,807 34,99 1.692 32,073, 195
58,539,507 68,477,893 58,508,886
$ 243_,277,57 1 $ 258,68 1,288 $ 259.786, 147
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City of Cupertino
Net Position by Component (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2019 2020 202 1
Government activities:

Net investment in capital assets $ 170,973.897 $177, 128, 134 $ 186,503, 116 Restricted 45.405,508 48,005.800 53.71 1,040
Unrestricted 5 1, 190,0 17 66,493,336 83.458.299
Total governmental activities net position $ 267.569,422 $291,627,270 $ 323,672,455 Business-type activities:

Net investment in capital assets $ 1,318,744 $ 1, 118,882 $ 2.090.530 Restricted
Unrestricted 6,737,758 8, 134,944 9,374, 129
Total business-type activities net position $ 8,056,502 $ 9,253,826 $ 11 ,464,659 Primary government:

Net investment in capital assets $ 172,292,641 $ 178,247,016 $ 188,593.646 Restricted 45,405,508 48,005,800 53,7 11 ,040
Unrestricted 57,927,775 74,628,280 92,832,428
Total prima_ry government net position $ 275,625,924 $ 300,88 1,096 $ 335, 137, 114 * 2022 restricted and unrestricted net positions are restated as result ofa prior period adjustment Source: Deparhnent of Administrative Services, City of Cupertino. 149
2022* 2023
$ I 96,9 I 5,823 $ 198,450,44 1
69,354,2 17 69, 129.277
93,6 13,909 120,529.242
$ 359,883,949 $ 388, I 08,960
$ 2,089,569 $ 2.1 09,592
166.607 166,689
8,422,930 8,148,256
$ 10,679, 106 $ I 0,424,537
$ 199,005,392 $ 200,560,033
69,520,824 69,295,966
I 02,036,839 128,677,498
$ 370,563,055 $ 398,533,497
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City of Cupertino
Changes in Net Position - Expenses and Program Revenues Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Vear
2014 2015 2016 201 7 2018
Expenses:

Governmental Activities:

Administration $ 4,529,539 $ 3,286,919 $ 3.7 10.388 $ 2.873.744 $ 5.612.733 Law enforcement 10.062. 192 I 0. 705,328 11.3 16.271 12,528,328 12,674.042 Innovation and technology 512,895 649,442 575,260 1.884, 165 3,244,846 Administrative services 2,662,008 4,300.336 2.994,6 11 5,898.479 4,415,647 Recreation services 4.866,974 5,365.282 5,758, I 94 I 0,65 1,557 9,352,551 Community development 9, 108.949 5,976,797 6,259,734 13,775,59 1 16.789,351 Public works 2 1.1 43,33 I 27,893.36 I 3 1,3 13,396 32,49 1.244 28,995,382 Interest on long-tern1 debt 1, 130,428 1, 120, 138 1,077,538 1,035,738 993,038 Total governmental activities expenses 54,0 16,3 16 59,297,603 632005,392 8 1, 138,846_ 82.077.590 Business-type activities:

Resources recovery $ 2, 159,047 $ 2.548,46 1 $ 2.997,200 $ 2,99 1, 177 $ 2,594,5 11 Blackberry farm 57 1,000 547, I 85 576, 177 597,406 656, 11 2 Cupertino sports center 2,22 1.703 2,269,420 2,299,210 2,159,243 2,633,748 Recreation programs 2,730,765 2,342,457 3, 136,01 I 2,35 1,501 3,232,593 Total business-type activities expenses 7,682,515 7,707,523 9.008,598 8,099,327 9, 116.964 Total primary government expenses $ 6 I ,698,83 1 ....1.._g_005, 126 $ 72,0 13,990 $ 89,238, 173 $ 9 1, 194,554 Program revenues:

Governmental activities:

Charges for services:

Administration $ 1.087.393 $ 322,534 $ 369,069 $ 3,992,716 $ 5,062.988 Law enforcement 725,63 1 590,378 664,483 603, 194 732,544 Innovation and technology 41.352 41 ,352
Administrative services 481 ,616 359, 148 3.565.627 2,635,885 Recreation services 955,08 I 1.798. 134 1,42 1, 185 2,0 16, 159 1,589. I 34 Community development 6,649,292 8,5 11.745 10,534,457 10.902.822 8,598.935 Public works 7,9 I 6,897 2,869,357 6.358,870 6,873,487 4,720.646 Operating grants and contributions I 0,000, 13 1 6.002,6 17 1,851,282 2,3 13,632 4,8 I 9,696 Capital grants and contributions 569,159 4.022, 190 362,491 245,288 27 1,587 Total governmental activities program revenues 27,903,584 24,639,923 2 1,962,337 30_,5_ 12,925 28,43 1,4 15 Business-type activities:

Charges for services:

Resources recovery $ 2,074,25 1 $ 2.59 1,276 $ 2.664,888 $ 2,792. I 90 $ 2,559,862 Blackberry farm 302,472 388,091 334,529 325,224 345,667 Cupertino sports center 2,188, 127 2, 152.498 2.224, 146 2,238,023 2,403,665 Recreation programs 2,480,209 2,532.800 2.466,336 2,778,588 2,516,678 Total business-type activities program revenues 7,045,059 _ _7.664,665 __ 7,689,899 8, 134,025 7.825,872 Tota l primary government program revenues $ 34,948,643 $ 32,304,588 $ 29,652,236 $ 38,646,950 $ 36,257,287 (conlinued)
Source: Department of Administrative Services, City of Cupertino. 150
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City of Cupertino
Changes in Net Position - Expenses and Program Revenues (Continued) Last Ten Fiscal Years
(accrual basis of accounting)
2019 2020 2021 2022 2023
Expenses:

Governmental Activities:

Administration $ 6,849,046 $ 7.974.520 $ 3,637,467 $ 7,293,244 $ 8,830, 127 Law enforcement 13,381,1 13 14,698, 130 15,211,646 16, 100,903 15, 716,30 I Innovation and technology 3,210,343 3,637,354 1,72 I ,729 2,004,515 1,950,7 I 8 Administrative services 4.290,818 5, 175,596 5,358, 183 5,363,745 6,363,343 Recreation services 7,389,915 8,763, I 94 I, 182,662 3,976,793 6,020,526 Community development I 0,470,973 10.286,317 11,495,788 12,209.547 12,463.257 Public works 31 ,870, 165 33,339, 191 4 1,870,240 35.653,588 38,696,234 I nteresl on long-term debt 949,438 882,837 397,682 636,960 369,502 Total governmental activities expenses 78,411 ,8 11 84.757, 139 80,875,397 83,239,295 90,410,008 Business-type activities:

Resources recovery $ 1,735,885 $ 2,213,404 $ 1,670.261 $ 1,837,78 1 2,038,3 13 Blackberry farm 645.469 663,663 535.274 655, 184 799, 168 Cupertino sports center 3.036,037 2,883.903 2, 182,900 3,396, 146 3,456,539 Recreation programs 2,923.336 3,141,225 1, 117,244 1,6 17,717 1,661,686 Total business-type activities expenses 8,340,727 8.902, 195 5,505,679 7,506,828 7,955,706 Total primary government expenses $ 86,752,538 $ 93,659.334 $ 86.381 ,076 $ 90,746, 123 $ 98.365,7 14 Program revenues:

Governmental activities:

Charges for services:

Administration $ 1,3 19,395 $ 2,091 ,8 11 $ 2,387,4 12 $ 2,551 ,205 $ 3.098.916 Law enforcement 889,923 I , I 02,888 550,051 940,797 6 12,993 Innovation and technology
Administrative services 3, 11 3,731 3,889, 180 5,232,679 7,457,032 5,419,347 Recreation services 1,563,262 1,309,906 264,426 653,994 62 1,587 Community development 7,470,690 5,859,847 5. 736,587 5.768,850 5,361 ,837 Public works 4,504, 104 5,657.315 3,966,206 4,0 15, 183 3,290,506 Operating grants and contributions 2,557,470 5.794,443 5,998,209 7,60 1,210 10,881,438 Capital grants and contributions 1,082,243 1,046.756 1.792.376 1,282,617 1,593,9 10 Total governmental activities program revenues 22,500,8 18 26,752, 146 25,927,946 30,270,888 30,880,534 Business-type activities:

Charges for services:

Resources recovery $ 1,750,279 $ 1,821 ,677 $ 1,8 19,861 $ 1,545,683 $ 1,772,252 Blackberry farm 3 16.615 338,212 6 10,603 602.778 616,46 1 Cupertino sports center 2,349,468 2,365,667 1,8 10, 194 2,796,329 3, 117,580 Recreation (Jrograms 1,986,78 1 1,588,576 590,87 1 1,294,128 1,742,442 Total business-type activities program revenues 6,403, 143 6, 11 4, 132 4.83 1,529 6,238,918 7,248,735 Total primary government program revenues $ 28,903,96 1 $ 32,866,278 $ 30,759,475 $ 36,509,806 $ 38,129,269 Source: Department of Administrative Services, City of Cupertino. 151
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City of Cupertino
Changes in Net Position - Expenses and Program Revenues (Continued) Last Ten Fiscal Years
(accrual basis o_f'accounting)
Fiscal Year
201 4 2015 20 16 201 7 201 8
Net revenues (expenses):

Governmental activities $ (26, 112,732) $ (34,657,680) $ (41.043.055) $ (50.625,92 1) $ (53,646, 175) Business-type activities (637.456) (42,858) ( 1.318,699) 34,698 ( 1,29 1,092) Total net revenues (expenses) $ (26,750, 188) $ (34,]00,538) $ (42.36 I ,754) $ (50,591,223) $ (54.937,267) General revenues and Transfers
Governmental activities:

Taxes:

Property taxes $ 9.169, 183 $ 11,864,027 $ 13,25 1,840 $ 14,881,533 Property taxes in lieu of motor vehicle fee 5.289,476 6,330.436 6,967,237 7,552,272 Sales taxes 19,794,036 21 ,350,056 26,932,012 26, 164,53 1 Transient occupancy tax 4,590, 156 5,852,244 6.023,681 6,810,718 Utility user taxes 3,098,639 3,370,830 3,082,407 3,146,398 Franchise taxes 2,775,892 3,478,024 3,409,572 3,563,820 Other taxes 18,79 1,559 2,818,0 I 9 3,258,118 1,943,652 Intergovernmental 25,294 24, 111 26, 118 3 1.013
Investment earnings (loss) 133,243 40,75 1 807.287 694.730 9 16,638 Miscellaneous 57,005 (2) 2 19,053 2.004.906 1,834,492
Gain on sale of capital assets 23,715,897 580 740,570
Transfers - fund closing 1 272,011
Transfers (40 1,350) 872,340 ( 1,635,000) (1,874, 120) 107,030 Total governmental activities ~ 3 2 3, I 3 3 24,628,986 54,479.667 64,048,512 67,692,667 Business-type activities:

Investment earnings 11,238 42,561 82,187 59,012 75,663
Transfers 401 ,350 (872,340) 1.635,000 1,874,120 ( 107,030) Total business-type activities 4 12,588 (829,779) 1,7 17,187 1,933,132 (3 1,367) Total primary government $ 63,735,721 $ 23,799,207 $ 56, 196,854 $ 65,98 1,644 $ 67,661 ,300 Changes in net position
Governmental activities $ 37,210,40 I $ ( I 0,028,694) $ 13,436,612 $ I 3,422,591 $ 14,046,492 Business-type activities (224,868) (872,637) 398,488 1,967,830 (1 ,322.459) Total primary government $ 36,985;533 $ ( I 0,_90 I ,331) $ 13,835,100 $ 15,390,42 1 $ 12,724,033 Source: Department of Administrative Services, City or Cupertino. 152
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City of Cupertino
Changes in Net Position - Expenses and Program Revenues (Continued) Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2019 2020 2021 2022 2023
Net revenues (expenses):

Governmental activities $ (55,910,993) $ (58,004,993) $ (54,947.451 ) $ (52,968,407) $ (59,529,474) Business-type activities ( 1,937,584) (2,788,063) (674, 150) ( 1,267,910) (706.971 ) Total net revenues (expenses) $ (57,848,577) $ (60. 793,056) $ (55,621.60 I) $ (54.236,3 17) $ (60,236,445) General revenues and Transfers
Governmental activities:

Taxes:

Property taxes $ 17,082,005 $ 18, 11 7.304 $ 19, 197.994 $ 20,322,779 $ 2 1,807,628 Prop_erty taxes in lieu of motor vehicle fee 8,219,090 8.489,541 9.079,845 9.401,632 10,082,01 1 Sales taxes 24,90 1,779 35,657,2 14 42,581 ,070 43,646,813 34.819.34 1 Transient occupancy tax 8,901 ,337 7,286,083 2, 141 ,058 4,404,958 7,062, 150 Utility user taxes 3,089,922 3, 182,086 3,074,358 3,356,389 4, 103,906 Franchise taxes 3,445,253 3,41 8,908 3,368,286 3,479,554 3,995,018 Other taxes 3,299,587 1,774,235 3,022,333 11 , 117,528 2,872,571 Intergovernmental 28,844 47,391 43,675 67,762 62,072
Investment earnings (loss) 3.258,550 5,690.723 4, 147.907 (9,24 1,78 1) 2,80 l,930 Misce llaneous 1, 187,741 1.922,356 3. 185. 11 0 1,948,332 444,339 Gain on sale of capital assets 3.875
Transfers - fund closing I
Transfers (75,000) (3,523.000) (2.849,000) (886,801) (296,48 1) Total governmental activities 73,342,983 82,062.84 1 86,992.636 87.6 17, 165 87.754,485 Business-type activities:

Investment earnings 270,37 1 462,387 35,983 (404,444) 155,92 1 Transfers 75.000 3,523,000 2.849.000 886,801 296,481
Total business-type activities 345,371 3,985.387 2.884,983 482,357 452,402 Total primary government $ 73,688,354 $ 86,048,228 $ 89,877,619 $ 88,099,522 $ 88,206,887 Changes in net position
Governmental activities $ 17.431.990 $ 24,057,848 $ 32,045, 185 $ 34.648.758 $ 28,225,0 11 Business-type activities ( 1,592,2 13) I, 197,324 2.2 10,833 (785.553) (254,569) Total primary government $ 15,839,777 $ 25,255, 172 $ 34,256,0 18 $ 33.863,205 $ 27,970,442 1 Asset and liability transfer from the closed City Channel/Web Internal Service Fund in 201 7.

Source· Department of Administrative Services, City of Cupertino. [53
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City of Cupertino
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2014 2015 2016 2017 2018
General fond:

Nonspendable $ 3,363,065 $ 938,245 $ 937,38 1 $ 876,939 $ 464,893 Restricted 761.653 888.374 1,016,77 1 1,254,578
Committed 19,000.000 19, 122.754
Assigned 16.400,000 28,849,679 20,500,000 4,638, 181 9,963,310 Unassigned 23.197,378 8,774,966 29,869,085 28,057,799 2 1,704,922 Total general fund ~960,443 $ 39,324,5LIL $ 52,194,840 $ 53,589,690 $ 52,510,457 All other governmental funds:

Nonspendable
Restricted 24,232,367 37,566,052 33,973,433 33,974.92 1 30,8I8,617 Committed 1,398,665 1,398,665 1,398,665
Assigned 7,619,534 20,67 1,116 15.344.191 25,305.974 29, 129,6 16 Unassigned (2,280,96 1)
Total all other governmental funds $ 29,570,940 $ 59,635,833 $ 50,716,289 $ 60,679,560 $ 59,948,233 Total Governmental Funds 72,531 ,383 98_,_960,376 102.911 , 129 114,269.250 11 2,458.690 Source: Department o f Administrative Services, City of Cupertino. 154
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General fund:

Nonspenclable
Restricted
Committed
Assigned
Unassigned
Total general fund
All other governmental fu nds:

Nonspenclable
Restricted
Committed
Assigned
Unassigned
City of Cupertino
Fund Balances of Governmental Funds (Continued)
.. Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
20]9IIJ 2020 2021
$ 454, 188 $ 3,449,34 1 $ 3,444.346

9.469.670 14,324,757 20, 140,4 I 9

19. 123.397 19. 127,891 19. 127.89 1
1,979,202 3, 176,882 4.906, I 39
27,896, 128 34,426,942 49,23 1,996
$ 58,922,585 $ 74,505,813 $ 96,850,79 1
35,935,838 33,68 1,043 33.570,62 1

33.2 11 ,946 40,55 1.1 3 I 37,038.174
Total all other governmental funds $ 69, 147,784 $ 74,232, 174 $ 70,608,795 Total Governmental Funds 128.070,369 148.737.987 167,459,586 2022{7)
$ 4,055,956 $
I 8,756,482
34, 127,891

5.04 1,682
48,696,82 1
$ 110.678.832 $
$
51, I 06,343

35.088,889
$ 86, 195,232 $
196,874,064
1 The Citv established a trust to fund Other Post-Employment Benefit contributions. which is classified as a restriction in fund balance. 2 2022 balances were restated clue to prior period adjustments.

Source: Department of Administrative Services, City of Cupertino. 155
2023
4,000,588
19,088,859
34, 127,891
9,735, 187
71,603,813
I 38.556,338
46,828,676
34,924.537
81 ,753,213
220,309,55 1
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City of Cupertino
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
'(mod(fied accrual basis of accounting)
Fiscal Year
2014 2015 2016 20 17 2018 - -~~-
Revenues:

Taxes $ 72.211.724 $ 55.134.238 $ 55,462,956 $ 62.924,867 $ 64.062.924 Use of money and property 764,299 9 15.933 1,654.702 1.425,629 1,543,8 18 Intergovernmental 3,069,400 7,2 I 0,562 2,532.025 2,585,038 5,122,296 Licenses and penn its 3,679,943 3, 170.445 3,073.1 10 2,536.925 2,757,928 Charges for services 10,744, 11 3 5,203.37 1 17,249, 123 24, I 03, 167 15,638,247 Fines and forfeitures 6 16.889 554,002 564,903 603, 194 602,934 Other 545,052 542,429 1.289,0 13 2,004.904 1,834,492
Total revenues 91,63 1.420 72.730,980 81 ,825,832 96, 183. 72_4_ 9 1,562,639 Expenditures:

Current:

Administration 3,957,739 3,897,70 1 4.053,74 1 5,942.633 4.943,052 Law enforcement 9,626, 121 10.283,772 I 0.988.735 11,939,095 12,362,621 Innovation and technology 477,852 624,295 544,7 18 1,864,746 2,835,768 Administrative services 2,444,670 3.226, 164 2.8 11 , 117 5,054,539 4,430,300 Recreation services 4,536,519 5,047.548 5,44 1,200 9,361 ,934 8,686.076 Community development 8,424,254 5, 180,659 6, I 02.820 7.431,292 12,907.086 Public works 17,469,627 14,625,038 15,078, 174 18,623,585 18, 19 1,7 14 Capital outlay: 7,110,974 21 ,760,899 26, 171 , 127 18,731 , 165 23,395. 11 2 Debt service:

Principal repayment 2,040,000 2,055,000 2,090.000 2, 135,000 2, 180.000 Interest and fiscal charges I, 130,428 I, 120, 138 1,077,538 1.035,738 993,038 Total expenditures 57,218.184 67,82 1,2 14 74,359, 170 82, 11 9,727 90,924,767 Excess of revenues over (under) expenditures 34,413,236 4.909,766 7,466,662 14,063,997 637,872 Other financing sources (uses):

Proceeds from debt issuance
Proceeds from debt issuance premium
Payments to refunding agent
Proceeds from sale of capital assets 37,569 23,814,257 580 872.250 Inception of subscription liability
Transfers in 13,6 10,304 39,408,990 11.905, 724 26,446,090 3 1,028,218 Transfers in - fund closing 260,374
Transfers out (24.499, 154) (39, 177,284) (15,422,2 13) (29,4 12,340) (34,348.900) Total other financing sources (uses) ( I 0.851.28 1) 24,045,963 (3,5 15,909) (2,705,876) (2,448,432) Net change in fund balances $ 23,56 1,955 $ 28,955,729 $ 3,950,753 $ 11 ,358, 12 1 __!___11 ,8 10,560) Debt service as a percentage of
noncapital expenditures / 0.00% 0.00% 6.57% 5.00% 4.70% Source: Department of Administrative Services, City of Cupertino_ 156
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City of Cupertino
Changes in Fund Balances of Governmental Funds (Continued) Last Ten Fiscal Years
(mod(fied accrual basis of accounting)
Fiscal Year
2019 2020 2021 2022 2023
Revenues:

Taxes $ 68,938.973 $ 77,925,371 $ 82,464,944 $ 95. 729,653 $ 84.233.345 Use of money and property 3,896.8 13 6,259,342 4,447,970 (8,501.439) 3,422, 106 Intergovernmental 3,668,557 6,888,590 7,834,260 8.95 1,589 11 ,869,664 Licenses and perm its 4, I 02,665 4.692,847 4.068,238 4. 14 1,902 4,093,63 1 Charges for services 13,385,698 13.937,950 13,601,302 16,373,903 12.741 ,952 Fines and forfeitures 534.012 344.008 134,459 373. 722 326.944 Other I, 187.741 1,922,356 3.185, 11 0 1,948.332 1,393,059 Total revenues 95,7 14,459 111 ,970,464 115,736.283 119.017.662 118.080,70 I Expenditures:

Current:

Administration 6.294.111 6,95 1.541 7,549,386 7.492.277 7.603,732 Law enforcement 13. 108,732 14, 15 1.41 3 14,776.409 15,715.815 15,276.950 Innovation and technology 2,843.540 3,223, 185 1,836,725 2.063. 176 1.825.667 Administrative services 4, I 97.582 4,6 17,787 5, 196,299 5.525.888 5,976.30 I Recreation services 8,996, 11 8 7,688.935 4,787,9 14 4. 729.438 5.432. 183 Community development 9.359,835 9,3 10,827 11 , 177,690 12,627,702 11 .693.554 Public works 19,955,579 22,445,948 24,568, 155 28,542,850 28,22 1,856 Capital outlay: I 0.528.246 12.644,373 19,483,945 12,777, 121 12,533,3 16 Debt service:

Princ ipal repayment 2.220,000 2,290,000 2, 140.000 1,880,000 2,581, 181 Interest and fiscal charges 949,438 882,837 798,747 796,000 739,340 Total expenditures 78.453.18 I 84,206,846 92,3 15,270 92,150,267 9 1,884,080 Excess of revenues over (under) expenditures 17,261,278 27,763,6 18 23.42 1,0 13 26,867.395 26, 196.621 Other financing sources (uses):

Proceeds from debt issuance 22,040,000
Proceeds from debt issuance premium 3.878,704
Payments to refunding agent (27,279.1 18)
Proceeds from sale of capital assets 3,875
Inception of subscription liability 964,745
Transfers in 19,407.6 I 3 35.208,276 12.876,969 23,089,059 11.350,697 Transfers in - fund closing
Transfers out (2 1,06 1,087) (42,304,276) ( 16.2 15,969) (25,776,712) (15,076,576) Total other financing sources (uses) ( 1,649,599) (7,096,000) (4,699,4 14) (2,687,653) (2,76 1,134) Net change in fund balances $ 15,6 11,679 $ 20,667,618 $ 18,72 1,599 $ 24, 179,742 $ 23.435,487 Debt service as a percentage of
noncapital expenditures 4.67% 4.43% 4.04% 3.37% 4.18%
Source: Department of Administrative Services, City of Cupertino. 157
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City of Cupertino
Assessed and -Estimated Actual Value of Taxable Property Last Ten Fiscal Years
Total
Fiscal Year Secured (a)
2014 $ 15,39 1,656,690
2015 16, 133,637,244
20 16 18,308,720,226
2017 20,196,258,418
2018 22,024,906,420
2019 23,402, 123,229
2020 24,370,7 18,536
2021 25,397,33 1,860
2022 27,083,468,890
2023 29,822,398,085
VI $35 C:
,g
ii:i $30
$25
$20
$15
$10
$5
$0 'SI"
.-<
0 N
(a) Net of exemptions
Source: HdL, Coren & Cone
$
Unsecured (a)
813,117,019
965, 141 , 148
1,086, 786,90 I
I, 150,3 I 1,942
I, I 14, 123,426
1,779,936,377
1,64 1,863,322
2,423,984,683
1,724,247,088
1,069,629,678
Lr) <D .-< .-< 0 0 N N
(Unaudited)
State Board of
Equalization
Non-Unitary
$ 1,390,000
,..._
.-<
0 N
00 .-<
0 N
Secured
Exemetions
$ t'1 3,744,809
0)
.-<
0 N
119,476,276
114,223,063
118,257,368
122,805,695
125,245,8 19
138,025,761
145,644,653
149,658,614
154,098,046
0 N
0 N
II Secured Property Id Unsecured Property
Data Source: Santa Clara County Assessor 2013-14 - 2022-2 Combined Tax Rolls $
.-<
N
0 N
Total Assessed &
Est. Full Market
Valuation (a)
16,206,163,709
17,098,778,392
19,395,507, 127
21 ,346,570,360
23,139,029,846
25,182,059,606
26,012,581 ,858
27,82 1,3 16,543
28,807,7 15,978
30,892,027,763
N
N
0 N
CV)
N
0 N
Direct
Tax
Rate

5.62%

5.6 1%

5.59%

5.98%

6.19%

6.38%

6.50%

6.48%

3.55%

7.24%
_______________________ __,__I.Su_ ______________________ _ 454
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Agency
Basic Levy'
Co. Housing Bond 20 16
County Bond 2008 Hospital Facility
· County Library Retirement Levy
County Retirement Levy
Cupertino Elementary
El Camino Hospital 2003
Foothill De Anza College
Fremont High
Los Gatos-Saratoga High 1998
MidPeninsula Open Space 2014
Santa Clara Unified
Santa Clara Valley Water District
Saratoga Elementary
West Valley College
Total Direct & Overlapping' Tax Rates
City's Share of I% Levy Per Prop 13'
General Obiligation Debt Rate
Redevelopment Rate'
Total Direct Rate'
Notes:

City of Cupertino
Direct and Overlapping Property Tax Rates
(Rate per $100 of taxable value)
Last 10 Fiscal Years
2013-1 -t 2014-15 20 15-1 6 20 16-17 20 17-18

1.00000 1.00000 1.00000 1.00000 1.00000

0.00000 0.00000 0.00000 0.00000 0.01266

0.00350 0.009 I 0 0.00880 0.00860 0.00820

0.00240 0.00240 0.00240 0.00240 0.00240

0.03880 0.03880 0.03880 0.03880 0.03880

0.05250 0.05400 0.05 190 0.05090 0.04960

0.0 1290 0.0 1290 0.01290 0.0 1290 0.01000

0.02900 0.02760 0.02400 0.02340 0.02200

0.04050 0.03960 0.05250 0.04030 0.04640

0.035 10 0.05 I 60 0.04230 0.04690 0.04570

0.00000 0.00000 0.00080 0.00060 0.00090

0.07070 0.07040 0.09420 0.08 180 0.08280

0.00700 0.00650 0.00570 0.00860 0.00620

0.04500 0.04580 0.04490 0.04560 0.04580

0.02550 0.0 1200 0.02320 0.0 1960 0.02000

1.36290 1.37070 1.40240 1.38040 1.39146

0.05626 0.05617 0.0557 1 0.05962 0.06 148

0.05623 0.05610 0.05588 0.05976 0.06 187
'In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owne rs are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds. 20verlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners.
'City's Share of I% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the city. ERAF general fund tax s~ifts may not be included in tax ratio figues. •Redevelopment Rate is based on the largest RDA tax rate area and only incl udes rate(s) from indebtedness adopted prior to I 989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. The approval of ABX I 26 eliminated Redevelopment from the State o f California for the fiscal year 2012/13 and years thereafter. 'Total Direct Rate is the weighted average of all individual direct rates applied to by the government preparing the statistical section information and excludes revenues derived from aircraft. Beginning in 20 I 3/14 the Total Direct Rate no longer includes revenue generated from the fonn er redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during 20 I 2/ 13. For the purposes of this report, residual revenue is assumed to be distributed to the City in the same proportions as general fund revenue.

Data Source: Santa Clara County Assessor 2013114 - 2022123 Tax Rate Table 160
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City of Cupertino
Direct and Overlapping Property Tax Rates (Continued)
(Rate per $100 of taxable value)
Last 10 Fiscal Years
A enc 2018-19 2019-20 2020-21 2021-22 2022-23
Basic Levy' 1.00000 1.00000 1.00000 1.00000 1.00000
Co. Housing Bond 20 16 0.0 I 050 0.01000 0.00000 0.01266 0.01080 County Bond 2008 Hospital Facility 0.00720 0.00690 0.00690 0.006 10 0.00630 County Libra1y Retirement Levy 0.00240 0.00240 0.00240 0.00240 0.00240 County Retirement Levy 0.03880 0.03880 0.03880 0.03880 0.03880 Cupertino Elementary 0.03970 0.04 150 0.04030 0.03800 0.03680 El Camino Hospital 2003 0.0 I 000 0.0 1000 0.0 I 000 0.0 I 000 0.00900 Foothill De Anza College 0.02170 0.02080 0.03640 0.03310 0.02910 Fremont High 0.04300 0.04790 0.04780 0.04 I 60 0.03710
Los Gatos-Saratoga High 1998 0.03040 0.01770 0.01930 0.0 1850 0.01790 MidPeninsula Open Space 2014 0.00 I 80 0.00 I 60 0.00150 0.00150 0.00130 Santa Clara Unified 0.07070 0.11760 0. 10450 0. 10140 0.08670 Santa Clara Valley Water District 0.00420 0.004 I 0 0.00370 0.00510 0.00440 Saratoga Elementary 0.04580 0.04640 0.04850 0.04830 0.04850 West Valley College 0.0 1980 0.01860 0.031 10 0.03040 0.02830 Total Direct & Overlapping' Tax Rates 1.34600 1.39530 1.39120 1.38786 1.357~0 City's Share of I% Levy Per Prop 13' 0.06320 0.0653 1 0.06515 0.06528 0.06504 General Obiligation Debt Rate
Redevelopment Rate'
Total Direct Rate' 0.06381 0.06499 0.06463 0.06477 0 .06482 Notes:
'In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all tax ing agencies for which the subject property resides within. In addition to the 1.00% fi xed amount, property owners are charged laxes as a percentage of assessed property values for the payment of any voter approved bonds. 'Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners.
'City's Share of I% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the city. ERAF general fund tax shifts may not be included in tax ratio figues. ' Redevelopment Rate is based on the largest RDA tax rate area and only includes rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. The approval of ABX I 26 e liminated Redevelopment from the State of California for the fiscal year 20 12/ 13 and years thereafter. 'Total Direct Rate is the weighted average of all individual direct rates applied to by the government preparing the statistical section information and excludes revenues deri ved from aircraft. Beginning in 20 13/14 the Total Direct Rate no longer includes revenue generated from the former redeve lopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during 2012/ 13. For the purposes of this report, residual revenue is assumed to be distributed to the City in the same proportions as general fund revenue.

Dala Source: San/a Clara Counly Assessor 201311-1 - 2022/23 Tax Rafe Table 16 1
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Taxpayer
Apple Inc.

Main Street Cupertino
Vallco Property Owner LLC
Cupertino City Center
Cupertino Property Development
PR Cupertino Gateway LLC
Avery Glenbrook LP
Markham Apartments LP
Preg Emerson LLC
Cupertino Village
Total
Source: HdL, Coren & Cone
City of Cupertino
Principal Property Taxpayers
Current Year and Ten Years Ago
(Unaudited)
2023 Percentage of
Assessed Total Assessed
Valuation Valuation
$ 8,080.536,959 26.16%
379. 188,743 1.23%
357.133.944 1.1 6%
253.985.462 0.82%
216.93 5.305 0.70%
137,402,151 0.44%
11 3.723,103 0.37%
I 09,473.477 0.35%
I 07,770.538 0.35%
91,7 I 0,720 0.30%
$ 9,847,860.402 3 1.88%
162
-
$
-
$
20 14
Assessed
Valuation
1,324.522.880
89,929.542
139, I 50,359
1,553,602,78 1
Percentage of
Total Assessed
Val uation

6.38%

0.00%

0.50%

0.00%

6.88%
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Fiscal Total
Year Tax Levy
2014 $ 9. 169,183
20 15 I 0, 178.734
20 16 11,864,026
20 17 13,308,884
20 18 13, 172,425
20 19 16,049, 112
2020 18, 11 7,304
202 1 19, 197,994
2022 20,322,779
2023 2 1,807,628
City of Cupertino
Property Tax Levies and Collections
Last Ten Fiscal Years
(Unaudited)
Percent Delinquent
Current Tax of Levy Tax
Collections Collected (I) Collections ( I)
$ 9, 169.183 100.00%
10, 178,734 100.00%
11 ,864,026 100.00%
13,308,884 100.00%
13, 172.425 100.00%
16,049. 112 100.00%
18, 11 7,304 100.00%
19, 197,994 100.00%
20,322.779 100.00%

21.807.628 100.00%
Total
Tax
Collections
$ 9, 169, 183
I 0.178.734
11 ,864,026
13,308,884
13, 172,425
16,049, 11 2
I 8, 117,304
19, 197,994

20.322,779
2 1,807,628
(I) Per the Teeter Plan, the City receives I 00% of the tax levy, while the County receives delinquencies and penalties.

Source: City of Cupertino NWS
163
Percent or
Total Tax
Collections
to Tax Levy
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
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Fiscal
Year
20 14
20 15
20 16
201 7
20 18
20 19
2020
202 1
2022
2023
City of Cupertino
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(Unaudited)
Percentage
of Estimated
Certi ricates Actual Market Val ue
of Participation of Taxable Property Per Capita

39.980,000 0.23%
37,925,000 0.20%
35,835,000 0.18%
33,700,000 0. 15%

31.520,000 0. 12%

29.300.000 0.11 %

27.010.000 0.10%
19,900.000 0.07%

18.020,000 0.06%
16,065.000 0.06%
Source: City of Cupertino Budget Book
164
%of
Personal
Income
67 1 1.38%
633 1.28%
598 1.21%
579 1.02%
525 0.87%
488 0.8 1%
451 0.7 1%
334 0.48%
297 0.40%
269 0.36%
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City of Cupertino
Direct and Overlapping Bonded Debt
June 30, 2023
2022-23 Assessed Valuation
Overlapping Tax and Assessment Debt:

Santa Clara County
Santa Clara County General Fund Obligations
Santa Clara County Pension Obligations
(Unaudited)
Santa Clara County Board of Education Certificates of Participation Foothill-DeAnza Community College District
Foothill-DeAnza Commun ity College District Certificates of Participation West Valley Community College Dish·ict
West Valley-Mission Community College District General Fund Obligations Santa Clara Unified School District & General Fund Obligations Santa Clara County Vector Control District Certificates of Participation Fremont Union High School District
Cupertino Union School District
El Camino Hospital District
Midpeninsula Regional O pen Space District and General Fund Obligations Santa Clara Valley Water District Benefit Assessment
Total Overlapping Tax and Assessment Debt
Direct Debt: City of Cupertino Certificates of Participation Total Direct and Overlapping Gene ral Fund Debt
Totals bv Categorv:

Total Direct Debt
Total Overlapping Debt
Combined Total Debt
Ratios to 2022-23 Assessed Valuation:

Total Overlapping Tax and Assessme nt Debt
Combined Total Debt
$
Total Debt
6/30/2023
$ 1,041 , 125,000
I, 120,404,570
329,741.844
935,000
603,653,754
20,645,000
694,320,000
8,160,000
1,088,048,000
1,230,000
77 1.685,088
258.383.303
I 05,480.000
82,680,000
38,900,000
6, 165,39 1,559
16,065,000
16,065,000
16,065,000
6, 165,391,559
$ 6, I 8 I ,456,559

2.0 1%

0.05%

2.07%
$
%
Aeeiicable ( I)

4.998% $

4.998%

12.559%

1.977%

4.380%

4.998%

28.026%

51. I 38%

0.89 1%

7.600%

4.998%
$
100.000%
$

30.892.027. 763
City's Share of
Debt 6/30/23
52,035,428
55,997,820
16,480,497
46,73 1
75,8 12.875
2,592,806

13.726.706
161.323
47,656,502
6 1,475
21 6,272,463
132,132,053
939,827
6,283,680
1,944,222
622, 144,410
16,065,000
16,065,000
16,065,000
622, 144,4 I 0
638,209,4 10
The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by dete rmining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
'.) Principal amount as o f 6/30322.
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Debt Limit:

Fiscal
Year
20 14
20 15
20 16
20 17
2018
2019
2020
2021
2022
2023
$
-City of Cupertino
Legal Debt Margin Information
Last Ten Fiscal Years
{Unaudited)
Total Net
Debt Debt Applicable
Limit to Limit
577, 187, 126 $ $
605,0 11.397
686,577.008
757,359,69 1
825.933.99 1
877,579,62 1
913,901,945
I, 118,339,928
1,015,630,083
I, 118,339,928
Secured property assessed value. net of exempt real property Adjusted valuation - 25% of assessed valuation
Debt limit - 15% of adjusted valuation
Amount of Debt Subject to Limit:

Total Bonded Debt
Less: Ce1iificates of Participation not subject to debt limit Amount of debt subject to limit
Legal Debt Margin
Legal
Debl
Margin - 577,187, 126 $
605.0 11 ,397
686,577.008
757,359,69 I
825,933,99 I
877.579,62 1
9 13,90 1,945
I, 118,339,928

1.015.630,083
I, 11 8,339,928
$
$
Total net debt
applicable to the
limit as a% of
debt limit

29.822.398,085
7,455,599,52 1
I, 118.339,928
16,065,000
( 16,065,000)
1, 11 8,339,928
Note: The Government Code of the State of. California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 198 1-82 fiscal year, each parcel is now assessed at I 00% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed va.luation data for each fiscal year from the current full valualion perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state.

Source: City of Cupertino Budget Book
166
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Fiscal
Year
20 14
20 15
20 16
20 17
2018
2019
2020
202 1
2022
2023
Population

59.946 $
59,777
58,185

58.917
60,09 1
59,879
59,549
60,656

66.274

59.656
City of Cupertino
Ratio of General Bonded Debt
Last Ten Fiscal Years
(Unaudited)
Assessed General
Value Bonded Debt
17,098,778,392 $

19.395,507, 127

19.395,507, 127
21 ,346,570,360

23.139,029,846
25, 182,059,606
27,82 1,316,543
27,821,316.543
28,807,715,978
30,892,027,763
Sources: HdL, Coren & Cone/Cupertino Budget Book
167
$
Bonded Debt
Per Capita
$
Ratio of General
Bonded Debt to
Assessed Value
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City of Cupertino
Demographic and Economk Statistics
Last Ten Fiscal Years
% of % of
City City County Population Population
City County Population Per Capita **Public Unemploy Unemploym Over 25 with Over 25 with Fiscal Population Population % of City Personal Pe rsonal School ment Rate ent Rate Median High School Bllchelor's Year (1) (1) Conntv Income (2) Income (2) Enrollment (%)(3) (%) (3) Age (4) Degree Degree 20 13-14 59,946 1,868,558 3.21% 3,090,636,000 51 ,557 29,904 3.4% 6.8% 40.0 96.2% 74.2% 20 14-15 59,777 1,889,638 3. 16% 3, I 86,772,000 53,3 11 29,871 4.2% 3.8% 40.0 96.5% 74.6% 20 15-16 58, 185 1,927,888 3.02% 3,340, 132,000 57,405 29,684 3.4% 4.2% 40.2 96.5% 75.6% 2016-1 7 58,917 1,938, 180 3.04% 3,486,805,000 59, 181 29,467 3.0% 3.8% 40.6 96.7% 760% 2017- 18 60,09 1 1,938,153 3.10% 3,620,255,000 60,246 29,255 3.3% 3.8% 40.7 97.1% 76.6% 2018-19 59,879 1,937,570 3.09% 3,821,320,000 63,817 29,240 2.6% 2.3% 41.1 97.1% 77.2% 2019-20 59,549 1,927,852 3.09% 4,114,967,000 69,102 29,550 2.4% 10.7% 41.1 97.2% 78.1% 2020-21 60,656 1,936,259 3. 13% 4,378,045,000 74,485 30,900 4.9% 5.2% 4 1.6 97.2% 78.8% 202 1-22 66,274 1,934,1 71 3.43% 4,571 ,170,000 76,684 24,380 3.7% 2.2% 4 1.2 97.3% 79.6% 2022-23 59,656 1,902,799 3.14% 5,214,787,000 88, 156 23,486 2.3% 3.7% 4 1.0 970% 80.9% Notes and Data Sources:

Population: California State Department of Finance. Unemployment Data: California Employment Development Department Income, Age, and Education Data: ESRI - Demographic Estimates are based on the last available Census. Projections are developed by incorporating all of the prior census data released to date. Demographic Data is totaled from Census Block Groups that overlap the City's boundaries 20 I- and later - Income, Age and education Data - US Census Bureau, most recent American Community Survey **Reported Public School Enrollment rellects the total number of students in the Fremont Union High School District and Cupertino Union School District Previously published reports included Fremont Union High School District only. https ://dq . cde. ca. qov/dataq uest/dq census/En r AqeG rd .aspx?cd s=436946 8&agg level =district& ye a r= 2021-2 2 https :/ id g. cde. ca. g ov/d a tag u es t/dq census/En r Age G rd. as px? cd s=4369419& aggleve l=d is trict& year= 2 021-22 https://labormarketinfo.edd.ca.gov/data/industry-employment-and-unemployment-rates-for-counties.html chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://labormarketinfo.edd.ca.gov/file/lfmonth/2306rcou.pdf 168
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Employer
Apple
De Anza College
Force 5 Software Inc
Whole Foods Market
Claris International, Inc
Health Care Center at the Forum
Target
Cupertino Union School District
City of Cupertino
Mist Systems. Inc.

Source: Data-Ax le
City of Cupertino
2023 Employer Ranking
(Unaudited)
Ranking Employer
I lntero Real Estate Services. Inc
2 Keller Williams Realty
3 Cupertino Healthcare & Wellness Center
4 Exilant
5 BJ's Resturant & Brewhouse
6 Sunny View Retirement Community
7 Insight Solutions Inc
8 Cupertino High School
9 Monta Vista High School
10 Nexsales Corp
169
Ranking
11 12
13 14
15 16
17 18
19 20
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Ol l
JfllV/q ljil/ ~i/Vl/Of/lli!/ll! a:Jvd Sfl/.L
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City of Cupertino
Full-Time Equivalent City Employees by Function/Program Last Ten Fiscal Years
(Unaudited)
Funct_ion/Program 201~ 201 5 2016 2017 2018 2019 2020 2021 2022 2023 Council and Comm issions
Administration
Innovation & Technology
Administrative Services
Parks & Recreation
Community Development
Public Works
Law Enforcement
Total

1.57 1.55 1.60 1.55 2.35 2.35

10.75 10.75 10.85 10.57 14. 12 15.47
I 1.00 10.25 11 .40 13.95 14.55 15.05
I 1.00 12.00 12.30 12.30 12.00 14.00

29.48 31.28 32.1 8 33.08 35.13 34.80

24.83 24.80 27.30 28. 18 28.08 28. 13

74.1 2 77. 12 82. 12 84.1 2 84.52 84.95

2.00 2.00 2.00 2.00 2.00 2.00
164.75 169.75 179.75 185.75 192.75 196.75

2.5 1

15.1 5

14.95 16.00

32.1 0

28.29 88.75

0.00 197.75

2.53 17.85

11.93 15.90
3 1.90

28.49 90.1 5

0.00 198.75
250 -~-----------------------------
150
100
50 20 I 4 20 I 5 20 I 6 20 I 7 2018 20 I 9 2020 202 1
Source: City of Cupertino Budget
17 1
2022 2023
■ Public Works
Commun ity
Development
Recreation
Administrative
Services
■ Innovation &
Technology
Administration
■ Council and
Commissions

7.30 7.2

24.30 21.8

13.40 14.9

18.90 17.9

29.50 27.6

37.50 34.4

94. 10 88.1

0.00 0.00
225.00 2 11.90
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City of Cupertino
Operating Indicators by Function/Program
Last Ten Fiscal Years
(Unaudited)
Function/Program 20 1~
Law Enforcement Sheriff Response
Priority One-Respond within 5 minutes 4.30 Min.

Priority Two-Respond within 9 minutes 6.39 Min.

Priority Three-Respond within 20 minute! 10.76 Min.

Public Works
Street Sweeping 575 Curb Miles
Street Maintenance 24 Hrs of Call
Number of development permit applications received
Number of encroachment pen,1 its received
Stonn Drain Inlets Inspected/Cleaned
Roadway Signs Repaired/Replaced
Number of trees planted vs. removed
Parks & Recreation
Number of reservations at Quinlan Center
Number of rounds of golf at BBF Golf Course
Sports Center Memberships
Number of Senior Center classes offered
Senior Center Memberships
Quinlan Community Center Rental Reven
Community Development
1,950
2,623
$109,342
2015

4.90 Min.

6.56 Min.

10.52 Min.
575 Curb Miles
24 Hrs of Call
2,000
2,549
$1 10,033
20 16

4.90 Min.

6.56 Min.

10.52 Min.
575 Curb Miles
24 Hrs of Call

1.989
2,493
$104,150
20 17

5.07 Min

8.00 Min.

15.79 Min
534 Curb Miles
24 Hrs of Call
2,0 15
2,094
$128,778
2018

4.23 Min.

7.49 Min.

14.79 Min.
534 Curb M ilcs
24 Hrs of Call
428
121
815
404
53/67
560
28, 193
1,850
246
2,260
$72,948
Approved Building Plan Sets
Discretionary Land Use Applications
Public Notice of Upcoming Projects
Number of preliminary reviews
95% Within 7 Work Days 95% Within 7 Work Days 95% Within 7 Work Days 95% Within 7 Work Days 95% Within 7 Work Days 99% Within 21 Work Days 99% Within 2 1 Work Days 99% Within 21 Work Days 99% Within 21 Work Days 99% Within 21 Work Days Number of planning applications received
Number of perm its received
Number of inspections requested
Administrative Sen•ices
Accounts Payable Processing
Business License Renewal Certificates
Number of regular recruitments
Number of new hires
Number of temporary new hires
Number of vendor checks processes
Number of payroll checks process
Number of business license applications
Number of journal entries posted
Number of receipts processed
Library
Volumes in Collection
Annual Gale Count
Annual Circulation Children's Items
Annual Circulation Adult and Teen Items
Adult Classes and Events
Adult Classes and Events Attendence
Teen Classes and Events
Teen Classes and Events Attendenee
Children's Classes and Events
Children's Classes and Events Allcndence
Volunteer Hours
100% Within 10 Days
7 Days
3 Days
IOO% Within 10 Days
7 Days
3 Days
36 18 17
869762
1474996
999766
209
11860
52 3393
458
25529
11786
Sources: City o f Cupe rtino PM & Wis and Santa Clara County Library District 172
IOO% Within 10 Days
7 Days
J Days
364,557
880,894
1,544,095
1,032,326
2 15
8,855
78 3,135
493
28,532
10,000
I 00% Within IO Days
7 Days
3 Days
369,924
835,073
1,448,265
950.453
242
9,242
66 2,571
440
25,857
9,645
100% Within 10 Days
82 169
2322
16026
7 Days
3 Days
21 26
101
6793
10387
1294
2830
9766
367,979
873,862
1,453, 173
980,609
206
7,622
79 2,495
426
24,675
10,302
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City of Cupertino
Operating Indicators by Function/Program (Continued)
Last Ten Fiscal Years
(Unaudited)
Function/Program 2019 2020 202 1 2022 2023
Law Enforcement Sheriff Response
Priority One-Respond within 5 minutes 4.39 Min. 3.5 1 Min. 3.40 Min. 5.33 Min 6.57 Min Priority Two-Respond within 9 minutes 6.23 Min. 6.37 Min. 607 Min. 6.94 Min. 7.46 Min.

Priority Three-Respond within 20 mi nutes 12. 11 Min. 11.96 Min. 11 .80 Min. 11.73 Min 12.72 Min Public Works
Street Sweeping 534 Curb Miles 534 Curb Miles 534 Curb Miles 534 Curb Miles 534 Curb Miles Street Maintenance 24 Hrs of Call 24 Hrs of Call 24 Hrs of Call 24 Hrs of Call 24 Hrs of Call Number of development permit application, 434 428 127 128 127 Number of encroachment permits received 136 134 577 426 449 Stonn Drain Inlets Inspected/Cleaned 1063 1638 1802 80% 53% Roadway Signs Repaired/Replaced 721 346 1151 3.5% 2.0%
Number of trees planted vs. removed 155/192 164/190 187/202 211/187 153/ 105 Parks & Recreation
Number of reservations at Quinlan Center 402 526 8 260 405 Number of rounds of gol rat BBF Golf Corn 27,205 28,952 43,650 45367 37961 Sports Center Memberships 1,952 1,802 1,655 1186 1394
Number of Senior Center classes offered 320 258 100 183 235 Senior Center Memberships 2, 171 2,17 1 1,470 210 1087
Quinlan Community Center Rental Revenu, $139,590 $139,590 $5,507 $1 15,093 $126,670 Community Development
Approved Building Plan Sets 95% Within 7 Work Days 95% Within 7 Work Days 95% Within 7 Work Days 95% Within 7 Work Days 95% Within 7 Work Days Discretionary Land Use Applications 99% Within 21 Work Days 99% Within 21 Work Day, 99% Within 21 Work Day: 99% Within 21 Work Day, 99% Within 21 Work Days Public Notice of Upcoming Projects 100% Within 10 Days 100% Within JO Days 100% Within JO Days 100% Within JO Days 100% Within JO Days Number of preliminary reviews 90 110 163 142 127
Number of planning applications received 138 194 237 30 1 232 Number of pennits received 2,32 1 2,534 2,364 2380 2618 Number of inspections requested 13,625 14,596 13,374 11906 1518 1 Administn1tive Services
Accounts Payable Processing 7 Days 7 Days 7 Days 7 Days 7 Days Business License Renewal Certificates 3 Days 3 Days 3 Days 3 Days 3 Days Number or regular recruitments 21 28 24 33 29
Number of new hires 16 14 2 1 38 3 1
Number of temporary new hires 105 38 17 77 70
Number of vendor checks processes 6,536 5,906 4,457 4993 5130 Number of payroll checks process 10,30 1 10,802 7,8 16 8119 9176 Number of business license applications 1, 154 1,032 1,06 1 884 969 Number of journal entries posted 4,521 4,558 3,915 3635 3695 Number of receipts processed 13,9 13 18,992 10,367 9353 11275 I Library
Volumes in Collection 367,10 1 368,46 1 350,088 367,745 367,745 Annual Gate Count 904,349 620,007 128,912 387,285 387,285 Annual Circulation Children's Items 1,535,842 1, 192,880 1,207,878 1,771 ,986 1,771,986 Annual Circulation Adult and Teen Items 1,049, 166 83 1, 114 750,602 1,056,45 1 1,056,451 Adult Classes and Events 207 396 459 62 62
Adult Classes and Events Attendencc 8,304 9,986 19,223 86 1 861 Teen Classes and Events 52 57 31 2 1 2 1
Teen Classes and Events Attendence 1,283 8,495 7, 151 916 916 Children's Classes and Events 424 477 464 105 105
Children's Classes and Events Attendence 22,851 26,032 52,634 7,7 11 7,711 Volunteer Hours 10, 191 6,592 465 4305.8 4305.8
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Function/Pro~ram
Public Works
Centerlane Miles of Streets
Streetlights
Traffic Signals
Culture & Recreation
Parks and Open Spaces
Park and Landscape Acreage
City Trails
Golf Courses
Community Center
Community Hall
Senior Center
Sports Center
Swimming Pools
Tennis Courts
Sports Fields
City Library
City of Cupertino
Capital Assets Statistics by Function/Program
Last Ten Fiscal Years
(Unaudited)
2014
142
2,950
48 21
169
3 17
41 2015
142
2,950
48 21
169
3 28
41 2016
142

2.950
48 21
169
3 I
28 41
Source: City of Cupe rtino Budget Book/GIS Team
174
20 17
142

2.950
48 21
169
3 28
41 I
20 18
142

2.950
52 21
169
3 28
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Function/Program
Public Works
Centerlane Miles of Streets
Streetlights
Traflic Signals
(::ulture & Recreation
Parks and Opep Spaces
Park and Landscape Acreage
City Trails ·
Go! f Courses
Community Center
Community Hall
Senior Center
Sports Center
Swimming Pools
Tennis Courts
Sports Fields
City Library
City of Cupertino
Capital Assets Statistics by Function/Program (Continued) Last Ten Fiscal Years
(Unaudited)
2019
142
2,950
52 21
169
3 28
41 175
2020
142
2,950
52 21
169
3 I
28 41
2021
142

2.950
52 21
169
3 I
28 41
2022
142
2,950
52 21
169
3 I
28 41
2023
142
2,870
61 21
169
5 I
28 41
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Community Economic Profile
Cupertino, with a population of 66,274'and City limits stretching across 13 square miles, is considered one of the most prestigious cities to live and work in the Bay Area.

Economic health is an essential component to maintaining a balanced city, which provides high-level opportunities and services that create and help sustain a sense of commwuty and quality of life. Public and private interests must be muh1al so that success as a partnership is a direct reflection of success as a community. The cornerstone of tlus partnership is a cooperative and responsive government that fosters residential and business prosperity and strengthens working relationships among all sectors of the community.

Because Cupertino is a mahire, 93% built-out city, the City of Cupertino focuses on business retention and revitalization. Cupertino is world-renowned as the home to high-tech giant Apple, Inc., and as a community with stellar public schools. De Anza College, one of the largest single-campus community colleges in the country, is another major employer and a magnet for attracting local and international students. The City's proactive economic development efforts have resulted in an innovative environment for start-ups and growing companies to thrive, including Bromium, DURECT, SugarCRM, Panasonic Venture Group, Altia Systems, Mirapath, Aemetis Inc, Mist Systems, and Plus. The City strives to retain and attract local companies through active outreach and a responsive and customer-oriented entitlement process.

Cupertino is excited to have a number of new mixed-use development projects offering more retail and d ining options, as well as providing additional housing opporhuuties to meet the needs of the growing community.

The Main Street and Nineteen800 mixed-use developments have created a vibran t downtown area for Cupertino, offering a large selection of restaurants and retailers, including Alexander 's Steak.house, Eureka!, Oren's Hummus, Lazy Dog, Ippudo, Pasta Armellino, HaiDiLao Hot Pot Restaurant, Pineapple Thai, Pressed Juicery, Orangetheory, 85 Degree Bakery, SomiSomi, Sul & Beans, Kura Sushi, Vitality Bowls, La Pizzeria, Tancha, Koja Kitchen, Bishops Cuts & Colors, Capezio, Howard's Shoes, and Meet Fresh. Housing, office, and the Residence Im, by Marriott are available to support tl,e thriving area.

Serving as a long-time retail anchor for the community, The Marketplace has a variety of stores and restaurants popular with sh1dents, families, and working professionals. They include Galpao Gaucho, Dai.so, Marukai Groceries, Harunu Su shi, La Patisserie Bakery, Beard Papa's, Legend's Pizza, Icicles, Kong's Tofu & BBQ Rori Rice, One Pot Shabu Shabu, Olarn Thai, and Erik's DeliCafe to name a few.

Cupertino Village is undergoing renovations to upgrade existing buildings, construct new buildings, parking, and open-courtyard space. The shopping center is home to 99 Ranch Market, Duke of Edinburgh Pub & Restaura11t, JSJ Street Kitchen, Kira Kira Beauty, MOD Pizza, Ten Ren Tea, Fantasia Coffee & Tea, Kee Wah Bakery, Happy Lemon, and many other Asian restaurants, bakeries, and shops. The property owners have received approval to construct a new full-service boutique hotel with 185 rooms to accommodate business and leisure travelers.

Cupertino feah 1res many other retail opportunities, including TJ Maxx and Home Goods, Whole Foods, Target, Party City, and over 180 restaurants to serve residents and the local workforce. There are now seven hotels providing over 1,000 rooms, to serve the area: The Alo Cupertino, Cupertino Hotel, Hilton Garden Inn, Hya House, Juniper Hotel operated by Curio, Marriott Courtyard, and Residence Inn by Marriott.

Another longtime retail anchor in north Cupertino is Homestead Square Shopping Center, located at Homestead Road and De Anza Boulevard. This shopping center includes a 24-hour Safeway, U1ta Beauty, Ross Stores, Pet Club, Michael's, Rite Aid, FedEx, and numerous restaurants, such as Fish's Wild, Pho Hoa Noodle Soup, Yayoi Teishoku Japanese Restaurant, Starbucks, Clupotle, and financial instih1tions. 177
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Recently approved is the redevelopment of The Oaks Shopping Center site, located off of State Route 85 freeway and across from De Anza College. The Westport Cupertino project will be a mixed-used development consisting of 259 housing units (Rowhouse{fownhomes, senior apartments) 35 memory care rooms, -and 20,000 square feet of commercial space.

Apple Park, Apple's newest corporate campus, features approximately 2.8 million square feet of office and R&D space north of Highway 280 between Wolfe Road and Tantau Avenue. A state-of-the-art Visitors Center, Observation Deck, flagship retail store, and cafe are open to the public. 178
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CITY OF CUPERTINO
Agenda Item
24-13274 Agenda Date: 7/16/2024
Agenda #: 2.

Subject: Approve the Amended June 19, 2024 City Council minutes Approve the Amended June 19, 2024 City Council minutes
CITY OF CUPERTINO Page 1 of 1 Printed on 7/10/2024
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1 CITY COUNCIL STAFF REPORT
Meeting: July 16, 2024
Subject
Approval of the amended June 19, 2024 City Council minutes Recommended Action
Approve the amended June 19, 2024 City Council minutes
Background:

An amendment was made to the approved June 19, 2024 City Council minutes. The following line was added to Page 1 for Item 1:

Written communications for this item included emails to Council.

Attachments Provided with Original Staff Report:

A. Draft Minutes
Attachments Provided with this Staff Report:

B. Amended Minutes (redline)
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Amended

APPROVED MINUTES

CUPERTINO CITY COUNCIL
Wednesday, June 19, 2024

SPECIAL MEETING
At 4:01 p.m., Mayor Sheila Mohan called the Special City Council Meeting to order in Cupertino City Hall Conference Room C, 10300 Torre Avenue.

ROLL CALL

Present: Mayor Sheila Mohan, Vice Mayor J.R. Fruen, and Councilmembers Liang Chao, Kitty Moore, and Hung Wei. Absent: none.

In open session prior to closed session, Mayor Mohan opened the public comment period regarding any item on the agenda. No members of the public requested to speak, and Mayor Mohan closed the public comment period.

CLOSED SESSION

1. Subject: Conference with real property negotiator pursuant to Government Code § 54956.8
Property: 19400 Stevens Creek Blvd., Cupertino (APN 375 01 023) Agency Negotiator: Pamela Wu (Appointment Pending)
Negotiating Party: Yuki Farms
Under Negotiation: Price and terms of payment
Written communications for this item included emails to Council.

Council conducted the conference with real property negotiator regarding Property:
19400 Stevens Creek Blvd., Cupertino (APN 375 01 023); Agency Negotiator: Pamela Wu (Appointment Pending); Negotiating Party: Yuki Farms; Under Negotiation: Price and terms of payment.

2. Subject: Conference with legal counsel ‐ anticipated litigation: significant exposure to litigation pursuant to Government Code § 54956.9(b) (one case) Council conducted the conference with legal counsel regarding anticipated litigation:
significant exposure to litigation.
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Page 2 ends

Cupertino City CouncilJuly 16, 2024

Cupertino City Council
July 16, 2024