Mayor Councilmembers
Lisa Motoyama Paul Fadelli
Mayor Pro Tem Gabriel Quinto
Tessa Rudnick AGENDA Carolyn Wysinger
TUESDAY, MARCH 21, 2023
REGULAR CITY COUNCIL MEETING (6:00 PM)
City Council Chambers - 10890 San Pablo Ave, El Cerrito Join Via Zoom:
https://us06web.zoom.us/j/85949362475?pwd=STY1NWJLdmZOOFJhMWJZalBMeHI0QT09 Meeting ID: 859 4936 2475 Password: 266756 Dial in: 1-408-638-0968 View:
1. Cable T.V. Broadcast on KCRT Channel 28
2. Livestream Online at www.el-cerrito.org/CouncilMeetingMaterials Accommodations: In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk at 510- 215-4305. Notification 48 hours prior to the meeting will enable the City to make reasonable accommodations. Closed Captions available via zoom.
Conduct: This meeting shall be conducted pursuant to the El Cerrito City Council Rules of Order and Procedure, including adjourning by 11:00 PM unless extended to a specific time determined by a majority of the Council.
Public Comments:
1. In-person by submitting a request to speak to the City Clerk.
2. Via Zoom using the “Raise Hand” icon to request to speak.
3. By Phone at 1-408-638-0968, dial *9 to "raise your hand".
4. By Email to [email protected] identified in the subject line as Public Comments – Agenda Item #.
Written comments received by 2:00 p.m. the day of the meeting will be provided to the City Council and posted online in advance of the meeting. Comments received after the deadline will be provided to the City Council and will be posted after the meeting. 6:00 PM ROLL CALL – CONVENE REGULAR CITY COUNCIL MEETING
1. CONSIDER AND TAKE ACTION ON ANY REQUEST FROM A
COUNCILMEMBER TO PARTICIPATE IN THE MEETING REMOTELY DUE TO EMERGENCY CIRCUMSTANCES PURSUANT TO AB 2449
2. PLEDGE OF ALLEGIANCE TO THE FLAG OR OBSERVATION OF A
MOMENT OF SILENCE
3. TELECONFERENCE AND PUBLIC COMMENT INSTRUCTIONS
Agenda Packet Page 1 of 401
Mayor Councilmembers
Lisa Motoyama Paul Fadelli
Mayor Pro Tem Gabriel Quinto
Tessa Rudnick AGENDA Carolyn Wysinger
4. COUNCIL/STAFF COMMUNICATIONS
Reports of closed session, commission appointments and informational reports on matters of general interest which are announced by the City Council and staff.
5. ORAL COMMUNICATIONS FROM THE PUBLIC
Remarks are typically limited to 3 minutes per person. The Mayor may reduce the time limit per speaker depending upon the number of speakers and may limit the total time for public comment to facilitate the completion of business on the agenda. Comments regarding non-agenda, presentation and consent calendar items will be heard first.
Comments related to items appearing on the Public Hearing or Policy Matter portions of the Agenda will be heard prior to the City Council taking action on each item.
6. PRESENTATIONS
A. Police Department Employee Recognition for Officer of the Year and Professional Staff of the Year
Action Proposed: Approve 1) a proclamation commending and congratulating Officer Michael Olivieri as Officer of the Year and 2) a proclamation commending and congratulating Records Specialist Veronica Ceja as Professional Staff of the Year.
Contact: Paul Keith, Chief of Police, El Cerrito Police Department B. Contra Costa Transportation Authority Agency Update
Action Proposed: Receive and file a presentation from Contra Costa Transportation Authority (CCTA) on the agency's programs, projects, and vision for the future.
Contact: Timothy Haile, Executive Director, CCTA
C. Annual Comprehensive Financial Report for Fiscal Year Ending June 30, 2022
Action Proposed: Receive and file a presentation on the Annual Comprehensive Financial Report for Fiscal Year Ending June 30, 2022 Contact: Sheldon Chavan, Partner, Chavan & Associates LLP; Sandra Dalida, Finance Director/Treasurer, Finance Department
7. ADOPTION OF THE CONSENT CALENDAR
All items on the consent calendar shall be acted upon in one motion, unless a member of the City Council or staff request separate consideration.
Agenda Packet Page 2 of 401
Mayor Councilmembers
Lisa Motoyama Paul Fadelli
Mayor Pro Tem Gabriel Quinto
Tessa Rudnick AGENDA Carolyn Wysinger
A. Approval of Minutes
Action Proposed: Pass a motion to approve the minutes from the meetings of February 14, February 16, February 21, and March 7, 2023.
Contact: Holly M. Charléty, City Clerk, City Management B. Prescription Drug Abuse Awareness Proclamation
Action Proposed: Pass a motion to approve a proclamation declaring March 2023 as Prescription Drug Abuse Awareness Month in the City of El Cerrito.
Contact: Holly M. Charléty, City Clerk, City Management C. Proclamation Recognizing Education and Sharing Day
Action Proposed: Pass a motion to approve a proclamation declaring April 2, 2023 as Education and Sharing Day in the City of El Cerrito and to raise awareness and strengthen the education of our children.
Contact: Holly M. Charléty, City Clerk, City Management D. Economic Development Committee Appointments
Action Proposed: Approve an Economic Development Committee recommendation to reappoint member Jean Shrem and George Gager, effective March 1, 2023.
Contact: Aissia Ashoori, Housing-Economic Development Manager E. Committee on Aging Appointments
Action Proposed: Approve the Committee on Aging recommendation and re-appoint Janet James and Kim Marlia to the Committee, effective March 1, 2023.
Contact: Bridget Cooney, Recreation Supervisor, Recreation Department
F. Annual Progress Report for the General Plan & Housing Element Action Proposed: Receive and file the attached 2022 Annual Progress Report on the General Plan and Housing Element.
Agenda Packet Page 3 of 401
Mayor Councilmembers
Lisa Motoyama Paul Fadelli
Mayor Pro Tem Gabriel Quinto
Tessa Rudnick AGENDA Carolyn Wysinger
Contact: Diego Romero, Assistant Planner; Aissia Ashoori, HousingEconomic Development Manager; Sean Moss, Planning Manager, Community Development Department
G. Receive Monthly Disbursement and Payment Register Report for the Month of February 2023
Action Proposed: Receive and file the Monthly Disbursement and Check Register Report for the month of February 2023.
Contact: Sandra Dalida, Finance Director/ Treasurer, Finance Department
H. Annual Parcel Assessment for the National Pollutant Discharge Elimination System (NPDES) Program and Drainage Maintenance Activities for Fiscal Year 2023-24
Action Proposed: Adopt a resolution establishing the annual parcel assessment for the National Pollutant Discharge Elimination System (NPDES) program and Drainage Maintenance activities at the current rate of $38.00 per Equivalent Runoff Unit (ERU) and authorizing the Contra Costa County Flood Control & Water Conservation District to adopt Stormwater Utility Area (SUA) levies based on said amount for Fiscal Year (FY) 2023-24.
Contact: Christina Leard, Management Analyst III; Will Provost, Operations + Environmental Services Division Manager; Yvetteh Ortiz, Public Works Director/City Engineer, Public Works Department I. Amendment to Custodial Services Agreement with Universal Building Services
Action Proposed: Adopt a resolution authorizing the City Manager to extend the Recreation Department's custodial services agreement with Universal Building Services through the remainder of fiscal year (FY) 2022-23 for a total amount not to exceed $95,000.
Contact: Christopher Jones, Recreation Director, Recreation Department
J. Amendment to Agreement with St. Francis Electric for Electrical Traffic Control Devices and Lighting Maintenance and Repair Services
Agenda Packet Page 4 of 401
Mayor Councilmembers
Lisa Motoyama Paul Fadelli
Mayor Pro Tem Gabriel Quinto
Tessa Rudnick AGENDA Carolyn Wysinger
Action Proposed: Adopt a resolution authorizing the City Manager to execute an amendment to the agreement with St. Francis Electric, for Electrical Traffic Control Devices and Lighting Maintenance and Repair Services, to increase the contract amount an additional $80,000 in fiscal year (FY) 2022-23 and, contingent upon funding being appropriated by the City Council next fiscal year, $55,000 in FY 2023-24, with the total compensation not to exceed $175,000 in FY 2022-23 and the total compensation not to exceed $150,000 in FY 2023-24.
Contact: Will Provost, Operations and Environmental Services Division Manager; Yvetteh Ortiz, Public Works Director/City Engineer, Public Works Department
K. A Resolution Authorizing Execution of An Agreement for the Affordable Housing Sustainable Communities Program for El Cerrito Plaza Parcel A South for Transit-Oriented Development at the El Cerrito Plaza Station and submission of an application for Affordable Housing Sustainable Community Program funds as a coapplicant with Related Action Proposed: Adopt a resolution authorizing the City Manager to execute an agreement for the Affordable Housing Sustainable Communities (AHSC) Program as a co-applicant with The Related Companies of California, LLC (Developer), for El Cerrito Plaza Station Transit-Oriented Development (TOD), Parcel A South (EC-PAS) located at 515 Richmond Street, to construct 70 affordable housing units and associated multimodal transportation improvements and to submit an application to the AHSC Program as a co-applicant.
Contact: Aissia Ashoori, Housing Manager; Jarrett Mullen, Sustainable Transportation Program Manager, Community Development Department; Melanie Mintz, Community Development Director
8. PUBLIC HEARINGS
9. POLICY MATTERS
A. Automated License Plate Reader Camera Program
Action Proposed: Adopt a resolution authorizing the City Manager to enter into an agreement with Flock Group Inc. to provide automated license plate reader cameras to the City of El Cerrito for an amount not to exceed $340,000 between July 1, 2023 and June 30, 2026.
Contact: Paul Keith, Chief of Police, El Cerrito Police Department Agenda Packet Page 5 of 401
Mayor Councilmembers
Lisa Motoyama Paul Fadelli
Mayor Pro Tem Gabriel Quinto
Tessa Rudnick AGENDA Carolyn Wysinger
10. CITY COUNCIL LOCAL & REGIONAL LIAISON ASSIGNMENTS
Mayor and City Council communications regarding local and regional liaison assignments and committee reports.
11. ADJOURN REGULAR CITY COUNCIL MEETING
The next regularly scheduled City Council meeting is Tuesday, April 4, 2023 at 6:00 p.m.
The City of El Cerrito serves, leads and supports our diverse community by providing exemplary and innovative services, public places and infrastructure, ensuring public safety and creating an economically and environmentally sustainable future.
Agenda Packet Page 6 of 401
Agenda Item No. 6.A.
EL CERRITO CITY COUNCIL PROCLAMATION
Commending and Congratulating Officer Michael Olivieri for his Selection as El Cerrito Police Department Officer of the Year
WHEREAS, Officer Michael Olivieri has served the City of El Cerrito in many roles including Police Cadet, Records Specialist, Community Service Officer and now as a Police Officer; and
WHEREAS, Michael Olivieri was selected as the 2018 Professional Staff Member of the Year for his collaborative spirit and ability to surpass expectations; and WHEREAS, Michael Olivieri was selected as the 2021 Police Officer of the Year for his community service orientation, learning mindset and pursuit of excellence; and WHEREAS; for the second year in a row, Michael Olivieri has once again been selected as the Officer of the year for his outstanding performance; and WHEREAS, Michael Olivieri has made a significant impact on vehicle theft, being personally responsible for recovering 20% of all stolen vehicles recovered by the El Cerrito Police Department; and
WHEREAS, Michael Olivieri tackles challenging investigations and is not content until he has exhausted all leads to bring a case to conclusion; and WHEREAS, Michael Olivieri stood out as a pillar of strength and support for his coworkers, during a year beset by staffing challenges, encouraging his peers, and demonstrating a supportive attitude; and
WHEREAS, Michael Olivieri is a tenacious crime fighter who treats all he encounters, whether coworker, suspect, or community member with professionalism and respect and is a role model for other officers to follow.
NOW THEREFORE, the City Council of the City of El Cerrito does hereby commend and congratulate Officer Michael Olivieri on the occasion of his recognition as Officer of the Year. The City Council extends sincere appreciation to Officer Michael Olivieri for his devotion to the mission, vision, and values of the El Cerrito Police Department.
Dated: March 21, 2023
___________________________
Lisa Motoyama, Mayor
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Agenda Item No. 6.A.
EL CERRITO CITY COUNCIL PROCLAMATION
Commending and Congratulating Records Specialist Veronica Ceja for her Selection as El Cerrito Police Department Professional Staff of the Year WHEREAS, Veronica Ceja began her law enforcement career with the Contra Costa County Sheriff’s Office, before becoming a Records Specialist with the El Cerrito Police Department in 2017; and
WHEREAS, Veronica Ceja quickly demonstrated her expertise and skills in records management; and
WHEREAS, Veronica Ceja was identified as a trainer for records staff where she passed on her knowledge to new employees; and
WHEREAS, Veronica Ceja has stepped up to assist the department when vacancies impacted department operations by serving as a temporary property and evidence specialist, executive assistant, and records supervisor at various times; and WHEREAS, Veronica Ceja was tasked with guiding the department through the transition from the Uniform Crime Reporting method to the National Incident Based Reporting System and did so by overcoming technological and training challenges that stood in the way; and
WHEREAS, Veronica Ceja organizes informal employee workplace events that build camaraderie and community and help make the El Cerrito Police Department a welcoming place to work; and
WHEREAS, Veronica Ceja was promoted to Senior Records Specialist in December 2022; and
WHEREAS, Veronica Ceja has displayed her dedication through her can-do attitude, patience, and compassion to her coworkers and community members.
NOW THEREFORE, the City Council of the City of El Cerrito does hereby commend and congratulate Records Specialist Veronica Ceja on the occasion of her recognition as El Cerrito Police Professional Staff of the Year. The City Council extends sincere appreciation to Veronica Ceja for her devotion to the mission, vision, and values of the El Cerrito Police Department.
Dated: March 21, 2023
___________________________
Lisa Motoyama, Mayor
Agenda Packet Page 8 of 401
AGENDA BILL
Agenda Item No. 6.C.
Date: March 21, 2023
To: El Cerrito City Council
From: Sheldon Chavan, Partner, Chavan & Associates LLP; Sandra Dalida, Finance Director/Treasurer, Finance Department
Subject: Annual Comprehensive Financial Report for Fiscal Year Ending June 30, 2022
ACTION PROPOSED
Receive and file a presentation on the Annual Comprehensive Financial Report for Fiscal Year Ending June 30, 2022
BACKGROUND
The Annual Comprehensive Financial Report (ACFR) is the compilation of government financial statements comprising the financial report of a U.S. state, municipal or other governmental entity that complies with the accounting requirements promulgated by the Governmental Accounting Standards Board (GASB). In addition, completion and submission of the ACFR is in accordance with the City of El Cerrito's Comprehensive Financial Policy, Section 5.1.1 Financial Reporting Policies – Annual Audit.
ANALYSIS
The ACFR is prepared in accordance with requirements set forth by the Governmental Accounting Standards Board (GASB) with the intent of providing its readers with an understanding of the City’s financial affairs. The ACFR identifies the City’s financial position and results of operations based on financial activities of the various funds and account groups.
The City contracted with Chavan & Associates LLP, as the independent auditor to perform the audit of financial statements in accordance with Generally Accepted Government Auditing Standards (GAGAS) and GASB requirements. Chavan & Associates, LLP, issued an unmodified opinion of the City’s financial statements for the fiscal year ending June 30, 2022. An unmodified opinion indicates that the financial data is fairly presented in accordance with Generally Accepted Accounting Principles, and that the information in the reports is materially correct and reported in accordance with the Governmental Accounting Standards Board.
STRATEGIC PLAN CONSIDERATIONS
In accordance with GASB requirements and adherence to City Comprehensive Financial Policy, Section 5.1.1 the ACFR for the fiscal year ending June 30, 2022 is submitted to the City Council to present financial statements reflecting the City's financial position.
Agenda Packet Page 9 of 401
Agenda Item No. 6.C.
ENVIRONMENTAL CONSIDERATIONS
This section is not applicable to this agenda item.
FINANCIAL CONSIDERATIONS
This report is in accordance with GASB requirements and complies with the City Comprehensive Financial Policy. The independent auditor, Chavan & Associates LLP, performed the audit of the City's financial statements for the fiscal year ending June 30, 2022. The auditors issued an unmodified opinion of the City's financial statements indicating that the financial statements are fairly presented in accordance with GAAP and the information in the reports is materially correct and reported in accordance with GASB requirements.
LEGAL CONSIDERATIONS
The ACFR for the fiscal year ending June 30, 2022 complies with GASB requirements and the City Comprehensive Financial Policy.
Reviewed by:
Alexandra Orologas, Assistant City Manager
Attachments:
1. 2021-22 City of El Cerrito ACFR_C&ALLP
Agenda Packet Page 10 of 401
Annual Comprehensive Financial Report
as of Fiscal Year Ended June 30, 2022
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El Cerrito, California
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2022
City Council
Gabe Quinto . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mayor Lisa Motoyama . . . . . . . . . . . . . . . . . . Mayor Pro Tem Janet Abelson . . . . . . . . . . . . . . . . . . . Council Member Paul Fadelli . . . . . . . . . . . . . . . . . . . . Council Member Tessa Rudnick . . . . . . . . . . . . . . . . . . Council Member Presented by:
Karen Pinkos, City Manager
Sandra Dalida, Finance Director/City Treasurer
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INTRODUCTORY SECTION
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CITY OF EL CERRITO
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2022
TABLE OF CONTENTS
INTRODUCTORY SECTION
Transmittal Letter ..................................................................................................................... 1 List of Elected and Appointed Officials ........................................................................................ 8 Organizational Chart................................................................................................................. 9
FINANCIAL SECTION
Independent Auditor’s Report ................................................................................................. 11 Management’s Discussion and Analysis (Required Supplementary Information) ...................... 17 Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position............................................................................................. 33 Statement of Activities................................................................................................. 34 Fund Financial Statements
Governmental Funds:
Balance Sheet ......................................................................................................... 36 Reconciliation of the Government Funds Balance Sheet
to the Government-Wide Financial Statement of Net Position............................. 37 Statement of Revenues, Expenditures and Changes in Fund Balances ...................... 38 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities ...................................................................................... 39 Proprietary Funds:
Statement of Net Position ....................................................................................... 42 Statement of Revenues, Expenses, and Changes in Fund Net Position ...................... 43 Statement of Cash Flows......................................................................................... 44 Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Position ........................................................................ 46 Statement of Changes in Fiduciary Net Position ...................................................... 47 Notes to the Basic Financial Statements .................................................................................. 50
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (GAAP Basis):
General Fund ............................................................................................................... 87 Low/Mod Income Housing Asset Special Revenue Fund.................................................. 88 Federal, State and Local Grants Fund .............................................................................. 89 Schedule of Pension Contributions.......................................................................................... 90 Schedule of Proportionate Share of Net Pension Liability ........................................................ 91 Agenda Packet Page 17 of 401
CITY OF EL CERRITO
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2022
TABLE OF CONTENTS
SUPPLEMENTARY INFORMATION
Nonmajor Governmental Funds:
Combining Balance Sheet .................................................................................................. 97 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ............. 101 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (GAAP Basis):
Gas Tax Fund.............................................................................................................................. 105 National Pollution Discharge Elimination System Fund............................................................ 106 Landscape and Lighting Assessment Fund ................................................................................ 107 Measure A Parcel Tax Fund ....................................................................................................... 108 Measure H Parcel Tax Parks and Recreation Facilities Fund..................................................... 109 Asset Seizure Fund ..................................................................................................................... 110 Vehicle Abatement Fund............................................................................................................ 111 Park In Lieu Fund....................................................................................................................... 112 SB1 - Road Repair and Accountability Fund ............................................................................. 113 Public Art Fund .......................................................................................................................... 114 Measure J Paratransit Fund......................................................................................................... 115 Municipal Services Corporation Special Revenue Fund............................................................ 116 City Housing Fund...................................................................................................................... 117 Public Financing Authority Fund ............................................................................................... 118 Measure J Fund........................................................................................................................... 119 Storm Drain Fund ....................................................................................................................... 120 Street Improvement Fund ........................................................................................................... 121 Capital Improvement Fund......................................................................................................... 122
STATISTICAL SECTION
City Geographic Information................................................................................................. 127 Climate................................................................................................................................. 128 Population Demographics - Economic and Education............................................................................... 129 Principal Employers................................................................................................................................... 130 Population Demographics - Age and Ethnicity........................................................................................... 131 Population Demographics – Housing.......................................................................................................... 132 Population Demographics – Households................................................................................ 133 Operating Indicators by Function/Program................................................................................................ 134 Community Facilities............................................................................................................ 135 Capital Asset Statistics by Function/Program ........................................................................ 136 Ratios of Outstanding Debt by Type.......................................................................................................... 137 Financial Statistics - Revenue History Taxable Property ........................................................ 138 Principal Property Taxpayers..................................................................................................................... 139 Assessed and Estimated Value of Taxable Property.................................................................................. 140 Direct and Overlapping Property Tax Rates.............................................................................................. 141 Statement of Direct and Overlapping Debt................................................................................................ 142 Statement of Direct and Overlapping Debt June 30, 2013......................................................................... 143 Net Position by Component................................................................................................... 144 Agenda Packet Page 18 of 401
CITY OF EL CERRITO
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2022
TABLE OF CONTENTS
Fund Balances of Governmental Funds.................................................................................. 146 Financial Statistics - Taxable Sales by Category.................................................................... 148 Financial Statistics - Taxable Sales ....................................................................................... 149 Agenda Packet Page 19 of 401
TRANSMITTAL LETTER
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March 21, 2023
Honorable Mayor, Council Members and Residents of El Cerrito:
We are pleased to present the Annual Comprehensive Financial Report (ACFR) of the City of El Cerrito for the fiscal year ended June 30, 2022. This report has been prepared in accordance with generally accepted accounting principles (GAAP) as set forth in the pronouncements of the Governmental Accounting Standards Board (GASB). We are also pleased to report that the City has received an unmodified opinion from the independent auditor, indicating the financial statements are presented, in all material respects, in accordance with the applicable financial reporting framework.
The City's financial policies require an external independent audit be performed annually, and that the auditor's opinions be included in the ACFR. Further, it states that the results be submitted to City Council.
Responsibility for the accuracy of the data and the fairness of presentation, including all footnotes and disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data are accurate in all material respects and are reported in a manner designed to present fairly the financial position and results of operations of the various funds of the City. All material statements and disclosures necessary for the reader to obtain a thorough understanding of the City's financial activities have been included.
City management is responsible for establishing and maintaining fiscal internal controls designed to safeguard the assets of the government from loss, theft, or misuse, and to ensure that accounting data is accurately compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that the cost of controls should not exceed the benefits likely to be derived, and the valuation of costs and benefits require estimates and judgments by management.
The City's financial statements have been audited by Chavan & Associates, LLC. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Based on the audit, the independent auditor concluded that there was a reasonable basis for rendering an unmodified opinion and that the City of El Cerrito's financial statements for the fiscal year ended June 30, 2022, are fairly presented in conformity with GAAP.
The independent auditor's report is presented as the Financial Section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of the Management Discussion and Analysis. This Letter of Transmittal is designed to complement the Management Discussion and Analysis (MD&A) and should be read in conjunction.
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The ACFR is organized into three sections:
1. The Introductory Section is intended to familiarize the reader with the organizational structure of the City, the nature and scope of the services it provides, and the specifics of its legal operating environment.
2. The Financial Section includes the independent auditor’s report on the basic financial statements, MD&A, audited basic financial statements, note disclosures and supporting statements, and schedules necessary to provide readers with a comprehensive understanding of the county’s financial activities of the past fiscal year.
3. The Statistical Section provides the reader with additional historic perspective, context, and detail to assist in using the information in the financial statements. It provides information in five categories: financial trends; revenue capacity; debt capacity; demographic and economic information; and operating indicators.
CITY PROFILE
The City of El Cerrito, incorporated in 1917 under the general laws of the State of California, is located in Contra Costa County in the San Francisco Bay Area. The City encompasses approximately 3.7 square miles and the current population1is 25,845. The City has a variety of green spaces for public enjoyment including 32 acres of developed park grounds, over 100 acres of open space in the hillside natural area, a 2.7 mile multi-use trail known as the Ohlone Greenway, school recreation facilities, the privatelyowned Berkeley County Club (127 acres) and Boy Scouts of America’s Camp Herms (18 acres). A portion of the Sunset View Cemetery and the City’s eastern boundary are contiguous with the East Bay Regional Park District’s Wildcat Canyon Regional Park (about 2,600 acres).
REPORTING ENTITY
The City operates under the Council-Manager form of government. The City Council is comprised of five members elected at-large and serve four-year terms. The terms are staggered in alternating even years. There are no term limits. Annually, the City Council votes to appoint a Mayor and a Mayor Pro Tem from among its members.2
City Council determines the policies of the city government and appoints the City Manager and City Attorney and has general responsibility for effective administrative actions through the City Manager.
The Council is responsible for, among other things, passing ordinances, adopting the budget, appointing advisory boards, committees, and commissions. Also, the City Council members serve as the separate Board of Directors for City of El Cerrito Employees’ Pension Plan, the Municipal Services Corporation, and the El Cerrito Public Financing Authority. The City serves as the reporting body for these entities and is financially accountable, as City staff have operational responsibility for the activities of each entity. These entities are included in the City’s financial statements as part of the reporting entity.
In addition, City Council appoints residents to serve on City Boards, Commissions, and Committees (advisory bodies). Boards and Commissions are directly responsible to the City Council and fill advisory 1 State of California, Department of Finance, E-1 Population Estimates for Cities. Sacramento, California, May 2022. 2 City of El Cerrito Candidate Instructional Guide: Running for Elective Office, November 2022.
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and/or quasi-judicial roles. Commissions are composed of lay residents while members for Boards are selected for their special expertise. Committees sponsored by the City are intended to be working groups and do not fill quasi-judicial roles. The advisory bodies include:
Arts & Culture Commission Environmental Quality Committee Citizens Street Oversight Committee Financial Advisory Board Civil Service Commission Human Relations Commission
Committee on Aging Park & Recreation Commission
Crime Prevention Committee Planning Commission
Design Review Board Urban Forest Committee
Economic Development Committee
CITY SERVICES
The City is a full-service municipality and provides a full range of services, including police and fire protection, building permits and inspections, parks and recreation facilities and services, planning and environmental services, construction and maintenance of streets, public building, and infrastructure, and operation of a state-of-the art Recycling Center.
ECONOMIC CONDITIONS AND OUTLOOK
The information presented in the financial statements is best understood when it is considered from the broader perspective of the specific environment within which the City operates.
In FY 2022, City management continued its focus on fiscal sustainability and rebuilding program services and activities impacted by the COVID-19 pandemic and the State’s declaration of a state of emergency on March 5, 2020, that remained in effect during FY 2022 (scheduled end on February 28, 2023).
Local Economy
Although many industries experienced
economic declines during the “remain-athome” periods of the COVID-19 pandemic, the San Francisco Bay Area did not
experience the same level of economic
slowdown which occurred in other areas of
the State.
In FY 2022, the San Francisco Bay Area led
the country in economic growth, with a 4.8%
increase in GDP, according to the economic
reports by: Kenan Institute of Private
Enterprise, affiliated with the University of
North Carolina at Chapel Hill and the Annual Economic Forecast, Bank of America.
Despite the COVID-19 pandemic and state of emergency throughout FY 2022, El Cerrito’s diversified and resilient revenue base remained strong and exceeded the prior fiscal year’s results.
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However, remaining mindful of the forecasted California economic trends including signs of labor market weakness developing in 2023, job growth downshifts below the U.S. average to 1.8% annualized in November 2022, and the slight increase in the State’s unemployment rate for the past two consecutive months. Additionally, housing market dips in California’s existing home sales with the biggest year-onyear drop in California home sales in the past four decades, declines in housing starts and the resulting flattening of home prices as mortgage rates rise, and other cost factors contributing to workers migrating out of the State and the resulting slowing of population growth.3 Despite these possible economic impacts, San Francisco Bay Area and El Cerrito are somewhat better positioned to withstand economic down trends due to its diversified revenue sources and the City’s continued prudent fiscal management strategies and increased General Fund Reserves.
EXECUTIVE FINANCIAL OVERVIEW
This top-level overview is presented as a supplement to the more detailed and comprehensive analysis presented in the MD&A. As such, it serves to highlight key financial performance indicators for our major funds. Please review the MD&A for further analysis of the City's financial condition.
General Fund
The General Fund is the primary operating fund of the City of El Cerrito. The City’s General Fund revenues are diversified and resilient with strong performance in tax revenues, licenses and permits, and charges for services. The General Fund balance increased by approximately $9.5 million from the prior year. The total General Fund balance is $16.6 million and represents approximately 41% of total General Fund expenditures.
3 California Economic Outlook Report, December 2022, Scott Anderson, Chief Economist, Bank of the West FY 2020-21
AUDITED
YEAR END VARIANCE % OF BUDGET TOTAL
Property and Other Taxes $ 26,031,617.00 $ 29,117,344.81 $ (2,285,727.81) 109% 28,623,366.40 Licenses & Permits $ 636,112.00 $ 1,440,973.02 $ (304,861.02) 127% 656,880.55 Fines & Forfeitures $ 140,000.00 $ 152,343.27 $ (12,343.27) 109% 177,524.54 Use of Money and Property $ 353,968.00 $ 432,308.94 $ (78,340.94) 122% 333,800.55 Intergovernmental Revenues 7,312,900.00 $ $ 8,007,682.85 $ (198,782.85) 103% 8,164,611.70 Charges for Services $ 4,800,000.00 $ 6,427,398.28 $ (944,398.28) 117% 4,181,217.93 Other Revenue $ 175,000.00 $ 497,709.82 $ (322,709.82) 284% 238,711.83 Other Financing Sources $ 952,650.00 $ 4,203,600.69 $ (3,250,950.69) 441% 3,989,600.00 TOTAL $ 40,402,247.00 $ 50,279,361.68 $ (7,398,114.68) 117% 46,365,713.50 FY 2021-22
UNAUDITED
ADOPTED BUDGET
FUND 101 - GENERAL FUND
REVENUE CATEGORY
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MAJOR INITIATIVES AND ACCOMPLISHMENTS
• Sustained Citywide service delivery during the continuing COVID-19 pandemic despite significant expenditure and staff reductions.
• Continued implementation of the Fiscal Response Plan including controlling and reducing expenditures and ensuring achievable revenue projections aligned with the City Comprehensive Financial Policy for a general fund annual operating reserve of 10% in each fiscal year. • Secured $26 million Affordable Housing Sustainable Communities (AHSC) grant for development of Mayfair Affordable.
• Advanced production of housing and new business openings through issuing certificates of occupancy for: El Dorado Townhomes (29) units, Credence (32) units), Mayfair (156 units), Foot Locker/Kids Foot Locker and Harbor Freight and Tools. • The City’s Insurance Service Office (ISO) rating increased to Class 1, the highest rating possible, placing the El Cerrito/Kensington Fire Department in the top 1% rating of fire departments nationwide.
• Completed Capital Improvement Projects including 2021 Slurry Seal, 2021 Sidewalk Repairs, San Pablo Avenue & Wall Avenue Crosswalk Safety Improvements, Central Avenue and San Diego Street Pedestrian Crossing Improvements, Gladys-El Dorado-B Street Improvements and San Pablo Avenue Stormwater Spine Project.
• Recreation Department, as COVID-19 restrictions were reduced, quickly transitioned to prepandemic activities and services. Participation in programs increased including after-school childcare and enrichment programs, in-person group activities for all ages, drop-in aquatics programs, and senior fitness programs and support services. The Easy Ride paratransit program was relocated to the Community Center.
FINANCIAL INFORMATION
Budgeting Controls
The City of El Cerrito operates on an annual budget schedule and maintains budgetary controls to ensure compliance with legal provision embodied in the annual appropriated budget approved by the City Council. Activities of the General Fund, Special Revenue Funds, Capital Projects Funds, Debt Service Funds, and Propriety Funds are included in the annual appropriated budget. The level of budgetary control (level at which expenditures cannot legally exceed the appropriate amount) is at the fund level.
City Departments use the goals outlined in the Strategic Plan, as well as feedback gained from the community, to inform the development of their departmental budgets for the next fiscal year. In order to best determine the resources to allocate to the goals and strategies in the Strategic Plan, the departments review information to align programs and services to the Strategic Plan goals.
Each department evaluated their programs and services and analyzed related data to determine a baseline amount of resources to allocate to expenses that meet the goals of the Strategic Plan. The departments considered several data sets, including personnel necessary to provide the program or service, additional costs (i.e., consultants, contractors, supplies and equipment and other purchased services), and whether the program or service is required by law or City policy. Departments were realistic about the objectives that could be achieved in the fiscal year and set priorities to allocate resources accordingly.
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The Finance Department, in coordination with the applicable operating departments, provides the City Manager with proposed revenue projections. These revenue estimates are reviewed with the department budget requests to determine available funding levels for the fiscal year. Supplemental budget requests (new personnel, services, or equipment) are subject to City Manager review and approval for including the proposed operating budget. This process applies to all governmental and enterprise funds. The City Manager and Finance Director meet with the departments to review all operating expenditures and budget change requests. After final review and approval by the City Manager, the proposed budget document is presented to the City Council in May. The budget is adopted by resolution prior to June 30.
Only the City Council has the authority to create or modify total appropriations of any fund subject to only the appropriations limits established by State law. The City Council approves various supplemental appropriations during the year as necessary to meet the City’s needs. The statements and schedules included in the financial section of this report indicate that the City continued to meet its responsibility for sound financial management.
Accounting System
The City’s accounting and budgeting records for general government operations are recorded on a modified accrual basis, with revenues being recognized when available and measurable, and expenditures being recorded when the service or goods are received, or liabilities are incurred.
Accounting and budgeting for the City’s proprietary funds are maintained on an accrual basis.
Non-exchange transactions in which the City gives or receives value without directly receiving or giving equal value in exchange include taxes, grants, entitlements, and donations. On an accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenue from grants, entitlements, and donations are recognized in the fiscal year in which all eligibility requirements have been met.
The City maintains an internal control designed to provide reasonable assurance that the City’s assets are protected from loss, theft, or misuse. Also, internal controls ensure adequate accounting data is compiled to allow for the preparation of financial statements in conformity with GAAP. The internal control structure is designed to provide reasonable, but not absolute assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management.
Financial Policies
In September 2022, City Council approved amendments to the City Comprehensive Financial Policy, dated May 21, 2019. The financial policies are designed to promote sound financial management and ensure that the City's fiscal integrity remains intact as staff and Council Members change. The City Comprehensive Financial Policy is reviewed by the Financial Advisory Board and recommended amendments are advanced through the City Manager and Finance Director to City Council for adoption.
Additionally, the City Comprehensive Financial Policy, in accordance with GASB pronouncements, includes a General Fund Reserve policy, Emergency and Disaster Recovery Fund policy, Long-Term Financial Planning and Budget policies, Debt policies and other operational policies to serve as guidelines for operational and strategic decision making related to financial matters.
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OTHER INFORMATION
Independent Audit
The City of El Cerrito selects an independent certified public accounting firm to perform a required annual audit of the City’s financial records and transactions. The annual audit is required through covenants related to the City’s bonded indebtedness. The City has contract with Chavan & Associates, LLC-, an independent auditor, to perform the audit and prepare the financial section of this report.
Acknowledgments
The preparation of this Annual Comprehensive Financial Report was through the efforts and teamwork of the dedicated Finance staff Special thanks and acknowledgement to temporary and regular staff who have contributed significantly to completing the ACFR including Maggie Huang, Amanda Breese, Yoko Nunokawa, and Alan Chiu. Appreciation and acknowledgement are also extended to City Department representatives for their support and collaboration throughout the duration of the audit. In addition, we extend a special thank you to Chavan & Associates, LLP for their professionalism and diligence in assisting in the preparation of this financial report.
Sandra Dalida, Finance Director
& City Treasurer
Karen Pinkos, City Manager
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CITY OF EL CERRITO
ELECTED OFFICIALS
AND
ADMINISTRATIVE PERSONNEL
as of June 30, 2022
ELECTED OFFICIALS - CITY COUNCIL
Mayor Gabe Qunito
Mayor Pro Tem Lisa Motoyama
Council Member Janet Abelson
Council Member Paul Fadelli
Council Member Tessa Rudnick
ADMINISTRATIVE PERSONNAL - CITY STAFF
City Manager Karen Pinkos
Assistant City Manager Alexandra Orologas
Chief of Police Paul Keith
Fire Chief Eric Saylors
Community Development Director Melanie Mintz
Finance Director/City Treasurer Sandra Dalida
Public Works Director/City Engineer Yvetteh Ortiz
Recreation Director Chris Jones
City Clerk Holly Charlety
CITY ATTORNEY
Sky Woodruff
INDEPENDENT AUDITORS
Chavan & Associates, LLP Certified Public Accountants
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City of El Cerrito
Organizational Chart
Boards and Commissions Arts & Culture Commission
Citizens Street Oversight Committee Civil Service Commission Committee on Aging Crime Prevention Committee Design Review Board Economic Development Committee
Environmental Quality Committee
Financial Advisory Board Human Relations Commission Park & Recreation Commission Planning Commission Urban Forest Committee
City Attorney
Sky Woodruff
Meyers Nave
Residents
2021 estimated population: 25,845
City Council
(as of 6/30/22)
Gabe Quinto, Mayor
Lisa Motoyama, Mayor Pro Tem
Janet Abelson, Council Member
Paul Fadelli, Council Member
Tessa Rudnick, Council Member
City Manager
Karen Pinkos
City
Management
Community
Development Finance Fire Department
Police
Department Public Works Recreation
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FINANCIAL SECTION
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15105 Concord Circle, Ste. 130, Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
of the City of El Cerrito
El Cerrito, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of El Cerrito (the “City"), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise 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, business-type activities, each major fund, and the aggregate remaining fund information of the City of El Cerrito, as of June 30, 2022, 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.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) 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 Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, 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.
Emphasis of a Matter
During the year, the City implemented GASB Statement No. 87, Leases. As a result, the City recorded right of use assets of $257,451, net of accumulated amortization, and lease liability of $225,680, increasing beginning fund balance and net position by $31,771. See note 1 for additional information. Also, the City changed its OPEB plan benefit terms which resulted in an increase to beginning net position of $3,699,945.
See note 12 for additional information. Our opinion was not modified for these matters.
Responsibilities of Management for the Financial Statements City management is responsible for the preparation and fair presentation of the financial statements 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.
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15105 Concord Circle, Ste. 130, Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
Auditor’s Responsibilities for 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 auditor’s 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 GAAS 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 influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and GAGAS, 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 financial 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 expressing 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 financial 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.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and other required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, 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 limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
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15105 Concord Circle, Ste. 130, Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s financial statements as a whole. The introductory section, combining individual nonmajor fund statements, supplementary budgetary comparison schedules, and statistical data, are presented for purposes of additional analysis and are not a required part of the financial statements.
The combining and individual nonmajor fund financial statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such 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, combining and individual nonmajor fund financial statements and comparative schedules for enterprise funds are fairly stated in all material respects in relation to the basic financial statements as a whole.
The introductory, supplemental budgetary and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 14, 2023 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 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 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.
Chavan & Associates, LLP
Certified Public Accountants
March 14, 2023
Morgan Hill, California
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MANAGEMENT’S DISCUSSION
AND ANALYSIS
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City of El Cerrito Management’s Discussion and Analysis
INTRODUCTION
As management of the City of El Cerrito, we offer readers of the City’s financial statements this narrative overview and analysis of financial activities of the City of El Cerrito, for the fiscal year that ended on June 30, 2022. We encourage readers to consider the information presented here, in conjunction with additional information in our letter of transmittal. This information can be found on page 1 of this report.
The required components of the report are listed below.
Required Components of the Annual Financial Report
FISCAL YEAR 2021/22 FINANCIAL HIGHLIGHTS
Government-Wide Highlights
The assets and deferred outflows of resources for the City of El Cerrito exceeded the liabilities at the close of the most recent fiscal year by $19.47 million (net position). Of the net position, $54.74 million was classified as net investment in capital assets; $16.03 million recorded as restricted funds; and $51.3 million categorized as a deficit unrestricted net position (negative net position). The negative unrestricted net position is largely due to GASB 68 – Accounting and Financial Reporting for Pensions.
This pronouncement requires local governments to record pension liabilities and related deferrals in the government-wide financial statements.
The City’s net position increased by $2.68 million. This included a 1.56 million increase in the net position of Governmental Activities and a $1.12 million increase in the net position of Business-Type Activities.
City revenues increased by $3.53 million, or 6%, when compared to the prior year. The Fiscal Year 21/22 amounts included $1.28 million in grants for a capital projects and $4.8 million in operating grants.
Management’s
Discussion & Analysis
Government-Wide
Financial Statements
Fund
Financial Statements
Notes to the
Financial Statements
Basic
Financial Statements
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City of El Cerrito Management’s Discussion and Analysis Deferred outflows of resources decreased by $442,359, while deferred inflows of resources increased by $33.77 million. This was primarily related to pension liability adjustments identified in the City’s actuarial report, which include differences between expected and actual earnings; expected and actual experiences; and changes in proportional allocations. The City’s pension liability in accordance with GASB 68 as of June 30, 2022 was $48.95 million as compared to $70.37 million in the prior year, while the total OPEB liability for the fiscal year ending June 30, 2022 was zero million compared to $4.89 million in the prior year. The City changed the terms of its OPEB plan as of January 2, 2021, which removed the implied subsidy previously included in the plan and thus removing the City’s obligation. Beginning net position was increase by $3.7 million to account for the changes in the OPEB plan.
The City’s long-term debt increased by $503,077 as a result of new lease obligations and financed purchases, net of debt service payments made during the year. The City’s net capital assets decreased by $1.33 million, primarily from a $2.4 million increase to construction in progress net of an increase to accumulated depreciation and amortization of $4.37 million.
Fund Highlights
At the close of Fiscal Year 21/22 the City of El Cerrito’s Governmental Funds reported a combined fund balance of $31.5 million, which is an increase of $9.6 from prior year. Approximately 52%, or $16.3, million was classified as unassigned fund balance and was available for spending at the government’s discretion.
At the end of the current fiscal year, the General Fund’s unrestricted fund balance (the total of the committed, assigned, and unassigned components of fund balance) was $16.4 million, or 41% of total general fund expenditures, prior to transfers.
The fund balance in the General Fund increased by $7.14 million at the close of the fiscal year. This included an excess of operating revenues over expenditures of $6.8 million, plus $2.67 million in net transfers.
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City of El Cerrito Management’s Discussion and Analysis
OVERVIEW OF THE FINANCIAL STATEMENTS
The discussion and analysis are intended to serve as an introduction to the City of El Cerrito’s financial statements. The City of El Cerrito’s basic financial statements are comprised of (1) Government-Wide Financial Statements (2) Fund Financial Statements, and (3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.
Government-Wide Financial Statements
The Government-Wide Financial Statements are designed to provide readers with a broad overview of the City of El Cerrito’s finances, in a manner similar to a private-sector business. Government-Wide financial statements are prepared on the accrual basis, which means they measure the flow of all economic resources of the City as a whole. Government-Wide Financial Statements consist of the Statement of Net Position and the Statement of Activities.
The Statement of Net Position presents financial information on all of the City of El Cerrito’s assets, liabilities, and deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of El Cerrito is improving or declining.
The Statement of Activities presents information showing how the City of El Cerrito’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. This is consistent with a full accrual concept, which may result in the reporting of revenues and expenses in the current fiscal year, with cash flows occurring in future fiscal periods (e.g. uncollected revenues; and earned but not used vacation leave).
Both of the Government-Wide Financial Statements distinguish functions of the City of El Cerrito that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). An overview of the City’s functions associated with each classification is listed below.
Governmental Activities – All of the City's basic services are considered to be governmental activities. This includes general government, public works, recreation, community development, and public safety. These services are supported by general City revenues such as taxes, and by specific program revenues such as development and recreation program fees.
Business-Type Activities – This City’s enterprise activities include integrated waste management. Unlike governmental activities, these services are fully supported by charges paid by users based on the amount of services they use.
The Government-Wide Financial Statements can be found on page 33 of this report.
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City of El Cerrito Management’s Discussion and Analysis Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
Fund financial statements provide detailed information about each of the City's most significant funds, called major funds. Major funds are presented individually, with all non-major funds summarized and presented only in a single column. Subordinate schedules present the detail of these non-major funds. Major funds present the major activities of the City for the fiscal year, and may change from year to year as a result of changes in the pattern of the City's activities. The City's funds are segregated into three categories:
Governmental Funds, Proprietary Funds, and Fiduciary Funds.
Governmental Funds
Governmental funds are used to account for essentially the same function reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental funds focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. This represents a modified accrual basis of accounting, with capital assets, long-lived assets, and long-term liabilities excluded from the financial statements. Such information may be useful in evaluating the City's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for the governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate the comparison between governmental funds and governmental activities.
Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund and other major funds. Data from the other governmental funds are combined into a single aggregated presentation.
Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements in the combining and individual fund statements and schedules section of this report.
The City of El Cerrito adopts an annual budget for its General Fund. A budgetary comparison statement has been provided for the General Fund to demonstrate compliance with this budget. The basic governmental fund financial statements can be found on page 36 of this report.
Proprietary Funds
The City of El Cerrito has the following four Enterprise Funds which are proprietary funds: Integrated waste management. Enterprise funds provide the same type of information as business-type activities in the government-wide statements. Internal service funds are an accounting mechanism used to accumulate and allocate costs internally among the City of El Cerrito’s various functions. The City uses one internal service fund to account for the management of its vehicle and equipment replacement.
Because these internal services predominately benefit governmental rather than business-type functions, they have been included within governmental activities in the Government-Wide Financial Statements.
Proprietary funds provide the same type of information as the Government-Wide Financial Statements,
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City of El Cerrito Management’s Discussion and Analysis only in more detail. The proprietary fund financial statements provide separate information for the waste management operations, which is considered major fund for the City of El Cerrito. The basic proprietary fund financial statements can be found on page 42 of this report.
Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Fiduciary funds are not reported in the Government-Wide Financial Statements because the resources of these funds are not available to support the City of El Cerrito’s own programs. The accounting for fiduciary funds is much like that used for business-type activities. The City had two fiduciary funds during Fiscal Year, the pension trust fund and the El Cerrito Redevelopment Agency Successor Agency Private-Purpose Trust Fund.
NOTES TO THE FINANCIAL STATEMENTS
Notes to the Financial Statements provide additional information that is essential to a full understanding of the data provided in the Government-Wide and Fund Financial Statements. The notes can be found immediately following the Fund Financial Statements.
OTHER INFORMATION
In addition to the basic financial statements and accompanying notes, this report also presents required supplementary information concerning the City of El Cerrito’s funding progress for its employee pension obligations. The required supplementary information can be found on page 87 of this report.
The combining statements referred to earlier in connection with nonmajor governmental funds are presented immediately following the required supplementary information. Combining and individual fund statements and schedules can be found on page 97 of this report.
A statistical section provides historical and current data on financial trends, revenue and debt capacity, demographic and economic information, and operating information. This information can be found on page 127 of this document.
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City of El Cerrito Management’s Discussion and Analysis
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Over time, net position may serve as an indicator of a government’s financial position. In the case of the City of El Cerrito, assets and deferred outflows of resources exceeded liabilities by $19.47 million at the close of Fiscal Year 21/22. This represents an increase of $2.67 million over the prior year.
The following table summarizes the City’s ending net position:
A significant portion, or $53.38 million, of the City's net position reflects its investment in capital assets, (e.g., land, buildings, general government infrastructure, equipment, etc.), less accumulated depreciation/amortization and any outstanding debt that was used to acquire or construct those assets.
Capital assets represent infrastructure which provide services to citizens and are not available for future spending. Although the City‘s investment in capital assets is reported net of related debt, it should be noted that the resources to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate the liabilities.
The $16.03 million amount classified as Restricted Net Position represents resources that are subject to external restrictions on how they may be used. These funds are restricted for governmental activities.
The remaining deficit balance of $51.3 million is classified as unrestricted. This negative unrestricted balance is largely due to GASB 68 – Accounting and Financial Reporting for Pensions. The City participates in the CalPERS Miscellaneous and Safety pension plans. This pronouncement requires that local governments report a proportional share of their pension plan’s net pension liabilities on financial statements. In Fiscal Year 21/22, the City’s proportionate share of the CalPERS pension liability was $48.95 million.
At the end of the current fiscal year, the City of El Cerrito is able to report a positive balance for the government as a whole.
Governmental and Business-Type Activities
As shown in the Statement of Changes in Net Position schedule, the net position for Governmental Activities increased by $1.56 million in the prior year mostly because of increases to charges for services and the adjustment to beginning net position to remove OPEB of $3.7 million. 2022 2021 2022 2021 2022 2021
Assets
Current and other assets $ 45,670,957 $ 35,330,639 $ 2,757,615 $ 1,264,886 $ 48,428,572 $ 36,595,525 Capital assets 68,350,671 69,550,312 3,132,279 3,259,269 71,482,950 72,809,581 Total Assets $ 114,021,628 $ 104,880,951 $ 5,889,894 $ 4,524,155 $ 119,911,522 $ 109,405,106 Deferred Outflows of Resources $ 16,320,158 $ 16,717,937 $ - $ 44,580 $ 16,320,158 $ 16,762,517 Liabilities
Current and other liabilities $ 14,668,684 $ 15,021,659 $ 658,774 $ 511,194 $ 15,327,458 $ 15,532,853 Noncurrent liabilities 65,275,917 91,512,513 1,352,841 1,298,198 66,628,758 92,810,711 Total Liabilities $ 79,944,601 $ 106,534,172 $ 2,011,615 $ 1,809,392 $ 81,956,216 $ 108,343,564 Deferred Inflows of Resources $ 34,808,663 $ 1,034,151 $ - $ 34,808,663 - $ $ 1,034,151 Net Position
Net investment in capital assets $ 53,377,263 $ 53,652,456 $ 1,363,893 $ 1,679,420 $ 54,741,156 $ 55,331,876 Restricted 16,029,304 15,859,381 - 16,029,304 - 15,859,381 Unrestricted (53,818,045) (55,481,272) 2,514,386 1,079,923 (51,303,659) (54,401,349) Total Net Position $ 15,588,522 $ 14,030,565 $ 3,878,279 $ 2,759,343 $ 19,466,801 $ 16,789,908 Table 1 - Net Position
Governmental Activities Business-Type Activities Total
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City of El Cerrito Management’s Discussion and Analysis The net position for business-type activities increased by $1.12 million largely due to increases in charges for services and operating grants, while operating expenses continue be well below revenues. An analysis of the changes in revenues and expenses by type of significant events follows:
Governmental Activities
Governmental Revenues
The following chart summarizes the changes in revenues by category during Fiscal Year 21/22:
Increase Increase
Functions/Programs 2022 2021 (Decrease) 2022 2021 (Decrease) Program Revenues
Charges for services $ 12,262,938 $ 9,092,798 $ 3,170,140 $ 3,877,922 $ 3,779,477 $ 98,445 Operating grants and contributions 4,797,917 5,632,909 (834,992) 60,016 16,784 43,232 Capital grants and contributions 1,280,680 3,317,784 (2,037,104) - - - Total Program Revenues 18,341,535 18,043,491 298,044 3,937,938 3,796,261 141,677 General Revenues
Taxes 37,538,267 35,414,218 2,124,049 - - -
Investment earnings - - - - - -
Other revenues 1,146,385 176,593 969,792 309 - 309
Total General Revenues 38,684,652 35,590,811 3,093,841 309 - 309 Expenses
General government 7,884,210 5,811,523 2,072,687 - - -
Public works 9,260,749 7,677,819 1,582,930 - - -
Recreation 6,089,667 4,691,509 1,398,158 - - -
Community development 4,262,818 3,452,703 810,115 - - - Public safety 30,989,792 26,208,413 4,781,379 - - -
Interest on long-term debt 716,380 879,070 (162,690) - - - Intergrated waste management - - - 2,815,640 2,662,806 152,834 Total Expenses 59,203,616 48,721,037 10,482,579 2,815,640 2,662,806 152,834 Special items (1,321,189) - 1,321,189 - - -
Transfers 3,671 3,671 - (3,671) (3,671) -
Increase / (Decrease) in Net Position (2,173,758) 3,595,747 (5,769,505) 1,118,936 1,129,784 (10,848) Prior Period Adjustments 3,731,715 3,731,715 - - - -
Net Position, Beginning of Year 14,030,565 10,434,818 3,595,747 2,759,343 1,629,559 1,129,784 Net Position, End of Year $ 15,588,522 $ 14,030,565 $ 1,557,957 $ 3,878,279 $ 2,759,343 $ 1,118,936 Table 2 - Statement of Changes in Net Position
Governmental Activities Business-Type Activities
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City of El Cerrito Management’s Discussion and Analysis Significant changes in governmental revenues consisted of the following:
Taxes increased by $2.12, with the substantial net changes in the following categories:
o Property taxes increased by $867,494 or 5.5%, which reflects the continuing strength in property values.
o Business license taxes increased by $116,260 or 12.6%. o Real property county transfer taxes increased by $443,928 or 10%. o Other taxes and assessments increased by $330,764 or 132%. Other revenues increased by $969,792 mostly from local reimbursements and local donations that did not meet the definition of a charges for services, operating grants or capital grants. Charges for services increased by $3.17 million mostly from increased program activities for recreation, community development and public safety as the pandemic winds down.
Governmental Expenses
The Fiscal Year 21/22 expenses for Governmental Activities increased by $10.48 million as illustrated in the chart below:
Significant changes in governmental expenses consisted of the following:
The largest contributed factor to the increase on governmental activities expenses as an adjustment to pension expense as required by GASB 68 of $11.5 million resulting in a total pension expense of $19.79 million. The investment returns in excess of estimated realized during the plan measurement period will be recognized over the next five years which attributed to the increase in the pension plan expense since.
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City of El Cerrito Management’s Discussion and Analysis Interest expense decreased by $162,690 due to obligations generally requiring less interest as debt matures.
Business-Type Activities
The City’s net position for business type activities increased by $1.12 million which includes the integrated waste management enterprise fund. This increase included the Sewer, Cemetery, Local Water Project and Golf Course Funds. The $1.12 million increase is mostly from increases in charges for services and operating grants.
The following chart is a summary of the changes in revenues and expenses for the City’s business-type activities from Fiscal Year 20/21 to 21/22:
Charges for services included fees of $3.75 million and recycling sales of $128,685. Expenses included personnel services, services, supplies and depreciation totaling $2.76 million. Personnel costs increased by $92,593 and supplies increased by $86,983 due to increased operating activities over the prior year.
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City of El Cerrito Management’s Discussion and Analysis FINANCIAL ANALYSIS OF THE CITY’S GOVERNMENTAL FUNDS
As noted earlier, the City of El Cerrito uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, the unassigned fund balance may serve as a useful measure of a government’s net resources available for discretionary use as they represent the portion of fund balance which has not yet been limited to use for a particular purpose by either an external party, the City itself, or a group or individual that has been delegated authority to assign resources for particular purposes by the City of El Cerrito’s City Council.
A summary of the changes in fund balance of the Major Funds and Other Governmental Funds is presented below:
The General Fund balance increased by $9.48 million. This included operating revenues exceeding operating expenses by $6.8 million. The operating difference can be attributed to better than anticipated tax revenues, licenses and permits, and charges for services.
The beginning fund balance in the Low and Moderate Income Housing Asset Fund was increased by $141,155 to correctly report unavailable revenues that were previously overstated.
The fund balance in the Federal, State and Local Grants Fund increased by $128,216 as transfers to other funds to reimburse allowable costs was lower than the revenue earned of $3.45 million.
The fund balance in Nonmajor Funds decreased by $133,983 mostly due to on-going capital improvement programs, debt service payments, road maintenance and other special revenue fund programs. The Capital Improvement reported a deficit fund balance of $91,408 due to capital outlay. This deficit will be recovered in FY 2023.
Low/Mod Fed, State Other Nonamajor
General Income Housing and Local Governmental
Fund Asset Fund Grants Fund Funds Total
Total Revenues $ 16,887 47,024,739 $ 3,455,240 $ 6,459,454 $ 56,956,320 $ Total Expenditures 2,472 40,217,837 275,996 6,974,126 47,470,431 Revenues Over (Under) Expenditures 14,415 6,806,902 3,179,244 (514,672) 9,485,889 Transfers in - 3,254,622 - 1,326,912 4,581,534
Transfers out - (580,612) (3,051,028) (946,223) (4,577,863) Net change in fund balances 14,415 9,480,912 128,216 (133,983) 9,489,560 Beginning of year 5,247,776 7,143,262 124,615 9,362,863 21,878,516 Prior Period Adjustment 141,155 - - 141,155 -
End of year $ 5,403,346 16,624,174 $ 252,831 $ 9,228,880 $ 31,509,231 $ Major Funds
Table 3 - Summary of Changes in Fund Balance - Governmental Funds
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City of El Cerrito Management’s Discussion and Analysis General Fund – Components of Fund Balance
In Fiscal Year 21/22, the General Fund’s total fund balance represented approximately 41% of total general fund expenditures. The following chart summarizes the ending fund balance in the General Fund over the last two fiscal years:
Other Governmental Fund - Components of Fund Balance
The following chart summarizes the ending fund balance of all other funds other than the General Fund over the last two fiscal years:
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City of El Cerrito Management’s Discussion and Analysis
CAPITAL ASSETS
The City of El Cerrito’s investment in capital assets for its governmental and business-type activities as of June 30, 2022 amounts to $71.48 million (net of accumulated depreciation). The total decrease in the City’s capital assets, net of depreciation and disposals, was $1.33 million or 1.8%. In Governmental Activities, the net decrease in capital assets was $1.2 million, or 1.7%, while business-type Activities net capital assets decreased by $126,990 or 3.9%. The following table summarizes the City’s capital assets at the end of the year:
Additional information on capital asset can be found in Note 5 in the notes to financial statements.
DEBT ADMINISTRATION
During the year, long-term debt from governmental activities increased by $359,119 and long-term debt attributable to business type activities increased by $143,957, mostly from additional financed purchases net of debt service. The reduction within the business-type category resulted from regular debt service payments.
The following table summarizes the City’s debt at the end of the year:
Additional information on capital asset can be found in Note 7 in the notes to financial statements. 2022 2021 2022 2021 2022 2021 % Change
Land $ 5,191,639 5,191,639 $ - $ - $ 5,191,639 $ 5,191,639 $ 0.00% Construction in progress 798,016 3,198,707 - 3,198,707 - 798,016 300.83% Buildings and improvement 27,408,552 27,408,552 3,495,683 3,495,683 30,904,235 30,904,235 0.00% Machinery and equipment 6,694,533 6,694,533 1,597,612 1,597,612 8,292,145 8,292,145 0.00% Right of use assets - 643,628 - - 643,628 100.00% -
Infrastructure 86,769,509 86,769,509 - 86,769,509 - 86,769,509 0.00% Accumulated deprec./amort. (57,311,937) (61,555,897) (1,961,016) (1,834,026) (63,516,913) (59,145,963) 103.19% Total Capital Assets, Net $ 69,550,312 68,350,671 $ 3,132,279 $ 3,259,269 $ 71,482,950 $ 72,809,581 $ -1.82% Table 4 - Capital Assets at Year End - Net
Governmental Activities Total Business-type Activities
2022 2021 % Change
Revenue bonds and notes $ 14,469,055 $ 15,172,273 -4.63% Leases 114,531 100.00% -
Financed purchases 1,938,097 990,291 95.71%
Total outstanding long-term debt $ 16,521,683 $ 16,162,564 2.22% 2022 2021 % Change
Revenue bonds and notes $ 1,025,600 $ 1,303,000 -21.29% Financed purchases 742,786 321,429 131.09%
Total outstanding long-term debt $ 1,768,386 $ 1,624,429 8.86% Table 5 - Outstanding Long-Term Debt at Year End
Governmental Activities
Business-type Activities
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City of El Cerrito Management’s Discussion and Analysis
GENERAL FUND BUDGETARY HIGHLIGHTS
Changes from the City's General Fund original budget to the final budget are detailed in the Required Supplementary Information section along with a comparison to actual activity for the year ended.
Over the course of the year, the City may revise the expenditure budgets to reflect the changes in the various programs and unanticipated activities, but usually do not change budget assumptions in revenues other than for one-time events. For example, when the City is awards a grant, it appropriates the revenues and expenditures necessary to spend those funds but does not necessarily adjust upward the property tax estimates when the amounts come in higher than expected or reduce other balances that report declines unless the changes are material. Tax estimates are based on trend information where the base amount rolls forward for cumulative increases in long term planning and the trends are reevaluated each year during the budget period.
At the time of the FY 21/22 adoption, City revenues were projected to be $39.45 million and expenditures were projected to be $39.26 million. The final budgeted revenues were $41.93 million and expenditures were $41.66 million. Actual revenues exceed the final budget by $5.01 million and actual expenditures were less than the final budget by $1.44 million.
After transfers, the original adopted budget projected a surplus change in fund balance of $477,368 and the final budget projected a surplus of $554,289. The actual change in fund was for the year was $9.48 million, which was $8.93 million more than the final budget. Transfers in from the Federal, State and Local Grants fund were $2.3 million more than the final budget.
The following table summarizes the City’s budget vs. actual amounts for FY2021-22:
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes and assessments 26,031,617 $ 26,831,617 $ 32,844,740 $ 6,013,123 $ Licenses and permits 636,112 1,136,112 1,440,972 304,860 Fines and forfeitures 140,000 140,000 152,343 12,343
Intergovernmental 7,312,900 7,808,900 4,844,428 (2,964,472) Use of money and property 353,968 353,968 153,515 (200,453) Charges for Services 4,800,000 5,483,000 7,405,175 1,922,175 Other Revenue 175,000 175,000 183,566 8,566
Total Revenues 41,928,597 39,449,597 47,024,739 5,096,142
EXPENDITURES
Current:
General government 5,623,469 6,193,569 5,958,210 235,359 Public works 1,696,985 2,044,065 1,884,039 160,026
Recreation 4,475,719 4,507,719 4,336,021 171,698
Community development 2,548,257 3,273,257 3,064,072 209,185 Public Safety 24,599,220 25,199,020 24,525,779 673,241
Capital outlay 29,381 157,480 87,588 69,892
Debt service
Principal retirement 131,106 131,106 256,711 (125,605)
Interest and fiscal charges 155,130 155,130 105,417 49,713 Total Expenditures 41,661,346 39,259,267 40,217,837 1,443,509 Excess (Deficiency) of Revenues over Expenditures 190,330 $ 267,251 $ 6,806,902 $ 6,539,651 $
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City of El Cerrito Management’s Discussion and Analysis ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES
In FY 2022, the San Francisco Bay Area led the country in economic growth, with a 4.8% increase in gross domestic product (GDP), while other California regions experienced a greater economic slowdown. Similarly, the City of El Cerrito did not experience the anticipated drop in revenue during the “remain-at-home” periods of the COVID-19 pandemic and the Statewide continued state of emergency.
The City’s diversified and resilient revenue base remained strong and exceeded projections. At fiscal year ending June 30, 2022, operating revenues exceeded budget, primarily due to better than anticipated tax revenues, licenses and permits, and charges for services. The General Fund balance increased by approximately $9.5 million from the prior year, with a total General Fund balance of $16.6 million. This General Fund balance represents approximately 41% of total General Fund expenditures.
Despite the City’s positive economic position, management remains cognizant of the economic trends facing the State of California: $24 billion projected budget deficit with resources less than required to cover current costs of authorized services, cooling of labor markets and job growth downshifts, slight increase in unemployment rate for the past two consecutive months, and housing market dips in existing home sales and flattening of home prices.
In addition, City management is mindful of the challenges facing the U.S. including rising inflation, interest rate increases, global supply chain challenges and inability to meet surging consumer demand, and 8% consumer price increases during the past year (more than three times the average in the last three decades). Also, the U.S. is still assessing the comprehensive economic impacts from the recent U.S. bank failures of Silicon Valley Bank and Signature Bank and the now the ailing First Republic Bank. Generally, economic impacts associated with the failure of financial institutions includes decreased consumer spending and cash hoarding, decreased business investment, and other reverberations yet to come.
Also, the City’s employee costs continue to trend upwards as retirement contributions and lower than projected fluctuations in the CalPERS pension plan investments drives pension costs higher. General Fund Employee costs are projected at nearly 75% of Total General Fund Expenditures for FY 2022. This proportion may increase with the increase in pension related costs in FY 2023 and beyond.
Despite these economic trends, the Greater Bay Area and El Cerrito are somewhat better positioned to withstand economic down trends due to its diversified revenue sources and the City’s prudent and conservative financial management strategies and approach of avoiding overly optimist revenue estimates or a presumption of an imminent recession.
El Cerrito’s FY 2023 Amended General Fund Budget is structurally balanced, with estimated revenues projected to be $.85 million greater than expenditures. The projected FY 2023 ending General Fund balance is estimated to be $1.5 - $2.0 million, exceeding the City’s fiscal year General Fund balance goal of $1.0 million.
The city remains focused on financial stability and opportunities to strengthen our financial position. The City is proud of having sufficient reserves at the start of FY 2022 and commits to maintaining a healthy General Fund balance in compliance with the City’s financial policies. So that it can continue to provide the quality of services residents have come to expect.
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City of El Cerrito Management’s Discussion and Analysis
REQUEST FOR INFORMATION
This financial report is designed to provide a general overview of the City of El Cerrito's finances for all of El Cerrito's residents, taxpayers, customers, investors, and creditors. This financial report seeks to demonstrate the City's accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Department of Finance at (510) 215-4312 or by mail at 10890 San Pablo Avenue, El Cerrito, CA 94530.
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BASIC FINANCIAL STATEMENTS
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City of El Cerrito
Statement of Net Position
June 30, 2022
BusinessGovernmental Type
ASSETS Activities Activities Total
Current Assets:
Cash and investments 32,335,230 $ 2,073,422 $ 34,408,652 $ Accounts receivable 3,057,775 684,193 3,741,968
Interest receivable 1,166,144 - 1,166,144
Due from other governments 1,304,317 - 1,304,317
Prepaid items 317,576 - 317,576
Inventory 38,763 - 38,763
Total Current Assets 38,219,805 2,757,615 40,977,420
Noncurrent Assets:
Loans receivable 7,451,152 - 7,451,152
Capital Assets:
Nondepreciable 5,093,296 11,128,309 16,221,605
Depreciable, net of accumulated depreciation (1,961,017) 57,093,637 55,132,620 Amortizable right of use assets, net of amortization - 128,725 128,725 Total Capital Assets, Net 68,350,671 3,132,279 71,482,950 Total Noncurrent Assets 75,801,823 3,132,279 78,934,102 Total Assets $ 5,889,894 114,021,628 $ 119,911,522 $
DEFERRED OUTFLOWS OF RESOURCES
Pension Adjustments 16,073,123 $ - $ 16,073,123 $
Deferred Loss on Refunding 247,035 - 247,035
Total Deferred Outflows of Resources $ - 16,320,158 $ 16,320,158 $
LIABILITIES
Current Liabilities:
Accounts payable 1,844,172 $ 80,421 $ 1,924,593 $
Accrued liabilities 1,647,681 88,233 1,735,914
Interest payable 202,000 - 202,000
Deposits payable 2,107,484 - 2,107,484
Unearned revenue 90,782 - 90,782
Note payable, due within one year 6,060,892 - 6,060,892 Compensated absences, due within one year 1,627,935 48,474 1,676,409 Long-term debt, due within one year 1,087,738 441,646 1,529,384 Total Current Liabilities 14,668,684 658,774 15,327,458 Noncurrent Liabilities:
Net pension liability 48,950,390 48,950,390 -
Claims payable, due in more than one year 15,000 - 15,000 Compensated absences, due in more than one year 876,581 26,101 902,682 Long-term debt - due in more than one year 15,433,946 1,326,740 16,760,686 Total Noncurrent Liabilities 65,275,917 1,352,841 66,628,758 Total Liabilities $ 79,944,601 $ 2,011,615 $ 81,956,216
DEFERRED INFLOWS OF RESOURCES
Pension Adjustments $ 34,808,663 $ 34,808,663 - $
Total Deferred Inflows of Resources $ 34,808,663 $ 34,808,663 - $
NET POSITION
Net investment in capital assets $ 53,377,263 $ 1,363,893 $ 54,741,156 Restricted for:
Capital projects 9,455,701 - 9,455,701
Debt service 7,727 - 7,727
Community development 6,565,876 - 6,565,876
Total Restricted 16,029,304 16,029,304 -
Unrestricted (53,818,045) 2,514,386 (51,303,659)
Total Net Position $ 15,588,522 $ 3,878,279 $ 19,466,801 The accompanying notes are an integral part of these financial statements.
Agenda Packet Page 56 of 401
City of El Cerrito
Statement of ActivitiesFor the Year Ended June 30, 2022 Operating Capital
Charges for Grants and Grants and Governmental Business-Type Functions/Programs Expenses Services Contributions Contributions Total Activities Activities TotalPrimary Government:
Governmental Activities:
General government 7,884,210 $ 547,024 $ 3,051,028 $ - $ 3,598,052 $ (4,286,158) $ (4,286,158) $ Public works 9,260,749 593,215 404,597 1,280,680 2,278,492 (6,982,257) (6,982,257) Recreation 6,089,667 3,932,395 - 3,932,395 - (2,157,272) (2,157,272) Community development 4,262,818 3,096,993 - 3,096,993 - (1,165,825) (1,165,825) Public safety 30,989,792 4,093,311 1,342,292 5,435,603 - (25,554,189) (25,554,189) Interest and fiscal charges 716,380 - - - - (716,380) (716,380) Total Governmental Activities $ 59,203,616 $ 12,262,938 $ 4,797,917 $ 1,280,680 $ 18,341,535 (40,862,081) (40,862,081) Business-Type Activities:
Integrated waste management $ 2,815,640 $ 3,877,922 $ 60,016 $ 3,937,938 - $ $ 1,122,298 1,122,298 Total Business-Type Activities $ 3,877,922 2,815,640 $ 60,016 $ - $ 3,937,938 $ 1,122,298 1,122,298 General Revenues:
Taxes:
Property taxes and assessments - 16,683,058 16,683,058
Sales and use taxes - 9,671,196 9,671,196
Transient occupancy taxes 113,434 - 113,434Franchise taxes 1,181,509 - 1,181,509Business license taxes 1,040,618 - 1,040,618Utility user taxes 3,403,776 - 3,403,776Real property County transfer tax 4,863,035 - 4,863,035Other taxes - 581,641 581,641 Total taxes - 37,538,267 37,538,267
Investment earnings (loss) 140,113 309 140,422Other revenues 1,006,272 - 1,006,272 Total General Revenues 309 38,684,652 38,684,961
Transfers (3,671) 3,671 -
Total General Revenues and Transfers (3,362) 38,688,323 38,684,961 Change in Net Position 1,118,936 (2,173,758) (1,054,822) Net Position - Beginning of Year 2,759,343 14,030,565 16,789,908 Prior Period Adjustments - 3,731,715 3,731,715
Net Position - Beginning of Year, As Adjusted 2,759,343 17,762,280 20,521,623 Net Position - End of Year $ 15,588,522 $ 3,878,279 $ 19,466,801 The accompanying notes are an integral part of these financial statements.
Program Revenues
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GOVERNMENTAL FUND FINANCIAL STATEMENTS
General Fund
The General Fund is used for all the general revenues of the City not specifically levied or collected for other City funds, and the related expenditures. The major revenue sources for this Fund are property taxes, sales taxes, utility users tax, franchise fees, business licenses, unrestricted revenues from the State, fines and forfeitures, and interest income. Expenditures are made for public safety, recreation, and the other services described above.
Low and Moderate Income Housing Asset Special Revenue Fund This fund accounts for the activities related to the housing assets assumed by the City as Housing Successor to the former Redevelopment Agency and the collection of revenues from those restricted assets. The activities are governed by California redevelopment law and must be used to provide housing for people with low and moderate incomes.
Federal, State, and Local Grants Fund Special Revenue Fund This fund accounts for revenues and expenditures related to grants from other governmental agencies.
Agenda Packet Page 59 of 401
City of El Cerrito
Balance Sheet
Governmental Funds
June 30, 2022
Low/Mod Federal
Income State and
Housing Local Nonmajor Total
General Asset Grants Governmental Governmental
Fund Fund Fund Funds Funds
ASSETS
Cash and investments $ 812,220 23,310,907 $ 194,326 $ 6,815,901 $ 31,133,354 $ Accounts receivable - 3,051,028 6,747 - 3,057,775
Interest receivable 24,077 1,052,839 89,228 - 1,166,144 Due from other governments 1,027,427 - - 276,890 1,304,317 Due from other funds 3,051,028 - - - 3,051,028
Loans receivable 4,591,152 - - 2,860,000 7,451,152
Prepaid items 161,576 - - - 161,576
Inventory 38,763 - - - 38,763
Total assets $ 27,620,525 $ 6,456,211 $ 3,334,582 $ 9,952,791 $ 47,364,109
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable $ 1,248,347 $ 30,723 26 $ $ 565,076 $ 1,844,172 Accrued liabilities 1,589,666 - - 58,015 1,647,681
Due to other funds - - 3,051,028 - 3,051,028
Deposits payable 2,006,664 - - 100,820 2,107,484
Unearned revenue 90,782 - - - 90,782
Note payable 6,060,892 - - - 6,060,892
Total liabilities 10,996,351 3,081,751 26 723,911 14,802,039 Deferred Inflows of Resources:
Unavailable revenues 1,052,839 - - - 1,052,839
Total deferred inflows of resources 1,052,839 - - - 1,052,839 Fund Balances:
Nonspendable
Prepaid items 161,576 - - - 161,576
Inventory 38,763 - - - 38,763
Restricted:
Redevelopment - - 252,831 34,331 287,162
Debt service - - - 7,727 7,727
Street improvements - - - 3,320,599 3,320,599
Transportation - - - 742,926 742,926
Public safety - police - - - 312,221 312,221
Public safety - vehicle abatement - - - 410,853 410,853 Parks and recreation - - - 538,513 538,513
Storm drains - - - 955,910 955,910
Public art - - - 162,208 162,208
Housing 5,403,346 - - 2,835,000 8,238,346
Unassigned 16,423,835 - - (91,408) 16,332,427
Total fund balances 5,403,346 16,624,174 252,831 9,228,880 31,509,231 Total liabilities, deferred inflows of
resources and fund balances $ 6,456,211 27,620,525 $ 3,334,582 $ 9,952,791 $ 47,364,109 $ The accompanying notes are an integral part of these financial statements.
Major Funds
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City of El Cerrito
Reconciliation of the Government Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2022
Total Fund Balances - Total Governmental Funds $ 31,509,231 Amounts reported for governmental activities in the statement of net position were different because:
Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet. The capital assets were adjusted as follows:
Capital assets 127,168,605
Less: accumulated depreciation (59,025,641)
Total Capital Assets 68,142,964
Interest payable on long-term debt did not require current financial resources. Therefore, interest payable was not reported as a liability in Governmental Funds Balance Sheet. (202,000) Internal service funds are used by management to charge the costs of vehicles and equipment replacement to individual funds. The assets and liabilities of the internal service funds are included in governmental activities. 420,341
The differences from benefit plan assumptions and estimates versus actuals are not included in the plan's actuarial study until the next fiscal year and are reported as deferred inflows or deferred outflows of resources in the statement of net position. (18,735,540) The difference between the carrying value of refunded debt and the reacquisition price is deferred and amortized over the shorter of the remaining life of the refunded debt or the refunding debt. 247,035 Liabilities were reported for certain revenues that were not available to pay current period expenditures and were reported as unearned in the fund statements. 1,052,839 Long-term obligations were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds Balance Sheet. The long-term liabilities were adjusted as follows:
Long-term debt (15,376,442)
Claims payable (15,000)
Compensated absences (2,504,516)
Net pension liability (48,950,390)
Total Long-Term Obligations (66,846,348)
Net Position of Governmental Activities $ 15,588,522
The accompanying notes are an integral part of these financial statements.
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City of El Cerrito
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2022
Low/Mod Federal
Income State and
Housing Local Nonmajor Total
General Asset Grants Governmental Governmental
Fund Fund Fund Funds Funds
REVENUES
Taxes and assessments 32,844,740 $ - $ - $ 4,843,330 $ 37,688,070 $ Licenses and permits 1,440,972 - - - 1,440,972
Fines and penalties 152,343 - - 2,958 155,301
Intergovernmental 4,844,428 - 3,356,745 1,131,527 9,332,700 Use of money and property 153,515 16,887 - 462,824 633,226 Charges for Services 7,405,175 - - 6,913 7,412,088
Other Revenue 183,566 - 98,495 11,902 293,963
Total Revenues 47,024,739 16,887 3,455,240 6,459,454 56,956,320
EXPENDITURES
Current:
General government 5,958,210 - 1,914 6,140 5,966,264
Public works 1,884,039 - 636 3,098,129 4,982,804
Recreation 4,336,021 - - 188,320 4,524,341
Community development 3,064,072 2,472 272,831 28,741 3,368,116 Public Safety 24,525,779 - 615 24,526,394 -
Capital outlay 87,588 - - 2,313,102 2,400,690
Debt service
Principal 256,711 - - 701,874 958,585
Interest and fiscal charges 105,417 - - 637,820 743,237 Total Expenditures 40,217,837 2,472 275,996 6,974,126 47,470,431 Excess (Deficiency) of
Revenues over Expenditures 6,806,902 14,415 3,179,244 (514,672) 9,485,889
OTHER FINANCING SOURCES (USES)
Transfers in 3,254,622 - - 1,326,912 4,581,534
Transfers out (580,612) - (3,051,028) (946,223) (4,577,863) Total Other Financing Sources (Uses) 2,674,010 - (3,051,028) 380,689 3,671 Net Change in Fund Balances 9,480,912 14,415 128,216 (133,983) 9,489,560 Fund Balances Beginning 7,143,262 5,247,776 124,615 9,362,863 21,878,516 Prior Period Adjustments - 141,155 - - 141,155
Fund Balances Beginning, as Adjusted 7,143,262 5,388,931 124,615 9,362,863 22,019,671 Fund Balances Ending $ 16,624,174 $ 5,403,346 $ 252,831 $ 9,228,880 $ 31,509,231 The accompanying notes are an integral part of these financial statements.
Major Funds
Agenda Packet Page 62 of 401
City of El Cerrito
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, 2022
Net Change in Fund Balances - Total Governmental Funds $ 9,489,560 Amounts reported for governmental activities in the Statement of Activities and Changes in net position were different because:
Governmental Funds report capital outlay as expenditures. However, in the Government-Wide Statement of Activities and Changes in net position, the cost of those assets was allocated over their estimated useful lives as depreciation expense.
Capital outlay 2,400,688
Depreciation expense (3,746,479)
Compensated absences not required to be paid with current financial resources are not reported in the governmental funds, but are accrued as noncurrent liabilities in the Government Wide Statement Net Position. The change from prior year accrued compensated absences is reported in the applicable 125,563 program expense.
Certain revenues were not recorded or recorded as unearned revenue in the governmental funds because they did not meet the revenue recognition criteria of availability. However, they were included as revenue in the Government-Wide Statement of Activities under the full accrual basis. 69,867 The difference between the carrying value of refunded debt and the reacquisition price is deferred and amortized over the shorter of the remaining life of the refunded debt or the refunding debt. (17,672) In governmental funds, actual contributions to benefit plans are reported as expenditures in the year incurred. However, in the government-wide statement of activities, only the current year benefit expense as noted in the plans' valuation reports is reported as an expense, as adjusted for deferred inflows and outflows of resources. (11,543,096)
Repayment of long-term debt was an expenditure in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position. 958,585 Premiums from the issuance of long-term debt are amortized over the life of the bonds in the Statement of Activities and reported as proceeds when issued in governmental funds. 53,219 Internal service funds are used by management to charge the costs of vehicles and equipment replacement to individual funds. The assets and liabilities of the internal service funds are included in governmental activities. 44,697
Interest expense on long-term debt was reported in the Government-Wide Statement of Activities and Changes in net position, but it did not require the use of current financial resources. Therefore, interest expense was not reported as expenditures in governmental funds. The following amount represented the net change in accrued interest from from prior year. (8,690)
Change in Net Position of Governmental Activities $ (2,173,758) The accompanying notes are an integral part of these financial statements.
Agenda Packet Page 63 of 401
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Agenda Packet Page 64 of 401
PROPRIETARY FUND FINANCIAL STATEMENTS
Integrated Waste Management Fund
This fund accounts for the City's recycling collection service 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.
Vehicle and Equipment Replacement Internal Service Fund The City’s internal service fund accounts for the City's departments' vehicle and equipment replacement activities.
Agenda Packet Page 65 of 401
City of El Cerrito
Statement of Net Position
Proprietary Funds
June 30, 2022
Integrated Vehicle and
Waste Equipment
Management Replacement
Fund Fund
ASSETS
Current assets:
Cash and cash equivalents $ 2,073,422 $ 1,201,876
Accounts receivable 684,193 -
Deposits - 156,000
Total current assets 2,757,615 1,357,876
Capital assets:
Buildings, equipment and vehicles 5,093,296 2,737,963
Less: accumulated depreciation (1,961,017) (2,530,256)
Total capital assets, net 3,132,279 207,707
Total assets $ 5,889,894 $ 1,565,583
LIABILITIES
Current liabilities:
Accounts payable $ 80,421 $ -
Accrued liabilities 88,233 -
Compensated absences, due within one year 48,474 -
Financed purchases, due within one year 441,646 98,352
Total current liabilities 658,774 98,352
Noncurrent liabilities:
Compensated absences, due in more than one year 26,101 - Financed purchases, due in more than one year 1,326,740 1,046,890 Total noncurrent liabilities 1,352,841 1,046,890
Total liabilities $ 2,011,615 $ 1,145,242
NET POSITION
Net Investment in capital assets $ 1,363,893 $ 363,706
Unrestricted 2,514,386 56,635
Total net position $ 3,878,279 $ 420,341
The accompanying notes are an integral part of these financial statements.
Business-Type
Activities
Enterprise Funds
Governmental
Activities
Internal Service
Funds
Agenda Packet Page 66 of 401
City of El Cerrito
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the Year Ended June 30, 2022
Integrated Vehicle and
Waste Equipment
Management Replacement
Fund Fund
OPERATING REVENUES
Charges for services 3,748,970 $ 156,000 $
Recycling sales 128,685 -
Other 267 -
Total operating revenues 156,000 3,877,922
OPERATING EXPENSES
Personnel services 1,577,100 -
Services 854,792 -
Supplies - 198,579
Depreciation 111,303 126,990
Total operating expenses 111,303 2,757,461
Operating income (loss) 44,697 1,120,461
NONOPERATING REVENUES (EXPENSES)
Grants - 60,016
Interest expense (58,179) -
Investment earnings 309 -
Total nonoperating revenues (expenses) - 2,146
Income (loss) before operating transfers 44,697 1,122,607 Transfers in - -
Transfers out (3,671) -
Total transfers - (3,671)
Change in net position 44,697 1,118,936
Total net position - beginning 375,644 2,759,343
Total net position - ending $ 420,341 3,878,279 $
The accompanying notes are an integral part of these financial statements.
Business-Type
Activities
Enterprise Funds
Governmental
Activities
Internal Service
Funds
Agenda Packet Page 67 of 401
City of El Cerrito
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2022
Integrated Vehicle and
Waste Equipment
Management Replacement
Fund Fund
Cash flows from operating activities:
Receipts from customers 3,717,302 $ 156,000 $
Payments to suppliers (1,042,832) -
Payments to employees (1,484,791) -
Net cash provided (used) by operating activities 1,189,679 156,000 Cash flows from noncapital financing activities:
Receipts from grants - 60,016
Interfund transactions - (3,671)
Net cash provided (used) by noncapital financing activities 56,345 - Cash flows from capital financing activities:
Deposits paid to purchase capital assets - (156,000)
Proceeds from long-term debt - 1,145,241
Principal payments on long-term debt 143,957 -
Interest paid on long-term debt (58,179) -
Net cash provided (used) by capital financing activities 85,778 989,241 Cash flows from investing activities:
Investment income (loss) 307 -
Net cash provided (used) by investing activities 307 -
Net increase (decrease) in cash and cash equivalents 1,332,109 1,145,241 Cash and cash equivalents - beginning 741,313 56,635
Cash and cash equivalents - ending 2,073,422 $ 1,201,876 $ Reconciliation of operating income to net cash provided (used) by operating activities:
Operating income (loss) 1,120,461 $ 44,697 $
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
Depreciation 126,990 111,303
Change in operating assets and liabilities:
Accounts receivables (160,620) -
Deferred outflows of resources 44,580 -
Accounts payable 10,539 -
Accrued liabilities 58,946 -
Compensated absences (11,217) -
Net cash provided (used) by operating activities 1,189,679 $ 156,000 $ The accompanying notes are an integral part of these financial statements.
Business-Type
Activities
Enterprise Funds
Governmental
Activities
Internal Service
Funds
Agenda Packet Page 68 of 401
FIDUCIARY FUND FINANCIAL STATEMENTS
Pension Trust Fund
The City of El Cerrito Pension Trust Fund accounts for assets held by the City on behalf of the retiree's of the City's single employer pension plan.
Private Purpose Trust Fund
The Successor Agency Trust Fund accounts for assets and liabilities transferred from the City to the Successor Agency Trust Fund.
Agenda Packet Page 69 of 401
City of El Cerrito
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2022
El Cerrito
Redevelopment Agency
Pension Successor Agency
Trust Private-Purpose Trust
Fund Fund
ASSETS
Cash and investments $ 24,229 - $
Total assets $ 24,229 - $
LIABILITIES
Accounts payable $ - 6,747 $
Accrued liabilities 59,156 -
Long-term liabilities:
Due within one year 1,957,533 -
Due in more than one year 5,112,884 -
Total liabilities $ 7,129,573 6,747 $
NET POSITION
Held in trust (6,747) $ - $
Total Net Position $ (7,105,344) (6,747) $
The accompanying notes are an integral part of these financial statements.
Agenda Packet Page 70 of 401
City of El Cerrito
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2022
El Cerrito
Redevelopment Agency
Pension Successor Agency
Trust Private-Purpose Trust
Fund Fund
ADDITIONS
Property taxes - $ 2,094,578 $
Employer contributions 85,000 -
Total additions 2,094,578 85,000
DEDUCTIONS
Retirement and other benefits 91,747 -
General government - 2,925
Community development - 251,031
Debt service:
Interest and fiscal charges - 198,531
Total deductions 452,487 91,747
Change in net position (6,747) 1,642,091
Total net position - beginning - (8,747,435)
Total net position - ending (6,747) $ (7,105,344) $
The accompanying notes are an integral part of these financial statements.
Agenda Packet Page 71 of 401
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Agenda Packet Page 72 of 401
NOTES TO THE BASIC
FINANCIAL STATEMENTS
Agenda Packet Page 73 of 401
City of City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2022
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of El Cerrito (City) was incorporated August 1, 1917. The City provides the following services:
public safety (police and fire), recreation, streets and highways, recycling, public improvements, planning and zoning, and general administration services. The City's population has remained relatively stable for some years; population at June 30, 2021, was 24,953. The City operates under the Council-Manager form of government, with five elected Council members served by a full-time City Manager and staff.
A. Financial Reporting Entity
The accompanying basic financial statements present the financial activity of the City along with the financial activities of its blended component units, which are entities for which the City is financially accountable. Together these entities comprise the primary government for reporting purposes. Although they are separate legal entities, blended component units are in substance part of the City's operations and are reported as an integral part of the City's financial statements. The City's component units, which are described below, are all blended.
The El Cerrito Public Financing Authority (Authority)
The El Cerrito Public Financing Authority is a nonprofit corporation organized by the City to provide financial assistance to the City. Administrative and related normal business expenses incurred in the dayto-day operations of the Authority are provided by the City. Such expenses are insignificant to the Authority's operations. The Authority obtains financing for City sponsored projects using leases signed by the City as collateral. The amounts of the leases are calculated to provide sufficient resources to repay the debt incurred to finance the projects. The financial activities of the Authority have been included in these financial statements in the Public Financing Authority Debt Service Fund and the Integrated Waste Management Enterprise Fund.
The El Cerrito Municipal Services Corporation
The El Cerrito Municipal Services Corporation (Corporation) is a nonprofit corporation organized in 1982 by the City under the corporations laws of the State of California. The Corporation was originally organized to assist the City with communications with its residents and to provide financial assistance to the City by financing real and personal property and improvements for the benefit of the residents of the City. In May 2011, the Corporation amended its articles of incorporation to provide support to the City by utilizing private and public funding sources to combat community blight and deterioration in the City and contribute to the physical improvement of the City; providing and expanding economic opportunities for low and moderate income households in the City; encouraging and stimulating economic development within the City. The financial activities of the Corporation have been included in these financial statements in the Municipal Services Corporation Special The City of El Cerrito Employees' Pension Plan
The City of El Cerrito Employees' Pension Plan is governed by the City's Retirement System Ordinance, Chapter 3 of the City of El Cerrito Municipal Code, and is used to account for contributions and investment income restricted to pay retirement and death benefits of employees who elected not to be covered by the California Public Employees' Retirement System as of February 6, 1959. Benefit and contribution provisions are established by the City Council. Eligibility, actuarial interest rates, administration and certain other tasks are the responsibility of the Council established by the above ordinance. The financial activities of the Pension Plan have been included in these financial statements in the Pension Trust Fund.
Agenda Packet Page 74 of 401
City of City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2022
Audited financial statements for the Authority, Corporation and Pension Plan may be obtained from the City of El Cerrito, 10890 San Pablo Avenue, El Cerrito, CA 94530.
The City applies all applicable GASB pronouncements for certain accounting and financial reporting guidance. In December of 2010, GASB issued Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements.
GASB 62 incorporates pronouncements issued on or before November 30, 1989 into GASB authoritative literature. In June of 2015, GASB issued Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments. GASB 76 supersedes Statement No. 55, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments. GASB 76 also amends GASB 62 and AICPA Pronouncements paragraphs 64, 74, and 82. The GAAP hierarchy sets forth what constitutes GAAP for all state and local governmental entities. It establishes the order of priority of pronouncements and other sources of accounting and financial reporting guidance that a governmental entity should apply. The sources of authoritative GAAP are categorized in descending order of authority as follows:
a. Officially established accounting principles—Governmental Accounting Standards Board (GASB) Statements (Category A)
b. GASB Technical Bulletins; GASB Implementation Guides; and literature of the AICPA cleared by the GASB (Category B).
If the accounting treatment for a transaction or other event is not specified by a pronouncement in Category A, a governmental entity should consider whether the accounting treatment is specified by a source in Category B.
B. Basis of Presentation
The basic financial statements of the City of El Cerrito, California, (the City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies.
The Governmental Accounting Standards Boards (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below.
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 with a separate set of self-balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues, and expenditures or expenses, as appropriate. These funds are established for the purpose of carrying out specific activities or certain objectives in accordance with specific regulations, restrictions, or limitations. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.
Government-Wide Financial Statements
The City's government-wide financial statements include a Statement of Net Position and a Statement of Activities and Changes in Net Position. These statements present summaries of governmental and business-type activities for the City. Fiduciary activities of the City are not included in these statements.
Governmental activities, which normally are supported by taxes and intergovernmental revenues, are
Agenda Packet Page 75 of 401
City of City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2022
reported separately from business-type activities, which rely to a significant extent on fees and charges for support.
These 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, deferred inflows of resources, 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. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those clearly identifiable with a specific function or segment. 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
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the fiduciary funds are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.
Certain eliminations have been made as prescribed by GASB Statement No. 34 in-regards-to interfund activities, 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, internal fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:
• Transfers in/Transfers out
The City applies all applicable GASB Pronouncements including all Interpretations currently in effect.
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 non-major 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.
All 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, deferred outflows of resources, current liabilities, and deferred inflows of resources are included on the balance sheets. The Statement of Revenues, Expenditures and Changes in Fund Balances present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets.
Agenda Packet Page 76 of 401
City of City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2022
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.
Accordingly, revenues are recorded when received in cash, except that revenues subject to accrual (up to 60 days after year-end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property taxes, taxpayer-assessed tax revenues (sales taxes, transient occupancy taxes, etc.), licenses, grant revenues and earnings on investments. Expenditures are recorded in the accounting period in which the related fund liability is incurred.
Unearned revenues arise when potential revenues do not meet both the "measurable" and "available" criteria for recognition in the current period. Unearned revenues also arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods when both revenue recognition criteria are met or when the government has a legal claim to the resources, the unearned revenue is removed from the combined balance sheet and revenue is recognized.
The City reports the following funds as major funds:
General Fund
The General Fund is the general operating fund of the City. It is used for all financial resources except those required to be accounted for in another fund.
Low and Moderate Income Housing Asset Special Revenue Fund This fund accounts for the activities related to the housing assets assumed by the City as Housing Successor to the former Redevelopment Agency and the collection of revenues from those restricted assets. The activities are governed by California redevelopment law and must be used to provide housing for people with low and moderate incomes. The major revenue sources are the loan repayments in the fiscal year. Prior to dissolution of the Redevelopment Agency in 2012 it received property tax revenues but has not received any since.
Federal, State and Local Grants Special Revenue Fund
The Federal, State and Local Grants Special Revenue Fund accounts for revenues and expenditures related to grants from other governmental agencies.
Additionally, the City reports the following nonmajor fund types of governmental funds:
Special Revenue Funds
Special revenue funds account for and report the proceeds of specific revenue sources that are restricted, committed or assigned to specific purposes other than debt service or capital projects.
Debt Service Funds
Debt service funds are used to accumulate resources for repayment of the rbonds and lease arrangements.
Capital Project Funds
Capital project funds account for and report financial resources that are restricted, committed, or assigned to expenditures for capital outlays, including the acquisition or construction of capital facilities and other capital assets in governmental funds.
Agenda Packet Page 77 of 401
City of City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2022
Proprietary Funds
In the fund financial statements, proprietary funds are presented using the accrual basis of accounting.
Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered. In the fund financial statements, proprietary funds are presented using the “economic resources measurement focus”. This means all assets, deferred outflows of resources, liabilities (whether current or noncurrent) and deferred inflows of resources associated with their activities are included on their balance sheets. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net position.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal value. Non-operating revenues, such as subsidies, taxes, and investment earnings result from nonexchange transactions or ancillary activities. Amounts paid to acquire capital assets are capitalized as assets in the proprietary fund financial statements.
The City has the following enterprise fund that have been reported as major:
Integrated Waste Management Enterprise Fund
This fund is used to account for the City's recycling collection services operations financed and operated in a manner similar to a private business enterprise.
The City also reports the following internal service fund:
Vehicles and Equipment Replacement Internal Service Fund The Vehicles and Equipment Replacement Internal Service Fund is used to finance and account for providing vehicles and equipment to the line departments and avoiding financing costs associated with the acquisition of necessary capital assets.
Fiduciary Fund Financial Statements
Fiduciary fund financial statements consist of a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position. Fiduciary funds are accounted for using the accrual basis of accounting.
The City of El Cerrito Pension Trust Fund and the El Cerrito Redevelopment Agency Successor Agency Private-Purpose Trust Fund account for the accumulation of resources to be used for payments at appropriate amounts and times in the future. The financial activities of these funds are excluded from the Government-wide financial statements, but are presented in the separate Fiduciary Fund financial statements.
C. Cash, Cash Equivalents and Investments
The City pools cash resources from all funds in order to facilitate the management of cash. The balance in the pooled cash account is available to meet current operating requirements. Cash in excess of current requirements is invested in various interest-bearing accounts and other investments for varying terms.
The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from the date of acquisition. Cash and cash
Agenda Packet Page 78 of 401
City of City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2022
equivalents are combined with investments and displayed as Cash and Investments. For the purpose of the statement of cash flows, the City considers all pooled cash and investments (consisting of cash and investments and restricted cash and investments) held by the City as cash and cash equivalents because the pool is used essentially as a demand deposit account from the standpoint of the funds. The City also considers all non-pooled cash and investments (consisting of cash with fiscal agent and restricted cash and investments held by fiscal agent) as cash and cash equivalents because investments meet the criteria for cash equivalents defined above.
Deposit and Investment Risk Disclosures - In accordance with GASB Statement No. 40, Deposit and Investment Disclosures (Amendment of GASB Statement No. 3), certain disclosure requirements, if applicable, for Deposits and Investment Risks in the following areas: Interest Rate Risk, Overall Credit Risk, Custodial Credit Risk, Concentrations of Credit Risk, and Foreign Currency Risk.
Other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures. The City participates in an investment pool managed by the State of California titled Local Agency Investment Fund (LAIF), which has invested a portion of the pool funds in Structured Notes and Asset Backed Securities. LAIF's investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and Asset-Backed Securities are subject to market risk as to change in interest rates.
Investments are recorded at fair value in accordance with GASB Statement No. 72, Fair Value Measurement and Application. Accordingly, the change in fair value of investments is recognized as an increase or decrease to investment assets and investment income. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction. In determining this amount, three valuation techniques are available:
• Market approach - This approach uses prices generated for identical or similar assets or liabilities.
The most common example is an investment in a public security traded in an active exchange such as the NYSE.
• Cost approach - This technique determines the amount required to replace the current asset. This approach may be ideal for valuing donations of capital assets or historical treasures. • Income approach - This approach converts future amounts (such as cash flows) into a current discounted amount.
Each of these valuation techniques requires inputs to calculate a fair value. Observable inputs have been maximized in fair value measures, and unobservable inputs have been minimized.
D. Restricted Cash and Investments
Certain restricted cash and investments are held by fiscal agents for the redemption of bonded debt, for acquisition and construction of capital projects, and to meet bond indenture debt reserve requirements. Cash and investments are also restricted for deposits held for others within the enterprise funds.
E. Inventory and Prepaid Items
Inventory held in the General Fund is valued at cost using the first-in-first-out (FIFO) inventory method.
Inventory of the General Fund consist of expendable supplies held for consumption. The cost is recorded as an expenditure in the General Fund at the time individual items are consumed. Reported
Agenda Packet Page 79 of 401
City of City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2022
General Fund inventory is equally offset by nonspendable fund balance which indicates that the inventory does not constitute available spendable resources even though the inventory is a component of net current assets.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. In governmental funds, prepaid items are accounted for using the consumption method and a portion of fund balance equal to the prepaid items has been offset by nonspendable fund balance to indicate that is not available for appropriation.
F. Interfund Receivables and Payables
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” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable government funds to indicate that they are not available for appropriation and are not expendable available financial resources. The City considers all trade and property tax receivables to be fully collectible and therefore no allowance for uncollectible accounts is considered necessary.
G. Receivables
Billed, but unpaid, services provided to individuals or non-governmental entities are recorded as accounts receivable. Revenues earned but not collected by year-end are accrued. No allowance for uncollectible accounts receivable has been provided as management has determined that uncollectible accounts have historically been immaterial and the direct write-off method does not result in a material difference from the allowance method.
H. Loans Receivable
Under the City’s housing opportunity program, loans are made to qualified individuals and businesses within prescribed project areas for the purpose of housing acquisition, housing rehabilitation and/or economic development. Repayments of the outstanding loans are classified as a revenue source in the applicable funds. The portion of loans receivable deemed to be unavailable have been offset by Unavailable Revenues in the accompanying financial statements, which is a part of deferred inflows of resources.
I. Lease Receivables
When applicable, the City’s lease receivables are measured at the present value of lease payments expected to be received during the lease term. A deferred inflow of resources is recorded for the lease.
The deferred inflow of resources is recorded at the initiation of the lease in an amount equal to the initial recording of the lease receivable plus incentive payments received. The deferred inflow of resources is amortized on a straight-line basis over the term of the lease.
Agenda Packet Page 80 of 401
City of City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2022
J. Capital Assets
Capital assets used in governmental fund operations, including infrastructure assets (i.e. roads, curbs, gutters, bridges, sidewalks, drainage systems, lighting systems, and other assets) are reflected in the government-wide financial statements, along with related depreciation and amortization. Capital assets are defined by the City as assets with an initial individual cost of more than $10,000 and an estimated life in excess of one year. Purchased capital assets are valued at historical cost or estimated historical cost.
Right of use assets are valued at the net present value of the total lease payments over the period of the lease. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are valued at acquisition value on the date donated. Capital assets acquired under finance or purchase agreements are capitalized when the City accumulates an ownership equity in the assets acquired.
The purpose of depreciation and amortization is to spread the cost of capital assets equitably among all users over the life of these assets or the lease term. The amount charged to depreciation and amortization expense each year represents that year’s pro rata share of the cost of capital assets.
Depreciation is provided using the straight-line method whereby the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated. Amortization is provided using the straight-line method of the net present value of the asset over the lease period.
Depreciation is recorded on a straight-line basis over the useful lives of the assets as follows:
Buildings 20-50 Years
Building improvements 20-60 Years
Equipment 2-15 Years
Streets 20 Years
Parks 20 Years
Curbs and gutters 20 Years
Storm drains 65 Years
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during 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.
K. Deferred Outflows/Deferred Inflows
In addition to assets, the statement of financial position or balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position or fund balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.
In addition to liabilities, the statement of financial position or balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.
Agenda Packet Page 81 of 401
City of City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2022
L. Interest Payable
In the government-wide and proprietary fund financial statements, interest payable of long-term debt is recognized as an incurred liability for governmental fund types. The City has not allocated the interest on long-term debt to departments. In the fund financial statements, governmental fund types do not recognize the interest payable when the liability is incurred. Interest on long-term debt is recorded in the fund statements when payment is made.
M. Compensated Absences
Compensated absences comprise unused vacation and 25% of unused sick leave, which are accrued as earned. The liability for compensated absences is determined annually. The City's liability for compensated absences is recorded in various Governmental funds or Proprietary funds as appropriate.
Compensated absences are reported in governmental funds only if they have matured, such as for the unused reimbursable leave still outstanding following an employee's retirement. The long-term portion for Governmental Activities is recorded in the Statement of Net Position.
N. Deferred Compensation
City employees may defer a portion of their compensation under City sponsored Deferred Compensation Plans created in accordance with Internal Revenue Code Section 457. Under these Plans, participants are not taxed on the deferred portion of their compensation until distributed to them; distributions may be made only at termination, retirement, death or in an emergency as defined by the Plans. The laws governing deferred compensation plan assets require plan assets to be held by a Trust for the exclusive benefit of plan participants and their beneficiaries. Since the assets held under these plans are not the City's property and are not subject to City control, they have been excluded from these financial statements. The City has determined that this plan does not meet the reporting requirements of GASB Statement No. 97 - Certain Component Unit Criteria, And Accounting And Financial Reporting For Internal Revenue Code Section 457 Deferred Compensation Plans and GASB Statement No. 84 - Fiduciary Activities.
O. Long-Term Liabilities
In the government-wide financial statements and proprietary fund statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental or business-type activities.
Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. Debt issuance costs are expensed in year incurred. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financial sources. Premiums received on debt issuance are reported as other financing sources while discounts on debt issuance reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
P. Lease Liabilities
The City is a lessee for a noncancellable leases. The City recognizes a lease liability and an intangible right‐to‐use lease asset (capital asset) in the government‐wide financial statements.
Agenda Packet Page 82 of 401
City of City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2022
At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight‐line basis over its useful life.
Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments. • The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.
• The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.
Lease assets are reported separately with capital assets as right of use assets and lease liabilities are reported with long-term liabilities in the statement of net position.
Q. Benefit Plans
Pension Expense
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (the Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS.
For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
For this report, the following timeframes are used:
Valuation Date June 30, 2020
Measurement Date June 30, 2021
Measurement Period July 1, 2020 to June 30, 2021
R. Fund Balances
In accordance with Government Accounting Standards Board 54, Fund Balance Reporting and Governmental Fund Type Definitions, the City classifies governmental fund balances as follows:
Nonspendable
Nonspendable fund balance represents balances set aside to indicate items that do not represent available, spendable resources even though they are a component of assets. Fund balances required to be maintained
Agenda Packet Page 83 of 401
City of City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2022
intact, such as Permanent Funds, and assets not expected to be converted to cash, such as prepaids, notes receivable, leases receivable in excess of deferred inflows of resources and land held for redevelopment are included. However, if proceeds realized from the sale or collection of nonspendable assets are restricted, committed, or assigned, then Nonspendable amounts are required to be presented as a component of the applicable category.
Restricted
Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires the resources to be used only for specific purpose.
Encumbrances and nonspendable amounts subject to restrictions are included along with spendable resources.
Committed
The City Council, as the City’s highest level of decision-making authority, may commit fund balance for specific purposes pursuant to the constraints imposed by formal actions taken, such as an ordinance or resolution. These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same type of formal action taken to establish the commitment. City Council action to commit fund balance needs to occur within the fiscal reporting period; however the specific amounts can be determined subsequently. Encumbrances and nonspendable amounts subject to Council commitments are included along with spendable resources.
Assigned
Assigned fund balances are amounts constrained by the City’s intent to be used for a specific purpose, but are neither restricted nor committed. Intent is expressed by the City Council or its designee, the Finance Director, and may be changed at the discretion of the City Council or its designee. This category includes encumbrances; nonspendable amounts, when it is the City’s intent to use proceeds or collections for a specific purpose, and residual fund balances, if any, of Special Revenue, Capital Projects, and Debt Service Funds, which have not been restricted or committed.
Unassigned
Unassigned fund balance represents residual amounts that have not been restricted, committed, or assigned. This includes the residual general fund balance and residual fund deficits, if any, of other governmental funds.
Flow Assumption / Spending Order Policy
When expenditures are incurred for purposes for which both restricted and unrestricted fund balance is available, the City considers restricted funds to be spent first. When expenditures are incurred for which committed, assigned, or unassigned fund balances are available, the City considers amounts to be spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the City Council has directed otherwise.
S. Net Position
In the government-wide financial statements, net position is classified in the following categories:
Net Investment in Capital Assets
This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that are attributed to the acquisition, construction, or improvement of the assets. In addition, deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition,
Agenda Packet Page 84 of 401
City of City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2022
construction, or improvement of those assets or related debt also are included in the net investment in capital assets component of net position.
Restricted Net Position
This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments. These include developer fees received for use on capital projects, debt service requirements, and community development projects.
Unrestricted Net Position
This amount is all net position that does not meet the definition of "net investment in capital assets" or "restricted net position." The detail of amounts reported for each of the above defined net position categories is reported in the government-wide Statement of Net Position.
Use of Restricted/Unrestricted Net Position
When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the City's policy is to apply restricted net position first.
T. Interfund Transactions
Interfund services provided and used are accounted for as revenue, expenditures or expenses, as appropriate. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursed fund. All other interfund transactions, except for interfund services provided and used and reimbursements, are reported as transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as transfers.
U. Property Taxes and Special Assessments
Property tax revenue is recognized in the fiscal year for which the tax and assessment is levied. The County of Contra Costa levies, bills and collects property taxes and special assessments for the City; under the County's "Teeter Plan" the County remits the entire amount levied and handles all delinquencies, retaining interest and penalties. Secured and unsecured property taxes are levied on January 1 Secured property tax is due in two installments, on November 1 and February 1, becomes a lien on those dates and becomes delinquent on December 10 and April 10, respectively. Unsecured property tax is due on July 1, and becomes delinquent on August 31. The term "unsecured" refers to taxes on personal property other than real estate, land and buildings. These taxes are secured by liens on the property being taxed. Property tax revenues are recognized by the City in the fiscal year they are assessed.
V. Budgetary Information
Annually, the City Manager submits to the City Council a proposed operating budget in June for the following fiscal year, as required by the City's budget ordinance. This budget includes proposed expenditures and the revenues expected to finance them. As modified during public study sessions, the preliminary budget becomes the proposed budget. Public hearings are conducted to obtain taxpayer comments and the budget is legally enacted through passage of a resolution. The City Manager is authorized to transfer budgeted amounts within departments within funds. In addition, amendments that are made to authorize spending of increased or new special purpose revenues may be approved by the City Manager. Budget modifications between funds or increases or decreases to a fund's overall budget must be approved by the City Council. The legal level of budgetary control is at the fund level, except for the Municipal Services Corporation which requires approval by its Board.
Agenda Packet Page 85 of 401
City of City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2022
Budgets are adopted on a basis consistent with generally accepted accounting principles. Unexpended appropriations lapse at year end and must be reappropriated in the following year. Budgeted amounts are as originally adopted, or as amended by the City Council.
W. Encumbrances
Under encumbrance accounting, purchase orders, contract and other commitments for expenditures are recorded in order to commit that portion of the applicable appropriation. Encumbrance accounting is employed as an extension of formal budgetary integration in all funds. All appropriations and encumbrances lapse at year end, valid outstanding encumbrances (those for which performance under the executory contract is expected in the next year) are re-appropriated and become part of the subsequent year’s budget pursuant to state regulations.
X. Unearned Revenue
Unearned revenue arises when assets are received before revenue recognition criteria have been satisfied.
Grants and entitlements received before eligibility requirements are met are recorded as deferred inflows from unearned revenue. In the governmental fund financial statements, receivables associated with nonexchange transactions that will not be collected within the availability period have been recorded as deferred inflows from unavailable revenue.
Y. Use of Estimates
The preparation of basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
Z. Implementation of New Accounting Pronouncements
GASB Statement No. 87, Leases
The objective of this statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities. As of June 30, 2022, the City recognized one contract as a lease and implemented the applicable accounting and reporting requirements of a lessor under GASB 87. As a result, the City recorded right of use assets of $257,451, net of accumulated amortization, and lease liability of $225,680, increasing beginning fund balance and net position by $31,771. See Note 7 for additional information.
Agenda Packet Page 86 of 401
City of City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2022
AA.Upcoming New Accounting Pronouncements
The City is currently analyzing its accounting practices to determine the potential impact on the financial statements of the following recent GASB Statements:
GASB Statement No. 91, Conduit Debt Obligations
The objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement also clarifies 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 reporting of additional commitment and voluntary commitments extended by issuers and arrangements associated with the debt obligations; and improving required note disclosures. The requirements of this Statement were initially to be effective for financial statements for periods beginning after December 15, 2020 but have been delayed to periods beginning after December 15, 2021, pursuant to GASB Statement No. 95.
Earlier application is encouraged.
GASB Statement No. 94, Public-Private Partnerships and Public-Public Partnerships and Availability Payment Arrangements
The primary objective of this Statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). As used in this Statement, a PPP is an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange-like transaction. Some PPPs meet the definition of a service concession arrangement (SCA), which the Board defines in this Statement as a PPP in which (1) the operator collects and is compensated by fees from third parties; (2) the transferor determines or has the ability to modify or approve which services the operator is required to provide, to whom the operator is required to provide the services, and the prices or rates that can be charged for the services; and (3) the transferor is entitled to significant residual interest in the service utility of the underlying PPP asset at the end of the arrangement.
This Statement also provides guidance for accounting and financial reporting for availability payment arrangements (APAs). As defined in this Statement, an APA is an arrangement in which a government compensates an operator for services that may include designing, constructing, financing, maintaining, or operating an underlying nonfinancial asset for a period of time in an exchange or exchange-like transaction. The requirements of this Statement are to be effective for financial statements for periods beginning after June 15, 2022. Earlier application is encouraged.
GASB Statement No. 96, Subscription-Based Information Technology Arrangements GASB 96 provides guidance on accounting for Subscription-Based Information Technology Arrangements (SBITA) where the government contracts for the right to use another party’s software. The standards for SBITAs are based on the standards established in GASB Statement No. 87, Leases. GASB 96 is effective for fiscal years beginning after June 15, 2022.
Agenda Packet Page 87 of 401
City of City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2022
GASB Statement No. 99, Omnibus 2022
Omnibus statements are issued by GASB to address practice issues identified after other standards have been approved for implementation. Omnibus statements “clear up the loose ends” for recent prior statements GASB has issued. This Omnibus addresses recent pronouncements, including GASB 87 – Leases, GASB 94 – Public-Private and Public-Public Partnerships and Availability Payment Arrangements, and GASB 96 – Subscription-Based Information Technology Arrangements.
Effective Date: The requirements of this Statement are effective as follows:
• The requirements related to extension of the use of LIBOR, accounting for SNAP distributions, disclosures of nonmonetary 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 are effective upon issuance • The requirements related to leases, PPPs, and SBITAs are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter.
• The requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement 53 are effective for fiscal years beginning after June 15, 2023, and all reporting periods thereafter.
Earlier application is encouraged and is permitted by topic.
GASB Statement No. 100, Accounting Changes and Error Corrections—an amendment of GASB Statement No. 62
This Statement defines accounting changes as changes in accounting principles, changes in accounting estimates, and changes to or within the financial reporting entity and describes the transactions or other events that constitute those changes. This Statement also prescribes the accounting and financial reporting for (1) each type of accounting change and (2) error corrections in previously issued financial statements.
The requirements of this Statement are effective for accounting changes and error corrections made in fiscal years beginning after June 15, 2023, and all reporting periods thereafter. Earlier application is encouraged.
GASB Statement No. 101, Compensated Absences
This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. A liability should be recognized for leave that has not been used if (a) the leave is attributable to services already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. Leave is attributable to services already rendered when an employee has performed the services required to earn the leave. Leave that accumulates is carried forward from the reporting period in which it is earned to a future reporting period during which it may be used for time off or otherwise paid or settled. In estimating the leave that is more likely than not to be used or otherwise paid or settled, a government should consider relevant factors such as employment policies related to compensated absences and historical information about the use or payment of compensated absences. However, leave that is more likely than not to be settled through conversion to defined benefit postemployment benefits should not be included in a liability for compensated absences.
Agenda Packet Page 88 of 401
City of City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2022
This Statement requires that a liability for certain types of compensated absences—including parental leave, military leave, and jury duty leave—not be recognized until the leave commences. This Statement also requires that a liability for specific types of compensated absences not be recognized until the leave is used.
This Statement also establishes guidance for measuring a liability for leave that has not been used, generally using an employee’s pay rate as of the date of the financial statements. A liability for leave that has been used but not yet paid or settled should be measured at the amount of the cash payment or noncash settlement to be made. Certain salary-related payments that are directly and incrementally associated with payments for leave also should be included in the measurement of the liabilities.
With respect to financial statements prepared using the current financial resources measurement focus, this Statement requires that expenditures be recognized for the amount that normally would be liquidated with expendable available financial resources. The requirements of this Statement are effective for fiscal years beginning after December 15, 2023, and all reporting periods thereafter.
NOTE 2 - CASH AND INVESTMENTS
As of June 30, 2022, cash and investments were reported in the financial statements as follows:
Governmental
Activities
Business-Type
Activities Total
Operating cash and investments $ 31,189,989 $ 1,499,207 $ 24,229 $ 32,713,425 Restricted cash held with fiscal agent 1,145,241 574,215 - 1,719,456 Total cash and investments $ 32,335,230 $ 2,073,422 $ 24,229 $ 34,432,881 Government Wide
Statement of Net Position Fiduciary Funds
Statement of Net
Position
Cash and investments consisted of the following as of June 30, 2022:
Deposits:
Cash on hand $ 2,405
Deposits with financial institutions 19,850,869
Total Deposits 19,853,274
Investments:
Local Agency Investment Fund 12,860,151
Total investments 12,860,151
Total City Treasury 32,713,425
Debt service reserves held with fiscal agent 1,719,456
Total cash and investments $ 34,432,881
A. Cash Deposits
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, and places the City ahead of general creditors of the institution.
Agenda Packet Page 89 of 401
City of City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2022
The fair value of pledged securities must equal at least 110 percent of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes that have a value of 150 percent of the City's total cash deposits. The City has waived the collateral requirements for cash deposits which are fully insured to $250,000 by the Federal Deposit Insurance Corporation (FDIC).
The bank balances before reconciling items totaled $19,868,768 at June 30, 2022 and were different from carrying amounts due to deposits in transit and outstanding checks. The amount uninsured was $19,618,768, which was collateralized by securities held by pledging financial institutions. The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents. Interest income earned on pooled cash and investments is allocated 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.
B. Fair Value Measurements
GASB 72 established a hierarchy of inputs to the valuation techniques with three levels:
• Level 1 inputs are quoted prices in active markets for identical assets or liabilities. • Level 2 inputs are quoted market prices for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other than quoted prices that are not observable
• Level 3 inputs are unobservable inputs, such as a property valuation or an appraisal.
The City’s investments were not subject to levelling.
C. Investment Policies
City Investment Policy
Under the provisions of the City's investment policy, and in accordance with California Government Code, the following investments are authorized:
Maximum
Maturity
Maximum
Percentage of
Portfolio
Maximum
Investment in
Portfolio
Maximum
Investment in
One Issuer
CA Local Agency Investment Fund n/a n/a $65,000,000 $65,000,000 U.S. Treasury Bonds, Notes, Bills 5 Years n/a No Limit No Limit U.S. Agency Securities 5 Years n/a No Limit No Limit
Banker's Acceptance 180 Days 30% n/a 30%
Commercial Paper 270 Days 10% n/a 10%
Certificates of Deposit 5 Years 30% n/a 10%
Negotiable Certificates of Deposit 5 Years 30% n/a 10%
Medium Term Corporate Notes 5 Years 10% n/a 10%
Derivative Securities (limited to Federal
Agency callable issues) 5 Years 10% n/a 10%
Money Market Mutual Funds n/a 5% n/a 5%
Authorized Investment Type
Total combined corporate debt (Commercial Paper and Medium-Term Notes) may not exceed 20% of the cost value of the portfolio. The City's investment policy prohibits investments in inverse floaters, range notes, or interest only strips that are derived from a pool of mortgages in accordance with California
Agenda Packet Page 90 of 401
City of City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2022
Government Code Section 53601.6. With the exception of callable Federal Agency securities, any security that derives its value from another asset or index is prohibited. In addition, the City may not invest any funds in any security that could result in zero interest accrual if held to maturity.
The City’s portfolio value fluctuates in an inverse relationship to any change in interest rate. Accordingly, if interest rates rise, the portfolio value will decline. If interest rates fall, the portfolio value will rise. The portfolio for year-end reporting purposes is treated as if it were all sold. Therefore, fund balance must reflect the portfolio’s change in value. These portfolio value changes are unrealized unless sold. Generally the City’s practice is to buy and hold investments until maturity dates. Consequently, the City’s investments are carried at fair value.
Investment of debt proceeds held by bond trustee is governed by provisions of the debt agreements rather than the general provisions of the California Government Code or the City’s investment policy.
D. External Investment Pool
The City's investments with LAIF at June 30, 2022, include a portion of the pooled funds invested in Structured Notes and Asset-Backed Securities. These investments include the following:
Structured Notes
These 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 asset-backed securities are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as CMO's) or credit card receivables.
LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. The approved investments policy is listed on the LAIF website, located at http://www.treasurer.ca.gov/pmia-laif/.
E. Risk Disclosures
Interest Rate Risk
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 term of an investment’s maturity, the greater the sensitivity to changes in market interest rates.
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of an investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. As of June 30, 2022, the City’s investments were in compliance with the ratings required by the City’s investment policy and Government Code.
Agenda Packet Page 91 of 401
City of City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2022
Concentrations of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. As of June 30, 2022, the City had all of its investments with the California Local Agency Investment Fund.
Custodial Credit Risk
For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, 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. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments.
With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government's indirect investment in securities through the use of mutual funds or government investment pools (such as LAIF).
As of June 30, 2022, the City’s investments had the following maturities:
12 Months or
Less Fair Value
Fair Value
Input Levels
Min. Legal
Rating
Local Agency Investment Funds $ 12,860,151 $ 12,860,151 n/a n/a Total Investments $ 12,860,151 $ 12,860,151
Investment Type
NOTE 3 - LOANS RECEIVABLE
Loans receivable consisted of the following as of June 30, 2022:
Loans Interest Balance
Description Receivable Receivabke June 30, 2022
Low/Mod Income Housing Asset Fund:
Ohlone Gardens LP-Low and Moderate Income Housing $ 3,500,000 $ 981,041 $ 4,481,041 Idaho Apartments-Low and Moderate Income Housing 491,154 491,154 - Eden Housing-Low and Moderate Income Housing 299,998 63,298 363,296 Mayfair Affordable Bridge House Loans 300,000 8,500 308,500 Total Low/Mod Income Housing Asset Fund 4,591,152 1,052,839 5,643,991 Nonmajor Governmental Funds: -
Ohlone Gardens LP-City Housing Fund 2,860,000 2,860,000 - Total Governmental Funds $ 7,451,152 $ 1,052,839 $ 8,503,991 Ohlone Gardens, L.P.
In fiscal year 2009, the former Redevelopment Agency entered into a predevelopment, acquisition and construction loan agreement with Ohlone Gardens, L.P. for $3,500,000 to assist with the acquisition and construction of a 57-unit affordable housing development including at least ten special needs units with appropriate supportive services and related office space. The Loan bears simple interest at the rate of 3% per year, beginning with the date of first disbursement and is repayable 55 years from the date of occupancy from residual receipts, as defined in the agreement. The Loan is secured by a deed of trust in the first position on the property. The deed of trust may subsequently be subordinated to other financing as defined in the agreement.
Agenda Packet Page 92 of 401
City of City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2022
Predevelopment activities and acquisition of the site began in fiscal year 2009. With the dissolution of the Redevelopment Agency as discussed in Note 16, the City agreed to become the successor to the Redevelopment Agency's housing activities and as a result the Low and Moderate Income Housing Asset Fund assumed the loans receivable of the Redevelopment Agency's Low and Moderate Income Housing Fund. The developer made the final loan drawdown of $471,152 during fiscal year 2013-14.
In fiscal year 2014, the City entered into an Infill Infrastructure loan agreement with Ohlone Gardens, L.P. for $2,860,000 for the purpose of funding infrastructure work for a 57-unit affordable housing development. The Loan is contingent on the City receiving funding and approval from the California Department of Housing and Community Development Infill Infrastructure Grant Program. The Loan bears no interest and is due in one lump sum the earlier of the fifty-fifth anniversary of the final certificate of occupancy for the project or the fifty-seventh anniversary of the date of the Loan. The Loan is secured by a deed of trust on the property that is subordinated to the 2009 loan above and to the primary construction financing.
Idaho Apartments
The former Redevelopment Agency entered into an Owner Participation Agreement for Idaho Apartments in 1997 in which the Agency agreed to make a loan to the project which included rehabilitation of the deteriorated building. At that time, the developer requested assistance to help repay a loan from a non-profit agency. In August 2000, the non-profit agency loan was replaced by another loan obtained by the developer and the Agreement was amended to reflect that fact as well as reaffirm the Agency's commitment to make a loan of up to $350,000 to repay the developer's other loan when that loan matured in 2008. The Loan bears simple interest at the rate of 2.64% per year, beginning with the date of first disbursement. No payments were due for the first ten and one- half years after the date of occupancy, which ended on December 9, 2009. Subsequent to that date, the loan is repayable from residual receipts, as defined in the Agreement. The Loan is secured by a subordinated deed of trust in the third position on the property. The Agency disbursed $350,000 to the developer during the year ended June 30, 2009. With the dissolution of the Redevelopment Agency, the City agreed to become the successor to the Redevelopment Agency's housing activities and as a result the Low and Moderate Income Housing Asset Fund assumed the loans receivable of the Redevelopment Agency's Low and Moderate Income Housing Fund. The Loan was recast in December 2017 and all previous interest accrued was added to the loan balance.
Eden Housing, Inc.
In May 2011, the former Redevelopment Agency entered into a predevelopment loan agreement with Eden Housing, Inc., for $350,000 to assist with predevelopment costs related to the development of a mixed use affordable housing development at Agency owned property. With the dissolution of the Redevelopment Agency as discussed in Note 15, the City agreed to become the successor to the Redevelopment Agency's housing activities and as a result the Low and Moderate Income Housing Asset Fund assumed the loans receivable of the Redevelopment Agency's Low and Moderate Income Housing Fund. The loan bears simple interest at the rate of 3% per year, beginning with the date of first disbursement and is due and payable upon the second anniversary of the execution date, unless the City and the developer enter into a disposition and development agreement (DDLA). The Loan is secured only by a promissory note, as it is City owned property. Should the developer take title to the subject property, the loan will then be secured by a deed of trust on the property.
In April 2014, the City entered into a DDLA with Eden Housing, Inc., that involves the sale of the property as discussed in Note 1H, as well as a new loan agreement that replaced the original agreement.
In 2017, the City transferred the two parcels to Eden Housing Inc, a nonprofit, and loaned the developer
Agenda Packet Page 93 of 401
City of City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2022
$300,000 to be paid off in 55 years at a rate of 3% from the date of issuance of the certificate of occupancy from residual receipts, as defined in the agreement.
Predevelopment activities began in fiscal year 2011, and the developer has drawn down $299,999 of the loan and $50,001 remains available for drawdown.
Mayfair Affordable Bridge House Loans
On January 1, 2020, The City of El Cerrito entered into a predevelopment, acquisition and construction loan agreement with Mayfair Affordable LLC, for $350,000 to assist with the construction of 67 affordable residential housing units on certain real property located at 11690 El Cerrito Project Area.
The Loan bears simple interest at the rate of 3% per year beginning with the date of first disbursement and is repayable 55 years from the date of issuance of the certificate of occupancy from residual receipts, as defined in the agreement.
NOTE 4 - INTERFUND TRANSACTIONS
Inter-fund Receivables and Payables
Amounts due to or due from other funds reflect inter-fund balances for services rendered or short-term loans expected to be repaid in the next fiscal year. Advances to or from other funds are long-term loans between funds that are to be repaid in their entirety over several years. As of June 30, 2022, inter-fund receivables and payables consisted of the following:
Due from Due to
Fund Other Funds Other Funds
General Fund $ 3,051,028 $ -
Federal, State and Local Grants Fund 3,051,028 -
Total Due from/to $ 3,051,028 $ 3,051,028
Transfers In/Out
With Council approval resources may be transferred from one fund to another. Transfers from the General Fund to the Debt Service Fund were to regular debt service activity of the City. Transfers from the General Fund to other governmental funds were to provide funding to repair and replacement funds and to provide funding for City programs. Transfers made from the Wastewater Enterprise Fund to the Debt Service Funds were to provide for debt service requirements.
The following summarizes transfers between funds during the fiscal year ended June 30, 2022:
Fund Transfer in Transfer out
General Fund $ 3,254,622 $ 580,612
Federal, State and Local Grants Fund 3,051,028 -
Nonmajor Funds 1,326,912 946,223
Integrated Waste Management Enterprise Fund - 3,671
Total Transfers $ 4,581,534 $ 4,581,534
Agenda Packet Page 94 of 401
City of City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2022
NOTE 5 - CAPITAL ASSETS
Capital assets for governmental activities consisted of the following as of June 30, 2022:
Balance Deletions/ Balance
Governmental Activities June 30, 2021 Additions Transfers Adjustments June 30, 2022 Non-depreciable:
Land $ 5,191,639 $ - $ - $ 5,191,639 - $
Construction in Progress 798,017 2,400,690 - 3,198,707 - Total Non-Depreciable 5,989,656 2,400,690 - 8,390,346 - Depreciable and amortizable:
Buildings and improvements 27,408,552 - - 27,408,552 -
Equipment and vehicles 6,694,533 - - 6,694,533 -
Right of use assets:
Equipment and vehicles - - 643,628 - 643,628
Infrastructure 86,769,509 - - 86,769,509 -
Total Depreciable and Amortizable 120,872,594 - 643,628 - 121,516,222 Less Accumulated Depreciation and
Amortization for:
Buildings and improvements (9,806,256) (711,113) - (10,517,369) - Equipment and vehicles (5,824,995) (252,120) - (6,077,115) - Right of use assets amortization:
Equipment and vehicles - (128,726) (386,177) - (514,903) Infrastructure (41,680,687) (2,765,823) - (44,446,510) - Total Accumulated Deprec. And Amort. (57,311,938) (3,857,782) (386,177) - (61,555,897) Total Deprec/Amort Capital Assets - Net 63,560,656 (3,857,782) 257,451 - 59,960,325 Total Governmental Capital Assets $ 69,550,312 $ (1,457,092) $ 257,451 - $ 68,350,671 $ Depreciation and amortization expense for governmental activities:
General government $ 347,199
Public works 2,966,114
Recreation 374,196
Community development 7,974
Public safety 162,299
Total depreciation and amortization expense $ 3,857,782 Capital assets for business-type activities consisted of the following as of June 30, 2022:
Balance Deletions/ Balance
Business Type Activities June 30, 2021 Additions Transfers Adjustments June 30, 2022 Depreciable:
Buildings and improvements 3,495,683 - - 3,495,683 -
Equipment and vehicles 1,597,612 - - 1,597,612 -
Total Depreciable 5,093,295 - - 5,093,295 -
Less Accumulated Depreciation
Buildings and improvements (576,540) (69,503) - (646,043) - Equipment and vehicles (1,257,486) (57,486) - (1,314,972) - Total Accumulated Depreciation (1,834,026) (126,989) - (1,961,015) - Total Depreciable Capital Assets - Net 3,259,269 (126,989) - 3,132,280 - Total Business Type - Capital Assets $ 3,259,269 $ (126,989) $ - $ 3,132,280 - $
Agenda Packet Page 95 of 401
City of City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2022
NOTE 6 - NOTE PAYABLE - TAX ANTICIPATION NOTES
On July 08, 2021, the City issued Series 2021-22 Tax and Revenue Anticipation Notes in the amount of $5,850,00 at a premium of $224,231. The proceeds from the Notes were used to provide funds to meet the City's cash flow needs for its fiscal year ended June 30, 2021. Principal and accrued interest on the Notes are payable when the Notes mature on July 07, 2022. The Notes bear an interest rate of 4%. The liability is due within one year and is recorded in the General Fund.
NOTE 7 - NONCURRENT LIABILITIES
The City's noncurrent liabilities consisted of the following as of June 30, 2022:
Due
Balance Adjustments/ Balance Within One
Governmental Activities June 30, 2021 Additions Deletions June 30, 2022 Year 2017 Lease Revenue Bonds $ 6,180,000 $ - 300,000 $ $ 5,880,000 $ 310,000 2017 Sales Tax Revenue Refunding 7,340,000 - 350,000 6,990,000 360,000 2018 Mobile Modular Lease - GASB 87 - 225,680 111,149 114,531 114,531 Financed Purchases:
2022 Fire Engine - 1,145,242 - 1,145,242 98,351
Solar Photovoltaic 771,761 - 110,000 661,761 113,046
2019 Vehicles 47,775 - 23,285 24,490 24,491
2019 Equipment - Wells Fargo 24,853 - 12,135 12,718 12,718 2019 Vehicles - Dell Financial 112,223 - 35,561 76,662 37,377 2019 Equipment - Wells Fargo 33,678 - 16,454 17,224 17,224 Total Debt 14,510,290 1,370,922 958,584 14,922,628 1,087,738 2017 Lease Revenue Bonds Premium 543,535 - 29,670 513,865 - 2017 Sales Tax Revenue Refunding Premium 1,108,738 - 23,548 1,085,190 - Total Premiums 1,652,273 - 53,218 1,599,055 -
Total Long-Term Debt 16,162,563 1,370,922 1,011,802 16,521,683 1,087,738 Net Pension Liabilities 70,374,424 - 21, 424,034 48,950,390 - Total OPEB Liability 4,887,434 - 4,887,434 - -
Compensated Absences 2,630,077 1,563,251 1,688,812 2,504,516 1,627,935 Total Long-Term Liabilities $ 94,054,498 $ 2,934,173 $ 29,012,082 $ 67,976,589 $ 2,715,673 Due
Balance Balance Within One
Business-Type Activities June 30, 2021 Additions Deletions June 30, 2022 Year 2012 Recycling Facility Revenue Ref. Bonds $ 1,303,000 $ 277,400 - $ $ 1,025,600 $ 284,200 Financed Purchase - Side Loader Trucks 321,429 - 78,859 242,570 81,158 Financed Purchase - Rear Loader - 500,216 - 500,216 76,288 Total Financed Purchases 1,624,429 500,216 356,259 1,768,386 441,646 Compensated Absences 85,792 51,040 62,257 74,575 48,474 Total Long-Term Liabilities $ 1,710,221 $ 551,256 $ 418,516 $ 1,842,961 $ 490,120 A. Governmental Activities
2017 Lease Revenue Refunding Bonds
On May 26, 2017, the City of El Cerrito issued Lease Revenue Refunding Bonds, Series 2017, in the original principal amount of $7,040,000 at 2%-5% interest to provide for the refunding of the City's outstanding 2006 City Hall Lease Revenue Bonds. Principal payments are due annually on September 1, with interest payments payable semi-annually on January 15 and July 15 through January 15, 2036. The economic gain on refunding was $435,000, and the refunding resulting in the recognition of an accounting deferred gain on refunding of $178,732.
Agenda Packet Page 96 of 401
City of City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2022
2017 Sales Tax Revenue Bonds
On January 25, 2017, the City of El Cerrito issued $8,650,000 original principal amount of 2017 Sales Tax Revenue Bonds at 2%-5% interest to provide for the refunding of the City’s outstanding 2008 Sales Tax Revenue Bonds. Principal payments are due annually on May 1, with interest payments payable semi-annually on May 1 and November 1 through May 1, 2036. Street improvement sales tax revenues are pledged for the repayment of these Bonds, until the Bonds mature. If sales tax revenues are insufficient to pay the annual principal and interest payments on the bonds the City has covenanted to use General Fund revenues. For fiscal year 2022, pledged sales tax revenues amounted to 1,809,481 which represented coverage of 256% over the debt service of $706,099. The economic gain on refunding was $525,000, and the refunding resulting in the recognition of an accounting deferred loss on refunding of $514,127.
2018 Mobile Modular Lease - GASB 87
The District leases modular buildings for the El Cerrito Open House Senior Center with annual rent at $116,400 and interest at 3%. The lease was initiated in February of 2018 and ends on June 30, 2023. The initial net present value of the lease was $539,828 with the lease liability as of June 30, 2022 of $114,531.
The related right of use asset reported in capital assets had an original net present value $643,628, including up-front costs of $103,800. The net book value of the right of use asset after accumulated amortization was $128,726 at year end.
Financed Purchase - 2022 Fire Engine Purchase
On April 19, 2022, the City entered into a purchase agreement in the amount of $1,145,241 at 3.34% interest with First Capital Leasing Corp. to finance the purchase a fire engine. Annual principal and interest payments of $136,590 are due each May.
Financed Purchase - Solar Photovoltaic
On December 5, 2012, the City entered into a purchase agreement in the amount of $1,595,300 at 2.75% interest with Green Campus Partners, LLC, to finance the purchase and installation of six solar photovoltaic electricity generation systems at six different sites in the City. Semiannual principal and interest payments of $65,236 are due each December 1 and June 1 through December 1, 2027.
Financed Purchase - 2019 Vehicles
On December 10, 2018, the City entered into vehicle purchase agreement in the amount of $116,120.85 at
4.70% interest with KS State Bank to finance the purchase of two public works and recreation trucks.
Annual principal and interest payments of $22,758.39 are due starting January 15, 2019 through January 15, 2023.
Financed Purchase - 2019 Equipment - Wells Fargo
On July 5, 2019, the City entered into an equipment purchase agreement in the amount of $47,667 at
4.70% interest with Wells Fargo Bank, National Association to finance the purchase of a New 2018 Braun Paratransit Van. Monthly principal and interest payments of $1,087 are due starting 2019 through 2023.
Financed Purchase - 2019 Vehicles - Dell Financial
On August 1, 2019, the City entered into an equipment purchase agreement in the amount of $187,346 at
4.70% interest with Dell Financial services to finance the purchase of a New 2018 Braun Paratransit Van.
Annual principal and interest payments of $22,551.53 are due starting August 1, 2019 through August 1, 2023.
Agenda Packet Page 97 of 401
City of City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2022
Financed Purchase - 2019 Equipment - Wells Fargo
On December 8, 2019, the City entered into an equipment purchase agreement in the amount of $67,426 at 3.24% interest with Wells Fargo Bank, National Association to finance the purchase of a StarCraft Shuttle bus. Annual principal and interest payments of $18,030 are due starting 2020 through 2024.
B. Business-Type Activities
2012 Recycling Facility Revenue Refunding Bonds
On September 19, 2012, the El Cerrito Public Financing Authority issued Recycling Facility Revenue Refunding Bonds in the original principal amount of $3,405,600 at 2.36% interest to provide for the refunding and retirement of the City's outstanding Recycling Center Lease Purchase Agreement and related Site Lease. Principal and interest payments are due quarterly on July 1, October 1, January 1, and April 1, through October 1, 2025. Repayment of these bonds is from charges for services received by the Integrated Waste Management Enterprise Fund.
Financed Purchase - Side Loader Trucks
On January 19, 2018, the City entered into an equipment purchase agreement in the amount of $551,498 at 2.887% interest with Capital One Public Funding, LLC, to finance the purchase of two trash trucks.
Semiannual principal and interest payments of $43,790 are due each July and January 19, through January 19, 2025.
Financed Purchase - Rear Loader Trucks
During the 2021-22 fiscal year, the City entered into an equipment purchase agreement in the amount of $500,216 at 3% interest with Capital One Public Funding, LLC, to finance the purchase of two rear loading trucks. Annual principal and interest payments of $94,006 are due each March through fiscal year 2026.
C. Other Noncurrent Liabilities
Compensated Absences
Compensated absences comprise of unpaid vacation and are accrued as earned. The City’s liability for compensated absences is recorded in various governmental funds only if they have matured. The liability for compensated absences is determined annually. The long-term portion of governmental activities compensated absences is liquidated primarily by the general fund.
Net Pension Liability
See Note 9 for pensions.
Agenda Packet Page 98 of 401
City of City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2022
D. Debt Service Requirements
The following summarizes the City’s debt service requirements:
Year Ending Principal Interest Principal Interest
June 30 Payments Payments Payments Payments
2023 $ 1,087,737 $ 673,713 $ 441,646 $ 46,485
2024 957,095 633,121 461,305 32,156
2025 944,421 597,704 474,470 19,989
2026 986,234 554,891 263,443 8,558
2027 1,043,255 510,120 127,522 3,826
2028-2032 5,318,887 1,828,614 - -
2033-2037 4,585,000 526,000 - -
Total $ 14,922,628 $ 5,324,164 $ 1,768,386 $ 111,014
Governmental Activities Business-Type Activities
NOTE 8 - RISK MANAGEMENT
Municipal Pooling Authority (MPA)
The City is a member of the Municipal Pooling Authority of Northern California. The Authority provides coverage against the following types of loss risks under the terms of a joint-powers agreement with the City and several other cities and governmental agencies as follows:
Type of Coverage Limits
Liability ($5,000) $ 29,000,000
Vehicle - Physical Damage ($3,000 for police vehicles $2,000 for all others) $ 250,000 Worker's Compensation (no deductible) Stat. Limit
Property:
All Risk ($25,000) $ 1,000,000,000
Flood* $ 25,000,000
Boiler & Machinery ($5,000) $ 100,000,000
Cyber Liability ($50,000) $ 2,000,000
Public Entity Pollution Liability ($100,000) $ 1,000,000 Government Crime Policy ($10,000) $ 1,000,000
* $100,000 minimum deductible per occurrence, except Zone A & V which are subject to a $250,000 deductible per occurrence The Authority is governed by a Board consisting of representatives from member municipalities. The Board controls the operations of the MPA, including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on the Board.
The City's deposits with the MPA are in accordance with formulas established by the MPA. Actual surpluses or losses are shared according to a formula developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating. Audited financial statements for the Authority are available from MPA, 1911 San Miguel Drive, Suite 200, Walnut Creek, CA 94596.
Agenda Packet Page 99 of 401
City of City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2022
Equipment
The City has a commercial insurance policy which provides physical loss or damage coverage for four fire vehicles and one training trailer up to a maximum of $2,737,000. The City has a deductible or uninsured liability of $5,000 per claim.
Liability for Uninsured Claims
The City provides for the uninsured portion of claims and judgments, including a provision for claims incurred but not reported when a loss is deemed probable of assertion and the amount of the loss is reasonably determinable.
There were no material unpaid and uninsured claims outstanding at the beginning or end of the last two fiscal years. Settlements have no exceeded insurance in the past three fiscal years.
NOTE 9 - RETIREMENT PLANS
General Information about the Pension Plans
Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency CostSharing Multiple-Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS). The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other.) Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous risk pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68.
Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors three miscellaneous rate plans. Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.
Benefits Provided
CalPERS provides service retirement and disability 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 55 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employee’s Retirement Law. The general fund typically is used to liquidate pension liabilities for governmental funds.
Agenda Packet Page 100 of 401
City of City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2022
The Plans’ provisions and benefits in effect at June 30, 2022, are summarized as follows:
Classic PEPRA Classic PEPRA
Hire date Before 1/1/2012 1/1/2012 Before 1/1/2013 1/1/2013 Benefit formula 2.7% @ 55 2% @ 62 3% @ 50 2.7% @ 57
Benefit vesting schedule 5 Years 5 Years 5 Years 5 Years Benefit payments Monthly for Life Monthly for Life Monthly for Life Monthly for Life Retirement age 50-55 52-67 50 50-57
Monthly benefits as a % of eligible compensation 2% to 2.7% 1% to 2.5% 3% 2% to 2.7% Required employee contribution rates 8.00% 6.75% 9.00% 11.50% Required employer contribution rates 14.02% 7.59% 23.71% 13.13% Miscellaneous Safety
Employees Covered
At June 30, 2022, the following employees were covered by the benefit terms for the Plans:
Miscellaneous Safety Total
Active 104 50 154
Transferred 80 41 121
Separated 93 12 105
Retired 155 134 289
Total 432 237 669
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 1 following notice of a change in the rate. Funding contributions for the Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rates are 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. For the year ended June 30, 2022, the City’s contributions were as follows:
Miscellaneous $ 2,510,701
Safety 5,737,722
Total Employer Contributions $ 8,248,423
Agenda Packet Page 101 of 401
City of City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2022
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2022, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan as follows:
Governmental
Activities
Miscellaneous $ 14,569,087
Safety 34,381,303
Total Net Pension Liability $ 48,950,390
The City’s net pension liability for the Plans is measured as the proportionate share of the net pension liability. The net pension liability of the Plans are measured as of June 30, 2021, and the total pension liability for the Plans used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for the Plans as of June 30, 2021 and 2022 was as follows:
Proportion
June 30, 2021 0.6468%
June 30, 2022 0.9051%
Change in Proportions 0.2583%
For the year ended June 30, 2022, the City recognized pension expense of $19,791,519.
At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
$ 8,248,423 $ -
Changes in assumptions - -
7,507,782 -
220,786 961,082
96,132 666,053
- 33,181,528
$ 16,073,123 $ 34,808,663
the employer’s proportionate share of contributions
Net differences between projected and actual earnings
on plan investments
Total
Change in employer's proportion
Pension contributions subsequent to measurement date
Differences between expected and actual experiences
Net differences between the employer's contributions
The City reported $8,248,423 as deferred outflows of resources related to contributions subsequent to the measurement date that will be recognized as a reduction of the net pension liability in the year ended June 30, 2023.
Agenda Packet Page 102 of 401
City of City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2022
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Fiscal Year Ending:
Net Deferred
Outflows (Inflows)
of Resources
2023 $ (4,742,690)
2024 (5,772,973)
2025 (7,322,422)
2026 (9,145,878)
2027 -
Thereafter -
Total $ (26,983,963)
Actuarial Assumptions
The total pension liabilities in the June 30, 2020 actuarial valuations were determined using the following actuarial assumptions:
Valuation Date June 30, 2020
Measurement Date June 30, 2021
Actuarial Cost Method Entry-Age
Normal Cost
Method
Actuarial Assumptions:
Discount Rate 7.00%
Inflation 2.50%
Payroll Growth 2.75%
Projected Salary Increase (1)
Investment Rate of Return 7.00% (2)
Mortality (3)
(1) Varies by entry age and service
(2) Net of pension plan investment expenses, including inflation (3) Derived using CalPERS' membership data for all funds Discount Rate
The discount rate used to measure the total pension liability was 7.15% for the Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for the Plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets.
Therefore, the current 7.15 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 7.15 percent will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS website.
The long-term expected rate of return on pension plan investments was determined using a building block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
Agenda Packet Page 103 of 401
City of City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2022
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and longterm returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses.
Assumed
Asset Real Return Real Return
Asset Class (a) Allocation Years 1 - 10 (b) Years 11+ (c) Global Equity 50.00% 4.80% 5.98%
Fixed Income 28.00% 1.00% 2.62%
Inflation Sensitive 0.00% 0.77% 1.81%
Private Equity 8.00% 6.30% 7.23%
Real Estate 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
Total 100.00%
(a) In the System's ACFR, Fixed Income is included in Global Debt Securities; Liquidity Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.
(b) An expected inflation of 2.0% used for this period. (c) An expected inflation of 2.92% used for this period.
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability for the Plans, calculated using the discount rate for the Plans, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1- percentage point higher than the current rate:
1% Decrease 6.15%
Net Pension Liability $ 78,947,952
Current Discount Rate 7.15%
Net Pension Liability $ 48,950,390
1% Increase 8.15%
Net Pension Liability $ 24,264,448
Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
Agenda Packet Page 104 of 401
City of City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2022
NOTE 10 - COMMITMENTS AND CONTINGENCIES
Contractor Commitments
As of June 30, 2022, the City had outstanding commitments to contractors totaling $736,420, with an original contract amount of $939,721.
Litigation
The City is subject to certain matters of litigation that may arise in the normal course of conducting City business. City management believes, based upon consultation with legal counsel, that these cases, in the aggregate, are not expected to result in a material adverse financial impact on the City. Additionally, City management believes that the City's insurance programs are sufficient to cover any potential losses should an unfavorable outcome materialize.
Federal and State Grant Programs
The City participates in Federal and State grant programs. These programs are audited by the City's independent accountants if required by and in accordance with the provisions of the Uniform Guidance and applicable State requirements. For Federal programs, the City did not reach the level of qualifying expenditures during the current fiscal year that would require a single audit. Expenditures which may be disallowed, if any, by the granting agencies, cannot be determined at this time. The City expects such amounts, if any, to be immaterial.
Encumbrances
The City uses an encumbrance system as an extension of normal budgetary accounting for governmental funds. Under this system, purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of applicable appropriations.
Encumbrances outstanding at year-end are recorded as restricted, committed or assigned fund balance, depending on the classification of the resources to be used to liquidate the encumbrance, since they do not constitute expenditures or liabilities. Outstanding encumbrances at year-end are automatically reappropriated for the following year. Unencumbered and unexpended appropriations lapse at year end.
Encumbrances outstanding as of June 30, 2022 totaled $1,350,314.
NOTE 11 - REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY
ACTIVITIES
Summary
In an effort to balance its budget, the State of California adopted ABxl 26 on June 28, 2011, amended by AB1484 on June 27, 2012, which suspended all new redevelopment activities as of that date and dissolved redevelopment agencies effective February 1, 2012. In 2011, the City elected to serve as the former El Cerrito Redevelopment Agency’s Successor Agency to manage and wind down the affairs and obligations of the former Redevelopment Agency. Certain housing assets of the Redevelopment Agency were distributed to the City acting as the housing successor. All remaining Redevelopment Agency liabilities, debts and obligations were transferred to the Successor Agency.
In addition, ABxl 26 and AB1484 directed the State Controller to review the activities of all redevelopment agencies and successor agencies to determine whether an asset transfer between an agency and any public agency occurred on or after January 1, 2011. If an asset transfer did occur and the public agency that received the asset is not contractually committed to a third party for the expenditure or encumbrance of the asset, the legislation purports to require the State Controller to order the asset returned to the redevelopment agency. The State Controller's Office completed its asset transfer review
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City of City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2022
of the former Agency and released its final report in July 2014. The final report indicates the former Redevelopment Agency made unallowable transfers to the Municipal Services Corporation in fiscal years 2011 and 2012 totaling $12,550,551, consisting of cash of $2,382,232, land held for redevelopment of $4,634,789 and capital assets of $5,533,530. The City, Successor Agency and Corporation disagreed with the funding of the asset transfer review and maintained that the transactions in question between the former El Cerrito Redevelopment Agency and the Municipal Services Corporation were valid.
The activities of the Successor Agency are reported in the El Cerrito Redevelopment Agency Successor Agency Private-Purpose Trust Fund. The City provides administrative services to the Successor Agency to wind down the affairs of the former Redevelopment Agency. The Successor Agency’s Recognized Obligations Payment Schedule (ROPS) was reviewed until 2018 by a local Oversight Board. The local Oversight Board was dissolved in 2018 and was replaced by a countywide Oversight Board.
Commitments and Contingencies
Cooperation Agreement with the El Cerrito Municipal Services Corporation Prior to dissolution of the El Cerrito Redevelopment Agency, the Agency entered into a Cooperation Agreement with the City that was subsequently assigned to the El Cerrito Municipal Services Corporation (MSC). Under the terms of the Agreement, the Agency transferred to the MSC certain properties and funds to be used for redevelopment purposes and the Agency also agreed to provide funds to the MSC in the future in return for the MSC completing redevelopment activities. The Successor Agency has listed the Cooperation Agreement on its Recognized Obligation Payment Schedule, which have been approved by the Oversight Board. However, no post-dissolution payments have been made since the State Department of Finance has consistently denied that this Cooperation Agreement is an enforceable obligation of the Successor Agency.
State Approval of Enforceable Obligations
The Successor Agency prepares a Recognized Obligation Payment Schedule (ROPS) semi- annually that contains all proposed expenditures for the subsequent six-month period. The ROPS is subject to the review and approval of the Oversight Board as well as the State Department of Finance. Although the State Department of Finance may not question items included on the ROPS in one period, they may question the same items in a future period and disallow associated activities. The amount, if any, of current obligations that may be denied by the State Department of Finance cannot be determined at this time.
State Asset Transfer Review
The State Controller's Office conducted a review of the propriety of asset transfers between the former Redevelopment Agency or the Successor Agency and any public agency that occurred on or after January l, 2011. The State Controller's Office completed its asset transfer review of the former Agency and released its final report in July 2014. The final report indicated the former Redevelopment Agency made unallowable transfers to the Municipal Services Corporation in fiscal years 2011 and 2012 totaling $12,550,551, consisting of cash of $2,382,232, land held for redevelopment of $4,634,789 and capital assets of $5,533,530. These transfers were deemed unallowable by the Department of Finance, disputed by the City, Successor Agency and Corporation, and subject to litigation. In 2015, the Successor Agency received a "finding of completion" from the Department of Finance confirming that the Successor Agency had fulfilled its requirement to pay back the unallowable cash transfers by entering into an Installment Payment Plan thereby entitling the Successor Agency to prepare a Long-Range Property Management Plan (LRPMP) for Oversight Board and DOF approval. Also, in 2015 the Successor Agency prepared the LRPMP which was approved by the DOF directing the properties be transferred
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City of City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2022
back to the City for disposition and development. In fiscal year 2019, consistent with the approved LRPMP, the City entered into a Compensation Agreement with each of the Affected Taxing Entities as required by the approved LRPMP. Per the Compensation Agreement the City sold the Mayfair block and Eastshore block and Potrero properties for development, at Fair Market Value or Fair Reuse Value.
The net proceeds were distributed by the Auditor-Controller to the Taxing Entities in proportion to their shares of the Base Property Tax less any outstanding amount of enforceable obligation related to the properties.
Due Diligence Reviews
AB1484 required the Successor Agency to complete two Due Diligence Reviews (DDR) to determine the amount of the remaining assets that should be transferred by the City to the Successor Agency or by the Successor Agency to the County for distribution to the affected taxing entities.
In April 2013, the State Department of Finance (DOF) completed its review of the DDR of the Low and Moderate Housing Fund's cash balance available for allocation to the affected taxing entities. The DDR indicated the Successor Agency had no unencumbered balances in the Low and Moderate Income Housing Fund for distribution to the affected taxing entities In June 2013, the DOF completed its review of the DDR of all other funds of the former Redevelopment Agency. The DDR indicated there were no assets available for allocation to the affected taxing entities, but that amount was adjusted by the DOF to $1,981,989. In addition, the DOF demanded the City reverse $10,168,319 of property conveyances executed in fiscal year 2012 and a payment of $400,243 of bond proceeds to the Corporation.
The City, Successor Agency and Corporation disputed the adjustments and demand and filed suit against the DOF and the Contra Costa County Auditor Controller challenging the DOF's adjustments to the DDR and other demands. On September 3, 2014, the Court ruled against the City, Successor Agency and Corporation regarding the transfers and the cooperation agreement. The City, Successor Agency and Corporation appealed the decision. Thereafter, as described above, in September 2015, the City, Successor Agency, and DOF entered into an Installment Payment Plan Agreement for the repayment of the OFA DDR amounting to $1,981,989 and the total amount of cash that the DOF claimed was owed was fully paid in 2018.
The Court of Appeals heard oral arguments on January 19, 2021 and subsequently denied the appeal. The City decided not to litigate any further and as a result, the City wrote off the General Fund Advance to the Successor Agency in the amount of $1,321,189.
Long-term Liabilities
The Successor Agency assumed the long-term debt, notes and loans of the Redevelopment Agency as of February 2012.
As of June 30, 2022, the Successor Agency’s long-term liabilities included the following long-term debt:
Due
Balance Balance Within One
Successor Agency Debt June 30, 2021 Additions Deletions June 30, 2022 Year 2016 Revenue Refunding Bond $ 8,979,726 $ 1,909,309 - $ $ 7,070,417 $ 1,957,533
Agenda Packet Page 107 of 401
City of City of El Cerrito
Notes to the Basic Financial Statements
June 30, 2022
2016 Refunding Tax Allocation Bonds
On August 3, 2016, the Successor Agency to the El Cerrito Redevelopment Agency issued Series 2016 Tax Allocation Refunding Bonds in the amount of $12,330,710. The proceeds from the bonds were used to refund the Series 1997A Tax Allocation Refunding Bonds and Series 2004 A and B Tax Allocation Bonds. Bonds issued in the amount of $8,979,727 are tax-exempt. The economic gain on refunding was $83,000, and the deferred amount resulting from the refunding was considered to be immaterial to the financial statements and expensed during the year. Debt service requirements are summarized as follows:
Year Ending Principal Interest
June 30 Payments Payments Total
2023 $ 1,957,533 $ 165,261 $ 2,122,794
2024 2,006,975 115,818 2,122,793
2025 2,057,666 65,127 2,122,793
2026 1,048,243 13,155 1,061,398
Total $ 7,070,417 $ 359,361 $ 7,429,778
NOTE 12 - PRIOR PERIOD ADJUSTMENTS
On January 2, 2021, the City changed the benefit terms of its OPEB plan which removed the City’s implied subsidy requirement. In doing so, the City did not gave a total OPEB liability as of June 30, 2022. The net impact was an increase to beginning net position of $3,699,945 to remove the deferred inflows of resources, deferred outflows of resources and total OPEB liability. The following summarizes all prior period adjustments as of June 30, 2022:
Net Position Fund Balance
Change in accounting policy - GASB 87
Right of use asset at cost $ 643,628 $ -
Right of use asset accum. Amort. (386,177) -
Lease liability (225,681) -
Unavailable revenue:
Interest receivable on loans receivable - 141,155
OPEB:
Deferred outflows of resources (1,356,171) -
Deferred inflows of resources 168,682 -
Total OPEB liability 4,887,434 -
Net Prior Period Adjustment - Net Position $ 3,731,715 $ 141,155
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REQUIRED SUPPLEMENTARY
INFORMATION
Agenda Packet Page 109 of 401
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City of El Cerrito
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
General Fund
For the Year Ended June 30, 2022
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes and assessments $ 26,831,617 26,031,617 $ 32,844,740 $ 6,013,123 $ Licenses and permits 1,136,112 636,112 1,440,972 304,860 Fines and forfeitures 140,000 140,000 152,343 12,343
Intergovernmental 7,808,900 7,312,900 4,844,428 (2,964,472) Use of money and property 353,968 353,968 153,515 (200,453) Charges for Services 5,483,000 4,800,000 7,405,175 1,922,175 Other Revenue 175,000 175,000 183,566 8,566
Total Revenues 41,928,597 39,449,597 47,024,739 5,096,142
EXPENDITURES
Current:
General government 6,193,569 5,623,469 5,958,210 235,359 Public works 2,044,065 1,696,985 1,884,039 160,026
Recreation 4,507,719 4,475,719 4,336,021 171,698
Community development 3,273,257 2,548,257 3,064,072 209,185 Public Safety 25,199,020 24,599,220 24,525,779 673,241
Capital outlay 29,381 157,480 87,588 69,892
Debt service
Principal retirement 131,106 131,106 256,711 (125,605)
Interest and fiscal charges 155,130 155,130 105,417 49,713 Total Expenditures 41,661,346 39,259,267 40,217,837 1,443,509 Excess (Deficiency) of Revenues over Expenditures 190,330 267,251 6,806,902 6,539,651
OTHER FINANCING SOURCES (USES)
Transfers in 952,650 952,650 3,254,622 2,301,972
Transfers out (665,612) (665,612) (580,612) 85,000
Total Other Financing Sources (Uses) 287,038 287,038 2,674,010 2,386,972 Net Change in Fund Balance 554,289 477,368 9,480,912 8,926,623 Fund Balance Beginning 7,143,262 7,143,262 - 7,143,262
Fund Balance Ending $ 7,697,551 7,620,630 $ 16,624,174 $ 8,926,623 $ Annually, the City Manager submits to the City Council a proposed operating budget in June for the following fiscal year, as required by the City's budget ordinance. This budget includes proposed expenditures and the revenues expected to finance them. As modified during public study sessions, the preliminary budget becomes the proposed budget. Public hearings are conducted to obtain taxpayer comments and the budget is legally enacted through passage of a resolution. The City Manager is authorized to transfer budgeted amounts within departments within funds. In addition, amendments that are made to authorize spending of increased or new special purpose revenues may be approved by the City Manager. Budget modifications between funds or increases or decreases to a fund's overall budget must be approved by the City Council. The legal level of budgetary control is at the fund level. Budgets are adopted on a basis consistent with generally accepted accounting principles. Unexpended appropriations lapse at year end and must be reappropriated in the following year. Budgeted amounts are as originally adopted, or as amended by the City Council. Expenditures in excess of appropriations were covered by budgets in other objects/functions or beginning fund balance.
Agenda Packet Page 111 of 401
City of El Cerrito
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
Low/Mod Income Housing Asset Special Revenue Fund
For the Year Ended June 30, 2022
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property $ - - $ 16,887 $ 16,887 $
Other Revenue 164,800 164,800 - (164,800)
Total Revenues 164,800 164,800 16,887 (147,913)
EXPENDITURES
Current:
Community development 207,528 207,528 2,472 205,056
Total Expenditures 207,528 207,528 2,472 205,056
Net Change in Fund Balance (42,728) (42,728) 14,415 57,143 Fund Balance Beginning 5,247,776 5,247,776 5,247,776 -
Prior Period Adjustments - deferred loans 141,155 141,155 141,155 - Fund Balance Beginning, as Adjusted 5,388,931 5,388,931 5,388,931 - Fund Balance Ending $ 5,346,203 $ 5,346,203 $ 5,403,346 $ 57,143
Agenda Packet Page 112 of 401
City of El Cerrito
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
Federal, State and Local Grants Fund
For the Year Ended June 30, 2022
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental $ 545,511 545,511 $ 3,356,745 $ 2,811,234 $ Other Revenue - - 98,495 98,495
Total Revenues 545,511 545,511 3,455,240 2,909,729
EXPENDITURES
Current:
General government - - 1,914 (1,914)
Public works - - 636 (636)
Community development 395,511 395,511 272,831 122,680
Public Safety 153,000 153,000 615 152,385
Total Expenditures 548,511 548,511 275,996 272,515
Excess (Deficiency) of Revenues over Expenditures (3,000) (3,000) 3,179,244 3,182,244
OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out - (3,051,028) - (3,051,028)
Total Other Financing Sources (Uses) - (3,051,028) - (3,051,028) Net Change in Fund Balance (3,000) (3,000) 128,216 131,216 Fund Balance Beginning 124,615 124,615 124,615 -
Fund Balance Ending $ 121,615 121,615 $ 252,831 $ 131,216 $
Agenda Packet Page 113 of 401
City of City of El Cerrito
Schedule of Pension Contributions
June 30, 2022
(Last Ten Years)
2015 2016 2017 2018 2019 2020 2021 2022
Contractually Required Contributions $ 601,837 $ 4,587,279 $ 5,112,607 $ 5,707,962 $ 6,351,717 $ 7,194,477 $ 7,713,430 $ 8,248,423 Contributions in Relation to Actuarially
Determined Contributions 601,837 4,587,279 5,112,607 5,707,962 6,353,342 7,194,477 7,713,430 8,248,423 Contribution Deficiency (Excess) $ - $ - $ - $ - $ (1,625) $ - $ - $ - Covered Payroll $ 14,363,735 $ 14,674,532 $ 15,809,206 $ 16,978,389 $ 17,236,142 $ 17,913,225 $ 16,891,179 $ 16,164,821 Contributions as a Percentage
of Covered Payroll 4.19% 31.26% 32.34% 33.62% 36.86% 40.16% 45.67% 51.03% Notes to Schedule:
Valuation Date: June 30, 2020
Assumptions Used: Entry Age Method used for Actuarial Cost Method Level Percentage of Payroll and Direct Rate Smoothing
3.8 Years Remaining Amortization Period
Inflation Assumed at 2.5%
Investment Rate of Returns set at 7.15%
Fiscal year 2015 was the first year of implementation, therefore only eight years are shown.
The CalPERS discount rate was increased from 7.5% to 7.65% in fiscal year 2016 and then decreased from 7.65% to 7.15% in fiscal year 2018.
The CalPERS mortality assumptions were adjusted in fiscal year 2019.
Fiscal Year
CalPERS mortality table based on CalPERS' experience and
Agenda Packet Page 114 of 401
City of City of El Cerrito
Schedule of Proportionate Share of Net Pension Liability June 30, 2022
(Last Ten Years)
Fiscal Year 2015 2016 2017 2018 2019 2020 2021 2022
Measurement Date 2014 2015 2016 2017 2018 2019 2020 2021 Proportion of Net Pension Liability 0.6318% 0.6701% 0.6338% 0.6229% 0.6419% 0.6425% 0.6468% 0.9051% Proportionate Share of Net Pension Liability $ 39,314,773 $ 45,992,107 $ 54,843,657 $ 61,775,131 $ 61,856,499 $ 65,832,700 $ 70,374,424 $ 48,950,390 Covered Payroll $ 13,945,374 $ 14,363,735 $ 14,674,532 $ 15,809,206 $ 16,978,389 $ 17,236,142 $ 17,913,225 $ 16,891,179 Net Pension Liability
as a % of Covered Payroll 281.92% 320.20% 373.73% 390.75% 364.32% 381.95% 392.86% 289.80% Plan's Fiduciary Net Position as a % of the TPL 79.82% 78.40% 74.06% 73.31% 75.26% 75.26% 75.10% 88.29% Notes to Schedule:
Fiscal year 2015 was the first year of implementation, therefore only eight years are shown.
The CalPERS discount rate was increased from 7.5% to 7.65% in fiscal year 2016 and then decreased from 7.65% to 7.15% in fiscal year 2018.
The CalPERS mortality assumptions were adjusted in fiscal year 2019.
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Agenda Packet Page 116 of 401
SUPPLEMENTARY INFORMATION
Agenda Packet Page 117 of 401
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NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Gas Tax Fund accounts for revenues and expenditures received from the State of California under Street and Highways Code Section 2105, 2106, 2107, and 2107.5. The allocations must be spent for street maintenance and construction and a limited amount for engineering.
National Pollution Discharge Elimination System Fund accounts for storm water utility fees assessed to property owners citywide on their property tax bills. The funds are used to pay for the "National Pollution Discharge Elimination System" mandated by the Federal government to prevent further polluting of our streams and bays.
Landscape and Lighting Assessment Fund accounts for assessments made upon parcels of land within the Lighting and Landscaping Districts and disburses funds in accordance with the provisions of the State of California Streets and Highway Code.
Measure A Parcel Tax Fund accounts for the use of the voter-approved special tax to be used for the swim center and park capital project.
Measure H Parcel Tax Parks and Recreation Facilities Fund accounts for the use of voter-approved special tax for the maintenance and enhancement of parks and recreation facilities including the Swim Center, playgrounds, open space and trails, park amenities, community center and clubhouses.
Asset Seizure Fund accounts for revenues received from sale of assets seized during drug-related arrests and disburses these funds for authorized public safety activities.
Vehicle Abatement Fund accounts for revenues received from Vehicle Code Section 9250.7 to administer and operate the local vehicle abatement program.
Park In Lieu Fund accounts for funds received through negotiations with developers to be used for park improvements. Public Art Fund accounts for fees related to development that is committed to art in public places.
SB-1 Road Repair and Accountability Fund accounts for Senate Bill 1 (SB1) with the aim of repairing roads, improving traffic safety and expanding public transit systems.
Public Art Fund accounts for resources received and used for public art.
Measure J Paratransit Fund accounts for the portion of the half-cent County-wide sales tax levied to fund transportation improvements to local streets.
Municipal Services Corporation Special Revenue Fund accounts for the activities of the El Cerrito Municipal Services Corporation, a nonprofit corporation established to assist the City with public communications and financing of public improvements and later with the elimination of community blight and deterioration within the City.
City Housing Special Revenue Fund accounts for housing-related grants and special revenues, such as developer deposits, that are restricted for affordable housing purposes, but are not activities or assets of the Housing Successor.
Debt Service Fund
Public Financing Authority Debt Service Fund accounts for principal and interest payments on lease revenue bonds issued by the City of El Cerrito Public Financing Authority.
Agenda Packet Page 119 of 401
NONMAJOR GOVERNMENTAL FUNDS
Capital Projects Funds
Measure J Fund accounts for the portion of the half-cent County-wide sales tax levied to fund transportation improvements to local streets.
Storm Drain Fund accounts for assessments collected and funds expended for the maintenance and upgrade of the storm drains.
Street Improvement Fund accounts for the street maintenance and improvement projects funded by the 2008 Sales Tax Revenue Bonds.
Capital Improvements Capital Projects Fund accounts for funds expended on various City capital projects.
Agenda Packet Page 120 of 401
City of El Cerrito
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
National Measure H
Pollution Landscape Measure A Parcel Tax
Gas Discharge and Lighting Parcel Parks & Rec
Tax Elimination Assement Tax Facilities
Fund System Fund Fund Fund Fund
ASSETS
Cash and investments $ 174,646 190,455 $ 203,340 $ 279,677 $ 302,481 $ Due from other governments 48,662 17,153 - - -
Loans receivable - - - - -
Total assets $ 239,117 $ 191,799 $ 203,340 $ 279,677 $ 302,481
LIABILITIES, DEFERRED INFLOWS
AND FUND BALANCES
Liabilities:
Accounts payable $ 22,103 $ 20,162 $ 72,821 -$ 43,647 $ Accrued liabilities 11,423 9,732 10,247 - -
Deposits payable - - - - -
Total liabilities 33,526 29,894 83,068 - 43,647
Fund Balances:
Restricted:
Redevelopment - - - - -
Debt service - - - - -
Street improvements 205,591 - 120,272 - -
Transportation - - - - -
Public safety - police - - - - -
Public safety - vehicle abatement - - - - -
Parks and recreation - - - 279,677 258,834
Storm drains - 161,905 - - -
Public art - - - - -
Housing - - - - -
Unassigned - - - - -
Total fund balances 205,591 161,905 120,272 279,677 258,834 Total liabilities and fund balances $ 191,799 239,117 $ 203,340 $ 279,677 $ 302,481 $ Cont'd
Special Revenue Funds
Agenda Packet Page 121 of 401
City of El Cerrito
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
ASSETS
Cash and investments
Due from other governments
Loans receivable
Total assets
LIABILITIES, DEFERRED INFLOWS
AND FUND BALANCES
Liabilities:
Accounts payable
Accrued liabilities
Deposits payable
Total liabilities
Fund Balances:
Restricted:
Redevelopment
Debt service
Street improvements
Transportation
Public safety - police
Public safety - vehicle abatement
Parks and recreation
Storm drains
Public art
Housing
Unassigned
Total fund balances
Total liabilities and fund balances
$ 410,853 388,041 $ 2 $ 677,126 $ 162,208 $
- - - - 46,911
- - - - -
$ 388,041 $ 410,853 $ 724,037 2 $ $ 162,208
-$ -$ -$ $ 69,323 -$
- - - - -
75,820 - - - -
75,820 - - 69,323 -
- - - - -
- - - - -
- - - 654,714 -
- - - - -
312,221 - - - -
- 410,853 - - -
- - 2 - -
- - - - -
- - - - 162,208
- - - - -
- - - - -
312,221 410,853 654,714 2 162,208
$ 388,041 $ 410,853 $ 724,037 2 $ $ 162,208
Cont'd
Special Revenue Funds
Asset Seizure
Fund
Vehicle
Abatement
Fund
Park In Lieu
Fund
Public Art
Fund
SB1-Road
Repair &
Accountability
Fund
Agenda Packet Page 122 of 401
City of El Cerrito
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
ASSETS
Cash and investments
Due from other governments
Loans receivable
Total assets
LIABILITIES, DEFERRED INFLOWS
AND FUND BALANCES
Liabilities:
Accounts payable
Accrued liabilities
Deposits payable
Total liabilities
Fund Balances:
Restricted:
Redevelopment
Debt service
Street improvements
Transportation
Public safety - police
Public safety - vehicle abatement
Parks and recreation
Storm drains
Public art
Housing
Unassigned
Total fund balances
Total liabilities and fund balances
Debt
Service
Public
Finance
Authority
Fund
$ 34,331 302,761 $ - $ $ 7,727
- - - -
- - 2,860,000 -
$ 34,331 302,761 $ 2,860,000 $ 7,727 $
$ - 151 $ - $ $ -
- 1,905 - -
- - 25,000 -
- 2,056 25,000 -
34,331 - - -
- - - 7,727
- - - -
- 300,705 - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - 2,835,000 -
- - - -
34,331 300,705 2,835,000 7,727
$ 34,331 302,761 $ 2,860,000 $ 7,727 $
Cont'd
Special Revenue Funds
Measure J Paratransit
Fund
Municipal Services
Corp Fund
City Housing Trust
Fund
Agenda Packet Page 123 of 401
City of El Cerrito
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
ASSETS
Cash and investments
Due from other governments
Loans receivable
Total assets
LIABILITIES, DEFERRED INFLOWS
AND FUND BALANCES
Liabilities:
Accounts payable
Accrued liabilities
Deposits payable
Total liabilities
Fund Balances:
Restricted:
Redevelopment
Debt service
Street improvements
Transportation
Public safety - police
Public safety - vehicle abatement
Parks and recreation
Storm drains
Public art
Housing
Unassigned
Total fund balances
Total liabilities and fund balances
Total
Nonmajor
Governmental
Funds
$ 869,824 458,051 $ 2,322,847 $ 31,531 $ 6,815,901 $
- - 164,164 - 276,890
- - - - 2,860,000
$ 869,824 458,051 $ 2,487,011 $ 31,531 $ $ 9,952,791
$ 57,887 11,767 $ 144,276 $ 122,939 $ $ 565,076
17,932 4,063 2,713 - 58,015
- - - - 100,820
75,819 15,830 146,989 122,939 723,911
- - - - 34,331
- - - - 7,727
- - 2,340,022 - 3,320,599
- 442,221 - - 742,926
- - - - 312,221
- - - - 410,853
- - - - 538,513
- 794,005 - - 955,910
- - - - 162,208
- - - - 2,835,000
- - - (91,408) (91,408)
794,005 442,221 2,340,022 (91,408) 9,228,880
$ 869,824 458,051 $ 2,487,011 $ 31,531 $ 9,952,791 $
Concluded
Capital Projects Funds
Street Improvemt
Fund
Capital
Improvement
Measure J Fund Fund
Storm Drain
Fund
Agenda Packet Page 124 of 401
City of El Cerrito
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
National Measure H
Pollution Landscape Measure A Parcel Tax
Gas Discharge and Lighting Parcel Parks & Rec
Tax Elimination Assement Tax Facilities
Fund System Fund Fund Fund Fund
REVENUES
Taxes and assessments -$ -$ 791,164 $ -$ 648,741 $
Fines and penalties - - - - -
Intergovernmental 595,215 307,856 - - -
Use of money and property - - - - -
Charges for services - - - - -
Other Revenue - - 2,100 - -
Total Revenues 595,215 307,856 793,264 - 648,741
EXPENDITURES
Current:
General government - - - - -
Public works 495,725 351,892 725,128 5,220 436,741
Recreation - - 81,492 - 43,973
Community development - - - - -
Capital outlay - - - 38,848 50,000
Debt service:
Principal - - - - -
Interest and fiscal charges - - - - -
Total Expenditures 495,725 351,892 806,620 44,068 530,714 Excess (Deficiency) of Revenues over Expenditures 99,490 (44,036) (13,356) (44,068) 118,027
OTHER FINANCING SOURCES (USES)
Transfers in - - - - -
Transfers out - - - - -
Total Other Financing Sources (Uses) - - - - -
Net Change in Fund Balances 99,490 (44,036) (13,356) (44,068) 118,027 Fund Balances Beginning 106,101 205,941 133,628 323,745 140,807 Fund Balances Ending $ 161,905 205,591 $ 120,272 $ 279,677 $ 258,834 $ Cont'd
Special Revenue Funds
Agenda Packet Page 125 of 401
City of El Cerrito
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
REVENUES
Taxes and assessments
Fines and penalties
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues
EXPENDITURES
Current:
General government
Public works
Recreation
Community development
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
-$ -$ -$ -$ 32,410 $
2,958 - - - -
- 5,812 - - -
- - - 462,824 -
- - - - -
- - - - -
2,958 5,812 - 462,824 32,410
- - - - -
- - - 165,014 -
- - - - -
- - - - 25,040
- - - 409,572 -
- - - - -
- - - - -
- - - 574,586 25,040
2,958 5,812 - (111,762) 7,370
- - - - -
- - - - -
- - - - -
2,958 5,812 - (111,762) 7,370
309,263 405,041 766,476 2 154,838
$ 312,221 $ 410,853 $ 654,714 2 $ $ 162,208
Cont'd
Special Revenue Funds
Asset Seizure
Fund
Vehicle
Abatement
Fund
Park In Lieu
Fund
SB1-Road
Repair &
Accountability
Fund
Public Art
Fund
Agenda Packet Page 126 of 401
City of El Cerrito
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
REVENUES
Taxes and assessments
Fines and penalties
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues
EXPENDITURES
Current:
General government
Public works
Recreation
Community development
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Debt
Service
Public
Finance
Authority
Fund
$ - 178,219 $ - $ - $
- - - -
- - - -
- - - -
- 6,873 - -
- - - -
- 185,092 - -
- - - -
3,599 - - -
- 62,855 - -
3,701 - - -
- - - -
- 51,874 - 650,000
- 4,958 - 632,862
7,300 119,687 - 1,282,862
(7,300) 65,405 - (1,282,862)
- - - 1,286,912
- - - (199,923)
- - - 1,086,989
65,405 (7,300) - (195,873)
235,300 41,631 2,835,000 203,600
$ 34,331 300,705 $ 2,835,000 $ 7,727 $
Cont'd
Special Revenue Funds
Measure J Paratransit
Fund
Municipal Services
Corp Fund
City Housing Trust
Fund
Agenda Packet Page 127 of 401
City of El Cerrito
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
REVENUES
Taxes and assessments
Fines and penalties
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues
EXPENDITURES
Current:
General government
Public works
Recreation
Community development
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Total
Nonmajor
Governmental
Funds
$ 711,134 554,790 $ 1,809,485 $ 117,387 $ $ 4,843,330
- - - - 2,958
- - - 222,644 1,131,527
- - - - 462,824
- 40 - - 6,913
- - 9,802 - 11,902
711,134 554,830 1,819,287 340,031 6,459,454
- - 6,140 - 6,140
458,575 350,061 102,291 3,883 3,098,129
- - - - 188,320
- - - - 28,741
81,077 - 789,317 944,288 2,313,102
- - - - 701,874
- - - - 637,820
539,652 350,061 897,748 948,171 6,974,126
204,769 921,539 171,482 (608,140) (514,672)
- - - 40,000 1,326,912
- (40,000) (706,300) - (946,223)
- (40,000) (706,300) 40,000 380,689
171,482 164,769 215,239 (568,140) (133,983)
622,523 277,452 2,124,783 476,732 9,362,863
$ 794,005 442,221 $ 2,340,022 $ (91,408) $ 9,228,880 $
Concluded
Capital Projects Funds
Measure J Fund
Storm Drain
Fund
Street Improvemt
Fund
Capital
Improvement
Fund
Agenda Packet Page 128 of 401
City of El Cerrito
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes and assessments -$ -$ -$ -$
Fines and penalties - - - -
Intergovernmental 657,700 657,700 595,215 (62,485)
Use of money and property - - - -
Charges for services - - - -
Other Revenue - - - -
Total Revenues 657,700 657,700 595,215 (62,485)
EXPENDITURES
Current:
General government - - - -
Public works 519,694 537,414 495,725 41,689
Recreation - - - -
Community development - - - -
Public safety - - - -
Capital outlay - - - -
Debt service:
Principal - - - -
Interest and fiscal charges - - - -
Total Expenditures 519,694 537,414 495,725 41,689
Excess (Deficiency) of Revenues over Expenditures 138,006 120,286 99,490 (20,796)
OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out - - - -
Total Other Financing Sources (Uses) - - - -
Net Change in Fund Balances 138,006 120,286 99,490 (20,796) Fund Balances Beginning 106,101 106,101 106,101 -
Fund Balances Ending $ 244,107 $ 226,387 $ 205,591 $ (20,796) Cont'd
Budgeted Amounts
Gas Tax Fund
Agenda Packet Page 129 of 401
City of El Cerrito
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
REVENUES
Taxes and assessments
Fines and penalties
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues
EXPENDITURES
Current:
General government
Public works
Recreation
Community development
Public safety
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
-$ -$ -$ -$
- - - -
336,400 336,400 307,856 (28,544)
- - - -
- - - -
- - - -
336,400 336,400 307,856 (28,544)
- - - -
366,804 366,804 351,892 14,912
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
366,804 366,804 351,892 14,912
(30,404) (30,404) (44,036) (13,632)
- - - -
- - - -
- - - -
(30,404) (30,404) (44,036) (13,632)
205,941 205,941 205,941 -
$ 175,537 $ 175,537 $ 161,905 $ (13,632)
Cont'd
Budgeted Amounts
National Pollution Discharge Elimination System Fund
Agenda Packet Page 130 of 401
City of El Cerrito
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
REVENUES
Taxes and assessments
Fines and penalties
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues
EXPENDITURES
Current:
General government
Public works
Recreation
Community development
Public safety
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
795,474$ 795,474$ $ 791,164 $ (4,310)
- - - -
- - - -
- - - -
- - - -
- - 2,100 2,100
795,474 795,474 793,264 (2,210)
- - - -
773,855 773,855 725,128 48,727
68,330 68,330 81,492 (13,162)
- - - -
- - - -
- - - -
- - - -
- - - -
842,185 842,185 806,620 35,565
(46,711) (46,711) (13,356) 33,355
- - - -
- - - -
- - - -
(46,711) (46,711) (13,356) 33,355
133,628 133,628 133,628 -
86,917$ 86,917$ $ 120,272 $ 33,355
Cont'd
Budgeted Amounts
Landscape and Lighting Assement Fund
Agenda Packet Page 131 of 401
City of El Cerrito
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
REVENUES
Taxes and assessments
Fines and penalties
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues
EXPENDITURES
Current:
General government
Public works
Recreation
Community development
Public safety
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
-$ -$ -$ -$
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - 5,220 (5,220)
- - - -
- - - -
- - - -
217,366 217,366 38,848 178,518
- - - -
- - - -
217,366 217,366 44,068 173,298
(217,366) (217,366) (44,068) 173,298
- - - -
- - - -
- - - -
(217,366) (217,366) (44,068) 173,298
323,745 323,745 323,745 -
$ 106,379 106,379$ $ 279,677 $ 173,298
Cont'd
Budgeted Amounts
Measure A Parcel Tax Fund
Agenda Packet Page 132 of 401
City of El Cerrito
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
REVENUES
Taxes and assessments
Fines and penalties
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues
EXPENDITURES
Current:
General government
Public works
Recreation
Community development
Public safety
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
636,948$ 636,948$ $ 648,741 $ 11,793
- - - -
- - - -
- - - -
- - - -
- - - -
636,948 636,948 648,741 11,793
- - - -
239,800 239,800 436,741 (196,941)
272,811 272,811 43,973 228,838
- - - -
- - - -
124,337 212,337 50,000 162,337
- - - -
- - - -
636,948 724,948 530,714 194,234
- (88,000) 118,027 206,027
- - - -
- - - -
- - - -
- (88,000) 118,027 206,027
140,807 140,807 140,807 -
140,807$ 52,807$ $ 258,834 $ 206,027
Cont'd
Budgeted Amounts
Measure H Parcel Tax Parks & Rec Facilities Fund
Agenda Packet Page 133 of 401
City of El Cerrito
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
REVENUES
Taxes and assessments
Fines and penalties
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues
EXPENDITURES
Current:
General government
Public works
Recreation
Community development
Public safety
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
-$ -$ -$ -$
- - 2,958 2,958
- - - -
- - - -
- - - -
- - - -
- - 2,958 2,958
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - 2,958 2,958
- - - -
- - - -
- - - -
- - 2,958 2,958
309,263 309,263 309,263 -
$ 309,263 $ 309,263 $ 312,221 $ 2,958
Cont'd
Budgeted Amounts
Asset Seizure Fund
Agenda Packet Page 134 of 401
City of El Cerrito
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
REVENUES
Taxes and assessments
Fines and penalties
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues
EXPENDITURES
Current:
General government
Public works
Recreation
Community development
Public safety
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
-$ -$ -$ -$
- - - -
30,000 30,000 5,812 (24,188)
- - - -
- - - -
- - - -
30,000 30,000 5,812 (24,188)
- - - -
- - - -
- - - -
- - - -
30,900 30,900 - 30,900
- - - -
- - - -
- - - -
30,900 30,900 - 30,900
(900) (900) 5,812 6,712
- - - -
- - - -
- - - -
(900) (900) 5,812 6,712
405,041 405,041 405,041 -
$ 404,141 $ 404,141 $ 410,853 $ 6,712
Cont'd
Budgeted Amounts
Vehicle Abatement Fund
Agenda Packet Page 135 of 401
City of El Cerrito
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
REVENUES
Taxes and assessments
Fines and penalties
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues
EXPENDITURES
Current:
General government
Public works
Recreation
Community development
Public safety
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
-$ -$ -$ -$
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
2 2 2 -
$ 2 $ 2 $ 2 -$
Cont'd
Budgeted Amounts
Park In Lieu Fund
Agenda Packet Page 136 of 401
City of El Cerrito
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
REVENUES
Taxes and assessments
Fines and penalties
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues
EXPENDITURES
Current:
General government
Public works
Recreation
Community development
Public safety
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
-$ -$ -$ -$
- - - -
- - - -
497,600 497,600 462,824 (34,776)
- - - -
- - - -
497,600 497,600 462,824 (34,776)
- - - -
166,500 199,000 165,014 33,986
- - - -
- - - -
- - - -
450,000 450,000 409,572 40,428
- - - -
- - - -
616,500 649,000 574,586 74,414
(118,900) (151,400) (111,762) 39,638
- - - -
- - - -
- - - -
(118,900) (151,400) (111,762) 39,638
766,476 766,476 766,476 -
$ 647,576 $ 615,076 $ 654,714 $ 39,638
Cont'd
Budgeted Amounts
SB1-Road Repair & Accountability Fund
Agenda Packet Page 137 of 401
City of El Cerrito
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
REVENUES
Taxes and assessments
Fines and penalties
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues
EXPENDITURES
Current:
General government
Public works
Recreation
Community development
Public safety
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
-$ -$ 32,410 $ $ 32,410
- - - -
- - - -
- - - -
- - - -
- - - -
- - 32,410 32,410
- - - -
- - - -
- - - -
100,000 100,000 25,040 74,960
- - - -
- - - -
- - - -
- - - -
100,000 100,000 25,040 74,960
(100,000) (100,000) 7,370 107,370
- - - -
- - - -
- - - -
(100,000) (100,000) 7,370 107,370
154,838 154,838 154,838 -
$ 54,838 $ 54,838 $ 162,208 $ 107,370
Cont'd
Budgeted Amounts
Public Art Fund
Agenda Packet Page 138 of 401
City of El Cerrito
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
REVENUES
Taxes and assessments
Fines and penalties
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues
EXPENDITURES
Current:
General government
Public works
Recreation
Community development
Public safety
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
$ 162,500 162,500 $ 178,219 $ $ 15,719
- - - -
- - - -
- - - -
- - 6,873 6,873
- - - -
162,500 162,500 185,092 22,592
- - - -
- - - -
160,492 160,492 62,855 97,637
- - - -
- - - -
- - - -
- - 51,874 (51,874)
- - 4,958 (4,958)
160,492 160,492 119,687 40,805
2,008 2,008 65,405 63,397
- - - -
- - - -
- - - -
2,008 2,008 65,405 63,397
235,300 235,300 235,300 -
$ 237,308 $ 237,308 $ 300,705 $ 63,397
Cont'd
Budgeted Amounts
Measure J Paratransit Fund
Agenda Packet Page 139 of 401
City of El Cerrito
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
REVENUES
Taxes and assessments
Fines and penalties
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues
EXPENDITURES
Current:
General government
Public works
Recreation
Community development
Public safety
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
-$ -$ -$ -$
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - 3,599 (3,599)
- - - -
- - 3,701 (3,701)
- - - -
- - - -
- - - -
- - - -
- - 7,300 (7,300)
- - (7,300) (7,300)
- - - -
- - - -
- - - -
- - (7,300) (7,300)
41,631 41,631 41,631 -
$ 41,631 $ 41,631 $ 34,331 $ (7,300)
Cont'd
Budgeted Amounts
Municipal Services Corp Fund
Agenda Packet Page 140 of 401
City of El Cerrito
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
REVENUES
Taxes and assessments
Fines and penalties
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues
EXPENDITURES
Current:
General government
Public works
Recreation
Community development
Public safety
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
-$ -$ -$ -$
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
2,835,000 2,835,000 2,835,000 -
$ 2,835,000 $ 2,835,000 $ 2,835,000 -$
Cont'd
City Housing Trust Fund
Budgeted Amounts
Agenda Packet Page 141 of 401
City of El Cerrito
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
REVENUES
Taxes and assessments
Fines and penalties
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues
EXPENDITURES
Current:
General government
Public works
Recreation
Community development
Public safety
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
-$ -$ -$ -$
- - - -
- - - -
151 151 - (151)
- - - -
- - - -
151 151 - (151)
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
654,201 654,201 650,000 4,201
632,862 632,862 632,862 -
1,287,063 1,287,063 1,282,862 4,201
(1,286,912) (1,286,912) (1,282,862) 4,050
1,286,912 1,286,912 1,286,912 -
- - (199,923) (199,923)
1,286,912 1,286,912 1,086,989 (199,923)
- - (195,873) (195,873)
203,600 203,600 203,600 -
$ 203,600 $ 203,600 $ 7,727 $ (195,873)
Cont'd
Public Finance Authority Fund
Agenda Packet Page 142 of 401
City of El Cerrito
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
REVENUES
Taxes and assessments
Fines and penalties
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues
EXPENDITURES
Current:
General government
Public works
Recreation
Community development
Public safety
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
$ 458,500 458,500 $ 554,790 $ $ 96,290
- - - -
- - - -
- - - -
- - 40 40
- - - -
458,500 458,500 554,830 96,330
- - - -
405,887 405,887 350,061 55,826
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
405,887 405,887 350,061 55,826
52,613 52,613 204,769 152,156
- - - -
- - (40,000) (40,000)
- (40,000) - (40,000)
52,613 52,613 164,769 112,156
277,452 277,452 277,452 -
$ 330,065 $ 330,065 $ 442,221 $ 112,156
Cont'd
Measure J Fund
Agenda Packet Page 143 of 401
City of El Cerrito
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
REVENUES
Taxes and assessments
Fines and penalties
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues
EXPENDITURES
Current:
General government
Public works
Recreation
Community development
Public safety
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
$ 706,325 706,325 $ 711,134 $ $ 4,809
- - - -
- - - -
- - - -
- - - -
- - - -
706,325 706,325 711,134 4,809
- - - -
446,113 446,113 458,575 (12,462)
- - - -
- - - -
- - - -
340,000 340,000 81,077 258,923
- - - -
- - - -
786,113 786,113 539,652 246,461
(79,788) (79,788) 171,482 251,270
- - - -
- - - -
- - - -
(79,788) (79,788) 171,482 251,270
622,523 622,523 622,523 -
$ 542,735 $ 542,735 $ 794,005 $ 251,270
Cont'd
Storm Drain Fund
Agenda Packet Page 144 of 401
City of El Cerrito
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
REVENUES
Taxes and assessments
Fines and penalties
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues
EXPENDITURES
Current:
General government
Public works
Recreation
Community development
Public safety
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
$ 1,478,700 1,478,700 $ 1,809,485 $ 330,785 $
- - - -
- - - -
- - - -
- - - -
- - 9,802 9,802
1,478,700 1,478,700 1,819,287 340,587
707,900 707,900 6,140 701,760
116,608 116,608 102,291 14,317
- - - -
- - - -
- - - -
810,000 810,000 789,317 20,683
- - - -
- - - -
1,634,508 1,634,508 897,748 736,760
(155,808) (155,808) 921,539 1,077,347
- - - -
- - (706,300) (706,300)
- - (706,300) (706,300)
(155,808) (155,808) 215,239 371,047
2,124,783 2,124,783 2,124,783 -
$ 1,968,975 $ 1,968,975 $ 2,340,022 $ 371,047
Cont'd
Street Improvemt Fund
Agenda Packet Page 145 of 401
City of El Cerrito
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
REVENUES
Taxes and assessments
Fines and penalties
Intergovernmental
Use of money and property
Charges for services
Other Revenue
Total Revenues
EXPENDITURES
Current:
General government
Public works
Recreation
Community development
Public safety
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
$ 50,000 $ 50,000 $ 117,387 $ 67,387
- - - -
1,804,360 1,804,360 222,644 (1,581,716)
- - - -
- - - -
- - - -
1,854,360 1,854,360 340,031 (1,514,329)
- - - -
- - 3,883 (3,883)
- - - -
- - - -
- - - -
1,990,360 1,990,360 944,288 1,046,072
- - - -
- - - -
1,990,360 1,990,360 948,171 1,042,189
(136,000) (136,000) (608,140) (472,140)
40,000 40,000 40,000 -
- - - -
40,000 40,000 40,000 -
(96,000) (96,000) (568,140) (472,140)
476,732 476,732 476,732 -
$ 380,732 $ 380,732 $ (91,408) $ (472,140)
Concluded
Capital Improvement Fund
Agenda Packet Page 146 of 401
STATISTICAL SECTION
Agenda Packet Page 147 of 401
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Agenda Packet Page 148 of 401
STATISTICAL SECTION
• City Statistics
− City Geographic Information
− Climate
− Population Demographic Information
• Community Facilities
• Operating Indicators
• Financial Statistics
− Net Position
− Fund Balance
− Direct Overlapping Debt
− Taxable Property
− Taxable Sales
Agenda Packet Page 149 of 401
This page is intentionally blank
Agenda Packet Page 150 of 401
City Geographic Information
Current City Area: 3.7 square miles
Current Population: 25,845 (July 1, 2021)
Incorporated: 1917
Elevation: 69 feet
Miles of Streets: 68
Number of Street Lights: 1,618
Number of Traffic Signals: 12
Number of Registered Voters: 17,457 (as of March 2022)
Form of Government: Council/Manager
City Employee/Citizen Ratio: 1:162*
Source: FY 2021-22 Adopted Budget
Agenda Packet Page 151 of 401
Average Annual Rainfall: 19.2”
Average Days of Precipitation: 48 Days
Average Temperature May to October: 52 - 73 degrees Fahrenheit Average Temperature November to April: 48 - 67 degrees Fahrenheit Source: Weatherspark
Climate
Agenda Packet Page 152 of 401
Population Demographics - Economic and Education
Source: HdLCompanies (Notes and Data Sources)
Population: California State Department of Finance. Unemployment Data: California Employment Development Department 2000-2009 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
2010 and later - Income, Age and Education Data - US Census Bureau, most recent American Community Survey Source: U.S. Census Bureau, July 1, 2021
Agenda Packet Page 153 of 401
Population Demographics – Economic and Education
Principal Employers
FY 2020-21*
West Contra Costa Unified School District
Home Depot
City of El Cerrito
Honda of El Cerrito
Prospect Sierra School
Fat Apple’s Restaurant
Ross Dress for Less
Turnabout Shop
Berkeley Country Club
Shields Nursing Center
Trader Joe’s
U.S. Post Office
Romano’s Macaroni Grill
Na�on’s Foods, Inc.
El Cerrito Royale
* Source: Community Development (data not available for FY 2021-22 at time of printing)
Agenda Packet Page 154 of 401
Population Demographics - Age and Ethnicity
Source: U.S. Census Bureau, July 1, 2021
Agenda Packet Page 155 of 401
PopulationDemographics - Housing
Source: U.S. Census Bureau 2021, American Community Survey
Agenda Packet Page 156 of 401
Population Demographics - Households
Source: U.S. Census Bureau 2021, American Community Survey
Agenda Packet Page 157 of 401
Function/ Program 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2020-22 Community Development
Planning
Number of Permits 135 199 122 163 174 187 183 164 160 * Building
Permits Issued 1,572 1,137 1,148 1,164 1,167 1,304 1,263 1,126 1,204 * Annual Inspections 7,445 8,744 9,272 8,824 8,959 8,715 7,918 8,080 6,288 * Public Safety
Fire
Number of Responses 2,973 2,956 3,018 3,326 3,451 3,553 3,516 3,620 3,762 * Police:
Number of Responses 24,753 25,160 33,376 23,855 25,834 26,011 26,810 22,962 24,886 * Recreation
Recreation Administration
Non-Departmental
Drop-In Sales 0 19 23 412 500
POS 1,210 477 360 11 477
Childcare Administration
Participants 1,512 1,482 1,510 1,259 1,351 992 896 568 271 896 Aquatics
Enrollments 4,669 5,003 4,636 4,998 5,008 5,815 6,221 4086 615 6,221 Pass Sales 3,491 3,719 3,439 4,784 3,706 1,457 2,840 2,069 - 2,840 Facility Rentals 416 397 445 437 356 247 298 138 - 298
Drop-In Sales 26,225 30,922 30,367 31,773 34,826 3,112 27,278 21,603 - 27,278 Swim Reservations 48,881
Senior Services
Enrollments 1,417 1,806 1,656 1,496 1,339 1,508 2,214 3173 892 2,214 Facility Rentals 17 ** 45 20 4 32 1 5 49 - 5
Drop-In Sales 20,669 *** 21,993 23,370 22,301 31,209 29,676 24,754 17,914 602 24,754 Adult/Community Services
Enrollments 1,180 1,391 1,393 2,006 2,006 1,946 2,472 2,424 574 2,472 Pass Sales 191 210 174 147 147 101 22 42 - 22
Facility Rentals 3,856 4,224 2,393 2,393 1,384 1,397 1,484 - 1,397 Zumba POS 230 104 21 - 104
Youth Services
Enrollments 7,163 11,538 7,535 4,653 4,696 4,591 12,161 8,429 650 12,161 * Not available at time of printing
** Reports each date a person and/or organization has rented an aquatics facility. *** Now includes daily lunches served at Senior Center (15,458 in FY 13) Source: City Departments (based on information available for each year)
CITY OF EL CERRITO
Operating Indicators by Function/Program
Agenda Packet Page 158 of 401
Community Facilities
City-Owned Facilities & Parks Acres
Arlington Park and Clubhouse 5.2
Baxter Creek Gateway Park 1.4
Bruce King Memorial Dog Park 0.25
Canyon Trail Park, Upper Playfield, and Clubhouse 10.9
Centennial Park 0.6
Cerrito Creek (includes section between Cornell and Talbot) 1 Cerrito Vista Park and Recreation Facility 7.7
Creekside Park 1.5
Community Center & Swim Center 2.8
Dorothy Rosenberg Memorial Park 1.6
Huber Park and Clubhouse (GIS plus easement next to park) 2.9 Ohlone Greenway (El Cerrito Portion) 12
Poinsett Park and Clubhouse 1.1
Portola Clubhouse (Formerly Casa Cerrito Preschool) 0.6 Richmond/Blake Park 0.07
Tassajara Park and Clubhouse 3
Hillside Natural Area 102
Total City Owned Parks & Facilities 154.62
City-Maintained and/or Operated Parks Acres
Castro Park and Clubhouse* (West Contra Costa Unified School District (WCCUSD) 3.5 Central Park (1.5 Richmond/.2 El Cerrito) 1.7
Fairmont Playfield and Clubhouse* (WCCUSD) 0.8
Harding Park and Clubhouse* (WCCUSD) 1.8
Madera Playground and Clubhouse* (WCCUSD) 0.08
Ohlone Greenway (BART Portion) 12
Total City Maintained/Not Owned 19.88
Total City Owned, Maintain & Operated 174.5
Agenda Packet Page 159 of 401
Capital Assets Statistics
Agenda Packet Page 160 of 401
Ten Fiscal Years
Tax 2017 COP Storm Drain 2017 Sales Tax Acquisition/ Total Fiscal Allocation Revenue Revenue Capital Revenue Developer Governmental Year Bonds Bonds Bonds Leases Bonds Notes Activities
2013 (b) 11,321,500 514,500 2,337,160 10,555,000 (b) 24,728,160 2014 (b) 10,788,700 2,133,692 10,290,000 (b) 23,212,392 2015 (b) 10,235,400 1,925,719 10,020,000 (b) 22,181,119 2016 (b) 9,667,200 1,713,138 9,740,000 (b) 21,120,338
2017 (b) 8,259,900 1,495,838 8,650,000 (b) 18,405,738
2018 (b) 7,040,000 1,273,713 8,335,000 (b) 16,648,713 (C) 2019 (b) 6,760,000 1,046,649 8,010,000 (b) 15,816,649 (C) 2020 (b) 6,475,000 1,180,596 7,680,000 (b) 15,335,596 (C) 2021 (b) 6,180,000 990,291 7,340,000 (b) 14,510,291 (C) 2022
Business-Type
Activities
Revenue Total Percentage
Fiscal Capital Refunding Primary of Personal Per
Year Leases Bonds Government Income (a) Capita (a)
2013 732,805 3,296,100 28,757,065 3% 1,210
2014 625,486 3,067,600 26,905,478 3% 1,125
2015 516,248 2,833,400 25,530,767 3% 1,060
2016 405,057 2,593,600 24,118,995 2% 1,000
2017 291,878 2,347,900 21,045,516 2% 843
2018 176,676 2,647,698 19,473,087 1% 790
2019 59,414 1,838,200 17,714,263 1% 696
2020 405,049 1,573,800 17,314,445 1% 694
2021 330,775 1,309,400 16,150,466 1% 647
2022
Note : Debt amounts exclude any premiums, discounts, or other amortization amounts.
Sources: City of El Cerrito
State of California, Department of Finance (population) U.S. Department of commerce, Bureau of the Census (income) (a) See Schedule Demographic Statistics for personal income and population data. (b) Due to the dissolution of Redevelopment Agencies effective February 1, 2012, the Tax Allocation Bonds and the Acquisition/Developer Notes were transferred to the Successor Agency.
(c) Excluding bond premium/discount
Governmental Activities
not available at time of printing
not available at time of printing
Financial Statistics - Ratio of Outstanding Debt by Type
Agenda Packet Page 161 of 401
Financial Statistics - Revenue History Taxable Property Source: HdL Property Tax Review 09/2022
Agenda Packet Page 162 of 401
Owner Secured Unsecured Combined Primary Use &
Parcels Value Parcels Value Value Primary Agency % of
Net AV
% of
Net AV
% of
Net AV
1) 10 $100,920,905 $100,920,905
Commercial
1.98% 1.97%
Successor Agency (Pending Appeals On Parcels)
MCD-RCCA-EL CERRITO LLC
2) 4 $60,659,875 $60,659,875
Residential
1.19% 1.18%
Successor Agency
KMF X EL CERRITO LLC
3) 2 $47,962,536 $47,962,536
Commercial
0.94% 0.94%
Successor Agency (Pending Appeals On Parcels)
EL CERRITO SHOPPING CENTER LLC
4) 2 $39,407,309 $39,407,309
Residential
0.77% 0.77%
Successor Agency
DEL NORTE PLACE APARTMENTS LP
5) 1 $31,008,808 $31,008,808
Residential
0.61% 0.60%
Successor Agency
CREEKSIDE WALK VENTURES LLC
6) 1 $24,677,400 $24,677,400
Commercial
0.48% 0.48%
Successor Agency
SAVE MART PORTFOLIO OWN NLP CALIFORNIA
7) 3 $22,843,373 2 $230,141 $23,073,514
Institutional
0.45% 0.59% 0.45%
El Cerrito General Fund
EAST BAY SIERRA SCHOOL INC
8) 4 $22,733,097 $22,733,097
Commercial
0.45% 0.44%
Successor Agency (Pending Appeals On Parcels)
PEAK DEL NORTE LLC
9) 2 $22,224,981 $22,224,981
Residential
0.44% 0.43%
Successor Agency
SAN PABLO PLAYLAND APARTMENTS
10) 1 $17,728,937 $17,728,937
Residential
0.35% 0.35%
Successor Agency
CIVIC PLAZA RILEY GROUP LLC
Top Ten Total 30 $390,167,221 7.67% 2 $230,141 0.59% $390,397,362 7.61% City Total $5,088,410,955 $38,967,239 $5,127,378,194
Source: HdL Compancies Property Report 09/20/22 based on sales through 06/30/22 (Version r.1) Data Source: Contra Costa County Assessor 2021/22 Combined Tax Rolls and the SBE Non Unitary Tax Roll Financial Statistics - FY 2021-22 Top Ten Property Tax Payers
Agenda Packet Page 163 of 401
ASSESSED VALUE OF TAXABLE PROPERTY
THE CITY OF EL CERRITO
2012/13 - 2021/22 Taxable Property Values
2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 Residential 2,451,655,631 2,592,514,863 2,853,921,468 3,149,020,944 3,371,420,420 3,612,557,338 3,839,646,540 4,062,513,720 4,357,094,856 4,570,742,187 Commercial 306,222,368 317,103,657 321,135,973 357,407,407 380,390,017 399,269,391 420,364,889 437,095,571 424,912,033 441,744,036 Industrial 669,582 1,243,973 1,249,619 1,274,584 1,294,020 1,319,899 2,407,144 2,455,286 3,170,551 3,203,395 Dry Farm 1,150,000 1,495,000 1,610,000 1,700,000
Govt. Owned 461,663 2,590,800
Institutional 19,774,778 13,043,652 10,208,971 3,874,705 3,706,148 3,805,657 4,640,105 11,534,309 34,232,492 32,587,956 Miscellaneous 4,749,013 5,750,929 4,988,308 5,049,233 4,375,989 5,732,820 7,142,290 6,487,051 6,918,646 4,817,768 Recreational 6,769,713 7,921,118 6,459,132 6,371,065 7,575,957 7,506,849 7,638,933 8,717,372 8,816,744 9,775,989 Vacant 20,883,266 20,388,698 24,440,851 24,586,829 21,137,534 21,443,527 21,682,458 25,524,663 25,505,151 23,839,624 Unsecured 37,424,709 40,596,347 41,830,854 41,828,039 40,622,301 37,711,053 39,306,939 43,922,044 42,091,289 38,967,239 Exempt [56,162,496] [52,252,033] [52,287,027] [53,331,648] [56,540,864] [57,667,727] [68,391,888] [67,949,347] [67,185,828] [61,641,583] Unknown 1,307,912 0 0 0 0
TOTALS 2,848,610,723 3,002,461,949 3,264,235,176 3,589,412,806 3,830,522,386 4,089,346,534 4,343,979,298 4,599,745,016 4,904,351,762 5,127,378,194 Total Direct Rate 0.35855 0.22289 0.22708 0.22670 0.22642 0.22619 0.22601 0.22586 0.22562 0.22551 Category
Notes:
Exempt values are not included in Total.
In 1978 the voters of the State of California passed Proposition 13 which limited taxes to a total maximum rate of 1%, based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum of 2%). With few exceptions, property is only reassessed as a result of new construction activity or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.
This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Data Source: Contra Costa County Assessor 2012/13 - 2021/22 Combined Tax Rolls