Agenda Packet — Hayward City Council, February 1, 2022 (part 1 of 3)

Tuesday, February 1, 2022
7:00 PM

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
Virtual: Zoom Platform
City Council
Agenda

February 1, 2022City Council Agenda

SPECIAL JOINT CITY COUNCIL AND PLANNING COMMISSION MEETING COVID-19 Notice: Consistent with Assembly Bill 361/Government Code section 54953(e), the City Council meeting includes teleconference participation by all members.

How to observe the Meeting:

1. Comcast TV Channel 15

2. Live stream https://hayward.legistar.com/Calendar.aspx

3. YouTube Live stream: https://www.youtube.com/user/cityofhayward How to submit written Public Comment:

1. Use eComment on the City's Meeting & Agenda Center webpage at:
https://hayward.legistar.com/Calendar.aspx. eComments are directly sent to the iLegislate application used by City Council and City staff. Comments received before 3:00 p.m. the day of the meeting will be exported into a report, distributed to the City Council and staff, and published on the City's Meeting & Agenda Center under Documents Received After Published Agenda.

2. Send an email to [email protected] by 3:00 p.m. the day of the meeting. Please identify the Agenda Item Number in the subject line of your email. Emails will be compiled into one file, distributed to the City Council and staff, and published on the City's Meeting & Agenda Center under Documents Received After Published Agenda. Documents received after 3:00 p.m. through the adjournment of the meeting will be included as part of the meeting record and published the following day.

How to provide live Public Comment during the City Council Meeting:

Click link below to join the meeting:
https://hayward.zoom.us/j/87906807709?pwd=QVdoQ0pneVlGMzRxZHFvdVlZb1hKUT09 Meeting ID: 879 0680 7709
Passcode: CCm2/1@7pm
or
Dial: +1 669 900 6833 or +1 346 248 7799 or 888 788 0099 (Toll Free) Meeting ID: 879 0680 7709
Password: 6766705975
A Guide to attend virtual meetings is provided at this link: https://bit.ly/3jmaUxa CALL TO ORDER: Mayor Halliday
Pledge of Allegiance: Council Member Salinas

ROLL CALL

CLOSED SESSION ANNOUNCEMENT

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February 1, 2022City Council Agenda

PUBLIC COMMENTS
The Public Comment section provides an opportunity to address the City Council on items not listed on the agenda or Information Items. The Council welcomes your comments and requests that speakers present their remarks in a respectful manner, within established time limits, and focus on issues which directly affect the City or are within the jurisdiction of the City. As the Council is prohibited by State law from discussing items not listed on the agenda, your item will be taken under consideration and may be referred to staff.

CITY MANAGER’S COMMENTS
An oral report from the City Manager on upcoming activities, events, or other items of general interest to Council and the Public.

ACTION ITEMS
The Council will permit comment as each item is called for the Consent Calendar, Public Hearings, and Legislative Business. In the case of the Consent Calendar, a specific item will need to be pulled by a Council Member in order for the Council to discuss the item or to permit public comment on the item. Please notify the City Clerk any time before the Consent Calendar is voted on by Council if you wish to speak on a Consent Item.

CONSENT
Approve the City Council Minutes of the City Council Meeting on January 18, 2022
MIN 22-0131.

Attachments: Attachment I Draft Minutes 1/18/2022
Adopt a Resolution Approving Plans and Specifications, and Calling for Bids for the Municipal Parking Lot No. 1
Improvement Project No. 05286
CONS 22-0472.

Attachments: Attachment I Staff Report
Attachment II Resolution
Attachment III Project Location Map
Adopt a Resolution Authorizing the City Manager to Execute Amendment No. 7 to the Professional Services Agreement with CSG Consultants, Inc., for Private Development Review Services in the Amount of $130,000 for a Total Not-To-Exceed Amount of $1,700,000
CONS 22-0633.

Attachments: Attachment I Staff Report
Attachment II Resolution

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February 1, 2022City Council Agenda
Adopt a Resolution Authorizing the City Manager to Negotiate and Execute an Agreement with Avidex Industries LLC, to Replace End-of-Life Hardware in the Council Chambers and City Hall Conference Room 2A in an Amount Not-to-Exceed of $107,558.83
CONS 22-0804.

Attachments: Attachment I Staff Report
Attachment II Resolution
Adopt a Resolution Accepting and Filing the Annual
Comprehensive Financial Report for the Year Ended June 30, 2021
CONS 22-0705.

Attachments: Attachment I Staff Report
Attachment II Resolution
Attachment III Comprehensive Annual Financial Report
Adopt a Resolution Approving Garbage and Recycling Rates for FY2022-2023
CONS 22-0816.

Attachments: Attachment I Staff Report
Attachment II Resolution
Attachment III Comparison of Garbage & Recycling Rates

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February 1, 2022City Council Agenda

SPECIAL JOINT CITY COUNCIL AND PLANNING COMMISSION WORK SESSION Work Session items are non -action items. Although the Council may discuss or direct staff to follow up on these items, no formal action will be taken. Any formal action will be placed on the agenda at a subsequent meeting in the action sections of the agenda.

Joint Work Session: Density Bonus Ordinance Update and
Residential Objective Standards Project (Report from Assistant City Manager/Development Services Director Ott)
WS 22-0047.

Attachments: Attachment I Density Bonus Staff Report
Attachment II Objective Standards Staff Report
Attachment III Recent Housing and Land Use Legislation
Attachment IV Mintier Harnish Scope of Work

PUBLIC HEARING
Andina Affordable Housing Project TEFRA Hearing: Public Tax and Equity Fiscal Responsibility Act (TEFRA) Hearing as Required by the Internal Revenue Code of 1986, and Adoption of a Resolution Approving the Issuance of Revenue Bonds by the California Municipal Finance Authority in an Amount Not-to-Exceed $45,000,000 to Finance or Refinance the
Acquisition, Rehabilitation, Improvement and Equipping of a Multifamily Rental Housing Project Located at 1180-1182 E Street, Hayward, California (Report from Finance Director Claussen) (Item Continued to February 15, 2022)
PH 22-0038.

COUNCIL REPORTS AND ANNOUNCEMENTS
Council Members can provide oral reports on attendance at intergovernmental agency meetings, conferences, seminars, or other Council events to comply with AB 1234 requirements (reimbursable expenses for official activities).

COUNCIL REFERRALS
Council Members may bring forward a Council Referral Memorandum (Memo) on any topic to be considered by the entire Council. The intent of this Council Referrals section of the agenda is to provide an orderly means through which an individual Council Member can raise an issue for discussion and possible direction by the Council to the appropriate Council Appointed Officers for action by the applicable City staff.

ADJOURNMENT
NEXT MEETING, February 15, 2022, 7:00 PM

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February 1, 2022City Council Agenda

PUBLIC COMMENT RULES
Any members of the public desiring to address the Council shall limit their remarks to three (3) minutes unless less or further time has been granted by the Presiding Officer or in accordance with the section under Public Hearings. The Presiding Officer has the discretion to shorten or lengthen the maximum time members may speak. Speakers will be asked for their name before speaking and are expected to honor the allotted time. Speaker Cards are available from the City Clerk at the meeting.

PLEASE TAKE NOTICE
That if you file a lawsuit challenging any final decision on any public hearing or legislative business item listed in this agenda, the issues in the lawsuit may be limited to the issues that were raised at the City's public hearing or presented in writing to the City Clerk at or before the public hearing.

PLEASE TAKE FURTHER NOTICE
That the City Council adopted Resolution No. 87-181 C.S., which imposes the 90-day deadline set forth in Code of Civil Procedure section 1094.6 for filing of any lawsuit challenging final action on an agenda item which is subject to Code of Civil Procedure section 1094.5. ***Materials related to an item on the agenda submitted to the Council after distribution of the agenda packet are available for public inspection in the City Clerk ’s Office, City Hall, 777 B Street, 4th Floor, Hayward, during normal business hours. An online version of this agenda and staff reports are available on the City ’s website. Written comments submitted to the Council in connection with agenda items will be posted on the City ’s website. All Council Meetings are broadcast simultaneously on the City website, Cable Channel 15 - KHRT, and YouTube. ***
Assistance will be provided to those requiring accommodations for disabilities in compliance with the Americans with Disabilities Act of 1990. Interested persons must request the accommodation at least 48 hours in advance of the meeting by contacting the City Clerk at (510) 583-4400, cityclerk@hayward -ca.gov, or TDD (510) 247-3340.

Assistance will be provided to those requiring language assistance. To ensure that interpreters are available at the meeting, interested persons must request the accommodation at least 48 hours in advance of the meeting by contacting the City Clerk at (510) 583-4400.

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CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: MIN 22-013
DATE: February 1, 2022
TO: Mayor and City Council
FROM: City Clerk

SUBJECT
Approve the City Council Minutes of the City Council Meeting on January 18, 2022

RECOMMENDATION
That the Council approves the City Council meeting minutes of January 18, 2022.

SUMMARY
The City Council held a meeting on January 18, 2022.

ATTACHMENTS
Attachment I Draft Minutes of January 18, 2022
CITY OF HAYWARD Printed on 1/27/2022Page 1 of 1
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SPECIAL HAYWARD GEOLOGIC HAZARD ABATEMENT DISTRICT BOARD

AND HAYWARD CITY COUNCIL MEETING
777 B Street, Hayward, CA 94541
Virtual Platform – Zoom
https://hayward.zoom.us/j/82499367832?pwd=ZmdwMHZYb0N0eVJURHB6ZkIyNkFtQT09 Tuesday, January 18, 2022, 7:00 p.m.

The concurrent meeting of the Hayward Geologic Hazard Abatement District (GHAD) Board and Hayward City Council was called to order by Mayor/Chair Halliday at 7:06 p.m. The City Council/ GHAD Board held a virtual meeting with teleconference participation by members of the City Council, staff and public.

Pledge of Allegiance: Mayor/GHAD Board Chair Halliday

ROLL CALL

Present: COUNCIL MEMBERS/BOARD MEMBERS Andrews, Lamnin, Márquez, Salinas, Wahab, Zermeño
MAYOR/CHAIR Halliday

Absent: None

Members convened as the Geologic Hazard Abatement District (GHAD) Board, adjourned the GHAD meeting at 7:12 p.m., and reconvened into the meeting of the City Council.

CLOSED SESSION ANNOUNCEMENT

City Attorney Lawson noted that since the City Council did not discuss all items in Closed Session and was planning to continue discussion after the regular meeting, the public report of any action taken in Closed Session for December 20, 2021, and January 18, 2022, meetings would occur at the January 25, 2022, City Council meeting.

PUBLIC COMMENTS

There were none.

CITY MANAGER’S COMMENTS

City Manager McAdoo made two announcements: 1) the federal government launched its free COVID-19 test distribution program, offering four free at-home COVID-19 tests per household, and residents who had purchased tests at their own expense, could be reimbursed by their health insurance provider, and COVIDtests.gov provided more information; and 2) City Council meetings will be held online only for the month of January and the decision would be re- evaluated at the end of the month.

CONSENT

Council Member Andrews commented on Consent Items 12 and 13.

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1. Approve City Council Minutes of the City Council Meeting on December 7, 2021 MIN 22- 001
It was moved by Council Member Zermeño, seconded by Council Member Andrews, and carried unanimously, to approve the minutes of the City Council meeting on December 7, 2021.

2. Approve City Council Minutes of the Special City Council Meeting on December 14, 2021 MIN 22-002
It was moved by Council Member Zermeño, seconded by Council Member Andrews, and carried unanimously, to approve the minutes of the Special City Council meeting on December 14, 2021.

3. Adopt a Resolution Accepting Resignation of Ms. Varsha Chauhan from the Community Services Commission CONS 22-039

Staff report submitted by City Clerk Lens, dated January 18, 2022, was filed.

It was moved by Council Member Zermeño, seconded by Council Member Andrews, and carried by the following roll call vote, to adopt the resolution.

AYES: COUNCIL MEMBERS Andrews, Lamnin, Márquez, Salinas, Wahab, Zermeño
MAYOR Halliday
NOES: None
ABSENT: None
ABSTAIN: None

Resolution 22-001, “Resolution Accepting the Resignation of Ms.

Varsha Chauhan from the Community Services Commission”

4. Adopt a Resolution Appointing Ms. Hazel De Leon to the Community Services Commission to Fulfill to Unexpired Term of Ms. Varsha Chauhan CONS 22-040

Staff report submitted by City Clerk Lens, dated January 18, 2022, was filed.

It was moved by Council Member Zermeño, seconded by Council Member Andrews, and carried by the following roll call vote, to adopt the resolution.

AYES: COUNCIL MEMBERS Andrews, Lamnin, Márquez, Salinas, Wahab, Zermeño
MAYOR Halliday
NOES: None
ABSENT: None
ABSTAIN: None

SPECIAL HAYWARD GEOLOGIC HAZARD ABATEMENT DISTRICT BOARD

Resolution 22-002 “Resolution Appointing Ms. Hazel De Leon to the Community Services Commission to Fulfill the Unexpired Term of Ms. Varsha Chauhan”

5. Adopt a Resolution Allowing the City Council and Appointed Commissions/Task Forces and Council Committees to Hold Continued Teleconference Public Meetings Pursuant to Assembly Bill 361 CONS 22-044

Staff report submitted by City Manager McAdoo and City Clerk Lens, dated January 18, 2022, was filed.

It was moved by Council Member Zermeño, seconded by Council Member Andrews, and carried by the following roll call vote, to adopt the resolution.

AYES: COUNCIL MEMBERS Andrews, Lamnin, Márquez, Salinas, Wahab, Zermeño
MAYOR Halliday
NOES: None
ABSENT: None
ABSTAIN: None

Resolution 22-003, “ Resolution Making the Required Findings Pursuant to AB 361 to Continue to Hold Teleconferenced Public Meetings During the COVID 19 State of Emergency”

6. Adopt a Resolution Authorizing the City Manager to Accept and Appropriate $242,865 in Grant Funding from the Federal Emergency Management Agency for the Creation of Defensible Space in the Hayward Hills Project CONS 22-001

Staff report submitted by Fire Chief Contreras, dated January 18, 2022, was filed.

It was moved by Council Member Zermeño, seconded by Council Member Andrews, and carried by the following roll call vote, to adopt the resolution.

AYES: COUNCIL MEMBERS Andrews, Lamnin, Márquez, Salinas, Wahab, Zermeño
MAYOR Halliday
NOES: None
ABSENT: None
ABSTAIN: None

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Resolution 2 2-004, “ Adopt a Resolution Authorizing the City Manager to Accept and Appropriate $242,865 in Grant Fund ing from the Federal Emergency Management Agency for the
Creation of Defensible Space in Hayward Hills Project”

7. Adopt a Resolution Authorizing the City Manager to Execute Amendment No. 1 to the Professional Services Agreement with Hydro Science Engineers, Inc., Increasing Project Design and Engineering Services for the Sewer and Water Line Improvements Project by $175,000, for a Total Not-to-Exceed Contract Amount of $1,642,865 CONS 22-010

Staff report submitted by Director of Public Works Ameri, dated January 18, 2022, was filed.

It was moved by Council Member Zermeño, seconded by Council Member Andrews, and carried by the following roll call vote, to adopt the resolution.

AYES: COUNCIL MEMBERS Andrews, Lamnin, Márquez, Salinas, Wahab, Zermeño
MAYOR Halliday
NOES: None
ABSENT: None
ABSTAIN: None

Resolution 22-005, “Resolution Authorizing the City Manager to Execute Amendment No. 1 to the Professional Services
Agreement with HydroScience Engineers, Inc. in an Amount of $175,000, for Project Design and Engineering Services for the Sewer and Water Line Improvements Projects for a Total Not to Exceed Amount of $1,642,865”

8. Adopt a Resolution Authorizing the City Manager to Execute an Amendment to the Professional Services Agreement for Materials Testing and Special Inspection Services with Consolidated Engineering Labo ratories for the Fire Station 6 and Fire Training Center Project by $450,000 for a Not-to-Exceed Amount of $1,125,000 CONS 22-017

Staff report submitted by Director of Public Works Ameri, dated January 18, 2022, was filed.

It was moved by Council Member Zermeño, seconded by Council Member Andrews, and carried by the following roll call vote, to adopt the resolution.

AYES: COUNCIL MEMBERS Andrews, Lamnin, Márquez, Salinas, Wahab, Zermeño
MAYOR Halliday
NOES: None
ABSENT: None
ABSTAIN: None

SPECIAL HAYWARD GEOLOGIC HAZARD ABATEMENT DISTRICT BOARD

Resolution 22-006, “Resolution Authorizing the City Manager to Execute an Amendment to the Professional Services Agreement with Consolidated Engineering Laboratories for Additional Services Associated with the Fire Station 6 and Fire Training Center Improvement Project”

9. Adopt a Resolution Authorizing the Sole Source Purchase of Specialized Laboratory Equipment for Use at the Water and Wastewater Laboratory at the Water Pollution Control Facility in an Amount Not-to-Exceed $90,000 CONS 22-018

Staff report submitted by Director of Public Works Ameri, dated January 18, 2022, was filed.

It was moved by Council Member Zermeño, seconded by Council Member Andrews, and carried by the following roll call vote, to adopt the resolution.

AYES: COUNCIL MEMBERS Andrews, Lamnin, Márquez, Salinas, Wahab, Zermeño
MAYOR Halliday
NOES: None
ABSENT: None
ABSTAIN: None

Resolution 22-007, “Resolution Authorizing the City Manager to Execute a Sole Source Purchase of Specialized Laborator y Equipment from Thermo Electron North America, LLC for Use at the Water and Wastewater Laboratory at the Water Pollution Control Facility in an Amount Not-to-Exceed $90,000”

10. Adopt a Resolution Authorizing the City Manager to Negotiate and Execute a Cooperative Procurement Contract with Dell Technologies for Microsoft Software, Subscriptions, and Services for a Three -Year Contract in an Amount Not -to-Exceed $328,114.40 Annually, for a Total Contract Amount of $984,343.21 CONS 22-024

Staff report submitted by CIO/Director of Information
Technology Kostrzak, dated January 18, 2022, was filed.

It was moved by Council Member Zermeño, seconded by Council Member Andrews, and carried by the following roll call vote, to adopt the resolution.

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AYES: COUNCIL MEMBERS Andrews, Lamnin, Márquez, Salinas, Wahab, Zermeño
MAYOR Halliday
NOES: None
ABSENT: None
ABSTAIN: None

Resolution 2 2-008, “ Resolution of the Council of the City of Hayward to Execute a Cooperative Procurement Contract with Dell Technologies for Microsoft Software, Subscriptions, and Services”

11. Adopt a Resolution Authorizing the City Manager to Accept and Appropriate $238,130.94 from the Federal Communications Commission Emergency Connectivity Fund to Purchase Eligible Equipment and Services CONS 22-033

Staff report submitted by Director of Library Services Addleman, dated January 18, 2022, was filed.

It was moved by Council Member Zermeño, seconded by Council Member Andrews, and carried by the following roll call vote, to adopt the resolution.

AYES: COUNCIL MEMBERS Andrews, Lamnin, Márquez, Salinas, Wahab, Zermeño
MAYOR Halliday
NOES: None
ABSENT: None
ABSTAIN: None

Resolution 22-009, “Resolution Authorizing the City Manager to Accept and Appropriate $238,130.94 from the Federal
Communications Commission (FCC) Emergency Connectivity
Fund (ECF) to Purchase Eligible Equipment and Services”

12. Adopt a Resolution Authorizing the City Manager to Accept and Appropriate $ 15,000 from the Kaiser Foundation Health Plan, Inc. to Support the Purchase of a Lactation Pod for the Downtown Library CONS 22-034

Staff report submitted by Director of Library Services Addleman, dated January 18, 2022, was filed.

Council Member Andrews thanked Kaiser for funding toward the purchase of a lactation pod and encouraged staff to consider similar spaces and family rooms for future projects and consider requesting changing tables for babies in men’s rooms.

It was moved by Council Member Zermeño, seconded by Council Member Andrews, and carried by the following roll call vote, to adopt the resolution.

SPECIAL HAYWARD GEOLOGIC HAZARD ABATEMENT DISTRICT BOARD

AYES: COUNCIL MEMBERS Andrews, Lamnin, Márquez, Salinas, Wahab, Zermeño
MAYOR Halliday
NOES: None
ABSENT: None
ABSTAIN: None

Resolution 22-010, “Resolution Authorizing the City Manager to Accept and Appropriate $15,000 from the Kaiser Foundati on Health Plan Inc. to Support the Purchase of a Lactation Pod for the Downtown Library”

13. Adopt Two Resolutions: 1) Authorizing the City Manager to Continue Exclusive Negotiations with Waste Management of Alameda County for a New Solid Waste and Recycling Franchise Agreement until June 30, 2022; and 2) Authorizing the City Manager to Extend the Current Franchise Agreement with Waste Management of Alameda County by One Year to Expire February 28, 2023 CONS 22-021

Staff report submitted by Director of Public Works Ameri, dated January 18, 2022, was filed.

Council Member Andrews hoped that trash receptacles could include public art to deter graffiti and staff could work with partners to incorporate more public art throughout Hayward.

It was moved by Council Member Zermeño, seconded by Council Member Andrews, and carried by the following roll call vote, to adopt two resolutions.

AYES: COUNCIL MEMBERS Andrews, Lamnin, Márquez, Salinas, Wahab, Zermeño
MAYOR Halliday
NOES: None
ABSENT: None
ABSTAIN: None

Resolution 2 2-011, “ Resolution Finding and Determining the Need to Extend the Franchise Agreement Between the City of Hayward and Waste Management of Alameda County for Solid Waste, Recyclable Materials, and Organics Material Services for one 12-Month Period Ending February 28, 2023”

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Resolution 22-012, “Resolution Authorizing the City Manager to Continue Exclusive Negotiations with Waste Management of Alameda County to Extend the Solid Waste and Recycling
Franchise Agreement”

14. Adopt a Resolution: 1) Authorizing the City Manager to Accept and Appropriate $5,236 in Private Community Donations for the Hayward Navigation Center; and 2) Amend the Professional Services Agreement with Bay Area Community Services t o Increase the Hayward Navigation Center Contract Amount by $5,236 for a Not-to-Exceed Amount of $2,453,356 to Provide Additional Flexible Funds for Hayward Navigation Center Residents CONS 22-038

Staff report submitted by City Manager McAdoo, dated January 18, 2022, was filed.

It was moved by Council Member Zermeño, seconded by Council Member Andrews, and carried by the following roll call vote, to adopt the resolution.

AYES: COUNCIL MEMBERS Andrews, Lamnin, Márquez, Salinas, Wahab, Zermeño
MAYOR Halliday
NOES: None
ABSENT: None
ABSTAIN: None

Resolution 22-013, “Resolution Authorizing the City Manager to Accept and Appropriate $5,236 in Private Community Donations for the Hayward Navigation Center and Amend the Professional Services Agreement with Bay Area Community Services to
Increase the Hayward Navigation Center Contract Amount by $5,236 for a Not-To-Exceed Amount of $2,453,356”

15. Adopt a Resolution Approving Plans and Specifications and Calling for Bids for t he Safe Routes for Seniors Project CONS 22-022

Staff report submitted by Director of Public Works Ameri, dated January 18, 2022, was filed.

It was moved by Council Member Zermeño, seconded by Council Member Andrews, and carried by the following roll call vote, to adopt the resolution.

AYES: COUNCIL MEMBERS Andrews, Lamnin, Márquez, Salinas, Wahab, Zermeño
MAYOR Halliday
NOES: None
ABSENT: None
ABSTAIN: None

SPECIAL HAYWARD GEOLOGIC HAZARD ABATEMENT DISTRICT BOARD

Resolution 22-014, “Resolution Approving Plans and Specifications and Call for Bids for the Safe Routes for Seniors Project”

16. Adopt a Resolution Rejecting All Bids, Approving Addendum No. 1 and Revised Plans and Specifications, and Calling for Bids for the Mission Boulevard Linear Park Project, Project No. 05288 CONS 22-016

Staff report submitted by Director of Public Works Ameri, dated January 18, 2022, was filed.

It was moved by Council Member Zermeño, seconded by Council Member Andrews, and carried by the following roll call vote, to adopt the resolution.

AYES: COUNCIL MEMBERS Andrews, Lamnin, Márquez, Salinas, Wahab, Zermeño
MAYOR Halliday
NOES: None
ABSENT: None
ABSTAIN: None

Resolution 22-015, “ Resolution Rejecting All Bids, Approval of Addendum No. 1 and Revised Plans and Specifications, and Calling for Bids for the Mission Boulevard Linear Park Project, Project No. 05288”

17. Adopt a Resolution Opposing the California Public Utilities Commission’s Proposed Decision Threatening Net Energy Metering and Supporting a Net Energy Metering Policy that Continues the Growth of Local and Rooftop Solar CONS 22-048

Staff report submitted by Director of Public Works Ameri, dated January 18, 2022, was filed.

It was moved by Council Member Zermeño, seconded by Council Member Andrews, and carried by the following roll call vote, to adopt the resolution.

AYES: COUNCIL MEMBERS Andrews, Lamnin, Márquez, Salinas, Wahab, Zermeño
MAYOR Halliday
NOES: None
ABSENT: None
ABSTAIN: None

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Resolution 22-016, “Resolution in Opposition to the Net Energy Metering 3.0 Proposed Decision and in Support of a Net Energy Metering Policy that Continues the Growth of Local and Rooftop Solar”

18. Adopt a Resolution Approving the Memorandum of Understanding Between the City of Hayward and the Hayward Association of Management Employees and Authorizing Staff to Execute the Agreement CONS 22-049

Staff report submitted by Director of Human Resources Sangy, dated January 18, 2022, was filed.

It was moved by Council Member Zermeño, seconded by Council Member Andrews, and carried by the following roll call vote, to adopt the resolution.

AYES: COUNCIL MEMBERS Andrews, Lamnin, Márquez, Salinas, Wahab, Zermeño
MAYOR Halliday
NOES: None
ABSENT: None
ABSTAIN: None

Resolution 2 2-017, “ Resolution Approving the Successor Memorandum of Understanding Between the City of Hayward and Hayward Association of Management Employees and
Authorizing the City Manager to Execute the Agreement”

19. Adopt a Resolution Approving the Memorandum of Understanding Between the City of Hayward and the Service Employees International Union, Local 1021 and Authorizing Staff to Execute the Agreement CONS 22-050

Staff report submitted by Director of Human Resources Sangy , dated January 18, 2022, was filed.

It was moved by Council Member Zermeño, seconded by Council Member Andrews, and carried by the following roll call vote, to adopt the resolution.

AYES: COUNCIL MEMBERS Andrews, Lamnin, Márquez, Salinas, Wahab, Zermeño
MAYOR Halliday
NOES: None
ABSENT: None
ABSTAIN: None

SPECIAL HAYWARD GEOLOGIC HAZARD ABATEMENT DISTRICT BOARD

Resolution 2 2-018, “ Resolution Approving the Successor Memorandum of Understanding Between the City of Hayward and the Service Employees International Union, Local 1021 and Authorizing the City Manager to Execute the Agreement”

20. Adopt a Resolution Approving Annexation of the Hayward SoMi (Tracts 8502 and 8614) into the Hayward Geologic Hazard Abatement District CONS 22-053

Staff report submitted by GHAD Manager Harrell and GHAD Attorney Morrison, dated January 18, 2022, was filed.

It was moved by Council Member Zermeño, seconded by Council Member Andrews, and carried by the following roll call vote, to adopt the resolution.

AYES: COUNCIL MEMBERS Andrews, Lamnin, Márquez, Salinas, Wahab, Zermeño
MAYOR Halliday
NOES: None
ABSENT: None
ABSTAIN: None

Resolution 22-019, “Resolution Approving the Annexation of the Hayward SOMI Development into the Hayward Geologic Hazard Abatement District”

PUBLIC HEARING

21. Appeal of Planning Commission Denial to Develop a New Approximately 116,844 Square Foot Industrial Building for U -Haul at 4150 Point Eden Way (Assessor Parcel Number 461-0085-020-02) Requiring Approval of Site Plan Review and Historic Resources Demolition Permit Application No. 201901039 Includi ng Certification of an Environmental Impact Report, Adoption of a Statement of Overriding Considerations, and Approval of a Mitigation, Monitoring and reporting Program. Jerry Owen on Behalf of U -Haul; Amerco Real Estate Co. (Applicant/Property Owner) ***Item Continued to 2/15/22 at the Request of Applicant*** PH 22-001

Mayor Halliday announced the public hearing was continued to the February 15, 2022, City Council meeting at the request of the applicant.

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LEGISLATIVE BUSNESS

22. Legislative Program: Adopt a Resolution Updating the City of Hay ward’s Legislative Program LB 21-053

Staff report submitted by City Manager McAdoo, dated January 18, 2022, was filed.

City Manager McAdoo introduced Management Analyst James who provided a synopsis of the staff report.

Discussion ensued among members of the City Council and City staff regarding: the dedicated webpage for the Legislative Program which is found under the “Your Government – Legislative Program” section; the practice for the Mayor to submit a letter of support or opposition to a piece of legislation involves vetting by City staff to ensure it fits the City’s approved legislative priorities, staff could also initiate a letter based on the City’s lobbyist, and if not consistent with Council policy/direction, the item would be agendized for Council action; the practice for supporting ballot measures involves bringing it to Council for action and resolution; clarification about the process for submitting letters could be included in the Council Member Handbook under the Hayward Legislative Program section; in subsections C, D, and E of Section

1.9 Voting Rights, the City’s position would be taken by ballot in itiatives as opposed to legislation; and a process for incorporating comments when the Council may be divided on a particular legislation which might involve staff sending a draft letter to Council and allowing 48 hours to review or a member submitting a separate letter to highlight areas of concern.

There being no public comments, Mayor Halliday opened and closed the public comment section at 8:44 p.m.

Council Member Wahab indicated she understood the time sensitivity when sending urgent letters to legislators but appreciated the opportunity for members of the Council to review letters prior to sending them to ensure they include language/terms agreed upon by Council.

Council Member Lamnin made a motion, with two language recommendations: 1) amend Section 1.6 (E) as follows: “Support legislation… entities that provide vocational and supportive services and housing for people who are homeless, seniors, veterans and others with special needs.”; and 2) amend Section 1.9 (A) to read as follows, “ Support legislation… voting accessibility for voters who are elderly and/or have disabilities.”

Council Member Zermeño seconded the motion. In response to his suggestion to clarify the difference between a resolution and proclamation within the document, City Manager McAdoo indicated the Council Member Handbook addressed the different types of recognitions.

Council Member Andrews asked staff to ensure the terms used in the document were appropriate, for example the term “unhoused” v. “homeless.”

In response to Mayor Halliday’s inquiry, Ms. James confirmed t he Legislative Program was reviewed by members of the Government Alliance on Race and Equity (GARE) cohort.

SPECIAL HAYWARD GEOLOGIC HAZARD ABATEMENT DISTRICT BOARD

Mayor Halliday suggested replacing the Council priorities “clean” with “healthy” and “green” with “sustainable” and adding “equitable” to the list of priorities and recommended having them reviewed during the Strategic Roadmap work session and having the Legislative Program updated afterwards. Mayor Halliday also requested adding safety language to the Program and offered the following, “giving local government greater resources and authority to increase traffic and pedestrian safety.”

Council Member Lamnin was amenable to the recommendation and suggested adding it to Section 1.4 as subsection “I”. Council Member Zermeño concurred with the amendment.

Management Analyst James noted the new subsection “I” would read, “Support measures that give local government more authority and resources to implement measures that improve pedestrian and traffic safety.”

It was moved by Council Member Lamnin, seconded by Council Member Zermeño, and carried by the foll owing roll call vote, to a pprove the resolution with t hree amendments to the Legislative Program: (1) amend Section 1.6(E) to read: “Support legislation that aids or helps to fund the City and/or non-profit entities that provide vocational services, support services and housing for people who are homeless, seniors, veterans and others with special needs.”; (2) amend Section 1.9(A) to read: “Support legislation that establishes or expands early voting opportunities and increases physical accessibility for voters who are elderly or have disabilities.”; and (3) amend Section 1.4 by adding sub-section (I) to read: “Support measures that give local government more authority and resources to implement measures that improve pedestrian and traffic safety.”

AYES: COUNCIL MEMBERS Andrews, Lamnin, Márquez, Salinas, Wahab, Zermeño
MAYOR Halliday
NOES: None
ABSENT: None
ABSTAIN: None

Resolution 22-020, “ Resolution Adopting Updates to the City’s Official Legislative Program”

INFORMATIONAL ITEM

23. Informational Report Regarding Hayward Water Bills RPT 22-001

Staff report submitted by Director of Public Works Ameri, dated January 18, 2022, was filed.
14 | J a n u a r y 1 8 , 2 0 2 2

City Manager McAdoo noted the item was presented as general information only and if Council wished to discuss or take action, staff could bring it back at the next Council agenda.

Mayor Halliday noted the Council Sustainability Committee had reviewed and discussed the report, suggested that future bill examples show a reduction in water usage when comparing data from a prior year , and she thanked City staff and her colleagues on the Council Sustainability Committee, Council Members Zermeño and Márquez, for the work on the water bill design which will help residents make decisions about water use.

COUNCIL REPORTS AND ANNOUNCEMENTS

Council Member Wahab reported someone had observed that Kwanzaa was not included in the banners hanging in the City Hall Rotunda for the holiday season. Council Member Lamnin noted that banners were created by people who celebrated the specific holiday and while outreach was done, no one was identified for that holiday and asked to be contacted if there was a desire to make a banner.

Council Member Andrews noted the Keep Hayward Clean and Green Task Force would not hold a clean-up event over the upcoming weekend due to the Omicron COVID variant, reminded residents could participate in the Adopt a Block program, and announced the Task Force was organizing the Beautiful Yard contest.

Council Member Salinas recognized Council Member Andrews for her continued work during the pandemic with Keep Hayward Clean and Green Task Force efforts.

COUNCIL REFERRALS

There were none.

ADJOURNMENT

Mayor Halliday adjourned the meeting at 8:07 p.m., noting the City Council would reconvene in Closed Session to continue discussion of remaining items and the public reporting would occur on January 25, 2022, which would be held virtually only.

APPROVED:
_________________________________________________________ Barbara Halliday
Mayor, City of Hayward

ATTEST:
__________________________________________________________ Miriam Lens
City Clerk, City of Hayward

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: CONS 22-047
DATE: February 1, 2022
TO: Mayor and City Council
FROM: Director of Public Works

SUBJECT
Adopt a Resolution Approving Plans and Specifications, and Calling for Bids for the Municipal Parking Lot No. 1 Improvement Project No. 05286

RECOMMENDATION
That Council adopts a resolution (Attachment II) approving the plans and specifications, and calling for bids to be received on February 22, 2022, for the Municipal Parking Lot No. 1 Improvement Project No. 05286.

SUMMARY
This project is a continuation of the City’s municipal parking lot improvement project. This is the sixth of numerous parking lot improvement projects within the downtown area of the City. Muni Lot 1 is generally located between Mission and Main Streets and A and B Streets. It is the lot that services Buon Appetito restaurant, the Turf Club, the Dirty Bird, and numerous other businesses.

The project is categorically exempt for environmental review under Section 15301(c) of the California Environmental Quality Act (CEQA) Guidelines for the operation, repair, maintenance, or minor alteration of existing facilities.

ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
Attachment III Project Location Map
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DATE: February 1, 2022

TO: Mayor and City Council

FROM: Director of Public Works

SUBJECT: Adopt a Resolution Approving Plans and Specifications, and Calling for Bids for the Municipal Parking Lot No. 1 Improvement Project No. 05286

RECOMMENDATION

That Council adopts a resolution (Attachment II) approving the plans and specifications, and calling for bids to be received on February 22, 2022, for the Municipal Parking Lot No. 1 Improvement Project No. 05286.

SUMMARY

This project is a continuation of the City’s municipal parking lot improvement project. This is the sixth of numerous parking lot improvement projects within the downtown area of the City. Muni Lot 1 is generally located between Mission and Main Streets and A and B Streets. It is the lot that services Buon Appetito restaurant, the Turf Club, the Dirty Bird, and numerous other businesses.

BACKGROUND

This project is part of an annual pavement rehabilitation and preventive maintenance program for the City’s nine municipal parking lots. Improvements of Municipal Parking Lots No. 2, 3, 4, 5 and 6 have been completed, which improved not only the pavement and aesthetic condition of the parking lots, but also added additional parking stalls, including accessible parking spaces for Americans with Disabilities Act (ADA) compliance.

DISCUSSION

The project consists of improving the current condition of Municipal Parking Lot (Muni Lot) No. 1 by upgrading the parking configuration to City standards and ADA parking

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spaces requirements. Additional improvements include pavement rehabilitation, additional landscaping, upgrading LED lighting, parking stall striping, markings and signage, and the infrastructure necessary for future electric vehicle charging stalls.

Muni Lot No. 1 is located in the Downtown servicing public parking needs for offices and retail stores on Mission Boulevard, A Street, B Street and Main Street. The parking access points to Muni Lot No. 1 are on Mission Boulevard, B Street, Main Street, and A Street.

Improvements to be performed with this project include the reconfiguration of the parking stalls to be in compliance with City standards and ADA requirements. Also included is the infrastructure to accommodate two electric vehicle charging stalls consisting of the installation of conduits and electric pull boxes.

ECONOMIC IMPACT

The improvement of the parking amenities and provision of electric vehicle charging stalls will provide convenience for visitors to the Downtown area and may increase activity to nearby businesses.

FISCAL IMPACTS

The estimated project costs are as follows:

Construction Contract $418,000
Construction Contingency 145,000
Landscaping – City Staff 20,000
Design and Administration 8,500
Construction Survey, Inspection and Testing 8,500
TOTAL $600,000

The contingencies are also intended to cover any necessary funds for irrigation and electrical repair or replacement work.

The adopted FY22 Capital Improvement Program (CIP) includes $600,000 for the Muni Lot No. 1 Improvement Project No. 05286 in the Street System Improvements – Fund 450.

STRATEGIC ROADMAP

This agenda item supports the Strategic Priorities to Improve Infrastructure. Specifically, this item relates to the implementation of the following projects:

Project 1: Improve access and mobility in downtown Hayward.

Project 2: Expand EV charging infrastructure for city fleet and employees.

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SUSTAINABILITY FEATURES

This project upgrades the needed conditions of the parking lot particularly the availability of accessible parking spaces, safe pathways, and provision of electric charging stations.

The project requires the contractor to recycle all construction and demolition debris resulting from the construction of the project.

PUBLIC CONTACT

Immediately after the construction contract is awarded, a preliminary notice explaining the project implementation will be distributed to the businesses adjacent to the limit of work.

After the construction work has been scheduled, businesses will be notified at least seventy-two hours prior to actual commencement of work.

SCHEDULE

The estimated schedule for this project is as follows:

Call for Bids February 1, 2022
Open Bids February 22, 2022
Award Construction Contract March 15, 2022
Begin Construction April 4, 2022
Complete Construction June 7, 2022

NEXT STEPS

After staff evaluates the bid results, staff will return to Council with the recommendation for award of construction contract.

Prepared by: Hector Leuterio, Assistant Civil Engineer Kathy Garcia, Deputy Director of Public Works

Recommended by: Alex Ameri, Director of Public Works

Approved by:

________________________________
Kelly McAdoo, City Manager

ATTACHMENT II

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HAYWARD CITY COUNCIL

RESOLUTION NO. 22-_____

Introduced by Council Member __________________

RESOLUTION APPROVING PLANS AND SPECIFICATIONS , AND CALLING FOR BIDS FOR THE MUNICIPAL PARKNG LOT NO. 1 IMPROVEMENT PROJECT NO. 05286

WHEREAS, those certain plans and specifications for Municipal Parking Lot No. 1 Improvement, Project No. 05286, on file in the office of the City Clerk, are hereby adopted as plans and specifications for the project; and

WHEREAS, the City Clerk is hereby directed to cause a notice calling for bids for the required work and material to be made in the form and manner provided by law; and

WHEREAS, sealed bids therefore will be received by the City Clerk’s office at City Hall, 777 B Street, First Floor, Hayward, California 94541, up to the hour of 2:00 p.m. on Tuesday February 22, 202 2, and immediately thereafter publicly opened and declared by the City Clerk in the Rotunda, First Floor, at City Hall.

WHEREAS, that the project is categorically exempt for environmental review under Section 15301(c) of the California Environmental Quality Act Guidelines for the operation, repair, maintenance, or minor alteration of existing facilities.

NOW, THEREFORE, BE IT RESOLVED by the City Council of Hayward will consider a report on the bids at a regular meeting following the aforesaid opening and declaration of same.

ATTACHMENT II

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IN COUNCIL, HAYWARD, CALIFORNIA _____________________.

ADOPTED BY THE FOLLOWING VOTE:

AYES: COUNCIL MEMBERS:

MAYOR: Halliday

NOES: COUNCIL MEMBERS: None

ABSTAIN: COUNCIL MEMBERS: None

ABSENT: COUNCIL MEMBERS: None

ATTEST: ______________________________________
City Clerk of the City of Hayward

APPROVED AS TO FORM:

_________________________________________
City Attorney of the City of Hayward

ATTACHMENT III

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: CONS 22-063
DATE: February 1, 2022
TO: Mayor and City Council
FROM: Director of Public Works

SUBJECT
Adopt a Resolution Authorizing the City Manager to Execute Amendment No. 7 to the Professional Services Agreement with CSG Consultants, Inc., for Private Development Review Services in the Amount of $130,000 for a Total Not-To-Exceed Amount of $1,700,000

RECOMMENDATION
That Council adopts a resolution (Attachment II) authorizing the City Manager to execute Amendment No. 7 to the Professional Services Agreement (PSA) with CSG Consultants, Inc., (CSG) for private development plan check review and related services, increasing the amount by $130,000 for a total not- to-exceed contract amount of $1,700,000.

SUMMARY
The City entered into a PSA with CSG on November 18, 2016 to assist with development review. CSG has extensive experience in providing professional services for private development projects in the Bay Area. CGS has provided these services for large scale projects in the City, such as SoHay, Lincoln Landing, and Parcel Group 3 and 5, specifically in the planning and entitlement stages of projects. Due to staff vacancies and continued significant private development workload, staff is requesting an additional amendment to continue receiving these services.

ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
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DATE: February 1, 2022

TO: Mayor and City Council

FROM: Director of Public Works

SUBJECT: Adopt a Resolution Authorizing the City Manager to Execute Amendment No. 7 to the Professional Services Agreement with CSG Consultants, Inc., for Private Development Review Services in the Amount of $130,000 for a Total Not-To-Exceed Amount of $1.7 million

RECOMMENDATION

That Council adopts a resolution (Attachment II) authorizing the City Manager to execute Amendment No. 7 to the Professional Services Agreement (PSA) with CSG Consultants, Inc., (CSG) for private development plan check review and related services, increasing the amount by $130,000 for a total not-to-exceed contract amount of $1,700,000.

SUMMARY

The City entered into a PSA with CSG on November 18, 2016 to assist with development review. CSG has extensive experience in providing professional services for private development projects in the Bay Area. CGS has provided these services for large scale projects in the City, such as SoHay, Lincoln Landing, and Parcel Group 3 and 5, specifically in the planning and entitlement stages of projects. Due to staff vacancies and continued significant private development workload, staff is requesting an additional amendment to continue receiving these services.

BACKGROUND

Public Works staff is responsible for reviewing grading plans, subdivision maps, improvement plans, and soils and geological reports for private development projects. Due to staff vacancies and significant private development workload, the City entered into an PSA with CSG on November 18, 2016, to provide these plan review services. On September 19, 2017
1, Council approved Amendment No. 1, increasing the original PSA amount by an additional $425,000, for a total amount of $500,000, and extending the term to June 30, 2018. Amendment No. 2, which was approved on May 22, 20182, increased the total of the

1 https://hayward.legistar.com/LegislationDetail.aspx?ID=3162138&GUID=76EC45C9-E156-4AFB-9E60- B0AB0C27AE83&Options=&Search=
2 https://hayward.legistar.com/LegislationDetail.aspx?ID=3508589&GUID=F517F5A6-7470-4B64-BE2A- 26D7C5726EAC&Options=&Search=

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PSA to $680,000 and extended the PSA to December 31, 2018. Amendment No. 3, which was approved on January 8, 2019, extended the PSA to June 30, 2019. On June 25, 20193, Council approved Amendment No. 4, for a total PSA amount of $880,000 and extended the PSA to June 30, 2020. On September 22, 20204, following Amendment No. 5 approval, the agreement was extended to June 30, 2021 for a total PSA amount of $1,200,000. On July 06, 20215, Council approved Amendment No. 6 for a total PSA amount of $1,570,000 and extended the PSA to June 30, 2022.

DISCUSSION

The current PSA with CSG for development plan check and review services expires on June 30, 2022; however, because of the extended need for CSG services, the PSA amount of $1,570,000 is estimated to be fully expended by February 2022. Furthermore, due to staff vacancies in the Public Works & Utilities and Development Services Departments, and significant private development workload, staff anticipates that these services will continue to be required through the end of FY22. CSG’s advanced knowledge and experience in private development projects, along with their familiarity with the City’s Municipal Code and development requirements, have assisted City staff in processing development projects.

As such, staff requests approval of Amendment No. 7 to increase the contract amount by $130,000, for a not-to-exceed amount of $1.7 million, to fund the required services through the end of the fiscal year.

ECONOMIC IMPACT

This PSA aims to facilitate timely development in the City, which impacts and improves the local economy.

FISCAL IMPACT

This item will have some impact to the General Fund. Given that the private consultant’s hourly rates are typically much higher than City staff’s rates in comparable positions, the consultant’s fees are not currently fully recovered through charges to proj ects. However, staff anticipates that most of these expenses will be offset by charges to developers.

Staff will be evaluating the current approach taken in current charging practices for development review and will adjust accordingly in order to reduce the impact on the General Fund.

3 https://hayward.legistar.com/LegislationDetail.aspx?ID=3993701&GUID=84297268-7A43-4F53-8674- B64A2D980093&Options=&Search=
4 https://hayward.legistar.com/LegislationDetail.aspx?ID=4646744&GUID=BEF0434E-91CC-40BB-8BBB- AE2E500B3CE1&Options=&Search=
5 https://hayward.legistar.com/LegislationDetail.aspx?ID=5018122&GUID=65E9EA51-514A-43E0-A1E4- 3BF3177C01A2&Options=&Search=

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STRATEGIC ROADMAP

This agenda item supports the Strategic Priority to Grow the Economy by providing professional services to the Development Services and Public Works & Utilities

Departments by assisting in finalizing planning on redevelopment of six remaining parcel groups. Specifically, this item relates to the implementation of the following:

Project 5, Part 5a: Finalize planning on redevelopment of six remaining parcel groups This agenda item also supports the Strategic Priority to Improve Infrastructure.

Specifically, this item relates to the implementation of the following:

Project 10: Investigate major municipal building upgrade needs Project 11, Part 11b: Upgrade and maintain Airport infrastructure and facilities

By receiving professional services from CSG, the City is taking steps to improve infrastructure within the City. This achievement occurs through reviewing and conditioning large developments projects to improve Hayward’s utilities and street improvements including but not limited to traffic calming initiatives.

PUBLIC CONTACT

No public contact has been made related to this amendment.

NEXT STEPS

If Council approves this request, the City Manager will execute Amendment No. 7 to the PSA with CSG to increase the PSA amount to $1.7 million in a form approved by the City Attorney.

Prepared by: Manny Grewal, Management Analyst
Kathy Garcia, Deputy Director of Public Works
Recommended by: Alex Ameri, Director of Public Works

Approved by:

Kelly McAdoo, City Manager

ATTACHMENT II

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HAYWARD CITY COUNCIL

RESOLUTION NO. 22-____

Introduced by Council Member __________

RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE
AMENDMENT N0. 7 TO THE PROFESSOIONAL SERVICES AGREEMENT WITH CSG CONSULTANTS, INC., FOR PRIVATE DEVELOPMENT REVIEW SERVICES IN THE AMOUNT OF $1 30,000 FOR A NOT -TO-EXCEED AMOUNT OF $1 .7

MILLION

WHEREAS, the aforesaid parties have entered into that certain Agreement dated the 18th day of November 2016, entitled “Agreement for Professional Services between the City of Hayward and CSG CONSULTANTS, INC.,", for temporary Development Review Services; and

WHEREAS, the City and Consultant amended that certain Agreement with Amendment No.1 dated the 19
th day of September 2017 increasing the Agreement to
$500,000 and extending the termination date to June 30, 2018; and

WHEREAS, the City and Consultant amended that certain Agreement with Amendment No. 2 dated the 22 nd day of May 2018 increasing the Agreement to $680,000 and extending the termination date to December 31, 2018; and

WHEREAS, the City and Consultant amended that certain Agreement with Amendment No. 3 dated the 8th day of January 2019 extending the termination date to June 30, 2019; and

WHEREAS, the City and Consultant amended that certain Agreement with Amendment No. 4 dated the 25 th day of June 2019 extending the termination date to June 30, 2020; and

WHEREAS, the City and Consultant amended that certain Agreement with Amendment No. 5 dated the 22nd day of September 2020 extending the termination date to June 30, 2021; and

WHEREAS, the City and Consultant amended that certain Agreement with Amendment No. 6 dated the 6th day of July 2021 extending the termination date to June 30, 2022; and

WHEREAS, the City and the Consultant desire to further amend the Agreement in certain respects,

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ATTACHMENT II

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hayward that the City Manager is hereby authorized and directed to nego tiate and execute, on behalf of the City of Hayward, in a form approved by the City Attorney, an amendment to the agreement with CSG CONSULTANTS, INC., for additional services in the amount of $130,000, resulting in an increase of the total contract, inclusive of all prior amendments, to an amount not- to-exceed $1.7 million associated with the City of Hayward temporary development plan check review services.

IN COUNCIL, HAYWARD, CALIFORNIA , 2022

ADOPTED BY THE FOLLOWING VOTE:

AYES: COUNCIL MEMBERS:

MAYOR:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED AS TO FORM:

ATTEST:

City Clerk of the City of Hayward

City Attorney of the City of Hayward

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: CONS 22-080
DATE: February 1, 2022
TO: Mayor and City Council
FROM: CIO/Director of Information Technology

SUBJECT
Adopt a Resolution Authorizing the City Manager to Negotiate and Execute an Agreement with Avidex Industries LLC, to Replace End-of-Life Hardware in the Council Chambers and City Hall Conference Room 2A in an Amount Not-to-Exceed of $107,558.83

RECOMMENDATION
That Council adopts a resolution (Attachment II) authorizing the City Manager to negotiate and execute an agreement with Avidex Industries, LLC to retrofit the Council Chambers and City Hall Conference Room 2A in the amount of $97,780.83 plus a 10% contingency in the amount of $9,778 for any related, but unforeseen work with a total of an amount ot-to- exceed of $107,558.83.

SUMMARY
The City of Hayward Council meetings are public meetings and are broadcasted and recorded for the public from the Council Chambers at Hayward City Hall. The upgrade of the hardware in the Council Chambers and City Hall Conference Room 2A audio/video systems directly supports integral equipment needed to run Council, Planning Commission, and other official meetings for the City of Hayward. In June of 2021, the Council Chambers were upgraded to allow for hybrid participation meetings and during that time, additional equipment was identified as needing replacement. This upgrade will update end-of-life equipment as phase two of the City’s hybrid meeting participation upgrade.

ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
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DATE: February 1, 2022

TO: Mayor and City Council

FROM: CIO/Director of Information Technology

SUBJECT

Adopt a Resolution Authorizing the City Manager to Negotiate and Execute an Agreement with Avidex Industries LLC, to Replace End-of-Life Hardware in the Council Chambers and City Hall Conference Room 2A in an Amount Not-to-Exceed of $107,558.83

RECOMMENDATION

That Council adopts a resolution (Attachment II) authorizing the City Manager to negotiate and execute an agreement with Avidex Industries, LLC to retrofit the Council Chambers and City Hall Conference Room 2A in the amount of $97,780.83 plus a 10% contingency in the amount of $9,778 for any related, but unforeseen work with a total of an amount ot-to- exceed of $107,558.83.

SUMMARY

The City of Hayward Council meetings are public meetings and are broadcasted and recorded for the public from the Council Chambers at Hayward City Hall. The upgrade of the hardware in the Council Chambers and City Hall Conference Room 2A audio/video systems directly supports integral equipment needed to run Council, Planning Commission, and other official meetings for the City of Hayward. In June of 2021, the Council Chambers were upgraded to allow for hybrid participation meetings and during that time, additional equipment was identified as needing replacement. This upgrade will update end-of-life equipment as phase two of the City’s hybrid meeting participation upgrade.

BACKGROUND AND DISCUSSION

In June of 2021, the Chambers and Conference Room 2A were retrofitted to allow for hybrid participation meetings. These specific upgrades were made to support dual participation with constituents and Council, as well as to allow for the overflow of participants from the pre- function area and add a third camera in a secondary conference room for greater broadcast coverage. During that time, additional equipment was discovered in these areas at their end- of-life and in need of replacement.

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A second phase is needed for the Council Chambers and Conference Room 2A that will address the following issues:

Recording and Playback Limitations
Multiple commission, task force, and Council meetings that are scheduled to playback at the same time cannot currently be done. Upgrading the main infrastructure that broadcasts and plays back previously recorded meetings will be upgraded to address its current limitation while upgrading equipment in need of replacement.

Replace the Character Generator
This appliance is used for the graphics for all broadcasted Council, Commission, and Task Force meetings. This replacement will allow the City to replace end-of-life equipment and upgrade to the latest version of software.

Replace Teleconferencing Camera in 2A
This teleconference camera replacement will address the audio and video quality when joining a video conference call from the system in Conference Room 2A.

Avidex LLC is a trusted, industry leading vendor with extensive historical knowledge of the existing system and is currently managing and maintaining the software and hardware in the Chambers and Conference Room 2A. Avidex also successfully upgraded the audio/video systems to the current hybrid solution that now serves as a model that other agencies are adopting and referencing.

STRATEGIC ROADMAP

This agenda item supports the Strategic Priority of Improve Organizational Health by supporting the City’s diversity, equity, and inclusion action plan by providing greater access for the Hayward community to City meetings.

FISCAL IMPACT

The cost of this service agreement with Avidex is not expected to exceed $107,558.83 and will be covered under the American Rescue Plan Act Fund (Fund 103). Sufficient funds have been appropriated and no other funding is needed.

NEXT STEPS

If Council adopts the resolution, the City Manager will execute the agreemenet and staff will work with Avidex to begin the upgrade work in the Chambers and in Conference Room 2A.

Prepared by: Maritza Vargas, IT Client Support

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Recommended by: Adam Kostrzak, Chief Information Officer

Approved by:

_________________________________
Kelly McAdoo, City Manager

ATTACHMENT II

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HAYWARD CITY COUNCIL

RESOLUTION NO. 22-____

Introduced by Council Member __________

RESOLUTION AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND

EXECUTE AN AGREEMENT WITH AVIDEX INDUSTRIES, LLC, TO REPLACE

END-OF-LIFE EQUIPMENT IN THE COUNCIL CHAMBERS AND CITY HALL CONFERENCE ROOM 2A IN AN AMOUNT NOT-TO-EXCEED $107,558.83

WHEREAS, due to the COVID-19 pandemic,
the Council and public participation in the
Council Chambers will continue to be in person/remote hybrid meetings; and

WHEREAS, these improvements are critical and necessary elements of the City Council’s public meetings; and

WHEREAS, replacement of cr itical infrastructure is needed in order to continue to provide a hybrid model; and

WHEREAS, the City previously contracted Avidex for City Council chamber modifications, and, as a result, Avidex staff has knowledge and understanding of the chamber designs and is available to begin work immediately.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Hayward hereby authorizes and directs the City Manager to negotiate and execute an Agreement with Avidex Industries, LLC., for equipment and professional services in an amount of $97, 780.83 plus a 10% contingency in the amount of $9,778 for any related, but unforeseen work, for a total not- to-exceed amount of $107,558.83, in a form approved by the City Attorney.

ATTACHMENT II

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IN COUNCIL, HAYWARD, CALIFORNIA _______________________, 2022.

ADOPTED BY THE FOLLOWING VOTE:

AYES: COUNCIL MEMBERS:

MAYOR:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ATTEST: ______________________________________
City Clerk of the City of Hayward

APPROVED AS TO FORM:

__________________________________________
City Attorney of the City of Hayward

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: CONS 22-070
DATE: February 1, 2022
TO: Mayor and City Council
FROM: Director of Finance

SUBJECT
Adopt a Resolution Accepting and Filing the Annual Comprehensive Financial Report for the Year Ended June 30, 2021

RECOMMENDATION
That the Council adopts a resolution (Attachment II) accepting and filing the City’s Annual Comprehensive Financial Report (ACFR) (Attachment III) for the fiscal year ended June 30, 2021.

SUMMARY
Each year, the City conducts an independent financial audit, which is performed by an external contractor. Auditing standards require auditors to formally communicate the results directly to the agency’s governing body, to establish direct and effective two-way communication with Council and staff, and to convey audit matters, the scope of work, difficulties encountered, adjustments to financial statements, or any possible disagreements with management. As in previous years, the auditor’s opinion on the City’s financial statements for fiscal year 2020 is without exception and is unmodified. There were no significant findings with respect to either the City’s FY2020 financial statements or FY2021 statements.

ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
Attachment III Comprehensive Annual Financial Report
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DATE: February 1, 2022

TO: Mayor and City Council

FROM: Director of Finance

SUBJECT

Transmittal of the Annual Comprehensive Financial Report for the Year Ended June 30, 2021

RECOMMENDATION

That the Council adopts the attached Resolution (Attachment II) accepting and filing the City’s Annual Comprehensive Financial Report (ACFR) (Attachment III) for the fiscal year ended June 30, 2021.

SUMMARY

Each year, the City conducts an independent financial audit, which is performed by an external contractor. Auditing standards require auditors to formally communicate the results directly to the agency’s governing body, to establish direct and effective two-way communication with Council and staff, and to convey audit matters, the scope of work, difficulties encountered, adjustments to financial statements, or any possible disagreements with management. As in previous years, the auditor’s opinion on the City’s financial statements for fiscal year 2020 is without exception and is unmodified. There were no significant findings with respect to either the City’s FY2020 financial statements or FY2021 statements.

BACKGROUND

The City’s independent external auditor, Maze and Associates, has completed its audit of the City’s financial statements for the fiscal year ended June 30, 2021. The City’s Annual Comprehensive Financial Report (ACFR) represents all funds of the City, including the General Fund, Water, Sewer, Airport, and all other enterprise, special revenue and capital funds.

Auditing standards require auditors to formally communicate the results directly to the agency’s governing body, to establish direct and effective two-way communication with Council and staff, and to convey audit matters, the scope of work, difficulties encountered, adjustments to financial statements, or any possible disagreements with management.

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DISCUSSION

Annual Comprehensive Financial Report – Staff is pleased to report that, as in previous years, the auditor’s opinion on the financial statements for fiscal year 2021 is without exception and is unmodified. That is, the auditor’s report is not restricted (modified) in any manner, nor does it take exception with any of the information contained in the City’s financial statements. While a modification or exception is not necessarily detrimental, the ability to report that the City’s financial statements continue to earn a “clean opinion” is a positive statement about the City’s financial management and oversight.

Staff has submitted the fiscal year 2021 ACFR to the Government Finance Officers Association (GFOA) award program, a national award recognizing conformance with the highest standards for preparation of local government financial reports. The City of Hayward has received this award for the last thirty-fifth consecutive years.

Communication Letters from Auditors – The Required Communications letter is intended to identify any communication issues and present new accounting standards pronouncements that may affect the audit. The auditor did not report any difficulties in performing the audit or any disagreements with management.

FY 2021 Finding

There were no significant audit findings.

FY 2020 Finding

There were no significant audit findings.

STRATEGIC INITIATIVES

This agenda item is a routine operational item that does not relate to any of the Strategic Initiatives.

FISCAL IMPACT

There is no direct fiscal impact resulting from the approval of the annual audit.

PUBLIC CONTACT

On October 20, 2021, Maze & Associates presented to the Council Budget and Finance Committee an overview of the fiscal year 2021 audit process and the role of the external auditor. Staff presented the final audit findings and the ACFR to the Council Budget and Finance Committee on January 19, 2022.

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Prepared and Recommended by: Dustin Claussen, Director of Finance

Approved by:

Kelly McAdoo, City Manager

ATTACHMENT II

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HAYWARD CITY COUNCIL

RESOLUTION NO. 22-______

Introduced by Council Member

RESOLUTION ACCEPTING AND FILING THE ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2021

WHEREAS, the audit of the financial statements and internal controls of the City of Hayward has been completed for the year ended June 30, 2021, by the City’s independent auditors, Maze & Associates.

NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Hayward that the City Council accepts and files the Annual Comprehensive Financial Report for the Year Ended June 30, 2021.

HAYWARD, IN COUNCIL, HAYWARD, CALIFORNIA _______________________, 2022.

ADOPTED BY THE FOLLOWING VOTE:

AYES: COUNCIL MEMBERS:

MAYOR:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ATTEST:

City Clerk of the City of Hayward

APPROVED AS TO FORM:

_________________________________________
City Attorney of the City of Hayward

Annual
Comprehensive
Financial Report
FISCAL YEAR ENDED:

JUNE 30, 2021

HAYWARD, CALIFORNIA

ATTACHMENT III
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CITY OF HAYWARD, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT

FOR FISCAL YEAR ENDED JUNE 30, 2021

Prepared by:

Accounting Division, Department of Finance

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INTRODUCTORY SECTION

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CITY OF HAYWARD, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT

FOR FISCAL YEAR ENDED JUNE 30, 2021

TABLE OF CONTENTS

Pages

INTRODUCTORY SECTION

Letter of Transmittal ........................................................................................................................................... i – xi Organization Chart .................................................................................................................................................. xii Directory of City Officials ..................................................................................................................................... xiii Directory of Administrative Staff .......................................................................................................................... xiv GFOA Certificate of Achievement for Excellence in Financial Reporting ........................................................... xv

FINANCIAL SECTION

Independent Auditor’s Opinion ................................................................................................................................ 1

Management’s Discussion and Analysis .................................................................................................................. 5 Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position ...................................................................................................................... 21 Statement of Activities .......................................................................................................................... 22 Fund Financial Statements:

Governmental Funds:

Balanc e Sheet ..................................................................................................................................... 26 Reconciliation of Governmental Fund Balances to Net Position of Governmental Activities ......... 28 Statement of Revenues, Expenditur es, and Changes in Fund Balances ........................................... 30 Reconciliation of the Net Change in Fund Balances – Total Governmental Funds with the Statements of Activities ......................................................................................... 32 Proprietary Funds:

Statement of Net Position .................................................................................................................. 34 Statement of Revenues, Expenses and Changes in Fund Net Position ............................................. 35 Statement of Cash Flows ................................................................................................................... 36 Fiduciary Funds:

Statement of Fi duciary Net Position .................................................................................................. 38 Statement of Changes in Fiduciary Net Position ............................................................................... 39 Notes to Basic Fina ncial Statements ............................................................................................................ 41

Required Supplemental Information:

Schedule of Changes in the Net Pension Liability and Related Ratios (Miscell aneous Plan) ....................................................................................................................... 96 Schedule of Contributi ons (Miscellaneous Plan) ............................................................................. . 98
Schedule of Changes in the Net Pension Liability and Related Ratios (Safety – Fire Plan) ........................................................................................................................ 100 Schedule of Contributi ons (Safety – Fire Plan) ............................................................................... 102 Schedule of Changes in the Net Pension Liability and Related Ratios (Safety – Police Plan) .................................................................................................................... 104 Schedule of Contributi ons (Safety – Police Plan) ........................................................................... 106

FINANCIAL SECTION (Continued):

Required Supplemental Information (Continued):

Schedule of Changes in the Net OPEB Liability and Related Ratios ............................................. 108 Schedule of Contributions – Other Postemployment Benefits ........................................................ 109 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General Fund and Major Special Revenue Fund:

General Fund ............................................................................................................................. 110 Federal Grants Special Revenue Fund ...................................................................................... 111

Supplemental Information:

Schedules of Revenues, Expenditures and Ch anges in Fund Balances - Budget and Actual Major Capital Projects Funds:

Housing Authority Capital Project Fund ................................................................................... 114 General Capital Projects Capital Project Fund .......................................................................... 115 Combining Balance Sh eets – General Fund .............................................................................................. 118 Combining Schedules of Revenues, Expend itures and Changes in Fund Balance – General Fund .............................................................................................................. ............................. 119 Non-major Governmental Funds:

Combining Ba lance Sheets ................................................................................................................... 124 Combining Statements of Revenues, Expenditures, and Changes in Fund Balances ............................................................................................................................. 130 Combining Schedules of Reve nues, Expenditures, and Changes in Fund Balances -Budget and Actual ............................................................................................. 136 Non-major Enterprise Funds
Combining Statemen ts of Net Position ................................................................................................ 146 Combining Statements of Revenues, Expe nses and Changes in Fund Net Position ........................... 147 Combining Statemen ts of Cash Flows ................................................................................................. 148 Internal Service Funds:

Combining Statemen ts of Net Position ................................................................................................ 150 Combining Statements of Revenues, Expe nses and Changes in Fund Net Position ........................... 152 Combining Statemen ts of Cash Flow ................................................................................................... 154 Fiduciary Funds:

Combining Statement of Fiduciary Net Position - Custodial Funds .................................................... 158 Combining Statement of Changes in Fi duciary Net Position – Custodial Funds ................................ 159

STATISTICAL SECTION (Unaudited)

Net Position by Component – Last Ten Fiscal Years .................................................................................. 165 Changes in Net Position – Last Ten Fiscal Years .............................................................................. .......... 166
Fund Balances of Governmental F unds – Last Ten Fiscal Years ................................................................ 170 Changes in Fund Balance of Government al Funds – Last Ten Fiscal Years .............................................. 172 Assessed and Estimated Actual Value of Ta xable Property – Last Ten Fiscal Years ................................. 174 Property Tax Rates - All Overlapping G overnments – Last Ten Fiscal Years ............................................ 175 Principal Property Taxpayers – Curr ent Year and Nine Years Ago ............................................................ 176 Property Tax Levies and Collect ions – Last Ten Fiscal Years .................................................................... 177 Ratio of Outstanding Debt by Type– Last Ten Fiscal Years ....................................................................... 178 Computation of Direct and Overlapping Debt ............................................................................................. 179 Computation of Legal Bonded Debt Margin ............................................................................................... 180 Revenue Bond Coverage Wastewater Revenue Bonds – Last Ten Fiscal Years ....................................... 181

STATISTICAL SECTION (Unaudited) (Continued)

Bonded Debt Pledged Revenue Coverage, Tax Allocation Bonds- Last Ten Fiscal Years ........................ 182 Demographic and Economic Statisti cs – Last Ten Fiscal Years ................................................................. 183 Principal Employers – Curren t Year and Nine Years Ago .......................................................................... 184 Full-Time Equivalent City Government Empl oyees by Function – Last Ten Fiscal Years ........................ 185 Operating Indicators by Function/Progr am – Last Four Fiscal Years ......................................................... 186 Capital Asset Statistics by Function/ Program – Last Ten Fiscal Years ....................................................... 188

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December 17, 2021

Honorable Mayor, M embers of the City Council , and Residents of the City of Hayward, California:

It is my pleasure to submit the Annual Comprehensive Financial Report (ACFR) of the City of Hayward for the fiscal year ended June 30, 2021. Responsibility for the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City. In the opinion of management, the data is accurate in all material respects, is presented in a ma nner designed to fairly set forth the financial position and results of operations of the City, and contains all disclosures necessary to enable the reader to understand the City’s financial affairs. The financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP) as promulgated by the Government Accounting Standards Board (GASB).

FINANCIAL STATEMENT PRESENTATION

This report consists of management’s representations concerning the finances of the City of Hayward, Ca lifornia. Consequently, management assumes full responsibility for the completeness and reliability of the information presented in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to protect the City’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with GAAP.

The City’s financial statements have been audited by Maze and Associates, a public accounting firm fully licensed and qualified to perform audits of local governments within the State of California. The goal of the independent auditor is to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2021, are free of material misstatement. 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 financi al statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an un modified opinion that the City of Hayward, California’s financial statements for the year ended June 30, 2021, are fairly presented in conformity with GAAP. The Independent Auditors’ Report is presented as the first component of the financial section of this Report.

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The independent audit of the financial statements of the City was part of a broader, federally mandated “Single Audit” designed to meet the special needs of Federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government’s internal controls and compliance with legal requirements, with special emphasis related to and involving the administration of Federal Awards. These reports are available in the City’s separately issued Single Audit Report (issued in March 2022).

This ACFR is presented in three sections: introductory, financial, and statistical. The introductory section includes this transmittal letter, the City’s organizational chart, and a list of principal officials. The financial section includes the basic financial statements and the combined financial statements and schedules, the independent auditor’s report on these financial statements and schedules, and management’s discussion and analysis (MD&A). The statistical section includes selected financial and demographic information, generally presented on a multiyear basis.

The independent auditor’s report is presented as the first component of the financial section of the ACFR, followed by the MD&A, which provides a narrative introduction, overview, and analysis to accompany the basic financial statements. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it.

CITY PROFILE & SERVICES

With a population currently estimated at 162,954, Hayward is the sixth largest city in the San Francisco Bay Area and the third largest city in Alameda County. Hayward is located fourteen miles south of Oakland in the San Francisco Bay Area. The City area includes sixty-one square miles lying between the eastern shore of the San Francisco Bay and the southern Oakland - Berkeley Hills. Hayward serves as a major transportation hub and a center of commercial and industrial activity, with immediate access to major interstate freeways, rail lines, and public transit routes such as Bay Area Rapid Transit (BART). The community has more than 50,000 homes and residences of all types; and considerable commercial and industrial development.

Major institutional facilities include California State University-East Bay, Chabot Community College, one major hospital, a variety of private and vocational educational institutions; and state and county offices.

City Structure
The City was incorporated in 1876. Under the City Charter adopted in 1956, the City government is organized in the Council-Manager form. The Mayor is directly elected to a four- year term of office and serves as a voting member and the presiding officer of the City Council.

The City Council includes six other members, each of whom is elected at-large to overlapping four-year terms. The Mayor and City Council serve as the legislative and policy-making body of the City government and appoint a City Manager, a City Clerk, and a City Attorney. The City Manager is the City's chief executive officer and appoints all other City staff. The City Manager is responsible for the daily administration of the City government and provides overall direction to all City departments.

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City Services
Hayward provides a full range of services to its residents including: law enforcement; fire prevention and protection; paramedic services; housing and economic development; land use development services and regulations; community planning; street construction and maintenance; landscape maintenance services; transp ortation planning; and contracted curbside recycling and refuse collection. In addition, the City operates and maintains facilities for water distribution, storm water, and sanitary sewer collection and disposal. The City also operates a general aviation executive airport, downtown parking facilities, a main and branch library, and a civic center. Park and recreation services are provided through partnership with the regional Hayward Area Recreational District (HARD), headquartered in the City. This partnership includes one public golf course under operational lease to HARD. After school homework and tutoring programs and literacy classes are provided through the City Library system and are located in the Library and on school campuses in partnership with Hayward Unified School District (HUSD).

Component Units
The City Council is also financially accountable for the Successor Agency of the Hayward Redevelopment Agency, the Hayward Public Financing Authority, the Hayw ard Housing Authority, and the Hayward Business Improvement District ; therefore, these component unit activities are included in the accompanying basic financial statements. Furthermore, the City participates in a number of joint ventures and authorities, which exist due to joint exercise of power agreements. An equity in terest is reported for the East Bay Dischargers Authority (www.ebda.org/). The complete financial activities have not been included for this entity, as the City Council is not financially accountable for them. Other entities, which have been excluded, that do not meet the established criteria for inclusion in the reporting entity are the Hayward Area Recreation and Park District ( www.haywardrec.org/) and Hayward Unified School District (www.husd.k12.ca.us/).

ECONOMIC CONDITION AND OUTLOOK
The information presented in the financial statements is best understo od when it is considered with in the broader perspective of the specific environment in the City of Hayward.

Local Economy
Hayward is a diverse city with a diverse economy – comprised of a well -established and growing business community that represents a balance of retail, industrial, and advanced technologies. Because of this the City is working towards a healthy recovery after multiple shelter in place orders during the fiscal year. The City has worked tirelessly with local businesses to assist in keeping their doors open for business and funding programs to stimulate the local economy and assist in this recovery.

The Employment Development Department data reflects that the unemployment rate in Alameda County as of October 2021 was 6.1%, which is down from 11.0% in 2020.

In spite of the pandemic, Hayward has seen a year over year increase of 6.0% in its assessed valuation in 202 1. The median residential home value is about $ 876,343 in October 2021 versus $702,173 a year ago.
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The total Assessed Valuation for Hayward has grown from $15.2 billion in FY 2012 to $25.8 billion in FY 2021, as real estate values that have been restored to pre-Great Recession levels, higher sales prices, and new developments. The City’s property tax revenues increased by 6% in FY 2021 as compared to FY 2020.

From 2008-2012 the City saw a cumulative loss of $12.4 million in sales tax revenue, due in large part to lagging automobile sales, along with decreases in business -to-business, construction, and other retail sectors. While the City has seen an erosion in some business segments, this revenue source has been fully restored to pre -recession levels. The City’s Measure C District tax revenues as approved by the voters in 2014 , ($18.6 million in FY 2021) dramatically increase d total Sales Tax revenues. However, these revenues are targeted for specific activities as outlined in the documents to place the measure on the ballot in 2014; therefore, to get the true story of the City’s Sales Tax, these revenues should be considered separately.

On May 19, 2009 , the voters of the City of Hayward approved Measure A allowing for the collection of a 5.5% utility users tax to maintain key essential services and prevent further reductions to basic City services. The tax was extended to FY 2039 after the voters approved Measure D in 2016. The utility users’ tax revenue for fiscal year 2021 was $17.3 million.

The City’s transfers tax revenue went up by $5 million or 40.6% in fiscal year 2021 compared to fiscal year 2020 due to growing demand and tight housing supply.

While the City tries to remain optimisti c, management has mixed views regarding the outlook for the future due to the continued growth of expenditures related to employee benefits and deferred infrastructure improvements. Controlling expenditures has been a key element in responding to the City’s fiscal challenges. Management and employee groups have successfully partnered to implement significant structural savings and cost-sharing that will assist the City in achieving long -term fiscal sustainability shown by the fact that all but one of the City’s employee groups agreed to offer concessions as the City struggled t o offset the impacts on revenues.

Factors Affecting the City’s Financial Condition
In addition to the unforeseen impacts of the COVID -19 pandemic, the City faces similar challenges to other local jurisdictions in California. In addition to rising operating and capital costs, the City has lost over $100 million in local revenues to the State since 1994. The State’s ability to take local government revenues, the loss of the City’s redevelopment agency being a prime example, has significantly hampered the future plans of local governments for years to come. In addition, the State’s continued policy to push services down to the local level without reallocating revenue to support the service delivery is a continued challenge.

Long-term Perspective
The City has been prudent with its financial resources and has contained costs by implementing both structural and one -time budget savings. The City worked incredibly diligently to reduce the amount of reserves used during FY 20 21 and will continue to do so moving forward while the effects from the COVID-19 pandemic continue. While the City has consistently worked to balance its budget, Hayward must continue this effort and make v
additional adjustments to its general fund expenditures to address and resolve an ongoing structural deficit largely driven by rising employee benefit costs.

The City employs long -term planning as the framework for its fiscal decisions and recently updated its forecasting model to provide a comprehensive and agile tool projecting the City’s finances for a ten-future fiscal year period for the General Fund as well as other key operating funds. While the General Fund structural budget gap has been greatly reduced as compared to years past, the City continues its efforts to eliminate structural gaps and achieve a more stable fiscal outlook on a long-term basis.

While Hayward’s underlying economy is viewed as stable and positive in the long -term, today’s economic challenges, notably to the City’s General Fund, must be dealt with immediately to ensure long-term economic stability. The other enormous challenge is continuing to provide an ever-increasing high level of service to the community with limited resources and rising employee benefit costs – while ensuring long-term economic stability.

MAJOR INITIATIVES & ACCOMPLISHMENTS

In early 2020, the Hayward City Council adopted the City’s “Strategic Roadmap,” which included six priority areas: Preserve, Protect & Produce Housing; Grow the Economy; Combat Climate Change; Improve Infrastructure; Improve Organizational Health; and Support Quality of Life. Through the budget planning process, and with City Council direction, the management team has aligned its program priorities and service delivery objectives with these Strategic Priorities. Some of the accomplishments and ongoing efforts in these Priority areas are discussed below.

Capital Improvement Program

One way through which the City implements the Strategic Priorities is through the Capital Improvement Program (CIP). The capital budget for FY 2021 totaled about $73 million, with approximately $471million tentatively programmed for the entire ten-year period from FY 2021 through FY 2030. While the City’s CIP Projects touch the Combat Climate Change, Support Quality of Life, and Improve Organizational Health Priorities, they predominantly support the Improve Infrastructure Priority.

Improve Infrastructure Priority

Complete Hayward BoulevardFeasibility Study: The Complete Hayward Boulevard Feasibility Study will address speeding and safety concerns on Hayward Boulevard, a vibrant multi-lane arterial that includes residential, commercial, and educational land uses.

The intent of the project is to provide recommendations leading to the eventual implementation of a more balanced multi-modal roadway, utilizing traffic calming strategies to improve bicycle and pedestrian accessibility within the corridor. The study is anticipated to be completed in Fall 2021. At that point, funding will be sought to implement the adopted recommendations in a phased approach.

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Assess Safe Route for Seniors in the Downtown Area: The proposed Safe Routes for Seniors (SRS) program seeks to make walking in Downtown Hayward safe, pleasant, and accessible for all. In collaboration with local senior housing facilities, senior centers, and community-based organizations, staff will meet with senior residents to identify obstacles to walking, develop a set of design solutions to address their concerns, and either advocate for or implement those solutions on Hayward streets and sidewalks. Benefited by a re- allocation of $1.9 million dollars of Measure B/BB funding, the Program will ultimately involve the development and construction of recommended mobility and accessibility improvements benefiting seniors in the downtown core.

Mission Blvd Phases 2 & 3: Phase 2 of the Mission Boulevard Corridor Improvement Project involved the improvement of Mission Boulevard from Industrial Parkway to the south City limit, near Blanche Street. The improvements have been constructed to accommodate multi-modal access via numerous efforts, including: new sidewalks, curb ramps, pavement, traffic signals, street lighting, separated bike lanes, transit improvements, landscaping, undergrounding of overhead utilities, replacement of walls/signs at Blanche Street, Fairway Street, and Corrine Street, as well as new fencing.

The project includes features such as drought tolerant plants, permeable pavers, reuse of existing pavement, and energy efficient LED streetlights with dimming features.

Construction of this Phase of the Mission Boulevard Corridor Improvement Project commenced in March 2018 and was completed in September 2020.

Phase 3 is the final phase of the Mission Boulevard Corridor Improvement Project. Like the Phases before it, Phase 3 will focus on improving multi-modal access on Mission Blvd along the stretch from A Street to the north City limit at Rose Street. Improvements will include a bike lane adjacent to the sidewalk (Cycle Track), new sidewalk, curb ramps, pavement, traffic signals, street lighting, transit improvements, landscaping, undergrounding of overhead utilities, and a new gateway feature at Rose Street. Design work on Phase 3 was completed on schedule in December 2020, and the project was advertised and bids were received in April 2021. However, due to unexpectedly high bids and a funding shortfall, a construction contract was not awarded. Staff have modified the design to allow for the inclusion or exclusion of some elements due to cost. Staff are also actively pursuing funding opportunities, like the Rebuilding American Infrastructure with Sustainability and Equity (RAISE) Grant, to rebid the project in FY 2022.

Construct Fire Station No. 6 & Fire Training Center: Located on West Winton Avenue, adjacent to the Hayward Execute Airport, the New Fire Station 6 and Fire Training Center Project involves the replacement of the existing Fire Station 6 and Fire Training Center with nine new buildings and structures. New buildings will include Fire Station 6/Classroom Building, Apparatus Building, Training Tower, Burn Building, Storage Building, Hangar Building, USAR/BART Training Structure, Outdoor Classroom, Entry Canopy, and a parking lot. The project will also include the installation of Bay-friendly landscaping, storm water treatment devices, LED lighting, and solar PV panels. The new facilities are planned to achieve LEED Silver, and the habitable buildings are being designed to achieve Net Zero Energy. Design work was completed in April 2020. Construction started in August 2020 and is anticipated to be complete in Fall 2022.

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Complete Initial Phase of Recycled Water Project: To improve overall water supply reliability and conserve drinking water supplies, the City constructed a recycled water system to deliver tertiary-treated recycled water to sites near the WPCF for landscape irrigation and industrial uses. Construction of the storage tank, pump station, and distribution pipeline system was completed in FY 2020. Construction of the treatment facility and customer connections to the recycled water system have been completed, and recycled water deliveries to the first phase of customers are anticipated to begin in mid-FY 2022. The Phase I customer sites include four parks, six schools, one college, nineteen private businesses, and City street landscaping.

Design & Construct Capital Improvements to Airport Hangars: The FY 2019 CIP included a Hangar Condition Assessment (HCA), through which a consultant was hired to conduct a physical evaluation of various Airport-owned hangars. The final assessment was provided to Airport staff in mid-FY 2020. In concert with the City’s Council Airport Committee, and with input from the tenants, a ten-year maintenance schedule was developed based on this assessment. Implementation of this maintenance schedule began in FY 2020, and activities in the first two years of the ten-year plan will primarily involve roof repairs -- particularly those required of the larger executive hangars, which are in the greatest need of refurbishment. In FY 2021, roof repairs, which consisted of removing and repairing sections of the metal roof that were leaking and applying a polyurethane coating to make the roofs water resistant, were completed on Executive Hangar Buildings 1 and 2.

Combat Climate Change Priority

Reduce Carbon Emissions – Transition 15% of Total City Fleet to EV/Hybrid Models: The City maintains a fleet of approximately 450 vehicles and equipment units. The useful life of these fleet units is maximized and managed via the Fleet Capital Replacement Plan. The Plan identifies replacement timelines based on age, mileage, maintenance, and safety. When it comes time to retire a unit, carbon emissions are key consideration in the selection of its replacement.

In FY 2021, Fleet Management began a Police Hybrid Patrol Vehicle Pilot Program which included the replacement of four patrol gasoline powered vehicles with four hybrid models. After a six-month trial in 24/7 operation, the hybrid vehicles performed as required, clearing the way for the City to order future police patrol replacement vehicles as hybrids. In FY 2021, Fleet purchased an all-electric ride-on lawnmower to replace a gasoline model in a deliberate effort to evaluate and purchase greener types of vehicles and equipment. The new mower is being used in the downtown area and operates quietly, eliminating noise in and around businesses and homes. Staff are also working to invest in electric vehicles (EV) where possible and within current replacement cycles and budget parameters. Development of an implementation plan to increase City EV charging infrastructure is necessary in order to accommodate future increases in the City’s EV Fleet.

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Support Quality of Life Priority

Complete Tennyson & Jackson Corridor Landscape Beautification: In FY 2018, as part of the City Council’s Tennyson Corridor Strategic Initiative, staff began renovating the medians along Tennyson Corridor in an effort to transform this busy corridor into a visually appealing community gateway. The three-year project involves new trees, plants, bark chips, pavers, and more, and is anticipated to be completed in FY 2022. Similar median beautification efforts are planned for the Jackson Corridor, another key arterial road within the City. Also a three year-long project, this effort is scheduled to commence in FY 2023.

Complete LaVista Park: In partnership with Hayward Area Recreation and Parks District (HARD), La Vista Park is a 50-acre destination park located a quarter mile east of the intersection of Tennyson Road and Mission Boulevard in South Hayward. The project completed its CEQA update, and staff are currently working with consultants to finalize the design. Construction bid documents are anticipated to be completed by Fall 2022, and construction is planned to commence in Spring 2023.

Improve Organizational Health Priority

Replace Aging Fiber Optic Lines between City Facilities: IT infrastructure is the critical backbone of all City systems and business processes. Therefore, it is essential that all systems and supporting infrastructure are reliable and continuously updated. Several of the fiber optic lines owned by the City are beyond their expected age of use and this project will support their replacement.

FINANCIAL INFORMATION

Organizational Health and Fiscal Stability

Long Range Financial Planning: The City continues to refine its long-range financial planning tools as part of managing the annual budget for the General Fund, other key revenue funds such as internal service and enterprise funds , and the Capital Improvement Program. Utilizing a ten-year approach has helped the City identify and plan accordingly to manage potential future structural deficits.

Long-term Debt Ratings: The City maintains excellent ratings on all of its debt issuances.

In recent fiscal years, the City has received very high ratings from the various rating agencies, including a AA rating from both Fitch and Standard & Poor’s of the 2015 Certificates of Participation and a AA+ rating by Standard & Poor’s for the 2013 Water Bonds. The City also has an implied general obligation rating of AA+ with a stable out look from both rating agencies. Standard & Poor’s Ratings Services recently reviewed the rating of the 2004 and 2006 TABS and upgraded its rating from A- to A and affirmed a stable outlook. In September 2021, Fitch affirmed the City’s AA+ Issu er Default Rating and maintained the City’s outlook as stated. This opinion is likely to improve given recent changes to the City’s fiscal outlook.

A critical component of the rating agency review is the City’s financial management status - ix
i.e., appropriate reserve levels, plans to reduce liabilities, fiscal policies, etc. If the City fails to maintain these areas of fiscal control, the City could see a reduction in future ratings.

Internal Controls: The City’s management is responsible for establishing and maintaining an internal control structure designed to ensure that adequate accounting data is compiled to prepare the City’s 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: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the calculation of costs and benefits requires estimates and judgments by management.

Budgetary Controls & Financial Policies

The City Council adopts financial p olicies that provide guidance to critical areas such as budget administration and long -term planning, debt and cash management, fund balance/reserve levels, and risk management.

Budget Control: Budgetary controls ensure compliance with legal provisions embodied in the a nnual budget approved by the City Council. Per the City Charter , the City Council is required to adopt an annual budget resolution prior to July 1 of each fiscal year. Activities of all funds, except agency funds, are included in the Annual Budget. The City also adopts a ten- year capital improvement program, appropriat ing the current year’s expenditures in the annual budget. The level of control (that is, the level at which expenditures cannot legally exceed the appropr iated amount) is established at the fund level. The City Manager may authorize transfers of appropriations in the adopted budget within funds; however, any revisions which alter the total expenditures of any fund must be approved by the City Council.

Long-term Planning : One of the financial policies noted above outlines the City’s goals related to long-range financial forecasting. As recommended by the policy, the City annually prepares and adopts a ten -year financial plan for the General Fund as part of the operating budget.

In addition, the City maintains long-range forecasting models for other key operating funds, including a capital improvement program plan. The City adopts a ten -year Capital Improvement Program annually , that includes planned capital projects in the areas of transportation, low to moderate income housing, pedestrian access, utilities, airport, and internal services capital replacements. All these investments in the various areas reflect the City Council’s commitment to maintain or improve the City of Hayward and provide the citizens with the highest possible service and level of infrastructure possible given constrained funding.

Debt Administration: Even as a charter city, Hayward has adopted a comprehensive debt management policy that guides the issuance and management of City debt. The policy includes establishing the legal debt limits (per State law this equates to 15% of assessed value of all real and personal property of the city); identifying the types of debt that can be issued and purposes for which debt proceeds can be used; establishing financial limits affecting debt issuance; and identifying guidelines regarding the structuring of debt (such as x
term). At the end of fiscal year 2021, the City had total debt outstanding of $ 122.04 million, which complies with, and is significantly under, the current policy limits. This is further detailed in the accompanying Management Discussion and Analysis (MD&A) section of this document.

Cash Management: The City’s investment policy is conservative and is supported by the annual adoption by the City Council of a Statement of Investment Policy that defines the objectives and priorities of the inves tment program, which stresses the safety and liquidity of funds as the highest priority. The final priority is to achieve the maximum yield possible within the constraints and limits stated in the policy. The City hired a third-party investment manager in July 2012 to assist in managing and balancing the City’s pooled cash portfolio, and improving the overall yield within policy guidelines.

Reserve Policies: In complying with the provisions of GASB Statement 54 (fund balance reporting and fund type definitions), some of the current reserve designations have changed.

For FY 2021, the policy states that General Fund reserves for economic uncertainty and liquidity should be no less than two months of city operating costs or at least 20% of budgeted General Fund operating expenditures.

While further delineated in the accompanying MD&A, at the end of fiscal year 2021, the unassigned fund balance of the General Fund was $31.4 million, while the total fund balance was $66.2 million (includes non-cash outstanding receivables of over $4.5 million and $30.3 million in Measure C District Tax cash balance). The unassigned fund balance represents 16.6% of total General Fund expenditures of $188.5 million (including Transfers Out).

AWARDS AND ACKNOWLEDGEMENTS
Award Recognition
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Hayward for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2021. This was the thirty sixth consecutive year that the City of Hayward has received this prestigious national award. In order to be awarded a Certificate of Achievement, the City must publish an easily readable and efficiently organized ACFR. This Report must also satisfy both GAAP and applicable legal requirements.

A Certificate of Achievement for Excellence in Financial Reporting from the GFOA is valid for a period of one year. We believe that our current annual comprehensive financial report continues to meet the Certificate of Achievement requirements and staff will submit it to the GFOA to determine eligibility for another certificate.

Acknowledgements
The preparation of this report would not have been possible without the dedicated efforts of the entire Finance Department staff, as well as the audit firm of Maze & Associates. All those who contributed to the preparation of this report deserve commendation for their dedication and hard work. I would like to express special appreciation to Marichu Maramba, Accounting xi
Manager; Michelle Polintan, Senior Accountant; Denise Robles, Accountant; Michele Tan, Accountant; and the entire Accounting Division staff.

I also wish to recognize the commitment of the City Manager, the Mayor, and the City Council to the high standards embodied in this report and express appreciation to them and each City department for their cooperation and support in conducting the fiscal operations of the City.

Respectfully Submitted,
Dustin Claussen
Director of Finance
City of Hayward

CITYWIDE ORGANIZATION
xii
The Mayor and six Council members represent Hayward residents, adopt public policy, and approve resource allocations consistent with community priorities. The City Council generally meets the first, third, and fourth Tuesday of each month at 7:00 p.m. in Council Chambers, 2nd Floor of 777 B Street, Hayward, CA 94541. The public is invited and encouraged to attend Council meetings.

ELECTED OFFICIALS
xiii

ADMINISTRATIVE STAFF
Appointed by City Council
City Manager Kelly McAdoo
City Attorney Michael Lawson
City Clerk Miriam Lens
Department Directors
Assistant City Manager Maria Hurtado
Deputy City Manager Jennifer Ott
Development Services Laura Simpson
Finance Dustin Claussen
Fire Chief Garrett Contreras
Human Resources (interim) Maria Hurtado
Information Technology Adam Kostrzak
Library Jayanti Addleman
Maintenance Services Todd Rullman
Police Chief Toney Chaplin
Public Works & Utilities Alex Ameri
xiv
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Hayward
California
For its Comprehensive Annual
Financial Report
For the Fiscal Year Ended
June 30, 2020
Executive Director/CEO
xv
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FINANCIAL SECTION
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INDEPENDENT AUDITOR’S OPINION
To the Honorable Members of the City Council
City of Hayward, California
Report on Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remain ing fund information of the City of Hayward (City), California, as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the Table of Contents.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fa ir presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of East Bay Dischargers Authority, which represent 2.23%, 2.82% and 10.46%, respectively, of the assets, net position, and revenues of the business-type activities. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the
amounts included for East Bay Dischargers Authority is based solely on the report of the other auditors.

We conducted our audit in accordance with auditing sta ndards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assu rance about whether the financial st atements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the eff ectiveness of the City’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
1 Opinions
In our opinion, the financial statemen ts referred to above present fair ly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2021, and the respective changes in financial position and, where applic able, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Change in Accounting Principles
Management adopted the provisions of Governmental Accounting Standards Board Statement No. 84 – Fiduciary Activities, which became effective during the year ended June 30, 2021 and required the restatements of Governmental Activities and Fiduciary net positions as discussed in Note 1 to the financial statements. In addition, the Statement established the new fund type, Custodial Funds, and eliminated the fund type of Agency Funds.

Management early adopted the provisions of Governmental Accounting Standards Board Statement No. 98 – The Annual Comprehensive Financial Report which changes the name of the Comprehensive Annual Financial Report to Annual Comprehensive Financial Report.

The emphasis of these matters does not constitute a modification to our opinions.

Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United
States of America require that the Management’ s

Discussion and Analysis 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 financ ial 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.

Other Information
Our audit was conducted for th e purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The Introductory Secti on, Supplemental Information, and Statistical Section listed in the Table of Contents are presented for purposes of additional analysis and are not a required part of the basic financial statements.
2 The Supplemental Information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing proc edures applied in the audi t of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Supplemental Information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

The Introductory 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 December 17, 2021, on our consideration of the City’s internal cont rol over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.

The purpose of that report is solely to describe the scope of our testi ng of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Pleasant Hill, California
December 17, 2021
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CITY OF HAYWARD, CALIFORNIA
Management’s Discussion and Analysis
As management of the City of Hayward (City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2021. We encourage readers to consider the information presented here in conjunction with additional information furnished in the Letter of Transmittal, which can be found in the preceding introductory section of this report, and with the City’s basic financial statements and accompanying notes to those financial statements.

Financial Highlights
 At the close of the most recent fiscal year, the City’s asset and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $474.9 million (total net position). Excluding the $467.1 million net pension liability, $321.5 million of unrestricted net position is available to meet the City’s ongoing obligations to residents and creditors.
 The City’s total net position increased by $64.5 million over fiscal year 2020.

Governmental activities, including the General Fund, increased by $44.8 million and Business-type activities increased by $19.7 million.
 As of June 30, 2021, the City’s governmental funds reported combined fund balances of $198.3 million, an increase of $33.2 million from the prior year.  At the end of fiscal year 2021, total fund balance for the General Fund, including Measure C, is $66.2 million, an increase of $13.5 million over fiscal year 2020. Of the total, the General Fund ending fund balance is $36.1 million, and Measure C ending fund balance is $30.1. The total fund balance is comprised of $4.4 million in non-spendable (illiquid reserves), $30.3 million in assigned (liquid reserves designated for specific purposes), and $31.4 million in spendable fund balance designated for contingencies, economic uncertainty, emergencies, and liquidity by City Council. The $31.4 million in unassigned fund balance represents 16.6% of total General Fund expenditures including Transfers Out.

The $4.4 million in non-spendable reserves offsets a long-term loan receivable (General Fund loan to the Redevelopment Successor Agency).
 Fiscal year 2021 ended with a net increase to the General Fund, General Purpose Fund Reserve of $5.3 million (net of Measure C district sales tax revenues).  As of June 30, 2021, the City’s enterprise funds (Sewer, Water, Stormwater and Airport) reported a combined ending net position of $368.6 million; an increase of $19.7 million from the previous year.

Overview of the Basic Financial Statements
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s financial statements are comprised of three components: 1) government- wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. In addition to the basic financial statements, this report also contains required supplementary budget vs. actual information and other statistical supplementary information. 5 Government-wide Financial Statements. (pages 21-23) The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business.

The statement of net position (see Table 1 below on page 6) presents information on all of the City’s assets and liabilities, with the difference between the two 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 is improving or deteriorating. It should be noted that net position includes liquid and illiquid assets (cash and non-cash).

The statement of activities and change in net position (see Table 2 below on page 8) presents information showing how the government’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. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flow impacts in future fiscal periods (e.g. uncollected taxes and earned but unused vacation leave).

Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities). The governmental activities of the City include: general government; public safety; public works and transportation; library and community services; planning and building; maintenance services; and interest on long-term debt. The business-type activities of the City include: sewer and water services; storm water runoff management; and the Hayward Executive Airport.

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 a ccounting to ensure and demonstrate compliance with finance-related legal requirements. All of th e funds of the City can be divided into three categories: governmental funds; proprietary funds; and fiduciary funds.

Governmental Funds. (pages 26-32) Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements.

However, unlike the government-wide financial statements, governmental fund financial statements 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. Such information may be useful in evaluating the City’s near-term financial requirements.

Because the focus of governmental funds are more narrow than that of the government-wide financial statements, it is useful to compare the information presented for government 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 City’s near- term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and change s in fund balances provide a reconciliation to facilitate this comparison between governmental fund and governmental activities. 6 The City maintains twenty-three individual government funds for financial reporting. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and change s in fund balance for the General Fund, Federal Grants, Housing Authority, Route 238 Corridor Improvement Fund and General Capital Projects Fund all of which are considered to be major funds. Data from the other eighteen governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements in the Non-major Governmental Funds section of this Report. Combining statements present and summarize all the details of the non-major funds.

The City adopts an annual appropriated budget for all its governmental funds. A budgetary comparison statement is provided for all governmental funds with annually adopted budgets. The budget comparison statements for the General Fund, Federal Grants Special Revenue Fund, Housing Authority Capital Project Fund, the Route 238 Corridor Improvement Capital Project Fund and General Capital Projects Fund are located in the financial statements starting on page 8 of this report. All other major and non-major funds with legally adopted annual budgets are located in the supplementary information section.

Proprietary Funds. (pages 34-36) The City maintains two different types of proprietary funds, the Enterprise Funds and the Internal Service Funds. The Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its sewer, water, storm water runoff, and airport operations. The Internal Service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for its Workers Compensation, General Liability, Fleet Management, Facilities, Information Technology, and Employee Benefits Funds. Because these services predominately benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements.

Proprietary fund statements provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fu nd financial statements provide separate information for the Sewer and Water Funds which are considered to be major funds. Conversely, the Airport Fund and internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements in the Internal Service Funds section of this Report.

Fiduciary Funds. (pages 38-39) Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs.

Notes to the Basic Financial Statements. (pages 41-94) The notes provide additional information that is essential for a full understanding of the data provided in the government-wide and fund financial statements.

Other Information. In addition to the basic financial statements and accompanying notes, supplementary information on major and non-major governmental funds and internal service funds are presented in this report. Combining and individual fund statements and schedules can be found beginning on page 118 of this Report.

7 Government-wide Financial Analysis
The statement of net position and the statement of activities of the City’s governmental activities and business-type activities are presented below in Tables 1 and 2.

Statement of Net Position . As noted earlier, net position may serve as a useful indicator of a government’s financial position over time. In the case of the City, total assets exceeded total liabilities by $474.9 million at the close of the current fiscal year, an increase from the prior year of $64.5 million. The change in the combined net position includes an increase of $44.8 million in Governmental Activities, and an increase of $19.7 million in Business-type Activities.

Table 1 – City of Hayward Statement of Net Position
(in millions)
Governmental
Activities
Business-type
Activities Total
2021 2020 2021 2020 2021 2020
Assets

Current and other assets $297.9 $230.8 $272.6 $248.7 $570.5 $479.6 Capital assets 433.2 420.9 188.0 190.5 621.2 611.4 Total assets 731.1 651.8 460.6 439.2 1,191.7 1,091.0 Deferred outflows 62.7 67.6 4.1 4.6 66.7 72.2
Liabilities
Long term debt outstanding 79.4 85.6 42.6 42.0 122.0 127.6 Other liabilities 575.7 532.3 47.9 46.9 623.6 579.1 Total liabilities 655.1 617.9 90.5 88.9 745.6 706.8 Deferred inflows 32.3 39.9 5.5 6.0 37.9 45.9
Net position:

Net investments in capital assets 357.5 341.0 145.3 148.4 502.8 489.4 Restricted 117.7 94.1 0.0 0.3 117.7 94.4
Unrestricted* (368.8) (373.5) 223.2 200.2 (145.6) (173.3) Total net position $106.4 $61.5 $368.6 $348.9 $474.9 $410.4 * Unrestricted net position for June 30, 2021, included the City's $467.1 million net pension liability, which is not a claim on current financial assets.

The largest portion of the fiscal year 2021 City’s net position, $502.8 million, reflects its investment in capital assets (e.g. land; buildings; street infrastructure; sewer and water pipelines; machinery and equipment) less any related debt used to acquire those assets that are still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay debt must be provided from other sources (future revenue), since the capital assets themselves cannot be used to liquidate these liabilities.
8 In fiscal year 2021, the City’s net position included $66.7 million in deferred outflows of resources.

Of this amount, $57.5 million is related to pensions. This includes $39.7 million related to pension contributions after the measurement date, as well as $17.8 million attributable to changes in calculation assumptions and differences between expected and actual trust fund performance. $8.6 million of the deferred outflows are related to other post-employment benefits (OPEB). $6.8 million of these OPEB related deferred outflows is related to employer contributions after the measurement date and $1.8 million is related to changes in assumptions and trust performance.

Finally, $0.6 million in outflows is related to 2016 refunding of certificates of participation, resulting in a deferred loss.

The City’s long-term debt of $122.0 million includes $9.9 million due within one year, as well as an additional $112.1 million due in future years.

The largest share of the City’s other liabilities is comprised of $467.1 million in net pension liabilities and $67.5 million in OPEB liabilities, as detailed in Note 12 and Note 14, respectively.

Other major liabilities include $29.1 million in accrued liabilities, $23.3 in unearned revenue, $15.3 million in accounts payable, $11.7 million in total compensated absences, and $8.7 million in refundable deposits.

Deferred inflows of resources totaled $37.9 million in fiscal year 2021, $1.4 million related to pensions and $36.5 million related to OPEB. Pension-related deferred inflows are comprised of $0.6 million in differences between actual and expected experience and $0.8 million in changes to calculation assumptions. OPEB-related deferred inflows consist of $36.1 million in changes to calculation assumptions and $0.3 million in differences between projected and actual earnings.

A portion of the City's net position, $117.7 million, represents the resources that are subject to external restrictions on how they may be used. A lmost all of the restricted net position is related to City’s special revenue and capital projects funds. Excluding the $467.1 million net pension liability, $321.5 million of unrestricted net position is available to meet the City’s ongoing obligations to residents and creditors.

Statement of Activities
. The Statement of Activities provides information about all the City’s revenues and expenses, with an emphasis on meas uring net revenues or expenses of each of the City’s programs and explains in detail the change in Net Position for the year. The City’s governmental activities net position increased by a net total of $44.9 million. 9 Table 2 – City of Hayward Statement of Activities and Change in Net Position (in millions) 10 Governmental Activities Revenues
Governmental revenues are categorized as Program Revenues and General Revenues. Program revenue includes charges for services such as traffic safety fines, licenses, permits, plan check fees, building inspection and other construction related fees. Contributions and grants include amounts contributed by developers and grants from state and federal government, of which the majority is public works capital grants. General Revenues includes general taxes (property, sales, etc.). Total revenues increased by $32.4 million:

 Charges for Services increased by $1.7 million over prior year, as the City resumed specific services that were paused during the initial months of the Covid-19 pandemic.  Operating Contributions and Grants increased by $14.8 million compared to prior year due to federal and county funding received in response to the Covid-19 pandemic.  Capital contributions and grants decreased slightly by $0.4 million over the prior year.  Property Taxes increased by $3.3 million over the prior year, due to continued growth in residential use property values.
 Sales Taxes increased by $2.1 million over the prior year, due to continued strength of online sales and increased collections because of the Wayfair decision in FY 2019.  Real Property Transfer Tax increased by $5.0 million over 2020, despite an expected RPTT slowdown prompted by the Covid-19 pandemic.
 A Gain on Sale of Land for Resale resulting from the sale of additional City property along Route 238 increased one-time revenues by $3.4 million over 2020.  Miscellaneous Revenue increased by $3.5 million compared to 2020.

Chart 1 – Revenues by Source – Governmental Activities for Fiscal Year 2021

Property Tax 24%
Property Transfer
Tax 7%
Sales Tax 23%
Other Revenue
9%
Utility Users Tax 7%
Investment
Earnings 0%
Franchise Tax
4%
Charges for Services
9%
Other Taxes 3%
Operating Grants and
Contributions 11%
Capital Grants and
Contributions 2%
11 Governmental Activities Expenses
The governmental expenses (excluding transfers) increased by $10.3 million to $230.5 million.

Operational cost reductions of $5.5 million in general government expenditures were offset by increases of $10.7 million in public safety costs, $4.4 million in public works costs, and a net increase of $0.7 million across other governmental activities expenditures. A significant portion of the increase in expenditures is related to personnel expenses including rising pension benefit costs, as well as an increase in overtime expenses resulting from the City’s response to the Covid- 19 pandemic and mutual aid response. The increase in public works costs is associated with the current and ongoing construction of the new Fire Station 6 and Regional Fire Training Center.

Chart 2, Expenses by Function summarizes governmental expenses by category.

Chart 2 – Expenses by Function – Governmental Activities for Fiscal Year 2021

Business-Type Activities. The net position of business-type activities was $368.6 million at June 30, 2021, an increase of $19.7 million from last fiscal year. Program revenues totaled $100.4 million, while program expenses totaled $77.5 million.

As the Revenue by Source chart indicates, charges for utility services account for 98.9% of the revenue for the City’s enterprise funds. Most of the revenues are generated by the Water and Sewer enterprises.

General
Government
11%
Public Safety
60%
Public Works
12%
Library and
Community
Services
5%
Economic
Development
1%
Planning and
Building
5%
Maintenance
Services
5%
Interest on Debt
1%
12 Chart 3 – Revenues by Source – Business-type Activities Chart 4 – Expenses and Program Revenues – Business-type Activities The Expenses and Program Revenues
chart above illustrates both expenditures and revenues for operations and capital improvements for the City’s business-type activities.

Water, Sewer and Stormwater Funds increased their net position. Sewer saw an increase of $10.1 million, water increased by $11.6 million, and Stormwater decreased by $1.6 million. Given future capital expenses to be borne by these funds and increased water usage, this is an appropriate level of revenue growth. The Airport Fund experienced a slight decrease in net position of $0.04 million.

The Recycling Fund experienced a decrease in net position by $0.4 million.

Charges for
services

98.9%
Investment
earnings

1.1%
-
10 20
30 40
50 60
70 Sewer Water Airport Stormwater
Millions
Expense Revenue
13 Financial Analysis of the Government’s Funds
Governmental Funds. The purpose of the City’s governmental fund statements is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s funding requirements. In particular, unassigned fund balance may serve as a useful measure of a gover nment’s net resources available for spending at the end of the year. It should be noted that unassigned amounts are designated by City Council for specific purposes.

At the end of fiscal year 2021, the City’s governmental funds reported combined ending fund balances of $198.3 million, an increase of $33.2 million over prior year. Among the City’s major governmental funds, increases of $5.3 million and $8.2 million to the General Fund and Measure C Fund, respectively, are mostly offset by a reduction of $13.1 million to the General Capital Projects Fund. The net increase to the combined ending fund balances is due primarily to changes in fund balance for the City’s non-major funds. These include increases of $13.8 million to the Route 238 Improvement fund; $11.6 million to the Affordable Housing fund; $3.4 million to the Measure BB fund; $2.1 million to the Park Dedication Ordinance fund; and a net increase of $1.8 million to other non-major governmental funds. The change in the Route 238 Improvement fund stemmed from the sale of City-owned parcels, while the increase to the Affordable Housing fund is due to the implementation of GASB Statement No. 84. Approximately $166.9 million of the fund balance or 84.2% represents Non-Spendable, Restricted, and Assigned fund balances; and $31.4 million or 15.8% is Unassigned and is available for spending at the City’s discretion pursuant internal and statutory restrictions, this amount represents the General Fund Reserve balance.

General Fund. The General Fund, by definition, is a major governmental fund and represents all funds not required to be accounted for or presented as other funds. The General Fund accounted for 77.7% of the total governmental revenues and 74.5% of the total governmental expenditures.

Several primary City services are accounted fo r in the General Fund, including public safety (police and fire services), general government, development services, maintenance services, and library and community services.

At the end of fiscal year 2021, the General Fund’s Unassigned fund balance was $31.4 million (exclusive of Measure C), an increase of $6.1 million over the prior year. The total fund balance, inclusive of Non-spendable and Assigned balances, was $66.2 million, an increase of $13.5 million from the prior fiscal year. This difference is related to federal Covid-19 response funding, along with significant increases to Real Property Transfer, Property, and Utility User Tax revenues. In addition to federal funding, the General Fund’s fund balance was bolstered by higher-than- expected property, sales, and real property transfer tax revenues.

As a measure of the General Fund’s liquidity, it may be useful to compare the unassigned fund balance to total fund expenditures. The unassigned fund balance represents 16.6% of total General Fund expenditures of $188.5 million (including Transfers Out).

General Fund Budgetary Highlights. Fiscal year 2021 ended with a Net Change in Fund Balance of $13.5 million (GAAP Basis).
14 Table 3 – Fiscal Year 2021 General Fund Budget Summary (in thousands) A B C
(reflected in thousands)
2021
Adopted
2021
Adjusted
2021
Actual
Variance
(C-B)
Variance
%
Revenues $177,583 $182,888 $199,885 $16,997 8.8%
Expenditures 165,108 171,157 172,389 1,232 0.7%
Transfers In/(Out) (10,448) (13,040) (13,988) (948) 7.3% Net Change in Fund Balance
(Budget Basis)
$2,027 $(1,310) $13,508 $14,818
The net change in fund balance for fiscal year 2021 based on actual performance (column C) is positive $13.5 million. The net change in fund balance is primarily attributed to federal pandemic response funding. This fund balance summary on page 26 reflects the Net Change in Fund Balance on a budget basis. Generally accepted accounting principles (GAAP Basis) require that all funds not required to be accounted for in other funds be included in the General Fund, resulting in several general ledger funds being combined and reported as the General Fund in the financial statements.

These adjustments represent the GAAP Basis Fund balance and form a Net Change in Fund Balance of positive $13.5 over prior year.

Other Major Governmental Funds. In addition to the General Fund, there are four other governmental funds considered to be major due to significant balances or activities in the current year and warrant a separate discussion in the management discussion and analysis: Federal Grants, Housing Authority Capital Projects Fund and General Capital Projects Fund.

Federal Grants Fund accounts for various federal grants received by the City, with each grant segregated within the fund to account for specific grant allocations and expenditures for specific purpose, activity or program.

The Housing Authority Fund Capital Projects Fund maintains loans for affordable housing projects.

The General Capital Projects Fund Accounts for General Fund and special revenue fund acquisition and construction of general-purpose public facilities, street resurfacing and improvements.

Proprietary Funds. The City’s proprietary-enterprise funds provide the same type of information found in the government-wide financial statements, but in more detail. At the end of fiscal year 2021, the unrestricted net position of the Sewer and Water Funds amounted to $111.4 and $102.2 million, respectively. Sewer net position increased by $10.1 million and Water net position increased to $11.5 million. This increase in net position for Sewer is significantly less than in fiscal year 2020, in which Sewer and Water net position increased $14.9 million and $11.3 million respectively.

Fiduciary Funds. The Successor Agency to the Redevelopment Agency Private Purpose Trust Fund provides information about the City’s former Redevelopment Agency. In fiscal year 2021 the fund ended with a net position of $7.9 milli on, an increase of $2.2 million over prior fiscal year. The Successor Agency Fund is supported by property taxes, investment income, and rental income. These revenues exceeded the funds expenses in both the current and prior fiscal years. 15 Capital Asset and Debt Administration

Capital Assets. As of June 30, 2021, the City’s investments in capital assets for its governmental and business-type activities are $621.2 million (net of accumulated depreciation) as presented below in Table 4. The investment in capital assets includes land, buildings, land improvements, machinery and equipment, vehicles, and street infra structure such as roads, bridges, streetlights, traffic signals, airport hangers, sewer, and water pipelines. The City’s investment in capital assets for the current fiscal year increased by 1.6%, with several projects moving from being classified as Construction in Progress to classified as completed Improvements and Buildings.

Table 4 – City of Hayward Capital Assets
(in millions)

Governmental
Activities
Business-type
Activities Total
2021

2020 2021

2020
Land $19.0

$19.0 $4.8

$4.8 $23.7

$23.8
Construction in progress 42.6

47.6 19.7

48.0 62.3

95.6 Buildings 71.9

73.7 14.3

14.9 86.2

88.6 Improvements other than buildings 47.1

18.1 -

- 47.1

18.1 Machinery and equipment 23.0

23.3 54.7

26.4 77.6

49.7 Street infrastructure 229.8

239.3 -

- 229.8

239.3
Sewer infrastructure -

- 57.8

61.5 57.8

61.5 Water infrastructure -

- 28.8

26.7 28.8

26.7 Airport infrastructure -

- 7.9

8.2 7.9

8.2 Total $433.2

$420.9 $188.0

$190.5 $621.2

$611.4

Additional information on the City’s capital assets can be found in Note 5 to the basic financial statements.

Debt Administration. At the end of fiscal year 2021, the City had total bonded debt outstanding of $110.6 million as presented in Table 5. This re presents a decrease of $3.8 million versus the prior year. Of the total outstanding bond debt, $63.0 million represents certificates of participation debt for Civic Center Project (City Hall) and 21
st Century Library; $0.8 million represents capital
leases for a solar power generator, fleet ve hicles, computer, and telephone equipment; $37.2 million represents State Water Board financing for a water pollution control facility; $6.0 million private placement lease; $3.5 million loan represents loan from State Energy Resources Conservation and Development Commission.

With the dissolution of the City’s Redevelopment Agency, tax allocation bonds for redevelopment projects are no longer reflected in the City’s financial statements as this debt is now part of the Successor Agency to the Hayward Redevelopment Agency.

16 Table 5 – City of Hayward Outstanding Debt (in millions) Governmental
Activities
Business-type
Activities Total
2021 2020 2021 2020 2021 2020
Certificates of Participation $63.0 $66.4 $- $- $63.0 $66.4 Lease Revenue Bonds - 0.1 - - - 0.1
Capital Lease Obligations 0.8 1.3 - - 0.8 1.3
Private Placement Loan 3.4 3.7 2.6 3.2 6.0 7.0
State Water Resources Control Board Loan - - 37.2 35.6 37.2 35.6 State Energy Resources Conservation 0.7 0.9 2.9 3.2 3.5 4.1 Total Long-Term Debt $67.9 $72.4 $42.6 $42.0 $110.6 $114.4 Local Improvement Districts (LIDS) in different parts of the City and a Community Facilities District #1 (Eden Shores) have also issued debt to finance infrastructure and facilities construction in their respective districts. As described in Note 8 to the financial statements, the City has sponsored special assessment debt issues, but has no legal liability for repayment. Therefore, these are not included in the City’s governmental debt. As of June 30, 2021, a total of $4.9 million in special assessment district debt was outstanding by four special assessment districts. (Further detail regarding the City debt can be found in Note 8 to the financial statements.) Economic Outlook and Major Initiatives
The economy of the City and major initiatives are discussed in the Transmittal Letter located in the Introductory Section of the ACFR.

Contacting the City’s Financial Management
This report is designed to provide a general overvie
w of the City’s finances for all those with an
interest in the government’s finances. Additional financial information is available on our website at: www.hayward-ca.gov . Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of Hayward Finance Department, 777 B Street, Hayward, California 94541-5007. 17 This Page Left Intentionally Blank

CITY OF HAYWARD, CALIFORNIA

STATEMENT OF NET POSITION AND STATEMENT OF ACTIVITIES
The Statement of Net Position and the Statement of Activities summarize the en tire City’s financial activities and financial position. They are prepared on the same basis as is used by most businesses, which means they include all the City’s assets and deferred outflows and all its liabilities and deferred inflows, as well as all its revenues and expenses. This is known as the full accrual basis—the effect of all the City’s transactions is taken into account, regardless of whether or when ca sh changes hands, but all material internal transactions between City funds have been eliminated.

The Statement of Net Position reports the difference between the City’s total assets and deferred outflows of resources and the City’s total liabilities and deferred inflows of resources, including all the City’s capital assets and all its long-term debt. The Statement of Net Position focuses the reader on the composition of the City’s Net Position, by subtracting total liabilities and deferred inflow of resources from total assets and deferred outflow of resources.

The Statement of Net Position summarizes the financ ial position of the entire City’s Governmental Activities in a single column, and the financial position of the entire City’s Business-Type Activities in a single column; these columns are followed by a total column that presents the financial position of the entire City.

The City’s Governmental Activities include the activ ities of its General Fund, along with all its Special Revenue, Capital Projects, and Debt Service Funds. Since the City’s Internal Service Funds service these Funds, their activities are consolidated with Gove rnmental Activities, after eliminating inter-fund transactions and balances. The City’s Business-Type Activities include all its Enterprise Fund activities.

The Statement of Activities reports increases and decreases in the City’s Net Position. It is also prepared using the full accrual basis of accounting, which me ans it includes all the City’s revenues and all its expenses, regardless of when cash changes hands. This differs from the “modified accrual” basis used in the Fund financial statements, which refl ect only current assets, current liabilities, available revenues, and measurable expenditures.

The format of the Statement of Activities presents the City’s expenses first, listed by program, and follows these with the expenses of its business-type activit ies. Program revenues—that is, revenues which are generated directly by these programs—are then deduct ed from program expenses to arrive at the net expense of each governmental and business-type program. The City’s general revenues are then listed in the Governmental Activities or Business-type Activities column, as appropriate, and the Change in Net Position is computed and reconciled with the Statement of Net Position.

Both these Statements include the financial activities of the City, the Hayward Public Financing Authority, the Hayward Business Improvement District, and the Hayward Housin g Authority, which are legally separate but are component units of the City because they are controlled by the City, which is financially accountable for activities.

These financial statements along with the fund financial statements and footnotes are called Basic Financial Statements.
19 This Page Left Intentionally Blank

CITY OF HAYWARD

STATEMENT OF NET POSITION
JUNE 30, 2021
Governmental Business-T ype
Activities Activities Total
ASSETS:

Cash, cash equivalents, and investments (Note 2) $221,268,145 $235,165,574 $456,433,719 Cash, cash equivalents, and investments with fiscal agents (Note 2) 8,787,854 2 8,787,856 Accounts receivable, net 10,798,235 20,022,374 30,820,609 Due from other governments 16,075,039 9,989 16,085,028
Interest receivable 166,325 166,325
Internal balances (Note 4) (3,015,479) 3,015,479
Loans receivable (Note 3) 28,646,290 28,646,290
Long-term loans to the Private Purpose Trust Fund (Note 19) 8,339,979 8,339,979 Land held for resale (Note 1) 6,838,652 6,838,652
Deposits, parts, supplies and other 5,981 4,010,073 4,016,054 Investment in East Bay Dischargers Authority (Note 16) 10,382,103 10,382,103 Capital assets (Note 5):

Land 18,950,817 4,757,492 23,708,309
Construction in progress 42,587,866 19,699,013 62,286,879 Depreciable capital assets, net 371,673,225 163,524,565 535,197,790 Total assets 731,122,929 460,586,664 1,191,709,593

DEFERRED OUTFLOWS OF RESOURCES
Related to pensions (Note 12) 54,761,870 2,766,157 57,528,027 Related to OPEB (Note 14) 7,337,848 1,302,085 8,639,933 Deferred loss on refunding (Note 6) 562,329 562,329
Total deferred outflow of resources 62,662,047 4,068,242 66,730,289 LIABILITIES:

Accounts payable 10,172,040 5,136,187 15,308,227
Accrued interest 450,388 337,445 787,833
Accrued liabilities 28,534,872 613,539 29,148,411
Unearned revenue 22,593,818 669,565 23,263,383
Refundable deposits 5,465,150 3,240,813 8,705,963
Accrued reclamation costs (Note 10):

Due within one year 125,000 125,000
Compensated absences (Note 1):

Due within one year 6,663,283 789,459 7,452,742
Due in more than one year 3,409,925 859,764 4,269,689
Long-term debt (Note 6):

Due within one year 5,770,495 4,122,587 9,893,082
Due in more than one year 73,621,593 38,523,485 112,145,078 Net pension liabilities, due in more than one year (Note 12) 441,111,191 25,957,721 467,068,912 Net OPEB liability, due in more than one year (Note 14) 57,292,730 10,166,460 67,459,190 Total liabilities 655,085,485 90,542,025 745,627,510
DEFERRED INFLOWS OF RESOURCES:

Related to pensions (Note 12) 1,363,944 44,609 1,408,553 Related to OPEB (Note 14) 30,980,603 5,497,436 36,478,039 Total deferred inflow of resources 32,344,547 5,542,045 37,886,592 NET POSITION (Note 9):

Net investments in capital assets 357,492,270 145,334,998 502,827,268 Restricted for:

Public safety 510,994 510,994
Debt service 7,311,682 2 7,311,684
Public works and transportation 34,817,120 34,817,120
Planning and building 34,637,432 34,637,432
Economic development 40,387,423 40,387,423
Total restricted net position 117,664,651 2 117,664,653 Unrestricted (368,801,977) 223,235,836 (145,566,141)
Total net position $106,354,944 $368,570,836 $474,925,780 See accompanying notes to basic financial statements
21 Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions GOVERNMENTAL ACTIVITIES:

General government $24,801,183 $2,491,348 $10,160,132
Public safety 139,350,883 3,537,739 5,349,174
Public works and transportation 26,493,672 5,505,441 13,759,190 $5,395,405 Library and community services 11,444,270 3,919,571 249,056 Economic development 2,981,340 520,189
Planning and building 10,430,293 5,751,306
Maintenance services 12,442,998 1,682,246
Interest on long-term debt 2,551,130
Total Governmental Activities 230,495,769 23,407,840 29,517,552 5,395,405 BUSINESS-TYPE ACTIVITIES:

Sewer 21,928,468 30,144,384
Water 49,135,479 61,842,042
Airport 3,428,349 3,610,821
Stormwater 2,727,484 3,633,200
Recycling 283,369 42,546
Total Business-type Activities 77,503,149 99,272,993
Total $307,998,918 $122,680,833 $29,517,552 $5,395,405
GENERAL REVENUES:

Taxes:

Property taxes
Sales taxes
Utility users tax
Real property transfer tax
Franchise tax
Business tax
Excise tax
Other taxes
Motor vehicle in-lieu, unrestricted
Investment earnin
gs
Gain on sale of land held
Gain on sale of ca
pital assets
Miscellaneous
TRANSFERS (Note 4)
Total General Revenues And Transfers

CHANGE IN NET POSITION
BEGINNING NET POSITION, AS RESTATED (Note 1)

ENDING NET POSITION
See accompanying notes to basic financial statements

CITY OF HAYWARD

STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2021
22 Net (Expense) Revenue and
Changes in Net Position
Governmental Business-t ype
Activities Activities Total
($12,149,703) ($12,149,703)
(130,463,970) (130,463,970)
(1,833,636) (1,833,636)
(7,275,643) (7,275,643)
(2,461,151) (2,461,151)
(4,678,987) (4,678,987)
(10,760,752) (10,760,752)
(2,551,130) (2,551,130)
(172,174,972) (172,174,972)
$8,215,916 8,215,916
12,706,563 12,706,563
182,472 182,472
905,716 905,716
(240,823) (240,823)
21,769,844 21,769,844
(172,174,972) 21,769,844 (150,405,128)
62,227,460 62,227,460
58,652,032 58,652,032
17,267,592 17,267,592
17,120,032 17,120,032
10,624,234 10,624,234
4,365,441 4,365,441
2,070,754 2,070,754
8,497,353 8,497,353
117,578 117,578
1,124,743 1,081,381 2,206,124
3,390,000 3,390,000
82,854 82,854
18,633,107 18,633,107
3,185,444
(3,185,444)
207,358,624 (2,104,063) 205,254,561
35,183,652 19,665,781 54,849,433
71,171,292 348,905,055 420,076,347
$106,354,944 $368,570,836 $474,925,780
23 This Page Left Intentionally Blank

CITY OF HAYWARD, CALIFORNIA

FUND FINANCIAL STATEMENTS
The Fund financial statements include only individual major funds are presented, while non-major funds are combined in a single column. Major funds are defined generally as having significant activities or balances in the current year.

MAJOR GOVERNMENTAL FUNDS
The funds described below were determined to be Major Funds by the City in fiscal year 2021. Individual non-major funds are reported in the Supplemental Section.

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 general fund accounts for all financial resources, which are not accounted for in another fund.

Federal Grants accounts for various federal grants received by the City, with each grant segregated within the fund to account for specific grant allocations and expenditures for specific purpose, activity, or program.

Housing Authority – Under a cooperation agreement with the former Redevelopment Agency, the Housing Authority will use resources for purposes consistent with the California Health and Safety Code. The fund accounts for the activities financed by grants of the tax increment revenue from the former Redevelopment agency.

General Capital Projects Fund – Accounts for General Fund and sp ecial revenue fund acquisition and construction of general purpose public facilities, street surfacing and improvements. 25 Special Capital
Revenue Fund Pro jects Fund
Housing
General* Federal Grants Authorit y
ASSETS:

Cash, cash equivalents, and investments (Note 2) $82,193,745 $2,150,835 $8,978,503 Cash, cash equivalents, and investments with fiscal agents (Note 2) Accounts receivable, net 2,273,665
Due from other governments 13,184,060
Interest receivable 33,829
Due from other funds (Note 4) 1,790,879
Loans receivable (Note 3) 12,701,755 9,187,981
Long-term loans to the Private Purpose Trust Fund (Note 19) 4,436,442 3,876,516 Land held for resale (Note 1) 707,539
Deposits, parts, supplies and other 5,981
Total Assets $103,884,772 $14,886,419 $22,750,539
LIABILITIES:

Accounts payable $2,987,403 $49,752 $572
Accrued liabilities 7,540,612 2,952
Due to other funds (Note 4)
Long-term interfund payables (Note 4) 3,015,479
Unearned revenue 19,232,997
Refundable deposits 4,916,874
Total Liabilities 37,693,365 49,752 3,524
DEFERRED INFLOWS OF RESOURCES:

Unavailable revenue
Total Deferred Inflows of Resources
FUND BALANCES (Note 9):

Nonspendable 4,442,423
Restricted:

Public safety
Public works and transportation
Planning and building 14,836,667
Economic development 22,747,015
Debt service
Assigned 30,317,921
Unassigned 31,431,063
Total Fund Balances 66,191,407 14,836,667 22,747,015
Total Liabilities, Deferred Inflows of Resources
and Fund Balances $103,884,772 $14,886,419 $22,750,539
See accompanying notes to basic financial statements
* Includes balances related to the City's Measure C District Sales Tax.

CITY OF HAYWARD

GOVERNMENTAL FUNDS

BALANCE SHEET
JUNE 30, 2021
26 Capital
Projects Fund
Other Total
General Governmental Governmental
Capital Projects Funds Funds
$6,471,794 $68,315,837 $168,110,714
8,787,854 8,787,854
6,266,857 1,667,918 10,208,440
86,218 2,712,103 15,982,381
64,281 68,215 166,325
1,790,879
6,756,554 28,646,290
8,312,958
6,131,113 6,838,652
5,981
$21,677,004 $85,651,740 $248,850,474
$3,794,401 $1,416,760 $8,248,888
385 193,974 7,737,923
1,790,879 1,790,879
3,015,479
2,937,983 394,949 22,565,929
89,855 453,982 5,460,711
6,822,624 4,250,544 48,819,809
399,541 1,320,227 1,719,768
399,541 1,320,227 1,719,768
4,442,423
510,994 510,994
34,817,120 34,817,120
19,800,765 34,637,432
17,640,408 40,387,423
7,311,682 7,311,682
14,454,839 44,772,760
31,431,063
14,454,839 80,080,969 198,310,897
$21,677,004 $85,651,740 $248,850,474
27 Total Fund Balances reported on the governmental funds balance sheet $198,310,897 Amounts reported for Governmental Activities in the Statement of Net Position are different from those reported in the Governmental Funds above because of the following:

Capital assets used in Governmental Activities are not current assets or financial resources and therefore are not reported in the Governmental Funds.

Land 18,578,069
Construction in progress 39,936,898
Depreciable capital assets, net 352,049,196
Internal service funds are not governmental funds. However, they are used by management to charge the costs of certain activities, such as insurance and central services and maintenance to individual governmental funds. The net current assets of the Internal Service Funds are therefore included in Governmental Activities in the followin
g line items in the Statement of Net Position.

Cash and investments 53,157,431
Accounts receivable 589,795
Due from other governments 92,658
Long-term loans to the Private Purpose Trust Fund 27,021 Land 372,748
Construction in progress 2,650,968
Depreciable capital assets, net 19,624,029
Accounts payable (1,923,152)
Accrued interest (5,192)
Accrued liabilities (20,796,949)
Unearned revenue (27,889)
Refundable deposits (4,439)
Compensated absences (721,658)
Net pension liabilities and pension-related deferred outflows and inflows of resources (8,850,406) Net OPEB liabilities and OPEB-related deferred outflows and inflows of resources (5,464,769) Long-term debt (827,275)
Revenues that are not currently available are shown as deferred on the Fund Balance Sheets are reco
gnized as revenue on the Statement of Activities.

Unavailable revenue 1,719,768
The assets and liabilities below are not due and payable in the current period and therefore are not re
ported in the Fund financial statements:

Long-term debt (78,564,813)
Amortized deferred loss on refunding 562,329
Interest payable (445,196)
Compensated absences (9,351,550)
Net pension liabilities and pension-related deferred outflows and inflows of resources (378,862,859) Net OPEB liabilities and OPEB-related deferred outflows and inflows of resources (75,470,716) NET POSITION OF GOVERNMENTAL ACTIVITIES $106,354,944
See accompanying notes to basic financial statements

GOVERNMENTAL FUNDS

CITY OF HAYWARD
JUNE 30, 2021

ACCRUAL OF NON-CURRENT REVENUES AND EXPENSES

LONG-TERM ASSETS AND LIABILITIES

ALLOCATION OF INTERNAL SERVICE FUND NET POSITION

CAPITAL ASSETS - GOVERNMENTAL ACTIVITIES

FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES

BALANCE SHEET - RECONCILIATION OF GOVERNMENTAL
28 This Page Left Intentionally Blank

CITY OF HAYWARD

GOVERNMENTAL FUNDS

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2021
Special Capital
Revenue Fund Projects Fund
Housing
General* Federal Grants Authorit y
REVENUES:

Property taxes $61,196,409
Sales taxes 58,652,032
Utility users tax 17,267,592
Other taxes 35,277,539
Licenses and permits 5,439,030
Fines and forfeitures 2,194,569
Special assessments
Investment income 151,835 $37,827 $70,718
Rental income 1,723
Inter
governmental 10,881,724 949,046
Fees and charges for services 7,420,237 2,968
Other revenue 1,402,183 8,537
Total Revenues 199,884,873 995,410 73,686
EXPENDITURES:

Current:

General government 13,971,584
Public safety 128,375,921 182,196
Public works and transportation 4,085,154
Library and community services 7,587,444 179,684
Economic development 575,340 103,341
Planning and building 8,712,707
Maintenance services 9,656,198
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total Expenditures 172,389,008 937,220 103,341

EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER)
EXPENDITURES 27,495,865 58,190 (29,655)
OTHER FINANCING SOURCES (USES):

Gain on sale of land held
Transfers in (Note 4) 2,694,046
Transfers (out) (Note 4) (16,681,679) (8,159)
Total Other Financing Sources (Uses) (13,987,633) (8,159) CHANGE IN FUND BALANCES 13,508,232 58,190 (37,814)
BEGINNING FUND BALANCES, AS RESTATED (Note 1) 52,683,175 14,778,477 22,784,829 ENDING FUND BALANCES $66,191,407 $14,836,667 $22,747,015 See accompanying notes to basic financial statements
* Includes revenue and expenditures related to the City's Measure C District Sales Tax. 30 Capital
Projects
Fund
Other Total
General Governmental Governmental
Capital Projects Funds Funds
$61,196,409
58,652,032
17,267,592
$830,605 $564,498 36,672,642
5,439,030
2,194,569
1,408,903 1,408,903
35,574 807,781 1,103,735
624,258 625,981
5,184,103 21,511,185 38,526,058
2,289,758 9,712,963
6,506,193 16,461,791 24,378,704
12,556,475 43,668,174 257,178,618
13,971,584
919,655 129,477,772
44,072 4,069,040 8,198,266
1,356,861 9,123,989
1,671,663 2,350,344
8,712,707
1,096,327 10,752,525
26,559,107 14,098,783 40,657,890
5,416,028 5,416,028
2,795,772 2,795,772
26,603,179 31,424,129 231,456,877
(14,046,704) 12,244,045 25,721,741
3,390,000 3,390,000
965,000 8,633,043 12,292,089
(1,119,667) (17,809,505)
965,000 10,903,376 (2,127,416)
(13,081,704) 23,147,421 23,594,325
27,536,543 56,933,548 174,716,572
$14,454,839 $80,080,969 $198,310,897
31 CITY OF HAYWARD

RECONCILIATION OF THE

NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS

WITH THE

STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2021
The schedule below reconciles the Net Changes in Fund Balances reported on the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance, which measures only changes in current assets and current liabilities on the modified accrual basis, with the Change in Net Position of Governmental Activities re
ported in the Statement of Activities, which is prepared on the full accrual basis.

NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $23,594,325 Amounts reported for governmental activities in the Statement of Activities are different because of the following:

CAPITAL ASSETS TRANSACTIONS
Governmental Funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense.

Capital outlay expenditures are therefore added back to fund balance 40,657,890 Non-capitalized capital outlay expenditures and net retirements were reclassified to various governmental activities (16,025,372) Depreciation expense is deducted from fund balance
(Depreciation expense is net of internal service fund depreciation of $2,993,211 which has alread
y been allocated to service funds) (13,694,707)

LONG-TERM DEBT PROCEEDS AND PAYMENTS
Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Repayment of principal is an expenditure in governmental funds, but in the Statement of Net Position the re
payment reduces long-term liabilities.

Repayment of debt principal and amortization of bond premiums and deferred loss are added back to fund balance 5,701,428 Interest payable (13,237)

ACCRUAL OF NON-CURRENT ITEMS
The amounts below included in the Statement of Activities do not provide or (require) the use of current financial resources and therefore are not re
ported as revenue or expenditures in governmental funds (net change):

Unavailable revenue 1,633,146
Compensated absences (1,599,560)
Net pension liabilities and pension-related deferred outflows/inflows of resources (18,932,098) Net OPEB liabilities and OPEB-related deferred outflows/inflows of resources 7,837,898

ALLOCATION OF INTERNAL SERVICE FUND ACTIVITY
Internal Service Funds are used by management to charge the costs of certain activities, such as equipment acquisition, maintenance, and insurance to individual funds. The portion of the net revenue (expense) of these Internal Service Funds arising out of their transactions with governmental funds is reported with governmental activities, because the
y service those activities.

Change in Net Position - All Internal Service Funds 6,023,939 CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $35,183,652 See accompanying notes to basic financial statements
32 CITY OF HAYWARD, CALIFORNIA

MAJOR PROPRIETARY FUNDS
Proprietary funds account for City operations financed and operated in a manner similar to a private business enterprise. The intent of th e City is that the cost of providi ng goods and services be financed primarily through user charges.

The City has identified the funds be low as major proprietary funds in fiscal year 2021. These statements include balances for both operating and capital funds.

The disclosure of budget versus actual comparisons is not required for proprietary funds.

Sewer Fund – Accounts for activities associated with sewage transmission and treatment.

Water Fund – Accounts for activities associated with distribution and transmission of potable water to users. 33 CITY OF HAYWARD

PROPRIETARY FUNDS

STATEMENT OF NET POSITION
JUNE 30, 2021
Business-type Activities-Enterprise Funds Governmental
Activities-
Non-Major Internal Service
Sewer Water Funds Totals Funds
ASSETS:

Current Assets:

Cash and investments (Note 2) $110,952,654 $109,521,252 $14,691,668 $235,165,574 $53,157,431 Cash and investments with fiscal agents (Note 2) 1 1 2
Accounts receivable, net 5,603,829 12,272,456 2,146,089 20,022,374 589,795 Due from other governments 9,989 9,989 92,658
Deposits, parts, supplies and other 1,194,157 1,194,157 Due from other funds (Note 4) 136,051 136,051
Total Current Assets 116,692,535 122,987,866 16,847,746 256,528,147 53,839,884 Noncurrent Assets:

Long-term interfund receivables (Note 4) 3,015,479 3,015,479 Long-term loans to the Private Purpose Trust Fund (Note 19) 27,021 Deposits, parts, supplies and other 2,802,998 12,918 2,815,916 Investment in East Ba
y Dischargers Authority (Note 16) 10,382,103 10,382,103 Capital assets (Note 5):

Land 1,830,143 2,683,047 244,302 4,757,492 372,748
Construction in progress 5,085,571 14,055,239 558,203 19,699,013 2,650,968 Depreciable capital assets, net 110,664,618 40,646,811 12,213,136 163,524,565 19,624,029 Total Noncurrent Assets 130,765,433 60,400,576 13,028,559 204,194,568 22,674,766 Total Assets 247,457,968 183,388,442 29,876,305 460,722,715 76,514,650

DEFERRED OUTFLOWS OF RESOURCES
Related to pensions (Note 12) 1,136,199 1,158,139 471,819 2,766,157 1,053,598 Related to OPEB (Note 14) 534,569 544,571 222,945 1,302,085 495,452 Total Deferred Outflows of Resources 1,670,768 1,702,710 694,764 4,068,242 1,549,050 LIABILITIES:

Current Liabilities:

Accounts payable 1,437,253 3,544,258 154,676 5,136,187 1,923,152 Accrued interest 325,412 8,199 3,834 337,445 5,192
Accrued liabilities 326,616 196,454 90,469 613,539 20,796,949 Unearned revenue 229,565 440,000 669,565 27,889
Refundable deposits 3,126,873 113,940 3,240,813 4,439
Due to other funds (Note 4) 136,051 136,051
Compensated absences, due within one year (Note 1) 306,077 370,849 112,533 789,459 477,367 Accrued reclamation costs (Note 10) 125,000 125,000
Long-term debt, due within one year (Note 6) 3,492,587 487,444 142,556 4,122,587 220,936 Total Current Liabilities 6,242,510 8,174,077 754,059 15,170,646 23,455,924 Noncurrent Liabilities:

Compensated absences, due in more than one year (Note 1) 333,335 403,875 122,554 859,764 244,291 Net pension liabilities, due in more than one year (Note 12) 10,662,127 10,868,057 4,427,537 25,957,721 9,887,016 Net OPEB liability, due in more than one year (Note 14) 4,173,825 4,251,918 1,740,717 10,166,460 3,868,408 Long-term debt, due in more than one year (Note 6) 36,523,485 1,555,726 444,274 38,523,485 606,339 Total Noncurrent Liabilities 51,692,772 17,079,576 6,735,082 75,507,430 14,606,054 Total Liabilities 57,935,282 25,253,653 7,489,141 90,678,076 38,061,978 DEFERRED INFLOWS OF RESOURCES:

Related to pensions (Note 12) 18,325 18,899 7,385 44,609 16,988 Related to OPEB (Note 14) 2,256,964 2,299,192 941,280 5,497,436 2,091,813 Total Deferred Inflows of Resources 2,275,289 2,318,091 948,665 5,542,045 2,108,801 NET POSITION (Note 9):

Net investments in capital assets 77,564,260 55,341,927 12,428,811 145,334,998 21,820,470 Restricted for debt service 1 1 2
Unrestricted 111,353,904 102,177,480 9,704,452 223,235,836 16,072,451 Total Net Position $188,918,165 $157,519,408 $22,133,263 $368,570,836 $37,892,921 See accompanying notes to basic financial statements
34 CITY OF HAYWARD

PROPRIETARY FUNDS

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED JUNE 30, 2021
Business-type Activities-Enterprise Funds Governmental
Activities-
Non-Major Internal Service
Sewer Water Funds Totals Funds
OPERATING REVENUES:

Charges for services $29,100,056 $15,441,391 $7,023,549 $51,564,996 $30,034,972 Sale of water 46,260,314 46,260,314
Miscellaneous 1,044,328 140,337 263,018 1,447,683 2,140,555 Total Operating Revenues 30,144,384 61,842,042 7,286,567 99,272,993 32,175,527 OPERATING EXPENSES:

Salaries and related expenses 8,804,152 8,508,922 3,616,088 20,929,162 9,802,028 Materials, supplies and services 6,089,429 4,768,463 1,596,705 12,454,597 10,235,487 Repairs and maintenance 795,021 1,268,231 249,480 2,312,732 3,848,874 Water purchases 32,130,463 32,130,463
Self-funded insurance expense 8,228,815
Depreciation (Note 5) 5,576,099 2,385,415 976,929 8,938,443 2,993,211 Total Operating Expenses 21,264,701 49,061,494 6,439,202 76,765,397 35,108,415 Operating Income (Loss) 8,879,683 12,780,548 847,365 22,507,596 (2,932,888) NONOPERATING REVENUES (EXPENSES):

Investment income 482,896 532,293 66,192 1,081,381 209,359 Interest (expense) (663,767) (73,985) (737,752) (27,521) Gain on sale of capital assets 72,129
Net Nonoperating Revenues (Expenses) (180,871) 458,308 66,192 343,629 253,967 Income (Loss) Before Contributions and Transfers 8,698,812 13,238,856 913,557 22,851,225 (2,678,921)

TRANSFERS
Transfers in (Note 4) 3,115,520 547,741 600,000 4,263,261 8,954,428 Transfers (out) (Note 4) (1,667,760) (2,215,659) (3,565,286) (7,448,705) (251,568) Net Transfers 1,447,760 (1,667,918) (2,965,286) (3,185,444) 8,702,860 CHANGE IN NET POSITION 10,146,572 11,570,938 (2,051,729) 19,665,781 6,023,939 BEGINNING NET POSITION 178,771,593 145,948,470 24,184,992 348,905,055 31,868,982 ENDING NET POSITION $188,918,165 $157,519,408 $22,133,263 $368,570,836 $37,892,921 See accompanying notes to basic financial statements
35 CITY OF HAYWARD

PROPRIETARY FUNDS

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2021
Business-type Activities-Enterprise Funds
Governmental
Activities-
Non-Major Internal Service
Sewer Water Funds Totals Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers $31,714,882 $61,520,171 $7,277,296 $100,512,349 $31,975,318 Payments to suppliers (5,935,361) (37,544,122) (1,741,523) (45,221,006) (22,776,498) Payments to employees (8,910,706) (8,076,751) (3,706,755) (20,694,212) (8,410,014) Net Cash Flows From Operating Activities 16,868,815 15,899,298 1,829,018 34,597,131 788,806

CASH FLOWS FROM NONCAPITAL AND
RELATED FINANCING ACTIVITIES:

Interfund receipts (payments) (136,051) 76,266 136,051 76,266 Transfers in 3,115,520 547,741 600,000 4,263,261 8,954,428 Transfers (out) (1,667,760) (2,215,659) (3,565,286) (7,448,705) (251,568) Net Cash Flows From Noncapital and
Related Financing Activities 1,311,709 (1,591,652) (2,829,235) (3,109,178) 8,702,860

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of capital assets (5,410,841) (580,922) (463,653) (6,455,416) (4,347,484) Proceeds from sale of capital assets 82,854
Proceeds from issuance of debt 4,701,217 4,701,217
Principal payments on capital debt (3,471,290) (479,467) (135,533) (4,086,290) (426,807) Interest paid (587,872) (76,115) (683) (664,670) (29,801) Net Cash Flows From Capital and
Related Financing Activities (4,768,786) (1,136,504) (599,869) (6,505,159) (4,721,238) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income 482,895 820,112 66,192 1,369,199 306,398 Net Cash Flows From Investing Activities 482,895 820,112 66,192 1,369,199 306,398 NET CASH FLOWS 13,894,633 13,991,254 (1,533,894) 26,351,993 5,076,826 CASH AND EQUIVALENTS AT BEGINNING OF PERIOD 97,058,021 95,529,998 16,225,562 208,813,581 48,080,605 CASH AND EQUIVALENTS AT END OF PERIOD $110,952,654 $109,521,252 $14,691,668 $235,165,574 $53,157,431

RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED BY OPERATING ACTIVITIES:

Operating income (loss) $8,879,683 $12,780,548 $847,365 $22,507,596 ($2,932,888) Adjustments to reconcile operating income (loss) to net cash provided by operating activities:

Depreciation 5,576,099 2,385,415 976,929 8,938,443 2,993,211 Change in assets and liabilities:

Receivables, net 5,406 (416,321) (81,420) (492,335) 241,059 Due from other governments 1,554,592 6,923 1,561,515 (92,658) Parts and supplies 331,506 148,942 480,448
Other assets 575,362 575,362
Accounts payable and other accrued expenses 617,583 (101,269) 100,061 616,375 (463,322) Due to retirement system 122,177 815,231 194,271 1,131,679 490,182 Due to OPEB (439,599) (549,479) (262,511) (1,251,589) 710,221 Compensated absences 210,868 166,419 42,799 420,086 191,611 Refundable deposits 85,091 4,601 89,692
Unearned revenue 10,500 9,359 19,859 (348,610)
Net Cash Flows From Operating Activities $16,868,815 $15,899,298 $1,829,018 $34,597,131 $788,806 See accompanying notes to basic financial statements
36 CITY OF HAYWARD, CALIFORNIA

FIDUCIARY FUND FINANCIAL STATEMENTS
The Fiduciary funds account for resources received an d are held by the City in a fiduciary capacity.

Disbursements are made in accordanc e with the trust agreement, applic able legislative enactment, or custodial agreement for each fund.

Successor Agency to the Redevelopment Agency Private Purpose Trust Fund – This fund was established to account for the activities of the Successor Agency to the former Rede velopment Agency of the City of Hayward.

Custodial Funds account for assets held by the City as custodian for individuals, other governmental entities, and non-public organizations.
37 CITY OF HAYWARD

FIDUCIARY FUNDS

STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2021
Private Purpose Custodial
Trust Fund Funds
CURRENT ASSETS:

Cash and investments (Note 2) $3,241,624 $4,725,081
Cash and investments with fiscal agents (Note 2) 20 353,843 Accounts receivable, net 453,912 22,300
Due from other governments 109,233
Deposits, parts, supplies and other 201,524
Total Current Assets 3,695,556 5,411,981
NONCURRENT ASSETS:

Loans receivable (Note 19) 24,509,337
Land held for resale 3,483,031
Capital assets (Note 19):

Land 4,430,516
De
preciable capital assets, net 9,487,469
Total Noncurrent Assets 41,910,353
Total Assets 45,605,909 5,411,981
CURRENT LIABILITIES:

Accounts payable and accrued liabilities 31,703 196,631 Accrued interest 423,933
Deferred revenue 63,165 124,235
Refundable deposits 30,497
Long-term debt, due in less than one year (Note 19) 1,975,000 Total Current Liabilities 2,493,801 351,363
NONCURRENT LIABILITIES (Note 19):

Long-term loans payable, due in more than one year 8,339,979 Long-term debt, due in more than one year 26,915,126
Total Noncurrent Liabilities 35,255,105
Total Liabilities 37,748,906 351,363

NET POSITION
Restricted for:

Organizations and other governments 7,857,003 952,480
Bondholders 4,108,138
Total Net Position $7,857,003 $5,060,618
See accompanying notes to basic financial statements
38 Private-Purpose Custodial
Trust Fund Funds

ADDITIONS
Property tax $4,020,771 $1,116,326
Intergovernmental revenue 262,872
Other revenue 64,270
Investment income 25 18,257
Total additions 4,020,796 1,461,725

DEDUCTIONS
Maintenance services 331,740 503,826
Contractual services 203,786
Payments to bondholders 349,366
Depreciation expense (Note 19) 314,131
Interest and fiscal charges 1,132,498 217,330
Total deductions 1,778,369 1,274,308
Net change in position 2,242,427 187,417
Net position - beginning, as restated (Note 1) 5,614,576 4,873,201 Net position - ending $7,857,003 $5,060,618

CITY OF HAYWARD

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2021
See accompanying notes to basic financial statements
39 This Page Left Intentionally Blank

CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

1. SIGNIFICANT ACCOUNTING POLICIES
Description of Reporting Entity – The City of Hayward, Californi a (the “City”) was originally incorporated as the Town of Hayward in 1876. On March 7, 1956, the people of the City adopted a City Charter under which the City curr ently operates. The City maintains a Council- Manager form of government and is governed by an independently elected seven-member Cit y Council. The City provides the following servic es as authorized by its charter: public safety (police, fire, and building inspection), highways an d streets, sanitation, water, airport, social services, public improvements, planning, library and zoning, and general administrative services.

Reporting Entity – The accompanying basic financial statem ents present the financial activity of the City, which is the primary government presen ted, along with the financial activities of its component units, which are entitie s for which the City is fina ncially accountable. The City Council sits in a different capacity as the gov erning boards of the fo llowing entities. 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 st atements. Also, there is either a financial benefit or bur den relationship between the City and the component units below or the City has operational responsibility fo r them. The City’s component units which are described below are all blended.
• Hayward Public Financing Authority (the “Authority”) – In May 1989, the City and the former Redevelopment Agency entered into a joint power s agreement under the Joint Exercise of Powers Law of the State of Calif ornia, thereby forming the Authority for the purpose of financing certain capital impr ovements within the City. These capital improvements are leased to the City for rental payments, which, together with restricted assets of the Authority, will be sufficient to meet the debt service obligations of the Authority. At the termination of the individual leases, title to the related improvements will pass to the City. Operating activities of the Authority are reflected in both the Governmental and Business-type funds of the City.
• The Hayward Business Improvement District (the “District”) was established in 1984 to collect certain charges imposed on busi nesses within the downtown busines s improvement district and to expend such moni es on activities, which enhance the district as a shopping and business center. Operating act ivities of the District are included as a special revenue fund of the City.
• The Hayward Housing Authority (“Housing Authority”) was originally established in 1946. The Housing Authority is only a conduit to issue housing mortgage revenue bonds for developers, whereby such developers are entirely responsible for meeting the related debt obligations and where the funds raised through such housing mortgage revenue bond issues are used to finance multifam ily rental housing developments. A certain percentage of housing units being financed must be for low and moderate income purposes. The Housing Authority is paid a fee by the bene fited developers for issuing the bonds and for monitoring the occupancy of these housing developments. This activity is recorded as a capital projects fund of the City. 41 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

1. SIGNIFICANT ACCOUNTING POLICIES (Continued)
The City participates in a joint venture, the Ea st Bay Dischargers Authority (“EBDA”), which is not included in the accompanying basic financial statements as it is administered by a board separate from and independent of the City. EBDA is also fiscally independent of the City (see Note 16).

Complete financial statements of the individual component units and the joint venture can be obtained from:

City of Hayward
Finance Department, 3rd Floor
777 B Street
Hayward, California 94541
Basis of Presentation – The City’s Basic Financial Statemen ts are prepared in conformity with accounting principles generally accepted in the United States of America. The Government Accounting Standards Board is the acknowledg ed standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the U.S.A.

Government-wide Statements: The Statement of Net Position and the Statement of Activities display information about the primary government (the City) and its co mponent units. These statements include the financial activities of the overall City government, except for fiduciary activities. Eliminations have been made to mini mize the double counting of internal activities.

These statements distinguish between the governmental and business-type activities of the City.

Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. Bu siness-type activities are financed in whole or in part by fees charged to external parties.

The Statement of Activities presents a compar ison between direct expenses and program revenues for each segment of the business-type ac tivities of the City and for each function of the City’s governmental activities. Direct expenses ar e those that are specifically associated with a program or function and, therefor e, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or se rvices offered by the programs, (b) grants and contributions that are restricted to meeting the operational needs of a particular program and (c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

Fund Financial Statements : The fund financial statements provi de information about the City's funds, including fiduciary funds and blended component units. Separate statements for each fund category— governmental, proprietary, and fiduciary —are presented. The emphasis of fund financial statements is on major individual govern mental and enterprise fu nds, each of which is displayed in a separate column. All remaining go vernmental and enterprise funds are aggregated and reported as non-major funds.
42 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

1. SIGNIFICANT ACCOUNTING POLICIES (Continued)
Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities.

Major Funds – Governmental Accounting Standards Board requires that the City’s major governmental and business-type funds be identified and presented separately in the fund financial statements. All other funds, called non-major fu nds, are combined, and reported in a single column, regardless of their fund-type.

Major funds are defined as funds that have either assets, liabilities, revenues, or expenditures/expenses equal to ten percent of their fund-type total and five percent of the grand total. The General Fund is always a major fund. The City may also select other funds it believes should be presented as major funds.

The City reported the following major governmental funds in the accompanying financial statements:

General Fund is used for all the general revenues of th e City not specifically levied or collected for other City funds and the related expenditur es. The general fund accounts for all financial resources, which are not accounted for in another fund.

Federal Grants Fund – Accounts for various federal grants received by the City, with each grant segregated within the fund to account for speci fic grant allocations and expenditures for specific purpose, activity, or program.

Housing Authority Fund – Under a cooperation agreement w ith the former Redevelopment Agency, the Housing Authority will use resource s for purposes consistent with the California Health and Safety Code. The fund accounts for the activities financed by grants of the tax increment revenue from the former Redevelopment agency.

General Capital Projects Fund – Accounts for general fund or special revenue fund transfers expended for acquisition and construction of genera l purpose public facilities, street surfacing and improvements.

The City reported the following proprietary-enterprise funds as major funds in the accompanying financial statements:

Sewer Fund – Accounts for activities associated with sewage transmission and treatment.

Water Fund – Accounts for activities associated with distribution and transmission of potable water to users.
43 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

The City also reports the following fund types:

Internal Service funds

These funds account for workers’ compensation reim bursable costs, risk management expenses, self-insurance costs, other post-employment benefits; operation, maintenance and replacement of City-owned buildings, vehicles and mobile radio units and City information technology; all of which are provided to other departments on a cost-reimbursement basis.

Fiduciary funds

These funds account for assets held by the City in trust or as an agent for various assessment and community facilities districts, other governme ntal entities, and non-profits. The financial activities of these funds are excluded from the Government-wide financial statements, but are presented in separate Fiduciary Fund financial st atements. The Successor Agency to the Former Redevelopment Agency of the City of Hayward Pr ivate Purpose Trust Fund is used to account for the activities of the Redeve lopment Agency of the City of Hayward Successor Agency.

Custodial Funds report resources, not in a trust, th at are held by the City for other parties outside of the City’s reporting entity. The financial activities of these funds are excluded from the City- wide financial statement, but are presented in separate Fiduciary Fund financial statements.

Basis of Accounting – The government-wide, proprietary, and fiduciary fund financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.

Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this me thod, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within forty-five days after fiscal year-end.

Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they ha ve matured. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and acquisitions under capital leases are reported as other financing sources.

Non-exchange transactions, in which the City gi ves or receives value without directly receiving or giving equal value in exchange, include prop erty taxes, grants, entitlements, and donations.

On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants, entitlement s, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Other re venues susceptible to accrual include other taxes, intergovernmental revenues, interest, and charges for services. 44 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from non exchange transactions or ancillary activities.

Operating expenses are those expenses that are es sential to the primary operations of the fund.

All other expenses are reported as non-operating expenses.

Under the terms of grant agreemen ts, the City may fund certain programs with a combination of cost-reimbursement grants, categorical block grants , and general revenues. Thus, both restricted and unrestricted Net Position may be made available to finance program expenditures. The City’s policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary.

Certain indirect costs are included in program expenses reported for individual functions and activities.

As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this gene ral rule are charges between the government’s business-type activities and various other function s of the government. Elimination of these charges would distort the direct costs and program revenues re ported for the various functions concerned.

Deferred Outflows/Inflows of Resources – In addition to assets, the statement of net position or balance sheet reports 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 net pos ition or balance sheet reports 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.

Budgets and Budgetary Accounting – The City adopts an annual operating budget on or before June 30 for the ensuing fiscal year for all Funds, except for the Donation Special Revenue Fund and the Performance Deposits Capital Projects Fund . From the effective date of the budget, the amounts stated therein as proposed expenditures become appropriations to the various governmental fund types. The level of budgetary control within all governmental fund types is at the fund level. The City Council may amend the budget by resolution during the fiscal year. The City Manager may transfer appropriations from one program, activity, or object to another within the same fund without the approval of the City Council. All appropriations lapse at the end of the fiscal year to the extent they have not been expended or encumbered.

For the fiscal year ended June 30, 2021, the Ge neral Fund’s expenditures exceeded the budgeted appropriations by $1,231,678, due largely to excess ovterime costs related to the Fire department employees assisting with the wildfires and COVID 19- related expenditures.

45 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

All governmental fund type annual operating budge ts are presented on a basis consistent with generally accepted accounting principles (“GAAP”) except as follows:

• The City has several unrestricted subfunds it accounts for separately in its general ledger that are combined and included in General Fund amounts reported in the accompanying financial statements. However, for budgetary presentati on purposes, the City only reports its main operating fund. Other subfunds not included in the budgetary presentation are reported as perspective differences.

• The sole Special Revenue fund the City does not budget for is the Donation Special Revenue Fund. The City is unable to forecast the amount of donations received in a given year, and the amount of donations it will spend in the fiscal year.

Parts and Supplies of the governmental funds consist of expendable supplies held for consumption and are valued at cost (first-in, first- out). The cost is record ed as expenditure in the governmental funds at the time individual items are consumed. Reported supplies are offset by nonspendable or restricted fund balances indi cating that they do not constitute “available spendable resources” even though they are a co mponent of net current assets. Supplies of enterprise funds are valued at the lower of cost (first-in, first-out) or market. Supplies of the enterprise funds consist principally of material s and supplies for utility operations and are expensed or capitalized as such supplies are consumed.

Land held for Resale of $6,838,652 at June 30, 2021 was stated at the lowest of historical cost, net realizable value, or agreed-upon sales price if a disposition agreement has been made with a developer performing projects in accordance with the Redevelopment Plan of the former Redevelopment Agency of the City of Hayward.

Property taxes – Alameda County assesses properties and bills for and collects property taxes as follows:

Secured Unsecured

Valuation dates March 1 March 1
Lien/levy dates January 1 January 1
Due dates 50% on November 1 July 1
50% on February 1
Delinquent as of December 10 (for November) August 31 April 10 (for February)

The term “unsecured” refers to taxes on personal property other than land and buildings. These taxes are secured by liens on the property being taxed.

Property taxes levied are recorded as revenue an d receivables, net of estimated uncollectibles, in the fiscal year of levy.

46 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

1. SIGNIFICANT ACCOUNTING POLICIES (Continued)
Compensated Absences – The long-term portion of the liability for vested vacation, time off in lieu of overtime and sick pay for governmental f und type operations is recorded as compensated absences in the government-wide financial statem ents. The portion expect ed to be permanently liquidated (matured due to termination) is record ed in the governmental funds. Vested vacation and sick pay of proprietary fund type operations is recorded in the respective proprietary fund type. Compensated absences attributable to gove rnmental funds are typically liquidated by the General Fund. Compensated Absences are presented below as of June 30, 2021:

Governmental Business-type
Activities Activities Total
Beginning Balance $8,282,037 $1,229,137 $9,511,174
Additions 7,269,620 1,008,456 8,278,076
Payments (5,478,449) (588,370) (6,066,819)
Ending Balance $10,073,208 $1,649,223 $11,722,431
Current Portion $6,663,283 $789,459 $7,452,742
Special Assessment Debt – The City is considered to be “oblig ated in some manner,” as defined by Governmental Accounting Standards Board Statement No. 6, Accounting and Financial Reporting for Special Assessments, for certain special assessment district debt. The City is obligated for the special assessment debt if the City is required to purchase properties on which owners have failed to pay installments of assess ments as they fall due or is obligated to honor deficiencies to the extent that lien foreclos ures proceeds are insufficient. Those special assessment debt would be included in the government-wide financial statements (see Note 6), and special assessment transactions would be incl uded in the debt servic e funds to reflect the individual special assessment funds’ activities. There are other special assessment districts for which the City has no commitment to repay the de bt (see Note 8). Activities for these districts are reported in Custodial Funds.

Debt Defeasance And Refundings – In an advance refunding, ne w debt (termed refunding debt) is issued to provide the cash needed to refund old debt (termed refunded debt). Proceeds from the refunding debt are used to purchase U.S. government securities which are placed in a n
irrevocable trust with an escrow agent to provide for all future debt service on the refunded debt.

As a result, the refunded debt is considered de feased and is removed from the City’s financial statements. The City is amortizing the loss on debt defeasance over the life of refunding debt. 47 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

Fair Value Measurements – Fair value is defined as the price that would be received to sell an asset or paid to transfer a liab ility in an orderly transaction betw een market participants at the measurement date. The City categorizes its fa ir value measurements within the fair value hierarchy established by generally accepted accoun ting principles. The fair value hierarchy categorizes the inputs to valuatio n techniques used to measure fair value into three levels based on the extent to which inputs used in measuring fair value are observable in the market.

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 inputs are inputs – other than quoted prices included within level 1 – that are observable for an asset or liability, either directly or indirectly.

Level 3 inputs are unobservable inputs for an asset or liability.

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

Estimates and Assumptions – The preparation of financial st atements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of as sets and liabilities and disclosure of contingent assets and liabilities at the date of the financia l statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Policies – The City invests in individual investme nts and investment pools. Individual investments are evidenced by specific identifiable pieces of paper called securities instruments, or by an electronic entry registering the owner in the records of the institution issuing the security, called the book entry system. In order to maximize se curity, the City employs the Trust Department of a bank as the custodian of all City managed investments, regardless of their form.

New Governmental Accounting Standards Board Statement Pronouncements

GASB 84 – Fiduciary Activities - In January 2017, GASB is sued GASB Statement No. 84, Fiduciary Activities . The objective of this Statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. This Statement describes four fiduciary funds that should be reported, if applicable: (1) pension (and other employee benefi t) trust funds, (2) investment trust funds, (3) private-purpose trust funds, and (4) custodial funds. Custodial funds generally should report fiduciary activities that are not held in a trus t or equivalent arrangement that meets specific criteria. The provisions of this Statement were implemented during fiscal year 2021. As part of the implementation of this Statement, it was determined that the Af fordable Housing Agency Fund should be accounted for and reported as a Special Revenue Fund, which required the restatement of beginning net position of governmental-activitie s and the fund in the amount of $9,631,863. In addition, it was determined that the Local Impr ovement Districts Agency Funds, South Hayward BART Parking District JPA Agency Fund, and Other Agency Funds be accounted for and reported as Custodial Funds, which required the restatemen ts of beginning net position of the funds in the amounts of $4,039,848, $935,000, and ($101,647), respectively, totaling $4,873,201.

48 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

1. SIGNIFICANT ACCOUNTING POLICIES (Continued)
In addition, the City early implemented GASB No. 98 – The Annual Comprehensive Financial Report, which changed the name of the Comprehe nsive Annual Financial Report to Annual Comprehensive Financial Report.

2. CASH, CASH EQUIVALENTS AND INVESTMENTS
The City’s dependence on property tax receipts, wh ich are received semi-annually, requires it to maintain significant cash reserves to finance op erations during the remainder of the year. Th e City pools cash from all sources and all funds ex cept cash with fiscal agent so that it can be invested at the maximum yield, consistent with th e principles of safety and liquidity. Individual funds can make expenditures at any time.

The City’s investments are carried at fair va lue, as required by generally accepted accounting principles. The City adjusts the carrying value of it s investments to reflect their fair value at each fiscal year end, and it includes the effects of thes e adjustments in income fo r that fiscal year. In the City’s case, fair value equals market value since all of the City’s investments are readily marketable.

California Law requires banks and savings and loan institutions to pledge government securities with a market value of 110% of the City’s cash on deposit or first trust deed mortgage notes with a value of 150% of the City’s cash on deposit as collateral for these deposits. Under California Law this collateral is held in an investment po ol by an independent financial institution in the City’s name and places the City ahead of general creditors of the institution pledging the collateral. As of June 30, 2021, the City he ld no uncollateralized deposits under escrow agreements with construction contractors. Such deposits are permitted to be uncollateralized under the government code.

The City maintains a cash management pool that is available for use by all funds. Each fund type’s portion of the pool is sh own on the combined balance sheet as “Cash, cash equivalents, and investments” or “Due to other funds” (for cash overdrafts), as appropriate.

Classification – As of June 30, 2021, cash and invest ments were classified in the financial statements as shown below, based on whether or not their use is restricted under the terms of City debt instruments or Agency agreements.

Statement of Net Position
C ash, cash equi val ents, and i nvestm ents $456,433,719 C ash, cash equi val ents, and i nvestm ents wi th fi scal agents 8,787,856 Private Purpose Trust Fund
Cash and investm ents 3,241,624
C ash and i nvestm ents wi th fi scal agents 20
Custodial Funds
Cash and investm ents 4,725,081
C ash and i nvestm ents wi th fi scal agents 353,843
Total Cash and Investm ents $473,542,143
49 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

2. CASH, CASH EQUIVALENTS AND INVESTMENTS (Continued)
Cash and investments as of June 30, 2021 consisted of the following:

Cash in bank $133,680,345
Cash on hand (Petty Cash) 3,175
Investments 339,858,623
Total Cash and Investments $473,542,143
Cash and investments are used in preparing Prop rietary Fund statements of cash flows because these assets are highly liquid and are expended to liquidate liabilities arising during the year.

Investments Authorized by the California Government Code and the City’s Investment Policy – The City’s Investment Policy and the California Government Code allow the City to invest in the following, provided the credit ra tings of the issuers are accept able to the City; and approved percentages and maturities are not exceeded. The table below also identifies certain provisions of the California Government Code or the City’s Investment Policy where it is more restrictive:

Authorized Investment Type
Maximum
Maturity
Minimum Credit
Quality *
Maximum
Percentage
of Portfolio
Maximum
Investment in
One Issuer
U.S. Treasury Notes/Bills 5 years None 100% 100%
U.S. Agency Securities (fully backed) 5 years None 100% 40% U.S. Agency Securities (mortgage-backed) 5 years None 100% 20% Banker's Acceptance 180 days A-1 40% 5%
Commercial Paper 270 days A-1 40% 5%
Negotiable Certificates of Deposit 5 years A 30% 5%
Repurchase Agreements 1 year None 20% 20%
Medium-Term Notes 5 years A 30% 5%
Money Market Funds N/A AAAm 20% 10%
Alameda County Investment Pool None None 10% 10%
Shares of Beneficial Interest Issued by a JPA None AAAm 100% N/A California Local Agency Investment Fund None None $75M per account N/A Collateralized Certificates of Deposit 5 years None 25% 20% Municipal Bonds 5 years A 20% 5%
Supranationals 5 years AA 30% 30%
Asset-Backed Securities 5 years AA 20% 5%
* Minimum credit quality at time of purchase.
50 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

2. CASH, CASH EQUIVALENTS AN D INVESTMENTS (Continued)

Investments Authorized by Debt Agreements – The City must maintain required amounts of cash and investments with trustees or fiscal agents under the terms of certain debt issues. These funds are unexpended bond proceeds or ar e pledged reserves to be used if the City fails to meet its obligations under these debt issu es. The California Government Co de requires these funds to be invested in accordance with City resolutions, bond indentures or State statutes. The table below identifies the investment types that are authorized for investments held by fiscal agents. The bond indentures contain no limitations for the ma ximum investment in any one issuer or the maximum percentage of the portfolio that may be invested in any one investment type. The table also identifies certain provisions of these debt agreements:

Authorized Investm ent Type Max im um Maturity
M in imu m Cred it
Quality
U.S. Treas ury Notes /Bills No Limit No Limit
U.S. Agency Securities (fully backed) No Limit No Limit U.S. Agency Securities (mortgage-backed) No Limit None to AAA Money Market Mutual Funds No Lim it AAm to AAAm -G
Collateralized Certificates of Depos its None to 1 year None to A-1+ FDIC Insured Deposits No Limit No Limit
Investment Agreements No Limit None to two
Highest Categories
Commercial Paper None to 270 days A-1 to A-1+
State General Obligations No Limit A/A2 to Two
Highest Categories
Municipal Obligations No Limit AAA to Two
Highest Categories
Federal Funds or Bankers Acceptances 180 days to 1 year A-1 to A-1+ Repurchase Agreem ents None to 30 days None to A
Pre-funded Municipal Bonds No Lim it AAA
California Local Agency Investm ent Fund No Lim it No Lim it

51 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

2. CASH, CASH EQUIVALENTS AN D INVESTMENTS (Continued)

Fair Value Hierarchy – The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounti ng principles. The hier archy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs.

The following is a summary of the fair value hier archy of the fair value of investments of the City as of June 30, 2021:

Level 1 Level 2 Total
I nv estm ents b y F air Value:

U.S. Treasury Notes $41,722,495 $41,722,495
U.S. Agency Securities $45,279,614 45,279,614
Medium-Term Notes 12,081,602 12,081,602
Municipal Bonds 16,124,589 16,124,589
Supranationals 3,569,404 3,569,404
Asset-Backed Securities 5,610,122 5,610,122
Total Investments at Fair Value $41,722,495 $82,665,331 124,387,826 I nv estm ents M easured at Am ortized Cost:

Money Market Mutual Funds 9,141,717
California Local Agency Investment Fund 201,377,786
Certificates of Depos it 4,951,294
Total Investments $339,858,623
Investm ent Type

U.S. Treasury Notes classified in Level 1 of th e fair value hierarchy are valued using quoted prices in active markets. U.S. Agency Secu rities, Medium-Term Notes, Municipal Bonds, Supranationals and Asset-Backed Securities, classifi ed in Level 2 of the fair value hierarchy, are valued using pricing techniques of matrix pric ing or market corroborated pricing, with inputs such as yield curves or indices. These prices are obtained from various pricing sources by our custodian bank. Fair value is defi ned as the quoted market value on the last trading day of the period.

Interest Rate Risk – Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investme nt. Normally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City generally manages its interest rate risk by holding investments to maturity. 52 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

2. CASH, CASH EQUIVALENTS AN D INVESTMENTS (Continued)

Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of th e City’s investments by maturity or earliest call date:

Investm ent Type 12 Months or less
13 Months to 24
Months
25 Months to 60
Months Total
U.S. Treasury Notes $15,767,414 $25,955,081 $41,722,495 U.S. Agency Securities $5,390,567 25,705,815 14,183,232 45,279,614 Money Market Mutual Funds 9,141,717 9,141,717
California Local Agency Investment Fund 201,377,786 201,377,786 Medium-Term Notes 1,706,035 10,375,567 12,081,602
Municipal Bonds 1,999,560 7,308,339 6,816,690 16,124,589 Supranationals 2,198,353 1,371,051 3,569,404
Certificates of Deposit 1,582,190 3,369,104 4,951,294
Asset-Backed Securities 833,134 4,776,988 5,610,122
Total Investments $219,491,820 $56,888,194 $63,478,609 339,858,623 Cas h in Banks 133,680,345
Cash on Hand (Petty Cash) 3,175
Total Cash 133,683,520
Total Cash and Investm ents $473,542,143

The City is a participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under th e oversight of the Treasurer of the State of California. The City reports its investment in LA IF at the fair value amount provided by LAIF, which is the same as the value of the pool shar e. The balance is available for withdrawal on demand, and is based on the accounting records ma intained by LAIF, which are recorded on an amortized cost basis. Included in LAIF’s investment portfolio are collateralized mortgage obligations, mortgage-backed securities, other asset-backed securities, loans to certain state funds, and floating rate securities issued by federal ag encies, government-sponsored enterprises, United States Treasury Notes and Bills, and corporations . At June 30, 2021, these investments had an average maturity of 291 days.

Money market funds are available for withdraw al on demand and at June 30, 2021, had an average maturity of 1 day.

53 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

2. CASH, CASH EQUIVALENTS AN D INVESTMENTS (Continued)

Credit Risk – Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating or ganization. Presented below is th e minimum rating required by (where applicable) the California Government Co de, the City’s investme nt policy, or debt agreements, and the actual rating as of June 30 , 2021 for each investment type as provided by Moody’s investment rating system (as of date of purchase):

Investment Type AAAm/AAA AA1 - AA3 A1 - A 3 P-1 Not Rated Total U.S. Treasury Notes $41,722,495 $41,722,495
U.S. Agency Securities 45,279,614 45,279,614
Money Market Mutual Funds 9,141,717 9,141,717
California Local Agency Investment Fund $201,377,786 201,377,786 Medium-Term Notes $624,026 $11,457,576 12,081,602
Municipal Bonds 3,237,840 11 ,094,279 1,792,470 16,124,589 Supranationals 3,569,404 3,569,404
Certificates of Deposit 2,891,872 477,232 $1,582,190 4,951,294 Asset-Backed Securities 5,610,122 5,610,122
Total Investments $108,561,192 $14,610,177 $ 11,934,808 $1,582,190 $2 03,170,256 $339,858,623

Custodial Credit Risk – Investments – For an investment, this is the risk that, in the event of the failure of the counterparty, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. Significant investments in the securities of any individual issuers, other than U. S. Treasury securities or mutual funds would be subjected to this risk. As of June 30, 2 021, the following investments were subjected to custodial credit risk on the entity-wide level.

Investm ent Reported
Issuer Type Am ount
Federal Home Loan Mortgage Company U.S. Agency Securities $26,349,372

3. LOANS RECEIVABLES

In order to carry out low-and-moderate housing programs, the Housing Authority Capital Project Fund loaned to homebuyers and third-party contractors for the purposes of promoting home ownership in the City and developing low and moderate income housing.

The City also pools certain funds received fro m the U.S. Department of Housing and Urban Development and the State of California Depart ment of Housing and Community Development, and administrative fees received from owners of multifamily projects funded by mortgage revenues bonds sponsored by the City. These moni es are loaned to businesses, nonprofit and for for-profit housing developers and to qualified first-time homebuyers for the above purposes.

54 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

3. LOANS RECEIVABLES (Continued)
Related Party Loan – The City entered into a loan agreemen t with the City Manager on June 30, 2017, to provide the City Manager a long-term loan of $616,599 to finance the acquisition of the City Manager’s personal residence located within the City. The loan is secured by a deed of trust on the property. The loan was funded by the City ’s Water Enterprise Fund. The loan is due upon sale of the property, within twelve months after the termination of the City Manager’s employment with the City, or 30 years from the da te of the loan agreemen t execution, whichever occurs first. The loan bears an interest rate at 2.38% for the first five years of the loan. Interest thereafter will be set annually and shall accrue at a simple rate equal to the Yield at Market achieved by the City’s Managed Portfolio for th e quarter ended on June 30 of the previous calendar year, plus 100 basis points or 1%, but
shall not exceed 6%. At J une 30, 2021, the loan
was paid off.

4. INTERFUND TRANSACTIONS
Transfers Between Funds – With Council approval, resources may be transferred from one City fund to another. Transfers between funds during the fiscal year ended June 30, 2021 were as follows:

FROM FUND: TO FUND: AMOUNT:

G eneral Fund G eneral Capital Projects Fund $215,000 A Non-Major G overnm ental Funds 8,618,043 B
Water Enterprise Fund 137,741 B
Internal Service Funds 7,710,895 B
Housing Authority Capital Projects Fund G eneral Fund 3,897 C Internal Service Funds 4,262 D
Non-Major G overnmental Funds G eneral Fund 327,050 B General Capital Projects Fund 750,000 A
Internal Service Funds 42,617 D
Sewer Enterprise Fund General Fund 823,783 C
Water Enterprise Fund 410,000 B
Internal Service Funds 433,977 D
Water Enterprise Fund General Fund 1,229,099 C
Non-Major Enterprise Funds 600,000 A
Internal Service Funds 386,560 D
Non-Major Enterprise Funds General Fund 310,217 C Non-Major G overnm ental Funds 15,000 A
Sewer Enterprise Fund 3,115,520 A
Internal Service Funds 124,549 D
Internal Service Funds Internal Service Funds 251,568 B $25,509,778
A To fund capital projects.

B To fund debt service, capital projects and adm inistrative overhead.

C To fund allocation of adm inistrative overhead.

D To fund General Liability Internal Service Fund for insurance. 55 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

4. INTERFUND TRANSACTIONS (Continued)
Current Interfund Balances
Current interfund balances arise in the normal course of business and are expected to be repaid shortly after end of the fiscal year. At June 30, 2021 interfund balances were as follows:

Due from Other Funds Due To Other Funds Amount
G eneral Fund Non-Major G overnm ental Funds $1,790,879 Sewer Enterprise Fund Non-Major Enterprise Funds 136,051 $1,926,930
Long-Term Interfund Advances – At June 30, 2021, the funds below had made advances that were not expected to be repaid within the next year.

Long-Term Long-Term
Interfund Interfund
Receivable Payable
General Fund $3,015,479
Water Enterprise Fund $3,015,479
Total $3,015,479 $3,015,479
In fiscal year 2014, the Water Enterprise Fund loaned $3,420,000 to th e General Fund for costs related to a new fire station and firehouse clinic. This loan bears 2% inte rest and repayments are made semiannually every December 1 st and June 1 st. As of June 30, 2021, the outstanding loan balance was $3,015,479.

Internal Balances – Internal balances are pres ented only in the Government-wide financial statements. They represent the net interfund receivable and payables remaining after the elimination of all such balances within governmental and business-type activities. 56 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

5. CAPITAL ASSETS

Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at ac quisition value. All other capital assets are valued at historical cost or estimated historical co st if actual historical cost is not available. The City’s policy is to capitalize all assets with costs exceeding $5,000 and with useful lives exceeding two years.

GASB Statement 34 requires that all capital assets with limited useful lives be depreciated over their estimated useful lives. The purpose of depreciation is to spread the cost of capital assets equitably among all users over the life of the assets. The amount charged to depreciation expense each year represents that year’s pro rata share of the cost of capital assets.

Depreciation is provided using the straight lin e method which means the cost of the asset is divided by its expected useful life in years and the result is charged to ex pense each year until the asset is fully depreciated. The City begins depreciation on July 1 st of the year following
acquisition. The City has assigned the useful lives listed below to capital assets.

Buildings and improvements 10 – 50 years
Improvements other than Buildings 25 years
Machinery and equipment 7 – 50 years
Streets 25 – 40 years
Traffic Signals 20 years
Medians 25 – 40 years
Conduits 20 years
Drains 20 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. 57 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

5. CAPITAL ASSETS (Continued)

Capital Asset Additions and Retirements – Capital assets at June 30 comprise:

Balance Balance
June 30, 2020 Additions Retirements Transfers June 30, 2021 Governmental activities:

Capital assets not being depreciated:

Land $18,950,817 $18,950,817
Construction in progress 47,562,563 $25,932,369 ($30,907,066) 42,587,866 Total capital assets not being depreciated 66,513,380 25,932,369 (30,907,066) 61,538,683 Capital assets being depreciated:

Buildings and improvements 105,272,078 273,560 ($426,672) 105,118,966 Improvements other than buildings 27,964,607 (395,980) 30,635,061 58,203,688 Machinery and equipment 64,582,587 2,987,511 (974,714) 272,005 66,867,389 Streets 343,271,158 343,271,158
Traffic signals 7,993,603 7,993,603
Medians 3,724,705 3,724,705
Conduits 1,540,569 1,540,569
Drains 2,994,000 2,994,000
Total capital assets being depreciated 557,343,307 3,261,071 (1,797,366) 30,907,066 589,714,078 Less accumulated depreciation for:

Buildings and improvements 31,543,562 2,121,920 (426,666) 33,238,816 Improvements other than buildings 9,906,689 1,443,223 (208,676) 11,141,236 Machinery and equipment 41,282,122 3,564,588 (937,861) 43,908,849 Streets 107,321,981 9,087,469 116,409,450
Traffic signals 6,600,168 250,172 6,850,340
Medians 2,333,784 93,118 2,426,902
Conduits 1,521,540 9,928 1,531,468
Drains 2,416,292 117,500 2,533,792
Total accumulated depreciation 202,926,138 16,687,918 (1,573,203) 218,040,853 Net depreciable assets 354,417,169 (13,426,847) (224,163) 30,907,066 371,673,225 Governmental activity capital assets, net $420,930,549 $12,505,522 ($224,163) $433,211,908

58 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

5. CAPITAL ASSETS (Continued)
Balance Balance
June 30, 2020 Additions Transfers June 30, 2021
Business-type activities:

Capital assets not being depreciated:

Land $4,757,492 $4,757,492
Construction in progress 48,041,965 $6,001,914 ($34, 344,866) 19,699,013 Total capital assets not being depreciated 52,799,457 6,001,914 (34,344,866) 24,456,505 Capital assets being depreciated:

Buildings and improvements 36,759,292 36,759,292
Machinery and equipment 46,631,878 453,502 29,741,600 76,826,980 Sewer pipelines and infrastructure 126,188,988 179,134 126,368,122 Water pipelines and infrastructure 67,392,025 3,967,353 71,359,378 Airport hangars, tarmacs and other
infrastructure assets 28,131,955 456,779 28,588,734
Total capital assets being depreciated 305,104,138 453,502 34,344,866 339,902,506 Less accumulated depreciation for:

Buildings and improvements 21,812,938 643,464 22,456,402 Machinery and equipment 20,242,057 1,901,884 22,143,941 Sewer pipelines and infrastructure 64,729,159 3,850,017 68,579,176 Water pipelines and infrastructure 40,717,387 1,839,275 42,556,662 Airport hangars, tarmacs and other
infrastructure assets 19,937,957 703,803 20,641,760
Total accumulated depreciation 167,439,498 8,938,443 176,377,941 Net depreciable assets 137,664,640 (8,484,941) 34,344,866 163,524,565 Business-type activity capital assets, net $190,464,097 ($2,483,027) $187,981,070 Governmental capital assets construction in prog ress was composed of the following at June 30, 2021:

Project Expended to
Budget June 30, 2021 Committed
Buildings $69,780,000 $15,505,883 $54,274,117
Improvements other than buildings 85,151,897 23,251,304 61,900,593 Machinery and equipment 5,291,066 2,657,442 2,633,624
Streets 41,513,000 1,173,237 40,339,763
Total $201,735,963 $42,587,866 $159,148,097
59 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

5. CAPITAL ASSETS (Continued)

A summary of enterprise fund construction in progress at June 30, 2021 follows:

Project Ex pended to
Budget June 30, 2021 Committed
Sewer Enterprise Fund $36,665,425 $5,085,571 $31,579,854 Water Enterprise Fund 27,842,277 14,055,239 13,787,038
Airport Enterprise Fund 3,763,000 558,203 3,204,797
Total $68,270,702 $19,699,013 $48,571,689

Sewer facilities constructed for the sole use of the City by EBDA, including construction in progress, are included in capital assets at their full construction cost.

Construction Commitments – The government has active construction projects as of June 30, 2021.

The projects include construction in areas for newly developed housing and the library. At year end, the government’s commitments for these projects are as follows:

Remaining
Project Spent-to-Date Commitment
Measure A1 - Development of 259 units of Affordable Housing $1,130,351 $9,169,649 21st Century Library and Community Learning Center and Heritage Plaza Arboretum Project 65,636,629 43,371
Fire Station 6 and Training Center Project 23,446,440 36,953,560

Capital Asset Contributions – Some capital assets may be ac quired using Federal and State grant funds, or they may be contributed by developers or other governments. GAAP requires that these contributions be accounted for as revenues at the time the capital assets are contributed.

Depreciation Allocation – Depreciation expense was charged to functions and programs based on their usage of the related assets. The amounts allocated to each function or program were as follows:

Governmental Activities
G eneral G overnm ent $1,238,691
Public Safety 9,414,060
Public Works and Transportation 1,282,705
Library and Com m unity Services 701,846
Econom ic Developm ent 120,481
Planning and Building 571,782
Maintenance Services 365,142
Internal Service Funds 2,993,211
$16,687,918
Business-Type Activities
Sewer Fund $5,576,099
Water Fund 2,385,415
Stormwater Fund 165
Airport Fund 976,764
$8,938,443

60 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

6. LONG-TERM DEBT
The City’s long-term debt issues and transactions are summarized below:

Authorized Balance Balance
Type of and at June 30, at June 30, Current
Obligation Issued 2020 Retirements 2021 Portion
Governmental Activity Debt:

Certificates of Participation
2015 COP (a), 3.0-5.0%, due 12/31/34 $67,535,000 $61,865,000 $3,050,000 $58,815,000 $3,205,000 Add: Original issue premium 5,689,046 4,491,354 299,422 4,191,932 Total Certificates of Participation 66,356,354 3,349,422 63,006,932 3,205,000 Direct Borrow ings:

Priv ate Placement Certificates of Participation
2016 Refunding COP (a), 2.6-2.76%, due 11/1/2026 19,813,775 12,669,751 1,669,884 10,999,867 1,715,567 Add: Original issue premium 876,695 557,895 79,700 478,195 Lease Revenue Bonds
ABAG Series 2001-2 (a), 3.0-5.0%, due 12/01/2020 3,589,835 80,000 80,000 Loan Payable
Energy Efficiency Loan (a), 1%, due 12/22/2023 2,488,880 948,478 267,259 681,219 270,129 Private Placement Loan
2014 Fire Station #7 and Wellness Center
Private Placement Loan (a), 2.84%, due 8/1/2029 5,500,000 3,747,485 348,885 3,398,600 358,863 Total Direct Borrowings 18,003,609 2,445,728 15,557,881 2,344,559 Subtotal 84,359,963 5,795,150 78,564,813 5,549,559
Direct Borrow ings:

Internal Serv ice Fund Long-Term Debt (b)
Capi tal Leas es - Equi pment
Energy Upgrades and Solar Project, 3%, due 06/22/2021 887,152 93,308 93,308 Capital Leases - Fleet
Fire Engines

3.240%, due 10/22/2020 1,906,413 118,984 118,984
Fire Engines

3.05%, due 1/17/2024 824,000 359,776 85,904 273,872 88,542 Fire Truck

2.92%, due 6/15/2025 1,272,000 682,014 128,611 553,403 132,394 Total Capital Lease Obligations (Direct Borrowings) 1,254,082 426,807 827,275 220,936 Subtotal 1,254,082 426,807 827,275 220,936
Total Governmental Activity Debt $85,614,045 $6,221,957 $79,392,088 $5,770,495 61 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

6. LONG-TERM DEBT (Continued)
Authorized Balance Balance
Type of and at June 30, at June 30, Current
Obligation Issued 2020 Additions Retirements 2021 Portion Business-type Activity Debt
Dire ct Borrowings :

Private Placement Revenue Bonds
2013 Water Revenue Refunding Loan (c),

2.76%, due 5/1/2025 $7,245,000 $3 ,245,000 $615,000 $2,630,000 $630,000 Loan Payable
Energy Efficiency Loan (c), 3%, due 6/22/2025 2,450,000 1,004,299 189,083 815,216 194,799 Energy Efficiency Loan (c), 1% due 6/22/2038 2,150,955 2,150,955 103,544 2,047,411 111,073 State Water Resource Control Board Loan 2006
1%, due 9/30/2028 (d) 54,550,018 24, 549,615 2,727,501 21,822,114 2,727,501 State Water Resource Control Board Loan 2019
1%, due 03/31/2049 (d) 21,227,086 11,08 1,276 $4,701,217 451,162 15,331,331 459,214 Total Business-type Activity Debt (Direct Borrowings) $42,031,145 $4,701,217 $4,086,290 $42,646,072 $4,122,587 Debt service payments are generally made from the following sources:
(a) Revenues recorded in the General Fund.
(b) Operating revenues recorded in the Internal Service Funds. (c) Operating Revenues from the Water Enterprise Fund and Airport Enterprise Fund. (d) Operating revenues recorded in the Sewer Enterprise Fund.

Even as a charter city, Hayward has adopted a comprehensive debt management policy that guides the issuance and management of City debt. The policy includ es establishing the legal debt limits (per State law this equates to 15% of assessed value of all r eal and personal property of the City); identifying the types of debt that can be issued and purposes fo r which debt proceeds can
be used; establishing financial limits affecting debt issuance; and identifying guidelines regarding the structuring of debt (such as term). At the end of fiscal year 2021, the City had total debt outstanding of $122 million, which complies with , and is significantly under, the current policy limits.

Certificates of Participation (COPs)
2015 Certificates of Participation – On October 1, 2015, the C ity issued $67,535,000 in Certificates of Participation (2015 COPs) to acquire and construct a number of capital improvements, including a new library and community learning center, improvements to existing fire stations, and street rehabilitation and repairs. The 2015 COPs bear interest at 3% to 5% and are due serially each November 1. Interest payments are due semi-annually on May 1 and November 1, through maturity in 2034.
62 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

6. LONG-TERM DEBT (Continued)
2016 Refunding Certificates of Participation (Private Placement) – On June 1, 2016, the Hayward Public Financing Author ity issued Certificates of Pa rticipation (2016 COPs) in the amount of $19,813,775. The proceeds of the lease obligation were used to refund the 2007 Certificates of Participation. As a result, the refunded bonds are considered to be defeased and the liability has been removed from the statement of Net Position.

The lease obligation is payable each November from 2016 to 2026, in amounts ranging from $850,000 to $2,021,009 and bear interest at rate s ranging from 2.6% to 2.76%. Interest is payable semiannually on May 1 and November 1.

The bond covenants of the Certificates of Particip ation contain events of default that require t he revenue of the City to be applie d by the Trustee as specified in the terms of the agreement if any of the following conditions occur: default on debt service payments; the fa ilure of the City to observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or competent jurisdiction shall assume custody or control of the City. 2001 ABAG Lease Revenue Bonds
In fiscal year 2002, the City issued $7,475,000 principal amount of ABAG Lease Revenue Bonds, Series 2001-2 (2001-2 Bonds), the proceeds of which were used to finance the cost of acquiring capital assets and to refund and retire various capital lease and certificates of participation obligations. This bifurcated Bond issue is repayable from governmental funds, the Equipme nt Management Internal Service Fund, the Sewer En terprise Fund, and the Water Enterprise Fund and as a result, the principal balance of the 2001-2 Bonds has been prorated and recorded in each of the above funds and activities. As of June 30, 2021, bonds re payable from the City were paid off.

Energy Efficiency Loan
In fiscal year 2014, the City issued a $2,488 ,880 loan for the Energy Conservation Assistance Program, funded by the California Infrastructur e and Economic Development Bank. The loan will finance an Energy Savings Project that cons ists of streetlight retrofitting. The loan bears interest at 1% and payments are to be made bi-annually on June 22 and December 22 of each year until 2023.
63 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

6. LONG-TERM DEBT (Continued)

2014 Fire Station #7 and Wellness Center Private Placement Loan

The City entered into a loan agreement with Umpqua Bank in the amount of $5,500,000 on August 1, 2014. Loan proceeds will be used to fund the design and construction of a Firehouse Wellness Clinic at Fire Station # 7. This loan bears interest of 2.84%. Principal and interest payments are payable semiannually on February 1 and August 1, commencing February 1, 2015 through maturity on August 1, 2029.

Capital Lease Obligations

The City has entered into various capital lease agreements to acquire property, miscellaneous computer mainframe equipment, and various City vehicles. All of the lease agreements require annual payments.

2013 Water Revenue Refunding Private Placement Loan

The City issued Water Revenue Refunding Bonds of $7,245,000 on August 13, 2013, to defease the City’s outstanding Public Financing Authority 1996 Revenu e Bonds, and to refund 2001 Water System Improvement Project Certificat es of Participation and 2004 Water System Improvement Project Certificates of Participation. As a result, the refund ed bonds are considered to be defeased and the liability has been remo ved from the statement of Net Position. The 2013 Water Revenue Refunding Bonds are secured by a pl edge of net revenues of the water system.

The Bonds bear interest at a rate per annum at 2.76%. Principal payments are payable May 1.

Interest payments are payable semiannually on May 1 and November 1, commencing May 1, 2014 through maturity on May 1, 2025.

The pledge of future Water Fund Revenues ends upon repayment of the $2.81 million in remaining debt service on the bonds which is sche duled to occur in fiscal year 2025. For fiscal year 2021, Water Fund Revenues including oper ating revenues, non-operating interest earnings and transfers in amounted to $62.9 million and operating costs including operating expenses, but not interest, depreciation or amortizations amounte d to $46.7 million. Net Revenues available for debt service amounted to $16.4 million, which represented coverage of 23.3 times over the $704,562 in debt service.

The loan agreement contains events of default that require the reve nue of the City to be applied by the Trustee as specified in the terms of the agreement if any of the following conditions occur:
default on debt service payments; the failure of the City to observe or perform the conditions, covenants, or agreement terms of the debt; bankr uptcy filing by the City ; or if any court or competent jurisdiction shall assume custody or cont rol of the City. The cove nant also contains a subjective acceleration clause that allows the trus tees or holders, who hold the majority of the aggregate principal amount of the notes, to accel erate payment of the entire principal amount outstanding and interest accrued to become immediately due if th ey determine that a material adverse change occurs.
64 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

6. LONG-TERM DEBT (Continued)

Energy Efficiency Loan

In fiscal year 2011, the City was issued a $2,450,000 loan from th e Energy Conservation Assistance Program, issued by the California In frastructure and Economic Development Bank.

The loan will finance an Energy Savings Project that consists of 1 MW Tracking Photovoltaic System on the City’s Water Pollution Control Facility. The loan bears interest at 3% and payments are to be made bi-annually on June 22 and December 22 of each year until 2025.

Energy Efficiency Loan

In fiscal year 2020, the City was issued a $2,150,955 loan from th e Energy Conservation Assistance Program, issued by the California In frastructure and Economic Development Bank.

The loan will finance an Energy Savings Proj ect that consists of the Ground Mounted Photovoltaic System installed on City owned property. The loan bears interest at 1% and payments are to be made bi-annually on June 22 and December 22 of each year until 2038.

State Water Resources Control Board Loans

In June 2006, the City entered into a loan agreement with the State of California’s State Water Resources Control Board for the purpose of fi nancing the Wastewater System Improvement Project. Under the terms of the contract, the Ci ty agreed to repay $54,550,018 to the State in exchange for receiving $45,458,167 in proceeds used to fund the Project. The difference between the repayment obligation and proceeds amounts to $9,091,852 upon issue and represents in- substance interest on the outstanding balance. As of June 30, 2021, the City’s gross repayment obligation totaled $21,822,114 an d had a corresponding interest expense for $2,727,501. The repayments of the loan are due annually on September 30, commenced September 30, 2009.

In October 2018, the City entered into a loan agreement with the State of California’s State Water Resources Control Board for the purpose of fi nancing the Recycled Water Project. Under the terms of the contract, the City agreed to repay $ 21,227,086 plus interest to the State in exchange for receiving $27,058,436 in proceeds used to fund the project. The difference between the repayment obligation and proceeds represents a grant from the State on the outstanding balance.

As of June 30, 2021, the City has drawn down $15,669,071. As of June 30, 2021, the City’s estimated gross repayment obli gation totaled $15,331,331 and had a corresponding interest expense for $2,540,842. The loan bears interest at 1% and payments are due annually on January 31 of each year commencing in 2021 until 2050.

65 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

6. LONG-TERM DEBT (Continued)
Debt Service Requirements
At June 30, 2021, annual debt service requiremen ts to maturity for long-term debt, including interest payments, were as follows:

Ye ar Endi ng
June 30: Principal Interest Principal Interest
2022 $3,205,000 $2,214,563 $2,565,495 $371,500
2023 3,365,000 2,050,313 2,629,175 310,628
2024 3,530,000 1,877,938 2,558,278 248,167
2025 3,710,000 1,715,488 2,392,615 186,834
2026 3,855,000 1,564,188 2,306,723 126,760
2027 - 2031 21,295,000 5,862,551 3,454,675 111,754
2032 - 2035 19,855,000 1,720,275
Totals 58,815,000 $17,005,316 15,906,961 $1,355,643
Plus unamortized premium 4,191,932 478,195
Total Long-term debt principal, net $63,006,932 $16,385,156 Governmental Activities -
2015 Certificates of Particip ation
Governmental Activities -
Direct Borrow ings
Business-T yp e Activ ities
Direct Borrow ings
Ye ar Endi ng
June 30: Principal Interest
2022 $4,122,587 $268,190
2023 4,153,260 240,129
2024 4,185,006 210,443
2025 4,207,139 179,818
2026 3,320,007 150,372
2027 - 2031 11,237,217 661,783
2032 - 2036 3,208,402 505,986
2037 - 2041 2,973,415 347,164
2042 - 2046 2,852,568 205,467
2047 - 2050 2,386,471 59,957
Totals $42,646,072 $2,829,309
Defeased Bonds
As of June 30, 2021, outstanding balances fo
r defeased debt were $960,000 for the 2001 Water
System Improvement Project Certificates of Participation and $11,500,000 for the 2007 Refunding Certificates of Participation.
66 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

7. LEASING ARRANGEMENTS
Certificates of Participation, Lease Revenue Bond s and Capital Leases are issued for the purpose of financing the construction or acquisition of projects defined in each leasing arrangement.

Projects are leased to the City for lease payments which, together with unspent proceeds of the leasing arrangement, will be sufficient to meet the debt service obligations of the leasing arrangement. At the termination of the leasing arrangement title to the project will pass to the City.

Leasing arrangements are similar to debt; they allow investors to participate in a share of guaranteed payments, which are made by the City. Because they are similar to debt, the present value of the total of the payments to be made by the City is recorded as long-term debt. The City’s leasing arrangements are included in long term obligations discussed in the preceding note.

8. SPECIAL ASSESSMENT DEBT WITHOUT CITY COMMITMENT
The City has sponsored special assessment debt issues under which it has no legal or moral liability with respect to repayment of the debt and therefore does not include this debt in the City’s Governmental Activities. A summary of such debt follows:

In June 1999 the Local Impr ovement District No. 17, Twin Bridges Community Park, issued Limited Obligation Improvement Bonds in the or iginal principal amount of $396,014 to finance improvements within the District. Outstanding debt at June 30, 2021 was $105,000.

In October 2013, the Community Facilities Distri ct No. 1, Eden Shores issued Special Tax Refunding Bonds, Series 2013, in the original principal amount of $7,076,294 refunding the 2002 Special Tax Bonds. Outstanding debt for the 2013 Bonds at June 30, 2021 was $4,925,776.

9. NET POSITION AND FUND BALANCES
Net Position – Net Position is the excess of all the City ’s assets and deferred outflows over all its liabilities and deferred inflows, regardless of fund . Net Position are divided into three captions.

These captions apply only to Net Position, and are described below:

Net Investments in Capital Assets describes the portion of Net Position which is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets and related deferred inflows.

Restricted describes the portion of Net Position which is restricted as to use by the terms and conditions of agreements with outside partie s, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter. These principally include the following:

Public Safety Activities – These Net Position s are restricted for activities pertaining to the rehabilitation or reconstruction of pave ment, repair of or installation of new

sidewalks, maintenance of or improvements to the City's streetlights and traffic signals, as well as other improvements to the City's infrastructure. Such projects primarily draw their funding from Special Revenue Program s operated by the City, including State Gasoline Tax, Alameda County Measure B, and various local, state, and federal grants.

Debt Service Activities – These Net Positions are restricted for the use of debt service related activities.
67 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

9. NET POSITION AND FUND BALANCES (Continued)
Public Works and Transportations Activities – These Net Positions are restricted for grants received by the City for the specific activities involving em ergency response and responding to other emergency and other pu blic safety calls for service from the community.

Planning and Buildings Activities – These Ne t Positions are restricted managing the development of Hayward in order to assure the economic and environmental health of the community, and to protect the health and safety of the community through building inspection, enforcement of codes and standards, and by providing new housin g
opportunities for residents of the City.

Economic Development Activities – These Net Positions are restricted by state law to housing redevelopment activities of the City of Hayward.

Unrestricted describes the portion of Net Position which is not restricted as to use.

Fund balance – Governmental fund balances represent the net current assets of each fund. Net current assets generally represent a fund’s cash and receivables, less its liabilities.

The City’s fund balances are classified in acco rdance with Governmental Accounting Standards Board Statement Number 54 (GASB 54), Fund Balance Reporting and Governmental Fund Type Definitions, which requires the City to classify its fund balances based on spending constraints imposed on the use of resources. Each category in the following hierarchy is ranked according to the degree of spending constraint:

Nonspendables represents balances set aside to i ndicate items do not represent available, spendable resources even though they are a compon ent of assets. Fund balances required to be maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such as prepaids, notes receivable, 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 requir ed to be presented as a component of the applicable category.

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 a specific purpose. Nonspendable amounts subject to restrictions are included along with spendable resources.

Committed fund balances have constraints imposed by formal action of the City Council which may be altered only by the reso lutions of the City Council. No nspendable amounts subject to council commitments are included along with spendable resources.

Assigned fund balances are amounts constrained by th e City’s intent to be used for a specific purpose, but are neither restricted nor committed. In accordance to the City’s fund balance policy, intent is expressed by the City Council or its designee and may be changed at the discretion of the City Council. This category includes nonspendables, when it is the City’s intent to use proceeds or collections for a specific purpose, and residu al fund balances, if any, of Special Revenue, Capital Projects and Debt Service Funds which have not been restricted or committed. 68 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

9. NET POSITION AND FUND BALANCES (Continued)
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.

Fund balance flow assumptions – Sometimes the City will fund ou tlays for a particular purpose from both restricted and unrestricted resources (t he total of committed, assigned, and unassigne d fund balance). In order to calculate the amounts to report as rest ricted, committed, assigned, and unassigned fund balance in the governmental fu nd financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted fund balance to have been depleted before using any of t he components of unrestricted fund balance. Furt her, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.

Minimum Fund Balance Policies – The City’s Budget and Fiscal Policy requires the City to strive to maintain a prudent leve l of financial resources to protec t against reducing service levels or raising taxes and fees because of temporar y revenue shortfalls or unpredicted one time expenditures. These resources also provide a fi rst defense against deficit spending and hel p maintain liquidity when budgeted drawdowns are inevitable. The reserve may be used at the City Council’s discretion to addres s temporary cash flow shortage s, emergencies, unanticipated economic downturns, and one time opportunities . These resources are intended to provide flexibility to respond to unexpected opportunities that may help the City of Hayward achieve its goals. The use of these funds may also be tied to an adverse change in economic indicators to ensure that the funds are not depleted before an emergency arises.

It is the policy of the City of Hayward to esta blish and maintain adequate financial reserves in order to avoid the negative effects of economic cycles upon essential services to the public and t o assure that annual fluctuations in revenue recei pts do not impede the City’s ability to meet its expenditure obligations.

During periods of economic sufficiency, these reserv es shall be used as a source of supplemental revenue through prudent investments and earnings under policies of the City Council and for meeting short term cash flow deficiencies. During periods of economic downturns, whe n revenues fail to meet the normal operating requi rements of essential public services, or when need for reserves temporarily exceeds receipts, these designations may, upon the recommendation of the City Manager and the authorization of the City Council, be used in accordance with the standards set forth herein.

Under GASB 54, such reserves are includable in Unassigned fund bala nce when the usage is predicated on general circumstances which are expected to routinely occur. 69 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

9. NET POSITION AND FUND BALANCES (Continued)

The General Fund Balances are detailed below and described along with the minimum balance target and purpose:

Balance at
June 30, 2021
Nonspendables:

Items not in spendable form:

Long-term loans to Private Purpose Trust $4,436,442
Deposits, parts, supplies and other 5,981
Total Nonspendable Fund Balances 4,442,423
Assigned :

Capital projects 256,170
Measure C District sales tax 30,061,751
Total Assigned Fund Balances 30,317,921
U nassigned :

Desi gnations:

Liquidity 31,431,063
T otal U nassigned Fund Balances 31,431,063
Total Fund Balances $66,191,407

• Liquidity: Minimum balance equal to greater of $2 .5 million or 5% of the annual general fund operating appropriations.

This reserve is to address short-term borrowing needs the City may encounter. Certain major revenues of the general fund are passed thr ough other government agencies, state, and county. The City cannot control the timing of when they make payments to the City.

• In October 2014, the Citizens of Hayward appr oved the Measure C District Sales Tax, a general tax. Fund balances related to this Measure have been assigned.

Deficit Fund Balances – As of June 30, 2021, the following funds had a deficit:

The Recycling Enterprise Fund reported a de ficit of $278,350 at June 30, 2021 due to expenditures related to the recycling program. Th is deficit is expected to be eliminated with future revenues.

The General Liability Internal Service Fund reported a deficit of $2,893,511 at June 30, 2021 due to a larger than expected claims adjustment at the end of fiscal year 2021. This deficit is expected to be eliminated with future internal service fund charges.

70 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

10. ACCRUED

RECLAMATION COSTS
To comply with regulatory requirements impo sed by the California Regional Water Quality Control Board and the Alameda County Department of Environmental Health, the City expects to incur reclamation costs associated with an aban doned 60 acre landfill site. Such costs represent placing an 18-inch vegetative cover over the landf ill site as well as ongoing monitoring costs.

Annually the City expects to incu r $125,000 in expenses relate d to reclamation costs for the site.

These expenses will be funded by oper ating revenue of the Sewer Enterprise Fund.

Reclamation payments totaled $191,309 for the year ended June 30, 2021. Reclamation costs are accrued in the Sewer Enterprise Fund. Actual cost s may be higher due to inflation, changes in technology, or changes in State or Federal regulations.

11. DEFERRED COMPENSATION PLAN
City employees may defer a portion of their compensation under a City sponsored Deferred Compensation Plan created in accordance with In ternal Revenue Code Section 457. Under this plan, participants are not taxed on the deferred portion of their compensati on until distributed to them. Distributions may be made only at termin ation, retirement, death, or in an emergency defined by the Plan.

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. Sin ce 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.

12. PENSION PLANS
General Information about the Pension Plans
Plan Descriptions – All qualified permanent and proba tionary employees are eligible to participate in the City’s separate Safety (pol ice and fire) and Miscellaneous (all other) Plans, agent multiple-employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and City resolutio n. CalPERS issues publicly available reports that include a full description of the pension pl ans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

Benefits Provided – CalPERS provides service retirement a nd 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 cr edited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 wit h
statutorily reduced benefits. All members are el igible for non-duty disabi lity 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 sp ecified by the Public Employees’ Retirement Law. The Pension Reform Act of 2013 (PEPRA), Assembly Bill 340,
is applicable to em ployees new to CalPERS
and hired after December 31, 2012.
71 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

12. PENSION PLANS (Continued)

The Plans’ provisions and benefits in effect at June 30, 2021, are summarized as follows:

Classic Tier I PEPRA
Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 2.5% @ 55 2.0% @ 62
B enefi t vesti ng schedul e 5 years servi ce 5 years servi ce Benefit paym ents m onthly for life m onthly for life
Retirement age 50 - 55 52 - 67

2.0% - 2.50% 1.0% - 2.5%
Required em ployee contribution rates 8.00% 6.25%
Required employer contribution rates (A) 10.276% 10.276% Classic Tier I PEPRA
Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 3.0% @ 50 2.7% @ 57
B enefi t vesti ng schedul e 5 years servi ce 5 years servi ce Benefit paym ents m onthly for life m onthly for life
Retirement age 50 50 - 57

3.0% 2.0% - 2.7%
Required em ployee contribution rates 9.0% 10.50%
Required employer contribution rates (A) 19.294% 19.294% Classic Tier I PEPRA
Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 3.0% @ 50 2.7% @ 57
B enefi t vesti ng schedul e 5 years servi ce 5 years servi ce Benefit paym ents m onthly for life m onthly for life
Retirement age 50 50 - 57

3.0% 2.0% - 2.7%
Required em ployee contribution rates 9.0% 13.00%
Required employer contribution rates (A) 23.224% 23.224% (A) Rates represents blended combination rates
Safety - Police
Monthly benefits, as a % of eligible com pensation
Monthly benefits, as a % of eligible com pensation
Monthly benefits, as a % of eligible com pensation
Miscellaneous
Safety - Fire

72 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

12. PENSION PLANS (Continued)
Employees Covered
– The following employees were covered by the benefit terms for each Plan as of the most recent actuarial valuation date of June 30, 2019 and measurement date of June 30, 2020:

Miscellaneous Safety-Fire Safety - Police
Inactive employees or beneficiaries currently receiving benefits 917 188 342 Inactive employees entitled to but not yet receiving benefits 712 24 64 Active employees 521 125 179
Total 2,150 337 585
Employees’ Retirement Law requir es that the employer contri bution 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. Fund ing contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfund
ed accrued liability. The City is required to
contribute the difference between the actuarially determined rate and the contribution rate of employees.

Net Pension Liability
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 Plans and additions to/deductions from the Plans’ fiduci ary net position have been determined on the same basis as they are reported by the CalPER S Financial Office. For this purpose, benefit payments (including refunds of employee contri butions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

The City’s net pension liability for each Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2020, using an annual actuarial valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. A summary of principal as sumptions and methods used to determine the net pension liability is shown below. 73 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

12. PENSION PLANS (Continued)

Actuarial Assumptions – For the measurement period ende d June 30, 2020, the total pension liabilities were determined by rolling forward th e June 30, 2019 total pens ion liability. The June 30, 2019 and June 30, 2020 total pension liabi lities were based on the following actuarial methods and assumptions:

All Plans
Valuation Date June 30, 2019
Measurement Date June 30, 2020
Actuarial Cost Method Entry-Age Normal Cost Method
Actuari al Assum pti ons:

Discount Rate 7.15%
Inflation 2.50%
Payroll Growth 2.75%
Projected Salary Increase V aries by Entry Age and Service Investment Rate of Return 7.15% (1)
Mortality Derived using CalPERS
Membership Data for all Funds (2)
Post Retirement Benefit Increase Contract COLA up to 2.50% until Purchasin g Power Protection
Allowance Floor on Purchasin g
Power applies, 2.50% thereafter
(1) Net of pension plan investment expenses, including inflation (2) The mortality table used was developed based on CalPERS' specific data. The table includes 15 years of projected mortality improvements using Society of Actuaries Scale 90% of scale MP 2016.

For more details on this table, please refer to the CalPERS Experience Study and review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website.

Discount Rate – The discount rate used to measure the total pension liability for each Plan was

7.15%. The projection of cash flow s used to determine the discount rate for each Plan assumed that contributions from all plan members in the Public Employ ees Retirement Fund (PERF) will be made at the current member contribution rate s and that contributions from employers will be made at statutorily required rates, actuaria lly determined. Based on those assumptions, each Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan member s for all plans in the PERF. Ther efore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability for each Plan.

The long-term expected rate of return on pe nsion 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 pensio n plan investment expense and in flation) are developed for each major asset class.

74 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

12. PENSION PLANS (Continued)

In determining the long-term expected rate of re turn, 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 cla sses, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building- block approach. Using the expected nominal retu rns 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 pr esent value of benefits for cash flows as the one calculated using both sh ort-term and long-term returns. The expected rate of return was then set equivalent to the si ngle equivalent rate calculated above and adjusted to account for assumed administrative expenses.

The table below reflects the long-term expected real rates of return by asset class. The rate of return was calculated using the capital market as sumptions applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses.

Asset C l ass (a)
New
Strategic
Allocation
Real Return
Years 1 - 10(b)
Real Return
Y ears 11+ ( c)
Global Equity 50.0% 4.80% 5.98%
Fixed Income 28.0% 1.00% 2.62%
Inflation Assets 0.0% 0.77% 1.81%
Private Equity 8.0% 6.30% 7.23%
Real Assets 13.0% 3.75% 4.93%
Liquidity 1.0% 0.00% -0.92%
Total 100%
(a) In the CalPERS Com prehensive Annual Financial Report, Fix ed Incom e is included in G lobal Debt Securities; Liquidity is included in Short-term Investm ents; Inflation Assets are included in both G lobal Equity Securities and G lobal Debt Securities. (b) An ex pected inflation of 2.0% used for this period. (c) An ex pected inflation of 2.92% used for this period.

75 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

12. PENSION PLANS (Continued)

Changes in the Ne t Pension Liability

The changes in the Net Pension Liability for each Plan follow:

Miscellaneous Plan:

Increase (Decrease)
Total Pens ion
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(As s et)
Balance at June 30, 2019 $481,839,301 $317,296,264 $164,543,037 Changes in the year:

Service cost 8,254,476 8,254,476
Interes t on the total pens ion liability 3 3,774,340 33,774,340 Differences between actual and expected experience (481,002) (481,002) Contribution - employer 12,993,586 (12,993,586)
Contribution - employee 5,503,016 (5,503,016)
Net investment income 15,793,925 (15,793,925)
Adm inistrative ex penses (447,310) 447,310
Benefit paym ents, including refunds of em ployee
contributions (26,234,280) (26,234,280)
Net changes 15,313,534 7,608,937 7,704,597
Balance at June 30, 2020 $497,152,835 $324,905,201 $172,247,634 Safety - Fire Plan:

Increase (Decrease)
Total Pens ion
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(As s et)
Balance at June 30, 2019 $310,426,355 $193,595,194 $116,831,161 Changes in the year:

Service cost 5,558,671 5,558,671
Interes t on the total pens ion liability 2 2,013,653 22,013,653 Differences between actual and expected experience 3,298,871 3,298,871 Contribution - employer 9,191,715 (9,191,715)
Contribution - employee 2,851,797 (2,851,797)
Net investment income 9,590,927 (9,590,927)
Adm inistrative ex penses (272,922) 272,922
Benefit paym ents, including refunds of em ployee
contributions (17,242,575) (17,242,575)
Net changes 13,628,620 4,118,942 9,509,678
Balance at June 30, 2020 $324,054,975 $197,714,136 $126,340,839

76 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

12. PENSION PLANS (Continued)

Safety - Police Plan:

Increase (Decrease)
Total Pens ion
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2019 $413,600,435 $254,568,696 $159,031,739 Changes in the year:

Service cost 8,079,098 8,079,098
Interest on the total pension liability 29,217,195 29,217,195 Differences between actual and ex pected ex perience 2,096,406 2,096,406 Contribution - employer 13,842,327 (13,842,327)
Contribution - employee 3,749,712 (3,749,712)
Net investment income 12,710,839 (12,710,839)
Adm inistrative ex penses (358,879) 358,879
Benefit paym ents, including refunds of em ployee
contributions (22,208,581) (22,208,581)
Net changes 17,184,118 7,735,418 9,448,700
Balance at June 30, 2020 $430,784,553 $262,304,114 $168,480,439 Combined Total $1,251,992,363 $784,923,451 $467,068,912

The long-term portion of the governmental activities Net Pension Liability is liquidated primarily by the General Fund.

Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability of the City for each Plan, calculated using the discount rate for each Plan, as well as what the City’s 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:

Miscellaneous Safety-Fire Safety-Police
1% Decrease 6.15% 6.15% 6.15%
Net Pens ion Liability $234,729,299 $169,002,589 $227,135,351 Current Discount Rate 7.15% 7.15% 7.15%
Net Pens ion Liability $ 172,247,634 $126,340,839 $168,480,439 1% Increase 8.15% 8.15% 8.15%
Net Pens ion Liability $120,412,060 $91,172,543 $120,475,666

Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

77 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

12. PENSION PLANS (Continued)
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2021, the City recognized pension expense of $60,249,504. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Miscellaneous Plan:

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $14,580,046 Differences between actual and expected experience 1,457,041 ($296,001) Changes in assum ptions
Net differences between projected and actual earnings on plan investm ents 2,318,298
Total $18,355,385 ($296,001)
Safety Plan - Fire:

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $10,135,787 Differences between actual and expected experience 3,984,198 ($59,630) Changes in assumptions 2,961,363 (543,411) Net differences between projected and actual earnings on plan investm ents 1,473,971
Total $18,555,319 ($603,041)
Safety Plan - Police:

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $14,979,710 Differences between actual and expected experience 3,674,375 ($209,151) Changes in assumptions (300,360)
Net differences between projected and actual earnings on plan investm ents 1,963,238
Total $20,617,323 ($509,511)
Combined total $57,528,027 ($1,408,553)
78 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

12. PENSION PLANS (Continued)

$39,695,543 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liabi lity in the subsequent fiscal period. Other amounts reported as deferre d outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Miscellaneous Plan:

Y ear Ended Annual
June 30 Am ortization
2022 ($122,294)
2023 671,873
2024 1,616,513
2025 1,313,246
Total $3,479,338
Safety Plan - Fire:

Y ear Ended Annual
June 30 Am ortization
2022 $3,068,709
2023 1,388,114
2024 1,662,312
2025 1,452,995
2026 244,361
Total $7,816,491
Safety Plan - Police:

Y ear Ended Annual
June 30 Am ortization
2022 $380,006
2023 2,030,814
2024 1,656,098
2025 1,061,184
Total $5,128,102
All Plans (Misc., Fire and Police)
Y ear Ended Amortization
June 30 Am ount
2022 $3,326,421
2023 4,090,801
2024 4,934,923
2025 3,827,425
2026 244,361
Total $16,423,931

79 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

13. PUBLIC AGENCY RETIREMENT SYSTEM

The Omnibus Budget Reconciliation Act of 1990 (OBRA) mandates that public sector employees who are not members of their employer’s existing retirement system as of January 1, 1992 be covered by either Social Secur ity or an alternative plan. Effe ctive January 1, 1992, the City contracted with the Public Agency Retirement Sy stem (PARS), a defined contribution plan. This Plan covers part-time, seasonal, and temporar y employees and all employees not covered by another retirement system. All eligible employees covered by the Plan are fully vested. The benefits a participant will receive depend on contributions. Employer liabilities are limited to the amount of current contributions.

As approved by Council, PARS participants cont ribute 3.75% and the City contributes 3.75% of salary each pay period. Contributions made by an employee and the employer vest immediately.

No forfeitures were noted during the current period.

For the fiscal year ending June 30, 2021, total contributions of $12,058 were made based on a total amount of covered compensation of $322,791.

14. OTHER POSTEMPLOYMENT BENEFITS

Provisions and Benefits

OPEB Healthcare The City participates in the Calif ornia Employers' Retiree Benefit Trust (CERBT), an agent multiple-employer plan ad ministered by CalPERS, consisting of an aggregation of single-employer plans.

By City Council resolution the City provides certain health care benefits for employees who retire directly from the City with at least five years of service with the City and who are vested in the California Public Employees Retirement System (CalPERS). The City participates in the CalPERS health care plan which is governed un der the California Public Employees Health and Medical Care Act (PEMCHA). Required retiree medi cal plan contributions are also governed by PEMCHA for member agencies.

The City contributes up to a fixed dollar amoun t for retiree medical benefits, which varies by employee bargaining group and coverage level as governed by PEMCHA. Benefits continue for surviving spouses in amounts as required by PEMCHA. Should an eligible retiree opt out of the CalPERS medical plan, they will receive $139 to $143 per month in lieu of contributions to the CalPERS plan.

Employees Covered

Membership in the plan consisted of the follow ing at June 30, 2019 (latest actuarial valuation date):

Active em ployees 821
Inactive employees or beneficiaries currently
receiving benefit payments 624
Inactive employees entitled to but not yet
receiving benefit payments 246
Total 1,691

80 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

14. OTHER POSTEMPLOYMENT BENEFITS (Continued)
Net OPEB Liability
Actuarial Methods and Assumptions –
The City’s net OPEB liability was measured as of June
30, 2020 and the total OPEB liability used to calcu late the net OPEB liability was determined by an actuarial valuation dated June 30, 2019 that was rolled forward to determine the total OPEB liability, based on the following actuarial methods and assumptions:

Actuarial Ass umptions
Valuation Date June 30, 2019
Measurement Date June 30, 2020
Actuarial Cost Method Entry Age Norm al Cost Method
Actuarial Ass umptions:

Discount Rate 6.90%
Inflation 2.50%
Payroll G rowth 3.00%
Investm ent Rate of Return 6.90%
Mortality Rate The mortality improvement scale was updated from MacLeod Watts Scale 2017 to MacLeod Watts Scale 2018.

Pre-Retirement Turnover Must retire from PERS on or after age 65 with at least 10 years of service.

Healthcare 4% to 5.40%
The long-term expected rate of return on OP EB plan investments was determined using a building-block method in which expected future r eal rates of return (expected returns, net of OPEB plan investment expense and inflation) ar e developed for each major asset class. These ranges are combined to produce the long-term exp
ected rate of return by weighting the expected
future real rates of return by the target asse t allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:
1-10 Year
Target Ex pected Real
Asset Class Allocation Rate of Return
Global Equities 59.0% 4.80%
Fixed Income 25.0% 1.10%
Global Real Es tate (REITs ) 8.0% 3.20%
Treasury Inflation Protected Securities 5.0% 0.25%
Commodities 3.0% 1.50%
Total 100.0%
Discount Rate – The discount rate used to measure th e total OPEB liability was 6.9%. The projection of cash flows used to determine the disc ount rate assumed that City contributions will be made at rates equal to the actuarially de termined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net positi on was projected to be available to make all projected OPEB payments for current active and in
active employees and beneficiaries. Therefore,
the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability. 81 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

14. OTHER POSTEMPLOYMENT BENEFITS (Continued)

Changes in Net OPEB Liability- The changes in the Net OPEB Liability follows:

Total OPEB Plan Fiduciary Net OPEB
Liab ility Net Position Liab ility/(Asset)
(a) (b) (a) - (b)
Balance at June 30, 2019 $87,567,141 $8,292,420 $79,274,721 Changes Recognized for the Measurem ent Period:

Service Cost 2,213,810 2,213,810
Interest on the total OPEB liability 5,048,226 5,048,226 Differences between expected and actual experience 364,141 (364,141) Changes of assumptions (10,988,323) (10,988,323)
Contributions from the employer 7,455,802 (7,455,802)
Contributions from the employee (374,055) 374,055
Net investment income 647,884 (647,884)
Adm inistrative ex penses (4,528) 4,528
Benefit payments (4,882,802) (4,882,802)
Net changes (8,609,089) 3,206,442 (11,815,531)
Balance at June 30, 2020 (Measurement Date) $78,958,052 $11,498,862 $67,459,190 Increase (Decrease)

Sensitivity of the Net OPEB Liability

The following presents the net OPEB liability, as well as what the net OPEB 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 discount rate:

Net OP EB Liability/(Asset)
Discount Rate -1% Discount Rate Discount Rate +1%

5.90% 6.90% 7.90%
$77,110,408 $67,459,190 $59,404,029

The following presents the net OPEB liability, as well as what the net OPEB liability would be if it were calculated using a healthcare cost trend rate that is 1-percentage-point lower or 1-percentage- point higher than the current rate:

Net OP EB Liability/(Asset)
Healthcare Cost
1% Decrease Trend Rates 1% Increase

4.40% 5.40% 6.40%
$59,836,364 $67,459,190 $77,130,628

82 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

14. OTHER POSTEMPLOYMENT BENEFITS (Continued)
OPEB Expenses and Deferred Outflows/Inflows of Resources Related to OPEB For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s OPEB Plan and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis as they are reported by the California Employers’ Retiree Benefit Trust (CERBT). For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

For the year ended June 30, 2021, the City recognized OPEB expense of ($1,583,862). At June 30, 2021, the City reported defe rred outflows and inflows of resources related to OPEB from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Em ployer contributions m ade subsequent to the m easurem ent date $6,795,404 Changes of assum ptions ($36,172,015)
Difference between Ex pected and Actual Ex perience 1,844,529 Net difference between projected and actual earnings on investments (306,024)
Total $8,639,933 ($36,478,039)
$6,795,404 reported as deferred outflows of resource s related to contributions subsequent to the measurement date will be recognized as a reduction of the OPEB liability in the year ended June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as part of OPEB expense as follows:

Year Annual
Ended June 30 Amortization
2022 ($8,576,600)
2023 (8,551,910)
2024 (6,810,760)
2025 (6,524,677)
2026 (3,515,088)
Thereafter (654,475)
Total ($34,633,510)
83 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

15. RISK MANAGEMENT

The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omission; injuri es to employees; natural disasters. The City is self-insured for its general liability, workers’ compensation, malpra ctice liability, and general and auto liability.

The City has chosen to establish risk financing internal service funds wh ere assets are set aside for claim settlements associated with the above risks of loss up to certain limits.

Type of Cov erage Self Insurance Cov erage and Limits
General Liability $0 - $1,000,000 per occurrence $0- $25,000,000 Workers' compensation $0 - statutory limits None
Property $0 - $500,000 per occurrence $250,000 - $1,000,000,000 Cyber $0 - $100,000 per occurrence $500,000 - $45,000,000 Boiler and machinery $0 - $350,000 per occurrence $2,000,000 - $100,000,000 Airport None $25,000 - $50,000,000
Pollution $0- $75,000 per pollution condition $10,000,000 - $50,000,000

Amounts in excess of the insured limits are self-insured.

In fiscal year 2004, the City did not renew its workers’ compensation insurance coverage and instead elected to self-insure all workers’ compensation claims.

The City is a member of the Exclusive Risk Management Authority of California JPA (formally known as CA Risk Management Authority) for general municipal liability insurance coverage.

Self-Insurance – The City records estimated liabilities for general liability claims filed or expected to be filed as part of the accrued liabilities in the General Liability Fund (internal service fund). Charges to the General Fund and other fu nds are determined from an analysis of self- insured claim costs and recorded as transfers from such funds to the General Liability Fund.

The City records estimated liabilities for workers’ compensation claims filed or expected to be filed as part of the accrued liabilities in the Workers’ Compensation Insurance Fund (internal service fund). Premiums are paid to the Insurance Fund by all other funds and are available to pay claims, claim reserves, and administrative costs of the program.

Property damage risks are covered on an occurren ce basis up to the deductibles listed above by commercial insurance, Driver Alliant Insurance Se rvices Inc., purchased from independent third parties. All properties are insured at full replacement values. During the past three years there have been no significant reductions in any of the Ci ty’s insurance coverage and no settlement amounts have exceeded insurance coverage.

The unpaid workers’ compensation claims liabil ities included in the Worker's Compensation Insurance Internal Service Fund are based on the results of an actuarial study and include amounts for claims incurred but not report ed. Claim liabilities are calcul ated considering the effects of inflation, recent claim settlement trends incl uding frequency and amount of payouts and other economic and social factors. In addition, the liability is discounted using an annual interest rate of 2%.

84 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

15. RISK MANAGEMENT (Continued)

Changes in the balances of claims liabilities, including a provis ion for claims in curred but not reported, during the past two fiscal years are as follows:

G eneral Workers' Totals, as of June 30
Liability Com pensation 2021 2020
Balance, beginning of year $5,334,199 $15,434,582 $20,768,781 $21,388,426 Current year claim s and changes
in estimates 4,042,535 1,296,191 5,338,726 5,050,063
Claims paid (2,412,222) (3,110,790) (5,523,012) (5,669,708) Balance, end of year $6,964,512 $13,619,983 $20,584,495 $20,768,781

GASB #10 requires the City to accrue a liability on its financial statements for the ultimate cost of claims and expenses associated with all reporte d and unreported claims, including allocated loss adjustment expense and unallocated loss adjust ment expenses. GASB #10 does not prohibit the discounting of losses to recognize investment in come. The City’s estimated minimum liability at June 30, 2021 is $20,584,495. This amount is net of the allowable adjustment to recognize investment income.

16. JOINT POWERS AGREEMENTS

In March 2013, agencies of Alameda County ente red into a Joint Powers Agreement creating the Energy Council to further the efforts of the Alameda County Waste Management Authority (ACWMA) in efforts to seek funding, develop a nd implement sustainable energy initiatives that reduce energy demand, increase energy efficiency, and advance the use of clean efficient and renewable resources in the region for the benefit of the member ag encies. No debt, liability, or obligation of the Energy Council shall constitute a debt, liability of obligation of the City of Hayward pursuant to Government Code section 6508.1 and the terms of the agreement. The Energy Council shall be governed by the Board, consisting of one memb er from each governing body of each member agency. The financial activities for the Energy Council are not included in the accompanying financial statements as it is administered by a board separate from and independent of the City.

The East Bay Dischargers Authority (“EBDA”) wa s established in 1974 und er the Joint Exercise of Powers Act of the State of California by th e Cities of Hayward and San Leandro, and the Ora Loma, Castro Valley, and Union Sanitary Dist ricts for the purpose of planning, acquiring, constructing, managing, and operating common use and individual wastewater treatment and disposal facilities for the member agencies. Th e governing body of EBDA consists of five members, one appointed by each of the member agencies. The City exercises a weighted vote of

20.7% of the total vote. As a separate legal entity, EBDA exercises full powers and authorities within the scope of the Joint Po wers Agreement. Obligations and liabilities of EBDA are not those of the member agencies.

85 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

16. JOINT POWERS AGREEMENTS (Continued)

The financial activities for EBDA are not included in the accompanying financial statements as it is administered by a board separa te from and independent of the City. Transactions with and the investment in the joint powers agency are accounted for as follows:

a) Payments related to the services which the City received during fiscal year 2021 amounted to $811,956 and are recorded as materials, supplies and services expenses.

b) Payments related to the City’s long-term investment in the joint powers agency, for which the City has the ability to exercise significant influence over operating and financial policies, are recorded as an investment in the East Bay Di schargers Authority under the equity method.

The City’s equity approximates one-third of th e total net position of EBDA and amounts to $10,382,103 at June 30, 2020, the latest date for which financial information is available.

The investment in East Bay Dischargers Authority is valued as of June 30 , 2020, the latest date for which financial information is available.

Summary financial information as of and for the year ended June 30, 2020 (the most recent audited financial information available) for EBDA’s common use operations was as follows:

Assets
Current $3,769,080
Capital assets - net 28,856,838
Total Assets 32,625,918
Deferred outflow of resources 1,443,088
Total $34,069,006
Liabilities $2,740,851
Deferred inflow of resources 181,845
Net Position 31,146,310
Total $34,069,006
Revenues $5,767,363
Expenses (5,364,073)
Non-operating revenues 70,036
Non-operating expenses (114,277)
Change in Net Position $359,049

86 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

17. COMMITMENTS AND CONTINGENCIES
Litigation
The City is a defendant in several lawsuits arisin g from its normal operations. City manageme nt is of the opinion that the potential claims against the City not covered by insurance resulting from such litigation would not materially affect the basic financial statements of the City.

Bay Area Water Supply and Conservation Agency Revenue Bonds Surcharge The City contracts with the City and County of San Francisco for the purchase of water from the Hetch Hetchy System operated by the San Franci sco Public Utilities Commission (SFPUC). The City is also a member of the Bay Area Wate
r Supply and Conservation Agency (BAW SCA)
which represents the interests of all the 24 citie s and water districts, as well as two private utilities, that purchase wholesale water from the SFPUC.

In 2009 the City entered into a new 25-year agreement with the SFPUC. One of the ways that the new agreement differs from the old is in how fac ilities constructed by the SFPUC that benefit the regional customers are treated from a rate and fi nancial perspective. Under the old agreement, facilities were built, capitalized, and added to the ra te base with a rate of return (interest), and then paid for over their useful lives through wholesale rates. Under the new agreement, the SFPUC issues revenue bonds and the debt service (whi ch also includes an interest component) is paid for through rates over the life of the bonds.

During the transition from the old to the new cont racts, one of the issues addressed was how to deal with the $370 million in assets that were still being paid for by the wholesale customers under the old agreement. The assets were transfer red to the new agreement, assigned a life with an agreed upon rate of return of 5.13%. Also negotiated was a provision to allow the wholesale customers to prepay any remaining existing asse
ts’ unpaid principal bala nce without penalty or
premium. This prepayment was executed th rough the issuance of bonds by BAWSCA which provide a better interest rate given the favorable rate environment.

BAWSCA issued Revenue Bonds in the principal amount of $335,780,000 in January 2013 to prepay the capital cost recovery payment obligat ion and fund a stabilization fund. The Bonds mature in October 2034 and are secured by surc harges to the monthly water purchase charges imposed upon the participating members. The Bonds are not a debt obligation of any member, and BAWSCA’s failure to pay its Bonds would not constitute a default by any participating member.

Should any participating member fail to pay its share, BAWSCA will rely on the stabilization fund and will pursue all legal remedies to collect the shortfall from the delinquent member. In t he
interim, other participating members may have th eir portion adjusted to insure the continued payment of the debt service surcharge.

The risk of bearing the debt service expense of a defaulting member is not significantly different than the risk each member assumes currently for fl uctuations in water purchase charges. Under the Bond indenture, BAWSCA maintains a stabilization fund. If surcharge revenues collected are less than needed (due to a member’s failure to pay timely), BAWSCA uses the stabilization fund to fund the debt service deficiency, and increases the surcharge in the subsequent year to make up for the prior year shortfall and reimburse the stab ilization fund account. Also, given that each participating agency’s governing body adopted a Resolution to pa rticipate in the Bond issue, Management believes that default is generally very unlikely. 87 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

17. COMMITMENTS AND CONTINGENCIES (Continued)
The annual debt service surcharges are a fixed amount for each pa rticipant and are calculated by taking the subsequent fiscal year’s debt servic e, multiplied by each pa rticipant’s actual water purchase as a percent of total wholesale customer water purchases from the prior fiscal year.

One-twelfth of the annual surcharge is included in the monthly bill from SFPUC. Because each participant’s share of the debt service surcharge is proportional to the amount of water purchased during the prior fiscal year, the City’s share of the debt service will fluctuate from year to year.

The City paid its surcharge of $2,772,684 duri ng fiscal year 2021, which is included as a component of purchased water expenses in the Water Enterprise Fund. The surcharge for fiscal year 2022 is estimated to be $2,521,752.

18. CONDUIT DEBT WITHOUT CITY COMMITMENT
On March 26, 1998, the City assi sted in the issuance of $9,500,0 00 in Variable Rate Demand Multifamily Housing Revenue Bonds, Series 1998A for the purpose of providing funds to make a loan to Santa Clara Associates, LLC to provide permanent financing for a multifamily rental housing project known as the Timbers Apartments Project. Interest on the bonds is payable monthly commencing April 1, 1998. Principal on the Bonds is due March 1, 2023. The City has no legal or moral commitment for the repayment of these bonds.

On August 15, 2001, the City sponsored the i ssuance of the City of Hayward Variable Rate Demand Multifamily Housing Revenue Bonds (L ord Tennyson Apartmen ts), 2001 Series A which were issued in the aggregate principal am ount of $6,450,000 to assist a developer in financing the acquisition and rehabilitation of a 96-unit multifamily complex located in Hayward.

Repayments for the loan are requi red to be made by the developer. The City has no legal or moral liability with respect to the payment of this debt.

On January 6, 2004 the City sponsored the issu ance of the second supplement of the 1984A City of Hayward Variable Rate Demand Multifamily Housing Revenue Bonds, (Shorewood Apartment Project) which were issued in the aggregate principal amount of $33,100,000 to refinance prior bonds used to fi nance the acquisition and construc tion of a 544-unit multifamily rental housing complex. Repayments for the loan
are required to be made by the developer. The
City has no legal or moral liability with respect to the payment of this debt.

On April 1, 2005, the City sponsored the i ssuance of City of Hayward Multifamily Housi ng Revenue Bonds (Lord Tennyson Apartments) 2005 Series A and 2005 Series A-T which were issued in the aggregate principal amount of $14,625 ,000 to finance the acquisition, rehabilitation, and development of multifamily rental housing fa cilities. The City has no legal or moral liability with respect to the payment of this debt.

On October 1, 2005, the City sp onsored the issuance of City of Hayward Multifamily Housi n g
Revenue Bonds (Las Casitas of Hayward) 2005 Series A which were issued in the aggregate principal amount of $6,325,000 to finance the acq uisition, rehabilitation, and development of multifamily rental housing facilities. The City has no legal or mora l liability with respect to the payment of this debt.
88 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

18. CONDUIT DEBT WITHOUT CITY COMMITMENT (Continued)

On November 28, 2006, the City sponsored th e issuance of Multi-Family Housing Revenue Bonds (Saklan Family Housing Deve lopment) 2006 Series A which were issued in the aggregate principal amount of $14,000,000 to assist in the construction and de velopment 78-unit Saklan Family Housing project. The City has no legal or moral liability with respect to the payment of this debt.

On November 10, 2014, the C ity sponsored the issuance of City of Hayward Multifamily Housing Revenue Bonds (South Hayward BART Family and Senior Affordable Apartments) 2014 Series A which were issued in the aggregate principal amount of $32,261,046 to assist in the acquisition and construction of a 150-unit multifamil y rental housing facility. The City has no legal or moral liability with respect to the payment of this debt.

19. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY

ACTIVITIES

Redevelopment Dissolution

Effective January 31, 2012, the Re development Agency was dissol ved. Certain assets of the Redevelopment Agency Low and Moderate Income Housing Fund were distributed to a Housing Successor; and all remaining Redevelopment Agency assets and liabilities were distributed to a Successor Agency.

Under the provisions of AB 1484, the City can el ect to become the Housing Successor and retain the housing assets. The City initially declined to become the Housing Successor, however after other agencies refused to assume the responsibi lity, the City elected to become the temporary Housing Successor and on February 1, 2012, certain housing assets were transferred to the City’s Housing Authority Capital Projects Fund.

The City also elected to become the Succe ssor Agency and on February 1, 2012 the Redevelopment Agency’s remaining assets were distributed to and liabilities were assumed by the Successor Agency. ABx1 26 requires the esta blishment of an Oversight Board to oversee the activities of the Successor Agency and one was established on April 30, 2012. The activities of the Successor Agency are subject to review and approval of the Oversight Board, which is comprised of seven members, including one member of City Council and one former Redevelopment Agency employee appointed by the Mayor.

The activities of the Housing Successor are repor ted in the Housing Authority Capital Projects Fund as the City has control of those assets, wh ich may be used in accordance with the low and moderate income housing provisions of California Redevelopment Law.

The activities of the Successor Agency ar e reported in the Successor Agency to the Redevelopment Agency Private-Purpose Trust Fund as the activities are under the control of the Oversight Board. The City provides administrative services to the Successor Agency to wind down the affairs of the former Redevelopment Agency.

89 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

19. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)

Cash and Investments

The Successor Agency pools cash from all source s and all funds with the City so that it can be invested at the maximum yield, consistent with safety and liquidity, while individual funds can make expenditures at any time. The details of the City’s investment pool can be found in Note 2.

Restricted cash and investments may be used only for activities authorized by the bond indentures of the Successor Agency’s Bonds.

Loans Receivable

The Successor Agencies assumed the notes and loans receivable of the former Redevelopment Agency as of February 1, 2012. The balance of the notes receivable as sumed by the Successor Agency at June 30, 2021 was $24,509,337 r ecorded in the Successor Agency to the Redevelopment Agency Private-Purpose Trust, consisting of rehabilitation and construction loans.

Elementary School and Public Improvements (Cannery/Burbank Project) – Pursuant to an agreement between the former Redevelopmen t Agency, City, the Hayward Area Park and Recreation District (HARD), and the Hayward Unif ied School District, the City has agreed to construct and the former Redevelopment Agen cy has agreed to pay for the design and construction of a new elementary school to be loca ted on a site composed of parcels owned by or to be acquired by the former Redevelopment Agency. The project was completed during the year ended June 30, 2009 for a total cost of $35,944,664. The site and improvements have been conveyed to the School District in exchange for a portion of land owned by the School District (the old school site).

The former Redevelopment Agency also agreed to deconstruct the old school site, and finance the cost of certain infrastructure improvements to the adjacent Cannery Park, which will be jointly used by the HARD, Park District and the School District. This infrastructure project was completed during the year ended J une 30, 2009 for a total cost of $6,813,260. The site and improvements have been conveyed to the HARD.

Receivables – To partially compensate the former Redevelopment Agency for the above design and construction costs and repay the advances, the School District, HARD and the City have agreed to assign certain school development fees and park-in-lieu fees to the former Redevelopment Agency.

In addition, the School District has agreed that the former Redevelopment Agency may retain pass- through payments due the School District pursuant to the Health and Safety Code, as partial compensation for the above costs. The remaining unreimbursed costs are recorded in a schedule of changes in the loan receivable balance for the year ended June 30, 2021.

School Project Cannery Park Cinema Place Retail Attraction Total Balance at June 30, 2020 $19,259,659 $3,491,901 $275,624 $1,482,153 $24,509,337 Les s : Loan Payments
Balance at June 30, 2021 $19,259,659 $3,491,901 $275,624 $1,482,153 $24,509,337

90 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

19. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)

Capital Assets

The Successor Agency assumed the capital assets of the former Redevelopment Agency as of February 1, 2012.

Capital Assets are valued at historical cost or estimated historical cost if actual historical cost was not available. Donated capital assets are valued at their acquisition values. City policy has set the capitalization threshold for reporting capital asse ts at $5,000. Depreciation is recorded on a straight-line basis over estimated useful lives of the assets as follows.

Buildings and improvements 10 - 50 years
Improvements other than Buildings 15 years
Machinery and equipment 7 - 50 years

The Successor Agency has recorded all its public domain (infrastructure) capital assets, which include landscape, storm, street, and traffic systems.

Capital Asset Additions, Retirements, and Balances

Balance Balance
June 30, 2020 Additions June 30, 2021
Capital assets not being depreciated:

Land $4,430,516 $4,430,516
Total capital asset not being depreciated 4,430,516 4,430,516 Capital assets being depreciated:

Buildings and improvements 14,135,897 14,135,897
Machinery and equipment 9,575 9,575
Total capital asset being depreciated 14,145,472 14,145,472 Less accumulated depreciation for:

Buildings and improvements 4,334,297 $314,131 4,648,428 Machinery and equipment 9,575 9,575
Total accumulated depreciation 4,343,872 314,131 4,658,003 Net depreciable assets 9,801,600 (314,131) 9,487,469
Private purpose trust fund assets, net $14,232,116 ($314,131) $13,917,985

91 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

19. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)

Loans Payable

The Successor Agencies assumed the notes and loans payable of the former Redevelopment Agency as of February 1, 2012. The balance of the loans payable assumed by the Successor Agency at June 30, 2021 was $8,339,979 recorded in the Successor Agency to the Redevelopment Agency Private- Purpose Trust Fund. The loans were as follows:

Advances to
Private Purpose Advances
Trust Fund From City
General Fund $4,436,442
Housing Authority Special Revenue Fund 3,876,516
Internal Service Funds 27,021
Successor Agency Private Purpose Trust Fund $8,339,979
Total $8,339,979 $8,339,979

Funds were advanced from the City to the fo rmer Redevelopment Agen cy under an Amended Repayment Agreement whereby the Agency has agreed to reimburse the City a portion of project costs for the B Street/Watkins/Mission Garage a nd B Street Retail and Civic Center Plaza not to exceed $11,186,217.

Under the Dissolution Act, certain agreements between Cities and redevelopment agencies no longer qualify as enforceable obligations. Howe ver, with the passage of AB 1484 on June 28, 2012, upon meeting certain requirements including the issuance of a finding of completion by the State Department of Finance and approval from th e Oversight Board, this loan was restored at LAIF rates from inception. The amounts above reflect only the principal portion of the loan. As a result of the State Controller’s Office Asset Transfer Review, completed in 2014, a loan repayment made by the Successor Agency to the City’s Genera l Fund in March 2011 of $2.22 million was disallowed. Additional repayments of $1,041,075 by the Successor Agency to the City’s Water Enterprise Fund and $831,877 by the Successor Agency to the City’s Sewer Enterprise Fund were also disallowed. These bala nces are reflected in the table above. In late November 30, 2018 the California State Supreme Court granted the Petition Writ of Mandate in the City’s favor which confirms that the $2.22 million obligation due the General Fund would be recognized and repaid by the State Department of Finance.

92 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

19. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
Long-Term Debt
The Successor Agency assumed the long-term debt of the Redevelopment Agency as of February 2012. The Successor Agency’s debt issues and transactions are summarized below and discussed in detail thereafter.

Authorized
and Balance at Balance at Current
Typ e of Ob ligation Issued June 30, 2020 Retirements June 30, 2021 Portion Tax Allocation Bonds,
2016 Refunding Redevelopm ent Agency
due 3/1/2036, interest at 2.0%-5.0% $35,270,000 $28,010,000 $1,880,000 $26,130,000 $1,975,000 Add: Original Issue Premium 2,944,134 184,008 2,760,126 Total $35,270,000 $30,954,134 $2,064,008 $28,890,126 $1,975,000 At June 30, 2021, future debt service requirement for the Successor Agency were as follows:

S uccessor Agency
Year Ending June 30 Principal Interest
2022 $1,975,000 $1,254,250
2023 2,070,000 1,154,375
2024 2,180,000 1,049,625
2025 2,290,000 939,375
2026 2,405,000 823,625
2027 - 2031 8,950,000 2,439,125
2032 - 2036 6,260,000 784,325
Totals 26,130,000 $8,444,700
Plus unamortized premium 2,760,126
Total Lon
g-term debt principal, net $28,890,126
2016 Tax Allocation Refunding Bonds
On November 29, 2016, the Suc cessor Agency issued 2016 Tax Allocation Refunding Bonds in the amount of $35,270,000. The proceeds of the Bonds were used to refund the 2004 Tax Allocation Bonds and 2006 Tax Allocation Bonds. As a result, the refunded bonds are considered to be defeased and the liability has been remove d from the statement of Net Position. The Bonds are payable in annual installments as indicated belo w until maturity on March 1, 2036. Interest is paid semiannually on March 1 and September 1, with rates ranging from 2.0% to 5.0% per annum.
93 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2021

19. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)

The bond covenant contains events of default that require the revenue of the City to be applied by the Trustee as specified in the terms of the agreement if any of the following conditions occur:
default on debt service payments; the failure of the City to observe or perform the conditions, covenants, or agreement terms of the debt; bankr uptcy filing by the City; or if any court or competent jurisdiction shall assume custody or cont rol of the City. The covenant also contains a subjective acceleration clause that allows the trus tees or holders, who hold the majority of the aggregate principal amount of the bonds, to acce lerate payment of the entire principal amount outstanding and interest accrued to become immediately due if they determine that a material adverse change occurs.

With the dissolution of the Redevelopment Agency discussed above, Tax Increment is no longer distributed and housing set-aside amounts are no longer required, and instead the Successor Agency receives payments from the County’s Redevelopment Property Tax Trust Fund (RPTTF) that are to be used to fund debt service on the Bonds, with no distinction between housing and non-housing revenues. The Successor Agency only receives the funds necessary to fulfill its approved obligations. In fiscal year 2021, to tal tax increment calculated and available for distribution by the County Auditor-Controller was $4,159,450, and the total received by the Successor Agency was $4,020,77 1. The taxes available for di stribution covered 125% of the $3,224,450 of debt service.

Commitments and Contingencies

State Approval of Enforceable Obligations – Successor Agency

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 Over sight 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. The City expects such amounts, if any, to be immaterial.

94 REQUIRED SUPPLEMENTARY INFORMATION

M easurement Date 6/30/2014 6/30/2015 6/30/2016
Total Pension Liab ility
Service Cost $6,288,587 $5,922,880 $6,147,333
Interest 27,661,985 28,504,068 29,369,393
Differences between expected and actual experience (3,128,990) (1,584,352) Changes in assum ptions (6,628,461)
Changes in benefits
Benefit payments, including refunds of employee contributions (19,351,565) (21,117,520) (22,169,235) Net change in total p ension liab ility 14,599,007 3,551,977 11,763,139 Total pension liability - beginning 375,357,954 389,956,961 393,508,938 Total pension liability - ending (a) $389,956,961 $393,508,938 $405,272,077 Plan fiduciary net position
Contributions - employer $7,412,951 $8,397,492 $9,973,051 Contributions - em ployee 3,116,188 3,176,411 3,159,686 Net investment income 42,388,729 6,280,326 1,454,000 Benefit payments, including refunds of employee contributions (19,351,565) (21,117,520) (22,169,235) Plan to plan resource m ovem ent 2,005 (11,393)
Adm inistrative ex pense (311,784) (168,838) Other m iscellaneous incom e/(ex pense)
Net change in plan fiduciary net position 33,566,303 (3,573,070) (7,762,729) Plan fiduciary net position - beginning 247,040,337 280,606,640 277,033,570 Plan fiduciary net position - ending (b) $280,606,640 $277,033,570 $269,270,841 Net pension liability - ending (a)-(b) $109,350,321 $116,475,368 $136,001,236 Plan fiduciary net position as a percentage of the total pension liability 71.96% 70.40% 66.44% Covered payroll $37,254,645 $37,577,455 $37,278,957
Net pension liability as percentage of covered payroll 293.52% 309.96% 364.82% Notes to Schedule:
* Fiscal year 2015 was the 1st year of implementation, therefore only seven years are shown.

Source: CalPERS Accounting V aluation - G ASB 68
Benefit
changes. The figures above do not include any liability im pact that m ay have resulted fro m plan changes which occurred after the June 30, 2016 valuation date. This applies for voluntary benefit changes as well as any offers of Two Y ears Additional Service Credit (a.k.a. G olden Handshakes).

Changes in assum p tions. In 2017, the accounting discount rate reduced from 7.65% to 7.15%. In 2016, 2018 and 2019, there were no changes. In 2015, amounts reported reflect an adjustm ent of the discount rate from7.5% (net of adm inistrative ex pense) to 7.65% (without a reduction for pension plan adm inistrative ex pense.) In 2014, amounts reported were based on the 7.5% discount rate.

CITY OF HAYWARD

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS Miscellaneous Plan - Agent Multiple-Em ployer Defined Pension Plan L ast 10 Y ears*
96 6/30/2017 6/30/2018 6/30/2019 6/30/2020
$7,504,688 $7,869,869 $8,124,065 $8,254,476
30,173,942 31,188,964 32,708,864 33,774,340
444,821 2,372,377 6,313,847 (481,002)
23,917,327 (2,819,842)
(22,746,836) (23,688,392) (24,796,470) (26,234,280) 39,293,942 14,922,976 22,350,306 15,313,534 405,272,077 444,566,019 459,488,995 481,839,301 $444,566,019 $459,488,995 $481,839,301 $497,152,835
$11,093,282 $10,774,004 $12,008,441 $12,993,586
3,799,837 4,511,187 4,682,650 5,503,016
29,788,614 24,576,008 19,998,965 15,793,925
(22,746,836) (23,688,392) (24,796,470) (26,234,280) (46,705) (711)
(397,560) (453,086) (218,097) (447,310)
(860,419) 711
21,490,632 14,858,591 11,676,200 7,608,937 269,270,841 290,761,473 305,620,064 317,296,264 $290,761,473
$305,620,064 $317,296,264 $324,905,201
$153,804,546 $153,868,931 $164,543,037 $172,247,634

65.40% 66.51% 65.85% 65.35%
$39,325,308 $43,553,412 $42,884,033 $49,210,706
391.11% 353.29% 383.69% 350.02%
97 Fiscal Y ear E nd ed June 30 2015 2016 2017
Actuarially determined contribution $8,401,478 $10,026,685 $11,092,052 Contributions in relation to the actuarially determined contributions 8,401,478 10,026,685 11,092,052 Contribution deficiency (ex cess) $0 $0 $0
Covered payroll $37,577,455 $37,278,957 $39,325,308
Contributions as a percentage of covered payroll 22.36% 26.90% 28.21% Notes to Schedule
Valuation date: 6/30/2013 6/30/2014 6/30/2015
Methods and assum ptions used to determ ine contribution rates:

Actuarial cost method Entry age
Am ortization m ethod Level percentage of payroll
Rem aining am ortization period 15 Y ears as of the V aluation Date Asset valuation m ethod 15 Y ear Sm oothed Market
Inflation 2.75% for 2015 to 2019, 2.625% for 2020, and 2.50% for 2021 Salary increases
Investment rate of return
Retirement age
Mortality
* Fiscal year 2015 was the 1st year of im plem entation, therefore only seven years are shown.

Source: City of Hayward's general ledger and CalPERS Actuarial V aluation L ast 10 Y ears*
The probabilities of m ortality are based on the
CalPERS Experience Study. Pre-retirement and
Post-retirement mortality rates include 20 years
of projected m ortality im provem ent using Scale
BB published by the Society of Actuaries for
2015 to 2018. For 2019, 2020, and 2021, pre-
retirement and post-retirement mortality rates
include 15 years of projected m ortality
im provem ent using 90% of Scale MP-2016
published by the Society of Actuaries.

The probabilities of Retirement are based on
the 2017 CalPERS Ex perience Study for the
period from 1997 to 2015.

CITY OF HAYWARD

SCHEDULE OF CONTRIBUTIONS
M iscellaneous Plan - Agent M ultip le-E mp loyer Defined Pension Plan V aries by Entry Age and Service

7.50% for 2015 to 2018, 7.375% for 2019, 7.25%
for 2020, and 7.00% for 2021 net of pension plan
investm ent ex pense, including inflation.
98 2018 2019 2020 2021
$10,776,908 $12,013,423 $12,996,103 $14,580,046
10,776,908 12,013,423 12,996,103 14,580,046 $0 $0 $0 $0
$43,553,412 $42,884,033 $49,210,706 $50,091,731

24.74% 28.01% 26.41% 29.11%
6/30/2016 6/30/2017 6/30/2018 6/30/2019
99 M easurement Date 6/30/2014 6/30/2015 6/30/2016
Total Pension Liab ility
Service Cost $4,037,733 $3,887,900 $4,145,914
Interest 17,319,964 18,049,868 19,111,623
Differences between ex pected and actual ex perience 763,164 5,499,415 Changes in assum ptions (4,308,430)
Changes in benefits
Benefit paym ents, including refunds of em ployee contributions (12,054,664) (13,394,096) (13,979,969) Net change in total p ension liab ility 9,303,033 4,998,406 14,776,983 Total p ension liab ility - b eginning 234,941,316 244,244,349 249,242,755 Total p ension liab ility - end ing (a) $244,244,349 $249,242,755 $264,019,738 Plan fiduciary net position
Contributions - employer $4,128,191 $4,969,514 $5,795,308 Contributions - em ployee 2,212,037 2,383,255 2,527,042 Net investment income 26,481,168 3,918,637 802,917 Benefit paym ents, including refunds of em ployee contributions (12,054,664) (13,394,096) (13,979,969) Plan to plan resource m ovem ent
Adm inistrative ex pense (193,742) (104,917)
Other m iscellaneous incom e/(ex pense)
Net change in plan fiduciary net position 20,766,732 (2,316,432) (4,959,619) Plan fiduciary net position - beginning 153,701,396 174,468,128 172,151,696 Plan fiduciary net position - ending (b) $174,468,128 $172,151,696 $167,192,077 Net pens ion liability - ending (a)-(b) $69,776,221 $77,091,059 $96,827,661 Plan fiduciary net position as a percentage of the total pension liability 71.43% 69.07% 63.33% Covered payroll $14,894,224 $15,304,881 $15,425,723
Net pens ion liability as percentage of covered payroll 468.48% 503.70% 627.70% Notes to Schedule:
* Fiscal year 2015 was the 1st year of im plem entation, therefore only seven years are shown.

Source: CalPERS Accounting V aluation - G ASB 68
Benefit
changes. The figures above do not include any liability im pact that m ay have resulted from plan changes which occurred after June 30, 2016 valuation date. This applies for voluntary benefit changes as well as any offers of Two Y ears Additional Service Credit (a.k.a. G olden Handshakes).

Changes in assum p tions.In 2017, the accounting disc ount rate reduced from 7.65% to 7.15%. In 2016, 2018, 2019 and 2020, there were no changes. In 2015, am ounts reported reflect an adjustm ent of the discount rate from 7.5% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense). In 2014, am ounts reported were based on the 7.5% discount rate.

CITY OF HAYWARD

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS Safety - Fire Plan - Agent Multiple-Employer Defined Pension Plan L ast 10 Y ears*
100
6/30/2017 6/30/2018 6/30/2019 6/30/2020
$5,098,972 $4,895,549 $5,286,457 $5,558,671
19,657,506 20,408,514 21,091,439 22,013,653 (324,662) 2,612,499 270,193 3,298,871
16,122,983 (1,401,429)
(14,874,772) (15,849,714) (16,586,918) (17,242,575) 25,680,027 10,665,419 10,061,171 13,628,620 264,019,738 289,699,765 300,365,184 310,426,355 $289,699,765 $300,365,184 $310,426,355 $324,054,975
$6,378,762 $6,646,548 $8,015,957 $9,191,715
2,544,269 2,516,137 3,093,507 2,851,797 18,488,612 15,036,869 12,184,975 9,590,927 (14,874,772) (15,849,714) (16,586,918) (17,242,575) (437)
(
246,848) (279,683) (133,462) (272,922)
(531,122) 437
12,290,023 7,538,598 6,574,496 4,118,942 167,192,077 179,482,100 187,020,698 193,595,194 $179,482,100 $187,020,698 $193,595,194 $197,714,136
$110,217,665 $113,344,486 $116,831,161 $126,340,839

61.95% 62.26% 62.36% 61.01%
$16,579,674 $17,977,548 $19,202,305 $18,986,921
664.78% 630.48% 608.42% 665.41%
101
Fiscal Y ear E nd ed June 30 2015 2016 2017
Actuarially determined contribution $4,879,642 $5,789,172 $6,383,503 4,879,642 5,789,172 6,383,503
Contribution deficiency (ex cess) $0 $0 $0
Covered payroll $15,304,881 $15,425,723 $16,579,674
Contributions as a percentage of covered payroll 31.88% 37.53% 38.50% Notes to Schedule
Valuation date: 6/30/2013 6/30/2014 6/30/2015
Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry age
Am ortization m ethod Level percentage of payroll
Rem aining am ortization period 15 Y ears as of the V aluation Date Asset valuation method 15 Y ear Smoothed Market
Inflation
Salary increases
Investm ent rate of return
Retirement age
Mortality
* Fiscal year 2015 was the 1st year of implementation, therefore only seven years are shown.

Source: City of Hayward's general ledger and CalPERS Actuarial Valuation

CITY OF HAYWARD

SCHEDULE OF CONTRIBUTIONS
Safety - Fire Plan - Agent Multiple-Employer Defined Pension Plan Last 10 Years*
The probabilities of m ortality are based on the CalPERS Ex perience Study. Pre-retirement and Post-retirement
mortality rates include 20 years of projected mortality im provem ent using Scale BB published by the Society of Actuaries for 2015 to 2018. For 2019, 2020, and 2021, pre- retirement and post-retirement mortality rates include 15 years of projected mortality im provem ent using 90% of Scale MP-2016 published by the Society of Actuaries.

Contributions in relation to the actuarially determined contributions

2.75% for 2015 to 2019, 2.625% for 20
V aries by Entry Age and Service

7.50% for 2015 to 2018, 7.375% for 2019, 7.25% for 2020 and

7.00% for 2021, net of pension plan investm ent ex pense, including inflation.

The probabilities of Retirement are based on the 2017
CalPERS Experience Study for the period from 1997 to 2015. 102
2018 2019 2020 2021
$6,646,548 $8,015,966 $9,197,653 $10,135,787
6,646,548 8,015,966 9,
197,653 10,
135,787
$0 $0 $0 $0
$17,
977,548 $19,202,305 $18,986,921 $18,899,737

36.97% 41.74% 48.44% 53.63%
6/30/2016 6/30/2017 6/30/2018 6/30/2019
103
M
easurement Date 6/30/2014 6/30/2015 6/30/2016
Total Pension Liab ility
Service Cost $6,810,663 $6,454,659 $6,807,555
Interest 22,705,717 23,663,122 25,023,071
Differences between expected and actual experience (823,804) 4,712,282 Changes in assumptions (5,929,992)
Changes in benefits
Benefit payments, including refunds of employee contributions (15,228,912) (16,782,338) (17,676,444) Net change in total p ension liab ility 14,287,468 6,581,647 18,866,464 Total p ension liab ility - b eginning 306,952,014 321,239,482 327,821,129 Total p ension liab ility - end ing (a) $321,239,482 $327,821,129 $346,687,593 Plan fiduciary net position
Contributions - employer $5,781,918 $7,594,532 $8,594,361 Contributions - employee 3,731,615 3,296,967 3,666,124 Net investment income 32,686,768 4,819,953 1,028,532 Benefit payments, including refunds of employee contributions (15,228,912) (16,782,338) (17,676,444) Net plan to plan resource m ovem ent 11,302

A
dm inistrative ex pense (241,860) (130,972)
Other m iscellaneous incom e/(ex pense)
Net change in plan fiduciary net position 26,971,389 (1,312,746) (4,507,097) Plan fiduciary net position - beginning 189,244,302 216,215,691 214,902,945 Plan fiduciary net position - ending (b) $216,215,691 $214,902,945 $210,395,848 Net pens ion liability - ending (a)-(b) $105,023,791 $112,918,184 $136,291,745 Plan fiduciary net pos ition as a percentage of the total pension liability 67.31% 65.55% 60.69% Covered payroll $21,359,362 $22,033,138 $21,649,761
Net pens ion liability as percentage of covered payroll 491.70% 512.49% 629.53% Notes to Schedule:
* F
iscal year 2015 was the 1st year of implementation, therefore only seven years are shown.

Source: CalPERS Accounting Valuation - GASB 68
Benefit changes. The figures above do not include any liability impact that may have res ulted from plan changes which occurred after June 30, 2016. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. G olden Handshakes).

Changes in assum p tions.In 2017, the accounting discount rate reduced from 7.65% to 7.15%. In 2016, 2018, 2019 and 2020, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5% (net of administrative ex pense) to 7.65% (without a reduction for pension plan administrative ex pense). In 2014, amounts reported were based on the 7.5% discount rate.

CITY OF HAYWARD

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS Safety - Police Plan - Agent Multiple-Employer Defined Pens ion Plan L ast 10 Y ears*
104
6/30/2017 6/30/2018 6/30/2019 6/30/2020
$8,055,656 $8,436,727 $7,716,531 $8,079,098
25,738,287 26,651,517 28,039,320 29,217,195
(3,900,767) (1,105,506) 4,860,684 2,096,406
21,956,739 (1,587,612)
(17,590,706) (19,447,095) (20,910,933) (22,208,581) 34,259,209 12,948,031 19,705,602 17,184,118 346,687,593 380,946,802 393,894,833 413,600,435 $380,946,802 $393,894,833 $413,600,435 $430,784,553
$10,508,222 $10,740,724 $12,243,071 $13,842,327
3,782,992 3,754,299 3,750,089 3,749,712 23,301,215 19,562,389 16,002,505 12,710,839 (17,590,706) (19,447,095) (20,910,933) (22,208,581) (567)
(310,635) (358,539) (173,879) (358,879)
(680,871) 567
19,
691,088 13,570,340 10,911,420 7,735,418 210,395,848 230,086,936 243,657,276 254,568,696 $230,086,936 $243,657,276 $254,568,696 $262,304,114
$150,859,866 $150,237,557 $159,031,739 $168,480,439

60.40% 61.86% 61.55% 60.89%
$22,884,077 $24,345,421 $24,912,360 $24,853,675
659.24% 617.11% 638.36% 677.89%
105
Fiscal Y ear E nd ed June 30 2015 2016 2017
Actuarially determined contribution $7,487,975 $8,650,555 $10,512,716 Contributions in relation to the actuarially
determ ined contributions 7,487,975 8,650,555 10,512,716 Contribution deficiency (ex cess) $0 $0 $0
Covered payroll $22,033,138 $21,649,761 $22,884,077
Contributions as a percentage of covered
payroll 33.99% 39.96% 45.94%
Notes to Schedule
Valuation date: 6/30/2013 6/30/2014 6/30/2015
Methods and assum ptions used to determ ine contribution rates:

Actuarial cos t method
Am ortization m ethod
Rem aining am ortization period
As set valuation method
Inflation
Salary increases
Investment rate of return
Retirement age
Mortality
*
F
iscal year 2015 was the 1st year of implementation, therefore only seven years are shown.

Source: City of Hayward's general ledger and CalPERS Actuarial V aluation

CITY OF HAYWARD

SCHEDULE OF CONTRIBUTIONS
Safety - Police Plan - Agent Multiple-Em ployer Defined Pension Plan Las t 10 Years *

7.50% for 2015 to 2018 and 7.15% for 2019 to 2020, net of pension plan investm ent ex pense, including inflation.

The probabilities of Retirem ent are based on the 2017
CalPERS Ex perience Study for the period from 1997 to 2015.

The probabilities of m ortality are based on the 2017 CalPERS Ex perience Study for the period from 1997 to 2015. Pre- retirem ent and Post-retirem ent m ortality rates include 5 years of projected m ortality im provem ent using Scale BB published by the Society of Actuaries.

Entry age
Level percentage of payroll
14 Y ears as of the V aluation Date
15 Y ear Smoothed Market

2.75%

3.30% to 14.20% depending on Age, Service, and type of
106
2018 2019 2020 2021
$10,740,724 $12,240,356 $13,839,941 $14,979,710
10,740,724 12,240,356 13,839,941 14,979,710
$0 $0 $0 $0
$24,345,421 $24,912,360 $24,853,675 $24,906,152

44.12% 49.13% 55.69% 60.14%
6/30/2016 6/30/2017 6/30/2018 6/30/2019
107

CITY OF HAYWARD
M easurement Date 6/30/17 6/30/18 6/30/19 6/30/20
Total OPE B Liab ility
Service cost $4,646,537 $4,0 54,275 $4,121,478 $2,213,810 Interest 3,528,286 4,015,577 4,186,619 5,048,226
Changes in benefit term s
Differences between ex pected and actual ex perience 2,686,781 Changes of assumptions (11,390,281) (1,014,291) (32,786,613) (10,988,323) Benefit payments (4,263,071) (4,190,672) (4,344,188) (4,882,802) Net change in total OPE B liab ility (7,478,529) 2,864,889 (26,135,923) (8,609,089) Total OPE B liab ility - b eginning 118,316,704 110,838,175 113,703,064 87,567,141 Total OPE B liab ility - end ing (a) $110,838,175 $113,703,064 $87,567,141 $78,958,052 Plan fiduciary net position
Contributions - em ployer $4,263,071 $5,190,672 $6,344,188 $7,455,802 Contributions - em ployee 377,793 (374,055)
Net investment income 396,755 318,308 455,417 1,012,025 Administrative expense (2,014) (2,234) (1,348) (4,528)
Other ex pense (5,491)
Benefit payments (4,263,071) (4,190,672) (4,344,188) (4,882,802) Net change in plan fiduciary net position 394,741 1,310,583 2,831,862 3,206,442 Plan fiduciary net position - beginning 3,755,234 4,149,975 5,460,558 8,292,420 Plan fiduciary net position - ending (b) $4,149,975 $5,460,558 $8,292,420 $11,498,862 Net OPEB liability - ending (a)-(b) $106,688,200 $108,242,506 $79,274,721 $67,459,190 Plan fiduciary net position as a percentage of the total OPEB liability 3.74% 4.80% 9.47% 14.56% Covered-em ployee payroll $97,007,987 $10 0,785,694 $104,434,054 $105,982,182 Net OPEB liability as a percentage of covered-employee payroll 109.98% 107.40% 75.91% 63.65% Notes to schedule:
* Fiscal year 2018 was the first year of implementation.

Source: G ASB 75 V aluation Report

SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS

AGE NT MULTIPLE E MPLOYE R PLAN
L ast 10 fi scal years*
108

CITY OF HAYWARD
Fiscal Y ear E nd ed June 30, 2018 2019 2020 2021
Actuarially determined contribution $8,038,027 $8,394,467 $7,004,174 $7,190,835 Contributions in relation to the
actuarially determined contribution 5,190,672 6,374,161 7,455,802 6,795,404 Contribution deficiency (excess) $2,847,355 $2,020,306 ($451,628) $395,431 Covered employee payroll $100,785,694 $104,434,054 $105,982,182 $110,872,748 Contributions as a percentage of
covered payroll 5.15% 6.10% 7.03% 6.13%
Notes to Schedule
Valuation Date 6/30/2017 6/30/2017 6/30/2019 6/30/2019
Actuarial As s umptions :

Discount Rate 3.56% 3.62% 6.90% 6.90%
Inflation 3.00% 2.75% 2.50% 2.50%
Payroll Growth 3.25% 3.25% 3.00% 3.00%
Investment Rate of Return 7.28% 6.90% 6.90% 6.90%
Mortality Rate
Pre-Retirem ent Turnover
Healthcare 5% to 6.5% 5% to 7.5% 4% to 5.4% 4% to 5.4%
* Fiscal year 2018 was the first year of implementation.

Source: G ASB 75 V aluation
Must retire from CalPERS on or after age 65 with at least 10 years of servi ce.

Mortality rates used were those published by
CalPERS, adjusted to back out 20 years of
Scale BB to central year 2008.

Mortality rates used were the published
CalPERS rates, adjusted to back out 15 years
of Scale MP 2016 to central year 2015.

SCHEDULE OF CONTRIBUTIONS - OTHER POSTEMPLOYMENT BENEFITS

AGENT MULTIPLE EMPLOYER PLAN
Last 10 fiscal years*
Methods and assum ptions used to determ ine contribution rates:
109

CITY OF HAYWARD

GENERAL FUND

SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Budgeted Amounts Adjusted Budget
Actual Amounts Positive
Adopted * Ad justed * Bud getary Basis* (Negative)
REVENUES:

Property taxes $55,500,000 $57,000,000 $61,196,409 $4,196,409 Sales taxes 48,253,000 50,253,000 58,652,032 8,399,032
Utility users tax 18,135,000 17,135,000 17,267,592 132,592 Other taxes 32,061,000 32,661,000 35,277,539 2,616,539
Licenses and permits 6,397,680 6,397,680 5,439,030 (958,650) Fines and forfeitures 2,291,609 2,261,609 2,194,569 (67,040) Investment income 299,880 299,880 151,835 (148,045)
Rental income 278,650 278,650 1,723 (276,927)
Intergovernmental 8,268,081 10,502,962 10,881,724 378,762 Fees and charges for services 5,583,780 5,583,780 7,420,237 1,836,457 Other revenue 514,000 514,000 1,402,183 888,183
Total Revenues 177,582,680 182,887,561 199,884,873 16,997,312 EXPENDITURES:

Current:

General government 13,922,006 14,621,185 13,971,584 649,601 Public safety 121,335,578 126,300,269 128,375,921 (2,075,652) Public works and transportation 3,155,605 3,294,386 4,085,154 (790,768) Library and community services 9,660,222 8,708,779 7,587,444 1,121,335 Planning and building 8,208,859 9,216,720 8,712,707 504,013 Maintenance services 8,825,230 9,015,991 9,656,198 (640,207) Total Expenditures 165,107,500 171,157,330 172,389,008 (1,231,678)

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 12,475,180 11,730,231 27,495,865 15,765,634 OTHER FINANCING SOURCES (USES):

Transfers in 4,317,046 4,317,046 2,694,046 (1,623,000)
Transfers (out) (14,764,809) (17,357,198) (16,681,679) 675,519 Total Other Financing Sources (Uses) (10,447,763) (13,040,152) (13,987,633) (947,481) NET CHANGE IN FUND BALANCE $2,027,417 ($1,309,921) 13,508,232 $14,818,153 BEGINNING FUND BALANCE 52,683,175
ENDING FUND BALANCE $66,191,407
* Includes revenue and expenditures related to the City's Measure C District Sales Tax. 110

CITY OF HAYWARD

FEDERAL GRANTS SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Adjusted Budget
Positive
Original Budget Ad justed Budget Actual (Negative)
REVENUES:

Investment income $10,000 $10,000 $37,827 $27,827
Intergovernmental 449,000 1,119,260 949,046 (170,214)
Fees and charges for services 12,000 8,537 (3,463)
Total Revenues 459,000 1,141,260 995,410 (145,850)
EXPENDITURES:

Current:

Public safety 33,906 552,831 182,196 370,635
Library and community services 564,191 179,684 384,507
Economic development 405,231 1,113,322 575,340 537,982
Total Expenditures 439,137 2,230,344 937,220 1,293,124

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES 19,863 (1,089,084) 58,190 1,147,274 NET CHANGE IN FUND BALANCE $19,863 ($1,089,084) 58,190 $1,147,274 BEGINNING FUND BALANCE 14,778,477
ENDING FUND BALANCE $14,836,667
111
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SUPPLEMENTAL INFORMATION

CITY OF HAYWARD

HOUSING AUTHORITY CAPITAL PROJECTS FUND

SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Adjusted Budget
Positive
Original Budget Final Bud get Actual (Negative)
REVENUES:

Investment income $200,000 $200,000 $70,718 ($129,282)
Fees and charges for services 2,968 2,968
Total Revenues 200,000 200,000 73,686 (126,314)
EXPENDITURES:

Current:

Economic development 232,717 4,980,588 103,341 4,877,247 Total Expenditures 232,717 4,980,588 103,341 4,877,247

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES (32,717) (4,780,588) (29,655) (4,750,933) OTHER FINANCING SOURCES (USES):

Transfers (out) (8,159) (8,159) (8,159)
Total Other Financing Sources (Uses) (8,159) (8,159) (8,159) NET CHANGE IN FUND BALANCE ($40,876) ($4,780,588) (37,814) $4,742,774 BEGINNING FUND BALANCE 22,784,829
ENDING FUND BALANCE $22,747,015
114

CITY OF HAYWARD

GENERAL CAPITAL PROJECTS CAPITAL PROJECT FUND

SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Adjusted Budget
Positive
Original Budget Final Bud get Actual (Negative)
REVENUES:

Other taxes $830,605 $830,605
Investment income 35,574 35,574
Intergovernmental 5,184,103 5,184,103
Other revenue $110,077 6,506,193 6,396,116
Total Revenues 110,077 12,556,475 12,446,398
EXPENDITURES:

Current:

Public works and transportation 44,072 (44,072)
Capital outlay $22,971,000 88,899,993 26,559,107 62,340,886 Total Expenditures 22,971,000 88,899,993 26,603,179 62,296,814

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES (22,971,000) (88,789,916) (14,046,704) 74,743,212 OTHER FINANCING SOURCES (USES):

Transfers in 965,000 985,948 965,000 (20,948)
Total Other Financing Sources (Uses) 965,000 985,948 965,000 (20,948) NET CHANGE IN FUND BALANCE ($22,006,000) ($87,803,968) (13,081,704) $74,722,264 BEGINNING FUND BALANCE 27,536,543
ENDING FUND BALANCE $14,454,839
115
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COMBINING GENERAL FUND SCHEDULES

General Measure C District
Purpose Sales Tax Total
ASSETS:

Cash, cash equivalents, and investments $55,383,752 $26,809,993 $82,193,745 Accounts receivable, net 2,273,665 2,273,665
Due from other governments 9,814,548 3,369,512 13,184,060 Due from other funds 1,790,879 1,790,879
Long-term loans to the Private Purpose Trust Fund 4,436,442 4,436,442 Deposits, parts, supplies and other 5,981 5,981
Total Assets $73,705,267 $30,179,505 $103,884,772
LIABILITIES:

Accounts payable $2,982,322 $5,081 $2,987,403
Accrued liabilities 7,427,939 112,673 7,540,612
Long-term interfund payables 3,015,479 3,015,479
Unearned revenue 19,232,997 19,232,997
Refundable deposits 4,916,874 4,916,874
Total Liabilities 37,575,611 117,754 37,693,365
FUND BALANCES:

Nonspendable 4,442,423 4,442,423
Assigned 256,170 30,061,751 30,317,921
Unassigned 31,431,063 31,431,063
Total Fund Balances 36,129,656 30,061,751 66,191,407
Total Liabilities and Fund Balances $73,705,267 $30,179,505 $103,884,772 General Fund

CITY OF HAYWARD

GENERAL FUND

COMBINING BALANCE SHEETS
JUNE 30, 2021
118

CITY OF HAYWARD

GENERAL FUND

COMBINING SCHEDULES OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCE
FOR THE YEAR ENDED JUNE 30, 2021
General Measure C District
Fund Sales Tax Total
REVENUES:

Property taxes $61,196,409 $61,196,409
Sales taxes 40,074,818 $18,577,214 58,652,032
Utility users tax 17,267,592 17,267,592
Other taxes 35,277,539 35,277,539
Licenses and permits 5,439,030 5,439,030
Fines and forfeitures 2,194,569 2,194,569
Investment income 13,062 138,773 151,835
Rental income 1,723 1,723
Intergovernmental 10,881,724 10,881,724
Fees and charges for services 7,420,237 7,420,237
Other revenue 1,402,183 1,402,183
Total Revenues 181,168,886 18,715,987 199,884,873
EXPENDITURES:

Current:

General government 13,971,584 13,971,584
Public safety 125,093,945 3,281,976 128,375,921
Public works and transportation 4,085,154 4,085,154
Library and community services 7,579,222 8,222 7,587,444 Planning and building 8,712,707 8,712,707
Maintenance services 8,187,267 1,468,931 9,656,198
Total Expenditures 167,629,879 4,759,129 172,389,008

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 13,539,007 13,956,858 27,495,865 OTHER FINANCING SOURCES (USES):

Transfers in 2,694,046 2,694,046
Transfers (out) (10,950,699) (5,730,980) (16,681,679)
Total Other Financing Sources (Uses) (8,256,653) (5,730,980) (13,987,633) CHANGE IN FUND BALANCES 5,282,354 8,225,878 13,508,232
BEGINNING FUND BALANCES 30,847,302 21,835,873 52,683,175 ENDING FUND BALANCES $36,129,656 $30,061,751 $66,191,407 General Fund
119
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NON-MAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS
Special Gasoline Tax Fund – Accounts for revenue apportioned to the City from State collected gasoline taxes and expended for construction and maintenance of City streets.

Community Development Block Grant Program Fund
– Accounts for monies received from the U.S.

Department of Housing and Urban Development (“HUD”) and expended for development of jobs and suitable housing for low-income residents.

Housing Mortgage Revenue Bonds Fund – Accounts for fees paid by benefited developers of multifamily rental housing and used to reimburse City cost relate d to bond issuance and program monitoring.

Park Dedication Ordinance Fund – Accounts for park dedication f ees applied to new construction and expended for acquisition of recreational land and construction of recreational facilities.

Business Improvement Fund – Accounts for fees imposed on businesses within the downtown business improvement district and expended on activ ities, which enhance the district as a shopping and business center.

Donation Fund – Accounts for miscellaneous donations expe nded for purposes ag reed upon by the City and the donors.

Recycling Fund – Accounts for revenue received from Coun ty Measure D funds and grants used to support the City’s recycling program.

Narcotics Asset Seizure Fund – Accounts for funds received pursua nt to federal and State narcotic and seizure laws used to support identified law enforcement activities.

Park Maintenance District Fund – Accounts for revenues from annual assessments of developers’ proportionate shares of the City’s costs for park ma intenance in the areas of the developers’ projects and accounts for the actual park maintenance costs.

Measure B Local St reets and Roads – Accounts for proceeds of an additional one-half cent sales tax to be used to improve, repair and overlay city streets.

Measure B Pedestrian Fund – Accounts for revenue apportioned to the City from locally collected retail sales taxes and expended for pedestrian projects.

Measure B Paratransit Fund – Accounts for the provision of taxi and van transportation for the elderly and the handicapped.

Measure BB Fund – Supports local road improvement and repa ir projects, traffic congestion relief projects, local transportation te chnology projects, and pedestrian and bicyclist access and safety projects. Accounts for the provision of taxi and van transportation for th e elderly and handicapped.

An additional 1% sales tax is collected to support this program. 121
NON-MAJOR GOVERNMENTAL FUNDS (Continued)
Measure F Fund – Alameda County Vehicle Registration Fee was approved in November 2010. $10 per year vehicle registration fee collection suppor ts local road improvement and repair projects,

traffic congestion relief projects, local transportation technology projects, and pedestrian and bicyclist access and safety projects.

Local Grants Fund – Accounts for grants not originating from the Federal Government and State of California.

RRAA (SB1) Fund – Accounts for revenue appropriated to the City from State of California collected gas taxes and expended for road maintenance and rehabilitation.

Rental Housing Program Fund – Accounts for transactions related to residential rent stabilization and tenant protection ordinance to mitigate displacement of Hayward residents.

Affordable Housing Fund – Accounts for transactions related to affordable housing in-lieu fees to be used for the supply of housing a ffordable to moderate-, low-, very low-, or extremely low-income households.

DEBT SERVICE FUNDS
Certificates of Participation – Accounts for transfers of revenue from the general and capital projects funds for payment of interest and principal on certificates of participation.

CAPITAL PROJECTS FUNDS
Route 238 Corridor Improvement Fund – Accounts for various roadway improvements along Foothill Boulevard and Mission Boulevard between northern city limits and Industrial Parkway including a downtown one way loop street system, peak hour tr affic lanes, pedestrian and bicycle improvements, and landscaping enhancements.

Traffic Signal Construction Fund – Accounts for traffic signal fees paid by developers of residential housing and expended for installation of traffic signal equipment.

Performance Deposits Fund – Accounts for deposits belong to developer which will go through the entitle process for eligible expenses. Once the project s are completed, the City will either refund or bill developers for the difference.
122
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SPECIAL REVENUE FUNDS
Special
Gasoline Tax
Community
Development
Block Grant
Program
Housing
Mortgage
Revenue Bonds
Park
Dedication
Ordinance
ASSETS:

Cash, cash equivalents, and investments $1,079,172 $189,365 $15,330,573 Accounts receivable, net
Due from other governments 386,177 $8,811
Interest receivable
Loans receivable 6,459,505 243,418
Land held for resale
Tota
l Assets $1,465,349 $6,468,316 $432,783 $15,330,573
LIABILITIES:

Accounts payable $26,417 $628,214 $2,544
Accrued liabilities 13,157 1,819
Due to other funds 406,598
Unearned revenue
Refundable de
posits
Total Liabilities 26,417 1,047,969 4,363
DEFERRED INFLOWS OF RESOURCES:

Unavailable revenue
Total Deferred Inflows of Resources
FUND BALANCES:

Restricted:

Public safety
Public works and transportation 1,438,932
Planning and building $15,330,573
Economic development 5,420,347 428,420
Debt service
Total Fund Balances 1,438,932 5,420,347 428,420 15,330,573 Total Liabilities, Deferred Inflows of Resources
and Fund Balances $1,465,349 $6,468,316 $432,783 $15,330,573

CITY OF HAYWARD

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEETS
JUNE 30, 2021
124
Business
Improvement Donation Rec ycling
Narcotics Asset
Seizure
Park Maintenance
District
Measure B Local
Streets and Roads
$47,162 $784,326 $4,162,617 $563,052 $3,781,746 $3,494,059 936 2,500
126,579 6,034 579,290
68,215
53,631
$48,098 $786,826 $4,411,042 $563,052 $3,787,780 $4,073,349 $30,499 $109,041 $118,225 $1,133
352 10,790
2,500 $52,058
33,351 119,831 52,058 118,225 1,133
$936
936
510,994
4,291,211 4,072,216
47,162 753,475 3,669,555
47,162 753,475 4,291,211 510,994 3,669,555 4,072,216
$48,098 $786,826 $4,411,042 $563,052 $3,787,780 $4,073,349 (Continued)

SPECIAL REVENUE FUNDS
125

CITY OF HAYWARD

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEETS
JUNE 30, 2021

SPECIAL REVENUE FUNDS
Measure B
Pedestrian
Measure B
Paratransit Measure BB Measure F
ASSETS:

Cash, cash equivalents, and investments $1,345,605 $1,408,684 $11,560,850 $874,498 Accounts receivable, net
Due from other governments 116,353 210,199 793,725 150,675 Interest receivable
Loans receivable
Land held for resale
Tota
l Assets $1,461,958 $1,618,883 $12,354,575 $1,025,173
LIABILITIES:

Accounts payable $143,630 $38,624 $66,715
Accrued liabilities 8,722
Due to other funds
Unearned revenue
Refundable de
posits
Total Liabilities 152,352 38,624 66,715
DEFERRED INFLOWS OF RESOURCES:

Unavailable revenue
Total Deferred Inflows of Resources
FUND BALANCES:

Restricted:

Public safety
Public works and transportation $1,461,958 1,466,531 12,315,951 958,458 Planning and building
Economic development
Debt service
Total Fund Balances 1,461,958 1,466,531 12,315,951 958,458 Total Liabilities, Deferred Inflows of Resources
and Fund Balances $1,461,958 $1,618,883 $12,354,575 $1,025,173 126
DEBT

SERVICE CAPITAL

FUND PROJECTS FUND
Local Grants RRAA (SB1)
Rental Housing
Program
Affordable
Housing
Certificates of
Participation
Route 238 Corridor
Improvement
$17,034 $2,886,759 $260,668 $11,707,808 $7,449,813
4,800 340,391 $1,319,291
44,556 289,704
6,131,113
$66,390 $3,176,463 $601,059 $11,707,808 $7,449,813 $7,450,404 $33,413 $36,674 $7,382 $145,827
9,241 9,190 $138,131
1,384,281
340,391
114,348 33,385
33,413 386,306 130,920 138,131 1,563,493
1,319,291
1,319,291
32,977 $3,176,463 4,567,620
214,753 11 ,576,888
7,311,682
32,977 3,176,463 214,753 11, 576,888 7,311,682 4,567,620 $66,390 $3,176,463 $601,059 $11,707,808 $7,449,813 $7,450,404 (Continued)

SPECIAL REVENUE FUNDS
127

CITY OF HAYWARD

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEETS
JUNE 30, 2021

CAPITAL PROJECTS FUNDS
Traffic Signal
Construction
Performance
Deposits
Total Nonmajor
Governmental
Funds
ASSETS:

Cash, cash equivalents, and investments $1,030,992 $341,054 $68,315,837 Accounts receivable, net 1,667,918
Due from other governments 2,712,103
Interest receivable 68,215
Loans receivable 6,756,554
Land held for resale 6,131,113
Total Assets $1,030,992 $341,054 $85,651,740
LIABILITIES:

Accounts payable $28,422 $1,416,760
Accrued liabilities $2,572 193,974
Due to other funds 1,790,879
394,949
Refundable deposits 306,249 453,982
Total Liabilities 28,422 308,821 4,250,544
DEFERRED INFLOWS OF RESOURCES:
1,320,227
Total Deferred Inflows of Resources 1,320,227
FUND BALANCES:

Restricted:

Public safety 510,994
Public works and transportation 1,002,570 32,233 34,817,120 Planning and building 19,800,765
Economic development 17,640,408
Debt service 7,311,682
Total Fund Balances 1,002,570 32,233 80,080,969
Total Liabilities, Deferred Inflows of Resources
and Fund Balances $1,030,992 $341,054 $85,651,740
128
This Page Left Intentionally Blank

Special
Gasoline Tax
Community
Development
Block Grant
Program
Housing
Mortgage
Revenue Bonds
Park
Dedication
Ordinance
REVENUES:

Other taxes
Special assessments
Investment income $5,095 $480,320 $982 $59,099
Rental income
Inter
governmental 3,547,389 3,880,545
Fees and charges for services
Other revenue 300,144 246,755 2,069,851
Total Revenues 3,552,484 4,661,009 247,737 2,128,950
EXPENDITURES:

Current:

Public safety
Public works and transportation 3,385,003
Library and community services 91,095
Economic development 643,941 304,094
Maintenance services 4,256
Capital outlay 2,805,523
Debt service:

Principal
Interest and fiscal charges
Total Expenditures 2,809,779 4,120,039 304,094

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 742,705 540,970 (56,357) 2,128,950

OTHER FINANCING SOURCES (USES)
Gain on sale of land held
Transfers in 15,000
Transfers
(out) (986,000) (21,997)
Total Other Financing Sources (Uses) (971,000) (21,997) NET CHANGE IN FUND BALANCES (228,295) 540,970 (78,354) 2,128,950 BEGINNING FUND BALANCES, AS RESTATED 1,667,227 4,879,377 506,774 13,201,623 ENDING FUND BALANCES $1,438,932 $5,420,347 $428,420 $15,330,573

SPECIAL REVENUE FUNDS

CITY OF HAYWARD

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENTS OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2021
130
Business
Improvement Donation Rec ycling
Narcotics Asset
Seizure
Park Maintenance
District
Measure B Local
Streets and Roads
$564,498
$1,408,903
$550 $3,415 16,996 $2,341 15,075 $11,739
45,000 1,098,974 2,844,270
83,001
146,551
550 194,966 1,680,468 85,342 1,423,978 2,856,009
122,745
31,018 624,252
318,012
1,092,071
3,418,713
153,763 942,264 1,092,071 3,418,713
550 41,203 738,204 85,342 331,907 (562,704)
(51,042)
(51,042)
550 41,203 687,162 85,342 331,907 (562,704)
46,612 712,272 3,604,049 425,652 3,337,648 4,634,920
$47,162 $753,475 $4,291,211 $510,994 $3,669,555 $4,072,216 (Continued)

SPECIAL REVENUE FUNDS
131

CITY OF HAYWARD

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENTS OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2021

SPECIAL REVENUE FUNDS
Measure B
Pedestrian
Measure B
Paratransit Measure BB Measure F
REVENUES:

Other taxes
Special assessments
Investment income $5,143 $5,743 $45,246 $3,047
Rental income
Inter
governmental 571,284 1,032,064 3,904,350 883,704
Fees and charges for services
Other revenue 49,400
Total Revenues 576,427 1,037,807 3,998,996 886,751
EXPENDITURES:

Current:

Public safety
Public works and transportation 26,354 2,413
Library and community services 947,754
Economic development
Maintenance services
Capital outlay 78,399 524,923 901,460
Debt service:

Principal
Interest and fiscal charges
Total Expenditures 78,399 947,754 551,277 903,873

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 498,028 90,053 3,447,719 (17,122)

OTHER FINANCING SOURCES (USES)
Gain on sale of land held
Transfers in
Transfers
(out) (56,366)
Total Other Financing Sources (Uses) (56,366)
NET CHANGE IN FUND BALANCES 498,028 33,687 3,447,719 (17,122) BEGINNING FUND BALANCES, AS RESTATED 963,930 1,432,844 8,868,232 975,580 ENDING FUND BALANCES $1,461,958 $1,466,531 $12,315,951 $958,458 132
DEBT

SERVICE CAPITAL

FUND PROJECTS FUND
Local Grants RRAA (SB1)
Rental Housing
Program
Affordable
Housing
Certificates of
Participation
Route 238 Corridor
Improvement
$284 $9,170 $310 $46,310 $29,100 $61,562
520,189 104,069
760,685 2,942,920
5,000 2,193,532 8,225
12,229 13,616,861
778,198 2,952,090 520,499 2,239,842 29,100 13,790,717
796,910
428,811 294,817
2,757,546 3,400,102
5,416,028
2,795,772
796,910 2,757,546 428,811 294,817 8,211,800 3,400,102
(18,712) 194,544 91,688 1,945,025 (8,182,700) 10,390,615 3,390,000
8,218,043
(4,262)
(4,262) 8,218,043 3,390,000
(18,712) 194,544 87,426 1,945,025 35,343 13,780,615
51,689 2,981,919 127,327 9,631,863 7,276,339 (9,212,995) $32,977 $3,176,463 $214,753 $11,576,888 $7,311,682 $4,567,620 (Continued)

SPECIAL REVENUE FUNDS
133

CITY OF HAYWARD

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENTS OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2021

CAPITAL PROJECTS FUNDS
Traffic Signal
Construction
Performance
Deposits
Total Nonmajor
Governmental
Funds
REVENUES:

Other taxes $564,498
Special assessments 1,408,903
Investment income $4,183 $2,071 807,781
Rental income 624,258
Intergovernmental 21,511,185
Fees and charges for services 2,289,758
Other revenue 20,000 16,461,791
Total Revenues 24,183 2,071 43,668,174
EXPENDITURES:

Current:

Public safety 919,655
Public works and transportation 4,069,040
Library and community services 1,356,861
Economic development 1,671,663
Maintenance services 1,096,327
Capital outlay 212,117 14,098,783
Debt service:

Principal 5,416,028
Interest and fiscal charges 2,795,772
Total Expenditures 212,117 31,424,129

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (187,934) 2,071 12,244,045

OTHER FINANCING SOURCES (USES)
Gain on sale of land held 3,390,000
Transfers in 400,000 8,633,043
Transfers (out) (1,119,667)
Total Other Financing Sources (Uses) 400,000 10,903,376 NET CHANGE IN FUND BALANCES 212,066 2,071 23,147,421
BEGINNING FUND BALANCES, AS RESTATED 790,504 30,162 56,933,548 ENDING FUND BALANCES $1,002,570 $32,233 $80,080,969
134
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CITY OF HAYWARD

BUDGETED NON-MAJOR FUNDS

COMBINING SCHEDULES OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Special Gasoline Tax Community Development Block Grant Program Adjusted
Budget Actual
Variance
Positive
(Negative)
Adjusted
Budget Actual
Variance
Positive
(Negative)
REVENUES:

Other taxes
Special assessments
Investment income $5,095 $5,095 $480,320 $480,320
Rental income
Intergovernmental 3,547,389 3,547,389 $4,354,166 3,880,545 (473,621) Fees and charges for services
Other revenue 300,144 300,144
Total Revenues 3,552,484 3,552,484 4,354,166 4,661,009 306,843 EXPENDITURES:

Current:

Public safety
Public works and transportation $806 806 5,511,005 3,385,003 2,126,002 Library and community services 1,485,586 91,095 1,394,491 Economic development 643,941 (643,941)
Maintenance services 6,000 4,256 1,744
Capital outlay 4,090,789 2,805,523 1,285,266
Debt service
Principal
Interest and fiscal charges
Total Expenditures 4,097,595 2,809,779 1,287,816 6,996,591 4,120,039 2,876,552

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (4,097,595) 742,705 4,840,300 (2,642,425) 540,970 3,183,395

OTHER FINANCING SOURCES (USES)
Gain on sale of land hel
d
Transfers in 15,000 15,000
Transfers (out) (986,000) (986,000)
Total Other Financing Sources (Uses) (971,000) (971,000) NET CHANGE IN FUND BALANCES ($5,068,595) (228,295) $4,840,300 ($2,642,425) 540,970 $3,183,395 BEGINNING FUND BALANCES, AS RESTATED 1,667,227 4,879,377 ENDING FUND BALANCES $1,438,932 $5,420,347

SPECIAL REVENUE FUNDS
136
Housing Mortgage Revenue Bonds Park Dedication Ordinance Business Improvement Adjusted
Budget Actual
Variance
Positive
(Negative)
Adjusted
Budget Actual
Variance
Positive
(Negative)
Adjusted
Budget Actual
Variance
Positive
(Negative)
$5,500 $982 ($4,518) $59,099 $59,099 $550 $550
160,000 246,755 86,755 $2,235,906 2,069,851 (166,055)
165,500 247,737 82,237 2,235,906 2,128,950 (106,956) 550 550 343,185 304,094 39,091 2,638,816 2,638,816
343,185 304,094 39,091 2,638,816 2,638,816
(177,685) (56,357) 121,328 (402,910) 2,128,950 2,531,860 550 550 (21,997) (21,997)
(21,997) (21,997)
($199,682) (78,354) $121,328 ($402,910) 2,128,950 $2,531,860 550 $550 506,774 13,201,623 46,612
$428,420 $15,330,573 $47,162
(Continued)

SPECIAL REVENUE FUNDS
137

CITY OF HAYWARD

BUDGETED NON-MAJOR FUNDS

COMBINING SCHEDULES OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Adjusted
Budget Actual
Variance
Positive
(Negative)
Adjusted
Budget Actual
Variance
Positive
(Negative)
REVENUES:

Other taxes $490,000 $564,498 $74,498
Special assessments
Investment income $3,415 $3,415 4,000 16,996 12,996
Rental income
Intergovernmental 45,000 45,000 580,477 1,098,974 518,497 Fees and charges for services
Other revenue $10,000 146,551 136,551 2,500 (2,500)
Total Revenues 10,000 194,966 184,966 1,076,977 1,680,468 603,491 EXPENDITURES:

Current:

Public safety 414,114 122,745 291,369
Public works and transportation 117,135 31,018 86,117 1,879,526 624,252 1,255,274 Library and community services 907,622 318,012 589,610
Economic development
Maintenance services
Capital outlay
Debt service
Principal
Interest and fiscal charges
Total Expenditures 531,249 153,763 377,486 2,787,148 942,264 1,844,884

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (521,249) 41,203 562,452 (1,710,171) 738,204 2,448,375

OTHER FINANCING SOURCES (USES)
Gain on sale of land hel
d
Transfers in
Transfers (out) (51,042) (51,042)
Total Other Financing Sources (Uses) (51,042) (51,042)
NET CHANGE IN FUND BALANCES ($521,249) 41,203 $562,452 ($1,761,213) 687,162 $2,448,375 BEGINNING FUND BALANCES, AS RESTATED 712,272 3,604,049
ENDING FUND BALANCES $753,475 $4,291,211
Donation Recycling

SPECIAL REVENUE FUNDS
138
Adjusted
Budget Actual
Variance
Positive
(Negative)
Adjusted
Budget Actual
Variance
Positive
(Negative)
Adjusted
Budget Actual
Variance
Positive
(Negative)
$1,420,709 $1,408,903 ($11,806)
$2,341 $2,341 20,459 15,075 (5,384) $11,739 $11,739
2,844,270 2,844,270
83,001 83,001
85,342 85,342 1,441,168 1,423,978 (17,190) 2,856,009 2,856,009 2,008,816 1,092,071 916,745
$7,185,717 3,418,713 3,767,004
2,008,816 1,092,071 916,745 7,185,717 3,418,713 3,767,004 85,342 85,342 (567,648) 331,907 899,555 (7,185,717) (562,704) 6,623,013 85,342 $85,342 ($567,648) 331,907 $899,555 ($7,185,717) (562,704) $6,623,013 425,652 3,337,648 4,634,920
$510,994 $3,669,555 $4,072,216
(Continued)
Park Maintenance DistrictNarcotics Asset Seizure Measure B Local Streets and Roads

SPECIAL REVENUE FUNDS
139

CITY OF HAYWARD

BUDGETED NON-MAJOR FUNDS

COMBINING SCHEDULES OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Measure B Paratransit
Adjusted
Budget Actual
Variance
Positive
(Negative)
Adjusted
Budget Actual
Variance
Positive
(Negative)
REVENUES:

Other taxes
Special assessments
Investment income $5,143 $5,143 $5,743 $5,743
Rental income
Intergovernmental 571,284 571,284 $957,338 1,032,064 74,726 Fees and charges for services
Other revenue
Total Revenues 576,427 576,427 957,338 1,037,807 80,469 EXPENDITURES:

Current:

Public safety
Public works and transportation
Library and community services 1,870,835 947,754 923,081 Economic development
Maintenance services
Capital outlay $1,318,951 78,399 1,240,552
Debt service
Principal
Interest and fiscal charges
Total Expenditures 1,318,951 78,399 1,240,552 1,870,835 947,754 923,081

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (1,318,951) 498,028 1,816,979 (913,497) 90,053 1,003,550

OTHER FINANCING SOURCES (USES)
Gain on sale of land hel
d
Transfers in
Transfers (out) (56,366) (56,366)
Total Other Financing Sources (Uses) (56,366) (56,366)
NET CHANGE IN FUND BALANCES ($1,318,951) 498,028 $1,816,979 ($969,863) 33,687 $1,003,550 BEGINNING FUND BALANCES, AS RESTATED 963,930 1,432,844
ENDING FUND BALANCES $1,461,958 $1,466,531
Measure B Pedestrian

SPECIAL REVENUE FUNDS
140
Measure BB
Measure F Local Grants
Adjusted
Budget Actual
Variance
Positive
(Negative)
Adjusted
Budget Actual
Variance
Positive
(Negative)
Adjusted
Budget Actual
Variance
Positive
(Negative)
$45,246 $45,246 $3,047 $3,047 $284 $284
$850,661 3,904,350 3,053,689 883,704 883,704 $66,516 760,685 694,169 5,000 5,000
49,400 49,400 12,229 12,229
850,661 3,998,996 3,148,335 886,751 886,751 66,516 778,198 711,682 1,815,884 796,910 1,018,974
26,354 (26,354) 2,413 (2,413)
11,376,924 524,923 10,852,001 $1,898,951 901,460 997,491 11,376,924 551,277 10,825,647 1,898,951 903,873 995,078 1,815,884 796,910 1,018,974 (10,526,263) 3,447,719 13,973,982 (1,898,951) (17,122) 1,881,829 (1,749,368) (18,712) 1,730,656 ($10,526,263) 3,447,719 $13,973,982 ($1,898,951) (17,122) $1,881,829 ($1,749,368) (18,712) $1,730,656 8,868,232 975,580 51,689
$12,315,951 $958,458 $32,977
(Continued)

SPECIAL REVENUE FUNDS
141

CITY OF HAYWARD

BUDGETED NON-MAJOR FUNDS

COMBINING SCHEDULES OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2021

SPECIAL REVENUE FUNDS
RRAA (SB1)
Adjusted
Budget Actual
Variance
Positive
(Negative)
Adjusted
Budget Actual
Variance
Positive
(Negative)
REVENUES:

Other taxes
Special assessments
Investment income $9,170 $9,170 $310 $310
Rental income $430,000 520,189 90,189
Intergovernmental 2,942,920 2,942,920
Fees and charges for services
Other revenue
Total Revenues 2,952,090 2,952,090 430,000 520,499 90,499 EXPENDITURES:

Current:

Public safety
Public works and transportation
Library and community services
Economic development 587,352 428,811 158,541
Maintenance services
Capital outlay $5,757,547 2,757,546 3,000,001
Debt Service
Principal
Interest and fiscal charges
Total Expenditures 5,757,547 2,757,546 3,000,001 587,352 428,811 158,541

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (5,757,547) 194,544 5,952,091 (157,352) 91,688 249,040

OTHER FINANCING SOURCES (USES)
Gain on sale of land hel
d
Transfers in
Transfers (out) (4,262) (4,262)
Total Other Financing Sources (Uses) (4,262) (4,262)
NET CHANGE IN FUND BALANCES ($5,757,547) 194,544 $5,952,091 ($161,614) 87,426 $249,040 BEGINNING FUND BALANCES, AS RESTATED 2,981,919 127,327
ENDING FUND BALANCES $3,176,463 $214,753
Rental Housing Program
142

SPECIAL REVENUE FUNDS

DEBT SERVICE FUND CAPITAL PROJECTS FUNDS
Certificates of Participation
Adjusted
Budget Actual
Variance
Positive
(Negative)
Adjusted
Budget Actual
Variance
Positive
(Negative)
Adjusted
Budget Actual
Variance
Positive
(Negative)
$24,000 $46,310 $22,310 $3,000 $29,100 $26,100 $61,562 $61,562 104,069 104,069
2,000,000 2,193,532 193,532 8,225 8,225
13,616,861 13,616,861
2,024,000 2,239,842 215,842 3,000 29,100 26,100 13,790,717 13,790,717 5,216,867 294,817 4,922,050
$23,889,010 3,400,102 20,488,908
8,348,296 5,416,028 2,932,268
427,388 2,795,772 (2,368,384)
5,216,867 294,817 4,922,050 8,775,684 8,211,800 563,884 23,889,010 3,400,102 20,488,908 (3,192,867) 1,945,025 5,137,892 (8,772,684) (8,182,700) 589,984 (23,889,010) 10,390,615 34,279,625 3,390,000 3,390,000
8,218,043 8,218,043
8,218,043 8,218,043 3,390,000 3,390,000
($3,192,867) 1,945,025 $5,137,892 ($554,641) 35,343 $589,984 ($23,889,010) 13,780,615 $37,669,625 9,631,863 7,276,339 (9,212,995)
$11,576,888 $7,311,682 $4,567,620
(Continued)
Route 238 Corridor ImprovementAffordable Housing
143

CITY OF HAYWARD

BUDGETED NON-MAJOR FUNDS

COMBINING SCHEDULES OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2021

CAPITAL PROJECTS FUNDS
Traffic Signal Construction
Adjusted
Budget Actual
Variance
Positive
(Negative)
REVENUES:

Other taxes
Special assessments
Investment income $4,183 $4,183
Rental income
Intergovernmental
Fees and charges for services
Other revenue 20,000 20,000
Total Revenues 24,183 24,183
EXPENDITURES:

Current:

Public safety
Public works and transportation
Library and community services
Economic development
Maintenance services
Capital outlay $1,110,051 212,117 897,934
Debt Service
Principal
Interest and fiscal charges
Total Expenditures 1,110,051 212,117 897,934

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (1,110,051) (187,934) 922,117

OTHER FINANCING SOURCES (USES)
Gain on sale of land hel
d
Transfers in 400,000 400,000
Transfers (out)
Total Other Financing Sources (Uses) 400,000 400,000
NET CHANGE IN FUND BALANCES ($710,051) 212,066 $922,117 BEGINNING FUND BALANCES, AS RESTATED 790,504
ENDING FUND BALANCES $1,002,570
144

NON-MAJOR ENTERPRISE FUNDS
Stormwater Fund
– Accounts for activities with stormwater management and urban runoff control, as required by Federal and State law.

Airport Fund – Accounts for the operation, developm ent and maintenance of the Hayward Air Terminal.

Recycling Fund – Accounts for the transactions related to the City’s recycling and waste reduction programs.
145

CITY OF HAYWARD

NONMAJOR ENTERPRISE FUNDS

COMBINING STATEMENTS OF NET POSITION
JUNE 30, 2021
Stormwater Airport Recycling Totals
Current Assets:

Cash and investments $5,006,092 $9,685,576 $14,691,668
Accounts receivable, net 1,743,504 337,359 $65,226 2,146,089 Due from other governments 9,989 9,989
Total Current Assets 6,759,585 10,022,935 65,226 16,847,746 Noncurrent Assets:

Deposits, parts, supplies and other 12,918 12,918
Capital assets
Land 244,302 244,302
Construction in progress 558,203 558,203
Depreciable capital assets, net 583 12,212,553 12,213,136 Total Noncurrent Assets 583 13,027,976 13,028,559
Total Assets 6,760,168 23,050,911 65,226 29,876,305

DEFERRED OUTFLOWS OF RESOURCES
Related to pensions 251,469 205,580 14,770 471,819
Related to OPEB 118,460 97,077 7,408 222,945
Total Deferred Outflows of Resources 369,929 302,657 22,178 694,764 LIABILITIES:

Current Liabilities:

Accounts payable 51,089 103,587 154,676
Accrued interest 3,834 3,834
Accrued liabilities 48,451 40,017 2,001 90,469
Refundable deposits 113,940 113,940
Due to other funds 136,051 136,051
Compensated absences, due within one year 54,750 57,783 112,533 Long term debt, due within one year 142,556 142,556
Total Current Liabilities 154,290 461,717 138,052 754,059 Noncurrent Liabilities:

Compensated absences, due in more than one year 59,626 62,928 122,554 Net pension liabilities, due in more than one year 2,359,794 1,929,174 138,569 4,427,537 Net OPEB liabilities, due in more than one year 924,915 757,961 57,841 1,740,717 Long term debt, due in more than one year 444,274 444,274 Total Noncurrent Liabilities 3,344,335 3,194,337 196,410 6,735,082 Total Liabilities 3,498,625 3,656,054 334,462 7,489,141

DEFERRED INFLOWS OF RESOURCES
Related to pensions 4,055 3,315 15 7,385
Related to OPEB 500,141 409,862 31,277 941,280
Total Deferred Inflows of Resources 504,196 413,177 31,292 948,665 NET POSITION:

Net investments in capital assets 583 12,428,228 12,428,811 Unrestricted 3,126,693 6,856,109 (278,350) 9,704,452
Total Net Position $3,127,276 $19,284,337 ($278,350) $22,133,263 146

CITY OF HAYWARD

NONMAJOR ENTERPRISE FUNDS

COMBINING STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED JUNE 30, 2021
Stormwater Airport Rec ycling Total
OPERATING REVENUES:

Charges for services $3,597,200 $3,383,803 $42,546 $7,023,549 Miscellaneous 36,000 227,018 263,018
Total Operating Revenues 3,633,200 3,610,821 42,546 7,286,567 OPERATING EXPENSES:

Salaries and related expenses 1,957,304 1,385,036 273,748 3,616,088 Materials, supplies and services 751,169 835,915 9,621 1,596,705 Repairs and maintenance 18,846 230,634 249,480
Depreciation 165 976,764 976,929
Total Operating Expenses 2,727,484 3,428,349 283,369 6,439,202 Operating Income (Loss) 905,716 182,472 (240,823) 847,365 NONOPERATING REVENUES:

Investment income 23,580 42,247 365 66,192
Net Nonoperating Revenues 23,580 42,247 365 66,192
Income (Loss) Before Contributions and Transfers 929,296 224,719 (240,458) 913,557

TRANSFERS
Transfers in 600,000 600,000
Transfers (out) (2,528,668) (262,836) (773,782) (3,565,286) Net Transfers (2,528,668) (262,836) (173,782) (2,965,286) CHANGE IN NET POSITION (1,599,372) (38,117) (414,240) (2,051,729) BEGINNING NET POSITION 4,726,648 19,322,454 135,890 24,184,992 ENDING NET POSITION $3,127,276 $19,284,337 ($278,350) $22,133,263 147

CITY OF HAYWARD

NONMAJOR ENTERPRISE FUNDS

COMBINING STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2021
Stormwater Airport Recycling Total

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $3,619,004 $3,615,746 $42,546 $7,277,296 Payments to suppliers (732,952) (1,000,951) (7,620) (1,741,523) Payments to employees (1,931,758) (1,641,547) (133,450) (3,706,755) Net Cash Flows From Operating Activities 954,294 973,248 (98,524) 1,829,018

CASH FLOWS FROM NONCAPITAL AND
RELATED FINANCING ACTIVITIES:

Interfund receipts 136,051 136,051
Transfers in 600,000 600,000
Transfers (out) (2,528,668) (262,836) (773,782) (3,565,286) Net Cash Flows From Noncapital and
Related Financing Activities (2,528,668) (262,836) (37,731) (2,829,235)

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of capital assets (463,653) (463,653)
Principal payments on capital debt (135,533) (135,533)
Interest paid on capital debt (683) (683)
Net Cash Flows From Capital and
Related Financing Activities (599,869) (599,869)
CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income 23,580 42,247 365 66,192
Net Cash Flows From Investing Activities 23,580 42,247 365 66,192 NET CASH FLOWS (1,550,794) 152,790 (135,890) (1,533,894) CASH AND EQUIVALENTS AT BEGINNING OF PERIOD 6,556,886 9,532,786 135,890 16,225,562 CASH AND EQUIVALENTS AT END OF PERIOD $5,006,092 $9,685,576 $14,691,668

RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED BY OPERATING ACTIVITIES:

Operating income (loss) $905,716 $182,472 ($240,823) $847,365 Adjustments to reconcile operating income to net cash
provided by operating activities:

Depreciation 165 976,764 976,929
Change in assets and liabilities:

Receivables, net (21,119) 4,925 (65,226) (81,420)
Due from other governments 6,923 6,923
Accounts payable and other accrued expenses 37,063 60,997 2,001 100,061 Refundable deposits 4,601 4,601
Due to retirement system 63,451 7,006 123,814 194,271
Due to OPEB (59,006) (285,215) 81,710 (262,511)
Compensated absences 21,101 21,698 42,799
Net Cash Flows From Operating Activities $954,294 $973,248 ($98,524) $1,829,018 148

INTERNAL SERVICE FUNDS
Internal service funds are used to finance and acco unt for special activities and services performed by
a designated department for other departments in the City on a cost reimbursement basis.

The concept of major funds does not extend to internal service fund s because they do not do business with outside parties. GASB St atement 34 requires that for the Statement of Activities, the net revenues or expenses of each internal service f und be eliminated by netting them against the operations of the other City departments which ge nerated them. The remain ing balance sheet items are consolidated with these same funds in the Statement of Net Position.

However, internal service funds are still presente d separately in the Fund financial statements, including the funds below.

Workers’ Compensation Insurance Fund – Accounts for workers’ compensation reimbursable costs.

General Liability Fund – Accounts for risk management expenses and self-insurance costs.

Facilities Management Fund – Accounts for operation, maintenanc e and replacement of City Hall and other city-owned buildings.

Fleet Management Fund – Accounts for operation, maintenance and replacement of vehicles.

Technology Services Fund – Accounts for operation, maintenance and replacement of Technology infrastructure and resources.

Employee Benefits Fund – Accounts for funding related to Ot her Post Employment Benefits (OPEB) and payments for the retiree medical stipends.
149
Workers'
Compensation
Insurance* General Liability
Facilities
Management
ASSETS:

Current Assets:

Cash and investments $28,659,608 $5,378,845 $1,280,541
Accounts receivable, net 496,445 1,694 6,016
Due from other governments
Total Current Assets 29,156,053 5,380,539 1,286,557
Noncurrent Assets:

Long-term loans to the Private Purpose Trust Fund 27,021 Land 372,748
Construction in progress 525
Depreciable capital assets, net 2,523,514
Total Noncurrent Assets 27,021 2,896,787
Total Assets 29,156,053 5,407,560 4,183,344
DEFERRED OUTFLOWS OF RESOURCES:

Related to pensions 78,928 77,093 209,251
Related to OPEB 37,049 36,194 98,745
Total Deferred Outflows of Resources 115,977 113,287 307,996 LIABILITIES:

Current Liabilities:

Accounts payable 47,396 218,355 320,862
Accrued interest
Accrued liabilities* 13,640,796 6,986,692 40,322
Unearned revenue 3,800 4,600
Refundable deposits 4,439
Compensated absences, due within one year 23,970 32,557 89,122 Long-term debt, due within one year
Total Current Liabilities 13,715,962 7,237,604 459,345
Noncurrent Liabilities:

Compensated absences, due in more than one year 12,266 16,661 45,608 Net pension liabilities, due in more than one year 740,664 723,439 1,963,623 Net OPEB liabilities, due in more than one year 289,271 282,598 770,988 Long-term debt, due in more than one year
Total Noncurrent Liabilities 1,042,201 1,022,698 2,780,219 Total Liabilities 14,758,163 8,260,302 3,239,564
DEFERRED INFLOWS OF RESOURCES:

Related to pensions 1,274 1,243 3,374
Related to OPEB 156,421 152,813 416,906
Total Deferred Inflows of Resources 157,695 154,056 420,280 NET POSITION:

Net investments in capital assets 2,896,787
Unrestricted 14,356,172 (2,893,511) (2,065,291)
Total Net Position $14,356,172 ($2,893,511) $831,496
and unreported claims as required by GASB Standard number 10. * Accrued liabilities balance in Workers' Compensation Insurance Fund includes the ultimate cost of all reported

CITY OF HAYWARD

INTERNAL SERVICE FUNDS

COMBINING STATEMENTS OF NET POSITION
JUNE 30, 2021
150
Fleet Management
Technology Services Employee Benefits Total
$7,496,590 $6,080,673 $4,261,174 $53,157,431
8,331 77,309 589,795
92,658 92,658
7,597,579 6,157,982 4,261,174 53,839,884
27,021
372,748
176,992 2,473,451 2,650,968
15,778,093 1,322,422 19,624,029
15,955,085 3,795,873 22,674,766
23,552,664 9,953,855 4,261,174 76,514,650
214,758 473,568 1,053,598
100,845 222,619 495,452
315,603 696,187 1,549,050
702,767 626,582 7,190 1,923,152
5,192 5,192
38,516 90,623 20,796,949
7,071 12,418 27,889
4,439
69,740 261,978 477,367
220,936 220,936
1,044,222 991,601 7,190 23,455,924
35,689 134,067 244,291
2,015,295 4,443,995 9,887,016
787,378 1,738,173 3,868,408
606,339 606,339
3,444,701 6,316,235 14,606,054
4,488,923 7,307,836 7,190 38,061,978
3,463 7,634 16,988
425,769 939,904 2,091,813
429,232 947,538 2,108,801
15,127,810 3,795,873 21,820,470
3,822,302 (1,401,205) 4,253,984 16,072,451
$18,950,112 $2,394,668 $4,253,984 $37,892,921
151

CITY OF HAYWARD

INTERNAL SERVICE FUNDS

COMBINING STATEMENTS OF REVENUES, EXPENSES AND

CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2021
Workers'
Compensation
Insurance General Liability
Facilities
Management

OPERATING REVENUES
Charges for services $9,562,611 $4,346,878
Other 74 $31,930 194,716
Total Operating Revenues 9,562,685 31,930 4,541,594

OPERATING EXPENSES
Salaries and related expenses 612,376 939,240 1,664,045 Materials, supplies and services 579,593 3,585,174 1,375,576 Repairs and maintenance 1,094,212
Self-funded insurance expense 1,296,191 2,412,222
Depreciation 130,237
Total Operating Expenses 2,488,160 6,936,636 4,264,070
Operating Income (Loss) 7,074,525 (6,904,706) 277,524

NONOPERATING REVENUES (EXPENSES)
Investment income 115,211 20,064 3,030
Interest (expense) (2,045)
Gain (loss) on sale of capital assets
Total Nonoperating Revenues (Expenses) 115,211 20,064 985 Income (Loss) Before Transfers 7,189,736 (6,884,642) 278,509

CONTRIBUTIONS AND TRANSFERS
Transfers in 5,252,558 295,000
Transfers (out) (21,308) (48,209)
Net Contributions and Transfers (21,308) 5,252,558 246,791 CHANGE IN NET POSITION 7,168,428 (1,632,084) 525,300
BEGINNING NET POSITION (DEFICIT) 7,187,744 (1,261,427) 306,196 ENDING NET POSITION (DEFICIT) $14,356,172 ($2,893,511) $831,496 152
Fleet Management
Technology Services Employee Benefits Total
$4,958,150 $7,708,677 $3,458,656 $30,034,972
1,124,092 789,743 2,140,555
6,082,242 8,498,420 3,458,656 32,175,527
1,555,361 5,031,006 9,802,028
838,160 3,073,102 783,882 10,235,487
841,034 1,913,628 3,848,874
4,520,402 8,228,815
2,488,688 374,286 2,993,211
5,723,243 10,392,022 5,304,284 35,108,415
358,999 (1,893,602) (1,845,628) (2,932,888)
32,076 21,148 17,830 209,359
(25,476) (27,521)
82,854 (10,725) 72,129
89,454 10,423 17,830 253,967
448,453 (1,883,179) (1,827,798) (2,678,921)
1,406,870 2,000,000 8,954,428
(78,039) (104,012) (251,568)
(78,039) 1,302,858 2,000,000 8,702,860
370,414 (580,321) 172,202 6,023,939
18,579,698 2,974,989 4,081,782 31,868,982
$18,950,112 $2,394,668 $4,253,984 $37,892,921
153

CITY OF HAYWARD

INTERNAL SERVICE FUNDS

COMBINING STATEMENTS OF CASH FLOW
FOR THE YEAR ENDED JUNE 30, 2021
Workers'
Compensation General Facilities
Insurance Liabilit y Management

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $9,259,034 $30,236 $4,543,413
Payments to suppliers (3,717,300) (4,329,770) (2,621,992) Payments to employees (568,096) (803,832) (1,604,463)
Cash Flows from Operating Activities 4,973,638 (5,103,366) 316,958

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Transfers in 5,252,558 295,000
Transfers out (21,308) (48,209)
Cash Flows from Noncapital Financing Activities (21,308) 5,252,558 246,791

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition of capital assets
Proceeds from sale of capital assets
Principal payments on capital deb
t (93,308)
Interest paid on capital debt (2,106)
Cash Flows from Capital and Related
Financing Activities (95,414)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment income 212,250 20,064 3,030
Cash Flows from Investing Activities 212,250 20,064 3,030 Net increase (decrease) in cash and cash equivalents 5,164,580 169,256 471,365 Cash and cash equivalents at beginning of period 23,495,028 5,209,589 809,176 Cash and cash equivalents at end of period $28,659,608 $5,378,845 $1,280,541 Reconciliation of operating income (loss) to net cash provided by operating activities:

Operating income (loss) $7,074,525 ($6,904,706) $277,524 Adjustments to reconcile operating income to net cash provide d
by operating activities:

Depreciation 130,237
Change in assets and liabilities:

Receivables, net (303,651) 355
Due from other governments
Accounts payable and other accrued expenses (1,841,516) 1,667,626 (152,204) Due to retirement syste
m 19,916 94,230 (36,935)
Due to OPEB 18,656 9,761 84,047
Compensated absences 5,708 31,417 12,470
Unearned revenue (1,694) 1,464
Cash Flows from Operating Activities $4,973,638 ($5,103,366) $316,958 154

Fleet Technology Employee
Management Services Benefits Total
$6,184,343 $8,499,636 $3,458,656 $31,975,318
(1,097,396) (5,705,673) (5,304,367) (22,776,498)
(1,629,404) (3,804,219) (8,410,014)
3,457,543 (1,010,256) (1,845,711) 788,806
1,406,870 2,000,000 8,954,428
(78,039) (104,012) (251,568)
(78,039) 1,302,858 2,000,000 8,702,860
(2,632,913) (1,714,571) (4,347,484)
82,854 82,854
(333,499) (426,807)
(27,695) (29,801)
(2,911,253) (1,714,571) (4,721,238)
32,076 21,148 17,830 306,398
32,076 21,148 17,830 306,398
500,327 (1,400,821) 172,119 5,076,826
6,996,263 7,481,494 4,089,055 48,080,605
$7,496,590 $6,080,673 $4,261,174 $53,157,431
$358,999 ($1,893,602) ($1,845,628) ($2,932,888)
2,488,688 374,286 2,993,211
553,058 (8,703) 241,059
(92,658) (92,658)
581,798 (718,943) (83) (463,322)
(155,192) 568,163 490,182
58,771 538,986 710,221
22,378 119,638 191,611
(358,299) 9,919 (348,610)
$3,457,543 ($1,010,256) ($1,845,711) $788,806
155
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CUSTODIAL FUNDS
Custodial Funds account for assets held by the City as an agent for individuals, governmental entities, and non-public organizations. Thes
e funds include the following:

Local Improvement Districts Fund – Accounts for debt service activities for LIDs #14, #15, #16, #17 and Community Faculties District #1. The City has no commitment for the repayment of these Districts’ debt.

South Hayward BART Parking District JPA – A ccount for related revenues and expenditures related to the Joint Powers Authority ag reement between the City and Ba y Area Rapid Transit (BART) for the purpose of providing parking access around the South Hayward BART station.

Other Agency Funds – Accounts for activities of Hayward Coalition for Youth and the Hayward Friends of the Library Fund.
157

FIDUCIARY FUNDS

COMBINING STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2021
Local South Ha yward
Improvement BART Parkin g Other Custodial
Districts Fund District JPA Fund Funds Total
ASSETS:

Cash and investments $3,760,300 $930,831 $33,950 $4,725,081 Cash and investments with fiscal agents 353,843 353,843 Accounts receivable, net 3,053 844
18,403 22,300
Due from other governments 109,233 109,233
Deposits, parts, supplies and other 201,524 201,524
Total Assets 4,427,953 931,675 52,353 5,411,981
CURRENT LIABILITIES:

Accounts payable and accrued liabilities 195,723 160 748 196,631 Deferred revenue 104,988 844 18,403 124,235
Refundable deposits 19,104 11,393 30,497
Total Liabilities 319,815 1,004 30,544 351,363

NET POSITION
Restricted for:

Organizations and other governments 930,671 21,809 952,480 Unrestricted 4,108,138 4,108,138
Total Net Position $4,108,138 $930,671 $21,809 $5,060,618 Custodial Funds

CITY OF HAYWARD
158
Local South Ha yward
Improvement BART Parkin g Other Custodial
Districts Fund District JPA Fund Funds Total

ADDITIONS
Property tax $1,116,326 $1,116,326
Intergovernmental revenue $262,872 262,872
Other revenue 64,270 64,270
Investment income 14,102 $4,055 100 18,257
Total additions 1,130,428 4,055 327,242 1,461,725

DEDUCTIONS
Maintenance services 495,442 8,384 503,826
Contractual services 203,786 203,786
Payments to bondholders 349,366 349,366
Interest and fiscal charges 217,330 217,330
Total deductions 1,062,138 8,384 203,786 1,274,308
Net change in position 68,290 (4,329) 123,456 187,417
Net position (deficit) - beginning, as restated 4,039,848 935,000 (101,647) 4,873,201 Net position - ending $4,108,138 $930,671 $21,809 $5,060,618 Custodial Funds

CITY OF HAYWARD

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE YEAR ENDED JUNE 30, 2021
159
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STATISTICAL SECTION

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STATISTICAL SECTION
The statistical section of the City’s Annual Comprehensive Financial Report presents detailed information as a context for understanding the in
formation in the financial statemen ts, note disclosures, and required supplementary information. This section provides a history of the City’s overall financial health. In contrast to the financial section, the statistical section information is not subject to independent audit.

Financial Trends
These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time:

1. Net Position by Component

2. Changes in Net Position

3. Fund Balances of Governmental Funds

4. Changes in Fund Balance of Governmental Funds
Revenue Capacity
These schedules contain information to help the read er assess the City’s most significant local revenue source, the property tax:

1. Assessed and Estimated Actual Value of Taxable Property

2. Property Tax Rates, All Overlapping Governments

3. Principal Property Taxpayers

4. Property Tax Levies and Collections
Debt Capacity
These schedules present information to help the reader assess the affordab ility of the City’s current levels of outstanding debt and the City’s ability
to issue additional debt in the future:

1. Ratio of Outstanding Debt by Type

2. Computation of Direct and Overlapping Debt

3. Computation of Legal Bonded Debt Margin

4. Revenue Bond Coverage Wastewater Revenue Bonds

5. Bonded Debt Pledged Revenue Coverage, Tax Allocation Bonds Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the

environment within which the City’s financial activities take place:

1. Demographic and Economic Statistics

2. Principal Employers
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information
in the City’s financial report relates to the services the City provides and the activities it performs:

1. Full-Time Equivalent City Government Employees by Function

2. Operating Indicators by Function/Program

3. Capital Asset Statistics by Function/Program
Sources
Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports for the relevant year.
163
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* To comply with GASB 68 an adjustment was made to the City's total unrestricted net position, decreasing it by $311,685,673 in FY 2015. The negative Net Position offsets the Net Pension Liabilities of $284,150,333.

Fiscal Year Ended June 30,
2012 2013 2014 2015* 2016 2017 2018 2019 2020 2021
Governmental activities
Net investment in capital assets $249,020,221 $279,525,198 $290,077,936 $305,320,098 $254,986,441 $324,056,697 $324,408,453 $329,532,55 2 $340,992,711 $357,492,270 Restricted 54,205,450 42,224,510 31,382,199 33,021,745 68,045,952 68,431,025 37,795,705 41,119,395 94,077,986 117,664,651 Unrestricted 35,822,808 33,214,883 43,176,179 (257,512,639) (195,715,585) (266,000,254) (327,597,600) (322,106,063) (373,531,268) (368,801,977) Total governmental activities net position $339,048,479 $354,964,591 $364,636,314 $80,829,204 $127,316,808 $126,487,468 $34,606,558 $48 ,545,884 $61,539,429 $106,354,944 Business-type activities
Net investment in capital assets $112,987,363 $116,593,166 $128,869,837 $129,150,393 $128,152,757 $134,479,298 $141,998,213 $148,443,35 3 $148,432,952 $145,334,998 R e s t r i c t e d 00000000 284,001 2
Unrestricted 139,002,268 140,296,857 143,368,162 140,262,979 156,403,925 160,313,212 148,088,671 172,060,648 200,188,102 223,235,836 Total business-type activities net position $251,989,631 $256,890,023 $272,237,999 $269,413,372 $284,556,682 $294,792,510 $290,086,884 $320,504,001 $348,905,055 $368,570,836 Primary government
Net investment in capital assets $362,007,584 $396,118,364 $418,947,773 $434,470,491 $383,139,198 $458,535,995 $466,406,666 $477,975,90 5 $489,425,663 $502,827,268 Restricted 54,205,450 42,224,510 31,382,199 33,021,745 68,045,952 68,431,025 37,795,705 41,119,395 94,361,987 117,664,653 Unrestricted 174,825,076 173,511,740 186,544,341 (117,249,660) (39,311,660) (105,687,042) (179,508,929) (150,045,415) (173,343,166) (145,566,141) Total primary government net position $591,038,110 $611,854,614 $636,874,313 $350,242,576 $411,873,490 $421,279,978 $324,693,442 $369,0 49,885 $410,444,484 $474,925,780

CITY OF HAYWARD
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
($200,000)
($100,000)
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
2012 2013 2014 2015* 2016 2017 2018 2019 2020 2021
Thousands
Net of Related Debt Restricted Unrestricted
Source: City of Hayward Annual Comprehensive Financial Report 165

CITY OF HAYWARD
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Fiscal Year Ended June 30,
2012 2013 2014 2015
Expenses
Governmental Activities:

General Government $9,417,144 $11,162,908 $11,989,512 $16,245,827 Public Safety 96,991,346 100,470,925 102,494,680 106,541,527 Public Works and Transportation 12,400,798 13,689,585 8,851,489 12,295,579 Library and Community Services 7,645,958 7,490,405 8,073,175 5,150,554 Economic Development 2,078,030 1,285,830 1,432,514 835,342 Planning and Building 5,642,610 6,102,300 6,293,037 6,831,521 Maintenance Services 4,030,146 3,896,951 4,790,594 5,798,009 Community Development
Culture and Leisure
Nondepartmental
Interest on Long Term Debt 3,685,703 2,056,984 1,131,490 1,400,778 Total Governmental Activities Expenses 141,891,735 146,155,888 145,056,491 155,099,137 Business-Type Activities:

Sewer 17,977,438 19,127,813 17,443,979 19,967,350
Water 36,010,696 38,837,206 38,252,368 36,953,171
Airport 3,271,942 3,252,108 3,443,655 3,489,917
Centennial Hall Maintenance and Operation
Stormwater 2,235,721 2,402,138 2,419,567 2,373,574
Recycling
Total Business-Type Activities Expenses 59,495,797 63,619,265 61,559,569 62,784,012 Total Primar
y Government Expenses $201,387,532 $209,775,153 $206,616,060 $217,883,149 Program Revenues
Governmental Activities:

Charges for Services:

General Government $2,162,950 $2,505,144 $3,348,209 $3,404,484 Public Safety 8,139,780 3,308,573 3,332,950 3,311,997
Public Works and Transportation 4,382,791 3,780,364 4,121,654 4,966,061 Library and Community Services 110,465 95,682 85,256 116,787 Economic Development 77,251 2,749,344 1,292,172
Planning and Building 4,312,438 3,541,420 5,026,469 4,536,430 Maintenance Services 399,721 710,653 1,243,660 1,504,197 Community Development
Culture and Leisure
Nondepartmental
Operating Grants and Contributions 25,163,445 6,998,650 7,634,799 10,587,001 Capital Grants and Contributions 32,561,709 26,479,205 9,066,354 5,807,599 Total Government Activities Program Revenues 77,310,550 47,419,691 36,608,695 35,526,728* Due to City of Hayward Departmental reorganization, Community Development, and Culture and Leisure Departments no longer exist.

Source: City of Hayward Annual Comprehensive Financial Report 166
Fiscal Year Ended June 30,
2016 2017 2018 2019 2020 2021
$14,192,819 $16,158,933 $36,743,529 $26,842,761 $30,267,967 $24,801,183 118,423,530 128,069,028 136,621,829 130,098,500 128,620,640 139,350,883 14,414,107 25,599,837 24,077,319 26,136,150 22,129,650 26,493,672 9,047,644 7,056,242 10,673,935 10,026,345 10,983,659 11,444,270 1,762,937 152,175 1,480,505 2,177,009 2,565,850 2,981,340 7,281,726 8,628,739 11,093,298 10,688,978 10,662,520 10,430,293 6,156,886 8,288,824 11,482,643 11,993,462 12,156,273 12,442,998 1,490,140 3,078,848 3,238,555 2,863,705 2,784,563 2,551,130 172,769,788 197,032,626 235,411,613 220,826,910 220,171,122 230,495,769 23,757,316 22,755,149 19,762,825 22,065,651 20,147,930 21,928,468 38,253,454 46,225,355 52,084,024 46,827,858 47,714,898 49,135,479 3,976,602 6,348,333 4,236,680 4,045,984 3,755,558 3,428,349 3,042,678 2,450,088 2,817,649 2,793,121 2,784,429 2,727,484 16,514 283,369
69,030,050 77,778,925 78,901,178 75,732,614 74,419,329 77,503,149 $241,799,838 $274,811,551 $314,312,791 $296,559,524 $294,590,451 $307,998,918 $3,513,507 $2,627,359 $3,920,063 $3,328,124 $4,220,061 $2,491,348 3,585,912 4,638,881 4,859,695 4,837,363 4,240,808 3,537,739 5,620,367 7,009,479 6,019,771 6,061,761 4,894,838 5,505,441 1,312,128 2,537,062 317,596 3,101,839 885,787 3,919,571 544,108 520,189
6,060,654 6,926,489 6,294,675 7,052,017 5,479,966 5,751,306 1,088,664 1,488,851 1,555,141 1,652,433 1,489,507 1,682,246 13,611,989 11,984,727 10,626,753 14,868,015 14,757,617 29,517,552 31,255,350 1,463,593 2,472,715 4,831,794 5,780,882 5,395,405 66,048,571 38,676,441 36,066,409 45,733,346 42,293,574 58,320,797 (Continued)
167

CITY OF HAYWARD
Changes in Net Position
(continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Fiscal Year Ended June 30,
2012 2013 2014 2015
Business-Type Activities:

Charges for Services:

Sewer 22,333,628 22,136,846 25,527,904 28,389,311
Water 38,463,759 43,128,089 47,045,822 44,704,910
Airport 2,917,614 2,963,971 3,365,514 2,995,362
Centennial Hall Maintenance & Operation
Stormwater 2,738,050 2,821,653 2,777,228 2,832,703
Recycling
Operating Grants and Contributions 119,629 88,916
Capital Grants and Contributions
Total Business-Type Activities Program Revenue 66,572,680 71,139,475 78,716,468 78,922,286 Total Primary Government Program Revenues $143,883,230 $118,559,166 $115,325,163 $114,449,014 Net (Expense)/Revenue
Governmental Activities ($64,581,185) ($98,736,197) ($108,447,796) ($119,572,409) Business-Type Activities 7,076,883 7,520,210 17,156,899 16,138,274 Total Primary Government Net Expense ($57,504,302) ($91,215,987) ($91,290,897) ($103,434,135) Total Primary Government Net Expense
from prior page ($57,504,302) ($91,215,987) ($91,290,897) ($103,434,135) General Revenues and Other Changes in Net Position
Governmental Activities:

Taxes:

Property Taxes $35,715,527 $39,297,973 $39,456,863 $42,740,159 Incremental Property Tax 4,721,491
Special Assessments 817,210
Sales Taxes 26,346,354 29,197,989 31,019,079 39,148,631 Utility Users Tax 14,796,979 14,939,639 15,761,544 15,680,721 Real Property Transfer Tax 4,777,989 4,595,640 4,878,857 5,710,272 Franchise Tax 9,891,601 9,687,980 9,488,631 10,127,647
Business Tax 2,483,442 2,548,248 2,649,279 2,634,539
Excise Tax 1,742,210 1,868,695 1,694,229 2,142,691
Other Taxes 944,268 5,820,346 6,748,616 6,314,878
Motor Vehicle in-lieu, Unrestricted 75,744 78,484 64,954 62,743 Investment Earnings 369,203 534,927 424,910 349,196
Gain (Loss) on land held for resale
Gain (Loss) on Sale of Capital Assets (9,687) (352,880) Miscellaneous 685,054 3,192,697 3,473,568 2,996,956
Transfers (refer to ACFR Footnote 4) 2,167,125 2,889,691 2,458,989 2,618,309 Extraordinary Item (refer to ACFR Footnote 19) (9,342,122) Total Governmental Activities General Revenues
and Transfers 96,182,388 114,652,309 118,119,519 130,173,862 Business-Type Activities:

Investment Earnings 549,982 269,873 650,066 533,521
Gain (Loss) from disposal of capital assets
Loss on equity investment
Miscellaneous
Transfers (refer to ACFR Footnote 19) (2,167,125) (2,889,691) (2,458,989) (2,618,309) Total Business-Type Activities General Revenues
and Transfers (1,617,143) (2,619,818) (1,808,923) (2,084,788) Total Primary Government General Revenues
and Transfers $94,565,245 $112,032,491 $116,310,596 $128,089,074 Change in Net Position
Governmental Activities $31,601,203 $15,916,112 $9,671,723 $10,601,453 Business-Type Activities 5,459,740 4,900,392 15,347,976 14,053,486 Total Primary Government $37,060,943 $20,816,504 $25,019,699 $24,654,939 * Due to City of Hayward Departmental reorganization, Community Development, and Culture and Leisure Departments no longer exist.

Source: City of Hayward Annual Comprehensive Financial Report 168
Fiscal Year Ended June 30,
2016 2017 2018 2019 2020 2021
33,557,099 27,000,318 26,374,872 37,064,893 30,078,797 30,144,384 46,264,199 53,565,672 59,385,204 61,614,956 61,951,757 61,842,042 3,239,400 4,161,002 3,426,086 3,611,746 3,616,344 3,610,821 2,894,801 3,066,075 3,165,846 3,328,818 5,019,351 3,633,200 42,546
1,162,390 119,683
85,955,499 88,955,457 92,352,008 105,620,413 100,785,932 99,272,993 $152,004,070 $127,631,898 $128,418,417 $151,353,759 $143,079,506 $157,593,790 ($106,721,218) ($158,356,185) ($199,345,204) ($175,093,564) ($177,877,548) ($172,174,972) 16,925,449 11,176,532 13,450,830 29,887,799 26,366,603 21,769,844 ($89,795,769) ($147,179,653) ($185,894,374) ($145,205,765) ($151,510,945) ($150,405,128) ($89,795,769) ($147,179,653) ($185,894,374) ($145,205,765) ($151,510,945) ($150,405,128) $44,750,688 $48,768,731 $52,136,552 $55,970,615 $58,939,316 $62,227,460 46,495,377 48,848,674 48,550,524 52,917,415 56,566,457 58,652,032 22,040,616 20,753,813 17,487,828 16,935,327 16,065,943 17,267,592 7,849,464 8,349,727 9,168,329 12,256,155 12,150,286 17,120,032 10,139,140 9,646,261 9,647,904 9,730,173 10,581,960 10,624,234 2,603,305 3,664,550 4,550,835 4,415,292 4,057,795 4,365,441 3,782,330 2,226,200 2,261,598 2,329,766 2,383,998 2,070,754 5,774,001 5,607,637 6,924,304 8,637,556 8,505,009 8,497,353 61,688 71,223 84,769 77,775 126,184 117,578
523,123 1,470,868 1,253,635 3,277,620 3,272,624 1,124,743 10,982,198 3,390,000
882,491 121,761 49,910 82,854
5,505,290 5,130,121 5,514,057 7,837,732 15,167,508 18,633,107 2,801,309 2,861,623 2,621,785 3,665,266 3,054,013 3,185,444 153,208,822 157,521,189 160,252,030 189,032,890 190,871,093 207,358,624 1,019,170 1,920,919 925,665 4,305,963 5,088,464 1,081,381 135,712
(111,379)
(2,801,309) (2,861,623) (2,621,785) (3,665,266) (3,054,013) (3,185,444) (1,782,139) (940,704) (1,560,408) 529,318 2,034,451 (2,104,063) $151,426,683 $156,580,485 $158,691,622 $189,562,208 $192,905,544 $205,254,561 $46,487,604 ($834,996) ($39,093,174) $13,939,326 $12,993,545 $35,183,652 15,143,310 10,235,828 11,890,422 30,417,117 28,401,054 19,665,781 $61,630,914 $9,400,832 ($27,202,752) $44,356,443 $41,394,599 $54,849,433 169
Fiscal Year Ended
2012 2013 2014 2015 2016* 2017* 2018* 2019* 2020* 2021* General Fund
Reserved
Unreserved
Nonspendable
$7,047,042 $7,028,303 $9,255,154 $9,284,281 $8,474,463 $7,657,001 $6,880,088 $6,067,818 $5,242,902 $4,442,423 Restricted
Assigned
133,571 256,170 459,100 8,150,187 13,485,813 10,276,759 17,794,142 13,959,459 22,092,043 30,317,921 Unassigned 27,763,993 28,115,304 25,052,543 22,134,362 22,098,817 21,767,997 25,248,062 30,554,839 25,348,230 31,431,063 Total General Fund (a) $34,944,606 $35,399,777 $34,766,797 $39,568,830 $44,059,093 $39,701,757 $49,922,292 $50,582,116 $52,683,175 $66,191,407 All Other Governmental Funds
Reserved
Unreserved
Unreserved, reported in:

Debt Service funds
Special revenue funds
Capital project funds
Undesignated funds
Nonspendable
$68 $2,239,029 $234,029 $293
Restricted 48,807,530 $22,811,952 19,827,871 33,488,600 68,772,861 $76,555,491 $76,190,135 $84,761,983 $94,077,986 $117,664,651 Assigned 7,460,751 2,646,543 7,670,060 68,374,788 58,691,704 33,810,387 26,111,962 27,536,543 14,454,839 Unassigned 77,273 (724,802) (2,508,938) (1,644,451) (5,969,846) (9,212,995) Total all other governmental funds $56,345,622 $24,733,693 $29,736,960 $31,213,691 $137,147,942 $135,247,195 $108,356,071 $104,904,099 $112,401,534 $132,119,490 * General Fund includes balances related to the City's Measure C District Sales Tax (a) The change in total fund balance for the General Fund and All Other Governmental Funds is explained in Management's Discussi on and Analysis.

The detail of Reserved and Designated Fund balance is explained in Note 9 of the financial statement footnotes. (b) Starting Fiscal Year ending June 30, 2011, the City's fund balances are classified in accordance with GASB54 which requires the City to classify its fund balances based on spending constraints imposed on the use of resources. For programs with multiple funding sources, the City prioritizes and expends funds in the following order: Restricted, Committed, Assigned and Unassigned.

Source: City of Hayward Annual Comprehensive Financial Report (ACFR)

CITY OF HAYWARD
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
2012 2013 2014 2015 2016* 2017* 2018* 2019* 2020* 2021* Thousands
Reserved
Unreserved Nonspendable Restricted Assigned UnassignedGeneral Fund only 170
This Page Left Intentionally Blank

CITY OF HAYWARD
Changes in Fund Balance of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Fiscal Years Ended June 30,
2012 2013 2014 2015
Revenues
Property Taxes $35,715,527 $39,180,750 $38,971,067 $42,128,306 Property Tax Increment 4,721,491
Sales Taxes 26,346,354 29,197,989 31,019,079 39,148,631 Utility Users Taxes 14,796,979 14,939,639 15,761,544 15,680,721 Other Taxes 20,748,138 20,630,166 21,310,770 23,424,572 Licenses and permits 3,177,816 3,605,753 4,078,392 5,031,300 Fines and forfeitures 2,951,068 2,938,106 2,285,486 2,549,034 Special Assessments 817,210 891,037 972,339 980,329
Use of money and property 1,098,574 756,670 635,092 357,388 Intergovernmental revenues 55,173,561 28,617,999 33,839,482 22,647,381 Fees and charges for services 8,851,474 8,377,718 8,172,604 7,639,834 Reimbursement from Developer 344,375 109,677 252,910
Gain on Sale
Othe
r 6,565,952 1,934,141 2,402,380 5,002,806
Total Revenues 181,308,519 151,179,645 159,701,145 164,590,302 Expenditures
Current:

General government 8,034,218 9,841,308 10,551,378 13,702,855 Public safety 90,190,936 90,696,723 91,851,849 96,719,824 Public works and transportation 10,994,660 10,498,047 3,764,567 6,623,943 Librar
y and community services 6,926,851 6,531,206 7,004,537 6,748,325 Economic development 4,396,669 1,847,619 2,017,787 763,285 Planning and building 5,346,481 5,806,741 5,981,108 6,495,171 Maintenance services 3,827,181 3,685,853 4,591,395 5,581,077 Nondepartmental
Capital outlay 30,601,040 36,797,417 22,587,661 30,819,943 Debt service:

Principal 1,751,366 1,854,870 2,216,033 2,156,489
Interest and fiscal char
ges 3,355,010 2,040,992 1,093,538 1,158,708
Bond issuance cost
Pass-throu
gh payments 1,546
Total Expenditures 165,425,958 169,600,776 151,659,853 170,769,620 Excess (deficiency) of revenues over
(under) expenditures 15,882,561 (18,421,131) 8,041,292 (6,179,318) Other Financing Sources (Uses)
Transfer of land held for resale to cap assets
Proceeds from sale of capital asset
Proceeds of refunding bonds (refer to ACFR Footnote 6)
Premium on refunding bonds issued (refer to ACFR Footnote 6) Payment to refunded bond escrow agent (refer to ACFR Footnote 6) Proceeds of repayment agreement
Proceeds from long term debt (refer to ACFR Footnote 6) 2,488,880 5,500,000 Contributions from assessment district
Gain on land held for resale
Transfers in (refer to ACFR Footnote 4) 14,518,727 11,304,955 16,346,295 9,012,179 Transfers out (refer to ACFR Footnote 4) (15,548,463) (12,689,762) (22,375,934) (12,188,316) Total other financing sources (uses) (1,029,736) (1,384,807) (3,540,759) 2,323,863 Extraordinary Item (Refer to ACFR Footnote 19) (8,009,396) Net Change in fund balances $6,843,429 ($19,805,938) $4,500,533 ($3,855,455) Debt service as a percentage of
noncapital expenditures 3.9% 3.0% 2.6% 2.4%
Source: City of Hayward Annual Comprehensive Financial Report (ACFR) 172
Fiscal Years Ended June 30,
2016
2017 2018 2019 2020 2021
$44,159,430 $47,195,566 $51,235,946 $54,467,978 $58,431,804 $61,196,409 46,495,377 48,848,674 48,550,524 52,917,415 56,566,457 58,652,032 22,040,616 20,753,813 17,487,828 16,935,327 16,065,943 17,267,592 26,554,046 27,518,428 28,116,819 32,658,149 31,774,255 36,672,642 6,316,823 7,766,510 7,091,074 7,814,026 6,435,587 5,439,030 2,341,565 2,499,964 2,487,183 2,670,298 2,210,385 2,194,569 1,166,399 1,026,071 1,003,388 1,059,378 1,297,894 1,408,903 561,895 1,746,291 1,644,775 3,473,471 3,901,043 1,729,716 37,101,458 28,403,369 23,151,743 28,991,082 28,937,153 38,526,058 9,885,890 5,889,181 7,360,450 7,373,160 5,585,549 9,712,963 10,982,198
7,909,582 11,082,590 6,084,935 10,689,323 18,289,406 24,378,704 204,533,081 202,730,457 194,214,665 230,031,805 229,495,476 257,178,618 12,675,974 13,182,512 14,309,144 15,335,579 14,607,161 13,971,584 105,164,624 110,461,347 110,621,648 118,169,989 123,148,622 129,477,772 3,850,989 4,001,258 3,772,501 8,850,429 6,849,771 8,198,266 8,371,078 6,678,908 7,638,673 7,722,543 8,707,212 9,123,989 1,984,194 56,797 81,274 1,512,567 1,576,741 2,350,344
7,382,233 8,497,395 8,372,228 9,229,204 8,618,787 8,712,707 6,279,365 7,711,268 7,720,401 9,973,511 9,840,025 10,752,525 39,864,835 48,972,280 47,870,707 30,812,391 21,303,837 40,657,890 2,397,381 2,561,048 2,676,156 5,013,353 5,207,513 5,416,028 1,055,901 3,303,835 3,321,225 3,190,198 3,007,504 2,795,772 1,054,619 2,972
190,081,193 205,429,620 206,383,957 209,809,764 202,867,173 231,456,877 14,451,888 (2,699,163) (12,169,292) 20,222,041 26,628,303 25,721,741 87,348,775
6,565,740
(20,455,936)
3,390,000
25,098,265 40,553,431 13,461,040 40,742,247 15,104,770 12,292,089 (27,899,357) (44,118,007) (17,962,337) (48,967,406) (18,967,012) (17,809,505) 70,657,487 (3,564,576) (4,501,297) (8,225,159) (3,862,242) (2,127,416) $85,109,375 ($6,263,739) ($16,670,589) $11,996,882 $22,766,061 $23,594,325

2.4% 3.8% 3.8% 4.6% 4.9% 3.9%
173
Millions
Total
Fiscal Total Secured Total Unsecured Total Estimated Direct Year Property Property Assessed ( c ) Full Market ( a ) Tax Rate ( b ) 2012 $14,031,375,627 $1,119,664,498 $15,151,040,125 $15,151,040,125 1% 2013 14,269,516,867 1,219,715,968 15,489,232,835 15,489,232,835 1% 2014 15,692,946,952 1,249,273,320 16,942,220,272 16,942,220,272 1% 2015 16,639,488,990 1,340,155,668 17,979,644,658 17,979,644,658 1% 2016 17,432,403,170 1,452,793,040 18,885,196,210 18,885,196,210 1% 2017 18,505,587,803 1,439,106,697 19,944,694,500 19,944,694,500 1% 2018 19,779,304,369 1,454,651,151 21,233,955,520 21,233,955,520 1% 2019 21,249,763,958 1,469,205,980 22,718,969,938 22,718,969,938 1% 2020 22,702,279,301 1,570,761,064 24,273,040,365 24,273,040,365 1% 2021 24,086,121,795 1,669,659,173 25,755,780,968 25,755,780,968 1% NOTE:
( a ) The State Constitution requires property to be assessed at one hundred percent of the most recent purchase price, plus an increment of no more than two percent annually, plus any local over-rides. These values are considered to be full market values. ( b ) California cities do not set their own direct tax rate. The state constitution establishes the rate at 1% and allocates a portion of that amount, by an annual calculation, to all the taxing entities within a tax rate area. ( c ) Total assessed represents gross amount of the total assessed valuation of the taxable property.

Source: Alameda County Auditor Controller Office Certificate of Assessed Valuations

CITY OF HAYWARD

ASSESSED AND ESTIMATED ACTUAL

VALUE OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Series1 Series2
174
Hayward Chabot-Las Positas
Fiscal Alameda County City of Alameda County Unified Community College Bay Area Rapid Hayward Area East Bay Year Wide Levy Hayward Go Bond School District District Transit (BART) Rec & Park Regional Park 2012 1.0000 0.0018 0.0000 0.0557 0.0214 0.0041 0.0071
2013 1.0000 0.0018 0.0000 0.0553 0.0219 0.0043 0.0051
2014 1.0000 0.0018 0.0000 0.0486 0.0214 0.0075 0.0078
2015 1.0000 0.0018 0.0000 0.0527 0.0217 0.0045 0.0085
2016 1.0000 0.0018 0.0000 0.0970 0.0198 0.0026 0.0067
2017 1.0000 0.0018 0.0000 0.0974 0.0246 0.0080 0.0032
2018 1.0000 0.0018 0.0000 0.0881 0.0445 0.0084 0.0299 0.0021 2019 1.0000 0.0018 0.0112 0.0806 0.0443 0.0070 0.0300 0.0057 2020 1.0000 0.0018 0.0108 0.1350 0.0422 0.0120 0.0300 0.0060 2021 1.0000 0.0018 0.0036 0.1310 0.0214 0.0139 0.0299 0.0014

CITY OF HAYWARD

PROPERTY TAX RATES

ALL OVERLAPPING GOVERNMENTS

LAST TEN FISCAL YEARS

0.00 0.20

0.40 0.60

0.80 1.00

1.20 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Percent
Chabot-Las Positas Community College District School District Alameda County Wide Levy 175
Percentage Percentage
of Total City
of Total City
PSB Northern Calif Industrial Portfolio LLC Taxable Taxable Taxable Taxable Assessed Assessed Assessed
Assessed
Employer
Value Rank Value Value Rank Value
Russell City Energy Company, LLC $381,400,000 1 0.014808326 Southland Mall LP 248,416,869 2 0.009645092 $144,259,914 2 0.90% PSB Northern Calif Industrial Portfolio LLC 221,231,674 3 0.008589593 178,598,888 1 1.20% Hayward 544 LLC 171,783,871 4 0.006669721
ROC III CA Creekwood LLC 103,546,119 5 0.004020306 Hayward Point Eden I LP 111,404,187 6 0.004325405 93,219,755 4 0.60% Hayward Industrial Park Associates 103,825,577 7 0.004031156 88,631,990 5 0.60% Rar2 Hayward 92 LLC 97,277,400 8 0.003776915
SCI Limited Partnership I 81,935,670 10 0.003181254 75,049,733 8 0.50% Bottling Group LLC 90,184,290 9 0.003501516 81,897,810 6 0.50% Berkeley Farm Inc. 98,670,850 3 0.60%
Target Corporation 55,445,242 10 0.40%
Impax Laboratories Inc. 77,151,116 7 0.50%
Essex Wimbledon Woods Apartments, LLC 56,818,960 9 0.40% Subtotal $1,611,005,657 6.25% $949,744,258 6.13%
Total Assessed Valuation:

Fiscal Year 2020/2021 $25,755,780,968
Fiscal Year 2011/2012 15,489,232,835
Source: Alameda County Assessor Fiscal Year Combined Tax Rolls City of Hayward
Principal Property Tax Payers
Current Year and Ten Years Ago
FY 2021 FY 2012
176

CITY OF HAYWARD

PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN FISCAL YEARS
#
#
#
Percent of
Current Percent Delinquent Total Total Tax
Fiscal Total Tax of Levy Tax Tax Collections
Year Tax Levy Collections Collected Collections Collections to Tax Levy 2012 $22,905,414 $21,746,406 94.94% $952,781 $22,699,187 99.10% 2013 23,375,741 22,340,018 95.57% 748,912 23,088,930 98.77% 2014 25,027,044 24,356,397 97.32% 399,535 24,755,932 98.92% 2015 26,474,019 25,522,217 96.40% 382,845 25,905,062 97.85% 2016 27,915,350 26,854,859 96.20% 446,987 27,301,846 97.80% 2017 29,275,215 28,172,161 96.23% 448,808 28,620,970 97.77% 2018 31,255,890 30,158,955 96.49% 410,565 30,569,520 97.80% 2019 33,360,474 32,234,964 96.63% 403,490 32,638,455 97.84% 2020 36,054,277 34,833,923 96.62% 505,412 35,339,334 98.02% 2021 38,025,883 36,767,160 96.69% 537,243 37,304,403 98.10% Source: Alameda County Assessor Office
$10.0
$12.5
$15.0
$17.5
$20.0
$22.5
$25.0
$27.5
$30.0
$32.5
$35.0
$37.5
$40.0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Millions
Total Tax Levy Total Tax Collections
Source: Alameda County Assessor Office
177

CITY OF HAYWARD

RATIO OF OUTSTANDING DEBT BY TYPE

LAST TEN FISCAL YEARS
Governmental Activities
Tax Certificates Capital
Fiscal Allocation of Revenue
Lease
Year Bonds Participation Bonds Obligations Total
2012 0 (a) $26,095,000 $740,240 $6,846,579 $33,681,819
2013 0 (a) 24,525,000 575,000 5,943,842 31,043,842
2014 0 (a) 22,895,000 3,003,880 5,699,806 31,598,686
2015 0 (a) 21,195,000 2,695,717 11,279,313 35,170,031
2016 0 (a) 87,348,775 2,371,338 10,787,079 100,507,193
2017 0 (a) 91,613,001 2,044,350 9,050,057 102,707,408
2018 0 (a) 89,212,869 1,709,786 7,661,734 98,584,389
2019 0 (a) 84,487,311 1,372,620 6,444,597 92,304,528
2020 0 (a) 79,584,001 1,028,478 5,001,566 85,614,045
2021 0 (a) 74,484,994 681,218 4,225,876 79,392,088
Business-Type Activities
Water Sewer
Fiscal Revenue Revenue Total Government Debt
Year Bonds Bonds Total Government Per Capita (b)
2012 $9,277,380 $54,047,154 $63,324,534 $97,006,353 659.40 2013 8,225,000 50,073,263 58,298,263 89,342,105 600.59 2014 6,570,000 46,137,248 52,707,248 84,305,934 558.18 2015 6,055,000 42,151,592 48,206,592 83,376,623 545.34 2016 5,525,000 38,116,304 43,641,304 144,148,497 906.68 2017 4,980,000 34,755,949 39,735,949 142,443,357 884.52 2018 4,420,000 31,370,520 35,790,520 134,374,909 829.32 2019 3,840,000 43,337,073 47,177,073 139,481,601 874.86 2020 3,245,000 38,786,145 42,031,145 127,645,190 796.23 2021 2,630,000 40,524,958 43,154,958 122,547,046 775.18 Note : Debt amounts exclude any premiums, discounts, or other amortization amounts. (a) Tax Allocation Bonds are reported under Rede
velopment Successor Agency as Fiduciary Fund as Redevelopment Agency was dissolved on January 31, 2012 as per ABx1 26 and AB1484. (b) Per Capita based on City population; refer to Demographic and Statistics Schedule for population data.

Source: City of Hayward
State of California, Department of Finance (population) U.S. Dept of Commerce, Bureau of the Census (income)
$0
$20
$40
$60
$80
$100
$120
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Millions
Total Governmental Activities Total Business-Type Activities 178
2020-21 Assessed Valuation: 25,261,794,831$
Redevelopment Incremental Valuation: (2,830,969,730)
Adjusted Assessed Valuation: 22,430,825,101 $
Total Debt City's Share of Debt
6/30/2021 % Applicable (1) 6/30/2021
DIRECT DEBT:

City of Hayward General Fund Obligations 79,392,088$ 100.000% 79,392,088$ 79,392,088$
Total Direct Debt 79,392,088$
OVERLAPPING DEBT:

Overlapping Tax and Assessment Debt:

Alameda County 191,300,000$ 7.62% 14,578,973 $ Bay Area Rapid Transit District 1,871,890,000 3% 55,202,036 Chabot-Las Positas Community College District 593,290,000 18% 106,667,609 Castro Valley Unified School District 149,865,000 0% 169,347 Hayward Unified School District 706,695,575 86% 609,263,456 New Haven Unified School District 242,539,413 14% 34,498,806 Pleasanton Unified School District 135,065,000 0% 47,273 San Lorenzo Unified School District 188,970,000 16% 29,305,468 Washington Township Healthcare District 326,370,000 2% 6,135,756 Hayward Area Recreation and Park District 102,480,000 56% 57,103,906 East Bay Regional Park District 133,170,000 5% 6,284,292 City of Hayward Community Facilities District No. 1 4,925,776 100% 4,925,776 City of Hayward 1915 Act Bonds 105,000 100% 105,000
Subtotal Overlapping Tax and Assessment Debt 924,287,698$ Ratios to 2019-20 Assessed Valuation:

Subtotal Overlapping Tax and Assessment Debt 4.12%
OVERLAPPING GENERAL FUND DEBT:

Alameda County General Fund Obligations 790,122,500$ 7.621% 60,215,236$ Alameda-Contra Costa Transit District Certificates of Participation 11,655,000 9.025% 1,051,864 Hayward Unified School District Certificates of Participation 13,677,255 86.213% 11,791,572 San Lorenzo Unified School District Certificates of Participation 9,060,000 15.508% 1,405,025 4,500,000 0.113% 5,085
Subtotal Overlapping General Fund Debt 74,468,781$
OVERLAPPING TAX INCREMENT DEBT(Successor Agencies): 49,580,000$ 7.4611 & 100. % 27,879,605 $ 27,879,605$
Total Overlapping Debt 1,026,636,084$
Grand Total Direct and Overlapping Debt 1,106,028,172$ (2) Combined Total Direct and Overlapping Debt 1,106,028,172$ (2) Ratio to 2020-21 Assessed Valuation:

Combined Total Direct and Overlapping Tax and Assessment Debt 4.93% NOTE:
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicabl e percentages were estimated
by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divid ed by the district's total taxable
assessed value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligatio ns. Qualified Zone Academy
Bonds are included based on principal due at maturity.

Source: California Municipal Statistics, Inc.

CITY OF HAYWARD

COMPUTATION OF DIRECT AND OVERLAPPING DEBT
Castro Valley and Pleasanton Unified School District Certificates of Participation 179

CITY OF HAYWARD

COMPUTATION OF LEGAL BONDED DEBT MARGIN
Last Ten Fiscal Years
ASSESSED VALUATION:

Secured property assessed value, net of
exempt real property $25,755,780,968
BONDED DEBT LIMIT (15.% OF ASSESSED VALUE) $3,863,367,145 AMOUNT OF DEBT SUBJECT TO LIMIT:

Total Bonded Debt $79,392,088
Less Tax Allocation Bonds and Sales Tax Revenue
Bonds, Certificate of Participation not subject to limit 79,392,088 Amount of debt subject to limit 0
LEGAL BONDED DEBT MARGIN $3,863,367,145
Total net debt
Total Net Debt Legal applicable to the limit
Fiscal Debt Applicable to Debt as a percentage
Year Limit Limit Margin of debt limit
2012 $2,323,384,925 0 $2,323,384,925 0.00%
2013 2,541,333,041 0 2,541,333,041 0.00%
2014 2,541,333,041 0 2,541,333,041 0.00%
2015 2,696,946,699 0 2,696,946,699 0.00%
2016 2,832,779,432 0 2,832,779,432 0.00%
2017 2,991,704,175 0 2,991,704,175 0.00%
2018 3,185,093,328 0 3,185,093,328 0.00%
2019 3,407,845,491 0 3,407,845,491 0.00%
2020 3,640,956,055 0 3,640,956,055 0.00%
2021 3,863,367,145 0 3,863,367,145 0.00%
Source: County of Alameda Auditors Office
180
Debt Service Requirements
Net Revenue
Fiscal Gross Operating Available for
Year Revenue (1) Expenses (2) Debt Service Principal Interest Total Ratio Coverage 2012 $61,287,200 $45,366,632 $15,920, 568 $1,425,000 $577,688 $2,002,688 7.95 2013 65,512,421 49,506,563 16,005,858 1,490,000 527,831 2,017,831 7.93 2014 73,136,288 47,380,860 25,755,428 2,160,000 459,280 2,619,280 9.83 2015 73,564,675 49,566,818 23,997,857 1,615,000 302,938 1,917,938 12.51 2016 80,748,945 52,915,644 27,833,301 1,555,498 205,533 1,761,031 15.81 2017 82,325,821 60,602,745 21,723,076 886,781 151,341 1,038,122 20.93 2018 86,614,724 63,289,309 23,325,415 919,040 121,929 1,040,969 22.41 2019 102,636,863 60,860,754 41,776,109 450,133 90,738 540,871 77.24 2020 96,734,751 60,046,086 36,688,665 462,357 78,514 540,871 67.83 2021 93,001,615 62,364,681 30,636,934 479,467 66,069 545,536 56.16 Notes: (1) Includes all Wastewater Operating Revenues, Non-operating Interest Revenue, Connection Fees and other Non-operating Revenue (2) Includes all Wastewater Operating Expenses less Depreciation and Interest

CITY OF HAYWARD

REVENUE BOND COVERAGE

WASTEWATER REVENUE BONDS

LAST TEN FISCAL YEARS
0 10
20 30
40 50
60 70
80 90
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Ratio Coverage
Source: City of Hayward Annual Financial Statement
181

CITY OF HAYWARD

BONDED DEBT PLEDGED REVENUE COVERAGE

TAX ALLOCATION BONDS

LAST TEN FISCAL YEARS
Tax Debt Service Requirements
Fiscal Increment
Year Revenue Principal Interest Total Coverage
2012 $7,465,404 $1,540,000 $2,469,022 $4,009,022 1.86
2013 4,934,694 1,605,000 2,400,322 4,005,322 1.23
2014 4,317,292 1,680,000 2,328,657 4,008,657 1.08
2015 5,365,287 1,750,000 2,253,588 4,003,588 1.34
2016 6,427,560 1,835,000 2,173,931 4,008,931 1.60
2017 5,089,716 2,035,000 347,642 2,382,642 2.14
2018 3,163,863 1,685,000 1,550,975 3,235,975 0.98
2019 4,109,694 1,735,000 1,487,550 3,222,550 1.28
2020 3,791,673 1,805,000 1,417,450 3,222,450 1.18
2021 4,020,771 1,880,000 1,344,550 3,224,550 1.25
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
$11,000
$12,000
$13,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Thousands
Tax Increment Revenue Debt Service Payment
Source: City of Hayward Annual Financial Statements
182

CITY OF HAYWARD

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN FISCAL YEARS
City City
Fiscal City Per Capita Unemployment Alameda Co. Population Year Population Income Rate Population % of County
2012 147,113 22,681 10.3% 1,529,875 9.62%
2013 148,756 25,019 10.3% 1,548,681 9.61%
2014 151,037 25,208 10.3% 1,573,254 9.60%
2015 152,889 25,770 13.2% 1,594,569 9.59%
2016 158,985 26,405 13.2% 1,627,865 9.77%
2017 161,040 27,774 13.3% 1,645,359 9.79%
2018 162,030 32,021 3.1% 1,660,202 9.76%
2019 159,433 29,583 2.8% 1,669,301 9.55%
2020 160,311 37,243 11.0% 1,670,834 9.59%
2021 158,089 7.6% 1,656,591 9.54%
Note: FY21 data not available for Per Capita Income
Sources: U.S. Census Bureau
State of California - Department of Finance, Office of The Director State of California - Employment Development Department, Labor Market Information Division 0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
11%
12%
13%
14%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Unemployment Rate (%)
8%
9%
10%
11%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
City Population as a % of County Population

1.4 1.5

1.6 1.7
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Alameda Co. Population
$5
$10
$15
$20
$25
$30
$35
$40
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Thousands
Per Capita Income
183
FY 2021
Number Percentage
of
of Total City
Employer Employees Rank Employment
Alameda County Sheriff's Department * 1,114 4 0.8%
Baxter Bio Pharma *
Berkeley Farms, LLC *
California State University East Bay * 1,880 2 1.3%
Chabot Community College* 494 8 0.3%
Fremont Bank Operations Center *
Ha
yward Unified School District * 2,200 1 1.5%
Illumina *
Impax Laboratories, Inc. *
Pentagon Technologies *
Plastikon Industries, Inc. * 400 10 0.3%
Siemens Building Tech *
St. Rose Hospital * 842 5 0.6%
Gillig Corporation 700 7 0.5%
Kaiser Permanente Medical Center ** 1,200 3 0.8%
City of Hayward 786 6 0.5%
Kobe Precision 450 9 0.3%
Subtotal 10,066 6.8%
Total City Population Using Census Data 147,113
Source: City of Hayward Adopted Operating Budget FY21
Note: FY21 data not available for ranking or total employment. * Presented in alphabetical order based on economic development's assessment. ** Closed in November 2013
City of Hayward
Principal Employers
Current Year and Ten Years Ago
FY 2012
184
Fiscal Years Ended June 30,
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Function
General government 142.00 146.90 156.00 165.00 175.00 168.50 168.50 181.50 188.25 186.25 Public safety 436.50 436.50 437.50 439. 50 457.00 459.00 460.00 469.00 473.00 473.00 Public works 27.00 26.10 25.00 26.00 20.50 19.56 20.71 20.56 24.00 24.45 Library and community services 39.10 38. 55 38.55 40.20 42.20 42.80 44.80 35.80 36.80 36.80 Development services 33.25 30.00 32. 00 36.00 39.00 50.00 50.00 49.50 50.00 50.00 Water 56.00 58.40 58.50 58.50 57. 30 60.61 60.46 61.41 61.26 60.71 Wastewater 49.50 51.00 53.00 56.00 70.40 71.58 73.58 73.78 73.24 73.34 Solid Waste 3.00 3.00 3.00 3.00 2.80 2.75 2.75 2.75 2.75 2.75 Total 786.35 790.45 803.55 824.20 864. 20 874.80 880.80 894.30 909.30 907.30 Source: City of Hayward Adopted Operating Budget
*Due to City of Hayward department reorganization, Community Development and Culture and Leisure departments no longer exist.

CITY OF HAYWARD
Full-Time Equivalent City Government Employees by Function Last Ten Fiscal Years
0 100
200
300
400
500
600
700
800
900
1,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General government Public safety Public works
Library and community services Development services Water Wastewater Solid Waste
185

CITY OF HAYWARD
Operating Indicators by Function/Program
Last Four Fiscal Years
2018 2019 2020 2021
Function/Program
Public safety:

Fire alarms 18,898 18,823 18,860 18,414
Police: (Uniform Crime Reporting Statistics)
Property crime calls 4,967 4,749 5,462 4,682
Violent crime calls (a) 633 604 568 520
Arson calls 33 28 20 19
Public works
Pavement Condition Index (PCI)* 69 70 69 70
*Industry measure of street condition with 100 ideal score Annual pavement improvement projects 13 10 10 10
Airport operations count/flights 112,962 106,447 90,048 126,219 Airport reported based aircraft 470 461 461 461
Library and Community Services
Social Services Projects Funded 20 18 18 26
Facilities Projects Funded 221 1
Economic Development Projects Funded 232 6
New Housing/Rehab Projects Funded 1822 2
Public Services Projects Funded 555 18
Measure B Projects Funded 788 4
Measure BB Projects Funded 100 1
Planning
Active Subdivisions 45 41 40 48
Active Parcel Maps 7 7 11 12
Building Permits 4,934 5,107 4,501 4,291
Residential Rental Inspections 1,039 977 943 334
Library and neighborhood services
Library Materials in Collection 166,100 164,396 204,416 154,535 Library Circulation (Items checked out) 654,989 159,806 395,758 144,108 Community Preservation Cases 2,771 2,917 2,522 2,518
Water
Water service connections 36,327 37,526 38,236 38,532
Water main breaks 14 21 17 19
Average daily consumption (thousands of gallons) 14,458 14,046 13,962 14,405,184 Wastewater
Sewer service connections 34,320 34,728 35,256 35,256
Average daily treatment (thousands of gallons) 11,480 11,574 10,717 10,355 Solid Waste
Landfilled waste recycled and diversion rate* 70%-75% 66% 66% 73% *Diversion rate beginning in calendar year 2000 and each year thereafter.
(a) Excluded Simple assault calls, restated prior years.

Source: City of Hayward
186
This Page Left Intentionally Blank

2012 2013 2014 2015 2016
Function/Program
Public safety:

Fire stations (a) 99999
Number of firefighters and officers (b) 118 115 127 118 118 Police stations 11111
Number of police officers (c) 197 189 199 177 186
Public works
Miles of streets 266 266 266 266 283
Street lights 8,143 8,143 8,161 8,178 8,273
Traffic Signals 134 135 135 134 134
Airport 11111
Library and neighborhood services
City Libraries 22222
Water
Number of consumers 140,000 140,000 150,000 150,000 150,000 Average daily consumption (gallons) 15,600,000 15,500,000 15,200,000 13,600,000 12,255,000 Miles of water mains 350 370 380 385 385
Storage capacity (gallons) 29,350,000 29,350,000 29,350,000 29,350,000 29,350,000 Wastewater
Miles of sewers 320 320 325 325 325
Number of treatment plants 11111
Treatment capacity (gallons) 18,500,000 18,500,000 18,500,000 18,500,000 18,500,000 (a) Includes Fairview Fire District Station under contract (b) Represents actual hired firefighters and officers which may be different than budgeted number of positions (c)
Represents actual hired police officers which may be different than budgeted number of positions Sources: City of Hayward

CITY OF HAYWARD
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
188
2017 2018 2019 2020 2021
9999 9
114 129 124 122 121
1111 1
194 176 178 181 169
283 283 283 283 283
8,288 8,238 8,327 8,327 8,327
136 143 146 146 146
1111 1
2222 2
155,000 160,500 159,500 159,203 162,954
12,870,000 14,650,000 14,046,000 13,962,000 14,405,184
385 385 391 391 391
30,550,000 30,550,000 25,350,000 31,250,000 25,000,000
325 325 321 321 321
1111 1
18,500,000 18,500,000 18,400,000 18,500,000 18,500,000
Fiscal Year Ended June 30,
189
This Page Left Intentionally Blank

Finance Department, 777 B Street, Hayward CA 94541
www.Hayward-CA.gov

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: CONS 22-081
DATE: February 1, 2022
TO: Mayor and City Council
FROM: Director of Public Works

SUBJECT
Adopt a Resolution Approving Garbage and Recycling Rates for FY2022-2023

RECOMMENDATION
That Council adopts a resolution (Attachment II) approving the recommended garbage and recycling annual rate increase of 2.85% for all residential and commercial accounts effective March 1, 2022.

SUMMARY
Refuse rates typically increase on March 1 of each year, in accordance with the Franchise Agreement between the City and Waste Management of Alameda County (WMAC) that became effective on March 1, 2015. Rate Year Eight (RY8) of the Franchise Agreement will commence on March 1, 2022. Per the Franchise Agreement, the rates for RY8 shall be set based on a Consumer Price Index (CPI) adjustment to WMAC’s current revenues. The calculated RY8 increase is 2.85%. The City continues to negotiate with WMAC for a new Franchise Agreement that Council could approve later this year. If approved, the new Agreement may include an additional rate adjustment that would take effect in 2022.

ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
Attachment III Comparison of Monthly Garbage & Recycling Rates CITY OF HAYWARD Printed on 1/27/2022Page 1 of 1
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Hayward City CouncilFebruary 1, 2022

Hayward City Council
February 1, 2022