Council Packet — Hayward City Council, April 11, 2023 (part 1 of 3)

Tuesday, April 11, 2023
7:00 PM

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

April 11, 2023City Council Agenda

SPECIAL CITY COUNCIL MEETING
NOTICE: The City Council will hold a hybrid meeting in Council Chambers and virtually via Zoom.

PUBLIC PARTICIPATION
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:

Participate in the Council Chambers or click link below to join the meeting:
https://hayward.zoom.us/j/88379569567?pwd=OVlrMHdlTTZ1NVZhNmhVN1dkOWg0QT09 Meeting ID: 883 7956 9567
Password: CC4/11@7pm
or
Dial: +1 669 900 6833 or +1 646 931 3860
Meeting ID: 883 7956 9567
Password: 6787505183

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April 11, 2023City Council Agenda
CALL TO ORDER: Mayor Salinas
Pledge of Allegiance: Council Member Zermeño
AB 2449 TELECONFERENCE NOTIFICATIONS AND CONSIDERATION
Remote Participation Based on AB 2449 Just CauseRPT 23-042

ROLL CALL

PRESENTATION
National Crime Victims’ Rights Week Proclamation

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 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, items 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 March 21, 2023
MIN 23-0421.

Attachments: Attachment I Draft Minutes of 3/21/2023
Approve the City Council Minutes of the City Council Meeting on March 28, 2023
MIN 23-0432.

Attachments: Attachment I Draft Minutes of 3/28/2023

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April 11, 2023City Council Agenda
Adopt an Ordinance Amending Chapter 10, Article 17 of the Hayward Municipal Code Regarding Affordable Housing
Requirements for New Housing Developments
CONS 23-1863.

Attachments: Attachment I Staff Report
Attachment II Summary of Ordinance Published
Adopt a Resolution Opposing Initiative 21-0042A1 on the November 2024 General Election Ballot, Entitled the “Taxpayer Protection and Government Accountability Act” and
Authorizing the Mayor to Sign a Letter of Opposition to the Ballot Measure
CONS 23-1674.

Attachments: Attachment I Staff Report
Attachment II Resolution
Attachment III Proposed Letter of Opposition
Attachment IV 21-0042A1 Measure Text
Adopt a Resolution Approving Plans and Specifications and Calling for Bids for Traffic Signal Modification on Jackson Street as Part of the Route 238 Corridor Improvement Phase 2 Project No. 05270
CONS 23-1825.

Attachments: Attachment I Staff Report
Attachment II Resolution
Attachment III Location Map
Adopt a Resolution Approving the FY 2024 Measure B/BB
Annual Paratransit Program Plan and Authorizing the City Manager to Execute FY 2024 Service Agreements for the
Continued Provision of Measure B/BB Funded Paratransit
Services
CONS 23-1846.

Attachments: Attachment I Staff Report
Attachment II Resolution
Attachment III Funding Recommendations
Attachment IV Paratransit Program Plan Application

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April 11, 2023City Council Agenda
Adopt a Resolution Authorizing the City Manager to Execute the Cooperation Agreement for Fiscal Years 2024-2026
between the City of Hayward and the County of Alameda to Participate in the Alameda County HOME Consortium
CONS 23-1857.

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, 2022, and of the Memorandum on Internal Control and
Required Communications
CONS 23-1988.

Attachments: Attachment I Staff Report
Attachment II Resolution
Attachment III FY 2022 Comprehensive Financial Report
Adopt a Resolution Authorizing the City Manager to
Appropriate $88,598.89 from the Measure C Operating Fund (Fund 101) for the Purchase of (1) EagleAir® Model
RVA15M3D4U RavenCFS Breathing Air Compressor System
CONS 23-2009.

Attachments: Attachment I Staff Report
Attachment II Resolution
Adopt a Resolution Authorizing the City Manager to
Appropriate $640,894 from the Measure C Operating Fund
(Fund 101) for the Purchase of Motorola Dispatch Console Equipment and Service Plans and to Execute an Agreement with Motorola for Purchase of those Products
CONS 23-20110.

Attachments: Attachment I Staff Report
Attachment II Resolution

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April 11, 2023City Council Agenda

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.

Community Agency Funding: Fiscal Year 2024 Community
Agency Funding Recommendations for Services, Arts & Music, Special Events, and Economic Development and Infrastructure and Overview of the FY 2024 Annual Action Plan (Report from Assistant City Manager Youngblood)
WS 23-01111.

Attachments: Attachment I Staff Report
Attachment II Funding Recommendations

LEGISLATIVE BUSINESS
Council Vacancy and Appointment: Adopt a Resolution
Appointing a Candidate to Fill a Two-Year Term City Council Vacancy or Consider Alternative Options for Filling the Vacancy (Report from City Manager McAdoo, City Attorney Lawson, and City Clerk Lens)
LB 23-01512.

Attachments: Attachment I Staff Report
Attachment II Resolution
Stormwater Management and Urban Runoff Control Ordinance:

Adopt a Resolution and Introduce Stormwater Ordinance
Amendments Related to Municipal Regional (Stormwater)
Permit-MRP 3.0 and Finding the Action is Exempt from CEQA Review (Report from Public Works Director Ameri)
LB 23-01413.

Attachments: Attachment I Staff Report
Attachment II Resolution
Attachment III Stormwater Ordinance
Attachment III-a Ordinance Text

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April 11, 2023City Council Agenda

PUBLIC HEARING
Valley Street East of 4th Street to C Street: Adopt a Resolution Vacating Right-of-Way of Valley Street East of 4th Street to C Street Pursuant to the Provisions of California Streets and Highways Code Sections 8320 et. seq. (Report from Public Works Director Ameri)
PH 23-01714.

Attachments: Attachment I Staff Report
Attachment II Resolution
Attachment III Location Map
Hayward Hangars Airport Hangar Project TEFRA Hearing: Tax and Equity Fiscal Responsibility Act Hearing as Required by the Internal Revenue Code of 1986, and Adoption of a Resolution Approving the Issuance of Revenue Bonds by the Public
Finance Authority in an Amount Not-to-Exceed $5,512,000 to Finance or Refinance the Construction, Furnishing and
Equipping of an Aircraft Storage Hangar Project Located at 20995 Skywest Drive, Hayward, California (Report from
Assistant City Manager Claussen)
PH 23-01915.

Attachments: Attachment I Staff Report
Attachment II Resolution

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, April 18, 2023, 7:00 PM

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April 11, 2023City Council Agenda

PUBLIC COMMENT RULES
Any member of the public desiring to address the Council shall limit their address 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.

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 or [email protected].

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 #: RPT 23-042
DATE: April 11, 2023
TO: Mayor and City Council
FROM: City Clerk

SUBJECT
Remote Participation Based on AB 2449 Just Cause

RECOMMENDATION
Council Member Andrews requested to participate via the Zoom platform under AB 2449 Brown Act teleconferencing “just cause” situation as defined in Government Code section 54953(f)(2)(A)(i) and 54953(j)(2)(A).

ATTACHMENTS
None.

CITY OF HAYWARD Printed on 4/7/2023Page 1 of 1
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CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: MIN 23-042
DATE: March 21, 2023
TO: Mayor and City Council
FROM: City Clerk

SUBJECT
Approve the City Council Minutes of the City Council Meeting on March 21, 2023

RECOMMENDATION
That the Council approves the City Council meeting minutes of March 21, 2023...End

SUMMARY
The City Council held a meeting on March 21, 2023.

ATTACHMENTS
Attachment I Draft Minutes of March 21, 2023
CITY OF HAYWARD Printed on 4/7/2023Page 1 of 1
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CITY COUNCIL MEETING
777 B Street, Hayward, CA 94541
Virtual Platform (Zoom)
https://hayward.zoom.us/j/83584518480?pwd=VUlYZ0dJV1BlcFlQNGhmY0tKL2dVUT09 Tuesday, March 21, 2023, 7:00 p.m.

The City Council meeting was called to order by Mayor Salinas at 7:00 p.m. The City Council held a hybrid meeting in the Council Chambers and virtually via the Zoom platform.

Pledge of Allegiance: Council Member Roche

Present: COUNCIL MEMBERS Andrews, Goldstein, Márquez, Roche, Syrop, Zermeño MAYOR Salinas

Absent: None

PRESENTATION

Mayor Salinas read a proclamation declaring the month of March 2023 as a month celebrating the 21 st Annual Mar ch for Meals Mo nth. The proclamation was presented to Spectr um Community Services Inc., and Service Opportunity for Seniors (SOS) Meals on Wheels. SOS Development Director Dan Ashbrook accepted the proclamation on behalf of SOS Meals on Wheels and Senior Meals Program Manager Becky Bruno accepted the proclamation on behalf of Spectrum Community Services Inc.

PUBLIC COMMENTS

There were none.

CITY MANAGER’S COMMENTS

There were none.

CONSENT

Consent Item No. 3 and Item No. 6 were removed from the Consent Calendar for a separate vote.

1. Approve the City Council Minutes of the City Council Meeting on February 28, 2023 MIN 23-037
It was moved by Council Member Márquez, seconded by Council Member Syrop, and carried unanimously, to approve the minutes of the City Council meeting on February 28, 2023.

2. Approve the City Council Minutes of the City Council Meeting on March 7, 2023 MIN 23- 038
It was moved by Council Member Márquez, seconded by Council Member Syrop, and carried unanimously, to approve the minutes of the City Council Meeting on March 7, 2023.

2 | M a r c h 21 , 2 02 3

3. Adopt an Ord inance Amending Chapter 10, Article 1, Section 10-1.2750 (Alcoholic Beverage Outlets) of the Hayward Municipal Code to U pdate the Regulations Governing Alcoholic Beverage Outlets Throughout the City CONS 23-150

Staff report submitted by City Clerk Lens, dated March 21, 2023, was filed.

City Attorney Lawson requested to remove Item 3 from the Consent Calendar and hold it over to the March 28, 2023, Council meeting. City Attorney Lawson noted the item was considered by Council at its March 7, 2023 meeting and approved unanimously; added that following the meeting a media report characterized Council’s actions as violative of the Brown Act, unduly influenced by special interests, and inconsistent with the Council’s procedural rules; noted the allegations were not supportable; and indicated a memorandum w ould be issued with the March 28, 2023 staff report to confirm on the record that Council’s actions were transparent, consistent with the Brown Act, and in accordance with the procedural framework identified in the Council Member Handbook.

4. Adopt a Resolution Approving an Amendment to the City of Hayward Salary Plan for Fiscal Year 2023 CONS 23-153

Staff report submitted by Human Resources Director Frye, dated March 21, 2023, was filed.

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

AYES: COUNCIL MEMBERS Andrews, Goldstein, Márquez, Roche, Syrop, Zermeño
MAYOR Salinas
NOES: None
ABSENT: None
ABSTAIN: None

Resolution 23-057, “ Resolution Approving the A mended Fiscal Year 2023 Salary Plan Designating Positions of Employment in the City of Hayward and S alary Range; and Superseding
Resolution No. 23-042 and all Amendments Thereto”

5. Adopt a Resolut ion Authori zing the City Manager to Execute an Amendment to t he Agreement with Dutchover & Associates for Landscape Architect Services, Increasing the Not-to-Exceed Amount to $405,000 CONS 23-143

Staff report submitted by Acting Development Services Director Buizer, dated March 21, 2023, was filed.

CITY COUNCIL MEETING
777 B Street, Hayward, CA 94541
Virtual Platform (Zoom)
https://hayward.zoom.us/j/83584518480?pwd=VUlYZ0dJV1BlcFlQNGhmY0tKL2dVUT09 Tuesday, March 21, 2023, 7:00 p.m.

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

AYES: COUNCIL MEMBERS Andrews, Goldstein, Márquez, Roche, Syrop, Zermeño
MAYOR Salinas
NOES: None
ABSENT: None
ABSTAIN: None

Resolution 23-058, “Resolution Authorizing the City Manager to Negotiate and Exe cute an Amendment to the Agreement with Dutchover & Asso ciates, for Landscape Architect Servi ces Increasing the Not to Exceed Amount to $405,000”

6. Adopt a Resolution Authorizing the City Manager to Execute a Professional Services Agreement with the Renaiss ance Entrepreneurship Center and the Pop-Up Guide in the Amount Not-to-Exceed $150,000 for th e Management and Implementation of the Downtown Activation Pilot Program CONS 23-152

Staff report submitted by Chief Economic Development Officer Nguyen and Assistant City Manager Youngblood, dated March 21, 2023, was filed.

Council Member Zermeño expressed support for the proposed downto wn activation pilot program including performers, artists and vendor s scheduled Fridays and Saturdays ; and recommended that Sundays also be conside red as an option after the six -month pilot program. City Manager McAdoo noted staff could consider the suggestion and evaluate the program during the pil ot phase over the first six months and added that a possible expansion of the program could be prese nted to the Council Economic Development Committee.

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

AYES: COUNCIL MEMBERS Andrews, Goldstein, Márquez, Roche, Syrop, Zermeño
MAYOR Salinas
NOES: None
ABSENT: None
ABSTAIN: None

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Resolution 23-065, “Resolution Authorizing the City Manager to Execute the Professional Services Agreement with the
Renaissance Entrepreneurship Center and the Pop-Up Guide for Program Management Services for the Downtown Activation Pilot Program for a Total Not -to-Exceed Amount of $150,000 through December 31, 2023”

7. Adopt a Resolution Authorizing the City Manager to Execute an MOU and Partnership Agreement, and to Accept an d Appropriate up to $101,000 for the Operation of Family Education Program Services for Hayward Unified School District (HUSD) Schools CONS 23-154

Staff report submitted by Library Services Director Addleman, dated March 21, 2023, was filed.

It was moved by Council Member Márquez, seconded by Council Member Syrop, and carried by the following roll call vote, to adopt the resolutions.

AYES: COUNCIL MEMBERS Andrews, Goldstein, Márquez, Roche, Syrop, Zermeño
MAYOR Salinas
NOES: None
ABSENT: None
ABSTAIN: None

Resolution 23-059, “Resolution Authorizing the City Manager to Execute an MOU with Hayward Unifie d School Di strict (HUSD) Allowing the Library to Offer Library Programs and Mobile Outreach Services at Four (4) HUSD Schools During the 2022 - 2023 School Year”

Resolution 23-060, “Resolution Authorizing the City Manager to Execute a Partnership Agreement with the Ce nter for
Community Engagement at the California State University, East Bay (CSUEB), Providing F unding or the Training, Supervision, and Tutor/Mentorship Placements of CSUEB College Corps
Students in the Homework Support Centers at Four (4) HUSD Schools During the 2022-2023 School Year”

Resolution 23-061, “Resolution Authorizing the City Manager to Accept and Appropriate Up to $80,000 from Hayward Unified School District (HUSD) for the Ope ration of Family Education Program Services at Four (4) HUSD Schools in FY 2023”

CITY COUNCIL MEETING
777 B Street, Hayward, CA 94541
Virtual Platform (Zoom)
https://hayward.zoom.us/j/83584518480?pwd=VUlYZ0dJV1BlcFlQNGhmY0tKL2dVUT09 Tuesday, March 21, 2023, 7:00 p.m.

Resolution 23-062, “Resolution Authorizing the City Manager to Accept and Appropriate $21,000 from the Center for Community Engagement at the California State University, East Bay (CSUEB) for the Operation of Family Education Program Services at HUSD Schools and Both Library Locations in FY 2023”

8. Adopt a Resolution Au thorizing the City Manager to Accept and Appropriate the Pieces of Art Being Donated to Hayward Public Library by Monica Chan and Dean Quock CONS 23-155

Staff report s ubmitted by Library Services Director Addleman, dated March 21, 2023, was filed.

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

AYES: COUNCIL MEMBERS Andrews, Goldstein, Márquez, Roche, Syrop, Zermeño
MAYOR Salinas
NOES: None
ABSENT: None
ABSTAIN: None

Resolution 23-063, “Resolution Authorizing the City Manager to Accept and Appr opriate the Pieces of Art Being Donated to Hayward Public Library by Monica Chan and Dean Quock”

9. Adopt a Resolution Authorizing the City Manager to Appropriate $228,000 from the Mutual Aid Revenue Project of the Capital Projects General Fund (Fund 405 - Project 05002) to Purchase a Telehandler Heavy -Duty Forkli ft f or Use at the Hayward Fire/Rescue Training Center and During/to Prepare for Emergency Disasters CONS 23- 160

Staff report submitted by Fire Chief Contreras, dated March 21, 2023, was filed.

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

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AYES: COUNCIL MEMBERS Andrews, Goldstein, Márquez, Roche, Syrop, Zermeño
MAYOR Salinas
NOES: None
ABSENT: None
ABSTAIN: None

Resolution 23-064, “Adopt a Resol ution Authorizing the City Manager to Appropriate $228,000 from the Mutual Aid Revenue Project of the Capital Projects General Fund (Fund 405 -Project 05002) to Purchase a Telehandler Heavy Duty Forklift for Use at the Hayward Fire/Rescue Train ing Center an d D uring/to Prepare for Emergency Disasters”

PUBLIC HEARING

10. Master Fee Schedule: Adopt a Resolution Approving the FY 2024 Master Fee Schedule, and Finding the Action is Exempt from CEQA Review PH 23-014

Staff report submitted by Finance Director Gonzales, dated March 21, 2023, was filed.

Finance Director Gonzales announced the item and introduced Management Analyst Mullins who provided a synopsis of the staff report.

Discussion ensued among members of the City Council and City staff regarding: the Tenant Relocation Assistance Hearing Fee; once the Heritage Plaza is ready, staff will work on its programming plan and fee schedule; the proposal to move the Housing Division under the Development Services Department during the budget’s proposal is meant to reflect the new organizational structure; updates fees associated with administration of the Residential Rent Stabilization and Tenant Protection Ordinance will be presented to Council on March 28, 2023; a consulting firm had reviewed the City ’s fees in the past to ensure the appropriate amount was being charged for the services bei ng provided and compared it to other agencies; most of the programming at the Library is free and a majority of recreational fees are provided through the Hayward Area Recreation and Park District ; Executive Team could look into whether departments were assessing program usage fees ; non-profit groups serving Hayward were allowed two free uses per month of meeting Room C at the Main Library; the Master Fee Schedule is updated on an an nual basis in coordination with each City department to make any necessary adjustments to adhere to government regulations, to achieve full -cost recovery or incorporate changes approved by the City Council throughout the year; if the Master Fee Sch edule is adopted, it wil l be effective starting July 1, 2023 ; the Hayward Unified School District (HUSD) decided to conduct most of its board meetings at their own facility and if they planned to host a meeting in the Council C hambers, they would cover staff costs of operating t he equi pment and broadcasting the meeting; increased accessory dwelling unit (ADU) fees were based on the

CITY COUNCIL MEETING
777 B Street, Hayward, CA 94541
Virtual Platform (Zoom)
https://hayward.zoom.us/j/83584518480?pwd=VUlYZ0dJV1BlcFlQNGhmY0tKL2dVUT09 Tuesday, March 21, 2023, 7:00 p.m.
valuation of the construction and a majority of the complaints related to ADU fees w ere for sewer and water connection fees and fewer on building pe rmits; t he City is exploring implementing an online r eservation system for all City facilities with the g oal to have a uniform platform allowing easy access for resident s t o make reservations ; tenant relocation hearings are not frequent and when they occur the requestor pays the fee and the City pays for the administration; residents are notified of the proposed fee increases by way of two hearing notices pub lished in the newspaper in advance of the hearing and via the City ’s websi te; and larger fee increases, such as park in-lieu fees , would require an extensive outreach process.

Members of the City Council had the following requests: provide a post -Covid evaluation on how much revenue is generated from parking cit ation fees using GIS tools to c reate a heat map; explore a subsidy in the event a hardship is experienced related to a Tenant Relocation Assistance Hearing Fee.

Mayor Salinas opened the public hearing at 7:39 p.m.

Mr. Carlos Gonzales, President of the Prospect Hill Neighborhood Association, extended an invitation to the City Council to attend their monthly meeting, and asked if t he Board could hold a meeting at City Hall or the Library . Library Services Director Addleman noted most homeowners’ associations and groups meet at the Weekes Library at no charge, and residents could send an email to [email protected]

Mayor Salinas closed the public hearing at 7:42 p.m.

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

AYES: COUNCIL MEMBERS Andrews, Goldstein, Márquez, Roche, Syrop, Zermeño
MAYOR Salinas
NOES: None
ABSENT: None
ABSTAIN: None

Resolution 23-066 “Resolution Adopting the FY 2024 Master Fee Schedule that Reflects Up dated Fees and Charges for
Departments in the City of Hayward and Rescinding Resolution No. 22-073 and all Amendments Thereto and Finding that the Action is Exempt from CEQA Review”

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COUNCIL REPORTS AND ANNOUNCEMENTS

Council Member Zermeño announced that the Hayward Rotary Club was hosting an Omelet Champagne Brunch on March 26, 2023, with Council members and City staff cooking, and noted funds raised will benefit community organizations and children.

Council Member Márquez invited the community to save the date for the City’s 38th Cinco de Mayo celebration on April 29, 2023, in downtown Hayward hosted by La Alianza de Hayward.

Council Member Andrews announced the Ke ep Hayward Clean and Green Task Force was organizing a Beautification Planning Project on March 25, 2023, at St Joach im’s Catholic Church.

Mayor Salinas commended City staff f or doing a great job on behalf of the Kee p Hayward Clean Task Force for their social media campaign.

COUNCIL REFERRALS

11. City Coun cil Referral: Accelerating BART Transit Oriented Development in Hayward RPT 23-037

Staff report submitted by Council Members Andrews and Syrop, dated March 21, 2023, was filed.

Council Member Syrop shared that a Bay Area Rapid Transit District (BART) representative brought to his attention that BART is considering reprioritizing different agencies for Phase II development of its Transportation Oriented Development (TOD) work plan and noted that Hayward can be prioritized as Phase I was in progress. Council Member Syrop indicated one way to i mprove the City’s ranking was to engage with BART proactively, added the referral aligned with the Strategic Roadmap goals to continue to work with BART to encourage TOD on BART-owned properties in Hayward, and provided a synopsis of the referral.

Council Member Andrews requested that BART help at the crucial station sites in Hayward for the future of the community especially in South Hayward; underscored the need for positive activity at the sites that will show smart and responsible growth; hoped the reprioritization will help provide resources to address the needs; expressed her support engaging BART more to resolve issues; and thanked Council Member Syrop for his leadership on the referral.

Council Member Márquez thanked her colleagues for their leadership on the referral and for partnering with BART, commented there were a lot of priorities in Hayward, and this was a good example of how there were two existing committees that could vet the project early and strengthen the partnership with BART.

Mayor Salinas noted the proposed referral was intentional and thoughtful as it aligned with the City’s priorities and expressed his support of it.

CITY COUNCIL MEETING
777 B Street, Hayward, CA 94541
Virtual Platform (Zoom)
https://hayward.zoom.us/j/83584518480?pwd=VUlYZ0dJV1BlcFlQNGhmY0tKL2dVUT09 Tuesday, March 21, 2023, 7:00 p.m.

Council Member Zermeño shared that former Council Member Mendall, Council Member Lamnin and himself were also a part of the JPA with BART and for four years they consistently urged BART for developing its two sites in Hayward; and noted the referral was an additional push for this to happen and supported the referral.

There being no public comment, Mayor Salinas opened and closed the public comment period at 7:54 pm.

It was moved by Council Member Syrop, seconded by Council Member Andrews, and carried by the following roll call vote, to approve the referral.

AYES: COUNCIL MEMBERS Andrews, Goldstein, Márquez, Roche, Syrop, Zermeño
MAYOR Salinas
NOES: None
ABSENT: None
ABSTAIN: None

ADJOURNMENT

Mayor Salinas adjourned the City Council meeting at 7:55 p.m.

APPROVED

__________________________________________________________ Mark Salinas
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 #: MIN 23-043
DATE: March 28, 2023
TO: Mayor and City Council
FROM: City Clerk

SUBJECT
Approve the City Council Minutes of the City Council Meeting on March 28, 2023

RECOMMENDATION
That the Council approves the City Council meeting minutes of March 28, 2023.

SUMMARY
The City Council held a meeting on March 28, 2023.

ATTACHMENTS
Attachment I Draft Minutes of March 28, 2023
CITY OF HAYWARD Printed on 4/7/2023Page 1 of 1
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The City Council meeting was called to order by Mayor Salinas at 7:00 p.m. The City Council held a hybrid meeting in the Council Chambers and virtually via the Zoom platform.

Pledge of Allegiance: Council Member Syrop

Present: COUNCIL MEMBERS Andrews, Goldstein, Roche, Syrop, Zermeño MAYOR Salinas

Absent: COUNCIL MEMBER Márquez

CLOSED SESSION ANNOUNCEMENT

The City Council convened in closed session at 5:30 p.m., with Council Member Márquez absent and no public comment, regarding conference with property negotiators pursuant to Government Code section 54956.8 regarding 1082 B Street , APN 428 -0061-046-02. City Attorney Lawson reported the Council took no reportable action, but anticipates public action at the April 25, 2023, Council meeting. The closed session adjourned at 6:30 p.m.

PRESENTATION

Mayor Salinas acknowledged Co uncil Member Roche for helping h im author the proclamation declaring March 2023 as Women’s History Month in the City of Hayward and bestowed the proclamation upon Hayward Chamber of Commerce Presid ent Linda Renteria. Ms. Renteria expressed her gratitude for the presentation and underscored the importance of recognizing women.

PUBLIC COMMENTS

Mr. Na zario Ayala shared he had started a petition in his community and had gathered approximately 250 signatures to have a dog park b uilt in the Burbank neighborhood where there were fields and empty lots; and requested information about next steps in the process.

Mr. Ayala was advised to contact the City Clerk for information.

Mr. Temo Aguilar, Nor Cal Carpenters Union Local 713 field representative, shared that construction apprenticeship programs can lift communities and urged the Council to adopt standards such as living wage, good healthcare, and apprenticeship programs for City projects in the pipeline.

Mr. Joel Toscano, Nor Cal Carpenters Union Local 713 field representative, underscored the importance of contract labor standards language such as healthcare, app renticeships, and local hire in future pr ojects to help set a level of sta ndards for developers, help cultivate a responsible market for good contractors, and establish structure for future projects coming into Hayward.
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CITY MANAGER’S COMMENTS

There were none.

CONSENT

Consent Items 1, 3 and 5 were removed from the Consent Calendar for a separate vote.

1. Adopt an Ordinance Amending Chapter 10, Article 1, Section 10-1.2750 (Alcoholic Beverage Outlets) of the Hayward Municipal Code to Update the Regulations Governing Alcoholic Beverage Outlets Throughout the City (Continued from March 21, 2023) CONS 23-150

Staff report submitted by City Clerk Lens, dated March 28, 2023, was filed.

Council Member Goldstein asked that the item be removed from the Conse nt Calendar for clarification. Discussion ensued among City staff and members of the Council related to the 50:50 alcohol to food sales ratio, the enforcement mechanism via the Department of Alcoholic Beverage Control (ABC) agency tasked with the sale of alcoholic beverages , the conditional use permit revocation framework for businesses not meeting a required ratio, and controls in place absent a ratio for entities to operate out of compliance with their full-service restaurant liquor license.

Council Member Syrop suggested that in future conversations about the Strategic Roadmap, the topic could be revisited as it relates to economic development.

It was moved by Council Member Goldstein, seconded by Council Member Syrop, and carried by the following roll call vote, to adopt the ordinance.

AYES: COUNCIL MEMBERS Andrews, Goldstein, Roche, Syrop, Zermeño MAYOR Salinas
NOES: None
ABSENT: COUNCIL MEMBERS Márquez
ABSTAIN: None

Ordinance 23-03, “An Ordinance Amending Chapter 10, Article 1, Section 10-1.2750 (Alcoholic Beverage Outlets) of the H ayward Municipal Code to Update the Regulations Governing Alcoholic Beverage Outlets throughout the City”

2. Adopt a Resolution Approving Participation in the Na tional Opioid Settlement with Teva, Allergan, CVS, Walmart and Walgreens, Accepting the Terms of the California Allocation Agreement, and Authorizing the City Manager to Execute and Submit all Necessary Settlement Participation Documents on Behalf of the City of Hayward CONS 23-156

Staff report submitted by City Attorney Lawson and Senior Assistant City Attorney Vigilia, dated March 28, 2023, was filed.

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

AYES: COUNCIL MEMBERS Andrews, Goldstein, Roche, Syrop, Zermeño MAYOR Salinas
NOES: None
ABSENT: COUNCIL MEMBER Márquez
ABSTAIN: None

Resolution 23-067, “ Resolution Approving Participation in the National Opioid Settlement Litigation with Teva, Allergan, CVS, Walmart and Walgreens; Accepting the Terms of the Calif ornia Allocation Agreeme nt; and Authorizing the City Manager to Execute and Submit all Necessary Settlement Participation Documents on Behalf of the City of Hayward”

3. Adopt a Resolution Accepting the Resignat ion of Mr. Jason Yeates from the Keep Hayward Clean and Green Task Force, Effective Immediately CONS 23-168

Staff report submitted by City Clerk Lens, dated March 28, 2023, was filed.

Council Member Andrews thanked Mr. Jason Yeates for his commitment to the Keep Hayward Clean and Green Task Force and especially acknowledged his contributions toward education.

It was moved by Cou ncil Member Andrews, seconded by Council Membe r Goldstein, and carried by the following roll call vote, to adopt the resolution.

AYES: COUNCIL MEMBERS Andrews, Goldstein, Roche, Syrop, Zermeño MAYOR Salinas
NOES: None
ABSENT: COUNCIL MEMBER Márquez
ABSTAIN: None

Resolution 23-070, “Resolution Accepting the Resignation of Mr.

Jason Yeates from the Keep Hayward Cl ean and Green Task Force”

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4. Adopt a Resolution Ac cepting the Resignation of Mr. Stanley Long from the Community Services Commission, Effective Immediately CONS 23-169

Staff report submitted by City Clerk Lens, dated March 28, 2023, was filed.

Council Member Syrop thanked Mr. Stanley Long for his ser vice on the Community Ser vices Commission.

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

AYES: COUNCIL MEMBERS Andrews, Goldstein, Roche, Syrop, Zermeño MAYOR Salinas
NOES: None
ABSENT: COUNCIL MEMBER Márquez
ABSTAIN: None

Resolution 23-068, “Resolution Accepting the Resignation of Mr.

Stanley Long from the Community Services Commission”

5. Adopt a Resolution Authorizing the City M anager to Negot iate and E xecute an Agreement with Centro Legal de la Raza in an Amount Not -to-Exceed $500,000 to Administer a Multi-Agency Legal Assistance and Anti -Displacement Program CONS 23- 176

Staff repo rt submitted b y Housing Manager Morale s and Assistant City Manager Youngblood, dated March 28, 2023, was filed.

Mr. Bill Espinola, Hayward resident, spoke in opposition of authorizing $500,000 of American Rescue Plan Act ( ARPA) funds to an ag ency that is already under contract with Alameda County without public comment or community outreach; and urged the Council to use ARPA funds to make housing providers whole and maintain rental housing in Hayward.

The following individuals encouraged the City to use the $3 million in ARPA funding to fund legal assistance for renters facing evictions; increase the committed dollars from $500,000 to $1 million; c oordinate with local non -governmental organizations to run Eviction Answer Clinics; and commit to developing Right to Counsel legislation.

Mr. Jesse Gunn, Hayward resident, teacher, and renter
Mr. Collin Thormoto, Community Services Commission member and Hayward resident Ms. Arieana Castellanos, Hayward resident

Council Member Roche commented that when 82% of landlords have legal representation during eviction proceedings whereas only 3% of tenants do, there is inequity; added that

CITY COUNCIL MEETING
777 B Street, Hayward, CA 94541
Council Chamber and Virtual Platform (Zoom)
https://hayward.zoom.us/j/82228701227?pwd=TVNQYVZQYjZJTkRaUXpHTHdMeXB5UT09 Tuesday, March 28, 2023, 7:00 p.m.
landlords would appreciate fair representation on both sides to keep residents in homes; noted that having legal representation for tenants allows the City to stave off the crisis that is coming with the County ending the moratorium and failing to renew t heir funding for legal defense; supported the current allocation and was amenable to streamlining additional funds in the future if the program is successful; and made a motion per staff’s recommendation.

Council Member Zermeño seconded the motion.

In response to Council Member Syrop’s inquiry if the contract with Centro Legal included assistance when individuals receive eviction notices and have three days to respond, Housing Manager Morales indicated that in addition to one-on-one help they have self-serve resources; in response to promoting the services offered, Ms. Morales indicated that while marketing was not included in the budget, staff would conduct social media campaigns and possibly mailers as outreach options. Council Member Syro p understood the desire expressed by some community members to increase the allocation to $1 million, but believed there may be a more effective way to use the $2.5 million in remaining funds; and expressed support for the motion.

Council Member Andrews asked staff to send a letter to Alameda County requesting that they look at other ways of funding or providing a path after the moratorium ends, and to provide rental assistance to aid homeowners as well as tenants. City Manager McAdoo responded that staff could put together a letter that is signed by Mayor Salinas. Council Member Andrews requested that staff continue to disseminate information about workshops on the foreclosure prevention program and couns eling for homeowners to help w ith loss mitigation services; and expressed support for the motion.

In response to Council Member Goldstein’s inquiry, Housing Manager Morales confirmed that the Alameda County Board of Supervisors did not approve to increase the funding needed to sustain the contract to provide ongoing legal services; and the Emergency Rental Assistance Program ( ERAP) that provided rental assist ance on behalf of tenants to landlor ds had expended all available funding but there were plans to seek additional funding. Council Member Goldstein expressed support noting that having been both a landlord and a tenant, he understood the need for legal representation.

In response to Council Member Zermeño’s inquiry as to what happens to the program once the $3 million in ARPA funding is depleted, Housing Manager Morales indicated the City was committed to allocating $500,000 of the $3 million and if there was an increased demand, staff would explore further and find another revenue source to fund these efforts but she was not aware of any other sources at the moment that would provide funding on an ongoing basis.

Council Member Roche clarified that the legal aid organization she works for is in Santa Clara County and will not benefit from her advocacy on the issue. 6 | M a r c h 28 , 2 02 3

Mayor Salinas agreed with the comments expressed by Council Member Roche that at the end of the day the little bit of he lp that is offere d can ease residents, es pecially the senior population.

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

AYES: COUNCIL MEMBERS Andrews, Goldstein, Roche, Syrop, Zermeño MAYOR Salinas
NOES: None
ABSENT: COUNCIL MEMBER Márquez
ABSTAIN: None

Resolution 23-071, “Resolution Authorizing the City Manager to Negotiate and Execute an Agreement with Centro Legal De La Raza, Inc., in an Amount Not-to-Exceed $500,000 to Administer a Multi-Agency Legal Assistance and Anti-Displacement Program”

6. Adopt a Res olution Updating the Hayward Local Resilience Plan, Formerly Known as the Hayward Local Hazard Mitigation Plan, and Finding that the Acti on is Exempt from CEQA Review CONS 23-181

Staff report submitted by Fire Chief Contreras, dated March 28, 2023, was filed.

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

AYES: COUNCIL MEMBERS Andrews, Goldstein, Roche, Syrop, Zermeño MAYOR Salinas
NOES: None
ABSENT: COUNCIL MEMBER Márquez
ABSTAIN: None

Resolution 23-069, “Resolution to Adopt the Updated Hayward Local Resilience Plan, Formerly Kn own as the Hayward Lo cal Hazard Mitigation Plan, and Finding that the Action is Exe mpt from CEQA Review”

PUBLIC HEARING

7. Fiscal Year 2024 Master Fee Schedule: Adopt a Resolution Amending the Fiscal Year 2024 Master Fee Schedule to Update the Fees Associat ed with Administratio n of the Residential Rent Stabilization and Tenant Protect ion Ordinance, and Finding tha t the Action is Exempt from CEQA Review PH 23-015

Staff report submitted by Assistant City Manager Claussen and Housing Manager Morales, dated March 28, 2023, was filed.

Housing Manager Morales introduced Management A nalyst Cole-Bloom who provided a synopsis of the staff report.

Discussion ensued among members of the City Council and City staff regarding: cities that have tiered programs have higher fees because of differences among the programs noting that some may have re nt regis tries which require mo re active enfor cement of the legislation; delaying the imposition of October fees due to economic reasons for renters and landlords and lending mon ey to the program f rom the General Fund could be evaluate d during the S eptember update to the Homelessness Housing Task Force (HHTF) noting the City’s practice is to minimize impacts to the General Fund; if the HHTF is concerned about the $26 per month fee , st aff could consider a tiered increase over a period of time ; the options in the ordinance give the landlord flexibility to delay any rent increase and recover the lost revenue at a later time; under the ordinance staff cannot determine the accuracy of rent increase and termination notices received , but it provides a baseline for asse ssing activity.

Mayor Salinas opened the public hearing at 8:45 p.m.

Mr. Bill Espinola , Hayward housing provider, asked staff to acknowledge the impact the pandemic has had on housing providers and focus their efforts and resources in keeping them in business, and urged the Council to reconsider the proposed rent stabilization fee increase.

Mr. Paul Ta ylor, Executive Director of the Rental Housing Association (RHA) of S outhern Alameda County and Hayward Chamber of Commerce Board member, expressed that raising the rent stabilization fee to pay for additional staffing was overreach and misguided, noted other funding mechanisms could be explored such as the General Fund, and urged Council to reject the proposed increase and direct staff to identify a different funding source.

Mr. C ollin Thormoto, Hayward resident , urged the C ouncil to approve the increase in residential re nt stabili zation ord inance administration fee to ensure th at ren ts are kept affordable for residents, and noted the proposed increase was well below the rates other cities have in place.
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Ms. Arieana Castellanos, Hayward resident, homeowner, and housing provider, encouraged the Council to approve the proposed fee increase to ensure that rents are kept affordable for residents, noted the proposed increase was well below that of other local cities, and noted the marginal increase will have a massive benefit for local renters.

Ms. Daisy Maxion, resident of Hayward, former President of Associated Students Inc. (ASI) of CSUEB, and lead organizer with Filipino Advocates for Justice, encouraged the City to increase the proposed residential rent stabilization ordinance administration fee to ensure rents are kept affordable for local residents, domestic workers, and tenants; and shared that because of protections such as rent stabilization her family was able to purchase a home in Hayward.

Mr. Nolan Calara, Hayward resident and ASI President-Elect, favored the rent stabilization ordinance (RSO) fee, stressed that house insecurity is affecting his 13,000 classmates; underscored that if the department administering the RSO program is underfunded, then bad actors will take a dvantage; and urged the Council to hel p students who rely on afforda ble housing options.

Mayor Salinas closed the public hearing at 8:58 p.m.

In response to Council Member Andrews’ inquiry about an opportunity for homeowners to apply for hardship assistance if they were experiencing challenges paying fees, City staff noted there was no explicit language in the ordinance, but staff could research existing policies for hardship situations.

City Manager McAdoo clarified for Council Member Roche that if the net operating income as a landlord is not meeting a certain threshold, then the housing provider could petition for relief or a higher increase, per the ordinance.

Council Member Roche expressed that since 51% of Hayward residents are renters and 30% income-burdened, the City had to fund programs to assist renters to e nsure increases are proper; indicated that similar to legal aid, programs that help tenants understand their rights, enable landlords to communicate with their tenants and keep people housed; emphasized that Hayward’s proposed fee of $66 was low compared to neighboring communities, noting the increase was more of a catch-up fee as the City had not raised fees in a few years ; and underscored it was fiscally prudent to keep the program funded.

Council Member Syrop agreed with the comments express ed by his colleagues; stated the ordinance did more than stabilize the rent percentage, but established a mediation and arbitration program; noted the proposal would also help public safety reduce the population of unhoused individuals and help individuals escape the cycle of poverty; added the City could be fis cally responsible by not spending more money on emergency resources but funding social services; noted the proposed increase was reasonable; added the policy would put the cost on both parties and would create a healthy mediation system; and made a motion to approve staff’s recommendation.

Council Member Roche seconded the motion.

Council Member Zermeño expressed his support of the program; agreed with Council Member Goldstein’s comments about being prepared in case of an economic downturn; emphasized the importance of stabilizing rents and having tenant protections; and noted the ordinance had a mechanism for cost recovery in the event property owners did not have enough revenue to cover their cost.

Mayor Salinas thanked his collea gues who serv e on the HHTF noting the item had been reviewed for s ome time; appreciated the comments by Council Members Roche and Syrop about the r elationship between landlords and tenants ; acknowledged RHA comments and expressed the proposed fee was not too high; noted that over the years the Council had taken a firm position of being cautious in dipping into the General Fund and approving programs that were sustainable and self-funding; and noted the Council was dedicated to protecting both groups through the proposal and investing in education, legal assistance, mediation and other programs.

In response to Council Member Andrews’ request for clarification about hardship assistance, City Manager McAdoo noted there was no specific language in the Master Fee Schedule and as mentioned by Council Member Roche, landlords would be guaranteed a net operating income if they encountered a hardship situation. City Manager McAdoo indicated that if Council desired to have s omething more specific about petitioning to the Housing Manager or City Manager for hardship purposes, this could be added to the resolution.

Council Member Andrews offered a friendly a mendment for staff to return to Council with options for hardship petitions.

Council Member Syrop preferred that a hardship petition mechanism be reviewed by the HHTF. Council Members Andrews, Syrop and Roche were amenable to the suggestion.

It was moved by Council Member Syrop, seconded by Council Member Roche, and carried by the following roll call vote, to adopt the resolution with a friendly amendment with direction for staff to return to the Homelessness-Housing Task Force with an analysis of a potential process for landlords to declare hardship regarding payment of the annual administration fee.

AYES: COUNCIL MEMBERS Andrews, Goldstein, Roche, Syrop, Zermeño MAYOR Salinas
NOES: None
AYES: COUNCIL MEMBER Márquez
ABSTAIN: None

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Resolution 23-072 “Resolution Authorizing the Amendment to Resolution 23-066, the Resolution for the City of Hayward Fiscal Year 2024 Master Fee Schedule Associated with the
Administration of Chapter 12, Article 1, of the Hayward Municipal Code Regarding the New Residential Rent Stabilization and Tenant Protection Ordinance a nd the Mobile home Space Rent Stabili zation Ordinance and Finding that the Action is Exempt from CEQA Review”

8. Hayward Municipal Code: Introduce an Ordinance Amending Chapter 10, Article 17 of the Hayw ard Municipal Code Updating the Affordable Housing Ordi nance; and Adopt Resolutions Amending Resolution No 17-167 to Increase the Affordable Housing In-lieu Fees for Lower Density Ownership Housing and Amending the FY 2024 Master Fee Schedule and Finding the Action is Exempt from CEQA Review PH 23-016

Staff report submitted by Assistant City Manager Claussen, dated March 28, 2023, was filed.

Assistant City Manage r Claussen announced the item and introduced Housing Manager Morales and Mr. Derek Braun with Strategic Ec onomics, who provided a synopsis of the staff report.

In response to Council Member Syrop’s inquiry if up zoning would be a way to incentivize more housing development beyond SB 9, Mr. Derek Braun noted that based on the analysis, developers would lose money for every unit bu ilt in rental multifamily housing products as well as higher density condominium ownership products.

Mayor Salinas opened the public hearing at 9:50 p.m.

Ms. Ro Aguilar requested that staff track all approved qualified single-family and townhome residential developm ents, track how many of them choose to build onsite af fordable inclusionary housing both owner-occupied and rental, and how many decide to pay in-lieu fees, and provide the range of pro fit for developers providing onsite inclusionary housing versus paying in -lieu fees ; and emphasized the detailed tracking w ould provide valuable information when deciding on future revisions of the Affordable Housing Ordinance.

Mayor Salinas closed the public hearing at 9:54 p.m.

Members of the City Council thanked Cit y staff and the consultant team for the informative staff report.

Council Member Andrews appreciated Ms. Aguilar’s advocacy for inclusionary housing and asked staff if data tracking would be feasible. Housing Manager Morales responded that as Energov is implemented, staff were looking into ways to track the affordable housing component with the entitlement and permit processes.

Council Member Roche appreciated comparable cities information, indicated the analysis from Strategic Economics demonstrated what was feasible and provided a realistic view of limitations with affordable housing , was thankful for the update to the language for inclusionary housing and in-lieu fees and highlighted the importance of in-lieu fees in leveraging funds to build affordable housing.

In response to Council Member Syrop’s inquiry if there was a way to track the range of profits as suggested by Ms. Aguilar, Housing Manager Morales stated that she did not think this could be accomplished as the information was not submitted as a part of the entitlement or building process and was not sure if developers would be willing to provide the information. Council Member Syrop requested, as the City moves forward, to develop some type of data that is more granular to help assess effectiveness which may guide how to adjust the ordinance in the future.

In response to Council Member Zermeño’s inquiry as to the next development project where in-lieu fees would be used, Housing Manager Morales responded that the next step would be to issue a notice of funding availability to identify new housing projects.

Council Member Zermeño asked if the City would be open to a developer who might do half infill development of onsite units and half in-lieu fees. Housing Manager Morales stated that a developer could submit an alternative plan which would be subject to the decision-making body for approval, if staff felt that the project was at a minimum equivalent to the onsite or the in-lieu fee requirement.

Mayor Salinas stated that as the Chair of the Housing Homelessness Task Force he was going to assert his privilege and move the item per staff’s recommendation. Mayor Salinas thanked Housing Manager Morales for all her hard work.

Council Member Syrop seconded the motion.

It was move d by Mayor Salinas, seconded by Cou ncil Member Syrop, and carried by the following roll call vote, to adopt the resolutions and introduce the ordinance.

AYES: COUNCIL MEMBERS Andrews, Goldstein, Roche, Syrop, Zermeño MAYOR Salinas
NOES: None
ABSENT: COUNCIL MEMBER Márquez
ABSTAIN: None

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Resolution 23-073 “Resolution Finding that the Enactment of an Ordinance Amending Chap ter 10, Article 17, of the Hayward Municipal Code Regarding Affordable Housing Requirements for New Housing Developments is Exem pt from the California Environmental Quality Act (CEQA)”

Resolution 23-074 “Resolution Amending Resolution 17 -167 Updating the Affordable Housing in-Lieu Fee”

Resolution 23-075 “Resolution Authorizing the Amendment to Resolution 23-066, the Resolution for the City of Hayward Fiscal Year 2024 Master Updating the Affordable Housing in-Lieu Fees”

Intro Ord inance 23- “An Ordinance o f t he City of Hayward Amending Chapter 10, Article 17, of the Hayward Municipal Code Regarding Affordable Housing Requirements for New Housing Developments”

LEGISLATIVE BUSINESS

9. General Plan Annual Progress Report: Accept the Hayward 2040 General Plan An nual Progress Report for Calendar Year 2022 LB 23-012

Staff report submitted by Acting Development Services Director Buizer, dated March 28, 2023, was filed.

Acting Development Services Director Buizer announced the item and introduced Associate Planner Hahn who provided a synopsis of the staff report.

In response to Council Member Zermeño’s inquiry related to what could be done to give more em phasize to the Urban Forest Plan, especially in trying to reduce the carbon footprint in the city, Acting Director Buizer stated this would be a question for discussion at the Council’s upcoming retreat on the Strategic Roadmap where Council is anticipated to prioritize projects for the next several years.

There being no public comment, Mayor Salinas opened and closed the public comment period at 10:18 p.m.

In response to Council Member Syrop’s inquiry if there were instances when the Council did not accept a progress report on the General Plan, Acting Director Buizer responded that since adoption of the 2040 General Plan the Council has never rejected an update. City Manager McAdoo added that if th e Council did not accept the report by April 1, 2023, the City was placed at risk of not receiving grants from the state and suggested that if the Council had concerns with the re port this could be addressed while stil l accepting and moving forward with the report.

Mayor Salinas was pleased with the work done in the Education City Chapter of the General Plan.

Council Member Andrews stated that the report included references to a percentage of initiatives that do not fit in the Strategic Roadmap and asked if these were related to ongoing services that the City needed to provide. Acting Director Buizer responded that some of the programs could be aligned with the overarching goals of the Strategic Roadmap, but were not identified under specific projects, and added that there were certain routine items that do not fall within the six priorities. City Manager McAdoo suggested that for the Strategic Roadmap session, there s hould be a sli de specifically on efforts of the General Plan that were not consistent or needed to be added to the Strategic Roadmap.

It was move d by Council Member Goldstein , seconded by Council Member Zermeño, and carried by the following roll call vote, to accept the report.

AYES: COUNCIL MEMBERS Andrews, Goldstein, Roche, Syrop, Zermeño MAYOR Salinas
NOES: None
ABSENT: COUNCIL MEMBER Márquez
ABSTAIN: None

COUNCIL REPORTS AND ANNOUNCEMENTS

Council Member Andrews noted that short presentations by staff with ample time for Council dialogue are more effective.

Council Member Syrop thanked the Housing Division team for putting together so many proposals in such a short timeframe and appreciated all the work and comments received on the items.

COUNCIL REFERRALS

There were none.

ADJOURNMENT

Mayor Salinas adjourned the meeting at 10:31 p.m., in memory of Mr. Joe Kuwabara. Council Member Zermeño stated that Mr. Joe Kuwabara was a longtime counselor at Chabot College, was faculty and student centered, was well respected by students and a friend to all , and shared special memories of him. Council Member Zermeño asked staff to work with the Kuwabara family to plant a tree in his memory.

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APPROVED
__________________________________________________________ Mark Salinas
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 23-186
DATE: April 11, 2023
TO: Mayor and City Council
FROM: City Clerk

SUBJECT
Adopt an Ordinance Amending Chapter 10, Article 17 of the Hayward Municipal Code Regarding Affordable Housing Requirements for New Housing Developments

RECOMMENDATION
That the Council adopts the Ordinance introduced on March 28, 2023.

SUMMARY
This item entails adoption of an Ordinance amending Chapter 10, Article 17 of the Hayward Municipal Code, introduced on March 28, 2023, by Mayor Salinas.

ATTACHMENTS
Attachment I Staff Report
Attachment I Summary of Ordinance Published
CITY OF HAYWARD Printed on 4/7/2023Page 1 of 1
powered by Legistar™

Page 1 of 2 ends

DATE: March 28, 2023

TO: Mayor and City Council

FROM: City Clerk

SUBJECT: Adopt an Ordinance Amending Chapter 10, Article 17 of the Hayward Municipal Code Regarding Affordable Housing Requirements for New Housing Developments

RECOMMENDATION

That the Council adopts the Ordinance introduced on March 28, 2023.

SUMMARY

This item entails adoption of an Ordinance amending Chapter 10, Article 17 of the Hayward Municipal Code, introduced on March 28, 2023, by Mayor Salinas.

BACKGROUND

The Ordinance was introduced by Mayor Salinas at the March 28, 2023 , meeting of the City Council with the following vote:

AYES: COUNCIL MEMBERS: Andrews, Goldstein, Roche, Syrop, Zermeño MAYOR Salinas
NOES: NONE
ABSENT: COUNCIL MEMBER: Márquez
ABSTAIN: NONE

STRATEGIC ROADMAP

This agenda item is a routine operational item and does not relate to one of the priorities outlined in the Council’s Strategic Roadmap.

FISCAL IMPACT

There is no fiscal impact associated with this report.

Page 2 of 2 ends

PUBLIC CONTACT

The summary of the Ordinance was published in the Daily Review c/o Bay Area News Group- East Bay on Friday, April 7, 2023. Adoption, at this time, is therefore appropriate.

NEXT STEPS

The Hayward Municipal Code and other related documents will be updated accordingly.

Prepared and Recommended by: Miriam Lens, City Clerk

Approved by:

_________________________________
Kelly McAdoo, City Manager

ATTACHMENT II

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PUBLIC NOTICE OF AN INTRODUCTION OF AN ORDINANCE BY THE CITY COUNCIL

OF THE CITY OF HAYWARD

AN ORDINANCE OF THE CITY OF HAYWARD AMENDONG CHAPTER 10, ARTICLE 17,

OF THE HAYWARD MUNICIPAL CODE REGARDING AFFORDABLE HOUSING

REQUIREMENTS FOR NEW HOUSING DEVELOPMENTS

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF HAYWARD DOES ORDAIN AS FOLLOWS:

Section 1. Chapter 10, Article 17, of the Hayward Municipal Code is hereby amended to rea d as follows:

ARTICLE 17 - AFFORDABLE HOUSING ORDINANCE

SEC. 10-17.100 GENERAL PROVISIONS.

SEC. 10-17.105 TITLE.

SEC. 10-17.110 PURPOSE.

SEC. 10-17.115 FINDINGS.

SEC. 10-17.120 DEFINITIONS.

SEC. 10-17.200 RESIDENTIAL DEVELOPMENT PROJECTS
SEC. 10-17.205 UNIT THRESHOLD AND BASIC REQUIREMENTS.

SEC. 10-17.210 ON-SITE UNITS IN OWNERSHIP RESIDENTIAL PROJECTS.

SEC. 10-17.215 ON-SITE UNITS IN RENTAL RESIDENTIAL PROJECTS.

SEC. 10-17.220 DESIGN, DISTRIBUTION AND TIMING OF AFFORDABLE UNITS.

SEC. 10-17.225 OFF-SITE CONSTRUCTION.

SEC. 10-17.230 ADDITIONAL ALTERNATIVES.

SEC. 10-17.300 RESERVED

SEC. 10-17.400 AFFORDABLE HOUSING IN-LIEU FEE
SEC. 10-17.405 ADOPTION OF AFFORDABLE HOUSING IN-LIEU FEE.

SEC. 10-17.410 PAYMENT OF AFFORDABLE HOUSING IN-LIEU FEE.

SEC. 10-17.415 USE OF AFFORDABLE HOUSING IN-LIEU FEE.

SEC. 10-17.500 IMPLEMENTATION OF AFFORDABLE HOUSING PLAN SEC. 10-17.505 GENERAL.

SEC. 10-17.510 AFFORDABLE HOUSING PLAN.

SEC. 10-17.515 AFFORDABLE HOUSING AGREEMENT.

SEC. 10-17.520 TERM OF AGREEMENT.

SEC. 10-17.525 RECORDING OF AGREEMENT.

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SEC. 10-17.600 EXEMPTIONS

SEC. 10-17.700 DEVELOPMENT INCENTIVES

SEC. 10-17.800 ADMINISTRATION OF AFFORDABLE UNITS
SEC. 10-17.805 SELECTION CRITERIA.

SEC. 10-17.810 CONFLICT OF INTEREST.

SEC. 10-17.815 OCCUPANCY.

SEC. 10-17.820 RESALE OF FOR-SALE AFFORDABLE UNITS.

SEC. 10-17.825 OPTION TO PURCHASE - FOR-SALE AFFORDABLE UNITS.

SEC. 10-17.830 RENTAL AFFORDABLE UNITS.

SEC. 10-17.835 MARKETING PLAN.

SEC. 10-17.840 COMPLIANCE REPORTS.

SEC. 10-17.845 SUBSEQUENT RENTAL TO INCOME-ELIGIBLE TENANT.

SEC. 10-17.850 CHANGES IN TENANT INCOME.

SEC. 10-17.900 ADJUSTMENTS AND WAIVERS
SEC. 10-17.905 APPLICATION FOR ADJUSTMENTS AND WAIVERS.

SEC. 10-17.910 CONSIDERATIONS.

SEC. 10-17.915 ACTION ON ADJUSTMENT OR WAIVER.

SEC. 10-17.1000 AFFORDABLE HOUSING TRUST FUND
SEC. 10-17.1005 TRUST FUND.

SEC. 10-17.1010 PURPOSE, LIMITATIONS AND ADMINISTRATION.

SEC. 10-17.1100 ENFORCEMENT
SEC. 10-17.1105 MISDEMEANOR.

SEC. 10-17.1110 CITY ACTIONS.

Section 2. Severance.

If any section, subsection, paragraph or sentence of this Ordinance, or any part thereof, is for any reason found to be unconstitutional, invalid or beyond the authority of the City of Hayward by a court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance.

Section 3. Effective Date.

This ordinance shall become effective thirty (30) days after adoption by the City Council.

Introduced at a regular meeting of the Cit y Council of the City of Hayward, held the 28th day of March, 2023, by Mayor Salinas.

This Ordinance will be considered for adoption at the regular meeting of the Hayward City Council, to be held on the 11th day of April, 2023, at 7:00 p.m. Please note the City Council will hold a hybrid meeting which will allow for participation in the Council Chamber and virtually via the Zoom platform. The full text of this Ordinance is available for examination by the public by contacting the City Clerk’s office at [email protected] or (510) 583-4400.

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Dated: April 7, 2023
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 23-167
DATE: April 11, 2023
TO: Mayor and City Council
FROM: Assistant City Manager

SUBJECT
Adopt a Resolution Opposing Initiative 21-0042A1 on the November 2024 General Election Ballot, entitled the “Taxpayer Protection and Government Accountability Act” and Authorizing the Mayor to Sign a Letter of Opposition to the Ballot Measure

RECOMMENDATION
That the Council 1) adopts a resolution (Attachment II) opposing Initiative 21-0042A1 on the November 2024 General Election Ballot, entitled by its proponents the “Taxpayer Protection and Government Accountability Act”; and 2) authorizes the Mayor to sign a letter of opposition to the ballot measure to be delivered to the League of California Cities (CalCities).

SUMMARY
The Taxpayer Protection and Government Accountability Act (“the measure”), if approved by a simple majority of voters in the November 2024 general election, would amend the California Constitution with provisions restricting the enactment of taxes by state legislators, local boards, or voter-initiated ballot measures. It would also invalidate any local taxes enacted after January 1, 2022; impose mandatory sunset dates on all taxes; put restrictions on local fees and charges; and limit government’s ability to impose fines on businesses that violate state or local law.

The Constitutional amendments proposed by the measure are in opposition to the General Legislative Principles of Enhancing Revenue Sources and Maintaining Home Rule Authority as outlined in the City’s Legislative Program. The measure would significantly impact the City’s future ability to fund services and operations, including those funded by the City’s local Measure C sales tax, the Utility Users Tax, the Real Property Transfer Tax, the Transient Occupancy Tax, as well as transportation and street improvements funded by Alameda County Measure BB.

ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
CITY OF HAYWARD Printed on 4/7/2023Page 1 of 2
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File #:CONS 23-167
Attachment III Proposed Letter of Opposition
Attachment IV Measure 21-0042A1
CITY OF HAYWARD Printed on 4/7/2023Page 2 of 2
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DATE: April 11, 2023

TO: Mayor and City Council

FROM: Assistant City Manager

SUBJECT: Adopt a Resolution Opposing Initiative 21-0042A1 on the November 2024 General Election Ballot, entitled the “Taxpayer Protection and Government Accountability Act” and Authorizing the Mayor to Sign a Letter of Opposition to the Ballot Measure

RECOMMENDATION

That the Council 1) adopts a resolution (Attachment II) opposing Initiative 21-0042A1 on the November 2024 General Election Ballot, entitled by its proponents the “Taxpayer Protection and Government Accountability Act”; and 2) authorizes the Mayor to sign a letter of opposition to the ballot measure to be delivered to the League of California Cities (CalCities).

SUMMARY

The Taxpayer Protection and Government Accountability Act (“the measure”), if approved by a simple majority of voters in the November 2024 general election, would amend the California Constitution with provisions restricting the enactment of taxes by state legislators, local boards, or voter-initiated ballot measures. It would also invalidate any local taxes enacted after January 1, 2022; impose mandatory sunset dates on all taxes; put restrictions on local fees and charges; and limit government’s ability to impose fines on businesses that violate state or local law.

BACKGROUND

On January 4, 2022, the political action committee (PAC) Californians for Taxpayer Protection and Government Accountability filed AG#21-0042A1, officially titled the

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“Taxpayer Protection and Government Accountability Act”.1 The PAC and its ballot measure campaign have raised over $16 million, primarily funded by the California Business Roundtable, with additional contributions from real estate investment companies including Douglas Emmett Properties, Kilroy Realty LP, and Western National Group, as well as emergency medical services provider AMR Holdco, Inc.2

On February 1, 2023, the California Secretary of State announced the initiative had qualified for the November 2024 ballot with just over one million valid signatures.3 The measure has since been supported by the California National Association for Industrial Office Parks, also known as the Commercial Real Estate Development Association, and the Howard Jarvis Taxpayers Association, founded in 1978 to protect Proposition 13 and oppose taxation in California.4

In 2017, the City adopted a formal Legislative Program, which serves as a guide to Hayward’s legislative priorities and positions. Under the program, the City has two General Legislative Principles: 1) Enhancing Revenue Sources and 2) Maintaining Home Rule Authority.5 These principles were re-affirmed when the Council adopted an update to the Legislative Program in January 2022.6 Based on these stances, the City has opposed legislation and ballot measures limiting its ability to raise revenue or enact legislation.

Most recently, in September 2022, the City opposed AB 1951, which proposed exempting manufacturers from paying full sales taxes on equipment purchases for a five-year period.

DISCUSSION

Taxpayer Protection and Government Accountability Act Provisions The proposed language of the Taxpayer Protection and Government Accountability Act includes changes to the California Constitution: 1) classifying all levies, fees, and charges imposed by state and local government as either taxes or what the initiative defines as “exempt charges;” and 2) imposing new vote requirements and limitations on new or increased taxes. The full text of the measure can be found in Attachment IV.

1 Initiative 21-0042, California Attorney General https://oag.ca.gov/system/files/initiatives/pdfs/21- 0042A1%20%28Taxes%29.pdf
2 Campaign Finance: Californians for Taxpayer Protection and Government Accountability, Sponsored by California Homeowners, Taxpayers, and Businesses, Cal-Access https://cal- access.sos.ca.gov/Campaign/Committees/Detail.aspx?id=1442599&session=2021&view=received 3 RE: Initiative: #1935 Related to Taxes – Eligibility for Ballot, California Secretary of State https://elections.cdn.sos.ca.gov/ccrov/2023/february/23017jh.pdf 4 California Two-Thirds Legislative Vote and Voter Approval for New or Increased Taxes Initiative (2024) – Support, Ballotpedia https://ballotpedia.org/California_Two- Thirds_Legislative_Vote_and_Voter_Approval_for_New_or_Increased_Taxes_Initiative_(2024)#cite_note- finance-6
5 Adoption of Federal and State Legislative Priorities Program , Hayward City Council Report July 17, 2017 https://hayward.legistar.com/View.ashx?M=F&ID=5300265&GUID=DBE4601B -D0BF-44E8-9EAB- AFF7E45BD3FC
6 Legislative Program: Adopt a Resolution Updating the City’s Legislative Program, Hayward City Council Report January 18, 2022
https://hayward.legistar.com/LegislationDetail.aspx?ID=5382570&GUID=5F2027E2 -FB7B-43AA-8DFE- 01D398587443

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The measure dictates that all charges imposed by state and local governments be considered taxes for the purposes of enactment or amendment unless they are “exempt charges” as described below:

 Reasonable charges that do not exceed the cost of providing associated services,  Charges collected to fund the non-federal portion of Medi-Cal,  Charges collected for admission, use, rental, purchase or lease of government property,
 Fines imposed as a result of a violation of law, or
 Charges for the promotion of California tourism.

State and local governments would bear the burden of providing evidence that fines, fees, or other levies are “exempt charges.” Proposed exempt charges may be subject to legal challenge. Levies that cannot prove their status as “exempt charges” would be considered taxes.

The measure proposes the following limitations on when and how new or increased taxes may be enacted:

 All new taxes and tax increases would require approval by both the governing body and voters. General taxes would require a simple majority in addition to governing body approval. Special taxes would require a two-thirds majority as well as governing body approval.
 For local taxes, the requirements for governing body and voter approval would apply to both taxes proposed by the governing body as well as taxes placed on the ballot by voters. Statewide voter-initiated ballot measures would be exempt from the two-thirds majority requirement.
 Voter approval would be required for any expansion of existing taxes, including expansions through annexations or new applications of existing taxes, such as imposing a utility users’ tax on a new utility service.  General tax ballot measures must include specific language designating the tax as being “for general government use.” Advisory measures indicating specific potential uses for a general tax’s revenue would or should be used would be prohibited.  All new taxes must include a sunset date.
 City charters may not be amended to include taxes or fees.  Any tax or fee imposed after January 1, 2022, that does not comply with the language of the measure would be voided.

Impact of Proposed Measure
According to the ballot summary provided by the Secretary of State, if passed, the Taxpayer Protection and Government Accountability Act would significantly curtail the ability of voters and state and local governments to raise revenues for government services.7 Under existing law, local governments’ revenue-raising authority is already substantially

7 Eligible Statewide Initiative Measures, California Secretary of State https://www.sos.ca.gov/elections/ballot-measures/initiative-and-referendum-status/eligible-statewide- initiative-measures

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restricted by statute and constitutional provisions. Examples of existing restrictions include: Proposition 13 (1978) limiting property tax changes; Proposition 218 (1996) requiring voter approval for all new local taxes; and Proposition 26 (2010) expanding the definition of a “tax” to include any levy, charge or exaction imposed by a local government that does not fall within one of seven specific exemptions. .

The Taxpayer Protection and Government Accountability Act would further limit local governments’ ability to raise revenue by redefining existing fees and charges as taxes, such as:

 Nuisance abatement charges, such as for weed, rubbish, and general nuisance abatement to fund community safety, code enforcement, and neighborhood cleanup programs;
 Commercial franchise fees;
 Emergency response fees, such as in connection with DUI;  Document processing and duplication fees;
 Transit fees, tolls, parking fees, and public airport and harbor use fees; and  Fees for parks and recreation services; and
 Garbage disposal tipping fees.

Currently, the City regularly adopts increases to fee rates and charges and has the ability to revise rate schedules to accommodate new users and activities. The City’s Master Fee Schedule, which identifies the fees for various City services, is based on recovery for the cost of delivering services. Certain services deemed to provide community benefits may have fees that are lower than cost recovery at Council’s discretion. Unlike most revenue sources, the City currently has significant control over use fees, allowing it the flexibility to balance service levels, demand, and community benefit. Under the provisions of the measure, the City’s ability to adjust fees would be severely restricted.

Table 1 provides a summary of revenues generated by fees. Some fees may be considered exempt charges under the measure and not impacted, but determining the nature of the fee would require evaluation on a case-by-case basis.

Table 1: Three-Year Actuals of Fee Revenue (All Funds)

Fee Revenues FY 2020
Actuals
FY 2021
Actuals
FY 2022
Actuals
Utility Fees $92,658,381 $92,617,319 $93,549,968
Franchise Fees $11,435,862 $11,444,929 $11,333,075
Other Fees $7,098,893 $5,440,311 $6,708,071
Fees and Charges for Services $3,915,313 $5,142,957 $5,247,379 Fines & Forfeitures $2,486,851 $2,401,632 $3,075,079
Permits $5,095,304 $4,264,388 $1,972,575
Licenses $156,641 $146,864 $180,369
Total Charges and Fees Revenue $122,847,245 $121,458,400 $122,066,516

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The City of Hayward also has several key revenue sources that are currently considered taxes and would be affected by the measure. These revenue streams make up a significant portion of the City’s annual revenue. General use taxes that fund City operations include Property Tax, Sales Tax, Utility User Tax (UUT), Real Property Transfer Tax (RPTT), Transit Occupancy Tax (TOT), Cannabis Tax, and Measure C Sales Tax. City operations are also supported by the Alameda County Measure B/BB transportation sales tax, a special tax which helps fund transportation and paratransit programs.

Over the years, the City has taken several tax ballot measures to its voters and received support for tax measures that provide community support and programmatic services to the Hayward community. Under the Taxpayer Protection and Government Accountability Act, future tax measures would face steeper approval requirements and would need to include explicit sunset dates. Table 2 provides an overview of City taxes that have been passed by voters.

Table 2: Voter Approved Tax Ballot Measures

Tax Voter-Approved Ballot
Measures Sunset Date
Sales Tax (1/2 Cent) Measure C – City of Hayward December 2034 Utility User Tax (UUT) Measure A – City of Hayward June 2019 Utility User Tax Renewal (UUT) Measure D – City of Hayward June 2039 Real Property Transfer Tax (RPTT) Measure T – City of Hayward N/A Cannabis Tax Measure EE – City of Hayward N/A
Transient Occupancy Tax (TOT) Measure NN – City of Hayward N/A Transportation Sales Tax (1/2
Cent)
Measure B – County of Alameda March 2022
Transportation Sales Tax (1/2
Cent)
Measure BB – County of
Alameda
March 2045

Table 3 below provides a summary of revenues generated by each of the above taxes. Any future efforts to extend or increase these revenue sources would be subject to the provisions of the measure.

Table 3: Three-Year Actuals of Tax Generating Revenue (All Funds)

Tax Revenues FY 2020
Actuals
FY 2021
Actuals
FY 2022
Actuals
Property Tax $58,431,803 $61,196,409 $63,524,226
Sales & Use Tax (General Fund) $39,679,957 $40,074,819 $44,027,645 Sales & Use Tax (Measure C) $16,886,500 $18,577,214 $20,638,713 Utility Users Tax (UUT) $16,065,943 $17,267,592 $17,308,117 Real Property Transfer Tax (RPTT) $12,150,286 $17,120,032 $21,226,290 Transient Occupancy Tax (TOT) $2,186,927 $1,552,148 $1,978,906 Cannabis Tax $2,985 $441,877 $842,860

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Tax Revenues FY 2020
Actuals
FY 2021
Actuals
FY 2022
Actuals
Measure B $993,532 $1,037,806 $850,580
Measure BB $903,523 $898,232 $1,210,250
Total Tax Revenue $147,301,456 $158,166,129 $171,607,587

FISCAL IMPACT

The resolution and position letter opposing the Taxpayer Protection and Government Accountability Act will have no immediate fiscal impact on the City of Hayward. According to an analysis by the California Legislative Analyst’s Office (LAO), if the measure succeeds, the exact extent to which revenues would be lower is unknown, but existing fee revenue is likely to suffer greater impacts than general tax revenues.8 Actual impacts would likely be substantial, depending on future decisions by the courts, the City Council, and voters.

STRATEGIC ROADMAP

This agenda item supports the policies outlined in the City’s Legislative Program, as well as the following specific strategic priority and objective:

Strategic Priority: Strengthen Organizational Health

Objective: Strengthen Fiscal Sustainability – Maintain and expand fiscal sustainability

NEXT STEPS

If Council adopts the attached resolution, staff will transmit copies of the resolution along with letters conveying the City of Hayward’s opposition to the Taxpayer Protection and Government Accountability Act Ballot Measure (AG# 21-0042A1) to the League of California Cities/CalCities, as well as to appropriate legislative representatives. The full text of the draft letter can be found in Attachment III.

Prepared by: Rick Rivera, Management Analyst

Recommended by: Dustin Claussen, Assistant City Manager

Approved by:

__________________________________
Kelly McAdoo, City Manager

8 A.G. File No. 2021-042, Legislative Analyst’s Office https://lao.ca.gov/BallotAnalysis/Initiative/2021-042

ATTACHMENT II

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HAYWARD CITY COUNCIL

RESOLUTION NO. 23 -

Introduced by Council Member __________

RESOLUTION OPPOSING INITIATIVE 21 -0042A1 ON THE NOVEMBER 2024 GENERAL ELECTION BALLOT, ENTITLED THE “TAXPAYER PROTECTION AND GOVERNMENT ACCOUNTABILITY ACT” AND AUTHORIZING THE MAYOR TO SIGN A

LETTER OF OPPOSITION TO THE BALLOT MEASURE

WHEREAS, the Ci ty Coun cil of the City of H ayward ado pted a formal legislative program informing interested parties of the City ’s stances on legislation, state wide referenda, grant funding opportunities, and local ballot measures; and

WHEREAS, the City’s le gislative program is based on the principles of enhancing revenue sources and maintaining home rule authority by opposing legislation, referenda, and unfunded mandates that would have an adv erse effect on the City’s fiscal stability or that would undermine or circumvent the City Charter; and

WHEREAS, on February 1, 2023, the California Secretary of State announced that Initiative 21 -0042A1, also known as the “Taxpayer P rotection and Governme nt Accountability Act ” had qualified for the No vember 2024 General Election Ballot with 1,075,585 valid signatures; and

WHEREAS, the ballot measure includes provisions that significantly curtail the ability of local go vernments and voters to enact, expand, or extend general and sp ecial taxes; and would limit voter inp ut by prohibiting loc al advisory measures providing direction on how voters want tax revenues to be used; and

WHEREAS, the measure red efines many exis ting local fees and charges as taxes subject to these increased requirements; and

WHEREAS, the measure would require state and local g overnments to bea r the burden of proving a fee or charge is not a tax and therefore exemp t from increased requirements; and

WHEREAS, the League of California Cities has requested that the City of Hayward join the No on Initiative 21-0042A1 by providing it with a letter opposing the measure,

NOW, THEREFORE, BE IT RESOLVED that the Hayward City Council hereby authorizes the Mayor to sign letter s opposing Initiative 21-0042A1, also known as the “Taxpayer Protection and Government Accountability Act”; and

ATTACHMENT II

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BE IT FURTHER RESOLVED that the Hayward City Council hereby direct City staff to transmit copies of this resolution along w ith letters to the League of California C ities and other relevant officials.

IN COUNCIL, HAYWARD, CALIFORNIA _______________________, 2023

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

ATTACHMENT III
Office of Mayor Mark Salinas T: 510.583.4340 TTD: 510.247.3340 777 B Street, Hayward, CA 94541 F: 510.583.3601 www.hayward-ca.gov

March 2, 2023

The Honorable Liz Ortega
California State Assembly
1020 O Street, Suite 5120
Sacramento, CA 95814

The Honorable Aisha Wahab
California State Senate
1020 O Street, Suite 7330
Sacramento, CA 95814

RE: Taxpayer Protection and Government Accountability Act (Initiative 21-0042A1) City of Hayward – Notice of Opposition

Dear Senator Wahab and Assembly Member Ortega:

On behalf of the City of Hayward, I write to express our opposition to Initiative 21 -0042A1, entitled by its proponents as the “Taxpayer Protection and Government Accountability Act Initiative,” which would amend the California Constitution to restrict the ability of the state, local governments, and the electorate to approve or collect taxes, fees, and other revenues. The measure would require voter approval of all state taxes, would further restrict local fee authority by limiting it to the “minimum amount necessary” to provide government services, and would require voter approval for local measures such as franchise fees. Its provisions would make it easier to challenge local revenue measures by increasing the burden of proof on local agencies while disallowing an agency’s characterization of a measure from being considered in court.

Specifically, this proposed initiative has three main components. First, it would expand the definition of a tax to include charges that the state and local governments refer to as fees, such as certain charges that are imposed for a benefit granted to a payer but not granted to those not charged. This would significantly alter the functional definition of taxes and would subject much needed revenue generation tools to greater vote requirements. Current law already imposes regulations on how local governments can levy fees, by requiring charges associated with fees to not exceed the reasonable costs of providing the associated product or service. The revenue that is generated from our taxes and fees goes to funding essential services, such as fire, police, public works, and parks and recreation.

Second, the initiative would establish new stringent approval requirements for increasing state and local taxes, whether sought by the governing body or the electorate. For local governments, any and all tax increases under the expanded definition of taxes mentioned above wou ld first need to be approved by two‐thirds of the legislative body before it is presented to the electorate for consideration. Further, all proposed increases must be placed before voters on a regularly scheduled general election as opposed to a special el ection, except in cases of emergency, which can only be declared under unanimous agreement of the legislative body. Adding these new requirements to raise or impose taxes severely undercuts the ability for local governments to respond to the needs of its r esidents and remain nimble under varying conditions. In the event that there are immediate community needs that cannot conjure unanimous support from the legislative body to address, our communities will suffer.

Office of Mayor Mark Salinas T: 510.583.4340 TTD: 510.247.3340 777 B Street, Hayward, CA 94541 F: 510.583.3601 www.hayward-ca.gov

Third, this initiative would place any new tax or fee increase under extreme legal scrutiny and would invite anyone to take costly and lengthy legal action against a governing body. Specifically, the initiative would require that all new taxes or tax increases include highly technical information regarding its specified use, longevity, and estimated cost to the electorate. The inclusion of this explanatory criterion for the passage of new taxes would significantly increase liability for public officials that could result in significant damages. For instance, the initiative states that state and local governments bear the burden of providing clear and convincing evidence that the levy of a “fee” not subject to the onerous vote threshold requirements is not a tax under the new definition. In the event a private citizen or entity determines that the passage of a new fee or tax was unclear or that the amount is unreasonable, a local government could be subject to long and costly litigation.

Ultimately, tax and fee public policy has always dominated the states’ initiative process for decades.

It’s important to understand that California has been largely divided on the topic because it relies on individual circumstances. As written, this measure will empower the state’s tax reform extremists to decimate the state and local governing processes by fixating on the hyper‐specifics of tax policies, whose revenues are directed to serve the people.

The imposition of taxes and fees to fund public services is an essential tool of government. The COVID pandemic laid bare the necessity of allowing governing bodies at all levels of government to act immediately in order to provide to their communities during times of emergency. The Taxpayer Protection and Government Accountability Act Initiative would impose onerous an d undemocratic restrictions on local governments and local voters that would reduce local revenues by billions every year and would harm the function of virtually all local services. For these reasons, the City of Hayward opposes Initiative 21-0042A1.

Sincerely,

Mark Salinas
Mayor, City of Hayward

Cc: Hayward City Council
Kelly McAdoo, City Manager
Eric Thronson, Deputy Director, Townsend Public Affairs, Inc. 2 1 - 0 0 4 2 Arndt.#/
The Taxpayer Protection and Government Accountability Act [Deleted codified
text is denoted in strikeout. Added codified text is denoted by italics and underline.] Section 1. Title
This Act shall be known, and may be cited as, the Taxpayer Protection and Government Accountability Act.

Section 2. Findings and Declarations
(a) Californians are overtaxed. We pay the nation's highest state income tax, sales tax, and gasoline tax. According to the U.S. Census Bureau, California's combined state and local tax burden is the highest in the nation. Despite this, and despite two consecutive years of obscene revenue surpluses, state politicians in 2021 alone introduced legislation to raise more than $234 billion in new and higher taxes and fees.
(b) Taxes are only part of the reason for California's rising cost-of-living crisis. Californians pay billions more in hidden "fees" passed through to consumers in the price they pay for products, services, food, fuel, utilities and housing. Since 2010, government revenue from state and local "fees" has more than doubled.
(c) California's high cost of living not only contributes to the state's skyrocketing rates of poverty and homelessness, they are the pushing working families and job-providing businesses out of the state. The most recent Census showed that California's population dropped for the first time in history, costing us a seat in Congress. In the past four years, nearly 300 major corporations relocated to other states, not counting thousands more small businesses that were forced to move, sell or close. (d) California voters have tried repeatedly, at great expense, to assert control over whether and how taxes and fees are raised. We have enacted a series of measures to make taxes more predictable, to limit what passes as a "fee," to require voter approval, and to guarantee transparency and accountability. These measures include Proposition 13 (1978), Proposition 62 (1986), Proposition 218 (1996), and Proposition 26 (2010).
(e) Contrary to the voters' intent, these measures that were designed to control taxes, spending and accountability, have been weakened and hamstrung by the Legislature, government lawyers, and the courts, making it necessary to pass yet another initiative to close loopholes and reverse hostile court decisions.

Section 3. Statement of Purpose
(a) In enacting this measure, the voters reassert their right to a voice and a vote on new and higher taxes by requiring any new or higher tax to be put before voters for approval. Voters also intend that all fees and other charges are passed or rejected by the voters themselves or a governing body elected by voters and not unelected and unaccountable bureaucrats.
(b) Furthermore, the purpose and intent of the voters in enacting this measure is to increase transparency and accountability over higher taxes and charges by requiring any tax measure placed on the ballot- 1 ATTACHMENT IV
either at the state or local level-to clearly state the type and rate of any tax, how long it will be in effect , and the use of the revenue generated by the tax.
(c) Furthermore, the purpose and intent of the voters in enacting this measure is to clarify that any new or increased form of state government revenue, by any name or manner of extraction paid directly or indirectly by Californians, shall be authorized only by a vote of the Legislature and signature of the Governor to ensure that the purposes for such charges are broadly supported and transparently debated. (d) Furthermore, the purpose and intent of the voters in enacting this measure is also to ensure that taxpayers have the right and ability to effectively balance new or increased taxes and other charges with the rapidly increasing costs Californians are already paying for housing, food, childcare, gasoline, energy , healthcare, education, and other basic costs of living, and to further protect the existing constitutional limit on property taxes and ensure that the revenue from such taxes remains local, without changing or superseding existing constitutional provisions contained in Section 1{c) of Article XIII A. (e) In enacting this measure, the voters also additionally intend to reverse loopholes in the legislative two thirds vote and voter approval requirements for government revenue increases created by the courts includin g, but not limited to, Cannabis Coalition v. City of Upland, Chamber of Commerce v. Air Resources Board, Schmeer v. Los Angeles County, Johnson v. County of Mendocino, Citizens Assn. of Sunset Beach v.

Orange County Local Agency Formation Commission, and Wilde v. City of Dunsmuir.

Section 4. Section 3 of Article XIII A of the California Constitution is amended to read:

Sec. 3(a} Every levy, charge. or exaction of any kind imposed by state law is either a tax or an exempt charge.
illlJ1l ~ Any change in state statute Jaw which results in any taxpayer paying a new or higher tax must be imposed by an act passed by not less than two-thirds of all members elected to each of the two houses of the Legislature , and submitted to the electorate and approved by a maiority vote, except that no new ad valorem taxes on real property, or sales or transaction taxes on the sales of real property, may be imposed. Each Act shall include:
(A) A specific duration of time that the tax will be imposed and an estimate of the annual amount expected to be derived from the tax.
(BJ A specific and legally binding and enforceable limitation on how the revenue from the tax can be spent.

If the revenue from the tax can be spent for unrestricted general revenue purposes. then a statement that the tax revenue can be spent for "unrestricted general revenue purposes" shall be included in a separate, stand-alone section. Any proposed change to the use of the revenue from the tax shall be adopted by a separate act that is passed by not less than two-thirds of all members elected to each of the two houses of the Legislature and submitted to the electorate and approved by a maiority vote. (2) The title and summary and ballot label or question required for a measure pursuant to the Elections Code shall. for each measure providing for the imposition of a tax, including a measure proposed by an elector pursuant to Article II, include:
{A) The type and amount or rate of the tax;
(BJ The duration of the tax: and
2 ATTACHMENT IV
(CJ The use of the revenue derived from the tax.
(c} Any change in state law which results in any taxpayer paying a new or higher exempt charge must be imposed by an act passed by each of the two houses of the Legislature. Each act shall specify the type of exempt charge as provided in subdivision (e ), and the amount or rate of the exempt charge to be imposed.

Ml._fbt As used in this section and in Section 9 of Article II, "tax" means every aA1f levy, charge, or exaction of any kind imposed by the State state law that is not an exempt charge. e1<eept the follo•Ning:
(e) As used in this section. "exempt charge" means only the following:
(1) a el:iarge imposes fer a s1=1eeifie eenefit eonferreEl or pri'+'ilege granteEl aireetly to tl:ie 13ayor tl:iat is not 1=1ro>viaeEl to tl:iose not et:iargeEI, anEI whiel:i aoes not e1<ceeEl tl:ie reasonal3Ie costs to tl:ie State of eonferring the benefit or granting the pri¥ilege to the 1=1a¥OF.
ill {-2+ A reasonable charge irnposeEl for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the rnasonable actual costs to the State of providing the service or product to the payor. f.11 ~ A charge in,poseEl for the reasonable regulatory costs to the State incident to issuing licenses and permits, performing investigations, inspections, and audits, enforcing agricultural marketing orders, and the administrative enforcement and adjudication thereof. (3) A levy, charge. or exaction collected from local units of government. health care providers or health care service plans that is primarily used by the State of California for the purposes of increasing reimbursement rates or payments under the Medi-Cal program, and the revenues of which are primarily used to finance the non-federal portion of Medi-Cal medical assistance expenditures. (4) A reasonable charge iR'l13oseEl for entrance to or use of state property, or the purchase. rental, or lease of state property, except charges governed by Section 15 of Article XI. (5} A fine, or penalty, or other monetary el:large including any applicable interest for nonpayment thereot imposed by the judicial branch of government or the State, as a result of a state administrative enforcement agency pursuant to adiudicatorv due process, to punish a violation of law. (6} A levy, charge, assessment, or exaction collected for the promotion of California tourism pursuant to Chapter 1 (commencing with Section 13995) of Part 4.7 of Division 3 of Title 2 of the Government Code. flL~Any tax or exempt charge adopted after January 1, 2022 ~, but prior to the effective date of this act, that was not adopted in compliance with the requirements of this section is void 12 months after the effective date of this act unless the tax or exempt charge is reenacted B'l the begislatuFe anel signea into law ey tl:ie <iio¥ernoF in compliance with the requirements of this section. [gl[.JlJG:} The State bears the burden of proving by a preponEleranee oftl:le clear and convincing evidence that a levy, charge, or other exaction is an exempt charge and not a tax. The State bears the burden of proving by clear and convincing evidence that the amount of the exempt charge is reasonable and that the amount charged does not exceed the actual cost of providing the service or product to the payor. ,tR-a-t tl:ie amouRt is RO n,ore tl:ian neeessary to cover the reasonable costs of the go•.•emn,ental actii,•i:t>,• ane 3 ATTACHMENT IV
that the manner in •Nhiel.:i these cests are allecated ts a pa·1er bear a fair er reasenable relatienshi13 ts the 13a·1or's b1:1relens on, or benefits reeei11eel from, the go•.ieFRmental actit.iit'( (2) The retention ofrevenue by, or the payment to. a non-governmental entity ofa levv. charge, or exaction of any kind imposed by state law, shall not be a factor in determining whether the levy. charge, or exaction is a tax or exempt charge.
(3) The characterization of a levy, charge, or exaction of any kind as being voluntary, or paid in exchange for a benefit, privilege, allowance, authorization, or asset, shall not be a factor in determining whether the levy, charge, or exaction is a tax or an exempt charge. /4} The use of revenue derived from the levy, charge or exaction shall be a factor in determining whether the levy, charge, or exaction is a tax or exempt charge. (h) As used in this section:
(1) "Actual cost" of providing a service or product means: (i) the minimum amount necessary to reimburse the government for the cost of providing the service or product to the payor, and {ii) where the amount charged is not used by the government for any purpose other than reimbursing that cost. In computing "actual cost" the maximum amount that may be imposed is the actual cost less all other sources of revenue including, but not limited to taxes, other exempt charges, grants, and state or federal funds received to provide such service or product.
(2) "Extend" includes, but is not limited to, doing any of the following with respect to a tax or exempt charge: lengthening its duration. delaying or eliminating its expiration, expanding its application to a new territory or class ofpayor, or expanding the base to which its rate is applied. (3) "Impose" means adopt, enact, reenact, create, establish, collect, increase or extend. (4) "State law" includes, but is not limited to. any state statute, state regulation, state executive order. state resolution, state ruling, state opinion Jetter, or other legal authority or interpretation adopted, enacted. enforced, issued, or implemented by the legislative or executive branches of state government. "State law" does not include actions taken by the Regents of the University of California, Trustees of the California State University, or the Board of Governors of the California Community Colleges.

Section 5. Section 1 of Article XIII C of the California Constitution is amended, to read:

Sec. 1. Definitions. As used in this article:
{a) "Actual cost" of providing a service or product means: (i) the minimum amount necessary to reimburse the government for the cost of providing the service or product to the payor. and {ii) where the amount charged is not used by the government for any purpose other than reimbursing that cost. In computing "actual cost" the maximum amount that may be imposed is the actual cost less all other sources of revenue including, but not limited to taxes. other exempt charges, grants, and state or federal funds received to provide such service or product.
(b) "Extend" includes, but is not limited to. doing any of the following with respect to a tax. exempt charge, or Article XIII D assessment. fee, or charge: lengthening its duration, delaying or eliminating its expiration. expanding its application to a new territory or class of payor, or expanding the base to which its rate is applied.
4 ATTACHMENT IV
.lfl..W
11 General tax" means any tax imposed for general governmental purposes. (d} "Impose" means adopt, enact, reenact, create, establish, collect, increase, or extend. {clJb} "Local government" means any county, city, city and county, including a charter city or county, any special district, or any other local or regional governmental entity, or an elector pursuant to Article fl or the initiative power provided by a charter or statute . (f) "Local law" includes. but is not limited to, any ordinance, resolution, regulation. ruling, opinion letter, or other legal authority or interpretation adopted, enacted, enforced, issued, or implemented by a local government.
{gl_{t} "Special district" means an agency of the State, formed pursuant to general law or a special act, for the local performance of governmental or proprietary functions with limited geographic boundaries including, but not limited to, school districts and redevelopment agencies. f11L{d} "Special tax" means any tax imposed for specific purposes, including a tax imposed for specific purposes, which is placed into a general fund.
111 i@} As used in this article, and in Section 9 of Article II, "tax" means every aRV-levy, charge, or exaction of any kind, imposed by a local go,;ernmeRt law that is not an exempt charge., exeept tl=le fellowiRg:
(i) As used in this section, "exempt charge" means only the following:
(1) A cl=large imposeel fer a speeifie beAefit eoAferreel or pri,;ilege graAteel eliFeetl')' to tl=le pa1,ior tl=lat is Rot pre1,•ieleel to these Rot ehargea, aA£l which £lees Rot exeeeel tl=le reaseAable costs to tl=le loeal gm,·ernFAeAt of conferriAg the beAefit or graAting tl:1e pri¥ilege.
ill R} A reasonable charge imposes for a specific local government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasoAable actual costs to the local government of providing the service or product. fl1 WA charge im13ose£l for the reasonable regulatory costs to a local government for issuing licenses and permits, performing investigations, inspections, and audits, enforcing agricultural marketing orders, and the administrative enforcement and adjudication thereof.

W {4t A reasonable charge imposeel for entrance to or use of local government property, or the purchase, rental, or lease of local government property.

Ml. fSt A fine, or penalty, or other FAOA@tar,· eharge including any applicable interest for nonpayment thereat imposed by the judicial branch of government or a local government administrative enforcement agency pursuant to adiudicatorv due process, as a res1,1lt of to punish a violation of law. ill -f6t A charge imposed as a condition of property development. No levv, charge, or exaction regulating or related to vehicle miles traveled may be imposed as a condition of property development or occupancy. f.i1 f7t An AssessFAeRts a Rel property relate el fees assessment. fee. or charge imJ;1oseel iA aeeoraanee witl=l the pro¥isio A5 of subject to Article XI 11 D, or an assessment imposed upon a business in a tourism marketing district, a parking and business improvement area, or a property and business improvement district. 5 ATTACHMENT IV
(7) A charge imposed for a specific health care service provided directly to the payor and that is not provided to those not charged. and which does not exceed the reasonable costs to the local government of providing the health care service. As used in this paragraph, a "health care service" means a service licensed or exempt from licensure by the state pursuant to Chapters 1. 1.3, or 2 of Division 2 of the Health and Safety Code.

The local government bears the b1:1rden of proving by a preponderance of the e .. ·ielence that a lew, charge, or other exaction is not a ta1<, that the amo1:1nt is no more than necessaPJ' to cover the reasonable costs of the go•,ernfflental acti•.«ity anel that tJ:ie manner in which those costs are allocateel to a pa•ror bear a fair or reasonable relationship to the pa•ror's blslrdens on, or bene:fits receiveel from, the go1a1ernmental acfa•ity.

Section 6. Section 2 of Article XIII C of the California Constitution is amended to read :

Sec. 2. Local Government Tax Limitation. Notwithstanding any other provision of this Constitution:
(a) Every levy. charge. or exaction of any kind imposed by local law is either a tax or an exempt charge. All taxes imposed by any local government shall be deemed to be either general taxes or special taxes. Special purpose districts or agencies, including school districts, shall have no power to levy general taxes. (b) No local Jaw go,.·ernment whether proposed by the governing body or by an elector, may impose, extend, or increase any general tax unless and until that tax is submitted to the electorate and approved by a majority vote. A general tax shall not be deemed to have been increased if it is imposed at a rate not higher than the maximum rate so approved. The election required by this subdivision shall be consolidated with a regularly scheduled general election for members of the governing body of the local government, except in cases of emergency declared by a unanimous vote of the governing body. (c) An•r general tax imposed, el<tended, or increaseel, •.-.iitho1:1t •.·oter approval, lay any local go,.·ernment on or after Janlslary 1, 1995, ana prior ta the effecti,.·e date of this article, shall contin1:1e to be imposed only if appro,.·ea b1• a majority vote of the voters voting in an election OR the issye of the in:iposition, whicl::i election sl::iall be l::ield witl::iin t•Ne 1•ears ef the effectii.ie date of this article and in com13liance with slslbdi\·isien (b}. {El) No local law government. whether proposed by the governing body or by an elector. may impose, eMteRd, er increase any special tax unless and until that tax is submitted to the electorate and approved by a two-thirds vote. A special tax shall not be deemed to have been increased if it is imposed at a rate not higher than the maximum rate so approved. {d) The title and summary and ballot label or question required for a measure pursuant to the Elections Code shall. for each measure providing for the imposition of a tax, include:
(1) The type and amount or rate of the tax;
(2) the duration of the tax; and
(3) The use of the revenue derived from the tax. If the proposed tax is a general tax. the phrase "for general government use" shall be required, and no advisory measure may appear on the same ballot that would indicate that the revenue from the general tax will. could. or should be used for a specific purpose. (e) Only the governing body of a local government. other than an elector pursuant to Article II or the initiative power provided by a charter or statute. shall have the authority to impose any exempt charge.

The governing body shall impose an exempt charge by an ordinance specifying the type of exempt charge 6 ATTACHMENT IV
as provided in Section l(i) and the amount or rate of the exempt charge to be imposed. and passed by the governing body. This subdivision shall not apply to charges specified in paragraph (7) of subdivision (i) of Section 1.
ff) No amendment to a Charter which provides for the imposition, extension, or increase of a tax or exempt charge shall be submitted to or approved by the electors. nor shall any such amendment to a Charter hereafter submitted to or approved by the electors become effective for any purpose. (q) Any tax or exempt charge adopted after January 1, 2022, but prior to the effective date of this act, that was not adopted in compliance with the requirements of this section is void 12 months after the effective date of this act unless the tax or exempt charge is reenacted in compliance with the requirements of this section.
{h)(1) The focal government bears the burden of proving by clear and convincing evidence that a levy, charge or exaction is an exempt charge and not a tax. The local government bears the burden of proving by clear and convincing evidence that the amount of the exempt charge is reasonable and that the amount charged does not exceed the actual cost of providing the service or product to the payor. (2} The retention of revenue by, or the payment to, a non-governmental entity of a levy. charge, or exaction of any kind imposed by a local law, shall not be a factor in determining whether the levy, charge, or exaction is a tax or exempt charge.
(3) The characterization of a levy. charge. or exaction of any kind imposed by a local law as being paid in exchange for a benefit. privilege, allowance, authorization, or asset, shall not be factors in determining whether the levy, charge, or exaction is a tax or an exempt charge. (4) The use of revenue derived from the levy, charge or exaction shall be a factor in determining whether the levy, charge, or exaction is a tax or exempt charge.

Section 7. Section 3 of Article XIII D of the California Constitution is amended, to read:

Sec. 3. Property Taxes, Assessments, Fees and Charges Limited (a) No tax, assessment, fee, 6f charge, or surcharge, including a surcharge based on the value ofpropertv, shall be assessed 13y a Ry ageRC'f upon any parcel of property or upon any person as an incident of property ownership except:
(1) The ad valorem property tax impeseEI p1::1rsYaRt te described in Section 1(a) of Article XIII and Section 1/a) of Article XIII A, and described and enacted pursuant to the voter approval requirement in Section 1/b) Q[Article XII I A.
(2) Any special non-ad valorem tax receiving a two-thirds vote of qualified electors pursuant to Section 4 of Article XIII A, or after receiving a two-thirds vote of those authorized to vote in a community facilities district by the Legislature pursuant to statute as it existed on December 31, 2021. (3) Assessments as provided by this article.
(4) Fees or charges for property related services as provided by this article. 7 ATTACHMENT IV
(b) For purposes of this article, fees for the provision of electrical or gas service shall not be deemed charges or fees imposed as an incident of property ownership.

Section 8. Sections 1 and 14 of Article XIII are amended to read:

Sec. 1 Unless otherwise provided by this Constitution or the laws of the United States:
(a) All property is taxable and shall be assessed at the same percentage of fair market value. When a value standard other than fair market value is prescribed by this Constitution or by statute authorized by this Constitution, the same percentage shall be applied to determine the assessed value. The value to which the percentage is applied, whether it be the fair market value or not, shall be known for property tax purposes as the full value.
(b) All property so assessed shall be taxed in proportion to its full value. (c) All proceeds from the taxation of property shall be apportioned according to law to the districts within the counties.

Sec. 14. All property taxed by state or local government shall be assessed in the county, city, and district in which it is situated. Notwithstanding any other provision of/aw, such state or local property taxes shall be apportioned according to law to the districts within the counties.

Section 9. General Provisions
A. This Act shall be liberally construed in order to effectuate its purposes.

B. (1) In the event that this initiative measure and another initiative measure or measures relating to state or local requirements for the imposition, adoption, creation, or establishment of taxes, charges, and other revenue measures shall appear on the same statewide election ballot, the other i nitiative measure or measures shall be deemed to be in conflict with this measure. In the event that this initiative measure receives a greater number of affirmative votes, the provisions of this measure shall prevail in their entirety, and the provisions ofthe other initiative measure or measures shall be null and void. (2) In furtherance of this provision, the voters hereby declare that this measure conflicts with the provisions of the "Housing Affordabili ty and Tax Cut Act of 2022" and "The Tax Cut and Housing Affordability Act," both of which would impose a new state property tax (called a "surcharge") on certain real property, and where the revenue derived from the tax is provided to the State, rather than retained in the county in which the property is situated and for the use of the county and cities and districts within the county, in direct violation of the provisions of this initiative. (3) If this initiative measure is approved by the voters, but superseded in whole or in part by any other conflicting initiative measure approved by the voters at the same election, and such conflicting initiative is later held invalid, this measure shall be self-executing and given full force and effect.

C. The provisions of this Act are severable. If any portion, section, subdivision, paragraph, clause, sentence, phrase, word, or application of this Act is for any reason held to be invalid by a decision of any court of competent jurisdiction, that decision shall not affect the validity of the remaining portions of this Act. The People of the State of California hereby declare that they would have adopted this Act and each and every portion, section, subdivision, paragraph, clause, sentence, phrase, word, and application not 8 ATTACHMENT IV
declared invalid or unconstitutional without regard to whether any portion of this Act or application thereof would be subsequently declared invalid.

D. If this Act is approved by the voters of the State of California and thereafter subjected to a legal challenge alleging a violation of state or federal law, and both the Governor and Attorney General refuse to defend this Act, then the following actions shall be taken:
(1) Notwithstanding anything to the contrary contained in Chapter 6 of Part 2 of Division 3 ofTitle 2 of the Government Code or any other law, the Attorney General shall appoint independent counsel to faithfully and vigorously defend this Act on behalf of the State of California. (2) Before appointing or thereafter substituting independent counsel, the Attorney General shall exercise due diligence in determining the qualifications of independent counsel and shall obtain written affirmation from independent counsel that independent counsel will faithfully and vigorously defend this Act. The written affirmation shall be made publicly available upon request. (3) A continuous appropriation is hereby made from the General Fund to the Controller, without regard to fiscal years, in an amount necessary to cover the costs of retaining independent counsel to faithfully and vigorously defend this Act on behalf of the State of California. (4) Nothing in this section shall prohibit the proponents of this Act, or a bona fide taxpayers association, from intervening to defend this Act.
9 ATTACHMENT IV

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: CONS 23-182
DATE: April 11, 2023
TO: Mayor and City Council
FROM: Director of Public Works

SUBJECT
Adopt a Resolution Approving Plans and Specifications and Calling for Bids for Traffic Signal Modification on Jackson Street as Part of the Route 238 Corridor Improvement Phase 2 Project No. 05270

RECOMMENDATION
That the Council adopts a resolution (Attachment II) approving the plans and specifications, and calling for bids to be received on May 9, 2023, for the Traffic Signal Modification at Jackson Street, which will take place as part of the Route 238 Corridor Improvement Phase 2 Project No. 05270.

SUMMARY
This Project proposes signal upgrade and improvements, particularly for enhancing traffic flow, which includes installing new controllers, Sydney Coordinated Adaptive Traffic Systems (SCATS), and video detection systems, at these four intersections:

1. Jackson St/Amador St-Cypress Ave;

2. Jackson St/Soto Rd;

3. Jackson St/Winton Ave; and

4. Jackson St/Meek Ave-Silva Ave.

This report requests approval of the plans and specifications and calling for bids for the project.

Funding for this project was obtained through a cooperative agreement with the California Department of Transportation (Caltrans) for a total of $531,000. The total Project cost is estimated at $531,000, which includes $352,000 for construction with an additive bid alternate item should bidding allow.

ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
Attachment III Location Map
CITY OF HAYWARD Printed on 4/7/2023Page 1 of 1
powered by Legistar™

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DATE: April 11, 2023

TO: Mayor and City Council

FROM: Director of Public Works

SUBJECT: Adopt a Resolution Approving Plans and Specifications and Calling for Bids for Traffic Signal Modification on Jackson Street as Part of the Route 238 Corridor Improvement Phase 2 Project No. 05270

RECOMMENDATION

That the Council adopts a resolution (Attachment II) approving the plans and specifications, and calling for bids to be received on May 9, 2023, for the Traffic Signal Modification at Jackson Street, which will take place as part of the Route 238 Corridor Improvement Phase 2 Project No. 05270.

SUMMARY

This Project proposes signal upgrade and improvements, particularly for enhancing traffic flow, which includes installing new controllers, Sydney Coordinated Adaptive Traffic Systems (SCATS), and video detection systems, at these four intersections:

1. Jackson St/Amador St-Cypress Ave;

2. Jackson St/Soto Rd;

3. Jackson St/Winton Ave; and

4. Jackson St/Meek Ave-Silva Ave.

This report requests approval of the plans and specifications and calling for bids for the project. Funding for this project was obtained through a cooperative agreement with the California Department of Transportation (Caltrans) for a total of $531,000. The total Project cost is estimated at $531,000, which includes $352,000 for construction with an additive bid alternate item should bidding allow.

BACKGROUND

The Local Alternative Transportation Improvement Plan (LATIP) was approved by Caltrans on November 19, 2009, for the purpose of supporting the Central Alameda County LATIP to fill the highway transportation infrastructure needs that were created when the Route 238 Hayward Bypass project was not pursued. The California Transportation Commission (CTC) approved the LATIP resolution on June 30, 2010.

Projects included in the LATIP are funded from proceeds of the sale of the properties

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originally purchased for the now defunct Hayward Bypass Project. One of the top priority projects in the LATIP was the Route 238 Corridor Improvement Project in the City of Hayward, which was programmed with a total of $30 million in LATIP funds. This project included the design and construction of the Mission Boulevard Corridor Improvement project, which was to be constructed in the three phases described as follows:

Phase 1 included roadway and street improvements on Mission Boulevard (SR-238) from A Street to Industrial Parkway, Jackson Street (SR-92) from Watkins Street to Mission Boulevard. The CTC allocated $8.1 million LATIP funds in August 2013 for Phase 1 construction, which was completed in January 2014.

Phase 2 included roadway and street improvements on Mission Boulevard (SR-238) from Industrial Parkway to the south City limit and Jackson Street (SR-92) from Watkins Street to Santa Clara Street. Improvements on Jackson Street was limited to the addition of the SCATS to the traffic signals at the intersections on Jackson Street within the project limits.

The CTC allocated $2 million for the design phase for Phase 2 and Phase 3 (preliminary design) in August 2014, and $19.9 million for the construction phase in October 2017.

Construction for this segment on Mission Boulevard was completed in April 2021.

Phase 3 improvements are on Mission Boulevard (SR-185) from A Street to the north City limit. This phase of the project is currently in the bid process and anticipated to begin construction this summer and will utilize local funds.

Due to time constraints, the Jackson Street project was taken out from the Mission Blvd project - Corridor Improvements Phase 2 project. Caltrans has since asked the City to complete this portion of work as it was in the original scope. On June 28, 2022, Council adopted a resolution authorizing the City Manager to execute a cooperative agreement with Caltrans to implement this signal modification to alleviate the existing traffic queue on Jackson Street and for the reimbursement of $531,000 from the LATIP funds.

DISCUSSION

This project proposes signal upgrade and improvements, particularly for enhancing traffic flow, which includes installing new controllers, Sydney Coordinated Adaptive Traffic Systems (SCATS), and video detection systems, at these four intersections:

1. Jackson St/Amador St-Cypress Ave;

2. Jackson St/Soto Rd;

3. Jackson St/Winton Ave; and

4. Jackson St/Meek Ave-Silva Ave.

Modifying the existing signal operations with new video detection and SCATS will reduce traffic delays and queuing at the intersections, which in turn will also improve pedestrian and bicycle safety. Upgrading existing communication between the four intersections will reduce traffic queueing and improve traffic flow during peak hour traffic.

Staff was successful in obtaining a cooperative agreement with Caltrans for improvements to the State Highway System per the California Streets and Highways Code Sections 114 and

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130. Caltrans will fund the City with $531,000 from LATIP funds, which covers 100% of the construction and engineering services/staff cost for the Traffic Signal Modification for the Jackson Street Project. The total Project cost is estimated at $531,000, which includes $352,000 for construction and an additive bid alternate item should bidding allow. The bid alternate item includes battery backup systems for the cabinets. However, the bid alternative item is contingent on the actual bids received and may be excluded from the project due to the cooperative agreement limit of $531,000.

This 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.

On November 15, 2016, Council passed a resolution authorizing a Community Workforce Agreement (CWA) with the Alameda County Building Trades Council (BTC), which applies to City projects with construction costs of $1,000,000 or more. The agreement requires contractors to use local union hiring halls, encourages contractors to employ Hayward residents or Hayward Unified School District graduates, and requires hired workers to pay union dues and other benefit trust fund contributions, etc. Because the construction cost estimate for this Project is less than $1,000,000, the CWA agreement does not apply to this project.

ECONOMIC IMPACT

Improvements to the City’s traffic signal system make the overall transportation system more efficient which may result in positive economic benefits for businesses around the area.

FISCAL IMPACT

This work has an estimated cost of $531,000 and will be 100% reimbursed by LATIP funds, as stipulated in the Caltrans Cooperative Agreement. The Route 238 Corridor Improvement Phase 2 Project No. 05270 in Route 238 Corridor Improvement Fund 410 has sufficient funding to cover the upfront costs related to this effort.

The estimated project costs are as follows:

Construction Contract $352,000

Contingencies 35,000
Design and Administration 54,000
Inspection, Survey, and CM 90,000
TOTAL $531,000

STRATEGIC ROADMAP

This agenda item supports the Strategic Priority of Invest in Infrastructure.

SUSTAINABILITY FEATURES

Improvements to the traffic signals will reduce environmental impacts like greenhouse gas

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emissions and enhance the overall quality of life for residents and businesses.

This project is categorically exempt from environmental review pursuant to Section 15301(c) of the CEQA Guidelines because it is a project consisting of repair, maintenance or minor alteration of existing structures or facilities and involves negligible or no expansion of the existing use.

PUBLIC CONTACT

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

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

SCHEDULE

The estimated schedule for this project is as follows:

Call for Bids April 11, 2023
Open Bids May 9, 2023
Award Construction Contract June 6, 2023
Begin Construction Mid July 2023
Complete Construction Mid September 2023

NEXT STEP

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

Prepared by: Kevin Yoshiki, 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. 23-
Introduced by Council Member _

RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND CALL FOR BIDS

FOR TRAFFIC SIGNAL MODIFICATION AT JACKSON STREET PROJECT, PROJECT NO. 05270

WHEREAS, those certain plans and specifications for Traffic Signal Modification at Jackson Street Project No. 05270 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 therefor 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 May 9, 2023, and immediately thereafter publicly opened and declared by the City Clerk in the Rotunda, First Floor, at City Hall.

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.

BE IT FURTHER RESOLVED 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.

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ATTACHMENT II

IN COUNCIL, HAYWARD, CALIFORNIA
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

TRAFFIC SIGNAL UPGRADE

JACKSON STREET
PROJECT NO. 05270

LOCATION MAP

ATTACHMENT III

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: CONS 23-184
DATE: April 11, 2023
TO: Mayor and City Council
FROM: Assistant City Manager

SUBJECT
Adopt a Resolution Approving the FY 2024 Measure B/BB Annual Paratransit Program Plan and Authorizing the City Manager to Execute FY 2024 Service Agreements for the Continued Provision of Measure B/BB Funded Paratransit Services

RECOMMENDATION
That Council:

1. Adopts a resolution (Attachment II) authorizing the FY 2024 Measure B/BB Annual Paratransit Program Plan, including the continued provision of the Hayward Operated Paratransit (HOP) programs; and

2. Authorizes the City Manager to execute FY 2024 service agreements for the continued provision of Measure B/BB funded paratransit services.

SUMMARY
This report provides an overview of the Hayward Operated Paratransit program’s FY 2024 Annual Paratransit Program Plan, estimated program costs, and next steps. The Measure B/BB funding recommendations are summarized by category and service provider in Table 1 below.

Table 1. FY 2024 Estimated Program Cost

CATEGORY AMOUNT
Program Administration $500,000
Research, Marketing & Data Collection $125,000
Service Providers/Program
RydeTrans (Group Trips) $75,000
ASEB (Specialized Transportation) $75,000
CRIL (Travel Training) $50,000
HOP Means-Based Fare Program $50,000
SOS Meals on Wheels (Meal Delivery) $100,000
LIFE ElderCare (Door-through-Door) $154,574
Eden I&R (On-demand rides, includes ride subsidies) $272,619 Safe Route for Seniors Project (Capital) $750,000
HOP Program Evaluation Pilot(s) $100,000
Total $2,252,193
CITY OF HAYWARD Printed on 4/7/2023Page 1 of 2
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ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
Attachment II Funding Recommendations
Attachment IV Paratransit Program Plan Application
CITY OF HAYWARD Printed on 4/7/2023Page 2 of 2
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DATE: April 11, 2023

TO: Mayor and City Council

FROM: Assistant City Manager

SUBJECT: Adopt a Resolution Approving the FY 2024 Measure B/BB Annual Paratransit Program Plan and Authorizing the City Manager to Execute FY 2024 Service Agreements for the Continued Provision of Measure B/BB Funded Paratransit Services

RECOMMENDATION

That Council:

1. Adopts a resolution (Attachment II) authorizing the FY 2024 Measure B/BB Annual Paratransit Program Plan, including the continued provision of the Hayward Operated Paratransit (HOP) programs; and

2. Authorizes the City Manager to execute FY 2024 service agreements for the continued provision of Measure B/BB funded paratransit services.

SUMMARY

This report provides an overview of the Hayward Operated Paratransit program’s FY 2024 Annual Paratransit Program Plan, estimated program costs, and next steps. The Measure B/BB funding recommendations are summarized by category and service provider in Table 1 below.

Table 1. FY 2024 Estimated Program Cost

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BACKGROUND

The City of Hayward submits an Annual Paratransit Program Plan to the Alameda County Transportation Commission (Alameda CTC) detailing the proposed parameters of paratransit service for seniors (70+) and people with certified disabilities. The Hayward Operated Paratransit (HOP) program, administered by the City’s Community Services Division, provides paratransit and related services to eligible enrolled riders and their attendants who live in Hayward and the surrounding unincorporated areas.

In 2000, Alameda County voters approved the reauthorization of Measure B, the half -cent transportation sales tax, to deliver essential transportation services and improvements. In November 2014, Alameda County voters approved Measure BB, authorizing the extension and augmentation of Measure B to invest in capital projects addressing local transportation needs and programs that improve countywide transportation systems through March 31, 2045. The full one-cent sales tax authorized by Measure BB will begin April 1, 2022, and will extend through March 31, 2045. The Hayward Operated Paratransit (HOP) program is funded in i ts entirety by Alameda County Measure B/BB Direct Local Distribution, administered by Alameda County Transportation Commission (Alameda CTC).

In February each year, the City of Hayward submits an Annual Paratransit Program Plan to the Alameda CTC detailing the proposed parameters of eligible paratransit service for seniors (70+) and people with certified disabilities. Alameda CTC staff reviews the City’s program plans and provides initial feedback. In April, the proposed Annual Paratransit Program Plan is presented to the Council for review and approval. The finalized plan is presented to the Alameda CTC’s Paratransit Advisory and Planning Committee (PAPCO) in late April.

DISCUSSION

East Bay Paratransit (operated by AC Transit and BART) is the primary paratransit service for Alameda County residents. HOP is designed to complement and supplement the East Bay Paratransit service when it is unable to provide service or meet the needs of HOP participants.

As a City program, HOP is uniquely positioned to extend flexible and creative solutions to meet the unique needs of its riders.

The HOP engages community partners to carry out all services through the Annual Paratransit Program Plan subject to Measure B/BB funding availability. The following provides a summary of the partners that assist the City in implementing the HOP:

Transportation for Seniors
The HOP partners with Eden I&R (Eden) to offer transportation network company (TNC) based rides, such as Lyft Concierge and Uber Health, to eligible residents. Eden arranges the ride with the TNC on behalf of clients through a web-based platform, eliminating the need for a smartphone to access the service. Pre-scheduled, accessible group trips are offered, in partnership with RydeTrans (formerly A-Paratransit), to enrolled HOP riders. Group trips offer participants social outings to reduce isolation.

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Volunteer Driver Program
LIFE Eldercare matches screened volunteers driving their own personal vehicles with senior and disabled adults. The volunteers provide “door-to-door” service, acting as attendants who help with medical appointments, shopping, various errands, and other mobility-related services.

Specialty Transit
Alzheimer’s Services of the East Bay (ASEB) provides services for individuals with dementia and their families. ASEB provides Adult Day Care, family support, and education to enable individuals to remain living in their homes for as long as possible. ASEB hires specially trained drivers to operate lift-equipped vehicles to provide transportation to its Adult Day Care program.

Travel Trainer
Community Resources for Independent Living (CRIL) provides travel training workshops to people with mobility challenges through excursions on various modes of Bay Area transportation (including BART, AC Transit, and the HOP).

Meals-on-Wheels
Service Opportunities for Seniors (SOS) Meals on Wheels provides homebound seniors with nutritious meals delivered by volunteer drivers.

Capital Project
The Safe Routes for Seniors (SR4S) Program is a collaborative effort between the City’s Community Services Division, Public Works’ Transportation Division, local senior housing facilities, senior centers, and community-based organizations. Through these partnerships, the City is working to identify areas in Hayward to focus accessibility and walkability improvements.

More detailed information about each of these programs is available in Attachment IV.

Existing Project Updates

1. VIP ZIP program: In July 2020, the HOP’s VIP ZIP program administrator transitioned to Eden I&R (Alameda County 2-1-1), a provider that has experience in operating as a call center and has over forty years of experience serving Alameda County. Eden I&R has been essential during the COVID-19 pandemic, often connecting riders to other County resources. Since FY 2022, HOP and Eden I&R piloted an extension of the VIP ZIP program to enhance the reliability of wheelchair-accessible vehicles (WAV) available for riders who require WAV rides through the VIP ZIP program.

Status: Continuing in FY 2023-2024

2. Safe Routes for Seniors Program: In FY 2020, the HOP executed an MOU with the Public Works Department to allocate Measure BB funds for Americans with Disabilities Act (ADA) street improvements at or near senior/disabled housing developments. On

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January 18, 20221, Council approved the plans and specifications, and call for bids for the Safe Routes for Seniors (SR4S) Project. The Project consists of streetscape improvements including the expansion of ADA curb-cuts and sidewalk bulb-outs (widening) to accommodate various mobility devices at four intersections located in the Downtown Hayward area. The construction contract was awarded in February 2022. The estimated construction duration was 150 days, with a tentative completion date in FY 2023. This project faced delays due to supply chain issues and a wet winter season. Construction will continue into the summer of 2023. Simultaneously, in FY 2024 HOP will support the design phase of a second location in South Hayward.

Status: Continuing in FY 2023-2024

3. Travel Trainer: At the onset of the pandemic, CRIL paused its in-person travel training workshops. Travel training is mainly provided virtually and through telephone support.

Prior to the end of state and local public health emergencies, CRIL had begun to offer in- person travel training by appointment. Staff are working with consultants to evaluate CRIL’s ability to provide adequate service to the Hayward community and may consider additional partnerships to meet current needs.

Status: Continuing in FY 2023-2024

4. Group Trips: HOP had suspended group trips based on the County’s guidelines and recommendations for social distancing. Currently, HOP is working with consultants and conferring with neighboring jurisdictions to prepare a plan to resume services. Notice will be provided to HOP participants when services become available.

Status: Continuing in FY 2023-2024

5. Consulting Services: As part of the FY 2023 Program Plan, Council authorized funding for consulting services to conduct a comprehensive program evaluation to address ongoing challenges and potential long-term impacts of COVID-19 on public transportation and paratransit services.

Status: Continuing in FY 2023-2024

COVID-19 Program Impacts
While COVID-19 has impacted many programs and will likely have long-term implications on service delivery, HOP has noticed an increase in the demand for transportation services over the last year. While many seniors, identified as individuals who are at higher risk for serious illness, remain at home and practice social distancing, there has been an increase in new registrants and many existing riders who are resuming some level of travel. As part of service delivery planning, staff will take lessons learned from the pandemic to better inform future programming and build in ways to apply adaptive service delivery models to respond to potential impacts.

FY 2022 Outcomes

1 January 18, 2022, City Council Staff Report
https://hayward.legistar.com/LegislationDetail.aspx?ID=5382580&GUID=15E9CEE7-48E8-4D11-832D- 54CC341FC16E&Options=&Search=

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In FY 2022, the City awarded $507,579 to local non-profits and paratransit service partners that provide services to HOP participants. Council also approved the allocation of an additional $1,000,000 toward infrastructure improvements through the SR4S program. In FY 2022, the HOP program served 2,281 individuals, providing participants over 10,000 rides and delivering over 108,926 meals to homebound seniors.

Future Projects
In FY 2023, Council authorized funding to engage a consultant to conduct a comprehensive evaluation of HOP services. On September 20, 20222, Council authorized a professional services agreement with Nelson Nygaard to perform this evaluation. The purpose of this evaluation is to identify service gaps, outreach opportunities, and ways to improve services in order to meet the needs of seniors and individuals with disabilities in Hayward and the surrounding unincorporated areas. This process will include an evaluation of existing conditions, service provider input, public engagement, and the creation of a temporary technical advisory committee comprised of eligible seniors and individuals with disabilities, current HOP riders, service partners, and several senior living facilities staff. City staff is proposing to allocate a portion of the FY 2024 program budget towards the implementation of HOP program improvements in the form of various pilot programs. There is sufficient funding to support the planning and implementation of future service improvement efforts.

ECONOMIC IMPACT

The HOP is supported exclusively by Alameda County Measure B/BB funds. The service offers cost-effective transportation alternatives for eligible residents on fixed incomes. Caregivers also benefit when loved ones have reliable transportation options.

STRATEGIC ROADMAP

This agenda item supports the Strategic Priority of Improve Infrastructure. Specifically, this item relates to improving access and mobility and the implementation of the following project:

Project 8, Parts 8.e, 8.f: Implement the Bike and Ped Master Plan Assess Safe Route for Seniors in the downtown area
Implement Route for Seniors in the downtown area

Through the joint efforts of HOP and Hayward Public Works, the SR4S project will address the need for streetscape improvements to expand accessibility for seniors starting in the Downtown area with plans to implement phase 2 in the Tennyson neighborhood. As a result, these modifications will improve accessibility and walkability for all.

FISCAL IMPACT

2 September 20, 2022, City Council Staff Report and Attachments https://hayward.legistar.com/LegislationDetail.aspx?ID=5844300&GUID=E15BD613-3440-4CD0-A242- 3B2771713769&Options=&Search=

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The proposed FY 2024 Annual Paratransit Program Plan has no impact to the City’s General Fund. The program costs, including City staff and administrative costs, are entirely offset by the City’s Measure B reserves and Measure BB Paratransit special revenue funds derived from Measure B/BB sales tax revenues. There is sufficient fund balance to support the FY 2024 estimated program costs. Funding details can be found in Attachment III.

SUSTAINABILITY FEATURES
Several paratransit programs promote the use of public transportation and vehicle sharing, thereby reducing the number of vehicles on the road, as well as associated emissions.

PUBLIC CONTACT
The Paratransit Program Plan is typically presented at various organizations that serve seniors and people with disabilities throughout the year. Public feedback is received, and based on the feedback collected, staff evaluates the program and recommends changes in order to meet the unique needs of the community. On October 19, 2022, staff made an in-person public presentation at the Baywood Court Senior Community and received feedback on the HOP program. Staff will work with Nelson Nygaard to continue to conduct community outreach and engage stakeholders prior to the development and implementation of program changes. Some planned efforts include tabling at local farmer’s markets within the service area (Hayward, San Leandro, Castro Valley), presentations at local libraries, and presentations at senior living facilities and senior centers that have reopened to the public.

The Annual Program Plan will also be posted on the City’s website for viewing. Interested parties will have the opportunity to provide feedback up until April 15, 2023, at which time PAPCO will review and act on the plan.

NEXT STEPS
Staff recommends that Council adopts the attached resolution approving the FY 2024 Annual Paratransit Program Plan and authorizing the City Manager to negotiate and execute all agreements necessary for program implementation. Should Council adopt the resolution, staff will meet with representatives from each contracting agency to facilitate contract execution so that there will be a continuation of delivery of Paratransit services.

Prepared by: A. Alejandro Mora, Community Programs Specialist Carol Lee, Management Analyst

Recommended by: Jessica Lobedan, Community Services Manager Regina Youngblood, Assistant City Manager

Approved by:
_________________________________
Kelly McAdoo, City Manager

ATTACHMENT II

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HAYWARD CITY COUNCIL

RESOLUTION NO. 23-_____

Introduced by Council Member __________

RESOLUTION AUTHORIZING THE CITY MANAGER TO IMPLEMENT AN

ANNUAL PARATRANSIT PLAN AND NEGOTIATE AND EXECUTE ALL

DOCUMENTS RELATED TO AND IN SUPPORT OF PARATRANSIT ACTIVITIES

INCLUDING THE ADMINISTRATION OF THE HAYWARD OPERATED

PARATRANSIT (HOP) PROGRAM

WHEREAS, voters approved the 20 -year Measure BB half -cent transportation sales tax on November 4, 2014 and the funding agreement of the measure between the Alameda County Transportation Commission and the City of Hayward; and

WHEREAS, the full one -cent sales tax authorized by Measure BB will begin April 1, 2022, and will extend through March 31, 2045; and

WHEREAS, the Hayward Operated Paratransit (HOP) program is funded in its entirety by Alameda County Measure B/BB Direct Local Distribution, administered by Alameda County Transportation Commission (Alameda CTC); and

WHEREAS, East Bay Paratransit (o perated by AC Transit and BART) is the primary paratransit service for Alameda County residents; and

WHEREAS, the City ’s Hayward Operated Paratransit program is designed to complement and supplement the East Bay Paratransit service when it is unable to pr ovide service or meet the needs of HOP participants who are seniors (70+) and people with certified disabilities; and

WHEREAS, HOP engages community partners to carry out all services through the Annual Paratransit Program Plan subject to Measure B/BB funding availability; and

WHEREAS, the City of Hayward submits an Annual Paratransit Program Plan to the Alameda CTC detailing the proposed parameters of eligible paratransit service for seniors (70+) and people with certified disabilities.

ATTACHMENT II

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NOW, THE REFORE BE IT RESOLVED that the Hayward City Council authorizes and directs the City Manager on behalf of the City of Hayward to implement the FY 202 4 Annual Paratransit Plan submitted to the Alameda County Transportation Commission in according with the terms of the City’s contract with the Alameda County Transportation Commission (ACTC) for Measure B/BB paratransit funds.

BE IT FURTHER RESOLVED that the City Manager shall have the authority to approve and amend current service contracts and execute purchase orders as necessary to deliver the service to Central Alameda County participants.

IN COUNCIL, HAYWARD, CALIFORNIA _______________________, 2023

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
Hayward Operated Paratransit Program
FY 2024 Measure B/BB Annual Paratransit Program Funding Recommendations

ATTACHMENT III
CATEGORY AGENCY PROGRAM FY23 FUNDING FY 2024 REQUESTS FY 2024 RECOMMENDED Management/Overhead City of Hayward Program Administration $500,000 $500,000 $500,000 Customer Service/Outreach City of Hayward Research, Marketing & Data Collection $175,000 $125,000 $125,000 Group Trips Program RydeTrans (A-Paratransit) Group Trips $75,000 $75,000 $75,000 Specialized Accessible Van
Service Alzheimer’s Services of the East Bay (ASEB) Specialized Transportation $75,000 $108,360 $75,000 Mobility Management and/or
Travel Training
Community Resources for Independent Living
(CRIL) Travel Training $50,000 $50,000 $50,000
Meal Delivery SOS Meals on Wheels Meal Delivery $90,000 $100,000 $100,000 Door-through-Door/Volunteer
Driver Program LIFE ElderCare Door-through-Door $154,754 $154,574 $154,574 Means-Based Fare Programs City of Hayward Means-Based Fare Program $75,000 $50,000 $50,000 Same-Day Transportation
Program Eden Information & Referral VIP ZIP (On-demand rides in partnership with TNCs) $272,624 $272,619 $272,619 HOP Program Evaluation Pilot(s) TBD HOP Evaluation Pilot(s) $0 $100,000 $100,000 Capital Expenditure City of Hayward (Public Works Transportations Division) Safe Route for Seniors Project (Capital) $750,000 $750,000 $750,000 $2,217,378 $2,285,553 $2,252,193TOTAL

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FY 2023-24 Annual Paratransit Program Plan
Application for Measure BB Funding
The Alameda County Transportation Commission (Alameda CTC) requires recipients of Measure BB Direct Local Distribution (DLD) paratransit funding to participate in an Annual Program Plan Review process. Recipients are required to complete and submit a program plan application to Alameda CTC that outlines their prior expenditures and anticipated revenues and expenditures related to delivering paratransit services to older adults and people with disabilities in Alameda County.

Requirements and Instructions
The Annual Paratransit Program Plan Application includes the following documents:

1. Paratransit Program Plan Application (this MS Word document)

2. Paratransit Program Plan Attachments A-D (Tables A, B, C, and D of the provided MS Excel workbook) NOTE: The FY 2023-24 Program Plan Excel workbook contains a tab to report on FY 2021-22 performance and budget (Attachment Table A).

The FY 2021-22 program information entered into Table A will be used to monitor program performance and, where applicable, should align with program information included in the FY 2021-22 compliance report.

3. References:
a. FY 2023-24 Measure BB Paratransit DLD Revenue Projections, (distributed to ParaTAC, January 2023)
b. Alameda CTC Special Transportation for Seniors and People with Disabilities (Paratransit) Implementation Guidelines and Performance Measures, revised February 2023 – Draft, pending PAPCO approval on February 27, 2023)
c. Alameda CTC Timely Use of Funds Policy, adopted December 2015

Submit the Word and Excel files listed above electronically via email by February 28, 2023, to Krystle Pasco at [email protected]
.

Be sure to include your agency name and FY 23-24 in the file name of both the Word document and the Excel workbook (e.g., Albany_FY23-24_Paratransit_Program_ Application.doc).

If you have questions, please contact Krystle Pasco via email or phone at (510) 208-7467 or [email protected]
.

ATTACHMENT IV

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Alameda CTC Annual Paratransit Program Plan Application Application Period: July 1, 2023 - June 30, 2024

FY 2023-24 Annual Paratransit Program Plan Application
Due by February 28, 2023

CONTACT INFORMATION
Agency:

Contact Name:

Title:

CITY OF HAYWARD

CAROL LEE

MANAGEMENT ANALYST
Phone Number: 510-583-5343
E-mail Address: [email protected]
Date Submitted: February 28, 2023

TYPES OF SERVICES PROVIDED

1. What type of paratransit projects and programs will be funded, fully or partially, with Measure BB Direct Local Distribution (DLD), Measures B and BB reserves, and/or paratransit discretionary grant funds? To answer this question, complete Attachment Table B (Table B tab of the Microsoft Excel workbook).

Below is a list of the types of services/programs that are eligible for Alameda CTC funding. For detailed information about these eligible services, including minimum service requirements and performance measures, refer to the Alameda CTC’s Special Transportation for Seniors and People with Disabilities (Paratransit) Implementation Guidelines, revised February 2023 – Draft, pending PAPCO approval on February 27, 2023 (provided with the application materials). • Management/Overhead: Program oversight, planning, budgeting, participation in regional/countywide meetings. Include admin/labor even if it is paid by the City/transit agency for accurate reporting of full program expenses.
• Customer Service/Outreach: Activities associated with educating consumers about services that are available to them, answering questions from consumers and taking, tracking and responding to complaints and commendations. Include costs even if paid by the City/transit agency for accurate reporting of full program expenses.
• ADA Paratransit: Paratransit services provided by fixed-route transit operators to fulfill requirements under the Americans with Disabilities Act (ADA).

ATTACHMENT IV

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Alameda CTC Annual Paratransit Program Plan Application Application Period: July 1, 2023 - June 30, 2024

• Same-Day Transportation Service: Provides a same day, curb-to-curb service intended for situations when consumers cannot make their trip on a pre-scheduled basis; allows eligible consumers to use taxis or Transportation Network Companies (TNCs) (at program discretion) at a reduced fare.

Important Implementation Guidelines requirements: Eligible populations include: People 18 and above with disabilities who are unable to use fixed route services. Cities may, at their discretion, also provide services to consumers with disabilities under the age of

18. Seniors 70 years or older without proof of a disability. ADA- mandated providers that are not also city providers (East Bay Paratransit and LAVTA) are not required to provide service to seniors 70 years or older without ADA eligibility.

Programs must subsidize at least 50% of the fare.
• Specialized Accessible Van Service: Specialized van service provides accessible, door-to-door trips on a pre-scheduled or same-day basis.

These services are generally implemented as a supplement to a same- day program that does not meet critical needs for particular trips in accessible vehicles in certain communities.

Important Implementation Guidelines requirements: Specialized Accessible Van programs must demonstrate that they are
providing trips at an equal or lower cost to the provider than the ADA-mandated provider on a cost per trip basis, except if providing “premium” service (e.g. same-day).
• Accessible Shuttle Service: Generally accessible vehicles that operate on a fixed route and schedule to serve common trip origins and destinations, e.g. senior centers, medical facilities, grocery stores, BART stations, other transit stations, community centers, commercial districts, and post offices.

Important Implementation Guidelines requirements: By end of the second fiscal year of service, the City’s cost per one-way trip per person cannot exceed $30, including transportation and direct administrative costs. Shuttles are required to coordinate with the local fixed route transit provider.
• Group Trips Program: Round-trip accessible van rides for pre-planned outings or to attend specific events or go to specific destinations for fixed amounts of time, e.g. shopping trips or religious services. Trips usually originate from a senior center or housing facility.
• Door-through-Door/Volunteer Driver Program: Pre-scheduled, door- through-door services that are generally not accessible; rely on volunteers

ATTACHMENT IV

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Alameda CTC Annual Paratransit Program Plan Application Application Period: July 1, 2023 - June 30, 2024

to drive eligible consumers for critical trip needs, such as medical trips.

May also have an escort component.
• Mobility Management and/or Travel Training: Covers a wide range of activities, such as travel training, trip planning, and brokerage. Does not include provision of trips. (This is considered "non-trip provision"). If your program is using DLD funds, but not discretionary grant funds, you may be required to submit further information.
• Means-Based Fare Programs: Program to subsidize any service for customers who are low-income and can demonstrate financial need.

Important Implementation Guidelines requirements:

Outreach/communication plans related to means-based fares must be submitted to Alameda CTC staff annually.

If program sponsors include subsidized East Bay Paratransit (EBP) tickets in this program, no more than 3% of a program sponsor’s Alameda CTC distributed funding may be used for the ticket subsidy.
• Meal Delivery: Program to fund meal delivery to the homes of individuals who are transportation disadvantaged.

Important Implementation Guidelines requirements: Program sponsors may not use more than 5% of their Alameda CTC DLD Paratransit program funds expended in a given fiscal year for transportation-related costs for meal delivery.

Funding for traditional meal delivery provided by a local community-based organization must be limited to no more than $3 per meal.

Mileage reimbursement for volunteer delivery drivers must be limited to no more than $8 per meal (not to exceed Federal General Services Administration (Privately Owned Vehicle) Mileage Reimbursement Rates).
• Capital Expenditure: Capital purchase or other capital expenditure.

ATTACHMENT IV

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Alameda CTC Annual Paratransit Program Plan Application Application Period: July 1, 2023 - June 30, 2024

A. Explain the impact of the COVID-19 pandemic on the FY 2022-23 and FY 2023-24 programs.

The COVID-19 pandemic continues to impact HOP services and participants.

In the last year however, HOP has seen a slow increase in the number of rides being taken which may indicate that HOP participants are starting to resume the use of HOP services. Many HOP service providers have transitioned back to pre-pandemic service delivery models or modified their service delivery model to meet current needs

Given this increase and several requests to resume group trips, HOP is preparing to implement changes to improve and increase services.

B. Provide a short narrative description of your agency’s FY 2023-24 program.

The Hayward Operated Paratransit (HOP) program provides paratransit and related services to eligible enrolled residents and their attendants who live in Hayward, the unincorporated areas of San Leandro, Castro Valley, San Lorenzo, Ashland, Cherryland, and Fairview. Per Alameda CTC Implementation Guidelines, The HOP is available to seniors (70+) and individuals between the ages of eighteen (18) and sixty-nine (69) years old with a certified disability and unable to drive or use public transportation.

The following is a brief overview of the suite of services targeted to seniors (70+) and qualifying individuals with disabilities in the Hayward service area. The following services are part of the HOP Program that is operated by the City of Hayward and funded through the City of Hayward’s Direct Local Distribution funds.

Eden Information & Referral (EIR) - VIP ZIP program: Through a partnership with EIR, The HOP offers rides through TNC (transportation network company) providers Lyft Concierge, Uber Health, and RydeTrans. This partnership with EIR does not require enrolled clients to have a smart phone to access Lyft/Uber rides. Clients call EIR directly, and staff arranges for the ride using a specially equipped software system.

Group transportation: Pre-scheduled, accessible trips for a minimum group of four are offered to enrolled HOP riders. Group trips are available primarily to senior housing complexes, skilled nursing facilities and various community organizations serving seniors and people with disabilities. Group trips offer participants social outings to reduce isolation. (Suspended in FY22 due to Covid-19)

Travel training: Mobility management workshops and classes are available to groups or individuals and conducted by the CRIL Travel Training Coordinator.

Participants receive training in a wide variety of transportation options including accessing AC Transit and BART, obtaining Clipper cards, enrolling in paratransit services and travel safety tips. In FY21, CRIL started offering 1 -on-1 consultations and support groups remotely via telephone, email, or virtually.

LIFE Eldercare – VIP Rides: Volunteer driver-based mobility program for seniors and people with disabilities to supplement both public transportation and Paratransit

ATTACHMENT IV

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Alameda CTC Annual Paratransit Program Plan Application Application Period: July 1, 2023 - June 30, 2024

services for individuals who would benefit from a door -through-door service experience. Volunteers help clients with destination assistance, light shopping, and other mobility related services.

Alzheimer’s Services of the East Bay (ASEB): ASEB provides door -to-door transportation through specially trained drivers in lift equipped vans to indiv iduals with dementia attending a local day program. ASEB also provides the delivery of activity kits to Hayward area participants who are home -bound and unable to attend ASEB (in -center) at this time. These kits help to stimulate their minds and provide structured interaction between the participant and the caregiver. ASEB continues to provide support to participants/caregivers electronically or telephonically and hosts family caregiver support groups via Zoom on a bi-weekly basis.

SOS Meals on Wheels: Me als on Wheels program provides nutritionally balanced meals to homebound seniors residing in the Hayward service area through a network of trained volunteer drivers.

Means-Based Fare program: Subsidized fare program for enrolled HOP clients with demonstrated financial need. To qualify, clients must meet HUD/federal income limits for extremely-low income and submit income documentation.

Purchase of AC Transit Easy Passes: In partnership with the City of Hayward Housing Division – purchasing AC Transit Easy Passes for use by qualifying residents of newly proposed senior housing developments and the Hayward Homeless Navigation Center operated by Bay Area Community Services.

C. Explain how the suite of services offered is targeted towards the seniors and people with disabilities in your community. Why have these services been selected to meet the trip needs of your consumers over other eligible service types? How do these services enhance their quality of life and help them meet basic life needs?
The HOP c urrently operates various paratransit and transportation related programs to provide a broad range of mobility options in addition to those offered by public transit.

This suite of services provide s transportation and related services when existing services may be unavailable, including service interruptions, same day service is needed, and when HOP participants reside at a location that is not within ¾ of a mile from a fixed route.

D. List the most common trip destinations for seniors and people with disabilities in your community that your services are designed to serve, e.g. dialysis centers, hospitals, major shopping complexes, senior centers. Please report separately, if available, for ADA paratransit, Same- Day Transportation (taxi and TNC), Specialized Accessible Van, and/or Accessible Fixed-Route Shuttle if applicable.

ATTACHMENT IV

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Alameda CTC Annual Paratransit Program Plan Application Application Period: July 1, 2023 - June 30, 2024

The top destinations reported by HOP clients (VIP ZIP Program) in FY22. • Medical Office (27%)
• Errands-Related (24%)
• Groceries (14%)
• Employment (11%)
• Entertainment (5%)
• Shopping (4%)

E. Please provide your average trip length, if available, and any interesting outliers, e.g. a significantly short or long trip associated with one of the common trip destinations above.

In FY 2022, the average length of ride for VIP ZIP, HOP’s most frequently used program, was 5.4 miles. About 82% of the rides are 8 miles or less in length, and majority of rides that exceed that distance are related to medical related travel.

One example of an outlier of a significantly long trip is associated with one of our riders who depends on HOP to travel from unincorporated Castro Valley to their place of employment. This rider is unable to drive and cannot use public transportation to travel to this destination, and without HOP services, would be dependent on family to provide transportation to and from work several times a week.

2. Will your agency’s program for FY 2023-24 conform to the Paratransit Program Implementation Guidelines, as required?
[ x ] Yes
[ ] No
A. If “No”, explain below and contact Alameda CTC staff to discuss (prior to February 21, 2023)

3. If proposing any service or program changes in FY 2023-24 from the current year, FY 2022-23, describe the changes and explain why they are proposed. Describe how these changes will impact the ability of seniors and people with disabilities in your community to meet their basic life needs.

Technical Assistance
In FY 2023, HOP contracted with Nelson Nygaard to complete a comprehensive evaluation of HOP’s current services to identify service gaps and areas in which the program can better serve more individuals and reach underserved communities within HOP’s service area. HOP is proposing to increase the Customer Service/Outreach budget allocation to support po tential implementation of proposed changes.

Group transportation:

Group transportation has been suspended since the onset of the Covid -19 pandemic. Staff is preparing to reinstate services in FY24.

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Alameda CTC Annual Paratransit Program Plan Application Application Period: July 1, 2023 - June 30, 2024

Purchase of AC Transit Easy Passes: HOP launched a partnership with the City of Hayward Housing Division to purchasing AC Transit Easy Passes for use by qualifying residents of newly proposed senior housing developments and the Hayward Homeless Navigation Center operated by Bay Area Community Services. Based on guidance from AC Transit, staff will work with Nelson Nygaard to evaluate the viability of this program as it currently stands and may adjust to improve the program. Currently, this program is not meeting it’s intended purpose.

4. Looking ahead, beyond FY 2023-24, do you anticipate major service changes? Please briefly describe. Describe major changes such as beginning or ending a type of service anticipated within the next five years.

At this time, there are no identified service changes. Based on the findings from the comprehensive evaluation of the HOP program, staff anticipates implementing a range of changes to improve and enhance services starting in FY 2024.

NEW PROGRAM ELEMENTS REQUIRING ALAMEDA CTC STAFF REVIEW

5. The February 2023 Draft Paratransit Program Implementation Guidelines require Alameda CTC staff review of several program elements prior to implementation.

The program elements requiring staff review are listed as items 5A – 5G below and for each item, further explanation is requested. If your FY 2023-24 program plan includes any of the elements listed, in the box provided below, list the elements and the requested explanation for each. It is not necessary to include elements that were included in the FY 2022-23 Plan and are unchanged.

Applicants must address any applicable paratransit projects and programs listed in Attachment Table B.

A. Planned capital expenditure (describe planned capital expenditures, such as purchase of vehicles or durable equipment)
B. Same-Day Transportation Program that includes use of Transportation Network Companies (TNCs) (describe the proposed service including how subsidies will be provided and how capacity will be managed) C. Same-Day Transportation Program that includes incentives to drivers and/or transportation providers (describe the proposed incentives) D. Accessible Shuttle Service (for new shuttles – describe service plan and how city is coordinating with the local fixed route transit provider) E. New mobility management and/or travel training programs (describe the well-defined set of activities)
F. Low-income requirements and outreach for any means-based fare programs (describe the proposed subsidy and the means that will be used to determine and verify eligibility and the method of outreach for the program)
G. Proposed new Meal Delivery Funding Program (describe the proposed service – traditional or mileage reimbursement – and the population(s) it serves)

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Alameda CTC Annual Paratransit Program Plan Application Application Period: July 1, 2023 - June 30, 2024

N/A

DEVELOPMENT OF PROGRAM PLAN

6. How was consumer input sought in development of the program and selection of the services offered? Describe all general outreach activities undertaken in connection with this plan, including consumer or public meetings; meetings with other agencies; presentations to boards, commissions, or committees. If possible, provide dates for these activities. Note below if this plan was reviewed by a local paratransit advisory committee, including the name of the committee, and the date of the meeting.

Programs and services included in the Program Plan were presented at the meeting bodies and community events listed below and developed with the consideration of feedback provided.

April 5, 2022, City Council Meeting
October 19, 2022, Baywood Court Senior Community

HOP is working with Nelson Nygaard to engage with residents in Hayward and in the surrounding unincorporated areas. Some suggested activities include:

• Calling active clients
• Farmer’s Market Booths (Downtown Hayward/Castro Valley/San Leandro)
• Presentations at Local Libraries (Hayward/Castro Valley/San Leandro/San Lorenzo)
• Presentations at senior centers/independent living facilities • Direct feedback from service partners

7. Describe any outreach, surveys and/or analysis conducted to develop this plan and to determine the types of services the program offers.

Updates to the plan presented at public meetings are published to the City’s website prior to the meetings in accordance with the Brown Act. Interested parties are invited to provide public comments on the plan prior to or at the meetings.

As previously mentioned, HOP is partnering with Nelson Nygaard to explore additional ways to engage members of the public, consumers, and services partners.

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Alameda CTC Annual Paratransit Program Plan Application Application Period: July 1, 2023 - June 30, 2024

8. Describe how results from the community outreach, surveys and/or analysis described in Questions 6 and 7 were used to guide the development of the program plan.

Historically, HOP relied heavily on direct feedback from participants to inform program changes. Moving forward, HOP plans to collect feedback through ongoing engagement with participants, service partners, and members of the public. HOP is considering a short-term local advisory committee to help determine the most equitable and accessible ways of implementing a long-term process of community engagement.

9. Describe any innovative, emerging technology or non-traditional elements integrated into the program plan.

HOP is in the process of evaluating program offerings and preparing to undergo program changes. No additional program elements have been included in this current program plan. HOP anticipates that innovation and technology will be integrated into the proposed changes in future program plans.

10. Was this program plan approved by a governing body (or is it scheduled for action)? This is not required by the Alameda CTC. Jurisdictions should follow their established internal process.
[ x ] Yes
[ ] No
A. If “Yes”, provide the name of the governing body and planned or actual approval date.

Scheduled for City Council review and approval (April 4, 2023)

OUTREACH

11. How do community members and potential users learn about the Alameda CTC- funded services provided in your community? Specify for each of the paratransit projects and programs listed in Attachment Table B.

Community members primarily access HOP information directly through the City of Hayward website. Ongoing outreach is conducted by staff and the Travel Trainer. Services are also advertised through the following: City website; Community Access Channel 15; CRIL; the Hayward Public Library; Various dialysis and medical treatment centers; Kaiser Hospital San Leandro; St. Rose Hospital; the Hayward Senior Center; the San Leandro Senior Center; and the Castro Valley Senior Center.

As part of the comprehensive evaluation of services, HOP envisions implementing additional forms of outreach.

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Alameda CTC Annual Paratransit Program Plan Application Application Period: July 1, 2023 - June 30, 2024

ELIGIBILITY AND ENROLLMENT

12. What are your requirements for eligibility? (e.g., age, residency, income, ADA- certification status, or other verification of disability).

Hayward service area residents who are senior (70+) or disabled adults (18+) who are unab le to use public transportation because of infirmity or disability or for whom East Bay Paratransit (EBP) is not an option are eligible to enroll. An application must be submitted and approved to enroll, and all applicants are encouraged to enroll concurrently with EBP. Applicants under the age of 70 must submit a medical certification form signed by a physician or social worker , or alternatively provide proof of EBP enrollment. To qualify for m eans based fare programs, applicants must qualify by income (50% of AMI) and provide supporting documentation (proof of SSI/SDI, bank statements, most recent tax return, etc.

13. How do consumers enroll in your program? Include how long the enrollment process takes, and how soon newly enrolled applicants can use the services offered.

Applications are accepted year-round and typically reviewed within 48 hours of receipt during business hours, however staff often replies sooner.

Applicants determined eligible are mailed an enrollment packet within 3-5 business days of processing. Enrollment can be expedited for those with urgent travel needs.

CUSTOMER SATISFACTION

14. Describe your complaint and commendation process. Describe your process from beginning to end, including instructions you provide to customers for filing program suggestions, complaints or commendations, your documentation procedures, and your follow up.

The HOP program Rider’s Guide includes information detailing the service communication process. Enrolled riders, their attendants/caregivers, and others serving seniors and individuals with disabilities can provide feedback to City staff or service partners in writing, via telephone, email or through the city website at any time. Complaints and commendations are documented by City staff and shared with the appropriate vendor. All complaints are investigated by staff and a response is typically provided with 48 hours of receipt.

A. Describe any common or recurring service complaints, commendations and/or suggestions your program has received. Specify for each of the paratransit projects and programs listed in Attachment Table B. (Complaints are defined as phone calls, letters, or emails received for the specific purpose of making a complaint.)
VIP ZIP riders continue to express concerns about the unpredictability of the cost of rides, especially during peak hours. Surge pricing is an ongoing concern.

Participants have also requested the HOP resume Group Trips.

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Alameda CTC Annual Paratransit Program Plan Application Application Period: July 1, 2023 - June 30, 2024

B. Describe any changes you have made to your program as a result of these customer complaints, commendations and suggestions.

EIR staff proactively advise riders of on-demand pricing surges and often price compares between TNCs to get the lowest fares for HOP participants. On occasion, EIR staff may work with riders to delay flexible rides until after high demand hours in order to see reduced pricing.

HOP is planning to resume Group Trips in FY 2024.

EXPECTED DEMAND/USE OF SERVICES

15. How many people are/have been/will be registered in the program during the following time periods? Fill in the boxes below.

Registrants at beginning of FY 2021-22 323 Active Registrants Registrants at end of FY 2021-22 458 Active Registrants Current Registrants for FY 2022-23 526 Active Registrants Projected Registrants for FY 2023-24 725 Active Registrants

A. Based on the registration projection provided, explain why you expect your program registration to increase, decrease or stay the same compared to the current year.

Given the increased number of registrants in the first seven months of FY 2023, HOP expects the number of new registrants to continue to increase. Additionally, HOP expects there to be potential growth due to increased outreach and program improvements as a result of the ongoing evaluation.

16. What are the current program registrant demographics for FY 2022-23, if available? Fill in the boxes below.

Race/Ethnicity (check all that apply, individuals may be listed in multiple categories)
American Indian or Alaska Native
Asian 23%
Black or African American 14%
Hispanic or Latino 13%
Native Hawaiian or Other Pacific
Islander

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Alameda CTC Annual Paratransit Program Plan Application Application Period: July 1, 2023 - June 30, 2024

White 41%
Other 9%
Disability (check all that apply, individuals may be listed in multiple categories)
Mobility/Physical
Spinal Cord (SCI)
Head Injuries (TBI)
Vision
Hearing
Cognitive/Learning
Psychological
Invisible
Household Income
< $29,750
$29,751-$49,600
$49,601-$59,520
$59,521-$78,850
> $78,851

A. Based on the current program demographics, describe any demographic trends you foresee for FY 2023-24.

Based on the current reported demographics there is insufficient data to draw projected trends. In FY 2023, staff worked with service partners to collect more demographic data. HOP is in the process of evaluating ways to update current data and improve data collection to include income and disability category.

17. Do you expect the total number of one-way trips provided by your program in FY 2023-24 to increase, decrease or stay the same compared to the current year, FY 2022-23? Why?
The number of annual rides increased from 3,633 in FY 2021 to 10,025 in FY 2022.

HOP estimates that there will be a slight increase given the expected increase in the number of participants. However, based on the ridership in Q1, HOP doesn’t expect as significant of an increase as seen in FY 2023.

18. Do the ridership numbers reported in Attachments Table A and Table B include companions and/or attendants?
[ ] Yes

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Alameda CTC Annual Paratransit Program Plan Application Application Period: July 1, 2023 - June 30, 2024

[ x ] No
A. If “Yes”, and if known, what percent of total ridership are companions/attendants? (If providing an estimate, please clearly indicate it as such.)

19. Please provide the number of trips provided to consumers who required an accessible vehicle, if available. If trips were provided in more than one service (e.g. taxi, TNC, specialized accessible van, etc.), please specify for each.

Number of trips provided to consumers who require
an accessible vehicle in FY 2021-22
81*
Number of trips provided to consumers who require
an accessible vehicle in FY 2022-23 as of Dec. 31,
2022
21 Number of trips projected to consumers who require
an accessible vehicle in FY 2023-24
50 *There is a discrepancy between the number of trips being reported in this program plan and the FY22-23 plan for the number of trips provided to consumers who require an accessible vehicle in FY 2021-2022 as of December 31, 2021. The data was verified, and the number of trips provided to consumers who require an accessible vehicle in FY 2021-22 is accurate as shown above.

VEHICLE FLEET

20. Provide details regarding your vehicle fleet. To answer this question, complete Attachment Table D (Table D tab of the Excel workbook).

SAFETY AND PREPAREDNESS

21. Describe any safety incidents recorded by your program in FY 2021-22, or to date in FY 2022-23. Specify for each of the paratransit projects and programs listed in Attachment Table B. (Report incidents resulting in any of the following: a fatality other than a suicide; injuries requiring immediate medical attention away from the scene for two or more persons; property damage equal to or exceeding $7,500; an evacuation due to life safety reasons; or a collision at a grade crossing.)
N/A

22. If possible, describe your city’s or your program’s emergency preparedness plan.

Specify when the plan was last prepared or updated. Does the plan include the paratransit program? Indicate if it is available online or can be provide upon request. If available online, please include a link in the comment box below.

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Alameda CTC Annual Paratransit Program Plan Application Application Period: July 1, 2023 - June 30, 2024

The City of Hayward’s Compressive Emergen cy Management Plan (CEMP) is an internal document that addresses the City of Hayward's responsibilities in emergencies associated with natural disaster, human -caused emergencies, and technological incidents. It provides a framework for coordination of response and recovery efforts within the City in coordination and with local, State, and Federal agencies. The CEMP establishes an emergency organization to direct and control operations during a period of emergency by assigning responsibilities to specific personnel.

While the CEMP does not directly include the Hayward Operated Paratransit program, it does encompass provisions that account for the transportation of individuals with disabilities and individuals who require alternative modes of transportation. Furthermore, the CEMP comprises resources in the event of an emergency for seniors, including but not limited to meals, home care, and transportation. The City is undergoing a process to refine the CEMP and should have an updated version by summer 2023.

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Alameda CTC Annual Paratransit Program Plan Application Application Period: July 1, 2023 - June 30, 2024

FINANCES: PROGRAM REVENUE AND COST

23. Detail your FY 2023-24 program’s total estimated revenue (all fund sources) and total cost by completing Attachment Table C (Table C tab of the Excel workbook). For program components funded all or in part with a Measure B/BB discretionary grant, segregate the grant funding by entering it in the “Other Measure B/BB” column.

24. Describe below the “Management/Overhead” and “Customer Service and Outreach” costs included in Attachment C and how these cost allocations were determined? (These two categories are defined under Question 1.) The amount spent on Customer Service/Outreach and Management/Overhead is to be included as part of the total program cost, even if it is not funded with Alameda CTC funding. This includes city/agency staff time paid for by a city’s general fund.

A. Management/Overhead Costs
Funds:
1) Direct staff costs (salaries/benefits) based on program oversight, planning, budgeting, customer service and outreach (Measure B (reserves)/BB and City of Hayward CDBG (10%) shared costs);
2) Insurance costs (Measure B reserve- 100%); Direct program costs including printing, supplies, computer/IT support, travel, etc. (Measure B reserves and Hayward CDBG (10%) shared costs);
3) Consulting Services – Estimated cost for implementation of program improvements per Nelson Nygaard evaluation.

B. Customer Service and Outreach Costs
Customer outreach includes daily operational activities such as fielding customer inquiries, application distribution and processing, database maintenance, group trip scheduling and monitoring, etc. Other related activities include community presentations and identification of potential partnerships. Marketing materials and potential street signage are also included.

FY 2024 includes an allocation towards outreach as part of the implementation efforts based on the comprehensive program evaluation.

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Alameda CTC Annual Paratransit Program Plan Application Application Period: July 1, 2023 - June 30, 2024

PROGRAM FUNDING RESERVES

25. If your paratransit program is anticipated to have a remaining balance of Measure B/BB DLD funding at the end of FY 2023-24, as shown in Attachment Table C, please explain. How do you plan to expend these funds and when? As currently projected, HOP anticipates a remaining balance of Measure B reserves/BB DLD funding at the end of FY23-24. A significant portion of the remaining fund balance will be allocated towards longer term program improvements as a result of the comprehensive program evaluation and implementation efforts.

HOP continues to partner with Hayward Public Works, Transportation Division to extend the Safe Routes for Seniors (SR4S) program to additional locations within the City. The first phase of this project should be completed in FY 2023. HOP is budgeting $750,000 in FY 2024 to support the design phase of the second location in South Hayward.

MISCELLANEOUS

26. Use this space to provide any additional notes or clarifications about your program plan.

There are still unknowns about HOP’s future services and programs. As HOP engages the community, with the support of Nelson Nygaard, the City will continue to explore ways to extend services to underserved and unreached community members with an increased focus on the surrounding unincorporated areas. HOP is in a rebuilding phase and hopes to provide additional information and expand services as a result.

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$1,466,531
$878,422
$4,507,567
$1,244,086
$8,096,606
$8,096,606
Notes
Column A Column B Column C Column D Column E Column F Column G Column H Column I Column J Column K Column L Column M Column N Column O Eligible Service/Program
Type
Drop‐down Menu
Service/Program/Project
Name
Quantity
Provided
FY 2021‐22
Provide total
number of one‐
way trips or units
On‐Time Performance
FY 2021‐22
Percent of passenger
trips arrived within
designated window
(indicate if data is
unavailable or non‐
applicable)
Amount of

RESERVE
Measure B
Paratransit
DLD funds

EXPENDED
Amount of FY
2021‐22
Measure B
Paratransit
DLD funds

EXPENDED
Amount of

RESERVE
Measure BB
Paratransit
DLD funds

EXPENDED
Amount of FY
2021‐22
Measure BB
Paratransit
DLD funds

EXPENDED
Amount of
OTHER
Measure B/BB
funds

EXPENDED
What was the
source of these
OTHER Measure
B/BB funds?
(e.g. CIP Grant,
LSR, etc.)
Fare Revenue
expended on
service
Amount of all
non‐Alameda
CTC funds

EXPENDED
(not including
fares)
What was the
source of these
non‐Alameda
CTC funds?
(e.g. City general
fund, federal,
state, etc.)
Total Funds
expended
(all sources)
Automatically
calculated
Miscellaneous Notes
(If necessary, provide
any notes/clarification
about trip/program)
Customer Service and Outreach Research, Marketing & Data Collection
N/A 39,565$                    $                  39,565 Management/Overhead Program Administration N/A 579,863$                 $               579,863 Same‐Day Transp. ‐ TNC VIP ZIP 5,110 unavailable $243,616.31 $               243,616 Specialized Accessible Van Alzeheimer's Services of the East Bay
2,934 unavailable 75,000$                    $                  75,000 Group Trips Group Trips/RydeTrans 0 N/A $                          ‐    $                           ‐ Door‐through‐Door/Volunteer
Driver
VIP Rides/LIFE ElderCare 1,981 unavailable 94,132$                    $                  94,132 Mobility Mgmt/Travel Training Hayward on the Go! Travel Training/Commuity Resources for
Independent Living
26 N/A
4,832$                      $                    4,832 Scholarship/Subsidized Fare HOP Means‐Based Fare Program 609 unavailable $                           ‐    Fare subsidy of $7,297.01 included in  VIP ZIP
program expenses.

Scholarship/Subsidized Fare HOP/Hayward Navigation Center 0 N/A $                           ‐ Meal Delivery (existing program) SOS Meals on Wheels 108,926 unavailable 90,000$                    $                  90,000
Capital Purchase Safe Routes for Seniors (SR4S)
Program/COH Public Works
N/A $              186,963 $               186,963
$                           ‐
$                           ‐
$                           ‐
$ 1,127,007 $ - $ 186,963 $ - $ - $ - $ - $ 1,313,970 Alameda CTC FY 2023‐24 Annual Paratransit Program Plan Application (July 1, 2023 ‐ June 30, 2024) Attachment Table A: Summary of Past Program Service, Performance, Revenue, and Costs (FY 2021‐22) Service/Program Type and Name
Total FY 2021‐22 Program Costs Expended by Fund Source
(Measure B, Measure BB and all other funds expended during FY 2021‐22)Performance FY 2021‐22 Estimated Measure B Paratransit DLD reserve balance at the start of FY 2021‐22 FY 2021‐22 Measure B DLD Paratransit revenue (Staff will confirm using Alameda CTC reports) Estimated Measure BB Paratransit DLD reserve balance at the start of FY 2021‐22 FY 2021‐22 Measure BB DLD Paratransit revenue (Staff will confirm using Alameda CTC reports) Total FY 2021‐22 Measure B and BB Paratransit DLD Revenue (Automatically calculated) Total FY 2021‐22 Other Revenue (All other revenue sources, non‐DLD, including fares, discretionary grant, non‐Meas B and BB) (should equal Columns I, K, and L)
Total FY 2021‐22 Program Revenue (Measure B, Measure BB and all other sources available for FY 2021‐22)  (Automatically calculated) Total FY FY 2021‐22 Program Revenue
(Measure B, Measure BB and all other funds available for FY 2021‐22)

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$1,168,265
$2,111,861
$2,079,130
$5,359,257
$5,359,257
Total Cost
Column A Column B Column C Column D Column E Column F Column G Column H Column I Column J Column K Service/Program/Project Name
Automatically populated from
prior sheet (column B)
Quantity
Planned for FY
2023‐24
Automatically
populated from
prior sheet
(column Q)
Amount of

RESERVE
Measure B
Paratransit
DLD funds to be

EXPENDED
Amount of

RESERVE
Measure BB
Paratransit
DLD funds to be

EXPENDED
Amount of FY
2023‐24
Measure BB
Paratransit
DLD funds to be

EXPENDED
Amount of
OTHER
Measure B/BB
funds to be

EXPENDED
What is the
source of these
OTHER Measure
B/BB funds?
(e.g. CIP Grant,
LSR, etc.)
Fare Revenue to
be expended on
service
Amount of all
Non‐Alameda
CTC funds to be

EXPENDED
(not including
fares)
What is the
source of these
non‐Alameda
CTC funds?
(e.g. city funds,
federal, state,
etc.)
Total Cost
(all sources)
Automatically
calculated
VIP ZIP 10,000 $             272,619 $             272,619 Research, Marketing & Data
Collection
0 $             125,000 $             125,000
Program Administration 0 $             166,072 $             333,928 $             500,000 Group Trips 2,000 $                75,000 $                75,000 SOS Meals on Wheels 90,000 $             100,000 $             100,000 Hayward on the Go! Travel Training 100 $                50,000 $                50,000 Alzeheimer's Services of the East Bay 1,600 $                75,000 $                75,000 VIP Rides 3,500 $             154,574 $             154,574 HOP Means‐Based Fare Program 1,000 $                25,000 $                25,000 HOP/Hayward Navigation Center 500 $                25,000 $                25,000 PW Safe Routes for Seniors 0 $             750,000 $             750,000 HOP Evaluation Pilot(s) TBD $             100,000 $             100,000 00 $                        ‐
00 $                        ‐
Totals 108,700 $ 1,168,265 $ 1,083,928 $ - $ - $ - $ - $ 2,252,193 Budget check (total revenue less total cost): $3,107,064 Measure B Measure BB Total MB/BB
$0 $3,107,064 $3,107,064
N/A 149% 149%
*Alameda CTC's Timely Use of Funds policy looks at entire jurisdiction's fund balance.

Estimated Reserve Balance, June 30, 2024:

Reserve balance as percent of FY 2023‐24 Revenue*
PARATRANSIT DLD RESERVE BALANCES
Service/Program Name
Total FY 2023‐24 Measure B and BB Paratransit DLD Revenue (Automatically calculated) Total FY 2023‐24 Other Revenue (All other revenue sources, non‐DLD, including fares, discretionary grant, non‐Meas B and BB) (should equal Columns F, H, and I) Total FY 2022‐23 Program Revenue (Measure B, Measure BB and all other sources available for FY 2022‐23) (Automatically calculated) Total FY 2023‐24 Program Costs by Fund Source
(Measure B, Measure BB and all other funds planned to be expended during FY 2023‐24) Alameda CTC FY 2023‐24 Annual Paratransit Program Plan Application (July 1, 2023 ‐ June 30, 2024) Attachment Table C: Program Revenue, Cost and Fund Sources Total FY 2023‐24 Program Revenue
(Measure B, Measure BB and all other funds available for FY 2023‐24) Estimated Measure B Paratransit DLD ending balance at the end of THIS fiscal year, FY 2022‐23 (June 30, 2023) Estimated Measure BB Paratransit DLD ending balance at the end of THIS fiscal year, FY 2022‐23 (June 30, 2023) Projected FY 2023‐24 Measure BB DLD Paratransit revenue (Use projections distributed by the Alameda CTC)

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Note: Definitions for each drop‐down menu are in the Implementation Guidelines Contractor Need(s) Met
Column A Column B Column C Column D Column E Column F Column G Column H Column I Column J Eligible Service/Program
Type
Drop‐down Menu
Service/Program/Project
Name
(Should also note Type in some
way)
If service is contracted, provide
name of contractor/service
provider
Need(s) this Service Meets
(E.g. medical, grocery, recreation,
regional trips, etc.)
Fare/Cost to Consumer
Fare Medium
(E.g. online, cash, voucher,
reimbursement, annual fee,
etc.)
Vehicle Accessibility
(wheelchair or mobility
devices that require a
lift/ramp)
Drop‐down Menu
Is this a same day or pre‐
scheduled service?
Drop‐down Menu
Is this a fixed route or
origin‐to‐destination
service
(e.g. door‐to‐door)?
Drop‐down Menu
Service Area
Same‐Day Transportation VIP ZIP Eden Information & Referral (2‐1‐1)/ TNC: On‐demand transportation for eligible clients to meet Activities of
Daily Living (ADL's) needs
HOP will pay the costs of rides
over $4.00 up to a maximum of
$20.00. Any costs over
$20.00 are the rider’s
responsibility.

Debit/Credit Card Accessible Same Day Curb‐to‐Curb Hayward, Newark, Livermore, Oakland, San Leandro, Fremont,
Dublin, Alameda, Union City,
Pleasanton, San Ramon, Castro
Valley, Fairview, Cherryland,
San Lorenzo, Ashland
Customer Service and Outreach Research, Marketing & Data Collection
City of Hayward
Communications Costs‐Research,
Marketing & Data Collection
N/A N/A City of Hayward
Management/Overhead Program Administration City of Hayward Operations Costs‐Administrative costs for program delivery
N/A N/A City of Hayward
Group Trips Group Trips A‐Para Transit, Inc. Groups of 4 or more:  transportation for groups of eligible clients to meet
ADL needs
N/A N/A Accessible Pre‐scheduled Curb‐to‐Curb Hayward, Newark, Livermore, Oakland, San Leandro, Fremont,
Dublin, Alameda, Union City,
Pleasanton, San Ramon, Castro
Valley, Fairview, Cherryland,
San Lorenzo, Ashland
Meal Delivery SOS Meals on Wheels Service Opportunity for Seniors (SOS)
Delivery of meals to homebound
seniors
N/A N/A Pre‐scheduled Hayward, Unincorporated San
Leandro, Castro Valley,
Fairview, Cherryland, San
Lorenzo, Ashland
Mobility Mgmt/Travel Training Hayward on the Go! Travel Training
Community Resources for
Independent Living
Mobility management training for
seniors and people with disabilities
N/A N/A Pre‐scheduled Hayward, Unincorporated San
Leandro, Castro Valley,
Fairview, Cherryland, San
Lorenzo, Ashland
Specialized Accessible Van Alzeheimer's Services of the East Bay
Alzeheimer's Services of the East
Bay
Transportation to Hayward Adult Day
Health Care centers, support for
caregivers and individuals recently
diagnosed with dementia
N/A N/A Accessible Pre‐scheduled Door‐to‐Door Hayward, Newark, Livermore, Oakland, San Leandro, Fremont,
Dublin, Alameda, Union City,
Pleasanton, San Ramon, Castro
Valley, Fairview, Cherryland,
San Lorenzo, Ashland
Door‐through‐Door/Volunteer
Driver
VIP Rides LIFE ElderCare
Trained volunteers provide door‐
through‐door transportation to eligible
clients to meet ADL needs
N/A N/A Accessible Pre‐scheduled Door‐through‐Door Hayward, Newark, Livermore, Oakland, San Leandro, Fremont,
Dublin, Alameda, Union City,
Pleasanton, San Ramon, Castro
Valley, Fairview, Cherryland,
San Lorenzo, Ashland
Means‐Based Fare Program HOP Means‐Based Fare Program City of Hayward On‐demand transportation for eligible
clients to meet ADL needs
N/A N/A Hayward, Unincorporated San
Leandro, Castro Valley,
Fairview, Cherryland, San
Lorenzo, Ashland
Means‐Based Fare Program HOP/Hayward Navigation Center City of Hayward ADL N/A N/A AC Transit Local Service Area
Capital Purchase PW Safe Routes for Seniors City of Hayward Improved Mobility N/A N/A City of Hayward Specialized Accessible Van HOP Evaluation Pilot(s) City of Hayward TBD TBD TBD Accessible Placeholder to implement pilot(s)
Note: Definitions for each drop‐down menu are in the Implementation Guidelines Limits Eligibility   Status Deliverables Notes
Column A (repeated) Column B (repeated) Column K Column L Column M Column N Column O Column P Column Q Column R Service/Program
Type
Will automatically populate
from rows above
Service/Program/Project
Name
Will automatically populate
from rows above
Limits on number of trips/
use of service?
(e.g. trip limits per
month/quarter/year or a
maximum expenditure per
consumer)
If pre‐scheduled, what days/hours
are reservations accepted for trip,
training, etc?
If pre‐scheduled, how far in
advance can/must a
consumer schedule a trip,
training, etc?
Days/Hours of Operation Eligibility Requirements
Project Status
Drop‐down Menu
Quantity Planned
Provide total number of
units  (one‐way passenger
trips, consumers trained,
meals delivered, etc.)
Miscellaneous Notes
(If necessary, provide any
notes/clarification about
trip/program)
Same‐Day Transportation VIP ZIP 40 rides per month N/A N/A M‐F, 8:15AM‐5:30PM 70+ Years of Age or Adult with certified disability and unable to
drive or use public
transportation independently
Continuing/Ongoing 10,000 Adding weekend hours in FY24
Customer Service and Outreach Research, Marketing & Data Collection
N/A N/A N/A N/A N/A Continuing/Ongoing
Management/Overhead Program Administration N/A N/A N/A N/A N/A Continuing/Ongoing Group Trips Group Trips 2 trips per org per month Mon ‐ Sat Reservations accepted by 3rd calendar week from upcoming
month
9am‐4pm Adheres to Alameda CTC
Implementation Guidelines
Continuing/Ongoing 2,000
Meal Delivery SOS Meals on Wheels Daily per client Mon ‐ Sat By request 9am‐5pm Adheres to Alameda CTC Implementation Guidelines
Continuing/Ongoing 55,200
Mobility Mgmt/Travel Training Hayward on the Go! Travel Training
By appointment case‐by‐case basis By appointment 9am‐5pm Adheres to Alameda CTC Implementation Guidelines
Continuing/Ongoing 100 Will be evaluated in FY23 with
potential changes in FY24
Specialized Accessible Van Alzeheimer's Services of the East Bay
as requested Mon ‐ Fri By request 9am‐5pm Adheres to Alameda CTC Implementation Guidelines
Continuing/Ongoing 1,600 Will  be evaluated in FY23 with potential changes in FY24
Door‐through‐Door/Volunteer
Driver
VIP Rides as requested case‐by‐case basis By appointment 9am‐5pm Adheres to Alameda CTC Implementation Guidelines
Continuing/Ongoing 1,900
Means‐Based Fare Program HOP Means‐Based Fare Program 40 rides per month N/A N/A N/A Adheres to Alameda CTC Implementation Guidelines
Continuing/Ongoing 1,000
Means‐Based Fare Program HOP/Hayward Navigation Center 40 rides per month (TNC); 1 monthly AC Transit Easy Pass per
qualifying resident; 20 Day Passes
per month
According to AC Transit bus schedules
for Easy Pass
N/A; Advance reservation only, up
to 7 days in advance (EBP)
Mon ‐ Fri 8:15AM‐5:30PM (TNC);
8am‐5pm (EBP)
Adheres to Alameda CTC
Implementation Guidelines
To be closed out in FY 23‐24 500 Will  be evaluated in FY23 with potential changes in FY24
Capital Purchase PW Safe Routes for Seniors N/A N/A N/A N/A ADA Improvements Continuing/Ongoing In collaboration with COH Public Works ‐ Downtown area is in
design phase and construction,
will be evaluated in FY23 with
potential changes in FY24
Specialized Accessible Van HOP Evaluation Pilot(s) TBD TBD TBD TBD TBD TBD TBD Placeholder to implement pilot(s)
00 00
Alameda CTC FY 2023‐24 Annual Paratransit Program Plan Application (July 1, 2023 ‐ June 30, 2024) Attachment Table B: Description of Planned Program
Cost to Consumer
Schedule
For Trip Provision ServicesService/Program Type and Name Service/Program Type and Name

ATTACHMENT IV

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CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: CONS 23-185
DATE: April 11, 2023
TO: Mayor and City Council
FROM: Assistant City Manager

SUBJECT
Adopt a Resolution Authorizing the City Manager to Execute the Cooperation Agreement for Fiscal Years 2024-2026 between the City of Hayward and the County of Alameda to Participate in the Alameda County HOME Consortium

RECOMMENDATION
That the City Council adopts a resolution (Attachment II) authorizing the City Manager to execute the Cooperation Agreement (the Agreement) and all other implementing documents to enable the City of Hayward to participate in the Alameda County HOME Consortium...End

SUMMARY
Every three years, the City of Hayward must reaffirm its membership in the Alameda County HOME Consortium by entering into a Cooperation Agreement with the HOME Consortium, led by Alameda County. The City has been a member of the Consortium since 1991. This administrative agreement between the City and Alameda County enables the City to continue participation for the next three fiscal years.

Through Consortium membership, the City has received approximately $13.75 million in funds for HOME -eligible housing assistance activities benefitting households at or below 80% of the area median income (AMI), including acquiring, rehabilitating, and constructing affordable housing developments, and providing homebuyer and tenant-based rental assistance. Staff recommends that Council adopt the resolution to authorize the City’sparticipation in the Consortium and to continue receiving federal HOME funds for FY 2024 through FY 2026. Approval of this resolution does not commit the City to funding any specific project at this time. Specific funding allocations to projects will come to the Council in the future for approval.

ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
CITY OF HAYWARD Printed on 4/7/2023Page 1 of 1
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DATE: April 11, 2023

TO: Mayor & City Council

FROM: Assistant City Manager

SUBJECT: Adopt a Resolution Authorizing the City Manager to Execute the Cooperation Agreement for Fiscal Years 2024-2026 between the City of Hayward and the County of Alameda to Participate in the Alameda County HOME Consortium

RECOMMENDATION

That the City Council adopts a resolution (Attachment II) authorizing t he City Manager to execute the Cooperation Agreement (the Agreement) and all other implementing documents to enable the City of Hayward to participate in the Alameda County HOME Consortium.

SUMMARY

Every three years, the City of Hayward must reaffirm its membership in the Alameda County HOME Consortium by entering into a Cooperation Agreement with the HOME Consortium, led by Alameda County. The City has been a member of the Consortium since 1991. Thi s administrative agreement between the City and Alameda County enables the City to continue participation for the next three fiscal years.

Through Consortium membership, the City has received approximately $13.75 million in funds for HOME -eligible housing assistance activities benefitting households at or below 80% of the area median income (AMI), including acquiring, rehabilitating, and constructing affordable housing developments, and providing homebuyer and tenant -based rental assistance. Staff recommen ds that Council adopt the resolution to authorize the City’s participation in the Consortium and to continue receiving federal HOME funds for FY 2024 through FY 2026. Approval of this resolution does not commit the City to funding any specific project at t his time. Specific funding allocations to projects will come to the Council in the future for approval.

BACKGROUND

Since 1991, the City of Hayward has been part of the Alameda County HOME Consortium, which includes unincorporated Alameda County and the cities of Alameda, Fremont, Livermore, Pleasanton, San Leandro, and Union City. Hayward’s participation in the Consortium has assured the City a total allocation of approximately $13.75 million of federal HOME Investment Partnership funds since FY 1991 -1992. Funds must be used for HOME - eligible housing assistance activities, such as:

Page 2 of 4 ends

 Affordable housing development through acquisition, rehabilita tion, or construction activities
 Homebuyer assistance
 Tenant-based rental assistance (TBRA)

HOME program regulations require that 100% of HOME funds be used to assist households with incomes at or below 80% of the area median income (AMI) adjusted for household size.

Currently, the Alameda County 80% of AMI income limit for a family of four is $106,000.

DISCUSSION

The City’s participation in the Consortium assures the City an annual allocation of HOME funds and alleviates the administrative burden of administering the funds. As the representative of the Consortium, Alameda County acts as the lead member for administrative and federal reporting purposes and coordinates the production of the Consolidated Annual Performance and Evaluation Report (CAPER) r equired by HUD. Several other reporting activities are also carried out in a joint effort by the participating jurisdictions.

The overall objective of the program is to provide high-quality, sustainable affordable housing.

In previous years, HOME funds were used to help finance the following housing projects:
 Construction of the Glenn Berry and Sara Conner Court Apartments,  Rehabilitation of Huntwood Commons and Tennyson Gardens Apartments  Acquisition and rehabilitation of Leidig Court Apartments,  Acquisition of Cypress Glen Apartments,
 Loan for the Weinreb Place (aka Hayward Senior Housing II) affordable senior complex,  Loan for the Alta Mira Affordable Family and Senior Apartments (aka the South Hayward BART affordable housing project) which opened in the fall of 2016.  Acquisition and development of Mission Paradise

Funds also provide tenant-based rental assistance to low-income renters. Since 2008, funds have been set aside to pay for rental subsidies for participants of Project Independence, a program that provides services and rental subsidies to emancipated youth (youth age 18 to 24 who have aged out of the foster care system). Additionally, in 2020, the Council authorized the use of HOME funds for emergency rental assistance to tenants expe riencing economic hardship related to COVID-19.

Staff recommends that the City Council approve the continued participation in the Alameda County HOME Consortium for the next three Federal fiscal years – October 1, 2023, through September 30, 2026. Individual project funding commitments during this time will come to the Council separately for approval.

ECONOMIC IMPACT

Continuing participation in the Alameda County HOME Consortium ensures that the City receives an annual allocation of funds rangin g from $250,000 to $425,000 to continue to address th e region’s housing crisis. These funds ensure Hayward’s low -income residents

Page 3 of 4 ends

have access to decent, safe, and sanitary housing and help prevent housing instability and homelessness. Providing funding for affordable housing opportunities is an important part of the City’s efforts to prevent displacement and homelessness.

FISCAL IMPACT

There is no fiscal impact associated with this agenda item.

Hayward’s participation in the HOME Consortium allows the City to receive an annual allocation of HOME program funds from HUD. Between federal FY 2021 and FY 2023, the City received an average allocation of approximately $420,000. Each year, 10% of funds may be used for administrative costs, and of those, 50% are retained by the County for administration, leaving the City with 5% of the total allocation for administration of ongoing and new HOME activities.

SUSTAINABILITY FEATURES

To be competitive for the major sources of funding, affordable housing development proposals must be located near transit and include energy-efficient and sustainable features that exceed the applicable standards. These two are major criteria in the Low -Income Housing Tax Credit Program, for example. The requirement to include energy -efficient and sustainable features is intended to guarantee that affordable developments are financially viable for the long term. Energy -related savings are essential to achie ve that long -term viability – besides guaranteeing that the housing expenses of tenants are low or minimal.

Additionally, as housing becomes increasingly unaffordable, many households are forced to move out of their communities and, as they move farther away, they must spend a larger part of their incomes on transportation while adding further pressure to the already congested system of roads and freeways. Thus, the requirement to be located near transit helps reduce traffic congestion and frees up income of very low and extremely low income households to pay for other expenses such as education, childcare, and food. Therefore, to the extent that HOME and other local moneys will help Hayward affordable housing projects or program proposals compete for and/or leverage other sources of funding, this would help a) reduce area traffic impacts, and b) achieve other local sustainability goals.

STRATEGIC ROADMAP

This agenda item supports the Strategic Priority of Preserve, Protect, & Produce Housing for All. This item is not specifically related to a project identified in the Strategic Roadmap. Staff are bringing forth this item because it is a necessary administrative step for remaining in the HOME Consortium.

PUBLIC CONTACT

This is a standard three -year Agreement, purely administrative in nature, allowing the City to participate in the Alameda County HOME Consortium. It does not commit any funding to

Page 4 of 4 ends

projects. Neither HUD nor the County requires a public hearing or other publ ic contact for this Agreement. Therefore, this Council resolution comprises the first and only required public contact for this Agreement.

NEXT STEPS

Project-related funds will be used for HOME -eligible housing -assistance activities. Future commitments and appropriation of those funds for such activities will require Council approval. Staff will later return to Council to recommend the allocation of HOME funds to eligible housing projects or programs when they are identified. No projects or programs have been identified for this Agreement term.

Prepared by: Amy Cole-Bloom, Management Analyst

Recommended by: Dustin Claussen, Assistant City Manager Christina Morales, Housing Division Manager

Approved by:

_________________________________
Kelly McAdoo, City Manager

ATTACHMENT II

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HAYWARD CITY COUNCIL

RESOLUTION NO. 23-

Introduced by Council Member _____________

RESOLUTION AUTHORIZING THE CONTINUED PARTICIPATION OF THE CITY

OF HAYWARD IN THE ALAMEDA COUNTY HOME CONSORTIUM FOR HOME

FUNDS AND AUTHORIZING EXECUTION OF THE NECESSARY DOCUMENTS TO

MAINTAIN THE ELIGIBILITY OF THE CONSORTIUM FOR HOME PROGRAM

FUNDS IN ACCORDANCE WITH THE NATIONAL AFFORDABLE HOUSING ACT OF 1990

WHEREAS, the Con gress of the United States has enacted the Cranston -Gonzalez National Affordable Housing Act of 1990 and Federal regulations have been adopted pursuant thereto, hereinafter called the “Act”; and

WHEREAS, Title II of the Act creates the HOME Investment Partnership Program hereinafter called “HOME,” that provides funds to participating jurisdictions for acquisition, rehabilitation, new construction of affordable housing, homebuyer and tenant -based rental assistance; and

WHEREAS, the Act allows local gov ernments to form consortia for the purpose of receiving and administering HOME funds and carrying out purposes of the Act; and

WHEREAS, the cities of Alameda, Fremont, Hayward, Livermore, Pleasanton, San Leandro and Union City have expressed their intere st in joining with the Alameda County Urban County (consisting of the cities of Albany, Dublin, Emeryville, Newark, Piedmont, and the unincorporated County) to continue in the Alameda County HOME Consortium for federal fiscal years 2024, 2025, and 2026;

NOW, THEREFORE, BE IT RESOLVED, that:

1. The City Council of the City of Hayward hereby authorizes the City of Hayward continued participation in the Alameda County HOME Consortium.

2. The City Council of the City of Hayward hereby authorizes the City Manager to execute the necessary documents to maintain the eligibility of the Consortium for HOME program funds in accordance with the National Affordable Housing Act of 1990.

ATTACHMENT II

Page 2 of 2 ends

IN COUNCIL, HAYWARD, CALIFORNIA , 2023
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 23-198
DATE: April 11, 2023
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, 2022, and of the Memorandum on Internal Control and Required Communications

RECOMMENDATION
That the Council adopts a resolution (Attachment II) to receive and file the City’s Annual Comprehensive Financial Report (ACFR) (Attachment III) for the fiscal year ended June 30, 2022.

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 2022 is without exception and is unmodified. There were no significant findings with respect to either the City’s FY 2021 financial statements or FY 2022 statements.

ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
Attachment III FY 2022 Annual Comprehensive Financial Report CITY OF HAYWARD Printed on 4/7/2023Page 1 of 1
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Page 1 of 3 ends

DATE: April 11, 2023

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, 2022, and of the Memorandum on Internal Control and Required Communications

RECOMMENDATION

That the Council adopts a resolution (Attachment II) to receive and file the City’s Annual Comprehensive Financial Report (ACFR) (Attachment III) for the fiscal year ended June 30, 2022.

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 2022 is without exception and is unmodified. There were no significant findings with respect to either the City’s FY 2021 financial statements or FY 2022 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, 2022. The City’s Annual Comprehensive Financial Report (ACFR) represents all funds of the City, including the General Fund, Water, Sewer, Airport, 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

Page 2 of 3 ends

Council and staff, convey audit matters, the scope of work, difficulties encountered, adjustments to financial statements, or any possible disagreements with management.

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 2022 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 2022 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-six 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 2022 Finding

There were no significant audit findings.

FY 2021 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 19, 2022, Maze & Associates presented to the Council Budget and Finance Committee an overview of the fiscal year 2022 audit process and the role of the external auditor.

Page 3 of 3 ends

Prepared by and Recommended by: Nicole Gonzales, Director of Finance

Approved by:

Kelly McAdoo, City Manager

ATTACHMENT II

Page 1 of 1 ends

HAYWARD CITY COUNCIL

RESOLUTION NO. 23-______

Introduced by Council Member __________________

RESOLUTION ACCEPTING THE COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2022; AND THE

MEMORANDUM ON INTERNAL CONTROL AND REQUIRED

COMMUNICATIONS

WHEREAS, the audit of the financial statements and internal controls of the City of Hayward has been completed for the year ended June 30, 2022, 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, 20 22, and the accompanying Memorandum of Internal Control and Required Communications letters.

HAYWARD, IN COUNCIL, HAYWARD, CALIFORNIA _______________________, 2023.

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

ATTACHMENT III

Blank page behind cover

CITY OF HAYWARD, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR FISCAL YEAR ENDED JUNE 30, 2022
Prepared by:

Accounting Division, Department of Finance
This
Page Left Intentionally Blank

INTRODUCTORY SECTION

This Page Left Intentionally Blank

CITY OF HAYWARD, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR FISCAL YEAR ENDED JUNE 30, 2022

TABLE OF CONTENTS
Pages

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

FINANCIAL SECTION
Independent Auditor’s Opinion ................................................................................................................................ 1 Management’s Discussion and Analysis .................................................................................................................. 5 Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position ...................................................................................................................... 19 Statement of Activities .......................................................................................................................... 20 Fund Financial Statements:

Governmental Funds:

Balanc e Sheet ..................................................................................................................................... 24 Reconciliation of Governmental Fund Balances to Net Position of Governmental Activities ......... 26 Statement of Revenues, Expenditures, and Changes in Fund Balances ........................................... 28 Reconciliation of the Net Change in Fund Balances – Total Governmental Funds with the Statements of Activities ......................................................................................... 30 Proprietary Funds:

Statement of Net Position .................................................................................................................. 32 Statement of Revenues, Expenses and Changes in Fund Net Position ............................................. 33 Statement of Cash Flows ................................................................................................................... 34 Fiduciary Funds:

Statement of Fiduciary Net Position .................................................................................................. 36 Statement of Changes in Fiduciary Net Position ............................................................................... 37 Notes to Basic Financial Statements ............................................................................................................ 39 Required Supplemental Information:

Schedule of Changes in the Net Pension Liability and Related Ratios (Miscell aneous Plan) ....................................................................................................................... 98 Schedule of Contributions (Miscellaneous Plan) ............................................................................ 100 Schedule of Changes in the Net Pension Liability and Related Ratios (Safety – Fire Plan) ........................................................................................................................ 102 Schedule of Contributions (Safety – Fire Plan) ............................................................................... 104 Schedule of Changes in the Net Pension Liability and Related Ratios (Safety – Police Plan) .................................................................................................................... 106 Schedule of Contributions (Safety – Police Plan) ........................................................................... 108 FINANCIAL SECTION (Continued):

Required Supplemental Information (Continued):

Schedule of Changes in the Net OPEB Liability and Related Ratios ............................................. 110 Schedule of Contributions – Other Postemployment Benefits ........................................................ 111 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General Fund and Major Special Revenue Funds:

General Fund ............................................................................................................................. 114 Federal Grants Special Revenue Fund ...................................................................................... 115 American Rescue Plan Act Special Revenue Fund ................................................................... 116 Supplemental Information:

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

Housing Authority Capital Project Fund ................................................................................... 118 General Capital Projects Capital Project Fund .......................................................................... 119 Combining Balance Sheets – General Fund .............................................................................................. 122 Combining Schedules of Revenues, Expenditures and Changes in Fund Balance – General Fund ........................................................................................................................................... 123 Non-major Governmental Funds:

Combining Ba lance Sheets ................................................................................................................... 128 Combining Statements of Revenues, Expenditures, and Changes in Fund Balances ............................................................................................................................. 134 Combining Schedules of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual ............................................................................................. 140 Non-major Enterprise Funds
Combining Statemen ts of Net Position ................................................................................................ 150 Combining Statements of Revenues, Expenses and Changes in Fund Net Position ........................... 151 Combining Statemen ts of Cash Flows ................................................................................................. 152 Internal Service Funds:

Combining Statemen ts of Net Position ................................................................................................ 154 Combining Statements of Revenues, Expenses and Changes in Fund Net Position ........................... 156 Combining Statemen ts of Cash Flow ................................................................................................... 158 Fiduciary Funds:

Combining Statement of Fiduciary Net Position - Custodial Funds .................................................... 162 Combining Statement of Changes in Fiduciary Net Position – Custodial Funds ................................ 163 STATISTICAL SECTION (Unaudited)
Net Position by Component – Last Ten Fiscal Years .................................................................................. 169 Changes in Net Position – Last Ten Fiscal Years ........................................................................................ 170 Fund Balances of Governmental Funds – Last Ten Fiscal Years ................................................................ 174 Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years .............................................. 176 Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ................................. 178 Property Tax Rates - All Overlapping Governments – Last Ten Fiscal Years ............................................ 179 Principal Property Taxpayers – Current Year and Ten Years Ago .............................................................. 180 Property Tax Levies and Collections – Last Ten Fiscal Years .................................................................... 181 Ratio of Outstanding Debt by Type– Last Ten Fiscal Years ....................................................................... 182 Computation of Direct and Overlapping Debt ............................................................................................. 183 Computation of Legal Bonded Debt Margin – Last Ten Fiscal Years ........................................................ 184 Revenue Bond Coverage Wastewater Revenue Bonds – Last Ten Fiscal Years ....................................... 185 STATISTICAL SECTION (Unaudited) (Continued)
Bonded Debt Pledged Revenue Coverage, Tax Allocation Bonds- Last Ten Fiscal Years ........................ 186 Demographic and Economic Statistics – Last Ten Fiscal Years ................................................................. 187 Principal Employers – Current Year and Ten Years Ago ............................................................................ 188 Full-Time Equivalent City Government Employees by Function – Last Ten Fiscal Years ........................ 189 Operating Indicators by Function/Program – Last Five Fiscal Years .......................................................... 190 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years ....................................................... 192 This Page Left Intentionally Blank

Department of Finance – Finance Administration T: 510.583.4010 F: 510.583.3600 777 B Street, Hayward, CA 94541 www.hayward-ca.gov March 16, 2023
Honorable Mayor, Members 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, 2022. 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 manner 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, California. 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, 2022, 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 financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of Hayward, California’s financial statements for the year ended June 30, 2022, are fairly presented in conformity with GAAP. The Independent Auditors’ Report is presented as the first component of the financial section of this Report. i
ACFR
March 16, 2023
ii
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 (to be issued in March 2023).

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 160,591, 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; transportation 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 Hayward 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 interest 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 understood when it is considered within 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. In fiscal year 2022, the City of Hayward economy continued experiencing healthy recovery from the impacts of the pandemic.

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The Employment Development Department data reflects that the unemployment rate in Alameda County as of November 2022 was 3.1%, which is down from 6.1% in 2021.

Hayward has seen a year over year increase of 3.0% in its assessed valuation in 2022. The median residential home value is about $884,351 in December 2022 versus $876,343 a year ago.

The total Assessed Valuation for Hayward has grown from $15.2 billion in FY 2012 to $26 billion in FY 2022, 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 4% in FY 2022 as compared to FY 2021.

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, ($20.6 million in FY 2022) dramatically increased 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 2022 was $17.3 million.

The City’s transfers tax revenue went up by $4.1 million or 24% in fiscal year 2022 compared to fiscal year 2021 due to growing demand.

While the City tries to remain optimistic, 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 to offset the impacts on revenues.

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Factors Affecting the City’s Financial Condition
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 prim
e 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. While the City has consistently worked to balance its budget, Hayward must continue this effort and make 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 updates 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 Spring 2022, the Hayward City Council adopted an update to the City’s “Strategic Roadmap,” which included six revised priority areas: Preserve, Protect & Produce Housing for All; Grow the Economy; Confront Climate Crisis & Champion Environmental Justice; Invest in Infrastructure; Strengthen Organizational Health; and Enhance Community Safety & 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.

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Capital Improvement Program
One way through which the City implements the Strategic Priorities is through the Capital Improvement Program (CIP), which guides all of the capital infrastructure replacement and improvement efforts throughout the City. The capital budget for FY22 totaled about $157 million, with approximately $562 million tentatively programmed for the entire ten-year period from FY22 through FY31. While the City’s CIP Projects touch the Confront Climate Crisis & Champion Environmental Justice, Enhance Community Safety & Quality of Life, and Strengthen Organizational Health Priorities, they predominantly support the Invest in Infrastructure Priority.

Invest in Infrastructure Priority
Mission Blvd Phases 3: Phase 3 of the Mission Boulevard Corridor Improvement Project, from A Street to the northern City limit at Rose Street, is the last phase of the three-phase Mission Blvd Corridor Improvement Project. Improvements will include undergrounding overhead utilities, electrical service conversions of private properties, construction of a bicycle cycle track, sidewalk, curb and gutter, rehabilitation of pavement, installation of traffic signals and streetlights, installation of traffic striping, pavement marking and signage, improvements to storm drains systems, installation of irrigation system and landscaping, as well as City of Hayward monument signs. The construction bids received in 2021 to implement this project were significantly higher than expected and subsequently rejected, delaying the project timeline. Staff also applied for grant opportunities to help close the funding gap. The call for bids was reinitiated in January 2023 and construction is anticipated to start in early Summer 2023.

Linear Park Project: In April 2022, construction began on the approximately one-mile stretch of Linear Park along the eastern side of Mission Blvd, roughly from Blanche Street to Fairway Street. The project included reshaping flat landscape areas to echo the East Bay Hills, planting trees and native plants, using recycled concrete to expand pathways, adding seating using reclaimed wood and upcycled materials, and adding artwork to crosswalks, among a number of other improvements. Construction was substantially completed in Fall 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. Construction started in August 2020 and is anticipated to be complete in Spring 2023.

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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 were also completed in, and recycled water deliveries to the first phase of customers began in Spring FY2022. 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: Routine maintenance of Airport-owned hangars is provided by staff and contractors, but due to the age of the structures, a consultant was hired in FY19 to provide a comprehensive hangar condition assessment that was completed in mid-FY20. A 10-year maintenance schedule was subsequently developed, and repair and replacement work began in FY20, including the installation of LED lighting and extensive roof improvements. Work has continued through FY 2022, during which improvements were completed on Hangar Buildings “B,” “C,” “D,” and “E.”
Safe Routes to School Program: The Alameda County Transportation Commission (ACTC) recently conducted School Safety Assessments for all fourteen public schools in Hayward, resulting in a set of infrastructure recommendations to make it easier for students to bike and walk to school. Hayward's new Safe Routes to School (SR2S) Program has been created to implement these recommendations. In collaboration with partners including Hayward Unified School District, ACTC, and various community organizations, the Program will combine engineering tools with safety education and other activities to encourage students to choose alternate modes of transportation on their way to school.

The City's first SR2S project began in FY 2022 near Cesar Chavez Middle School, and includes installation of curb and median extensions, advanced stop and yield marking, yellow high-visibility crosswalks, rectangular rapid flashing beacons (RRFB), and more.

Fifty percent of the project budget is being funded by an ACTC SR2S grant.

Safe Routes for Seniors Program: The City of Hayward's Safe Routes for Seniors (SR4S) Program is a collaborative effort between the City and local senior housing facilities, senior centers, and community-based organizations. Through these partnerships, the City is working to identify areas in Hayward at which to focus accessibility and walkability improvements. In FY 2022, the City's first SR4S effort was implemented, which involved the improvement of four downtown Hayward intersections, including Foothill Blvd/Hazel Ave-City Center Dr, Montgomery Ave/A St, Montgomery Ave/B St, and Watkins Ave/D St.

Improvements included increased pedestrian crossing times, installation of high-visibility ADA ramps, repositioning of cross walks and pedestrian push buttons to align with ADA improvements, and widening medians for pedestrian refuge, among many others. The SR4S Program receives annual support from dedicated Measure BB (Paratransit) funding.

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Confront Climate Crisis & Champion Environmental Justice 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, and the useful life of these fleet units is maximized and managed via the 10 Year 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 a key consideration.

After a successful hybrid patrol vehicle pilot in FY 2021, Fleet Management updated the standard specifications for Hayward Police patrol vehicles, and all new patrol cars will be hybrid-powered models. In FY 2022, a total of ten patrol cars were ordered to replace vehicles that have reached the end of their useful life, and all vehicles ordered were hybrid
s. Once received and placed into service, the fleet vehicle matrix will consist of 16% EV/hybrid units.

Staff are also working to invest in EVs where possible and within current replacement cycles and budget parameters. While staff is working aggressively to meet this goal, global supply chain and production issues have delayed the timely delivery of all fleet vehicles.

Enhance Community Safety & Quality of Life Priority
South Hayward Youth & Family Center: Since 2013, the City of Hayward, Alameda County (County), and Hayward Area Recreation and Parks District (HARD) have worked towards a shared vision of constructing and operating a new center at the corner of Tennyson and Ruus Roads called the South Hayward Youth and Family Center (SHYFC) -- also known as "The Stack Center." The project site is on City-owned property and located at 680 West Tennyson Road. The City now has the funding to build Phase I of the campus, including contributions from the State and Federal governments. Staff continue to fundraise to close the funding gap for Phase II of the campus.

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. La Vista Park is planned to include a soccer field, bike terrain park, basketball courts, an amphitheater, dog park, zip-line, playgrounds, picnic areas, walking/hiking trails, science garden, water play area, observation points, and open
areas. In FY 2022, the California Environmental Quality Act (CEQA) report was updated to include the park expansion area, and staff are currently working with consultants to finalize the design. Construction bid documents are anticipated to be completed by Spring 2023, and construction is planned to commence in late Spring or early Summer 2023.

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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 involved new trees, plants, bark chips, pavers, and more, was 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 commenced in FY23.

Municipal Parking Lot Improvements: As part of the City’s ongoing effort to improve its municipal parking lots and maximize accessibility in Downtown Hayward, Municipal Lot 1 received significant improvements in FY22 including an upgraded parking configuration, new sidewalk, and ADA-compliant parking spaces. The pavement in the lot was also rehabilitated, additional landscaping and irrigation was installed, LED lighting and parking stall conditions were upgraded, and infrastructure necessary for future vehicle charging stalls were constructed.

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 an AA rating from both Fitch and Standard & Poor’s of the 2015 Certificates of Participation and an 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 outlook 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+ Issuer 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 - 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.

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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 policies 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 annual 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, appropriating the current year’s expenditures in the annual budget. The level of control (that is, the level at which expenditures cannot legally exceed the appropriated 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.

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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 term). At the end of fiscal year 2022, the City had total debt outstanding of $112.12 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 investment 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 2022, 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 2022, the unassigned fund balance of the General Fund was $34.2 million, while the total fund balance was $57.9 million (includes non-cash outstanding receivables of over $3.6 million and $20 million in Measure C District Tax cash balance). The unassigned fund balance represents 15.2% of total General Fund expenditures of $224.5 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 seventh 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.
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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 com mendation for their
dedication and hard work. I would like to express special appreciation to Marichu Maramba, Accounting 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,
Nicole Gonzales
Director of Finance
City of Hayward

CITYWIDE ORGANIZATION
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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
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Appointed by City Council
City Manager Kelly McAdoo
City Attorney Michael Lawson
City Clerk Miriam Lens
Department Directors
Assistant City Manager
Assistant City Manager
Development Services (interim)
Finance
Fire
Human Resources (interim)
Information Technology
Library
Maintenance Services
Police
Public Works & Utilities
Jennifer Ott
Regina Youngblood
Jennifer Ott
Dustin Claussen
Chief Garrett Contreras
Regina Youngblood
Adam Kostrzak
Jayanti Addleman
Todd Rullman
Chief Toney Chaplin
Alex Ameri

ADMINISTRATIVE STAFF
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Hayward
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
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FINANCIAL SECTION
This Page Left Intentionally Blank
INDEPENDENT AUDITOR’S OPINION
To the Honorable Members of the City Council
City of Hayward, California
Report on the Audit of the Financial Statements
Opinions
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, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the Table of Contents.

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, 2022, 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.

We did not audit the financial statements of the Ea st Bay Dischargers Authority, which represent 1.90%,

2.48% and 9.36%, respectively, of the assets, net pos ition and revenues of the business-type activities.

Those statements were audited by other auditors whos e report has been furnishe d to us, and our opinion, insofar as it relates to the amounts included for the East Bay Dischargers Authority, is based solely on the report of the other auditors.

Basis for Opinions
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. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be inde pendent of the City and to meet ou r other ethical responsibilities, in accordance with the relevant ethical requirement relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fa ir presentation of these financial statements in accordance with accounting principles generally acce pted in the United States of America, and for 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.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substa ntial doubt about the City’s ability to continue as a going concern for twelve months beyond the financ ial statement date, incl uding any currently known information that may raise substantial doubt shortly thereafter. 1 Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Misstatements are considered material if, individually or in the aggregate, they could reasonably be expected to influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:

• Exercise professional judgment and maintain professional skepticism throughout the audit.

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circum stances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.

• Evaluate the appropriateness of accounting policie s used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

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

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

Change in Accounting Principles

Management adopted the provisions of Governmental Accounting Standards Board Statement No. 87, Leases, which became effective during the year ended June 30, 2022 and required the restatement of certain lease-related balances as discussed in Note 1 and Note 4 to the financial statements.

The emphasis of this matter does not constitute a modification to our opinions.

2 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 statem ents. Such information is the responsibility of management and, although not a part of the basic fina ncial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary 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 accompanying Supplementary Information, as listed in the Table of Contents, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the res ponsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.

The information has been subjected to the auditing pro cedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Supplementary Information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the Introductory Section a nd Statistical Section listed in th e Table of Contents, but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists betw een the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrect ed material misstatement of the other information exists, we are required to describe it in our report.
3 Other Reporting Required by
Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 16, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opini on on the effectiveness of the City’s internal control over financial reporting or on compliance. That repo rt 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
March 16, 2023
4 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, 2022. 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 $543.6 million (total net position). Excluding the $347.1 million net pension liability, $237.4 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 $68.7 million over fiscal year 2021.

Governmental activities, including the General Fund, increased by $57.2 million and Business-type activities increased by $11.5 million.
 As of June 30, 2022, the City’s governmental funds reported combined fund balances of $190.1 million, a decrease of $8.2 million from the prior year.  At the end of fiscal year 2022, total fund balance for the General Fund, including Measure C, is $57.9 million, a decrease of $8.3. million over fiscal year 2021. Of the total, the General Fund ending fund balance is $37.9 million, and Measure C ending fund balance is $20.0. The total fund balance is comprised of $3.6 million in non-spendable (illiquid reserves), $20.0 million in assigned (liquid reserves designated for specific purposes), and $34.3 million in spendable fund balance designated for contingencies, economic uncertainty, emergencies, and liquidity by City Council. The $34.2 million in unassigned fund balance represents 15.2% of total General Fund expenditures including Transfers Out.

The $3.6 million in non-spendable reserves offsets a long-term loan receivable (General Fund loan to the Redevelopment Successor Agency).
 Fiscal year 2022 ended with a net increase to the General Fund, General Purpose Fund Reserve of $1.7 million (net of Measure C district sales tax revenues).  As of June 30, 2022, the City’s enterprise funds (Sewer, Water, Stormwater and Airport) reported a combined ending net position of $380.1 million; an increase of $11.5 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 ar
e 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 19-21) 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 8) 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 10) 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 24-30) 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 118 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 32-34) 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 36-37) 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 39-95) 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 122 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 $543.6 million at the close of the current fiscal year, an increase from the prior year of $68.7 million. The change in the combined net position includes an increase of $57.2 million in Governmental Activities, and an increase of $11.5 million in Business-type Activities.

Table 1 – City of Hayward Statement of Net Position
(in millions)
The largest portion of the fiscal year 2022 City’s net position, $531.6 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.

Governmental Business-type
A
ctivities Activities
2022 2021 2022 2021 2022 2021
Assets
Current and other assets $309.3 $297.9 $311.9 $272.6 $621.3 $570.5 Capital assets 456.9 433.2 184.3 188.0 641.2 621.2
Total assets 766.3 731.1 496.2 460.6 1,262.5 1,191.7
Deferred outflows 64.2 62.7 5.6 4.1 69.8 66.7
Liabilities
Long term debt outstanding 73.6 79.4 38.5 42.6 112.1 122.0 Other liabilities 480.1 575.7 45.5 47.9 525.5 623.6
Total liabilities 553.7 655.1 84.0 90.5 637.6 745.6
Deferred inflows 113.2 32.3 37.8 5.5 151.0 37.9
Net position:

Net investments in capital assets 385.8 357.5 145.8 145.3 531.6 502.8 Restricted 121.7 117.7 0.0 0.0 121.7 117.7
Unrestricted* (344.0) (368.8) 234.3 223.2 (109.7) (145.6) Total net position $163.5 $106.4 $380.1 $368.6 $543.6 $474.9 * Unrestricted net position for June 30, 2022, included the City's $347.1 million net pension liability, which is not a cl
aim on current financial assets.

Total
8 In fiscal year 2022, the City’s net position included $69.8 million in deferred outflows of resources.

Of this amount, $51.5 million is related to pensions. This includes $43.8 million related to pension contributions after the measurement date, as well as $7.7 million attributable to changes in calculation assumptions and differences between expected and actual trust fund performance. $17.8 million of the deferred outflows are related to other post-employment benefits (OPEB). $9.2 million of these OPEB related deferred outflows is related to employer contributions after the measurement date and $8.6 million is related to changes in assumptions and trust performance.

Finally, $0.5 million in outflows is related to 2016 refunding of certificates of participation, resulting in a deferred loss.

The City’s long-term debt of $112.1 million includes $10.5 million due within one year, as well as an additional $101.6 million due in future years.

The largest share of the City’s other liabilities is comprised of $347.1 million in net pension liabilities and $69.8 million in OPEB liabilities, as detailed in Note 13 and Note 15, respectively.

Other major liabilities include $29.8 million in accrued liabilities, $32.8 in unearned revenue, $25.1 million in accounts payable, $11.2 million in total compensated absences, and $8.8 million in refundable deposits.

Deferred inflows of resources totaled $151.0 million in fiscal year 2022, $26.3 million related to leases, $92.8 million related to pensions and $31.9 million related to OPEB. Pension-related deferred inflows are comprised of $4.1 million in differences between actual and expected experience; $0.3 million in changes to calculation assumptions; and $88.5 million in net difference between projected and actual earnings on investme nts. OPEB-related deferred inflows consist of $27.3 million in changes to calculation assumptions, $2.2 million in difference between projected and actual earnings and $2.5 million difference between expected and actual experience.

A portion of the City's net position, $121.7 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 $347.1 million net pension liability, $237.4 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 $57.2 million.

9 Table 2 – City of Hayward Statement of Activities and Change in Net Position (in millions)

2022 2021 2022 2021 2022 2021
Program re ve nue s
Charges for services $24.0 $23.4 $100.6 $99.3 $124.5 $122.7 Operating contributions and grants 34.7 29.5 - - 34.7 29.5 Capital contributions and grants 3.6 5.4 - - 3.6 5.4

62.2 58.3 100.6 99.3 162.8 157.6 General revenues
Property tax 65.0 62.2 - - 65.0 62.2 Sales tax 64.7 58.7 - - 64.7 58.7 Utility user tax 17.3 17.3 - - 17.3 17.3 Real property transfer tax 21.2 17.1 - - 21.2 17.1 Franchise fees 10.5 10.6 - - 10.5 10.6 Other taxes 16.0 15.1 - - 16.0 15.1 Investment earnings (3.9) 1.1 (4.9) 1.1 (8.8) 2.2 Gain on sale of land for resale - 3.4 (1.0) - (1.0) 3.4 Gain on sale of capital assets 0.0 0.1 - - 0.0 0.1 Miscellaneous 9.4 18.7 - - 9.4 18.7 General revenues subtotal 200.3 204.2 (5.8) 1.1 194.4 205.3 Total Revenues 262.5 262.5

94.7 100.4 357.2 362.9
Expenses by activity
General Government 19.3 24.8 - - 19.3 24.8 Public safety 120.1 139.4 - - 120.1 139.4 Public works and transportation 25.6 26.5 - - 25.6 26.5 Library and neighborhood services 12.4 11.4 - - 12.4 11.4 Economic development 6.7 3.0 - - 6.7 3.0 Planning and building 10.5 10.4 - - 10.5 10.4 Maintenance services 12.5 12.4 - - 12.5 12.4 Interest on long term debt 2.3 2.6 - - 2.3 2.6 Sewer - - 23.1 21.9 23.1 21.9 Water - - 48.8 49.1 48.8 49.1 Airport - - 4.3 3.4 4.3 3.4 Stormwater - - 2.7 2.7 2.7 2.7 Recycling - - 0.2 0.3 0.2 0.3 Total expenses 209.4 230.5 79.1

77.5 288.5 308.0
Increase (decrease) before transfers 53.1 32.0 15.6 22.9 68.7 54.9 Transfers 4.1 3.2 (4.1) (3.2) - - Change in Net Position 57.2 35.2 11.5 19.7 68.7 54.9 Beginning Net Position 106.4 71.2 368.6 348.9 475.0 420.1 Ending Net Position (June 30) $163.6 $106.4 $380.1 $368.6 $543.5 $475.0 Governmental Activities Business-type Activities Total
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). Major changes in government-wide revenues include the following:

 Operating Contributions and Grants increased by $5.1 million compared to prior year due primarily from ARPA funding that the City recognized in FY2022.  Capital contributions and grants decreased slightly by $1.8 million over the prior year due to reduction of completed projects.
 Property Taxes increased by $2.7 million over the prior year, due to continued growth in residential use property values.
 Sales Taxes increased by $6.0 million over the prior year, due to continued strength of online sales and increased collections.
 Real Property Transfer Tax increased by $4. 1 million over 2021, due to increase in real estate transactions as home values increased.
 A Gain on Sale of Land for Resale resulting from the sale of additional City property along Route 238 increased one-time revenues in 2021 by $3.4 million, with a corresponding decrease in 2022.
 Miscellaneous Revenue decreased by $9.2 million compared to 2021, due to reimbursement received from community college school district for Fire Station Training Center.

Chart 1 – Revenues by Source – Governmental Activities for Fiscal Year 2022

11 Governmental Activities Expenses
The governmental expenses (excluding transfers) decreased by $21.1 million to $209.4 million.

Operational cost reductions of $5.5 million in general government expenditures were offset by decreased of $19.3 million in public safety costs, $0.9 million in public works costs, and a net increase of $4.6 million across other government al activities expenditures. A significant portion of the decrease in expenditures is due to public works costs associated with the 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 2022 Business-Type Activities. The net position of business-type activities was $380.1 million at June 30, 2022, an increase of $11.50 million from last fiscal year. Program revenues totaled $95.7 million, while program expenses totaled $79.1 million.

As the Revenue by Source chart indicates, charges for utility services account for 105.1% of the revenue for the City’s enterprise funds. Most of the revenues are generated by the Water and Sewer enterprises.

Chart 3 – Revenues by Source – Business-type Activities 12 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 $1.2 million, water increased by $8.7 million, and Stormwater increased by $2.4 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 $0.2 million.

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 2022, the City’s governmental funds reported combined ending fund balances of $190.1 million, a decrease of $8.2 m illion over prior year. Of this amount, 82.0% ($155.9 million) represents Non-Spendable, Restricted, and Assigned fund balances; and 18.0% 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 pres ented as other funds. The General Fund accounted for 77.6% of the total governmental revenues and 68.5% 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.
13 At the end of fiscal year 2022, the General Fund’s Unassigned fund balance was $34.2 million (exclusive of Measure C), an increase of $2.8 million over the prior year. The total fund balance, inclusive of Non-spendable and Assigned balances, was $57.9 million, a net decrease of $8.3 million from the prior fiscal year. General Fund increased by $1.7 million related to significant increase in real property transfer tax, property, and sales tax revenues. The decrease of $10.0 million in fund balance in the Measure C District Sales Tax fund is primarily due to a change in transfers out to Measure C capital improvement fund to cover expenses related to New Fire Training Center project.

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 15.3% of total General Fund expenditures of $224.5 million (including Transfers Out).

General Fund Budgetary Highlights.

Fiscal year 2022 ended with a Net Change in Fund Balance of -$8.3 million (GAAP Basis).

Table 3 – Fiscal Year 2022 General Fund Budget Summary (in thousands) A B C
(reflected in thousands)
2022
Adopted
2022
Adjusted
2022
Actual
Variance
(C-B)
Variance
%
Revenues 193,548 198,348 205,880 7,532 3.3%
Expenditures (175,016) (179,991) (181,882) (1,891) 1.1% Transfers In/(Out) (38,290) (30,689) (32,299) (1,610) 5.2% Net Change in Fund Balance
(Budget Basis)
(19,758) (12,332) (8,301) 4,031

The net change in fund balance for fiscal year 2022 based on actual performance (column C) is negative $8.3 million. The net change in fund balanc e is primarily attributed to federal pandemic response funding. This fund balance summary on page 30 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 negative $8.3 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, American Rescue Plan Act, 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.
14 _______________________________________
$ $ $ $
$ $ $ $

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. At the end of fiscal year 2022, the fund balance decreased by $3.9 million due to project costs related to Fire Station Training Center project.

American Rescue Plan Act Fund Accounts for revenues and expenditures related to American rescue plan act of 2021.

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 2022, the unrestricted net position of the Sewer and Water Funds amounted to $109.9 and $112.7 million, respectively. Sewer net position increased by $1.2 million and Water net position increased to $8.7 million. This increase in net position for Sewer is significantly less than in fiscal year 2021, in which Sewer and Water net position increased $10.1 million and $11.6 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 2022 the fund ended with a net position of $10 million, an increase of $2.1 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.

Capital Asset and Debt Administration

Capital Assets. As of June 30, 2022, the City’s investments in capital assets for its governmental and business-type activities are $641.2 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 3.2%, 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)

Additional information on the City’s capital assets can be found in Note 6 to the basic financial statements.

2022 2021 2022 2021 2022 2021
Land $19.2 $19.0 $4.8 $4.8 $24.0 $23.7
Construction in progress 62.1 42.6 24.9 19.7 87.0 62.3 Buildings 70.4 71.9 13.7 14.3 84.1 86.2 Improvements other than buildings 61.2 47.1 - - 61.2 47.1 Machinery and equipment 23.7 23.0 52.5 54.7 76.2 77.6 Street infrastructure 220.2 229.8 - - 220.2 229.8 Sewer infrastructure - - 54.3 57.8 54.3 57.8 Water infrastructure - - 27.0 28.8 27.0 28.8 Airport infrastructure - - 7.2 7.9 7.2 7.9 Total $456.9 $433.2 $184.3 $188.0 $641.2 $621.2
G overnm ental Activities Business-type Activities Total 15 Debt Administration. At the end of fiscal year 2022, the City had total bonded debt outstanding of $112.1 million as presented in Table 5. This re presents a decrease of $9.9 million versus the prior year. Of the total outstanding bond debt, $59.5 million represents certificates of participation debt for Civic Center Project (City Hall) and 21 st Century Library; $9.7 million for private placement certificates of participation for Fire Station and Wellness Center; $0.6 million represents capital leases for a solar power generator, fleet vehicles, computer, and telephone equipment; $34 million represents State Water Board financing for a water pollution control facility; $2.0 million private placement lease; $2.6 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.

Table 5 – City of Hayward Outstanding Debt
(in millions)

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 9 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, 2022, a total of $4.6 million in special assessment district debt was outstanding by four special assessment districts. (Further detail regarding the City debt can be found in Note 9 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 overview 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. 2022 2021 2022 2021 2022 2021
Certificates of Participation $59.5 $63.0 - - $59.5 $63.0 Private Placement Certificate of Participation 9.7 11.5 - - 9.7 11.5 Capital Lease Equipment 0.3 - - - 0.3 - Capital Lease Obligations 0.6 0.8 - - 0.6 0.8 Private Placement Loan 3.0 3.4 2.0 2.6 5.0 6.0 State Water Resources Control Board Loan - - 34.0 37.1 34.0 37.1 State Energy Resources Conservation 0.4 0.7 2.6 2.9 3.0 3.5 Total Long-Term Debt $73.6 $79.4 $38.5 $42.6 $112.1 $122.0 Business-type TotalGovernmental Activities
16 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.
17 This Page Left Intentionally Blank

CITY OF HAYWARD

STATEMENT OF NET POSITION
JUNE 30, 2022
Governmental Business-T ype
Activities Activities Total
ASSETS:

Cash, cash equivalents, and investments (Note 2) $232,505,769 $249,070,674 $481,576,443 Cash, cash equivalents, and investments with fiscal agents (Note 2) 7,690,832 2 7,690,834 Accounts receivable, net 7,725,460 19,603,279 27,328,739 Due from other governments 17,366,423 24,780 17,391,203 Interest receivable 70,217 65,625 135,842
Internal balances (Note 5) (2,937,681) 2,937,681
Loans receivable (Note 3) 32,261,617 32,261,617
Leases receivable (Note 4) 26,529,550 26,529,550
Long-term loans to the Private Purpose Trust Fund (Note 20) 7,539,979 7,539,979 Land held for resale (Note 1) 6,838,652 6,838,652
Deposits, parts, supplies and other 281,569 4,283,914 4,565,483 Investment in East Bay Dischargers Authority (Note 17) 9,416,305 9,416,305 Capital assets (Note 6):

Land 19,246,485 4,757,492 24,003,977
Construction in progress 62,135,175 24,875,307 87,010,482 Depreciable capital assets, net 375,525,793 154,671,819 530,197,612 Total assets 766,250,290 496,236,428 1,262,486,718

DEFERRED OUTFLOWS OF RESOURCES
Related to pensions (Note 13) 48,810,189 2,667,632 51,477,821 Related to OPEB (Note 15) 14,885,698 2,951,934 17,837,632 Deferred loss on refunding (Note 7) 468,608 468,608
Total deferred outflows of resources 64,164,495 5,619,566 69,784,061 LIABILITIES:

Accounts payable 18,389,470 6,723,494 25,112,964
Accrued interest 417,762 332,588 750,350
Accrued liabilities 29,090,630 731,805 29,822,435
Unearned revenue 32,158,259 643,053 32,801,312
Refundable deposits 4,861,185 3,916,866 8,778,051
Accrued reclamation costs, due within one year (Note 11) 125,000 125,000 Compensated absences (Note 1):

Due within one year 7,848,927 1,133,611 8,982,538
Due in more than one year 1,832,678 397,484 2,230,162
Long-term debt (Note 7):

Due within one year 6,349,202 4,153,260 10,502,462
Due in more than one year 67,248,296 34,370,238 101,618,534 Net pension liabilities, due in more than one year (Note 13) 327,215,657 19,901,153 347,116,810 Net OPEB liability, due in more than one year (Note 15) 58,252,041 11,551,770 69,803,811 Total liabilities 553,664,107 83,980,322 637,644,429
DEFERRED INFLOWS OF RESOURCES:

Related to leases (Note 4) 26,271,038 26,271,038
Related to pensions (Note 13) 86,574,095 6,271,109 92,845,204 Related to OPEB (Note 15) 26,633,953 5,281,692 31,915,645 Total deferred inflows of resources 113,208,048 37,823,839 151,031,887 NET POSITION (Note 10):

Net investments in capital assets 385,787,176 145,781,120 531,568,296 Restricted for:

Public safety 355,389 355,389
Debt service 7,194,360 2 7,194,362
Public works and transportation 35,867,902 35,867,902
Planning and building 37,505,211 37,505,211
Economic development 40,798,425 40,798,425
Total restricted net position 121,721,287 2 121,721,289 Unrestricted (343,965,833) 234,270,711 (109,695,122)
Total net position $163,542,630 $380,051,833 $543,594,463 See accompanying notes to basic financial statements
19 Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions GOVERNMENTAL ACTIVITIES:

General government $19,288,029 $2,237,533 $16,306,675
Public safety 120,120,829 2,469,328 5,118,878
Public works and transportation 25,616,470 5,909,251 12,948,844 $3,594,521 Library and community services 12,359,104 2,341,288 281,021 Economic development 6,672,124 2,653,271
Planning and building 10,485,538 6,237,845
Maintenance services 12,539,476 2,120,249
Interest on long-term debt 2,320,830
Total Governmental Activities 209,402,400 23,968,765 34,655,418 3,594,521 BUSINESS-TYPE ACTIVITIES:

Sewer 23,143,122 31,457,157
Water 48,798,451 61,480,757
Airport 4,299,086 3,900,365
Stormwater 2,658,755 3,618,896
Recycling 240,200 104,027
Total Business-type Activities 79,139,614 100,561,202
Total $288,542,014 $124,529,967 $34,655,418 $3,594,521
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
(Loss) on investment in East Bay Dischargers Authority
Gain on sale of capital assets
Miscellaneous
TRANSFERS (Note 5)
Total General Revenues And Transfers

CHANGE IN NET POSITION

BEGINNING NET POSITION

ENDING NET POSITION
See accompanying notes to basic financial statements

CITY OF HAYWARD

STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2022
20 Net (Expense) Revenue and
Changes in Net Position
Governmental Business-t ype
Activities Activities Total
($743,821) ($743,821)
(112,532,623) (112,532,623)
(3,163,854) (3,163,854)
(9,736,795) (9,736,795)
(4,018,853) (4,018,853)
(4,247,693) (4,247,693)
(10,419,227) (10,419,227)
(2,320,830) (2,320,830)
(147,183,696) (147,183,696)
$8,314,035 8,314,035
12,682,306 12,682,306
(398,721) (398,721)
960,141 960,141
(136,173) (136,173)
21,421,588 21,421,588
(147,183,696) 21,421,588 (125,762,108)
64,950,195 64,950,195
64,666,358 64,666,358
17,308,117 17,308,117
21,226,290 21,226,290
10,515,952 10,515,952
3,996,798 3,996,798
1,958,345 1,958,345
9,879,685 9,879,685
182,633 182,633
(3,912,851) (4,862,077) (8,774,928)
(965,799) (965,799)
37,265 37,265
9,449,880 9,449,880
4,112,715 (4,112,715)
204,371,382 (9,940,591) 194,430,791
57,187,686 11,480,997 68,668,683
106,354,944 368,570,836 474,925,780
$163,542,630 $380,051,833 $543,594,463
21 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 2022. 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 specif ic purpose, activity, or program.

American Rescue Plan Act – Accounts for the American Rescue Plan Act (ARPA) federal stimulus package grants received by the City for internal and external needs of the City associated with the COVID-19 crisis.

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. 23 CITY OF HAYWARD

GOVERNMENTAL FUNDS

BALANCE SHEET
JUNE 30, 2022
America Rescue
General* Federal Grants Plan Act
ASSETS:

Cash, cash equivalents, and investments (Note 2) $55,768,818 $2,832,353 $26,894,132 Cash, cash equivalents, and investments with fiscal agents (Note 2) Accounts receivable, net 898,983
Due from other governments 13,692,963 1,821
Interest receivable
Due from other funds (Note 5) 1,091,840
Loans receivable (Note 4) 50,000 12,711,474
Long-term loans to the Private Purpose Trust Fund (Note 20) 3,636,442 Land held for resale (Note 1)
Deposits, parts, supplies and other 4,714
Total Assets $75,143,760 $15,545,648 $26,894,132
LIABILITIES:

Accounts payable $2,445,905 $96,398 $722,661
Accrued liabilities 7,391,774 553
Due to other funds (Note 5)
Long-term interfund payables (Note 5) 2,937,681
Unearned revenue 26,170,918
Refundable deposits 4,476,968
Total Liabilities 17,252,328 96,398 26,894,132
DEFERRED INFLOWS OF RESOURCES:

Unavailable revenue
Total Deferred Inflows of Resources
FUND BALANCES (Note 10):

Nonspendable 3,641,156
Restricted:

Public safety
Public works and transportation
Planning and building 15,449,250
Economic development
Debt service
Assigned 20,025,339
Unassigned 34,224,937
Total Fund Balances 57,891,432 15,449,250
Total Liabilities, Deferred Inflows of Resources
and Fund Balances $75,143,760 $15,545,648 $26,894,132
See accompanying notes to basic financial statements
* Includes balances related to the City's Measure C District Sales Tax.

Special Revenue Funds
24 Other Total
Housing General Governmental Governmental
Authority Capital Projects Funds Funds
$5,117,106 $10,341,495 $73,732,616 $174,686,520
7,690,832 7,690,832
5,615,661 651,192 7,165,836
53,105 3,613,980 17,361,869
70,217 70,217
1,091,840
12,980,003 6,520,140 32,261,617
3,876,516 7,512,958
707,539 6,131,113 6,838,652
4,714
$22,681,164 $23,701,093 $90,719,258 $254,685,055
$51 $7,571,015 $5,014,196 $15,850,226
2,518 37,974 73,249 7,506,068
1,091,840 1,091,840
2,937,681
5,544,730 418,415 32,134,063
40,146 338,134 4,855,248
2,569 13,193,865 6,935,834 64,375,126
189,982 189,982
189,982 189,982
3,641,156
355,389 355,389
35,867,902 35,867,902
22,055,961 37,505,211
22,678,595 18,119,830 40,798,425
7,194,360 7,194,360
10,507,228 30,532,567
34,224,937
22,678,595 10,507,228 83,593,442 190,119,947
$22,681,164 $23,701,093 $90,719,258 $254,685,055
Capital Pro
jects Funds
25 Total Fund Balances reported on the governmental funds balance sheet $190,119,947 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 18,873,737
Construction in progress 61,522,485
Depreciable capital assets, net 353,858,723
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 57,819,249
Accounts receivable 559,624
Due from other governments 4,554
Long-term loans to the Private Purpose Trust Fund 27,021 Deposits, parts, supplies and other 276,855
Land 372,748
Construction in progress 612,690
Depreciable capital assets, net 21,667,070
Accounts payable (2,539,244)
Accrued interest (3,631)
Accrued liabilities (21,584,562)
Unearned revenue (24,196)
Refundable deposits (5,937)
Compensated absences (696,976)
Net pension liabilities and pension-related deferred outflows and inflows of resources (8,403,428) Net OPEB liabilities and OPEB-related deferred outflows and inflows of resources (4,962,955) Long-term debt (606,339)
Revenues that are not currently available are shown as deferred on the Fund Balance Sheets are recognized as revenue on the Statement of Activities.

Unavailable revenue 189,982
The assets and liabilities below are not due and payable in the current period and therefore are not reported in the Fund financial statements:

Long-term debt (72,991,159)
Deferred outflow for deferred loss on refunding 468,608 Interest payable (414,131)
Compensated absences (8,984,629)
Net pension liabilities and pension-related deferred outflows and inflows of resources (356,576,135) Net OPEB liabilities and OPEB-related deferred outflows and inflows of resources (65,037,341) NET POSITION OF GOVERNMENTAL ACTIVITIES $163,542,630
See accompanying notes to basic financial statements

GOVERNMENTAL FUNDS

CITY OF HAYWARD
JUNE 30, 2022

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
26 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, 2022
America Rescue
General* Federal Grants Plan Act
REVENUES:

Property taxes $63,524,226
Sales taxes 64,666,358
Utility users tax 17,308,117
Other taxes 40,989,057
Licenses and permits 7,040,991
Fines and forfeitures 2,687,659
Special assessments
Investment income (1,071,533) ($45,996) ($251,911)
Rental income 476
Intergovernmental 6,303,496 1,162,481 12,295,076
Fees and charges for services 4,271,451
Other revenue 160,055 171,669
Total Revenues 205,880,353 1,288,154 12,043,165
EXPENDITURES:

Current:

General government 14,916,462 4,348,070
Public safety 134,446,672 144,522 41,982
Public works and transportation 4,117,683 89,829
Library and community services 8,460,055 369,953
Economic development 121,096
Planning and building 9,576,414
Maintenance services 10,364,501 313,284
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total Expenditures 181,881,787 635,571 4,793,165

EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER)
EXPENDITURES 23,998,566 652,583 7,250,000
OTHER FINANCING SOURCES (USES):

Issuance of capital lease (Note 7)
Transfers in (Note 5) 10,297,546
Transfers (out) (Note 5) (42,596,087) (40,000) (7,250,000) Total Other Financing Sources (Uses) (32,298,541) (40,000) (7,250,000) CHANGE IN FUND BALANCES (8,299,975) 612,583
BEGINNING FUND BALANCES 66,191,407 14,836,667
ENDING FUND BALANCES $57,891,432 $15,449,250
See accompanying notes to basic financial statements
* Includes revenue and expenditures related to the City's Measure C District Sales Tax.

Special Revenue Funds
28 Other
Total
Housing General Governmental Governmental
Authority Capital Projects Funds Funds
$63,524,226
64,666,358
17,308,117
$734,447 $570,491 42,293,995
7,040,991
220,655 2,908,314
1,427,107 1,427,107
($128,012) (278,215) (1,033,230) (2,808,897)
722,849 723,325
2,381,143 20,438,909 42,581,105
1,222 4,032,534 8,305,207
3,997,427 8,083,133 4,737,796 17,150,080
3,870,637 10,920,508 31,117,111 265,119,928
19,264,532
914,286 135,547,462
40,743 5,592,896 9,841,151
1,767,260 10,597,268
3,928,369 2,624,753 6,674,218
9,576,414
1,340,159 12,017,944
38,247,054 15,049,071 53,296,125
707,992 5,549,560 6,257,552
35,411 2,580,563 2,615,974
3,928,369 39,031,200 35,418,548 265,688,640
(57,732) (28,110,692) (4,301,437) (568,712)
1,063,021 1,063,021
23,451,560 8,993,340 42,742,446
(10,688) (351,500) (1,179,430) (51,427,705)
(10,688) 24,163,081 7,813,910 (7,622,238)
(68,420) (3,947,611) 3,512,473 (8,190,950)
22,747,015 14,454,839 80,080,969 198,310,897
$22,678,595 $10,507,228 $83,593,442 $190,119,947
Capital Projects Funds
29 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, 2022
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 ($8,190,950) 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 ca
pitalized and allocated over their estimated useful lives and reported as depreciation expense.

Capital outlay expenditures are therefore added back to fund balance 53,296,125 Non-capitalized capital outlay expenditures and net retirements were reclassified to various governmental activities (14,564,462) Depreciation expense is deducted from fund balance
(Depreciation expense is net of internal service fund depreciation of $3,026,296 which has alread
y been allocated to service funds) (15,040,881)

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.

Proceeds from capital leases are deducted from fund balance (1,063,021) Repayment of debt principal and amortization of bond premiums and deferred loss are added back to fund balance 6,636,675 Amortization of deferred loss on refunding is deducted from fund balance (93,721) Interest payable is added back to fund balance 31,065

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 (1,529,786)
Compensated absences 366,921
Net pension liabilities and pension-related deferred outflows/inflows of resources 22,286,724 Net OPEB liabilities and OPEB-related deferred outflows/inflows of resources 10,433,375

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 4,619,622 CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $57,187,686 See accompanying notes to basic financial statements
30 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 2022. 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.

Airport Fund – Accounts for the operation, development and maintenance of the Hayward Air Terminal. 31 CITY OF HAYWARD

PROPRIETARY FUNDS

STATEMENT OF NET POSITION
JUNE 30, 2022
Business-type Activities-Enterprise Funds Governmental
Activities-
Non-Major Internal Service
Sewer Water Airport Funds Totals Funds
ASSETS:

Current Assets:

Cash and investments (Note 2) $109,542,651 $122,718,167 $9,578,086 $7,231,770 $249,070,674 $57,819,249 Cash and investments with fiscal agents (Note 2) 1 1 2
Accounts receivable, net 5,754,901 11,880,052 177,155 1,791,171 19,603,279 559,624 Interest receivable 65,625 65,625
Due from other governments 14,084 135 10,561 24,780 4,554 Deposits, parts, supplies and other 2,471,492 1,803,810 8,612 4,283,914 276,855 Due from other funds (Note 5) 329,813 329,813
Total Current Assets 118,112,942 136,402,165 9,829,478 9,033,502 273,378,087 58,660,282 Noncurrent Assets:

Leases receivable (Note 4) 26,529,550 26,529,550
Long-term interfund receivables (Note 5) 2,937,681 2,937,681 Long-term loans to the Private Purpose Trust Fund (Note 20) 27,021 Investment in East Bay Dischargers Authority (Note 17) 9,416,305 9,416,305 Capital assets (Note 6):

Land 1,830,143 2,683,047 244,302 4,757,492 372,748
Construction in progress 9,809,312 14,105,784 960,211 24,875,307 612,690 Depreciable capital assets, net 105,133,799 38,269,504 11,268,098 418 154,671,819 21,667,070 Total Noncurrent Assets 126,189,559 57,996,016 39,002,161 418 223,188,154 22,679,529 Total Assets 244,302,501 194,398,181 48,831,639 9,033,920 496,566,241 81,339,811

DEFERRED OUTFLOWS OF RESOURCES
Related to pensions (Note 13) 1,096,350 1,101,109 214,424 255,749 2,667,632 953,736 Related to OPEB (Note 15) 1,213,193 1,218,460 237,276 283,005 2,951,934 1,055,382 Total Deferred Outflows of Resources 2,309,543 2,319,569 451,700 538,754 5,619,566 2,009,118 LIABILITIES:

Current Liabilities:

Accounts payable 703,903 5,902,450 90,001 27,140 6,723,494 2,539,244 Accrued interest 323,438 6,041 3,109 332,588 3,631
Accrued liabilities 311,084 287,498 60,771 72,452 731,805 21,584,562 Unearned revenue 229,565 431,617 (18,129) 643,053 24,196 Refundable deposits 3,796,699 120,167 3,916,866 5,937
Due to other funds (Note 5) 329,813 329,813
Compensated absences, due within one year (Note 1) 411,368 543,738 95,316 83,189 1,133,611 565,042 Accrued reclamation costs (Note 11) 125,000 125,000
Long-term debt, due within one year (Note 7) 3,503,260 505,529 144,471 4,153,260 227,551 Total Current Liabilities 5,607,618 11,473,572 495,706 512,594 18,089,490 24,950,163 Noncurrent Liabilities:

Compensated absences, due in more than one year (Note 1) 144,240 190,654 33,421 29,169 397,484 131,934 Net pension liabilities, due in more than one year (Note 13) 8,179,023 8,214,531 1,599,649 1,907,950 19,901,153 7,115,105 Net OPEB liability, due in more than one year (Note 15) 4,747,574 4,768,185 928,528 1,107,483 11,551,770 4,130,015 Long-term debt, due in more than one year (Note 7) 33,020,238 1,050,197 299,803 34,370,238 378,788 Total Noncurrent Liabilities 46,091,075 14,223,567 2,861,401 3,044,602 66,220,645 11,755,842 Total Liabilities 51,698,693 25,697,139 3,357,107 3,557,196 84,310,135 36,706,005 DEFERRED INFLOWS OF RESOURCES:

Related to leases (Note 4) 26,271,038 26,271,038
Related to pensions (Note 13) 2,577,316 2,588,504 504,070 601,219 6,271,109 2,242,059 Related to OPEB (Note 15) 2,170,682 2,180,106 424,541 506,363 5,281,692 1,888,322 Total Deferred Inflows of Resources 4,747,998 4,768,610 27,199,649 1,107,582 37,823,839 4,130,381 NET POSITION (Note 10):

Net investments in capital assets 80,249,756 53,502,609 12,028,337 418 145,781,120 22,046,169 Restricted for debt service 1 1 2
Unrestricted 109,915,596 112,749,391 6,698,246 4,907,478 234,270,711 20,466,374 Total Net Position $190,165,353 $166,252,001 $18,726,583 $4,907,896 $380,051,833 $42,512,543 See accompanying notes to basic financial statements
32 CITY OF HAYWARD

PROPRIETARY FUNDS

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED JUNE 30, 2022
Business-type Activities-Enterprise Funds Governmental
Activities-
Non-Major Internal Service
Sewer Water Airport Funds Totals Funds
OPERATING REVENUES:

Charges for services $30,598,276 $17,207,565 $3,747,152 $3,676,723 $55,229,716 $31,652,434 Sale of water 43,982,238 43,982,238
Miscellaneous 858,881 290,954 153,213 46,200 1,349,248 1,184,633 Total Operating Revenues 31,457,157 61,480,757 3,900,365 3,722,923 100,561,202 32,837,067 OPERATING EXPENSES:

Salaries and related expenses 9,824,309 8,827,057 2,205,372 2,154,823 23,011,561 8,666,135 Materials, supplies and services 5,380,560 5,406,450 909,501 730,058 12,426,569 12,863,747 Repairs and maintenance 1,229,342 1,240,686 239,759 13,909 2,723,696 4,039,299 Water purchases 30,880,083 30,880,083
Self-funded insurance expense 11,285,848
Depreciation (Note 6) 6,183,762 2,383,475 944,454 165 9,511,856 3,026,296 Total Operating Expenses 22,617,973 48,737,751 4,299,086 2,898,955 78,553,765 39,881,325 Operating Income (Loss) 8,839,184 12,743,006 (398,721) 823,968 22,007,437 (7,044,258) NONOPERATING REVENUES (EXPENSES):

Investment income (2,189,270) (2,652,166) 133,563 (154,204) (4,862,077) (1,150,036) Interest (expense) (525,149) (60,700) (585,849) (21,323) (Loss) on investment in JPA (965,799) (965,799)
Gain on sale of capital assets 37,265
Net Nonoperating Revenues (Expenses) (3,680,218) (2,712,866) 133,563 (154,204) (6,413,725) (1,134,094) Income (Loss) Before Contributions and Transfers 5,158,966 10,030,140 (265,158) 669,764 15,593,712 (8,178,352)

TRANSFERS
Transfers in (Note 5) 794,608 1,289,912 2,441,000 4,525,520 13,321,676 Transfers (out) (Note 5) (4,706,386) (2,587,459) (292,596) (1,051,794) (8,638,235) (523,702) Net Transfers (3,911,778) (1,297,547) (292,596) 1,389,206 (4,112,715) 12,797,974 CHANGE IN NET POSITION 1,247,188 8,732,593 (557,754) 2,058,970 11,480,997 4,619,622 BEGINNING NET POSITION 188,918,165 157,519,408 19,284,337 2,848,926 368,570,836 37,892,921 ENDING NET POSITION $190,165,353 $166,252,001 $18,726,583 $4,907,896 $380,051,833 $42,512,543 See accompanying notes to basic financial statements
33 CITY OF HAYWARD

PROPRIETARY FUNDS

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2022
Business-type Activities-Enterprise Funds Governmental
Activities-
Non-Major Internal Service
Sewer Water Airport Funds Totals Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers $31,292,001 $62,534,469 $3,737,448 $3,703,074 $101,266,992 $32,674,794 Payments to suppliers (7,027,278) (35,687,636) (1,150,704) (745,916) (44,611,534) (26,783,691) Payments to employees (9,983,534) (9,170,988) (1,989,913) (2,160,244) (23,304,679) (9,639,609) Net Cash Flows From Operating Activities 14,281,189 17,675,845 596,831 796,914 33,350,779 (3,748,506)

CASH FLOWS FROM NONCAPITAL AND
RELATED FINANCING ACTIVITIES:

Interfund receipts (payments) (193,763) 77,798 193,762 77,797 Transfers in 794,608 1,289,912 2,441,000 4,525,520 13,321,676 Transfers (out) (4,706,386) (2,587,459) (292,596) (1,051,794) (8,638,235) (523,702) Net Cash Flows From Noncapital and
Related Financing Activities (4,105,541) (1,219,749) (292,596) 1,582,968 (4,034,918) 12,797,974

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of capital assets (5,376,684) (56,713) (402,007) (5,835,404) (2,993,794) Proceeds from sale of capital assets
Principal payments on capital debt (3,492,574) (487,444) (142,556) (4,122,574) (220,936) Interest paid (527,123) (62,858) (725) (590,706) (22,884) Net Cash Flows From Capital and
Related Financing Activities (9,396,381) (607,015) (545,288) (10,548,684) (3,237,614) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income - loss in fair value (2,189,270) (2,652,166) 133,563 (154,204) (4,862,077) (1,150,036) Net Cash Flows From Investing Activities (2,189,270) (2,652,166) 133,563 (154,204) (4,862,077) (1,150,036) NET CASH FLOWS (1,410,003) 13,196,915 (107,490) 2,225,678 13,905,100 4,661,818 CASH AND EQUIVALENTS AT BEGINNING OF PERIOD 110,952,654 109,521,252 9,685,576 5,006,092 235,165,574 53,157,431 CASH AND EQUIVALENTS AT END OF PERIOD $109,542,651 $122,718,167 $9,578,086 $7,231,770 $249,070,674 $57,819,249

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

Operating income (loss) $8,839,184 $12,743,006 ($398,721) $823,968 $22,007,437 ($7,044,258) Adjustments to reconcile operating income (loss) to net cash provided by operating activities:

Depreciation 6,183,762 2,383,475 944,454 165 9,511,856 3,026,296 Change in assets and liabilities:

Receivables, net (151,072) 392,404 160,204 17,559 419,095 30,171 Deposits, parts, supplies and other 331,506 (609,653) (8,612) (286,759) (276,855) Due from other governments (14,084) (135) 12,918 (572) (1,873) 88,104 Due to interest receivable (65,625) (65,625)
Due to leases receivable (258,512) (258,512)
Accounts payable and other accrued expenses (748,882) 2,449,236 7,168 (1,949) 1,705,573 1,405,203 Due to retirement system 115,736 (26,891) 162,386 17,226 268,457 (446,978) Due to OPEB (191,157) (276,708) 45,047 (57,465) (480,283) (501,814) Compensated absences (83,804) (40,332) 8,026 (2,018) (118,128) (24,682) Refundable deposits 669,826 6,227 676,053
Unearned revenue (8,383) (18,129) (26,512) (3,693)
Net Cash Flows From Operating Activities $14,281,189 $17,675,845 $596,831 $796,914 $33,350,779 ($3,748,506) NON-CASH TRANSACTIONS:

Retirement of capital assets $37,265
See accompanying notes to basic financial statements
34 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.
35 CITY OF HAYWARD

FIDUCIARY FUNDS

STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2022
Private Purpose Custodial
Trust Fund Funds
CURRENT ASSETS:

Cash and investments (Note 2) $2,670,191 $4,856,861
Cash and investments with fiscal agents (Note 2) 26 353,913 Accounts receivable, net 453,912 1,060,926
Due from other governments 83,959
Deposits, parts, supplies and other 201,524
Total Current Assets 3,124,129 6,557,183
NONCURRENT ASSETS:

Loans receivable (Note 20) 24,509,337
Land held for resale 3,483,031
Capital assets (Note 20):

Land 4,430,516
Depreciable capital assets, net 9,173,337
Total Noncurrent Assets 41,596,221
Total Assets 44,720,350 6,557,183
CURRENT LIABILITIES:

Accounts payable and accrued liabilities 32,819 229,217 Accrued interest 391,196
Deferred revenue 63,165 1,137,861
Refundable deposits 45,929
Long-term debt, due in less than one year (Note 20) 2,070,000 Total Current Liabilities 2,557,180 1,413,007
NONCURRENT LIABILITIES (Note 20):

Long-term loans payable, due in more than one year 7,539,979 Long-term debt, due in more than one year 24,661,117
Total Noncurrent Liabilities 32,201,096
Total Liabilities 34,758,276 1,413,007

NET POSITION
Restricted for:

Organizations and other governments 9,962,074 1,059,475 Bondholders 4,084,701
Total Net Position $9,962,074 $5,144,176
See accompanying notes to basic financial statements
36 Private-Purpose Custodial
Trust Fund Funds

ADDITIONS
Property tax $3,701,590 $1,107,050
Special assessment 176,333
Intergovernmental revenue 41,396
Other revenue 18,445
Rental income 45,833
Investment income 6 (96,012)
Total additions 3,747,429 1,247,212

DEDUCTIONS
Maintenance services 286,611 496,188
Contractual services 102,578
Payments to bondholders 362,762
Depreciation expense (Note 20) 314,131
Interest and fiscal charges 1,041,616 202,126
Total deductions 1,642,358 1,163,654
Net change in position 2,105,071 83,558
Net position - beginning 7,857,003 5,060,618
Net position - ending $9,962,074 $5,144,176

CITY OF HAYWARD

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2022
See accompanying notes to basic financial statements
37 This Page Left Intentionally Blank

CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

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 City 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 business 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. 39 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

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 17).

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.
40 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

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 – The Governmental Accounting Standard s 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 thei r 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.

Airport Fund – Accounts for the operation, developmen t and maintenance of the Hayward Air Terminal.

41 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

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 fu nds are excluded from the City-
wide financial statements, 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 with in forty-five days after fiscal year-end.

Expenditures are recorded when the related fund liability is incurred, ex cept for principal and interest on general long-term debt and leases, claims and judgments, and compensated absences, which are recognized as expenditures to the exte nt they have matured. General capital asset acquisitions are reported as expenditures in governmental funds. Pr oceeds of general long-ter m debt and acquisitions under leases are reported as other financing sources.

Non-exchange transactions, in which the City gi ves or receives value with out 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.

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. 42 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

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 assets 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 assets th at 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, 2022, the Ge neral Fund’s expenditures exceeded the budgeted appropriations by $1,890,999, due largely to excess overtime costs related to the Fire department employees assisting with the wildfires and COVI D 19- related expenditures. Also, the Narcotics Asset Seizure Special Revenue Fund’s expenditu res exceeded the budgeted appropriations by $371,540 and the Rental Housing Program Speci al Revenue Fund’s expe nditures exceeded the budgeted appropriations by $17,252 due to higher personnel costs than anticipated. 43 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

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 accoun ts 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 no t budget for is the Do nation Special Revenue Fund. The City is unable to forecast the amou nt 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, 2022 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.

44 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

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, 2022:

Governmental Business-type
Activities Activities Total
Beginning Balance $10,073,208 $1,649,223 $11,722,431
Additions 7,774,798 1,102,944 8,877,742
Payments (8,166,401) (1,221,072) (9,387,473)
Ending Balance $9,681,605 $1,531,095 $11,212,700
Current Portion $7,848,927 $1,133,611 $8,982,538
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 7), 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 9). 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 an 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. 45 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

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.

Leases – A lease is defined as a contract that conveys control of the right to use another entity’s nonfinancial asset (the underlying asset) as specif ied in the contract for a period of time in an exchange or exchange-like transaction. Examples of nonfinancial assets include buildings, land, vehicles, and equipment.

Lessor – The City is a lessor for a noncancellab le leases of land. The City recognizes a lease receivable and a deferred inflow of resources in the government ‐wide and governmental fund financial statements for the leases, with the exception of short-term and regulated leases.

At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be rece ived during the lease term. Subse quently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commenc ement date. Subsequently, the de ferred inflow of resources is recognized as revenue over the life of the lease term.
46 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

1. SIGNIFICANT ACCOUNTING POLICIES (Continued)

Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receip ts to present value, (2) lease term, and (3) lease receipts as follows:

• The City uses its estimated incremental borrowing rate as the discount rate for leases.

• The lease term includes the noncancellable period of the lease.

• Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

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

New Governmental Accounting Standards Board Statement Pronouncements –

GASB 87 – Leases – In June 2017, GASB issued Statement No. 87, Leases. The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement requires recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underl ying asset. Under this Statement, a lessee is required to recognize a lease liability and an inta ngible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities. The provisions of this Statement were implemented during fiscal year 2022. As part of the implementation of this Statement, the City has accounted for certain lessor transactions, which required the restatement of the business-type lease-related balances as discussed in Note 4.

47 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

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, 2022, 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, 2022, 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 Fiduciary agreements.

Statement of Net Position
Cash, cash equivalents, and investments $481,576,443
Cash, cash equivalents, and investments with fiscal agents 7,690,834 Private Purpose Trust Fund
Cash and investm ents 2,670,191
C ash and investm ents with fiscal agents 26
Custodial Funds
Cash and investm ents 4,856,861
C ash and investm ents with fiscal agents 353,913
Total Cash and Investments $497,148,268
48 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

2. CASH, CASH EQUIVALENTS AND INVESTMENTS (Continued)

Cash and investments as of June 30, 2022 consisted of the following:

Cash in bank $171,617,934
Cash on hand (Petty Cash) 3,175
Investments 325,527,159
Total Cash and Investments $497,148,268

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 20% 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.
49 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

2. CASH, CASH EQUIVALENTS AND INVESTMENTS (Continued)
Investments Authorized by Debt Agreements – The City must maintain required amounts of cas h
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 Agreements None to 30 days None to A
Pre-funded Municipal Bonds No Limit AAA
California Local Agency Investm ent Fund No Lim it No Lim it 50 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

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, 2022:

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

U.S. Treasury Notes $106,855,684 $106,855,684
U.S. Agency Securities $16,202,112 16,202,112
Medium-Term Notes 36,313,073 36,313,073
Municipal Bonds 7,902,914 7,902,914
Supranationals 2,524,708 2,524,708
Asset-Backed Securities 6,076,378 6,076,378
Total Investments at Fair Value $106,855,684 $69,019,185 175,874,869 Investments Measured at Amortized Cost:

Money Market Mutual Funds 8,044,748
California Local Agency Investm ent Fund 140,028,260
Certificates of Deposit 1,579,282
Total Investm ents $325,527,159
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. 51 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

2. CASH, CASH EQUIVALENTS AND INVESTMENTS (Continued)
Information about the sensitivity of the fair values of the City’s investments (includin g
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 $27,092,353 $79,763,331 $106,855,684 U.S. Agency Securities $3,279,577 12,922,535 16,202,112 Money Market Mutual Funds 8,044,748 8,044,748
California Local Agency Investm ent Fund 140,028,260 140,028,260 Medium-Term Notes 300,246 2,656,151 33,356,676 36,313,073 Municipal Bonds 1,532,456 5,007,672 1,362,786 7,902,914 Supranationals 1,324,078 1,200,630 2,524,708
Certificates of Deposit 1,579,282 1,579,282
Asset-Backed Securities 1,370,715 4,705,663 6,076,378
Total Investments $154,764,569 $ 50,373,504 $120,389,086 325,527,159 Cas h in Banks 171,617,934
Cas h on Hand (Petty Cas h) 3,175
Total Cash 171,621,109
Total Cash and Investm ents $497,148,268
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, 2022, these investments had an average maturity of 311 days.

Money market funds are available for withdraw al on demand and at June 30, 2022, had an average maturity of 1 day.
52 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

2. CASH, CASH EQUIVALENTS AND 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 , 2022 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 $106,855,684 $106,855,684
U.S. Agency Securities 16,202,112 16,202,112
Money Market Mutual Funds 8,044,748 8,044,748
California Local Agency Investment Fund $140,028,260 140,028,260 Medium-Term Notes 440,125 $6, 362,993 $29,509,955 36,313,073 Municipal Bonds 934,249 4, 942,592 2,026,073 7,902,914
Supranationals 2,524,708 2,524,708
Certificates of Deposit $1,579,282 1,579,282
Asset-Backed Securities 3,520,663 2,555,715 6,076,378
Total Investments $138,522,289 $11,305,585 $29,509,955 $1,579,282 $144,610,048 $325,527,159 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, 2022, no investments were subject ed to custodial credit risk on the entity-wide level.

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. 53 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

4. LEASES RECEIVABLE
Lessor - The City from to time to time engages in le
ase arrangements allowing the right for others
to use various owned land and buildings for the public benefit. The borrowing rate for the leases are implicit in the lease agreements and therefore, the City has applied the incremental borrowing rate of the City for all leases of 3% . Leases where the City acts as the lessor are recorded as a lease receivable offset with a deferred inflow of resources.

As of June 30, 2022, these leases receivable and related deferred inflows of resources consisted of the following:

Lessor
Original
Lease
Date
Expiration
Date Including
Options
Annual Revenue
as of June 30,
2022
Lease Receivable
Balance at
June 30, 2022
Deferred Inflow of
Resources at
June 30, 2022
Proprietary Funds - Airport Fund
Home Depot USA, Inc. 12/12/2000 12/31/2045 $526,175 $9,104,270 $9,007,134 Mahabal Hospitality, LLC 12/1/2017 11/30/2067 269,393 5,243,453 5,222,479 Ramesta Hospitality, LLC 12/1/2017 11/30/2067 269,393 5,243,453 5,222,479 Velo Two, LLC 11/1/2018 10/31/2068 154,673 3,070,104 3,018,643 BDC Sueirro LP 3/1/2006 2/29/20 56 154,208 2,629,816 2,603,667 Hayward Airport Plaza, LLC 11/1/2019 10/31/2029 58,951 403,072 371,120 Pa
cific Roller Die Company, Inc. 12/1/2020 11/30/2025 84,216 273,140 269,823 GT
E Mobilnet 10/1/2006 9/30/2031 31,315 237,624 232,188
Watt I
ndustries, Inc. 7/2/1984 10/10/2038 18,518 205,838 204,556 P
aul Mazza 1/1/2005 12/31/2054 6,546 108,310 108,608
J
ohn Manzella, Inc. 2/1/1973 1/31/2023 8,884 10,470 10,341 $1,582,272 $26,529,550 $26,271,038
In fiscal year 2022, the City implemented the provisions of GASB Statement No. 87, Leases, which
required the restatement of leases receivable and related deferred inflows of resources. As a result, initial leases receivable and related deferred infl ows of resources were recorded in the amount of $27,094,852, for business-type activities as of July 1, 2021, and had no effect on net position.

Regulated Leases - In accordance with GASB Statement No. 87, the C ity does not recognize a lease receivable and a deferred inflow of resources for regulated leases. Regulated leases are certain leases that are subject to external laws, regulati ons, or legal rulings, e.g., the U.S. Department of Transportation and the Federal Aviation Administration regulated aviation leases between airports, air carriers and other aeronautical users. Regulated leases include airline leases, as well as contracts with Fixed Based Operators (FBOs), and Specialized Aviation Service Operators (SASO). 54 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

4. LEASES RECEIVABLE (Continued)
By definition, the following lease agreements are c onsidered to be regulated leases and therefore, the City does not recognize a receivable and co rresponding deferred inflow of resources for the following leases. As of June 30, 2022, the annual lease revenue and terms of the leases were as follows:

Lessor
Original
Lease Date
Expiration Date
Including
Options
Annual
Revenue as of
June 30, 2022
Proprietary Funds - Airport Fund
Meridian Aviation, Inc. 1/1/2014 12/31/2063 $133,658
Watt Industries, Inc. 10/11/1988 12/1/2045 116,706
Pape Properties, Inc 7/1/1998 12/31/2048 76,344
Avcon, Inc. 3/1/2012 2/28/2027 73,132
Career Aviation Sales, Inc. 7/1/2005 12/31/2053 56,532
Ascend Development HWD - II, LLC 2/2/2004 12/31/2054 52,956 California Military Department 7/1/2014 6/30/2025 44,490 Briggs Resources, Inc. 5/1/2018 4/30/2068 39,322
EPIC Aviation, LLC 2/2/2004 12/31/2054 38,460
Ascend Development, HWD, LLC 8/1/2001 12/31/2051 34,908 Aviation Training, Inc. 9/1/2017 8/31/2047 22,008
Hayward FBO LLC, dba APP Jet Center 3/1/2017 2/28/2047 18,502 William Field 12/14/1999 12/31/2048 17,928
Ascend Development HWD - II, LLC 2/2/2004 12/31/2054 15,636 $740,582
The future expected minimum rentals to be rece ived from the existing regulated leases are as follows at June 30, 2022:

Minimum
Year Ending Lease
June 30: Revenue
2023 $861,862
2024 978,114
2025 978,114
2026 929,187
2027 904,810
2028 - 2032 4,280,273
2033 - 2037 4,280,273
2038 - 2042 4,280,273
2043 - 2047 4,100,267
2048 - 2052 2,908,466
2053 - 2057 1,716,871
2058 - 2062 1,215,923
2063 - 2067 511,998
2068 - 2072 35,053
Total
$27,981,484
55 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

5. 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, 2022 were as follows:

FROM FUND: TO FUND: AMOUNT:

General Fund General Capital Projects Fund $22,701,560 A Non-Major Governmental Funds 8,971,340 B
Water Enterprise Fund 59,942
B
Internal Service Funds 10,863,245 B
Federal Grants Special Revenue Fund Internal Service Funds 40,000 A
American Rescue Plan Act Special Revenue Fund General Fund 7,250,000 B Housing Authority Capital Projects Fund General Fund 3,897 C
Internal Service Funds 6,791
D
General Capital Projects Fund General Fund 351,500 B Non-Major Governmental Funds General Fund 329,050 B General Capital Projects Fund 750,000 A
Internal Service Funds 100,380 D
Sewer Enterprise Fund General Fund 823,783 C Water Enterprise Fund 1,229,970 B
Non-Major Enterprise Funds 1,841,000 A
Internal Service Funds 811,633 D
Water Enterprise Fund General Fund 1,229,099 C Non-Major Enterprise Funds 600,000 B
Internal Service Funds 758,360 D
Airport Enterprise Fund General Fund 185,168 C Internal Service Funds 107,428 D
Non-Major Enterprise Funds General Fund 125,049 C Non-Major Governmental Funds 15,000
A
Sewer Enterprise Fund 794,608 A
Internal Service Funds 117,137 D
Internal Service Funds Non-Major Governmental Funds 7,000 A
Internal Service Funds 516,702 B
$60,589,642
A To fund capital projects.

B To fund debt service, capital projects and administrative overhead.

C To fund allocation of administrative overhead.

D To fund General Liability Internal Service Fund for insurance. 56 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

5. 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, 2022 interfund balances were as follows:

Due from Other Funds Due To Other Funds Amount
General Fund Non-Major Governmental Funds $1,091,840
Sewer Enterprise Fund Non-Major Enterprise Funds 329,813 $1,421,653

Long-Term Interfund Advances – At June 30, 2022, 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 $2,937,681
Water Enterprise Fund $2,937,681
Total $2,937,681 $2,937,681

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, 2022, the outstanding loan balance was $2,937,681.

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.

6. 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.

57 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

6. CAPITAL ASSETS (Continued)

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.

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

Balance Balance
June 30, 2021 Additions Retirements Transfers June 30, 2022 Governmental activities:

Capital assets not being depreciated:

Land $18,950,817 $295,668 $19,246,485
Construction in progress 42,587,866 36,514,838 ($16,967,529) 62,135,175 Total capital assets not being depreciated 61,538,683 36,810,506 (16,967,529) 81,381,660 Capital assets being depreciated:

Buildings and improvements 105,118,966 675,251 105,794,217 Improvements other than buildings 58,203,688 ($111,358) 16,960,529 75,052,859 Machinery and equipment 66,867,389 4,421,692 (1,550,535) 7,000 69,745,546 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 589,714,078 5,096,943 (1,661, 893) 16,967,529 610,116,657 Less accumulated depreciation for:

Buildings and improvements 33,238,816 2,133,215 35,372,031 Improvements other than buildings 11,141,236 2,865,499 (106,690) 13,900,045 Machinery and equipment 43,908,849 3,525,059 (1,410,476) 46,023,432 Streets 116,409,450 9,087,469 125,496,919
Traffic signals 6,850,340 236,218 7,086,558
Medians 2,426,902 93,116 2,520,018
Conduits 1,531,468 9,101 1,540,569
Drains 2,533,792 117,500 2,651,292
Total accumulated depreciation 218,040,853 18,067,177 (1,517,166) 234,590,864 Net depreciable assets 371,673,225 ( 12,970,234) (144,727) 16, 967,529 375,525,793 Governmental activity capital assets, net $433,211,908 $23,840,272 ($144,727) $456,907,453

58 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

6. CAPITAL ASSETS (Continued)
Balance Balance
June 30, 2021 Additions Transfers June 30, 2022
Business-type activities:

Capital assets not being depreciated:

Land $4,757,492 $4,757,492
Construction in progress 19,699,013 $5,574,964 ($398,670) 24,875,307 Total capital assets not being depreciated 24,456,505 5,574,964 (398,670) 29,632,799 Capital assets being depreciated:

Buildings and improvements 36,759,292 36,759,292
Machinery and equipment 76,826,980 260,440 77,087,420
Sewer pipelines and infrastructure 126,368,122 398,670 126,766,792 Water pipelines and infrastructure 71,359,378 71,359,378 Airport hangars, tarmacs and other
infrastructure assets 28,588,734 28,588,734
Total capital assets being depreciated 339,902,506 260,440 398,670 340,561,616 Less accumulated depreciation for:

Buildings and improvements 22,456,402 642,732 23,099,134 Machinery and equipment 22,143,941 2,462,931 24,606,872 Sewer pipelines and infrastructure 68,579,176 3,860,713 72,439,889 Water pipelines and infrastructure 42,556,662 1,844,013 44,400,675 Airport hangars, tarmacs and other
infrastructure assets 20,641,760 701,467 21,343,227
Total accumulated depreciation 176,377,941 9,511,856 185,889,797 Net depreciable assets 163,524,565 (9,251,416) 398,670 154,671,819 Business-type activity capital assets, net $187,981,070 ($3,676,452) $184,304,618 Governmental capital assets construction in prog ress was composed of the following at June 30, 2022:

Project Expended to
Budget June 30, 2022 Committed
Buildings $5,100,000 $2,524,209 $2,575,791
Improvements other than buildings 90,995,068 56,352,923 34,642,145 Machinery and equipment 202,439 195,557 6,882
Streets 43,738,000 3,010,205 40,727,795
Traffic Signals 965,000 52,281 912,719
Total $141,000,507 $62,135,175 $78,865,332
59 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

6. CAPITAL ASSETS (Continued)

A summary of enterprise fund construction in progress at June 30, 2022 follows:

Project Expended to
Budget June 30, 2022 Committed
Sewer Enterprise Fund $24,924,425 $9,809,312 $15,115,113 Water Enterprise Fund 28,442,277 14,105,784 14,336,493
Airport Enterprise Fund 7,464,000 960,211 6,503,789
Total $60,830,702 $24,875,307 $35,955,395

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, 2022.

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
South Hayward Youth and Family Center $2,524,209 $2,575,791 Fire Station 6 and Training Center Project 45,128,821 7,771,179 Mission Boulevard Improvement Phase 2 1,018,343 1,794,657

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
General Government $1,360,458
Public Safety 10,339,445
Public Works and Transportation 1,408,794
Library and Community Services 770,837
Economic Development 132,325
Planning and Building 627,987
Maintenance Services 401,035
Internal Service Funds 3,026,296
$18,067,177
Business-Type Activities
Sewer Fund $6,183,762
Water Fund 2,383,475
Stormwater Fund 165
Airport Fund 944,454
$9,511,856

60 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

7. 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 2021 Addition s Retirements 2022 Portion Governmental Activity Debt:

Certificates of Participation
2015 COP (a), 3.0-5.0%, due 12/31/34 $67,535,000 $58,8 15,000 $3,205,000 $55 ,610,000 $3,365,000 Add: Original issue premium 5,689,046 4,191,932 299,423 3,892,509 Total Certificates of Participation 63,006,932 3,504,423 59,502,509 3,365,000 Direct Borrowings:

Private Placement Certificates of Participation
2016 Refunding COP (a), 2.6-2.76%, due 11/1/2026 19,813,775 10,999,867 1,715,567 9,284,300 1,759,658 Add: Original issue premium 876,695 478,195 79,700 398,495 Loan Payable
Energy Efficiency Loan (a), 1%, due 12/22/2023 2,488,880 6 81,219 270,129 411,090 272,838 Private Placement Loan
2014 Fire Station #7 and Wellness Center
Private Placement Loan (a), 2.84%, due 8/1/2029 5,500,000 3,398,600 358,864 3,039,736 369,126 Capital Lease - Equipment
SCBA Equipment Lease (a), 5%, due 2/1/2023 1,063,021 $1,063,021 707,992 355,029 355,029 Total Direct Borrowings 15,557,881 1,0 63,021 3,132,252 13,488,650 2,756,651 Subtotal 78,564,813 1,063,021 6, 636,675 72,991,159 6,121,651 Direct Borrowings:

Internal Service Fund Long-Term Debt (b)
Capital Leases - Fleet
Fire Engines

3.05%, due 1/17/2024 824,00 0 273,872 88,542 185,330 91,263 Fire Truck

2.92%, due 6/15/2025 1,272,000 553,403 132,394 421,009 136,288 Total Capital Lease Obligations (Direct Borrowings) 827,275 220,936 606,339 227,551 Subtotal 827,275 220,936 606,339 227,551
Total Governmental Activity Debt $79,392,088 $1,063,021 $6, 857,611 $73,597,498 $6,349,202 61 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

7. LONG-TERM DEBT (Continued)
Authorized Balance Balance
Type of and at June 30, at June 30, Current
Obligation Issued 2021 Retirements 2022 Portion
Business-type Activity Debt
Direct Borrowings:

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

2.76%, due 5/1/2025 $7,245,000 $2,6 30,000 $630,000 $2,000,000 $650,000 Loan Payable
Energy Efficiency Loan (c), 3%, due 6/22/2025 2,450,000 815,216 194,786 620,430 200,687 Energy Efficiency Loan (c), 1% due 6/22/2038 2,150,955 2,04 7,411 111,073 1,936,338 112,186 State Water Resource Control Board Loan 2006
1%, due 9/30/2028 (d) 54,550,018 21,82 2,114 2,727,501 19,094,613 2,727,501 State Water Resource Control Board Loan 2019
1%, due 3/31/2049 (d) 21,227,086 1 5,331,331 459,214 14,872,117 462,886 Total Business-type Activity Debt (Direct Borrowings) $42,646,072 $4,122,574 $38,523,498 $4,153,260 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 for 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 2022, the City had total debt outstanding of $112 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 rehabilit
ation 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, 2022

7. 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 the 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.

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.

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.
63 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

7. LONG-TERM DEBT (Continued)
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 $2.11 million in remaining debt service on the bonds which is sche duled to occur in fiscal year 2025. For fisca l
year 2022, Water Fund Revenues including oper ating revenues, non-operating interest earning s and transfers in amounted to $60.1 million and
operating costs including operating expenses, but
not interest, depreciation or amortizations amounte d to $46.4 million. Net Revenues available for debt service amounted to $13.76 million, which represented coverage of 19.6 times over the $702,588 in debt service.

The loan agreement contains events of default that require the reve nue 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 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.

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. 64 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

7. LONG-TERM DEBT (Continued)

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, 2022, the City’s gross repayment obligation totaled $19,094,613. The repayments of the loan are due annually on September 30 of each year commencing 2009 until 2029.

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, 2022, the City has drawn down $15,669,071. As of June 30, 2022, the City’s estimated gross repayment obliga tion totaled $14,872,117. The lo an 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, 2022

7. LONG-TERM DEBT (Continued)
Debt Service Requirements
At June 30, 2022, annual debt service requiremen ts to maturity for long-term debt, including interest payments, were as follows:

Year Ending
June 30: Principal Interest Principal Interest
2023 $3,365,000 $2,050,313 $2,984,202 $328,785
2024 3,530,000 1,877,938 2,558,279 248,167
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 4,010,000 1,426,938 2,369,216 65,079
2028 - 2032 21,950,00 0 5,191,269 1,085,459 46,675
2033 - 2035 15,190,000 964,619
Totals 55,610,000 $14,790,753 13,696,494 $1,002,300
Plus unamortized premiu
m 3,892,509 398,495
Total Long-term debt principal, net $59,502,509 $14,094,989 Business-Type Activities
Direct Borrowings
Year Ending
June 30: Principal Interest
2023 $4,153,260 $240,129
2024 4,185,005 210,443
2025 4,207,153 179,818
2026 3,320,007 150,372
2027 3,325,935 144,444
2028 - 2032 8,540,235 631,264
2033 - 2037 3,240,523 473,864
2038 - 2042 2,871,558 317,751
2043 - 2047 2,881,094 176,941
2048 - 2050 1,798,728 36,093
Totals $38,523,498 $2,561,119
Governmental Activities -
2015 Certificates of Participation
Governmental Activities -
Direct Borrowings
Defeased Bonds
As of June 30, 2022, outstanding balances fo
r defeased debt were $815,000 for the 2001 Water
System Improvement Project Certificates of Participation and $9,825,000 for the 2007 Refunding Certificates of Participation.
66 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

8. 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.

9. 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, 2022 was $80,000.

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, 2022 was $4,588,014.

10. 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, 2022

10. 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, 2022

10. 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 outlays for a particular purpose from both restricted and unrestricted resources (t he total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, 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 the 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 help 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 to 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, when 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, 2022

10. 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, 2022
Nonspendables:

Items not in spendable form:

Long-term loans to Private Purpose Trust $3,636,442
Deposits, parts, supplies and other 4,714
Total Nonspendable Fund Balances 3,641,156
Assigned:

Measure C District sales tax 20,025,339
Total Assigned Fund Balances 20,025,339
Unassigned:

Designations:

Liquidity 34,224,937
Total Unassigned Fund Balances 34,224,937
Total Fund Balances $57,891,432
• 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, 2022, the following funds had a deficit:

The Recycling Enterprise Fund reported a de ficit of $627,961 at June 30, 2022 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 $4,281,743 at June 30, 2022 due to increasing cost of insurance premiums and lega l fees, in addition to the internal service rates adjustment was not enough to cove r the previous years’ deficits at the end of fiscal year 2022.

This deficit is expected to be eliminated with fu ture internal service fund charges and a one-time transfer in fiscal year 2023.
70 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

11. 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 landfill 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 operating revenue of the Sewer Enterprise Fund.

Reclamation payments totaled $118,699 for the year ended June 30, 2022. 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.

12. DEFERRED COMPENSATION PLAN

City employees may defer a portion of their compensation under a City sponsored Deferred Compensation Plan (Plan) created in accordance with Internal Revenue Code Section 457. Under this plan, participants are not taxed on the deferred portion of their compensation until distributed to them. Distributions may be made only at term ination, retirement, deat h, 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. The Plan’s trust administrator is Great-West Retirement Services.

As established by the plan, all el igible employees of the City in the Hayward Police Officers’ Association (HPOA) and International Associ ation of Firefighters (Local 1909) become participants in the Plan once they have entered into the participation agreement.

The City contributes $2,400 annually per eligible participant to the Plan. Contributions made by an employee and the employer vest immediately. No forfeitures were noted during the current period. During the year, the City contributed $312,509 to the Plan.

71 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

13. 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 pr ovisions 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 with 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.

72 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

13. PENSION PLANS (Continued)

The Plans’ provisions and benefits in effect at June 30, 2022, 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
Benefit vesting schedule 5 years service 5 years service 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% 6.75%
Required em ployer contribution rates (A) 10.260% 10.260% 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
Benefit vesting schedule 5 years service 5 years service 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 em ployer contribution rates (A) 18.670% 18.670% 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
Benefit vesting schedule 5 years service 5 years service 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 em ployer contribution rates (A) 22.090% 22.090% (A) Rates represents blended com bination 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
M iscellaneous
Safety - Fire

73 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

13. 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, 2020 and measurement date of June 30, 2021:

Miscellaneous Safety-Fire Safety - Police
Inactive em ployees or beneficiaries currently receiving benefits 944 193 354 Inactive employees entitled to but not yet receiving benefits 721 23 69 Active em ployees 536 122 173
Total 2,201 338 596
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, 2021, using an annual actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. A summary of principal as sumptions and methods used to determine the net pension liability is shown below. 74 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

13. PENSION PLANS (Continued)

Actuarial Assumptions – For the measurement period ende d June 30, 2021, the total pension liabilities were determined by rolling forward th e June 30, 2020 total pens ion liability. The June 30, 2020 and June 30, 2021 total pension liabi lities were based on the following actuarial methods and assumptions:

All Plans
Valuation Date June 30, 2020
Measurement Date June 30, 2021
Actuarial Cost Method Entr y-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 7.15%
Inflation 2.50%
Payroll Growth 2.75%
Projected Salary Increase Varies by Entry Age and Service Investment Rate of Return 7.15% (1)
Mortality Derived usin
g CalPERS
Membership Data for all Funds (2)
Post Retirement Benefit Increase Contract COLA up to 2.50% until Purchasing Power Protection
Allowance Floor on Purchasing
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.

75 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

13. 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 th
at arrived at the same present 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 adjuste d
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 Class (a)
Assumed
Asset
Allocation
Real Return
Years 1 - 10(b)
Real Return
Years 11+ (c)
Public 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)
I
n the CalPERS Annual Comprehensive Financial Report, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-Term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities. (b) A
n expected inflation of 2.0% used for this period.
(c) A
n expected inflation of 2.92% used for this period.

On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-21. Based on the thresholds specified in CalPERS Funding Risk Mitigation policy approved by the CalPERS Board in 2015, the excess return
of 14.3% prescribes a reduction in investment
volatility that corresponds to a reduction in the di scount rate used for funding purposes of 0.20%, from 7.00% to 6.80%. Since CalPERS was in the final stages of the fo ur-year Asset Liability Management (ALM) cycle, the CalPERS Board elected to defer any changes to the asset allocation until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021.

On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital mark et assumptions, economic assumptions and administrative expense assumption support a discount rate of 6.90% (net of investment expense, but without a reduction for administrative expense) fo r financial reporting purposes. This includes a reduction in the price inflation assumption from 2.50% to 2.30% as recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. 76 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

13. PENSION PLANS (Continued)
This study also recommended modifications to retir ement rates, termination rates, mortality rates and rates of salary increases that were adopted by the CalPERS Board. These new assumptions will be reflected in the CalPERS GASB 68 account ing valuation reports for the June 30, 2022, measurement date.

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

Miscellaneous Plan:

Increase (Decrease)
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2020 $497,152,835 $324,905,201 $172,247,634 Changes in the year:

Service cost 8,338,579 8,338,579
Interest on the total pension liability 34,724,511 34,724,511 Differences between actual and expected experience (2,023,562) (2,023,562) Contribution - employer 14,566,265 (14,566,265)
Contribution - employee 5,540,369 (5,540,369)
Net investment income 73,248,533 (73,248,533)
Administrative expenses (324,560) 324,560
Benefit pa
yments, including refunds of employee
contributions (27,282,114) (27,282,114)
Net changes 13,757,414 65,748,493 (51,991,079)
Balance at June 30, 2021 $510,910,249 $390,653,694 $120,256,555 Safety - Fire Plan:

Increase (Decrease)
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2020 $324,054,975 $197,714,136 $126,340,839 Changes in the year:

Service cost 5,407,873 5,407,873
Interest on the total pension liability 22,482,175 22,482,175 Differences between actual and expected experience (3,440,760) (3,440,760) Contribution - employer 10,135,787 (10,135,787)
Contribution - employee 2,828,307 (2,828,307)
Net investment income 44,584,546 (44,584,546)
Administrative expenses (197,504) 197,504
Benefit pa
yments, including refunds of employee
contributions (17,764,280) (17,764,280)
Net changes 6,685,008 39,586,856 (32,901,848)
Balance at June 30, 2021 $330,739,983 $237,300,992 $93,438,991 77 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

13. PENSION PLANS (Continued)

Safety - Police Plan:

Increase (Decrease)
Total Pens ion
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(As s et)
Balance at June 30, 2020 $430,784,553 $262,304,114 $168,480,439 Changes in the year:

Service cost 7,685,977 7,685,977
Interes t on the total pens ion liability 30,543,429 30,543,429 Differences between actual and expected experience 4,592,527 4,592,527 Contribution - employer 14,979,477 (14,979,477)
Contribution - employee 3,687,755 (3,687,755)
Net investment income 59,475,902 (59,475,902)
Adm inistrative ex penses (262,026) 262,026
Benefit paym ents, including refunds of em ployee
contributions (24,078,504) (24,078,504)
Net changes 18,743,429 53,802,604 (35,059,175)
Balance at June 30, 2021 $449,527,982 $316,106,718 $133,421,264 Combined Total $1,291,178,214 $944,061,404 $347,116,810

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 Pension Liability $183,766,337 $136,483,268 $193,898,946 Current Discount Rate 7.15% 7.15% 7.15%
Net Pension Liability $120,256,555 $93,438,991 $133,421,264 1% Increase 8.15% 8.15% 8.15%
Net Pension Liability $67,536,446 $57,911,117 $83,884,232

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

78 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

13. PENSION PLANS (Continued)

Pension Expenses and Deferred Outflows/I nflows of Resources Related to Pensions

For the year ended June 30, 2022, the City recognized pension expense of $21,305,449. At June 30, 2022, 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 $16,119,682 Differences between actual and expected experience ($1,356,269) Net differences between projected and actual earnings on plan investments (36,538,113)
Total $16,119,682 ($37,894,382)
Safety Plan - Fire:

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $11,490,694 Differences between actual and expected experience 2,684,901 ($2,766,101) Changes in assumptions (257,405)
Net differences between projected and actual earnings on plan investments (22,188,489)
Total $14,175,595 ($25,211,995)
Safety Plan - Police:

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $16,160,318 Differences between actual and expected experience 5,022,226 Net differences between projected and actual earnings on plan investments ($29,738,827)
Total $21,182,544 ($29,738,827)
Combined total $51,477,821 ($92,845,204)

79 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

13. PENSION PLANS (Continued)

$43,770,694 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
2023 ($10,169,106)
2024 (8,913,149)
2025 (8,749,440)
2026 (10,062,687)
Total ($37,894,382)
Safety Plan - Fire:

Y ear Ended Annual
June 30 Am ortization
2023 ($5,413,739)
2024 (5,139,541)
2025 (5,348,858)
2026 (6,557,491)
2027 (67,465)
Total ($22,527,094)
Safety Plan - Police:

Y ear Ended Annual
June 30 Am ortization
2023 ($4,843,303)
2024 (5,218,019)
2025 (6,469,010)
2026 (8,186,269)
Total ($24,716,601)
All Plans (Misc., Fire and Police)
Y ear Ended Amortization
June 30 Am ount
2023 ($20,426,148)
2024 (19,270,709)
2025 (20,567,308)
2026 (24,806,447)
2027 (67,465)
Total ($85,138,077)

80 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

14. 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% o f
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, 2022, total
contributions of $17,425 were made based on a
total amount of covered compensation of $464,213.

15. 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 $143 to $149 per month in lieu of contributions to the CalPERS plan.

Employees Covered
Membership in the plan consisted of the follow ing at June 30, 2021 (latest actuarial valuation date):

Active employees 806
Inactive employees or beneficiaries currently
receiving benefit payments 712
Inactive employees entitled to but not yet
receiving benefit payments 179
Total 1,697
81 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

15. OTHER POSTEMPLOYMENT BENEFITS (Continued)
Net OPEB Liability
Actuarial Methods and Assumptions – The City’s net OPEB liability was measured as of June 30, 2021 and the total OPEB liability used to calcu late the net OPEB liability was determined by an actuarial valuation dated June 30, 2021 that was rolled forward to determine the total OPEB liability, based on the following actuarial methods and assumptions:

Actuarial Assumptions
Valuation Date June 30, 2021
Measurement Date June 30, 2021
Actuarial Cost Method Entr
y Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 6.10%
Inflatio
n 2.50%
Payroll Growth 3.00%
Investment Rate of Return 6.10%
Mortality Rate The mortality improvement scale was updated from MacLeod Watts Scale 2018 to MacLeod Watts Scale 2022
Pre-Retirement Turnover Must retire from PERS on or after a ge 65 with at least 10 years of service.

Healthcare 3.90% to 5.80%
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 expected 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
G lobal Equities 49.0% 4.40%
Fixed Income 23.0% -1.00%
Global Real Estate (REITs) 20.0% 3.00%
Treasury Inflation Protected Securities 5.0% -1.80%
Commodities 3.0% 0.80%
Total 100.0%
Discount Rate – The discount rate used to measure th e total OPEB liability was 6.1%. 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 inactive 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 de
termine the total OPEB liability.
82 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

15. 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, 2020 (Measurement Date) $78,958,052 $11,498,862 $67,459,190 Changes Recognized for the Measurem ent Period:

Service Cost 1,773,630 1,773,630
Interest on the total OPEB liability 5,405,045 5,405,045 Differences between expected and actual experience 2,475,617 (2,475,617) Changes of assumptions 8,589,843 8,589,843
Plan Experience (2,914,546) (2,914,546)
Contributions from the employer 6,795,404 (6,795,404)
Contributions from the employee 368,000 (368,000)
Net investment income 874,958 (874,958)
Adm inistrative ex penses (4,628) 4,628
Benefit payments (4,795,404) (4,795,404)
Net changes 8,058,568 5,713,947 2,344,621
Balance at June 30, 2021(Measurement Date) $87,016,620 $17,212,809 $69,803,811 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%

5.10% 6.10% 7.10%
$80,752,562 $69,803,811 $60,709,942

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%
$61,453,115 $69,803,811 $80,425,200

83 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

15. 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, 2022, the City recognized OPEB expense of ($2,236,221). At June 30, 2022, 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 $9,179,251 Changes of assumptions 7,234,978 ($27,267,152)
Difference between Ex pected and Actual Ex perience 1,423,403 (2,454,838) Net difference between projected and actual earnings on investm ents (2,193,655)
Total $17,837,632 ($31,915,645)

$9,179,251 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the OPEB liability in the year ended June 30, 2023. 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:

Y ear Annual
Ended June 30 Am ortization
2023 ($8,151,876)
2024 (6,410,726)
2025 (6,124,643)
2026 (3,115,056)
2027 240,682
Thereafter 304,355
Total ($23,257,264)

84 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

16. 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 Coverage Self Insurance Coverage and Limits
General Liability $0 - $1,000,000 per occurrence $0 - $25,000,000 Workers' compensation $0 - statutory limits $500,000 - $50,000,000 Property $0 - $500,000 per occurrence $250,000 - $1,000,000,000 Cyber $0 - $250,000 per occurrence $500,000 - $40,000,000 Boiler and machinery $0 - $350,000 per occurrence $2,000,000 - $100,000,000 Airport None $25,000 - $50,000,000
Pollution $0- $250,000 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%.

85 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

16. 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 Compensation 2022 2021
Balance, beginning of year $6,964,512 $13,619,983 $20,584,495 $20,768,781 Current year claims and changes
in estimates 1,291,698 3,621,500 4,913,198 5,338,726
Claims paid (794,731) (3,451,903) (4,246,634) (5,523,012) Balance, end of year $7,461,479 $13,789,580 $21,251,059 $20,584,495 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, 2022 is $21,251,059. This amount is net of the allowable adjustment to recognize investment income.

17. 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 member 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”) was 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 us e 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.
86 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

17. 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 2022 amounted to $726,134 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 $9,416,305 at June 30, 2021, the latest date for which financial information is available.

The investment in East Bay Dischargers Authority is valued as of June 30 , 2021, the latest date for which financial information is available.

Summary financial information as of and for the year ended June 30, 2021 (the most recent audited financial information available) for EBDA’s common use operations was as follows:

Assets
Current $4,058,131
Capital assets - net 25,697,640
Total Assets 29,755,771
Deferred outflow of resources 559,164
Total $30,314,935
Liabilities $1,564,429
Deferred inflow of resources 501,592
Net Position 28,248,914
Total $30,314,935
Revenues $5,046,373
Expenses (5,260,541)
Non-operating revenues 255,334
Non-operating expenses (3,052,839)
Prior period adjustment 114,277
Change in Net Position ($2,897,396)

87 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

18. COMMITMENTS AND CONTINGENCIES

Litigation

The City is a defendant in several lawsuits arisin g from its normal operations. City management 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 Water Supply and Conservation Agency (BAWSCA) 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 facilities constructed by the SFPUC that benefit the regional customers are treated from a rate and financial perspective. Under the old agreement, facilities were built, capitalized, and added to the rate 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 assets’ 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 the 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 stabilization 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. 88 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

18. 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 $2,521,752 duri ng fiscal year 2022, which is included as a component of purchased water expenses in the Water Enterprise Fund. The surcharge for fiscal year 2023 is estimated to be $2,561,736.

19. 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 develope r. 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 Housing 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 Housing 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.

89 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

19. 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 Fa mily 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.

20. 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 t he
Successor Agency. ABx1 26 requires the esta blishment of an Oversight Board to oversee the activities of the Successor Agency and one was es tablished 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 Projec ts Fund as the City has control of those assets, which may be used in accordance with the low a nd
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 administra
tive services to the Su ccessor Agency to wind
down the affairs of the former Redevelopment Agency.
90 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

20. 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, 2022 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, 2022.

School Project Cannery Park Cinema Place Attraction Total Balance at June 30, 2021 $19,259, 659 $3,491,901 $275,624 $1,482,153 $24,509,337 Less: Loan Payments
Balance at June 30, 2022 $19,259, 659 $3,491,901 $275,624 $1,482,153 $24,509,337 91 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

20. 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
Ju
ne 30, 2021 Additions June 30, 2022
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 4,648,428 $314,131 4,962,560 Machinery and equipment 9,575 9,575
Total accumulated depreciation 4,658,003 314,131 4,972,135 Net depreciable assets 9,487,469 (314,131) 9,173,337
Private purpose trust fund assets, net $13,917,985 ($314,131) $13,603,853 92 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

20. 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, 2022 was $7,539,979 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 $3,636,442
Housing Authority Special Revenue Fund 3,876,516
Internal Service Funds 27,021
Successor Agency Private Purpose Trust Fund $7,539,979
Total $7,539,979 $7,539,979
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.

However, 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. 93 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

20. 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
Type of Obligation Issued June 30, 2021 Retirements June 30, 2022 Portion Tax Allocation Bonds,
2016 Refunding Redevelopment Agency
due 3/1/2036, interest at 2.0%-5.0% $35,270,000 $26,130,000 $1, 975,000 $24,155,000 $2,070,000 Add: Original Issue Premium 2,760,126 184,009 2,576,117 Total $35,270,000 $28,890,126 $2,159,009 $26,731,117 $2,070,000 At June 30, 2022, future debt service requirement for the Successor Agency were as follows:

S uccessor Agency
Year Ending June 30 Principal Interest
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 2,415,000 702,125
2028 - 2032 7,650,000 2,008,125
2033 - 2036 5,145,000 513,200
Totals 24,155,000 $7,190,450
Plus unamortized premium 2,576,117
Total Long-term debt principal, net $26,731,117
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.
94 CITY OF HAYWARD, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2022

20. 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 2022, 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 $3,701,59 0. The taxes available for di stribution covered 115% of the $3,229,250 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.
95 This Page Left Intentionally Blank

REQUIRED SUPPLEMENTARY INFORMATION

Measurement Date 6/30/2014 6/30/2015 6/30/2016
Total Pension Liability
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 assumptions (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 pension liability 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 - employee 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 movement 2,005 (11,393)
Administrative expense (311,784) (168,838) Other miscellaneous income/(expense)
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 eight years are shown.

Source: CalPERS Accounting Valuation - GASB 68
Benefit changes. The figures above do not include any liability impact that may 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 Years Additional Service Credit (a.k.a. Golden Handshakes).

Changes in assumptions. In 2017, the accounting discount rate reduced from 7.65% to 7.15%. In 2016, 2018, 2019, 2020 and 2021, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense.) 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-Employer Defined Pension Plan Last 10 Years*
98 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021
$7,504,688 $7,869,869 $8,124,065 $8,254,476 $8,338,579
30,173,942 31,188,964 32,708,864 33,774,340 34,724,511
444,821 2,372,377 6,313,847 (481,002) (2,023,562)
23,917,327 (2,819,842)
(22,746,836) (23,688,392) (24,796,470) (26,234,280) (27,282,114) 39,293,942 14,922,976 22,350,306 15,313,534 13,757,414 405,272,077 444,566,019 459,488,995 481,839,301 497,152,835 $444,566,019 $459,488,995 $481,839,301 $497,152,835 $510,910,249 $11,093,282 $10,774,004 $12,008,441 $12,993,586 $14,566,265 3,799,837 4,511,187 4,682,650 5,503,016 5,540,369 29,788,614 24,576,008 19,998,965 15,793,925 73,248,533 (22,746,836) (23,688,392) (24,796,470) (26,234,280) (27,282,114) (46,705) (711)
(397,560) (453,086) (218,097) (447,310) (324,560)
(860,419) 711
21,490,632 14,858,591 11,676,200 7,608,937 65,748,493 269,270,841 290,761,473 305,620,064 317,296,264 324,905,201 $290,761,473 $305,620,064 $317,296,264 $324,905,201 $390,653,694 $153,804,546 $153,868,931 $164,543,037 $172,247,634 $120,256,555

65.40% 66.51% 65.85% 65.35% 76.46%
$39,325,308 $43,553,412 $42,884,033 $49,210,706 $50,091,731 391.11% 353.29% 383.69% 350.02% 240.07%
99 Fiscal Year Ended 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 (excess) $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 assumptions used to determine contribution rates:

Actuarial cost method Entry age
Amortization method Level percentage of payroll
Remaining amortization period 15 Years as of the Valuation Date Asset valuation method 15 Year Smoothed Market
Inflation
Salary increases
Investment rate of return
Retirement age
Mortality
* Fiscal year 2015 was the 1st year of implementation, therefore only eight years are shown.

Source: City of Hayward's general ledger and CalPERS Actuarial Valuation Last 10 Years*
The probabilities of mortality are based on the
CalPERS Experience Study. Pre-retirement and
Post-retirement mortality rates include 20 years of
projected mortality improvement 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 improvement using
90% of Scale MP-2016 published by the Society
of Actuaries.

The probabilities of Retirement are based on the
2017 CalPERS Experience Study for the period
from 1997 to 2015.

CITY OF HAYWARD

SCHEDULE OF CONTRIBUTIONS
Miscellaneous Plan - Agent Multiple-Employer Defined Pension Plan Varies by Entry Age and Service

7.50% for 2015 to 2018, 7.375% for 2019, 7.25%
for 2020, 7.00% for 2021 and 2022, net of pension
plan investment expense, including inflation.

2.75% for 2015 to 2019, 2.625% for 2020, and

2.50% for 2021 and 2022
100
2018 2019 2020 2021 2022
$10,776,908 $12,013,423 $12,996,103 $14,580,046 $16,119,682 10,776,908 12,013,423 12,996,103 14,580,046 16,119,682 $0 $0 $0 $0 $0
$43,553,412 $42,884,033 $49,210,706 $50,091,731 $53,975,164

24.74% 28.01% 26.41% 29.11% 29.86%
6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020
101

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 assumptions (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 movement
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 pension liability - ending (a)-(b) $69,776,221 $77,091,059 $96,827,661 Plan fiduciary net position as a percentage of the total pens ion liability 71.43% 69.07% 63.33% Covered payroll $14,894,224 $15,304,881 $15,425,723
Net pension 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 eight 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).

7.5% (net of adm inistrative ex pense) to 7.65% (without a reduction for pension plan adm inistrative ex pense). 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 Las t 10 Years *

102

6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021
$5,098,972 $4,895,549 $5,286,457 $5,558,671 $5,407,873
19,657,506 20,408,514 21,091,439 22,013,653 22,482,175 (324,662) 2,612,499 270,193 3,298,871 (3,440,760) 16,122,983 (1,401,429)
(14,874,772) (15,849,714) (16,586,918) (17,242,575) (17,764,280) 25,680,027 10,665,419 10,061,171 13,628,620 6,685,008 264,019,738 289,699,765 300,365,184 310,426,355 324,054,975 $289,699,765 $300,365,184 $310,426,355 $324,054,975 $330,739,983 $6,378,762 $6,646,548 $8,015,957 $9,191,715 $10,135,787 2,544,269 2,516,137 3,093,507 2,851,797 2,828,307 18,488,612 15,036,869 12,184,975 9,590,927 44,584,546 (14,874,772) (15,849,714) (16,586,918) (17,242,575) (17,764,280) (437)
(246,848) (279,683) (133,462) (272,922) (197,504)
(531,122) 437
12,290,023 7,538,598 6,574,496 4,118,942 39,586,856 167,192,077 179,482,100 187,020,698 193,595,194 197,714,136 $179,482,100 $187,020,698 $193,595,194 $197,714,136 $237,300,992 $110,217,665 $113,344,486 $116,831,161 $126,340,839 $93,438,991

61.95% 62.26% 62.36% 61.01% 71.75%
$16,579,674 $17,977,548 $19,202,305 $18,986,921 $18,899,737 664.78% 630.48% 608.42% 665.41% 494.39%

103
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 assum ptions used to determ ine contribution rates:

Actuarial cost m ethod 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
Salary increases
Investment rate of return
Retirement age
Mortality
* F
iscal year 2015 was the 1st year of implementation, therefore only eight years are shown.

Source: City of Hayward's general ledger and CalPERS Actuarial V aluation

CITY OF HAYWARD

SCHEDULE OF CONTRIBUTIONS
Safety - Fire Plan - Agent Multiple-Employer Defined Pension Plan Last 10 Y ears*
The probabilities of mortality are bas ed on the CalPERS Experience Study. Pre-retirement and Post-retirement
mortality rates include 20 years of projected mortality improvement using Scale BB published by the Society of
Actuaries for 2015 to 2018. For 2019, 2020, 2021 and 2022, 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.

Contributions in relation to the actuarially determ ined contributions V aries by Entry Age and Service

7.50% for 2015 to 2018, 7.375% for 2019, 7.25% for 2020,

7.00% for 2021 and 2022, net of pension plan investm ent expens e, including inflation.

The probabilities of Retirement are based on the 2017
CalPERS Ex perience Study for the period from 1997 to 2015.

2.75% for 2015 to 2019, 2.625% for 2020, 2.50% for 2021 and 2022.
104
2018 2019 2020 2021 2022
$6,646,548 $8,015,966 $9,197,653 $10,135,787 $11,490,694 6,646,548 8,015,966 9,
197,653 1
0,135,787 11,
490,694
$0 $0 $0 $0 $0
$17,
977,548 $19,202,305 $18,986,921 $18,899,737 $19,620,173

36.97% 41.74% 48.44% 53.63% 58.57%
6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020
105
M
easurement Date 6/30/2014 6/30/2015 6/30/2016
Total Pension Liability
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 pension liability 14,287,468 6,581,647 18,866,464 Total pension liability - beginning 306,952,014 321,239,482 327,821,129 Total pension liability - ending (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 movement 11,302
Administrative expense (241,860) (130,972)
Oth
er miscellaneous income/(expense)
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 pension liability - ending (a)-(b) $105,023,791 $112,918,184 $136,291,745 Plan fiduciary net position 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 pension liability as percentage of covered payroll 491.70% 512.49% 629.53% Notes to Schedule:
* Fiscal year 2015 was the 1st year of implementation, therefore only eight years are shown.

Source: CalPERS Accounting Valuation - GASB 68
Benefit changes. The figures above do not include any liability impact that may have resulted 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. Golden Handshakes).

Changes in assumptions. In 2017, the accounting discount rate reduced from 7.65% to 7.15%. In 2016, 2018, 2019, 2020 and 2021, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense). 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 Pension Plan Last 10 Years*
106
6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021
$8,055,656 $8,436,727 $7,716,531 $8,079,098 $7,685,977
25,738,287 26,651,517 28,039,320 29,217,195 30,543,429
(3,900,767) (1,105,506) 4,860,684 2,096,406 4,592,527
21,956,739 (1,587,612)
(17,590,706) (19,447,095) (20,910,933) (22,208,581) (24,078,504) 34,259,209 12,948,031 19,705,602 17,184,118 18,743,429 346,687,593 380,946,802 393,894,833 413,600,435 430,784,553 $380,946,802 $393,894,833 $413,60 0,435 $430,784,553 $449,527,982 $10,508,222 $10,740,724 $12,243,071 $13,842,327 $14,979,477 3,782,992 3,754,299 3,750,089 3,749,712 3,687,755 23,301,215 19,562,389 16,002,505 12,710,839 59,475,902 (17,590,706) (19,447,095) (20,910,933) (22,208,581) (24,078,504) (567)
(310,635) (358,539) (173,879) (358,879) (262,026)
(680,871) 567
19,
691,088 13,570,340 10,911,420 7,735,418 53,802,604 210,395,848 230,086,936 243,657,276 254,568,696 262,304,114 $230,086,936 $243,657,276 $254,56 8,696 $262,304,114 $316,106,718 $150,859,866 $150,237,557 $159,03 1,739 $168,480,439 $133,421,264

60.40% 61.86% 61.55% 60.89% 70.32%
$22,884,077 $24,345,421 $24,912,360 $24,853,675 $24,906,152 659.24% 617.11% 638.36% 677.89% 535.70%
107
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
determined 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 assumptions used to determine contribution rates:

Actuarial cos t method
Am ortization m ethod
Rem aining am ortization period
As s et valuation method
Inflation
Salary increases
Investm ent rate of return
Retirement age
Mortality
*
F
iscal year 2015 was the 1st year of implementation, therefore only eight years are shown.

Source: City of Hayward's general ledger and CalPERS Actuarial Valuation The probabilities of Retirement are based on the 2017
CalPERS Experience Study for the period from 1997 to 2015.

The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre- retirement and Post-retirement mortality 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 Sm oothed Market

2.50%

2.75% to 14.20% depending on Age, Service, and type of
em ploym ent

CITY OF HAYWARD

SCHEDULE OF CONTRIBUTIONS
Safety - Police Plan - Agent Multiple-Employer Defined Pension Plan Last 10 Years*

7.50% for 2015 to 2018 and 7.15% for 2019 to 2021, net of pension plan investm ent ex pense, including inflation. 108

2018 2019 2020 2021 2022
$10,740,724 $12,240,356 $13,839,941 $14,979,710 $16,160,318 10,740,724 12,240,356 13,839,941 14,979,710 16,160,318 $0 $0 $0 $0 $0
$24,345,421 $24,912,360 $24,853,675 $24,906,152 $25,146,543

44.12% 49.13% 55.69% 60.14% 64.26%
6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020

109

Measurement Date 6/30/17 6/30/18 6/30/19 6/30/20 6/30/21 Total OPEB Liability
Service cost $4,646,537 $4,054,275 $4,121,478 $2,213,810 $1,773,630 Interest 3,528,286 4,015,577 4,186,619 5,048,226 5,405,045 Changes in benefit terms
Differences between expected and actual experience 2,686,781 (2,914,546) Changes of assumptions (11,390,281) (1,01 4,291) (32,786,613) (10,988,323) 8,589,843 Benefit payments (4,263,071) (4,190,67 2) (4,344,188) (4,88 2,802) (4,795,404) Net change in total OPEB liability (7,478,529) 2,864,889 (26,135,923) (8,609,089) 8,058,568 Total OPEB liability - beginning 118,316,704 110,838,175 113,7 03,064 87,567,141 78,958,052 Total OPEB liability - ending (a) $110,838,175 $113,703,064 $87,567,141 $78,958,052 $87,016,620 Plan fiduciary net position
Contributions - employer $4,263,071 $5,190,672 $6,344,188 $7,455,802 $6,795,404 Contributions - employee 377,793 (374,055) 368,000
Net investment income 396,755 31 8,308 455,417 1,012,025 3,350,575 Administrative expense (2,014) (2,234) (1,348) (4,528) (4,628) Other expense (5,491)
Benefit payments (4,263,071) (4,190,67 2) (4,344,188) (4,88 2,802) (4,795,404) Net change in plan fiduciary net position 394,741 1,310,583 2,831,8 62 3,206,442 5,713,947 Plan fiduciary net position - beginning 3,755,234 4,149,975 5,460,5 58 8,292,420 11,498,862 Plan fiduciary net position - ending (b) $4,149,975 $5,460,558 $8,292,420 $11,498,862 $17,212,809 Net OPEB liability - ending (a)-(b) $106,688, 200 $108,242,506 $79,274,721 $67,459,190 $69,803,811 Plan fiduciary net position as a percentage of the total OPEB liability 3.74% 4.80% 9.47% 14.56% 19.78% Covered-employee payroll $97,007,987 $100,78 5,694 $104,434,054 $105, 982,182 $110,872,748 Net OPEB liability as a percentage of covered-employee payroll 109.98% 107.40% 75.91% 63.65% 62.96% Notes to schedule:
* Fiscal year 2018 was the first year of implementation.

Source: GASB 75 Valuation Report

SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS

AGENT MULTIPLE EMPLOYER PLAN
Last 10 fiscal years*

CITY OF HAYWARD

110
Fiscal Year Ended June 30, 2018 2019 2020 2021 2022
Actuarially determined contribution $8,038,027 $8,394,467 $7,004,174 $7,190,835 $7,190,483 Contributions in relation to the
actuarially determined contribution 5,190,672 6,374,161 7,455,802 6,795,404 9,179,251 Contribution deficiency (excess) $2,847,355 $2,020,306 ($451,628) $395,431 ($1,988,768) Covered employee payroll $100,785,694 $104,434 ,054 $105,982,182 $110,872,748 $114,198,930 Contributions as a percentage of
covered payroll 5.15% 6.10% 7.03% 6.13% 8.04%
Notes to Schedule
Valuation Date 6/30/2017 6/30/2017 6/30/2019 6/30 /2019 6/30/2021 Actuarial Assumptions:

Discount Rate 3.56% 3.62% 6.90% 6.90% 6.10%
Inflation 3.00% 2.75% 2.50% 2.50% 2.50%
Payroll Growth 3.25% 3.25% 3.00% 3.00% 3.00%
Investment Rate of Return 7.28% 6.90% 6.90% 6.90% 6.10% Mortality Rate
Pre-Retirement Turnover
Healthcare 5% to 6.5% 5% to 7.5% 4% to 5.4% 4% to 5.4% 3.9% to 5.8% * Fiscal year 2018 was the first year of implementation.

CITY OF HAYWARD
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 assumptions used to determine contribution rates:

Must retire from CalPERS on or after age 65 with at least 10 years of service. 111
This Page Left Intentionally Blank

GENERAL FUND AND SPECIAL REVENUE FUNDS

BUDGET AND ACTUAL SCHEDULES

CITY OF HAYWARD

GENERAL FUND

SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Budgeted Amounts Adjusted Budget
Actual Amounts Positive
Adopted * Ad justed * Bud getary Basis* (Negative)
REVENUES:

Property taxes $58,809,200 $59,645,780 $63,524,226 $3,878,446 Sales taxes 60,283,000 61,283,000 64,666,358 3,383,358
Utility users tax 17,542,000 17,542,000 17,308,117 (233,883) Other taxes 34,301,000 37,070,746 40,989,057 3,918,311
Licenses and permits 7,581,360 7,731,360 7,040,991 (690,369) Fines and forfeitures 2,309,609 2,348,003 2,687,659 339,656 Investment income 299,880 299,880 (1,071,533) (1,371,413) Rental income 350,000 350,000 476 (349,524)
Intergovernmental 7,733,203 7,733,203 6,303,496 (1,429,707) Fees and charges for services 2,229,100 2,229,100 4,271,451 2,042,351 Other revenue 2,109,513 2,114,749 160,055 (1,954,694)
Total Revenues 193,547,865 198,347,821 205,880,353 7,532,532 EXPENDITURES:

Current:

General government 14,636,460 17,443,796 14,916,462 2,527,334 Public safety 129,178,231 129,037,541 134,446,672 (5,409,131) Public works and transportation 3,833,299 4,036,190 4,117,683 (81,493) Library and community services 8,858,781 8,875,450 8,460,055 415,395 Planning and building 8,902,160 10,658,439 9,576,414 1,082,025 Maintenance services 9,607,096 9,939,372 10,364,501 (425,129) Total Expenditures 175,016,027 179,990,788 181,881,787 (1,890,999)

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 18,531,838 18,357,033 23,998,566 5,641,533 OTHER FINANCING SOURCES (USES):

Transfers in 4,319,046 11,920,546 10,297,546 (1,623,000) Transfers (out) (42,608,699) (42,609,699) (42,596,087) 13,612 Total Other Financing Sources (Uses) (38,289,653) (30,689,153) (32,298,541) (1,609,388) NET CHANGE IN FUND BALANCE ($19,757,815) ($12,332,120) (8,299,975) $4,032,145 BEGINNING FUND BALANCE 66,191,407
ENDING FUND BALANCE $57,891,432
* Includes revenue and expenditures related to the City's Measure C District Sales Tax. 114

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, 2022
Variance with
Adjusted Budget
Positive
Original Budget Ad justed Budget Actual (Negative)
REVENUES:

Investment income ($45,996) ($45,996)
Intergovernmental $427,100 $735,370 1,162,481 427,111
Other revenue 171,669 171,669
Total Revenues 427,100 735,370 1,288,154 552,784
EXPENDITURES:

Current:

Public safety 605,325 144,522 460,803
Library and community services 605,619 369,953 235,666
Economic development 441,821 1,031,424 121,096 910,328
Total Expenditures 441,821 2,242,368 635,571 1,606,797

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES (14,721) (1,506,998) 652,583 2,159,581 OTHER FINANCING SOURCES (USES):

Transfers (out) (40,000) (40,000) (40,000)
Total Other Financing Sources (Uses) (40,000) (40,000) (40,000) NET CHANGE IN FUND BALANCE ($14,721) ($1,506,998) 612,583 $2,119,581 BEGINNING FUND BALANCE 14,836,667
ENDING FUND BALANCE $15,449,250
115

CITY OF HAYWARD

AMERICAN RESCUE PLAN ACT SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Adjusted Budget
Positive
Original Budget Final Bud get Actual (Negative)
REVENUES:

Investment income ($251,911) ($251,911)
Intergovernmental 12,295,076 12,295,076
Total Revenues 12,043,165 12,043,165
EXPENDITURES:

Current:

General government $8,743,500 4,348,070 4,395,430
Public safety 41,982 (41,982)
Public works and transportation 1,959,000 89,829 1,869,171 Maintenance services 900,000 313,284 586,716
Total Expenditures 11,602,500 4,793,165 6,809,335

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES (11,602,500) 7,250,000 18,852,500
OTHER FINANCING SOURCES (USES):

Transfers (out) (7,250,000) (7,250,000)
Total Other Financing Sources (Uses) (7,250,000) (7,250,000) NET CHANGE IN FUND BALANCE ($18,852,500) $18,852,500

BEGINNING FUND BALANCE

ENDING FUND BALANCE
116

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, 2022
Variance with
Adjusted Budget
Positive
Original Budget Final Bud get Actual (Negative)
REVENUES:

Investment income $80,000 $80,000 ($128,012) ($208,012) Fees and charges for services 1,222 1,222
Other revenue 120,000 120,000 3,997,427 3,877,427
Total Revenues 200,000 200,000 3,870,637 3,670,637
EXPENDITURES:

Current:

Economic development 207,925 4,851,950 3,928,369 923,581 Total Expenditures 207,925 4,851,950 3,928,369 923,581

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES (7,925) (4,651,950) (57,732) (4,594,218) OTHER FINANCING SOURCES (USES):

Transfers (out) (10,688) (10,688) (10,688)
Total Other Financing Sources (Uses) (10,688) (10,688) (10,688) NET CHANGE IN FUND BALANCE ($18,613) ($4,651,950) (68,420) $4,583,530 BEGINNING FUND BALANCE 22,747,015
ENDING FUND BALANCE $22,678,595
118

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, 2022
Variance with
Adjusted Budget
Positive
Original Budget Final Bud get Actual (Negative)
REVENUES:

Other taxes $734,447 $734,447
Investment income (278,215) (278,215)
Intergovernmental 2,381,143 2,381,143
Other revenue $19,800 8,083,133 8,063,333
Total Revenues 19,800 10,920,508 10,900,708
EXPENDITURES:

Current:

Public works and transportation 48,428 40,743 7,685
Capital outlay $66,746,000 87,466,166 38,247,054 49,219,112 Debt service
Principal 707,992 (707,992)
Interest and fiscal charges 35,411 (35,411)
Total Expenditures 66,746,000 87,514,594 39,031,200 48,483,394

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES (66,746,000) (87,494,794) (28,110,692) 59,384,102 OTHER FINANCING SOURCES (USES):

Issuance of capital lease 1,063,021 (1,063,021)
Transfers in 22,910,000 23,451,561 23,451,560 1
Transfers (out) (351,500) (351,500)
Total Other Financing Sources (Uses) 22,910,000 23,100,061 24,163,081 (1,063,020) NET CHANGE IN FUND BALANCE ($43,836,000) ($64,394,733) (3,947,611) $60,447,122 BEGINNING FUND BALANCE 14,454,839
ENDING FUND BALANCE $10,507,228
119
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COMBINING GENERAL FUND SCHEDULES

General Measure C District
Purpose Sales Tax Total
ASSETS:

Cash, cash equivalents, and investments $39,499,484 $16,269,334 $55,768,818 Accounts receivable, net 898,983 898,983
Loans receivable 50,000 50,000
Due from other governments 9,801,153 3,891,810 13,692,963 Due from other funds 1,091,840 1,091,840
Long-term loans to the Private Purpose Trust Fund 3,636,442 3,636,442 Deposits, parts, supplies and other 4,714 4,714
Total Assets $54,982,616 $20,161,144 $75,143,760
LIABILITIES:

Accounts payable $2,443,110 2,795 $2,445,905
Accrued liabilities 7,258,764 133,010 7,391,774
Long-term interfund payables 2,937,681 2,937,681
Refundable deposits 4,476,968 4,476,968
Total Liabilities 17,116,523 135,805 17,252,328
FUND BALANCES:

Nonspendable 3,641,156 3,641,156
Assigned 20,025,339 20,025,339
Unassigned 34,224,937 34,224,937
Total Fund Balances 37,866,093 20,025,339 57,891,432
Total Liabilities and Fund Balances $54,982,616 $20,161,144 $75,143,760 General Fund

CITY OF HAYWARD

GENERAL FUND

COMBINING BALANCE SHEETS
JUNE 30, 2022
122

CITY OF HAYWARD

GENERAL FUND

COMBINING SCHEDULES OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCE
FOR THE YEAR ENDED JUNE 30, 2022
General Measure C District
Fund Sales Tax Total
REVENUES:

Property taxes $63,524,226 $63,524,226
Sales taxes 44,027,645 $20,638,713 64,666,358
Utility users tax 17,308,117 17,308,117
Other taxes 40,989,057 40,989,057
Licenses and permits 7,040,991 7,040,991
Fines and forfeitures 2,687,659 2,687,659
Investment income (806,133) (265,400) (1,071,533)
Rental income 476 476
Intergovernmental 6,303,496 6,303,496
Fees and charges for services 4,271,451 4,271,451
Other revenue 160,055 160,055
Total Revenues 185,507,040 20,373,313 205,880,353
EXPENDITURES:

Current:

General government 14,916,462 14,916,462
Public safety 134,446,672 134,446,672
Public works and transportation 4,117,683 4,117,683
Library and community services 8,460,055 8,460,055
Planning and building 9,576,414 9,576,414
Maintenance services 5,601,652 4,762,849 10,364,501
Total Expenditures 177,118,938 4,762,849 181,881,787

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 8,388,102 15,610,464 23,998,566 OTHER FINANCING SOURCES (USES):

Transfers in 10,297,546 10,297,546
Transfers (out) (16,949,211) (25,646,876) (42,596,087)
Total Other Financing Sources (Uses) (6,651,665) (25,646,876) (32,298,541) CHANGE IN FUND BALANCES 1,736,437 (10,036,412) (8,299,975) BEGINNING FUND BALANCES 36,129,656 30,061,751 66,191,407 ENDING FUND BALANCES $37,866,093 $20,025,339 $57,891,432 General Fund
123
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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. 125
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.
126
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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 $1,385,302 $269,598 $17,464,648 Accounts receivable, net
Due from other governments 665,401
Interest receivable 2,037
Loans receivable $4,869,321 148,188
Land held for resale
Total Assets $2,050,703 $4,869,321 $419,823 $17,464,648 LIABILITIES:

Accounts payable $404,964 $244,825 $302
Accrued liabilities 18,513 3,285
Due to other funds 105,461
Unearned revenue
Refundable de
posits
Total Liabilities 404,964 368,799 3,587
DEFERRED INFLOWS OF RESOURCES:

Unavailable revenue
Total Deferred Inflows of Resources
FUND BALANCES:

Restricted:

Public safety
Public works and transportation 1,645,739
Planning and building $17,464,648
Economic development 4,500,522 416,236
Debt service
Total Fund Balances 1,645,739 4,500,522 416,236 17,464,648 Total Liabilities, Deferred Inflows of Resources
and Fund Balances $2,050,703 $4,869,321 $419,823 $17,464,648

CITY OF HAYWARD

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEETS
JUNE 30, 2022
128
Business
Improvement Donation Rec ycling
Narcotics Asset
Seizure
Park Maintenance
District
Measure B Local
Streets and Roads
$45,904 $757,361 $5,173,246 $407,447 $3,899,480 $6,223,531 935
182,741 2,937 34,213
68,180
53,631
$46,839 $757,361 $5,477,798 $407,447 $3,902,417 $6,257,744 $18,772 $230,131 $95,244 $214,788
352 14,246
$52,058
19,124 244,377 52,058 95,244 214,788
$936
936
355,389
5,233,421 6,042,956
45,903 738,237 3,807,173
45,903 738,237 5,233,421 355,389 3,807,173 6,042,956
$46,839 $757,361 $5,477,798 $407,447 $3,902,417 $6,257,744 (Continued)

SPECIAL REVENUE FUNDS
129

CITY OF HAYWARD

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEETS
JUNE 30, 2022

SPECIAL REVENUE FUNDS
Measure B
Pedestrian
Measure B
Paratransit Measure BB Measure F
ASSETS:

Cash, cash equivalents, and investments $1,737,027 $1,333,488 $10,637,606 $822,644 Accounts receivable, net
Due from other governments 6,846 12,524 2,265,223 144,788 Interest receivable
Loans receivable
Land held for resale
Tota
l Assets $1,743,873 $1,346,012 $12,902,829 $967,432
LIABILITIES:

Accounts payable $638,455 $145,458 $272,363 $118,166
Accrued liabilities 10,450
Due to other funds
Unearned revenue
Refundable de
posits
Total Liabilities 638,455 155,908 272,363 118,166
DEFERRED INFLOWS OF RESOURCES:

Unavailable revenue
Total Deferred Inflows of Resources
FUND BALANCES:

Restricted:

Public safety
Public works and transportation 1,105,418 1,190,104 12,630,466 849,266 Planning and building
Economic development
Debt service
Total Fund Balances 1,105,418 1,190,104 12,630,466 849,266 Total Liabilities, Deferred Inflows of Resources
and Fund Balances $1,743,873 $1,346,012 $12,902,829 $967,432 130
DEBT

SERVICE CAPITAL

FUND PROJECTS FUND
Local Grants RRAA (SB1)
Rental Housing
Program
Affordable
Housing
Certificates of
Participation
Route 238 Corridor
Improvement
$127,468 $3,020,723 $220,011 $11,488,711 $7,332,491 $1
25,000 366,357 69,854 87,228
2,800 296,507
1,449,000
6,131,113
$155,268 $3,317,230 $586,368 $13,007,565 $7,332,491 $6,218,342 $81,394 $1,759,208 $673 $138,131 $583,040
13,370 $10,461
986,379
366,357
31,885
81,394 1,759,208 380,400 10,461 138,131 1,601,304
87,228
87,228
73,874 1,558,022 4,529,810
205,968 12 ,997,104
7,194,360
73,874 1,558,022 205,968 12,997,104 7,194,360 4,529,810 $155,268 $3,317,230 $586,368 $13,007,565 $7,332,491 $6,218,342 (Continued)

SPECIAL REVENUE FUNDS
131

CITY OF HAYWARD

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEETS
JUNE 30, 2022

CAPITAL PROJECTS FUNDS
Traffic Signal
Construction
Performance
Deposits
Total Nonmajor
Governmental
Funds
ASSETS:

Cash, cash equivalents, and investments $1,051,625 $334,304 $73,732,616 Accounts receivable, net 101,818 651,192
Due from other governments 3,613,980
Interest receivable 70,217
Loans receivable 6,520,140
Land held for resale 6,131,113
Total Assets $1,153,443 $334,304 $90,719,258
LIABILITIES:

Accounts payable $68,282 $5,014,196
Accrued liabilities $2,572 73,249
Due to other funds 1,091,840
Unearned revenue 418,415
Refundable deposits 306,249 338,134
Total Liabilities 68,282 308,821 6,935,834
DEFERRED INFLOWS OF RESOURCES:

Unavailable revenue 101,818 189,982
Total Deferred Inflows of Resources 101,818 189,982
FUND BALANCES:

Restricted:

Public safety 355,389
Public works and transportation 983,343 25,483 35,867,902 Planning and building 22,055,961
Economic development 18,119,830
Debt service 7,194,360
Total Fund Balances 983,343 25,483 83,593,442
Total Liabilities, Deferred Inflows of Resources
and Fund Balances $1,153,443 $334,304 $90,719,258
132
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Special
Gasoline Tax
Community
Development
Block Grant
Program
Housing
Mortgage
Revenue
Bonds
Park Dedication
Ordinance
REVENUES:

Other taxes
Special assessments
Investment income ($25,640) $399,215 $28,575 ($271,249) Rental income
Inter
governmental 3,674,273 466,091
Fines and forfeitures
Fees and charges for services
Other revenue 496,350 (13,871) 169,652 2,405,324
Total Revenues 4,144,983 851,435 198,227 2,134,075
EXPENDITURES:

Current:

Public safety
Public works and transportation 1,055,191 1,615,170
Library and community services 148,664
Economic development 180,160
Maintenance services 132,139
Capital outlay 1,777,846
Debt service:

Principal
Interest and fiscal charges
Total Expenditures 2,965,176 1,763,834 180,160

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 1,179,807 (912,399) 18,067 2,134,075

OTHER FINANCING SOURCES (USES)
Transfers in 15,000
Transfers (out) (988,000) (7,426) (30,251)
Total Other Financing Sources (Uses) (973,000) (7,426) (30,251) NET CHANGE IN FUND BALANCES 206,807 (919,825) (12,184) 2,134,075 BEGINNING FUND BALANCES 1,438,932 5,420,347 428,420 15,330,573 ENDING FUND BALANCES $1,645,739 $4,500,522 $416,236 $17,464,648

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, 2022
134
Business
Improvement Donation Rec ycling
Narcotics Asset
Seizure
Park Maintenance
District
Measure B Local
Streets and Roads
$570,491
$1,427,107
($1,259) ($15,368) (87,113) ($4,720) (81,469) ($124,208) 2,550,955 2,399,646
220,655
226,270
(1,259) 210,902 3,034,333 215,935 1,345,638 2,275,438
142,851 371,540
81,597 805,747
561,685
1,208,020
8,692 661,974 304,698
233,140 2,029,406 371,540 1,208,020 304,698
(1,259) (22,238) 1,004,927 (155,605) 137,618 1,970,740
7,000
(62,717)
7,000 (62,717)
(1,259) (15,238) 942,210 (155,605) 137,618 1,970,740
47,162 753,475 4,291,211 510,994 3,669,555 4,072,216
$45,903 $738,237 $5,233,421 $355,389 $3,807,173 $6,042,956 (Continued)

SPECIAL REVENUE FUNDS
135

CITY OF HAYWARD

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENTS OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2022

SPECIAL REVENUE FUNDS
Measure B
Pedestrian
Measure B
Paratransit Measure BB Measure F
REVENUES:

Other taxes
Special assessments
Investment income ($36,162) ($27,839) ($191,734) ($14,091) Rental income
Inter
governmental 480,182 878,422 5,517,640 847,136
Fines and forfeitures
Fees and charges for services
Other revenue
Total Revenues 444,020 850,583 5,325,906 833,045
EXPENDITURES:

Current:

Public safety
Public works and transportation 113,911 162,072
Library and community services 1,056,911
Economic development
Maintenance services
Capital outlay 800,560 4,897,480 780,165
Debt service:

Principal
Interest and fiscal charges
Total Expenditures 800,560 1,056,911 5,011,391 942,237

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (356,540) (206,328) 314,515 (109,192)

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers (out) (70,099)
Total Other Financing Sources (Uses) (70,099)
NET CHANGE IN FUND BALANCES (356,540) (276,427) 314,515 (109,192) BEGINNING FUND BALANCES 1,461,958 1,466,531 12,315,951 958,458 ENDING FUND BALANCES $1,105,418 $1,190,104 $12,630,466 $849,266 136
DEBT

SERVICE CAPITAL

FUND PROJECTS FUND
Local Grants RRAA (SB1)
Rental Housing
Program
Affordable
Housing
Certificates of
Participation
Route 238 Corridor
Improvement
($416) ($52,039) ($5,927) ($219,483) ($123,539) ($152,153) 639,501 83,348
431,208 3,192,806
3,462,770 569,764
10,000 100 1,443,971
440,792 3,140,767 633,674 3,243,287 (123,539) 1,944,930 399,895
1,759,208
628,290 1,816,303
3,000,000 2,167,740
5,549,560
2,580,563
399,895 4,759,208 628,290 1,816,303 8,130,123 2,167,740 40,897 (1,618,441) 5,384 1,426,984 (8,253,662) (222,810) 8,136,340 185,000
(14,169) (6,768)
(14,169) (6,768) 8,136,340 185,000
40,897 (1,618,441) (8,785) 1,420,216 (117,322) (37,810) 32,977 3,176,463 214,753 11,576,888 7,311,682 4,567,620 $73,874 $1,558,022 $205,968 $12,997,104 $7,194,360 $4,529,810 (Continued)

SPECIAL REVENUE FUNDS
137

CITY OF HAYWARD

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENTS OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2022

CAPITAL PROJECTS FUNDS
Traffic Signal
Construction
Performance
Deposits
Total Nonmajor
Governmental
Funds
REVENUES:

Other taxes $570,491
Special assessments 1,427,107
Investment income ($19,861) ($6,750) (1,033,230)
Rental income 722,849
Intergovernmental 550 20,438,909
Fines and forfeitures 220,655
Fees and charges for services 4,032,534
Other revenue 4,737,796
Total Revenues (19,311) (6,750) 31,117,111
EXPENDITURES:

Current:

Public safety 914,286
Public works and transportation 5,592,896
Library and community services 1,767,260
Economic development 2,624,753
Maintenance services 1,340,159
Capital outlay 649,916 15,049,071
Debt service:

Principal 5,549,560
Interest and fiscal charges 2,580,563
Total Expenditures 649,916 35,418,548

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (669,227) (6,750) (4,301,437)

OTHER FINANCING SOURCES (USES)
Transfers in 650,000 8,993,340
Transfers (out) (1,179,430)
Total Other Financing Sources (Uses) 650,000 7,813,910
NET CHANGE IN FUND BALANCES (19,227) (6,750) 3,512,473
BEGINNING FUND BALANCES 1,002,570 32,233 80,080,969
ENDING FUND BALANCES $983,343 $25,483 $83,593,442
138
This Page Left Intentionally Blank

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, 2022
Special Gasoline Tax Communit y Development Block Grant Program Adjusted
Budget Actual
Variance
Positive
(Negative)
Adjusted
Budget Actual
Variance
Positive
(Negative)
REVENUES:

Other taxes
Special assessments
Investment income ($25,640) ($25,640) $399,215 $399,215 Rental income
Inter
governmental 3,674,273 3,674,273 $1,589,336 466,091 (1,123,245) Fees and charges for services
Other revenue 496,350 496,350 793,006 (13,871) (806,877) Total Revenues 4,144,983 4,144,983 2,382,342 851,435 (1,530,907) EXPENDITURES:

Current:

Public safety
Public works and transportation $237,563 1,055,191 (817,628) 2,730,752 1,615,170 1,115,582 Library and community services 492,136 148,664 343,472
Economic development
Maintenance services 47,153 132,139 (84,986)
Capital outlay 3,710,287 1,777,846 1,932,441
Debt service
Principal
Interest and fiscal char
ges
Total Expenditures 3,995,003 2,965, 176 1,029,827 3,222,888 1,763,834 1,459,054

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (3,995,003) 1,179, 807 5,174,810 (840,546) (912,399) (71,853)

OTHER FINANCING SOURCES (USES)
Transfers in 15,000 15,000
Transfers (out) (988,000) (988,000) (7,426) (7,426)
Total Other Financin
g Sources (Uses) (973,000) (973,000) (7,426) (7,426)
NET CHANGE IN FUND BALANCES ($4,968,003) 206,807 $5,174,810 ($847,972) (919,825) ($71,853) BEGINNING FUND BALANCES 1,438,932 5,420,347
ENDING FUND BALANCES $1,645,739 $4,500,522

SPECIAL REVENUE FUNDS
140
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 $28,575 $23,075 ($271,249) ($271,249) ($1,259) ($1,259) 150,000 169,652 19,652 $2,235,906 2,405,324 169,418
155,500 198,227 42,727 2,235,906 2,134, 075 (101,831) (1,259) (1,259) 210,266 180,160 30,106 2,638,816 2,638,816
210,266 180,160 30,106 2,638,816 2,638,816
(54,766) 18,067 72,833 (402,910) 2, 134,075 2,536,985 (1,259) (1,259) (30,251) (30,251)
(30,251) (30,251)
($85,017) (12,184) $72,833 ($402,910) 2, 134,075 $2,536,985 (1,259) ($1,259) 428,420 15,330,573 47,162
$416,236 $17,464,648 $45,903
(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, 2022
Adjusted
Budget Actual
Variance
Positive
(Negative)
Adjusted
Budget Actual
Variance
Positive
(Negative)
REVENUES:

Other taxes $502,960 $570,491 $67,531
Special assessments
Investment income ($15,368) ($15,368) 4,000 (87,113) (91,113) Rental income
Inter
governmental 1,217,734 2,550,955 1,333,221
Fees and charges for services
Other revenue $70,000 226,270 156,270 2,500 (2,500)
Total Revenues 70,000 210,902 140,902 1,727,194 3,034,333 1,307,139 EXPENDITURES:

Current:

Public safety 427,919 142,851 285,068
Public works and transportation 163,116 81,597 81,519 2,965,694 805,747 2,159,947 Library and community services 1,241,346 561,685 679,661 Economic development
Maintenance services
Capital outla
y 8,692 (8,692) 662,000 661,974 26
Debt service
Principal
Interest and fiscal char
ges
Total Expenditures 591,035 233, 140 357,895 4,869,040 2,029,406 2,839,634

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (521,035) (22,238) 498,797 (3,141,846) 1,004,927 4,146,773

OTHER FINANCING SOURCES (USES)
Transfers in 7,000 7,000
Transfers (out) (62,717) (62,717)
Total Other Financin
g Sources (Uses) 7,000 7,000 (62,717) (62,717)
NET CHANGE IN FUND BALANCES ($514,035) (15,238) $498,797 ($3,204,563) 942,210 $4,146,773 BEGINNING FUND BALANCES 753,475 4,291,211
ENDING FUND BALANCES $738,237 $5,233,421

SPECIAL REVENUE FUNDS
Donation Recycling
142
Adjusted
Budget Actual
Variance
Positive
(Negative)
Adjusted
Budget Actual
Variance
Positive
(Negative)
Adjusted
Budget Actual
Variance
Positive
(Negative)
$1,385,060 $1,427,107 $42,047
($4,720) ($4,720) 22,495 (81, 469) (103,964) ($124,208) ($124,208) 2,399,646 2,399,646
220,655 220,655
215,935 215,935 1,407,555 1,345,638 (61,917) 2,275,438 2,275,438 371,540 (371,540)
2,114,925 1,208,020 906,905
$5,282,066 304,698 4,977,368
371,540 (371,540) 2,114,925 1,208,020 906,905 5,282,066 304,698 4,977,368 (155,605) (155,605) (707,370) 137,618 844, 988 (5,282,066) 1,970,740 7,252,806 (155,605) ($155,605) ($707,370) 137,618 $844, 988 ($5,282,066) 1,970,740 $7,252,806 510,994 3,669,555 4,072,216
$355,389 $3,807,173 $6,042,956
(Continued)

SPECIAL REVENUE FUNDS
Park Maintenance DistrictNarcotics Asset Seizure Measure B Local Streets and Roads 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, 2022
Measure B Paratransit
Adjusted
Budget Actual
Variance
Positive
(Negative)
Adjusted
Budget Actual
Variance
Positive
(Negative)
REVENUES:

Other taxes
Special assessments
Investment income ($36,162) ($36,162) ($27,839) ($27,839) Rental income
Inter
governmental 480,182 480,182 $713,196 878,422 165,226
Fees and charges for services
Other revenue
Total Revenues 444,020 444,020 713,196 850,583 137,387
EXPENDITURES:

Current:

Public safety
Public works and transportation
Librar
y and community services 2,237,934 1,056,911 1,181,023
Economic development
Maintenance services
Capital outla
y $1,064,138 800,560 263,578
Debt service
Principal
Interest and fiscal char
ges
Total Expenditures 1,064,138 800, 560 263,578 2,237,934 1,056,911 1,181,023

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (1,064,138) (356, 540) 707,598 (1,524,738) (206,328) 1,318,410

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers (out) (70,099) (70,099)
Total Other Financin
g Sources (Uses) (70,099) (70,099)
NET CHANGE IN FUND BALANCES ($1,064,138) (356,540) $707,598 ($1,594,837) (276,427) $1,318,410 BEGINNING FUND BALANCES 1,461,958 1,466,531
ENDING FUND BALANCES $1,105,418 $1,190,104

SPECIAL REVENUE FUNDS
Measure B Pedestrian
144

Measure BB Measure F Local Grants
Adjusted
Budget Actual
Variance
Positive
(Negative)
Adjusted
Budget Actual
Variance
Positive
(Negative)
Adjusted
Budget Actual
Variance
Positive
(Negative)
($191,734) ($191,734) ($14,091) ($14,091) ($416) ($416) $985,415 5,517,640 4,532,225 847,136 847,136 $633,391 431,208 (202,183) 10,000 10,000
985,415 5,325,906 4,340,491 833,045 833,045 633,391 440,792 (192,599) 840,070 399,895 440,175
3,776,610 113,911 3,662,699 $850,000 162,072 687,928
11,222,276 4,897,480 6,324,796 997,491 780,165 217,326
14,998,886 5,011,391 9,987,495 1,847, 491 942,237 905,254 840,070 399,895 440,175 (14,013,471) 314,515 14,327,986 (1,847,491) (109,192) 1,738,299 (206,679) 40,897 247,576 ($14,013,471) 314,515 $14,327,986 ($1,847,491) (109,192) $1,738,299 ($206,679) 40,897 $247,576 12,315,951 958,458 32,977
$12,630,466 $849,266 $73,874
(Continued)

SPECIAL REVENUE FUNDS
145

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, 2022

SPECIAL REVENUE FUNDS
RRAA (SB1)
Adjusted
Budget Actual
Variance
Positive
(Negative)
Adjusted
Budget Actual
Variance
Positive
(Negative)
REVENUES:

Other taxes
Special assessments
Investment income ($52,039) ($52,039) ($5,927) ($5,927) Rental income $550,000 639,501 89,501
Inter
governmental 3,192,806 3,192,806
Fees and charges for services
Other revenue 100 100
Total Revenues 3,140,767 3,140,767 550,000 633,674 83,674 EXPENDITURES:

Current:

Public safety
Public works and transportation $2,900,000 1,759,208 1,140,792 Library and community services
Economic development 611,038 628,290 (17,252)
Maintenance services
Capital outla
y 3,000,000 3,000,000
Debt Service
Principal
Interest and fiscal char
ges
Total Expenditures 5,900,000 4, 759,208 1,140,792 611,038 628,290 (17,252)

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (5,900,000) (1, 618,441) 4,281,559 (61,038) 5,384 66,422

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers (out) 14,169 (14,169) (28,338)
Total Other Financin
g Sources (Uses) 14,169 (14,169) (28,338)
NET CHANGE IN FUND BALANCES ($5,900,000) (1,618,441) $4,281,559 ($46,869) (8,785) $38,084 BEGINNING FUND BALANCES 3,176,463 214,753
ENDING FUND BALANCES $1,558,022 $205,968
Rental Housing Program
146

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)
($219,483) ($219,483) $3,000 ($123,539) ($126,539) ($152,153) ($152,153) 83,348 83,348
3,462,770 3,462,770 569,764 569,764
1,443,971 1,443,971
3,243,287 3,243,287 3,000 (123,539) (126,539) 1,944,930 1,944,930 $10,227,982 1,816,303 8,411,679
$20,180,087 2,167,740 18,012,347
5,558,260 5,549,560 8,700
2,578,380 2,580,563 (2,183)
10,227,982 1,816,303 8,411,679 8,136,640 8,130,123 6,517 20,180,087 2,167,740 18,012,347 (10,227,982) 1,426,984 11,654,966 (8,133,640) (8,253,662) (120,022) (20,180,087) (222,810) 19,957,277 8,136,340 8,136,340 185,000 185,000
(6,768) (6,768)
(6,768) (6,768) 8,136,340 8,136,340 185,000 185,000
($10,234,750) 1,420,216 $11,654,966 $2,700 (117, 322) ($120,022) ($19,995,087) (37,810) $19,957,277 11,576,888 7,311,682 4,567,620
$12,997,104 $7,194,360 $4,529,810
(Continued)
Route 238 Corridor ImprovementAffordable Housing
147

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, 2022

CAPITAL PROJECTS FUNDS
Traffic Signal Construction
Adjusted
Budget Actual
Variance
Positive
(Negative)
REVENUES:

Other taxes
Special assessments
Investment income ($19,861) ($19,861)
Rental income
Inter
governmental 550 550
Fees and charges for services
Other revenue
Total Revenues (19,311) (19,311)
EXPENDITURES:

Current:

Public safety
Public works and transportation
Librar
y and community services
Economic development
Maintenance services
Capital outla
y $2,196,205 649,916 1,546,289
Debt Service
Principal
Interest and fiscal char
ges
Total Expenditures 2,196,205 649,916 1,546,289

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (2,196,205) (669,227) 1,526,978

OTHER FINANCING SOURCES (USES)
Transfers in 650,000 650,000
Transfers (out)
Total Other Financin
g Sources (Uses) 650,000 650,000
NET CHANGE IN FUND BALANCES ($1,546,205) (19,227) $1,526,978 BEGINNING FUND BALANCES 1,002,570
ENDING FUND BALANCES $983,343
148

NON-MAJOR ENTERPRISE FUNDS
Stormwater Fund
– Accounts for activities with stormwater management and urban runoff control, as required by Federal and State law.

Recycling Fund – Accounts for the transactions related to the City’s recycling and waste reduction programs.
149

CITY OF HAYWARD

NONMAJOR ENTERPRISE FUNDS

COMBINING STATEMENTS OF NET POSITION
JUNE 30, 2022
Stormwater Recycling Totals
Current Assets:

Cash and investments $7,231,770 $7,231,770
Accounts receivable, net 1,762,781 $28,390 1,791,171
Due from other governments 10,561 10,561
Deposits, parts, supplies and othe
r
Total Current Assets 9,005,112 28,390 9,033,502
Noncurrent Assets:

Capital assets
Land
Construction in progress
Depreciable capital assets, ne
t 418 418
Total Noncurrent Assets 418 418
Total Assets 9,005,530 28,390 9,033,920

DEFERRED OUTFLOWS OF RESOURCES
Related to pensions 232,776 22,973 255,749
Related to OPEB 257,584 25,421 283,005
Total Deferred Outflows of Resources 490,360 48,394 538,754 LIABILITIES:

Current Liabilities:

Accounts payable 26,009 1,131 27,140
Accrued interest
Accrued liabilities 69,005 3,447 72,452
Refundable deposits
Due to other funds 329,813 329,813
Compensated absences, due within one yea
r 83,189 83,189
Long term debt, due within one year
Total Current Liabilities 178,203 334,391 512,594
Noncurrent Liabilities:

Compensated absences, due in more than one year 29,169 29,169 Net pension liabilities, due in more than one year 1,736,567 171,383 1,907,950 Net OPEB liabilities, due in more than one year 1,008,002 99,481 1,107,483 Long term debt, due in more than one year
Total Noncurrent Liabilities 2,773,738 270,864 3,044,602 Total Liabilities 2,951,941 605,255 3,557,196

DEFERRED INFLOWS OF RESOURCES
Related to pensions 547,214 54,005 601,219
Related to OPEB 460,878 45,485 506,363
Total Deferred Inflows of Resources 1,008,092 99,490 1,107,582 NET POSITION:

Net investments in capital assets 418 418
Unrestricted 5,535,439 (627,961) 4,907,478
Total Net Position $5,535,857 ($627,961) $4,907,896
150

CITY OF HAYWARD

NONMAJOR ENTERPRISE FUNDS

COMBINING STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED JUNE 30, 2022
Stormwater Recycling Total
OPERATING REVENUES:

Charges for services $3,572,696 $104,027 $3,676,723
Miscellaneous 46,200 46,200
Total Operating Revenues 3,618,896 104,027 3,722,923
OPERATING EXPENSES:

Salaries and related expenses 1,930,638 224,185 2,154,823 Materials, supplies and services 714,043 16,015 730,058 Repairs and maintenance 13,909 13,909
Depreciation 165 165
Total Operating Expenses 2,658,755 240,200 2,898,955
Operating Income (Loss) 960,141 (136,173) 823,968
NONOPERATING REVENUES:

Investment income (143,762) (10,442) (154,204)
Net Nonoperating Revenues (143,762) (10,442) (154,204)
Income (Loss) Before Contributions and Transfers 816,379 (146,615) 669,764

TRANSFERS
Transfers in 1,841,000 600,000 2,441,000
Transfers (out) (248,798) (802,996) (1,051,794)
Net Transfers 1,592,202 (202,996) 1,389,206
CHANGE IN NET POSITION 2,408,581 (349,611) 2,058,970
BEGINNING NET POSITION 3,127,276 (278,350) 2,848,926
ENDING NET POSITION $5,535,857 ($627,961) $4,907,896
151

CITY OF HAYWARD

NONMAJOR ENTERPRISE FUNDS

COMBINING STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2022
Stormwater Recycling Total

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $3,599,047 $104,027 $3,703,074
Payments to suppliers (732,478) (13,438) (745,916)
Payments to employees (2,089,331) (70,913) (2,160,244)
Net Cash Flows From Operating Activities 777,238 19,676 796,914

CASH FLOWS FROM NONCAPITAL AND
RELATED FINANCING ACTIVITIES:

Interfund receipts 193,762 193,762
Transfers in 1,841,000 600,000 2,441,000
Transfers (out) (248,798) (802,996) (1,051,794)
Net Cash Flows From Noncapital and
Related Financing Activities 1,592,202 (9,234) 1,582,968

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition of capital assets
Principal payments on capital debt
Interest paid on capital debt
Net Cash Flows From Capital and
Related Financing Activities
CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income (143,762) (10,442) (154,204)
Net Cash Flows From Investing Activities (143,762) (10,442) (154,204) NET CASH FLOWS 2,225,678 2,225,678
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD 5,006,092 5,006,092 CASH AND EQUIVALENTS AT END OF PERIOD $7,231,770 $7,231,770

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

Operating income (loss) $960,141 ($136,173) $823,968
Adjustments to reconcile operating income to net cash
provided by operating activities:

Depreciation 165 165
Change in assets and liabilities:

Receivables, net (19,277) 36,836 17,559
Due from other governments (572) (572)
Accounts payable and other accrued expenses (4,526) 2,577 (1,949) Due to retirement system (61,375) 78,601 17,226
Due to OPEB (95,300) 37,835 (57,465)
Compensated absences (2,018) (2,018)
Net Cash Flows From Operating Activities $777,238 $19,676 $796,914 152

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.
153
Workers'
Compensation
Insurance* General Liability
Facilities
Management
ASSETS:

Current Assets:

Cash and investments $33,550,294 $5,001,781 $1,799,381
Accounts receivable, net 189,210 1,694 22,713
Deposits, parts, supplies and other 200,000
Due from other governments
Total Current Assets 33,939,504 5,003,475 1,822,094
Noncurrent Assets:

Long-term loans to the Private Purpose Trust Fund 27,021 Land 372,748
Construction in progress 435,698
Depreciable capital assets, net 2,400,921
Total Noncurrent Assets 27,021 3,209,367
Total Assets 33,939,504 5,030,496 5,031,461
DEFERRED OUTFLOWS OF RESOURCES:

Related to pensions 81,534 65,089 240,201
Related to OPEB 90,224 72,026 265,800
Total Deferred Outflows of Resources 171,758 137,115 506,001 LIABILITIES:

Current Liabilities:

Accounts payable 39,962 854,790 482,828
Accrued interest
Accrued liabilities* 13,815,275 7,496,147 61,146
Unearned revenue 3,800 907
Refundable deposits 5,937
Compensated absences, due within one year 21,636 39,801 114,271 Long-term debt, due within one year
Total Current Liabilities 13,880,673 8,390,738 665,089
Noncurrent Liabilities:

Compensated absences, due in more than one year 5,052 9,293 26,682 Net pension liabilities, due in more than one year 608,262 485,580 1,791,955 Net OPEB liabilities, due in more than one year 353,071 281,859 1,040,154 Long-term debt, due in more than one year
Total Noncurrent Liabilities 966,385 776,732 2,858,791
Total Liabilities 14,847,058 9,167,470 3,523,880
DEFERRED INFLOWS OF RESOURCES:

Related to pensions 191,673 153,013 564,668
Related to OPEB 161,431 128,871 475,578
Total Deferred Inflows of Resources 353,104 281,884 1,040,246 NET POSITION:

Net investments in capital assets 3,209,367
Unrestricted 18,911,100 (4,281,743) (2,236,031)
Total Net Position $18,911,100 ($4,281,743) $973,336
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, 2022
154
Fleet Management
Technology Services Employee Benefits Total
$7,003,401 $5,965,994 $4,498,398 $57,819,249
271,355 74,652 559,624
76,855 276,855
4,554 4,554
7,356,165 6,040,646 4,498,398 58,660,282
27,021
372,748
176,992 612,690
15,515,792 3,750,357 21,667,070
15,692,784 3,750,357 22,679,529
23,048,949 9,791,003 4,498,398 81,339,811
221,061 345,851 953,736
244,621 382,711 1,055,382
465,682 728,562 2,009,118
520,754 633,637 7,273 2,539,244
3,631 3,631
82,624 129,370 21,584,562
7,071 12,418 24,196
5,937
84,590 304,744 565,042
227,551 227,551
926,221 1,080,169 7,273 24,950,163
19,751 71,156 131,934
1,649,166 2,580,142 7,115,105
957,272 1,497,659 4,130,015
378,788 378,788
3,004,977 4,148,957 11,755,842
3,931,198 5,229,126 7,273 36,706,005
519,674 813,031 2,242,059
437,683 684,759 1,888,322
957,357 1,497,790 4,130,381
15,086,445 3,750,357 22,046,169
3,539,631 42,292 4,491,125 20,466,374
$18,626,076 $3,792,649 $4,491,125 $42,512,543
155

CITY OF HAYWARD

INTERNAL SERVICE FUNDS

COMBINING STATEMENTS OF REVENUES, EXPENSES AND

CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2022
Workers'
Compensation
Insurance General Liability
Facilities
Management

OPERATING REVENUES
Charges for services $10,257,168 $4,438,284
Other $33,735 199,541
Total Operating Revenues 10,257,168 33,735 4,637,825

OPERATING EXPENSES
Salaries and related expenses 762,941 832,414 2,405,623 Materials, supplies and services 596,182 5,381,452 2,054,094 Repairs and maintenance 1,047,740
Self-funded insurance expense 3,621,500 794,731
Depreciation 122,594
Total Operating Expenses 4,980,623 7,008,597 5,630,051
Operating Income (Loss) 5,276,545 (6,974,862) (992,226)

NONOPERATING REVENUES (EXPENSES)
Investment income (678,734) (99,974) (36,031)
Interest (expense)
Gain (loss) on sale of capital assets
Total Nonoperating Revenues (Expenses) (678,734) (99,974) (36,031) Income (Loss) Before Transfers 4,597,811 (7,074,836) (1,028,257)

CONTRIBUTIONS AND TRANSFERS
Transfers in 5,705,405 1,271,625
Transfers (out) (42,883) (18,801) (101,528)
Net Contributions and Transfers (42,883) 5,686,604 1,170,097 CHANGE IN NET POSITION 4,554,928 (1,388,232) 141,840
BEGINNING NET POSITION (DEFICIT) 14,356,172 (2,893,511) 831,496 ENDING NET POSITION (DEFICIT) $18,911,100 ($4,281,743) $973,336 156
Fleet Management
Technology Services Employee Benefits Total
$5,859,499 $7,446,973 $3,650,510 $31,652,434
49,208 890,399 11,750 1,184,633
5,908,707 8,337,372 3,662,260 32,837,067
1,957,167 2,707,990 8,666,135
866,023 3,207,882 758,114 12,863,747
1,277,257 1,714,302 4,039,299
1,888 6,867,729 11,285,848
2,537,373 366,329 3,026,296
6,637,820 7,998,391 7,625,843 39,881,325
(729,113) 338,981 (3,963,583) (7,044,258)
(145,897) (111,595) (77,805) (1,150,036)
(21,323) (21,323)
64,112 (26,847) 37,265
(103,108) (138,442) (77,805) (1,134,094)
(832,221) 200,539 (4,041,388) (8,178,352)
650,000 1,416,117 4,278,529 13,321,676
(141,815) (218,675) (523,702)
508,185 1,197,442 4,278,529 12,797,974
(324,036) 1,397,981 237,141 4,619,622
18,950,112 2,394,668 4,253,984 37,892,921
$18,626,076 $3,792,649 $4,491,125 $42,512,543
157

CITY OF HAYWARD

INTERNAL SERVICE FUNDS

COMBINING STATEMENTS OF CASH FLOW
FOR THE YEAR ENDED JUNE 30, 2022
Workers'
Compensation General Facilities
Insurance Liabilit y Management

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $10,364,403 $33,735 $4,617,435
Payments to suppliers (4,050,637) (5,030,293) (2,917,546) Payments to employees (701,463) (967,136) (1,879,941)
Cash Flows from Operating Activities 5,612,303 (5,963,694) (180,052)

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Transfers in 5,705,405 1,271,625
Transfers out (42,883) (18,801) (101,528)
Cash Flows from Noncapital Financing Activities (42,883) 5,686,604 1,170,097

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition of capital assets (435,174)
Proceeds from sale of capital assets
Principal payments on capital deb
t
Interest paid on capital debt
Cash Flows from Capital and Related
Financing Activities (435,174)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment income - loss in fair value (678,734) (99,974) (36,031) Cash Flows from Investing Activities (678,734) (99,974) (36,031) Net increase (decrease) in cash and cash equivalents 4,890,686 (377,064) 518,840 Cash and cash equivalents at beginning of period 28,659,608 5,378,845 1,280,541 Cash and cash equivalents at end of period $33,550,294 $5,001,781 $1,799,381 Reconciliation of operating income (loss) to net cash provided by operating activities:

Operating income (loss) $5,276,545 ($6,974,862) ($992,226) Adjustments to reconcile operating income to net cash provide d
by operating activities:

Depreciation 122,594
Change in assets and liabilities:

Receivables, net 307,235 (16,697)
Deposits, parts, supplies and other (200,000)
Due from other governments
Accounts payable and other accrued expenses 167,045 1,145,890 184,288 Due to retirement syste
m 55,391 (74,085) 358,676
Due to OPEB 15,635 (60,513) 160,783
Compensated absences (9,548) (124) 6,223
Unearned revenue (3,693)
Cash Flows from Operating Activities $5,612,303 ($5,963,694) ($180,052) NON-CASH TRANSACTIONS:

Retirement of capital assets
158

Fleet Technology Employee
Management Services Benefits Total
$5,656,932 $8,340,029 $3,662,260 $32,674,794
(2,281,185) (4,878,270) (7,625,760) (26,783,691)
(1,776,444) (4,314,625) (9,639,609)
1,599,303 (852,866) (3,963,500) (3,748,506)
650,000 1,416,117 4,278,529 13,321,676
(141,815) (218,675) (523,702)
508,185 1,197,442 4,278,529 12,797,974
(2,210,960) (347,660) (2,993,794)
(220,936) (220,936)
(22,884) (22,884)
(2,454,780) (347,660) (3,237,614)
(145,897) (111,595) (77,805) (1,150,036)
(145,897) (111,595) (77,805) (1,150,036)
(493,189) (114,679) 237,224 4,661,818
7,496,590 6,080,673 4,261,174 53,157,431
$7,003,401 $5,965,994 $4,498,398 $57,819,249
($729,113) $338,981 ($3,963,583) ($7,044,258)
2,537,373 366,329 3,026,296
(263,024) 2,657 30,171
(76,855) (276,855)
88,104 88,104
(137,905) 45,802 83 1,405,203
143,779 (930,739) (446,978)
38,032 (655,751) (501,814)
(1,088) (20,145) (24,682)
(3,693)
$1,599,303 ($852,866) ($3,963,500) ($3,748,506)
$64,112 ($26,847) $37,265
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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.
161

CUSTODIAL FUNDS

COMBINING STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2022
Local South Ha yward
Improvement BART Parkin g Other Custodial
Districts Fund District JPA Fund Funds Total
ASSETS:

Cash and investments $3,740,821 $907,248 $208,792 $4,856,861 Cash and investments with fiscal agents 353,913 353,913 Accounts receivable, net 3,053 1,057,873 1,060,926
Due from other governments 83,593 366 83,959
Deposits, parts, supplies and other 201,524 201,524
Total Assets 4,382,904 1,965,121 209,158 6,557,183
CURRENT LIABILITIES:

Accounts payable and accrued liabilities 183,679 45,538 229,217 Deferred revenue 79,988 1,057,873 1,137,861
Refundable deposits 34,536 11,393 45,929
Total Liabilities 298,203 1,103,411 11,393 1,413,007

NET POSITION
Restricted for:

Organizations and other governments 861,710 197,765 1,059,475 Bondholders 4,084,701 4,084,701
Total Net Position $4,084,701 $861,710 $197,765 $5,144,176 Custodial Funds

CITY OF HAYWARD
162
Local South Ha yward
Improvement BART Parkin g Other Custodial
Districts Fund District JPA Fund Funds Total

ADDITIONS
Property tax $1,107,050 $1,107,050
Special assessment $176,333 176,333
Intergovernmental revenue 41,396 41,396
Other revenue 18,445 18,445
Investment income (74,463) ($18,371) (3,178) (96,012)
Total additions 1,032,587 (18,371) 232,996 1,247,212

DEDUCTIONS
Maintenance services 491,136 5,052 496,188
Contractual services 45,538 57,040 102,578
Pa
yments to bondholders 362,762 362,762
Interest and fiscal charges 202,126 202,126
Total deductions 1,056,024 50,590 57,040 1,163,654
Net change in position (23,437) (68,961) 175,956 83,558 Net position - beginning 4,108,138 930,671 21,809 5,060,618 Net position - ending $4,084,701 $861,710 $197,765 $5,144,176 Custodial Funds

CITY OF HAYWARD

COMBINING STATEMENT OF CHANGES IN CUSTODIAL FUND NET POSITION FOR THE YEAR ENDED JUNE 30, 2022
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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.
167
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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,
2013 2014 2015* 2016 2017 2018 2019 2020 2021 2022
Governmental activities
Net investment in capital assets $279,525,198 $290,077, 936 $305,320,098 $254,986,441 $324,056,697 $324,408,453 $329,532,552 $340,992,711 $357,492,270 $385,787,176 Restricted 42,224,510 31,382,199 33,021,745 68,045,952 68, 431,025 37,795,705 41,119,395 94,077,986 117,664,651 121,721,287 Unrestricted 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) (343,965,833) Total governmental activities net position $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 $163,542,630 Business-type activities
Net investment in capital assets $116,593,166 $128,869, 837 $129,150,393 $128,152,757 $134,479,298 $141,998,213 $148,443,353 $148,432,952 $145,334,998 $145,781,120 Restricted 0000000 284,001 2 2
Unrestricted 140,296,857 143,368,162 140,262,979 156,403,925 160,313,212 148,088,671 172,060,648 200,188,102 223,235,836 234,270,711 Total business-type activities net position $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 $380,051,833 Primary government
Net investment in capital assets $396,118,364 $418,947, 773 $434,470,491 $383,139,198 $458,535,995 $466,406,666 $477,975,905 $489,425,663 $502,827,268 $531,568,296 Restricted 42,224,510 31,382,199 33,021,745 68,045,952 68, 431,025 37,795,705 41,119,395 94,361,987 117,664,653 121,721,289 Unrestricted 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) (109,695,122) Total primary government net position $611,854,614 $636,874,313 $350,242,576 $411,873,490 $421,279,978 $324,693,442 $369,049,885 $410, 444,484 $474,925,780 $543,594,463

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
2013 2014 2015* 2016 2017 2018 2019 2020 2021 2022
Thousands
Net of Related Debt Restricted Unrestricted
Source: City of Hayward Annual Comprehensive Financial Report 169

CITY OF HAYWARD
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Fiscal Year Ended June 30,
2013 2014 2015 2016
Expenses
Governmental Activities:

General Government $11,162,908 $11,989,512 $16,245,827 $14,192,819 Public Safety 100,470,925 102,494,680 106,541,527 118,423,530 Public Works and Transportation 13,689,585 8,851,489 12,295,579 14,414,107 Library and Community Services 7,490,405 8,073,175 5,150,554 9,047,644 Economic Development 1,285,830 1,432,514 835,342 1,762,937 Planning and Building 6,102,300 6,293,037 6,831,521 7,281,726 Maintenance Services 3,896,951 4,790,594 5,798,009 6,156,886 Community Development
Culture and Leisure
Nondepartmental
Interest on Long Term Debt 2,056,984 1,131,490 1,400,778 1,490,140 Total Governmental Activities Expenses 146,155,888 145,056,491 155,099,137 172,769,788 Business-Type Activities:

Sewer 19,127,813 17,443,979 19,967,350 23,757,316
Water 38,837,206 38,252,368 36,953,171 38,253,454
Airport 3,252,108 3,443,655 3,489,917 3,976,602
Centennial Hall Maintenance and Operation
Stormwater 2,402,138 2,419,567 2,373,574 3,042,678
Recycling
Total Business-Type Activities Expenses 63,619,265 61,559,569 62,784,012 69,030,050 Total Primary Government Expenses $209,775,153 $206,616,060 $217,883,149 $241,799,838 Program Revenues
Governmental Activities:

Charges for Services:

General Government $2,505,144 $3,348,209 $3,404,484 $3,513,507 Public Safety 3,308,573 3,332,950 3,311,997 3,585,912
Public Works and Transportation 3,780,364 4,121,654 4,966,061 5,620,367 Library and Community Services 95,682 85,256 116,787 1,312,128 Economic Development 2,749,344 1,292,172
Planning and Building 3,541,420 5,026,469 4,536,430 6,060,654 Maintenance Services 710,653 1,243,660 1,504,197 1,088,664 Community Development
Culture and Leisure
Nondepartmental
Operating Grants and Contributions 6,998,650 7,634,799 10,587,001 13,611,989 Capital Grants and Contributions 26,479,205 9,066,354 5,807,599 31,255,350 Total Government Activities Program Revenues 47,419,691 36,608,695 35,526,728 66,048,571 * Due to City of Hayward Departmental reorganization, Community Development, and Culture and Leisure Departments no longer exist.

Hayward City CouncilApril 11, 2023

Hayward City Council
April 11, 2023