ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FISCAL YEAR 2023
ATTACHMENT III
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CITY OF HAYWARD, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR FISCAL YEAR ENDED JUNE 30, 2023
Prepared by:
Accounting Division, Department of Finance
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INTRODUCTORY SECTION
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CITY OF HAYWARD, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR FISCAL YEAR ENDED JUNE 30, 2023
TABLE OF CONTENTS
Pages
INTRODUCTORY SECTION
Letter of Transmittal ........................................................................................................................................... i – xi Organization Chart .................................................................................................................................................. xii Directory of City Officials ......................................................................................................................................xiii Directory of Administrative Staff .......................................................................................................................... xiv GFOA Certificate of Achievement for Excellence in Financial Reporting ........................................................... xv
FINANCIAL SECTION
Independent Auditor’s Opinion ................................................................................................................................ 1 Management’s Discussion and Analysis .................................................................................................................. 5 Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position ...................................................................................................................... 21 Statement of Activities .......................................................................................................................... 22 Fund Financial Statements:
Governmental Funds:
Balanc e Sheet ..................................................................................................................................... 26 Reconciliation of Governmental Fund Balances to Net Position of Governmental Activities ......... 28 Statement of Revenues, Expenditures, and Changes in Fund Balances ........................................... 30 Reconciliation of the Net Change in Fund Balances – Total Governmental Funds with the Statements of Activities ......................................................................................... 32 Proprietary Funds:
Statement of Net Position .................................................................................................................. 34 Statement of Revenues, Expenses and Changes in Fund Net Position ............................................. 35 Statement of Cash Flows ................................................................................................................... 36 Fiduciary Funds:
Statement of Fiduciary Net Position .................................................................................................. 38 Statement of Changes in Fiduciary Net Position ............................................................................... 39 Notes to Basic Financial Statements ............................................................................................................ 41 Required Supplemental Information:
Schedule of Changes in the Net Pension Liability and Related Ratios (Miscell aneous Plan) ..................................................................................................................... 102 Schedule of Contributions (Miscellaneous Plan) ............................................................................ 104 Schedule of Changes in the Net Pension Liability and Related Ratios (Safety – Fire Plan) ........................................................................................................................ 106 Schedule of Contributions (Safety – Fire Plan) ............................................................................... 108 Schedule of Changes in the Net Pension Liability and Related Ratios (Safety – Police Plan) .................................................................................................................... 110 Schedule of Contributions (Safety – Police Plan) ........................................................................... 112 FINANCIAL SECTION (Continued):
Required Supplemental Information (Continued):
Schedule of Changes in the Net OPEB Liability and Related Ratios ............................................. 114 Schedule of Contributions – Other Postemployment Benefits ........................................................ 115 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General Fund and Major Special Revenue Funds:
General Fund ............................................................................................................................. 118 Federal Grants Special Revenue Fund ...................................................................................... 119 American Rescue Plan Act Special Revenue Fund ................................................................... 120 Supplemental Information:
Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Major Capital Projects Funds:
Housing Authority Capital Project Fund ................................................................................... 122 General Capital Projects Capital Project Fund .......................................................................... 123 Combining Balance Sheets – General Fund .............................................................................................. 126 Combining Schedules of Revenues, Expenditures and Changes in Fund Balance – General Fund ........................................................................................................................................... 127 Non-major Governmental Funds:
Combining Ba lance Sheets ................................................................................................................... 132 Combining Statements of Revenues, Expenditures, and Changes in Fund Balances ............................................................................................................................. 138 Combining Schedules of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual ............................................................................................. 144 Non-major Enterprise Funds
Combining Statemen ts of Net Position ................................................................................................ 156 Combining Statements of Revenues, Expenses and Changes in Fund Net Position ........................... 157 Combining Statemen ts of Cash Flows ................................................................................................. 158 Internal Service Funds:
Combining Statemen ts of Net Position ................................................................................................ 160 Combining Statements of Revenues, Expenses and Changes in Fund Net Position ........................... 162 Combining Statemen ts of Cash Flow ................................................................................................... 164 Custodial Funds:
Combining Statement of Fiduciary Net Position – Custodial Funds ................................................... 168 Combining Statement of Changes in Fiduciary Net Position – Custodial Funds ................................ 169 STATISTICAL SECTION (Unaudited)
Net Position by Component – Last Ten Fiscal Years .................................................................................. 175 Changes in Net Position – Last Ten Fiscal Years ........................................................................................ 176 Fund Balances of Governmental Funds – Last Ten Fiscal Years ................................................................ 180 Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years .............................................. 182 Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ................................. 184 Property Tax Rates - All Overlapping Governments – Last Ten Fiscal Years ............................................ 185 Principal Property Taxpayers – Current Year and Ten Years Ago .............................................................. 186 Property Tax Levies and Collections – Last Ten Fiscal Years .................................................................... 187 Ratio of Outstanding Debt by Type– Last Ten Fiscal Years ....................................................................... 188 Computation of Direct and Overlapping Debt ............................................................................................. 189 Computation of Legal Bonded Debt Margin – Last Ten Fiscal Years ........................................................ 190 Revenue Bond Coverage Wastewater Revenue Bonds – Last Ten Fiscal Years ....................................... 191 STATISTICAL SECTION (Unaudited) (Continued)
Bonded Debt Pledged Revenue Coverage, Tax Allocation Bonds- Last Ten Fiscal Years ........................ 192 Demographic and Economic Statistics – Last Ten Fiscal Years ................................................................. 193 Principal Employers – Current Year and Ten Years Ago ............................................................................ 194 Full-Time Equivalent City Government Employees by Function – Last Ten Fiscal Years ........................ 195 Operating Indicators by Function/Program – Last Five Fiscal Years .......................................................... 196 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years ....................................................... 198 This Page Left Intentionally Blank
March 14, 2024
Honorable Mayor, M embers of the City Council , and Residents of the City of Hayward, California:
It is my pleasure to submit the Annual Comprehensive Financial Report (ACFR) of the City of Hayward for the fiscal year ended June 30, 2023. 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 provi de 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, 2023, 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 un modified opinion that the City of Hayward, California’s financial statements for the year ended June 30, 2023, are fairly presented in conformity with GAAP. The Independent Auditors’ Report is presented as the first component of the financial section of this Report.
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 i
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only on the fair presentation of the financial statements, but also on the audited government’s internal controls and compliance with legal requirements, with special emphasis related to and involving the administration of Federal Awards. These reports are available in the City’s separately issued Single Audit Report (issued in March 2024).
This ACFR is presented in three sections: introductory, financial, and statistical. The introductory section includes this transmittal letter, the City’s organizational chart, and a list of principal officials. The financial section includes the basic financial statements and the combined financial statements and schedules, the independent auditor’s report on these financial statements and schedules, and management’s discussion and analysis (MD&A). The statistical section includes selected financial and demographic information, generally presented on a multiyear basis.
The independent auditor’s report is presented as the first component of the financial section of the ACFR, followed by the MD&A, which provides a narrative introduction, overview, and analysis to accompany the basic financial statements. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it.
CITY PROFILE & SERVICES
With a population currently estimated at 162,954, Hayward is the sixth largest city in the San Francisco Bay Area and the third largest city in Alameda County. Hayward is located fourteen miles south of Oakland in the San Francisco Bay Area. The City area includes sixty-one square miles lying between the eastern shore of the San Francisco Bay and the southern Oakland - Berkeley Hills. Hayward serves as a major transportation hub and a center of commercial and industrial activity, with immediate access to major interstate freeways, rail lines, and public transit routes such as Bay Area Rapid Transit (BART). The community has more than 50,000 homes and residences of all types; and considerable commercial and industrial development.
Major institutional facilities include California State University-East Bay, Chabot Community College, one major hospital, a variety of private and vocational educational institutions; and state and county offices.
City Structure
The City was incorporated in 1876. Under the City Charter adopted in 1956, the City government is organized in the Council-Manager form. The Mayor is directly elected to a four- year term of office and serves as a voting member and the presiding officer of the City Council.
The City Council includes six other members, each of whom is elected at-large to overlapping four-year terms. The Mayor and City Council serve as the legislative and policy-making body of the City government and appoint a City Manager, a City Clerk, and a City Attorney. The City Manager is the City's chief executive officer and appoints all other City staff. The City Manager is responsible for the daily administration of the City government and provides overall direction to all City departments.
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City Services
Hayward provides a full range of services to its residents including : law enforcement; fire prevention and protection; paramedic services; housing and economic development; land use development services and regulations; community planning; street construction and maintenance; landscape maintenance services; 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 in terest is reported for the East Bay Dischargers Authority (www.ebda.org/). The complete financial activities have not been included for this entity, as the City Council is not financially accountable for them. Other entities, which have been excluded, that do not meet the established criteria for inclusion in the reporting entity are the Hayward Area Recreation and Park District ( www.haywardrec.org/) and Hayward Unified School District (www.husd.k12.ca.us/).
ECONOMIC CONDITION AND OUTLOOK
The information presented in the financial statements is best understood when it is considered with in the broader perspective of the specific environment in the City of Hayward.
Local Economy
Hayward is a diverse city with a diverse economy – comprised of a well -established and growing business community that represents a balance of retail, industrial, and advanced technologies. In fiscal year 2023, the City of Hayward economy continued experiencing stable and healthy recovery from the impacts of the pandemic.
The Employment Development Department data reflects that the unemployment rate as of June 2023 increased from 3.3% to 4.2% in Alameda County. While the unemployment rate has increased by 0.9%, it is still well below the pandemic high rate of 8.9% in 2020.
The City of Hayward has seen a year over year increase of approximately 7% in its assessed valuation, despite the median residential home sales price dropping from $850,000 to iii
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$830,000 between 2022 and 2023 , a decrease of 1.8% . The total assessed valuation for Hayward has grown from $15.2 billion in FY 2012 to $28.4 billion in FY 2023, as real estate values have been restored to pre-Great Recession levels and includes new residential and commercial developments. The City’s property tax revenues increased by 7% in FY 2023 as compared to FY 2022.
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 , ($22.9 million in FY 2023) dramatically increase d total Sales Tax revenues. However, these revenues are targeted for specific activities as outlined in the ballot measure language in 2014. As a result of the commitment to utilize these revenues for specified activities, the City considers these revenues separate from the City’s general Sales Tax revenue.
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 2023 was $25.9 million.
The City’s Utility Use Tax revenue increased $8.6 million, or 50%, in fiscal year 202 3 compared to fiscal year 2022 due to increase in energy demands and provisions. While this revenue is expected to stabilize in 2024, the City will continue to monitor this revenue source for any significant changes . Real Transfer Tax however, decreased significantly from the prior year from $21.2 million to just over 12.4 million, an approximate decrease of 42% due to the cooling of the housing market as a result of the high interest rate environment.
While the City remains optimistic, management remains focused on the long-term fiscal outlook for the future as the City continues to experience growth in expenditures related to employee costs 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.
Factors Affecting the City’s Financial Condition
In addition to the unforeseen impacts of the COVID -19 pandemic, the City faces similar challenges to other local jurisdictions in California. In addition to rising operating and capital costs, the City has lost over $100 million in local revenues to the State since 1994. The State’s ability to take local government revenues, the loss of the City’s redevelopment agency being a prime example, has significantly hampered the future plans of local governments for years to come. In addition, the State’s continued policy to push services and unfunded mandates down to the local level without reallocating revenue to support the service delivery is a continued challenge.
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Long-term Perspective
The City has been prudent with its financial resources and has contained costs by implementing structural budget saving strategies and cost sharing agreements . While the City has consistently worked to balance its budget, Hayward must continue with this effort to address and resolve an ongoing structural deficit within the General Fund, which is largely driven by rising employee costs and dedication to meet the ever-growing emerging community needs.
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 contin ues 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 addressed to ensure long-term economic stability. The other enormous challenge is continuing to provide a n ever–increasingly high level of service to the community with limited resources and rising employee costs – while ensuring long-term economic stability.
MAJOR INITIATIVES & ACCOMPLISHMENTS
In Spring 202 3, 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.
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 FY 2023 totaled about $118 million, with approximately $ 634 million tentatively programmed for the entire ten -year period from FY 2023 through FY 2032. 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.
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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 utilit ies, 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 subs equently rejected, delaying the project timeline. Staff also applied for grant opportunities to help close the funding gap. The call for bids was reinitiated in February 2023 and construction commenced in 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 substantia lly 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 bu ildings 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 d esigned to achieve Net Zero Energy. Construction started in August 2020 and is anticipated to be entirely complete in Spring 2024.
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 FY 2022. The Phase I customer sites include four parks, six schools, one college, nineteen private businesses, and City street landscaping.
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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 FY 2019 to provide a comprehensive hangar condition assessment that was completed in mid -FY 2020. A 10 -year maintenance schedule was subsequently developed, and repair and replacement work began in FY 2020, including the installation of LED lighting and extensive roof improvements. Work has continued thr ough FY 2023, during which improvements were completed on Hangar Buildings “F,” “G,” “H,” and “I.”
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, ACT C, 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. The project went to bid in February 2023 and the construction completion is anticipated in early FY 2024.
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 area s 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.
Improvements continued through FY 2023 and are anticipated to be complete in FY24. The SR4S Program receives annual support from dedicated Measure BB (Paratransit) funding.
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. vii
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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 hybrid patrol cars were ordered to replace vehicles that have reached the end of their useful life, and an additional nine were ordered in FY 2023. Once received and placed into service, the fleet vehicle matrix will consist of 18% 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 Quali ty Act (CEQA) report was updated to include the park expansion area, and the design was finalized. The construction bids received in June 2023 to implement this project were significantly higher than expected and subsequently rejected, delaying the project timeline.
Staff will work with consultants to scale down the project and plan to reinitiate the call for bids in early 2024.
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 n ew 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 FY 2023.
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 8 viii
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received significant improvements in FY 2023 including an upgraded parking configuration to City standards and ADA-compliant parking spaces requirements. The pavement in the lot was also rehabilitated, additional landscaping and LED lighting were installed, and parking stall conditions were upgraded.
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 both a five-year and long-range approach has helped the City identify and plan accordingly to manage potential future structural deficits.
Long-term Debt Ratings: The City maintains excellent ratings on all of its debt issuances.
In recent fiscal years, the City has received very high ratings from the various rating agencies, including a AA rating from both Fitch and Standard & Poor’s of the 2015 Certificates of Participation (COP) and a AA+ rating by Standard & Poor’s for the 2013 Water Bonds. The City also has an implied general obligation rating of AA+ with a stable outlook from both rating agencies. Standard & Poor’s Ratings Services 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.
Most recently, in August of 2023 , Standard & Poor’s affirmed an AA rating for the 2023 refunding of certificates of participation and reaffirmed the AA long term rating on the 2015 COPs. 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.
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.
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Budget Control: Budgetary controls ensure compliance with legal provisions embodied in the a nnual budget approved by the City Council. Per the City Charter , the City Council is required to adopt an annual budget resolution prior to July 1 of each fiscal year. Activities of all funds, except agency funds, are included in the Annual Budget. The City also adopts a ten- year capital improvement program, appropriat ing the current year’s expenditures in the annual budget. The level of control (that is, the level at which expenditures cannot legally exceed the 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.
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 2023, the City had total debt outstanding of $ 99.89 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 balanci ng 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 2023, the policy states that General Fund reserves for economic uncertainty and x
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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 2023, the unassigned fund balance of the General Fund was $39.4 million, while the total fund balance was $58.9 million (includes non-cash outstanding receivables of over $2.9 million and $16.6 million in Measure C District Tax cash balance). The unassigned fund balance represents 16.9% of total General Fund expenditures of $233.5 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, 2022. 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.
A Certificate of Achievement for Excellence in Financial Reporting from the GFOA is valid for a period of one year. We believe that our current annual comprehensive financial report continues to meet the Certificate of Achievement requirements and staff will submit it to the GFOA to determine eligibility for another certificate.
Acknowledgements
The preparation of this report would not have been possible without the dedicated efforts of the entire Finance Department staff, as well as the audit firm of Maze & Associates. All those who contributed to the preparation of this report deserve commendation for their dedication and hard work . I would like to express special appreciation to Michelle Polintan, Acting Accounting Manager; 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
xi
CITYWIDE ORGANIZATION
xii
The Mayor and six Council members represent Hayward residents, adopt public policy, and approve resource allocations consistent with community priorities. The City Council generally meets the first, third, and fourth Tuesday of each month at 7:00 p.m. in Council Chambers, 2nd Floor of 777 B Street, Hayward, CA 94541. The public is invited and encouraged to attend Council meetings.
ELECTED OFFICIALS
xiii
Appointed by City Council
City Manager Kelly McAdoo
City Attorney Michael Lawson
City Clerk Miriam Lens
Department Directors
Assistant City Manager Regina Youngblood
Assistant City Manager Dustin Claussen
Development Services Sara Buizer
Finance Nicole Gonzales
Fire Chief Garrett Contreras
Human Resources Brittney Frye
Information Technology Adam Kostrzak
Library Jayanti Addleman
Maintenance Services Todd Rullman
Police Chief Toney Chaplin
Public Works & Utilities Alex Ameri
ADMINISTRATIVE STAFF
xiv
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, 2022
Executive Director/CEO
xv
This
Page Left Intentionally Blank
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, 2023, 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, 2023, 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%,
2.41% and 9.06%, 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 opinions. Reasonable assura
nce is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with genera lly 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 there is a substantial likelihood that , individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with 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 misstate ment of the financial statements, whether due to fraud or error, and design and perfor
m 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 Ci ty’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. 96, Subscription-Based Information Technology Arrangements, which became effective during the year ended June 30, 2023 and required the restatement of certain subscription-related balances as discussed in Note 1, Note 6 and Note 8 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 stat ements. 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 14, 2024, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of ou r testing of internal con trol over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over finan cial reporting or o n compliance. That rep ort is an integral p art of an audit performed in accordance with Government Auditing S tandards in considering th e City’s internal control over financial reporting and compliance.
Pleasant Hill, California
March 14, 2024
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, 2023. 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 assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $584.9 million (total net position). Excluding the $510.1 million net pension liability, $406.9 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 $41.3 million over fiscal year 2022.
Governmental activities, including the General Fund, increased by $29.5 million and Business-type activities increased by $11.8 million.
As of June 30, 2023, the City’s governmental funds reported combined fund balances of $208.7 million, an increase of $18.6 million from the prior year. At the end of fiscal year 2023, total fund balance for the General Fund, including Measure C, is $58.9 million, an increase of $1.03 million over fiscal year 2022. Of the total, the General Fund ending fund balance is $42.3 million, and Measure C ending fund balance is $16.6. The total fund balance is comprised of $2.8 million in non-spendable (illiquid reserves), $16.6 million in assigned (liquid reserves designated for specific purposes), and $39.5 million in spendable fund balance designated for contingencies, economic uncertainty, emergencies, and liquidity by City Council. The $39.5 million in unassigned fund balance represents 16.9% of total General Fund expenditures including Transfers Out.
The $2.8 million in non-spendable reserves offsets a long-term loan receivable (General Fund loan to the Redevelopment Successor Agency).
Fiscal year 2023 ended with a net increase to the General Fund, General Purpose Fund Reserve of $4.4 million (net of Measure C district sales tax revenues). As of June 30, 2023, the City’s enterprise funds (Sewer, Water, Stormwater and Airport) reported a combined ending net position of $391.9 million; an increase of $11.8 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 21-22) 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 26-32) Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the City’s near-term financial requirements.
Because the focus of governmental funds are more narrow than that of the government-wide financial statements, it is useful to compare the information presented for government funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the City’s near- term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and change s in fund balances provide a reconciliation to facilitate this comparison between governmental fund and governmental activities. 6 The City maintains twenty-three individual government funds for financial reporting. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and change s in fund balance f or 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 g overnmental 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 Fun d, the Route 238 Corridor Improvement C apital Project Fund and General Capital Projects Fund are located in the financial statements starting on page 8 of this report. All other major and non-major funds with legally adopted annual budgets are located in the supplementary information section.
Pro
prietary Funds. (pages 34-36) The City maintains two different types of proprietary funds, the Enterprise Funds and the Internal Service Funds. The Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its sewer, water, storm water runoff, and airport operations. The Internal Service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for its Workers Compensation, General Liab ility, Fleet Man agement, Facilities, Information Technology, and Employee Benefits Funds. Because these services predominately benefit governmental rather than busin ess-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 prov ide 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 inter nal service funds is provided in the form of combining statements in the Internal Service Funds section of this Report.
Fiduciary Funds. (pages 38-39) Fiduciary funds are used to account for resources held for the benefit of parties outsid e the C ity. Fiduciary f unds ar e not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs.
Notes to the Basic Financial Statements. (pages 41-100) 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 an d 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 $584.9 million at the close of the current fiscal year, an increase from the prior year of $41.3 million. The change in the combined net position includes an increase of $29.5 million in Governmental Activities, and an increase of $11.8 million in Business-type Activities.
Table 1 – City of Hayward Statement of Net Position
(in millions)
The largest portion of the fiscal year 2023 City’s net position, $556.6 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), sinc e the capital assets themselves cannot be used to liquidate these liabilities.
In fiscal year 2023, the City’s net position included $141.4 million in deferred outflows of resources. Of this amount, $124.0 million is related to pensions. This includes $47.4 million related to pension contributions after the measurement date, as well as $76.6 million attributable to changes in calculation assumptions and differences between expected and actual trust fund performance. $17.0 million of the deferred outflows are related to other post-employment benefits (OPEB). $8.5 million of these OPEB related deferred outflows is related to employer contributions after the measurement date and $8.5 million is related to changes in assumptions and trust performance. Finally, $0.4 million in outflows is related to 2016 refunding of certificates of participation, resulting in a deferred loss.
8 The City’s long-term debt of $99.9 million includes $9.6 million due within one year, as well as an additional $ 90.3 million due in future years.
The largest share of the City’s other liabilities is comprised of $510.1 million in net pension liabilities and $70.5 million in OPEB liabilities, as detailed in Note 13 and Note 15, respectively.
Other major liabilities include $34.7 million in accrued liabilities, $15.4 in unearned revenue, $21.2 million in accounts payable, $11.6 million in total compensated absences, and $10.3 million in refundable deposits.
Deferred inflows of resources totaled $55.4 million in fiscal year 2023, $9.4 million related to pensions and $20.4 million related to OPEB. Pension-related deferred inflows are comprised of $9.4 million in differences between actual and expected experience. OPEB-related deferred inflows consist of $18.4 million in changes to calculation assumptions, and $2 million difference between expected and actual experience.
A portion of the City's net position, $131.4 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 $510.1 million net pension liability, $406.9 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 $29.5 million. 9 Table 2 – City of Hayward Statement of Activities and Change in Net Position (in millions) 2023 2022 2023 2022 2023 2022
Program revenues
Charges for services $28.2 $24.0 $101.0 $100.6 $129.2 $124.5 Operating contributions and grants 35.1 34.7 - - 35.1
34.7 Capital contributions and grants 12.8 3.6 - - 12.8
3.6 76.1 62.2 101.0 100.6 177.2 162.8 General revenues
Property tax 70.3 65.0 - -
70.3 65.0
Sales tax 66.9 64.7 - - 66.9
64.7 Utility user tax 25.9 17.3 - - 25.9
17.3 Real property transfer tax 12.4 21.2 - - 12.4
21.2 Franchise fees 11.9 10.5 - - 11.9
10.5 Other taxes 17.5 16.0 - - 17.5
16.0 Investment earnings 3.6 (3.9) 3.2 (4.9) 6.8 (8.8)
Gain on sale of land for resale - - - (1.0) - (1.0)
Gain on sale of capital assets 0.0 0.0 -
- 0.0
0.0 Miscellaneous 5.1 9.4 -
- 5.1
9.4 General revenues subtotal 213.7 200.3 3.2 (5.8) 216.9 194.4
To
tal Revenues 289.8 262.5 104.2 94.7 394.0 357.2 Expenses by activity
General Government 23.1 19.3 - - 23.1
19.3 Public safety 166.2 120.1 - - 166.2 120.1
Public works and transportation 25.0 25.6 - - 25.0
25.6 Library and neighborhood services 14.6 12.4 - - 14.6
12.4 Economic development 8.8 6.7 -
- 8.8
6.7 Planning and building 10.5 10.5 - - 10.5
10.5 Maintenance services 14.1 12.5 - - 14.1
12.5 Interest on long term debt 2.1 2.3 - - 2.1
2.3 Sewer - - 28.3 23.1 28.3 23.1 Water - - 52.5 48.8 52.5 48.8 Airport - - 4.6 4.3 4.6 4.3 Stormwater - - 2.7 2.7 2.7 2.7 Recycling - - (0.1) 0.2 (0.1) 0.2 Total expenses 264.4 209.4 88.0 79.1 352.4 288.5 Increase (decrease) before transfers 25.4 53.1 16.2 15.6 41.6 68.7 Transfers 4.4 4.1 (
4.4) (4.1) -
-
Change in Net Position 29.8 57.2 11.8 11.5 41.6 68.7 Beginning Net Position, as restated* 163.5 106.4 380.1 368.6 543.6 474.9 Ending Net Position (June 30) $193.3 $163.5 $391.9 $380.1 $585.1 $543.5 Governmental Activities Business-t ype Activities Total 10 Governmental Activities Revenues
Governmental revenues are categorized as Prog
ram 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 include general taxes (property, sales, etc.). Total revenues increased by $27.3 million:
Charges for Services increased by $4.2 million from the prior year in part due to increased permit and planning review revenue in development services and increased code enforcement/inspection fees.
Operating Contributions and Grants increased by $0.4 compared to prior year due to increase in the number of award grant money from outside agencies. Capital contributions and grants increased by $9.2 million over the prior year. Property Taxes increased by $5.3 million over the prior year, due to continued growth in residential property values and the number of new construction builds. Sales Taxes increased by $2.3 million over the prior year, due to continued strength of the local economy.
Real Property Transfer Tax decreased by $8.8 million over 2022 due to the decrease in real estate transaction and cooling of the comme rcial and housing market due to the high interest environment.
Miscellaneous Revenue decreased by $4.3 million compared to 2022.
Chart 1 – Revenues by Source – Governmental Activities for Fiscal Year 2023 11 Governmental Activities Expenses
The governmental expenses (excluding transfers) increased by $55.0 million to a total of $264.4 million. Operational cost in general government expenditures increased by of $3.8 million, public safety costs increased by $46.1 million, public wo rks costs decreased by $0.6 million, and a net increase of $5.7 million across other government al activities expenditures. A significant portion of the increase in expenditures is related to personnel expenses including rising salaries and pension benefit costs, as well as an increase in overtime expenses and mutual aid response. The increase in public safety costs is associated with the current and ongoing construction of the new Fire Station 6 and Regional Fire Training Center. Chart 2, Expenses by Function summarizes governmental expenses by category.
Chart 2 – Expenses by Function – Governmental Activities for Fiscal Year 2023 Business-Type Activities. The net position of business-type activities was $391.9 million at June 30, 2023, an increase of $11.8 million from last fiscal year. Business-type activities revenues totaled $104.2 million, while program expenses totaled $88.0 million (excluding transfers).
As the Revenue by Source chart indicates, charges for utility services account for 97% of the revenue for the City’s enterprise funds. Most of the revenues are generated by the Water and Sewer enterprises.
12 Chart 3 – Revenues by Source – Business-type Activities Chart 4 – Expenses and Program Revenues – Business-type Activities The Expenses and Program Revenues chart above illustrates both expenditures and revenues for operations and capital improvements for the City’s business-type activities.
Water, Sewer, and Stormwater Funds increased its net position. Sewer saw an increase of $7.0 million, water increased by $5.3 million, and Stormwater decreased by $0.1 million and Recycling increased by $0.3 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 $0.6 million.
13 Financial Analysis of the Government’s Funds
Governmental Funds
. The purpose of the City’s governmental fund statements is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s funding requirements. In particular, unassigned fund balance may serve as a useful measure of a gover nment’s net resources available for spending at the end of the year. It should be noted that unassigned amounts are designated by City Council for specific purposes.
At the end of fiscal year 2023, the City’s governmental funds reported combined ending fund balances of $208.7 million, an increase of $18.6 million over prior year. Of this amount, 81.1% ($169.3 million) represents Non-Spendable, Rest ricted, and Assigned fund balances; and $39.4 million or 18.9% is Unassigned and is available for spending at the City’s discretion pursuant internal and statutory restrictions, this amount represents the General Fund Reserve balance.
General Fund. The General Fund, by definition, is a major governmental fund and represents all funds not required to be accounted for or presented as other funds. The General Fund accounted for 75.6% of the total governmental revenues and 72.9% of the total governmental expenditures.
Several primary City services are accounted fo r in the General Fund, including public safety (police and fire services), general government, development services, maintenance services, and library and community services.
At the end of fiscal year 2023, the General Fund’s Unassigned fund balance was $39.4 million (exclusive of Measure C), an increase of $5.2 million over the prior year. The total fund balance, inclusive of Non-spendable and Assigned balances, was $42.3 million, an increase of $4.4 million from the prior fiscal year. This change is related to federal grant funding, along with significant increases to Property, Sales, and Utility User Tax revenues.
As a measure of the General Fund’s liquidity, it may be useful to compare the unassigned fund balance to total fund expenditures. The unassigned fund balance represents 16.9% of total General Fund expenditures of $233.5 million (including Transfers Out).
General Fund Budgetary Highlights. Fiscal year 2023 ended with a Net Change in Fund Balance of $16.9 million (GAAP Basis).
Table 3 – Fiscal Year 2023 General Fund Budget Summary
(in thousands)
AB C
(reflected in thousands)
2023
Adopted
2023
Adjusted
2023
Actual
Variance
(C-B)
Variance
%
Revenues 208,173 210,686 218,646 7,960 3.3%
Expenditures 185,409 198,613 195,850 (2,763) -1.4%
Transfers In/(Out) (25,976) (27,905) (21,757) 6,147 -22.0% Net Change in Fund Balance
(Budget Basis)
(3,211) (15,832) 1,039 16,871
14 The net change in fund balance for fiscal year 2023 based on actual performance (column C) is positive $16.9 million. This fund balance summary on page 32 reflects the Net Change in Fund B
alance 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 $16.9 over prior year.
Other Major Governmental Funds. In addition to the General Fund, there are four other governmental funds considered to be major due to significant balances or activities in the current year and warrant a separate discussion in the management discussion and analysis: Federal Grants, Housing Authority Capital Projects Fund and General Capital Projects Fund.
Federal Grants Fund accounts for various federal grants received by the City, with each grant segregated within the fund to account for specific grant allocations and expenditures for specific purpose, activity or program.
The Housing Authority Fund Capital Projects Fund maintains loans for affordable housing projects.
The General Capital Projects Fund Accounts for General Fund and special revenue fund acquisition and construction of general-purpose public facilities, street resurfacing and improvements.
Proprietary Funds. The City’s proprietary-enterprise funds provide the same type of information found in the government-wide financial statements, but in more detail. At the end of fiscal year 2023, the unrestricted net position of the Sewer and Water Funds amounted to $113.9 and $118.6 million, respectively. Sewer net position increased by $6.9 million and Water net position increased to $5.2 million.
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 2023 the fund ended with a net position of $12.6 million, an increase of $2.6 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, 2023, the City’s investments in capital assets for its governmental and business-type activities are $648.6 million (net of accumulated depreciation) as presented below in Table 4. The investment in capital assets includes land, buildings, land improvements, machinery and equipment, vehicles, and street infra structure such as roads, bridges, streetlights, traffic signals, airport hangers, sewer, and water pipelines. The City’s investment in capital assets for the current fiscal year increased by 1.1%, with several projects moving from being classified as Construction in Progress to classified as completed Improvements and Buildings. 15 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.
Debt Administration. At the end of fiscal year 2023, the City had total bonded debt outstanding of $92.0 million as presented in Table 5. This re presents a decrease of $18.5 million versus the prior year. Of the total outstanding bond debt, $55.8 million represents certificates of participation debt for Civic Center Project (City Hall) and 21
st Century Library; $0.4 million represents capital
leases for a solar power generator, fleet ve hicles, computer, and telephone equipment; $30.8 million represents State Water Board financing for a water pollution control facility; $2.7 million private placement lease; $2.4 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 financ ial 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)
16 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, 2023, a total of $4.2 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 overvie
w of the City’s finances for all those with an
interest in the government’s finances. Additional financial information is available on our website at: www.hayward-ca.gov . Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of Hayward Finance Department, 777 B Street, Hayward, California 94541-5007. 17 This Page Left Intentionally Blank
CITY OF HAYWARD, CALIFORNIA
STATEMENT OF NET POSITION AND STATEMENT OF ACTIVITIES
The Statement of Net Position and the Statement of Activities summarize the en tire City’s financial activities and financial position. They are prepared on the same basis as is used by most businesses, which means they include all the City’s assets and deferred outflows and all its liabilities and deferred inflows, as well as all its revenues and expenses. This is known as the full accrual basis—the effect of all the City’s transactions is taken into account, regardless of whether or when ca sh changes hands, but all material internal transactions between City funds have been eliminated.
The Statement of Net Position reports the difference between the City’s total assets and deferred outflows of resources and the City’s total liabilities and deferred inflows of resources, including all the City’s capital assets and all its long-term debt. The Statement of Net Position focuses the reader on the composition of the City’s Net Position, by subtracting total liabilities and deferred inflow of resources from total assets and deferred outflow of resources.
The Statement of Net Position summarizes the financ ial position of the entire City’s Governmental Activities in a single column, and the financial position of the entire City’s Business-Type Activities in a single column; these columns are followed by a total column that presents the financial position of the entire City.
The City’s Governmental Activities include the activ ities of its General Fund, along with all its Special Revenue, Capital Projects, and Debt Service Funds. Since the City’s Internal Service Funds service these Funds, their activities are consolidated with Gove rnmental Activities, after eliminating inter-fund transactions and balances. The City’s Business-Type Activities include all its Enterprise Fund activities.
The Statement of Activities reports increases and decreases in the City’s Net Position. It is also prepared using the full accrual basis of accounting, which me ans it includes all the City’s revenues and all its expenses, regardless of when cash changes hands. This differs from the “modified accrual” basis used in the Fund financial statements, which refl ect only current assets, current liabilities, available revenues, and measurable expenditures.
The format of the Statement of Activities presents the City’s expenses first, listed by program, and follows these with the expenses of its business-type activit ies. Program revenues—that is, revenues which are generated directly by these programs—are then deduct ed from program expenses to arrive at the net expense of each governmental and business-type program. The City’s general revenues are then listed in the Governmental Activities or Business-type Activities column, as appropriate, and the Change in Net Position is computed and reconciled with the Statement of Net Position.
Both these Statements include the financial activities of the City, the Hayward Public Financing Authority, the Hayward Business Improvement District, and the Hayward Housin g Authority, which are legally separate but are component units of the City because they are controlled by the City, which is financially accountable for activities.
These financial statements along with the fund financial statements and footnotes are called Basic Financial Statements.
19 This Page Left Intentionally Blank
CITY OF HAYWARD
STATEMENT OF NET POSITION
JUNE 30, 2023
Governmental Business-Type
Activities Activities Total
ASSETS:
Cash, cash equivalents, and investments (Note 2) $227,738,489 $254,275,963 $482,014,452 Cash, cash equivalents, and investments with fiscal agents (Note 2) 7,938,074 1 7,938,075 Accounts receivable, net 3,209,509 17,895,803 21,105,312 Due from other governments 21,054,206 26,287 21,080,493 Interest receivable 91,766 143,258 235,024
Internal balances (Note 5) (2,898,197) 2,898,197
Loans receivable (Note 3) 39,133,041 39,133,041
Leases receivable (Note 4) 26,176,024 26,176,024
Long-term
loans to the Private Purpose Trust Fund (Note 20) 6,739,979 6,739,979 Land held for resale (Note 1) 6,838,652 6,838,652
Deposits, parts, supplies and other 217,942 4,246,476 4,464,418 Investment in East Bay Dischargers Authority (Note 17) 9,445,110 9,445,110 Capital assets (Note 6):
Land 19,246,485 4,757,492 24,003,977
Construction in progress 81,025,498 30,810,162 111,835,660 Depreciable capital assets, net 367,279,788 145,449,262 512,729,050 Total assets 777,615,232 496,124,035 1,273,739,267
DEFERRED OUTFLOWS OF RESOURCES
Related to pensions (Note 13) 117,460,716 6,517,900 123,978,616 Related to OPEB (Note 15) 14,507,685 2,498,968 17,006,653 Deferred loss on refunding (Note 7) 374,887 374,887
Total deferred outflows of resources 132,343,288 9,016,868 141,360,156 LIABILITIES:
Accounts payable 14,978,117 6,191,877 21,169,994
Accrued interest 373,509 320,987 694,496
Accrued liabilities 33,792,779 868,876 34,661,655
Unearned revenue 14,676,282 723,591 15,399,873
Refundable deposits 6,103,857 4,156,883 10,260,740
Accrued reclamation costs, due within one year (Note 11) 125,000 125,000 Compensated absences (Note 1):
Due within one year 8,150,854 1,205,592 9,356,446
Due in more than one year 1,888,089 370,035 2,258,124
Long-term debt (Note 7):
Due within one year 6,088,279 3,515,005 9,603,284
Due in more than one year 60,780,892 29,505,232 90,286,124 Subscription liabilities (Note 8):
Due within one year 170,025 170,025
Due in more than one year 198,909 198,909
Net pension liabilities, due in more than one year (Note 13) 482,805,327 27,288,400 510,093,727 Net OPEB liability, due in more than one year (Note 15) 60,161,412 10,362,886 70,524,298 Total liabilities 690,168,331 84,634,364 774,802,695
DEFERRED INFLOWS OF RESOURCES:
Related to leases (Note 4) 25,594,246 25,594,246
Related to pensions (Note 13) 9,361,619 67,339 9,428,958 Related to OPEB (Note 15) 17,366,087 2,991,332 20,357,419 Total deferred inflows of resources 26,727,706 28,652,917 55,380,623 NET POSITION (Note 10):
Net investments in capital assets 408,626,627 147,996,679 556,623,306 Restricted for:
Public safety 536,388 536,388
Debt service 7,259,953 1 7,259,954
Public works and transportation 41,919,081 41,919,081
Planning and building 39,864,893 39,864,893
Economic development 41,838,711 41,838,711
Total restricted net position 131,419,026 1 131,419,027 Unrestricted (346,983,170) 243,856,942 (103,126,228)
Total net position $193,062,483 $391,853,622 $584,916,105 See accompanying notes to basic financial statements
21 Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions GOVERNMENTAL ACTIVITIES:
General government $23,138,347 $2,239,179 $16,632,901
Public safety 166,217,907 3,610,524 4,198,822
Public works and transportation 24,981,972 5,257,260 14,218,396 $12,797,724 Library and community services 14,645,388 1,245,785 91,750 Economic development 8,801,341 6,786,370
Planning and building 10,475,502 7,262,132
Maintenance services 14,112,028 1,809,879
Interest on long-term debt 2,057,051
Total Governmental Activities 264,429,536 28,211,129 35,141,869 12,797,724 BUSINESS-TYPE ACTIVITIES:
Sewer 28,307,273 35,253,101
Water 52,457,801 58,569,056
Airport 4,637,977 3,906,588
Stormwater 2,600,832 2,855,609
Recycling (687) 449,850
Total Business-type Activities 88,003,196 101,034,204
Total $352,432,732 $129,245,333 $35,141,869 $12,797,724 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 earnings
(Loss) on disposal 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, 2023
22 Net (Expense) Revenue and
Changes in Net Position
Governmental Business-type
Activities Activities Total
($4,266,267) ($4,266,267)
(158,408,561) (158,408,561)
7,291,408 7,291,408
(13,307,853) (13,307,853)
(2,014,971) (2,014,971)
(3,213,370) (3,213,370)
(12,302,149) (12,302,149)
(2,057,051) (2,057,051)
(188,278,814) (188,278,814)
$6,945,828 6,945,828
6,111,255 6,111,255
(731,389) (731,389)
254,777 254,777
450,537 450,537
13,031,008 13,031,008
(188,278,814) 13,031,008 (175,247,806)
70,287,589 70,287,589
66,932,441 66,932,441
25,944,798 25,944,798
12,356,957 12,356,957
11,906,945 11,906,945
4,098,698 4,098,698
2,205,810 2,205,810
11,064,218 11,064,218
168,068 168,068
3,613,671 3,171,037 6,784,708
(277,565) (277,565)
5,096,781 5,096,781
4,400,256 (4,400,256)
217,798,667 (1,229,219) 216,569,448
29,519,853 11,801,789 41,321,642
163,542,630 380,051,833 543,594,463
$193,062,483 $391,853,622 $584,916,105
23 This Page Left Intentionally Blank
CITY OF HAYWARD, CALIFORNIA
FUND FINANCIAL STATEMENTS
The Fund financial statements include only individual major funds are presented, while non-major funds are combined in a single column. Major funds are defined generally as having significant activities or balances in the current year.
MAJOR GOVERNMENTAL FUNDS
The funds described below were determined to be major funds by the City in fiscal year 2023. 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. 25 CITY OF HAYWARD
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2023
America Rescue
General* Federal Grants Plan Act
ASSETS:
Cash, cash equivalents, and investments (Note 2) $62,420,428 $2,642,854 $14,502,806 Cash, cash equivalents, and investments with fiscal agents (Note 2) Accounts receivable, net 1,586,857
Due from other governments 13,732,910 16,265
Interest receivable 17,392
Due from other funds (Note 5) 1,838,041
Loans receivable (Note 4) 13,125,975
Long-term loans to the Private Purpose Trust Fund (Note 20) 2,836,442 Land held for resale (Note 1)
Deposits, parts, supplies and other 9,006
Total Assets $82,423,684 $15,802,486 $14,502,806
LIABILITIES:
Accounts payable $6,131,691 $16,785 $840,763
Accrued liabilities 8,786,285 332
Due to other funds (Note 5)
Long-term interfund payables (Note 5) 2,898,197
Unearned revenue 13,661,711
Refundable deposits 5,677,200
Total Liabilities 23,493,373 16,785 14,502,806
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenue
Total Deferred Inflows of Resources
FUND BALANCES (Note 10):
Nonspendable 2,845,448
Restricted:
Public safety
Public works and transportation
Planning and building 15,785,701
Economic development
Debt service
Assigned 16,632,531
Unassigned 39,452,332
Total Fund Balances 58,930,311 15,785,701
Total Liabilities, Deferred Inflows of Resources
and Fund Balances $82,423,684 $15,802,486 $14,502,806
See accompanying notes to basic financial statements
* Includes balances related to the City's Measure C District Sales Tax.
Special Revenue Funds
26 Other Total
Housing General
Governmental Governmental
Authority Capital Projects Funds Funds
$5,094,718 $8,443,494 $76,992,629 $170,096,929
7,938,074 7,938,074
586,393 570,962 2,744,212
4,279,451 2,943,109 20,971,735
74,374 91,766
1,838,041
12,929,936 13,077,130 39,133,041
3,876,516 6,712,958
707,539 6,131,113 6,838,652
9,006
$22,608,709 $21,247,412 $99,789,317 $256,374,414
$80,208 $2,354,913 $3,761,741 $13,186,101
3,887 4,694 92,799 8,887,997
1,838,041 1,838,041
2,898,197
399,908 562,243 14,623,862
79,286 338,134 6,094,620
84,095 2,838,801 6,592,958 47,528,818
87,648 87,648
87,648 87,648
2,845,448
536,388 536,388
41,919,081 41,919,081
24,079,192 39,864,893
22,524,614 19,314,097 41,838,711
7,259,953 7,259,953
18,408,611 35,041,142
39,452,332
22,524,614 18,408,611 93,108,711 208,757,948
$22,608,709 $21,247,412 $99,789,317 $256,374,414
Capital Projects Funds
27 Total Fund Balances reported on the governmental funds balance sheet $208,757,948 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 80,513,598
Depreciable capital assets, net 345,912,221
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 following line items in the Statement of Net Position.
Cash and investments 57,641,560
Accounts receivable 465,297
Due from other governments 82,471
Long-term loans to the Private Purpose Trust Fund 27,021 Deposits, parts, supplies and other 208,936
Land 372,748
Construction in progress 511,900
Depreciable capital assets, net 21,367,567
Accounts payable (1,792,016)
Accrued interest (7,223)
Accrued liabilities (24,904,782)
Unearned revenue (52,420)
Refundable deposits (9,237)
Compensated absences (720,926)
Net pension liabilities and pension-related deferred outflows and inflows of resources (8,005,659) Net OPEB liabilities and OPEB-related deferred outflows and inflows of resources (4,352,585) Long-term debt (378,788)
Subscription liabilities (368,934)
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 87,648
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 (66,490,383)
Deferred outflow for deferred loss on refunding 374,887 Interest payable (366,286)
Compensated absences (9,318,017)
Net pension liabilities and pension-related deferred outflows and inflows of resources (366,700,571) Net OPEB liabilities and OPEB-related deferred outflows and inflows of resources (58,667,229) NET POSITION OF GOVERNMENTAL ACTIVITIES $193,062,483
See accompanying notes to basic financial statements
GOVERNMENTAL FUNDS
CITY OF HAYWARD
JUNE 30, 2023
ACCRUAL OF NON-CURRENT REVENUES AND EXPENSES
LONG-TERM ASSETS AND LIABILITIES
ALLOCATION OF INTERNAL SERVICE FUND NET POSITION
CAPITAL ASSETS - GOVERNMENTAL ACTIVITIES
FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES
BALANCE SHEET - RECONCILIATION OF GOVERNMENTAL
28 This Page Left Intentionally Blank
CITY OF HAYWARD
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2023
America Rescue
General* Federal Grants Plan Act
REVENUES:
Property taxes $68,458,487
Sales taxes 66,932,441
Utility users tax 25,944,798
Other taxes 34,588,602
Licenses and permits 7,959,299
Fines and forfeitures 2,504,635
Special assessments
Investment income 616,954 $28,611 $240,792
Rental income 75
Intergovernmental 6,275,056 731,760 12,509,208
Fees and charges for services 4,506,412
Other revenue 859,439 522,219
Total Revenues 218,646,198 1,282,590 12,750,000
EXPENDITURES:
Current:
General government 17,482,117 4,268,073
Public safety 144,085,111 173,803 386
Public works and transportation 3,403,009 771,446
Library and community services 9,889,336 168,201
Economic development 597,428
Planning and building 9,442,396
Maintenance services 11,548,283 460,095
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total Expenditures 195,850,252 939,432 5,500,000
EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER)
EXPENDITURES 22,795,946 343,158 7,250,000
OTHER FINANCING SOURCES (USES):
Transfers in (Note 5) 15,850,418
Transfers (out) (Note 5) (37,607,485) (6,707) (7,250,000) Total Other Financing Sources (Uses) (21,757,067) (6,707) (7,250,000) CHANGE IN FUND BALANCES 1,038,879 336,451
BEGINNING FUND BALANCES 57,891,432 15,449,250
ENDING FUND BALANCES (DEFICITS) $58,930,311 $15,785,701 See accompanying notes to basic financial statements
* Includes revenue and expenditures related to the City's Measure C District Sales Tax.
Special Revenue Funds
30 Other Total
Housing General Governmental
Governmental
Authority Capital Projects Funds Funds
$68,458,487
66,932,441
25,944,798
$1,763,211 $635,333 36,987,146
7,959,299
175,858 2,680,493
1,547,811 1,547,811
$76,971 399,766 1,121,800 2,484,894
644,985 645,060
5,449,154 27,292,095 52,257,273
218 4,506,630
(19,809) 7,607,879 9,809,921 18,779,649
57,380 15,220,010 41,227,803 289,183,981
21,750,190
556,057 144,815,357
6,490,544 10,664,999
2,890,545 12,948,082
199,977 7,907,653 8,705,058
9,442,396
1,225,734 13,234,112
26,574,459 11,951,513 38,525,972
355,029 5,766,622 6,121,651
17,464 2,358,176 2,375,640
199,977 26,946,952 39,146,844 268,583,457
(142,597) (11,726,942) 2,080,959 20,600,524
19,628,325 9,025,236 44,503,979
(11,384) (1,590,926) (46,466,502)
(11,384) 19,628,325 7,434,310 (1,962,523)
(153,981) 7,901,383 9,515,269 18,638,001
22,678,595 10,507,228 83,593,442 190,119,947
$22,524,614 $18,408,611 $93,108,711 $208,757,948
Capital Projects Funds
31 CITY OF HAYWARD
RECONCILIATION OF THE
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS
WITH THE
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2023
The schedule below reconciles the Net Changes in Fund Balances reported on the Governmental Funds Statement o f Revenues, Expenditures and Changes in Fund Balance, wh ich measures only changes in current assets and current liabilities on the modified accrual basis, with the Change in Net Position of Governmental Activities reported in the Statement of Activities, which is prepared on the full accrual basis.
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $18,638,001 Amounts reported for governmental activities in the Statement of Activities are different because of the following:
CAPITAL ASSETS TRANSACTIONS
Governmental Funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense.
Capital outlay expenditures are therefore added back to fund balance 38,525,972 Non-capitalized capital outlay expenditures and net retirements were reclassified to various governmental activities (12,224,749 ) Depreciation expense is deducted from fund balance
(Depreciation expense is net of internal service fund depreciation of $3,215,372 which has already been allocated to service funds) (15,256,612)
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 repayment reduces long-term liabilities.
Repayment of debt principal and amortization of bond premiums and deferred loss are added back to fund balance 6,500,776 Amortization of deferred loss on refunding is deducted from fund balance (93,721) Interest payable is added back to fund balance 47,845
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 reported as revenue or expenditures in governmental funds (net change):
Unavailable revenue (102,334)
Compensated absences (333,388)
Net pension liabilities and pension-related deferred outflows/inflows of resources (10,124,436) Net OPEB liabilities and OPEB-related deferred outflows/inflows of resources 6,370,112
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 they service those activities.
Change in Net Position - All Internal Service Funds (2,427,613) CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $29,519,853 See accompanying notes to basic financial statements
32 CITY OF HAYWARD, CALIFORNIA
MAJOR PROPRIETARY FUNDS
Proprietary funds account for City operations financed and operated in a manner similar to a private business enterprise. The intent of th e City is that the cost of providi ng goods and services be financed primarily through user charges.
The City has identified the funds be low as major proprietary funds in fiscal year 2023. 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. 33 CITY OF HAYWARD
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2023
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) $114,087,334 $125,163,933 $8,261,667 $6,763,029 $254,275,963 $57,641,560 Cash and investments with fiscal agents (Note 2) 1 1
Accounts receivable, net 5,414,240 10,409,666 340,108 1,731,789 17,895,803 465,297 Interest receivable 143,258 143,258
Due from other governments 15,631 10,656 26,287 82,471
Deposits, parts, supplies and other 2,139,985 2,106,491 4,246,476 208,936 Due from other funds (Note 5) 232,283 232,283
Total Current Assets 121,889,474 137,680,090 8,745,033 8,505,474 276,820,071 58,398,264 Noncurrent Assets:
Leases receivable (Note 4) 26,176,024 26,176,024
Long-term interfund receivables (Note 5) 2,898,197 2,898,197 Long-term loans to the Private Purpose Trust Fund (Note 20) 27,021 Investment in East Bay Dischargers Authority (Note 17) 9,445,110 9,445,110 Capital assets (Note 6):
Land 1,830,143 2,683,047 244,302 4,757,492 372,748
Construction in progress 14,961,990 14,238,154 1,610,018 30,810,162 511,900 Depreciable capital assets, net 99,432,728 35,983,104 10,033,176 254 145,449,262 21,367,567 Total Noncurrent Assets 125,669,971 55,802,502 38,063,520 254 219,536,247 22,279,236 Total Assets 247,559,445 193,482,592 46,808,553 8,505,728 496,356,318 80,677,500
DEFERRED OUTFLOWS OF RESOURCES
Related to pensions (Note 13) 2,924,467 2,458,903 515,285 619,245 6,517,900 2,504,103 Related to OPEB (Note 15) 1,099,633 925,705 240,335 233,295 2,498,968 1,002,000 Total Deferred Outflows of Resources 4,024,100 3,384,608 755,620 852,540 9,016,868 3,506,103 LIABILITIES:
Current Liabilities:
Accounts payable 1,680,669 4,417,294 70,351 23,563 6,191,877 1,792,016 Accrued interest 320,987 320,987 7,223
Accrued liabilities 380,772 325,660 77,891 84,553 868,876 24,904,782 Unearned revenue 229,565 517,922 (23,896) 723,591 52,420 Refundable deposits 4,032,549 124,334 4,156,883 9,237
Due to other funds (Note 5) 232,283 232,283
Compensated absences, due within one year (Note 1) 409,742 612,012 97,229 86,609 1,205,592 585,337 Accrued reclamation costs (Note 11) 125,000 125,000
Long-term debt, due within one year (Note 7) 3,515,005 3,515,005 234,365 Subscription liabilities, due within one year 170,025
Total Current Liabilities 6,661,740 9,905,437 345,909 427,008 17,340,094 27,755,405 Noncurrent Liabilities:
Compensated absences, due in more than one year (Note 1) 125,763 187,846 29,843 26,583 370,035 135,589 Net pension liabilities, due in more than one year (Note 13) 12,243,824 10,294,653 2,157,335 2,592,588 27,288,400 10,483,893 Net OPEB liability, due in more than one year (Note 15) 4,560,031 3,838,776 996,635 967,444 10,362,886 4,155,163 Long-term debt, due in more than one year (Note 7) 29,505,232 29,505,232 144,423 Subscription liabilities, due in more than one year 198,909 Total Noncurrent Liabilities 46,434,850 14,321,275 3,183,813 3,586,615 67,526,553 15,117,977 Total Liabilities 53,096,590 24,226,712 3,529,722 4,013,623 84,866,647 42,873,382 DEFERRED INFLOWS OF RESOURCES:
Related to leases (Note 4) 25,594,246 25,594,246
Related to pensions (Note 13) 30,215 25,402 5,324 6,398 67,339 25,869 Related to OPEB (Note 15) 1,316,290 1,108,094 287,687 279,261 2,991,332 1,199,422 Total Deferred Inflows of Resources 1,346,505 1,133,496 25,887,257 285,659 28,652,917 1,225,291 NET POSITION (Note 10):
Net investments in capital assets 83,204,624 52,904,305 11,887,496 254 147,996,679 21,504,493 Restricted for debt service 1 1
Unrestricted 113,935,825 118,602,687 6,259,698 5,058,732 243,856,942 18,580,437 Total Net Position $197,140,450 $171,506,992 $18,147,194 $5,058,986 $391,853,622 $40,084,930 See accompanying notes to basic financial statements
34 CITY OF HAYWARD
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED JUNE 30, 2023
Business-type Activities-Enterprise Funds Governmental
Activities-
Non-Major Internal Service
Sewer Water Airport Funds Totals Funds
OPERATING REVENUES:
Charges for services $31,803,745 $17,360, 115 $3,898,657 $3,290,845 $56,353,362 $35,075,411 Sale of water 41,203,445 41,203,445
Miscellaneous 3,420,550 5,496 7,931 14,614 3,448,591 1,204,977 Total Operating Revenues 35,224,295 58,569,056 3,906,588 3,305,459 101,005,398 36,280,388 OPERATING EXPENSES:
Salaries and related expenses 9,641,707 5,428,468 1,768,576 1,713,209 18,551,960 9,089,123 Materials, supplies and services 10,148,860 10,641,488 1,368,466 865,889 23,024,703 14,282,161 Repairs and maintenance 1,840,082 1,673,875 244,782 20,883 3,779,622 4,898,502 Water purchases 32,325,012 32,325,012
Self-funded insurance expense 14,038,448
Depreciation (Note 6) 6,162,641 2,336,619 1,234,923 164 9,734,347 3,215,372 Total Operating Expenses 27,793,290 52,405,462 4,616,747 2,600,145 87,415,644 45,523,606 Operating Income (Loss) 7,431,005 6,163,594 (710,159) 705,314 13,589,754 (9,243,218) NONOPERATING REVENUES (EXPENSES):
Investment income 1,208,068 1,387,880 500,743 74,346 3,171,037 745,051 Interest (expense) (513,983) (52,339) (21,230) (587,552) (14,660) Gain on investment in JPA 28,806 28,806
Loss on sale of capital assets (277,565)
Net Nonoperating Revenues (Expenses) 722,891 1,335,541 479,513 74,346 2,612,291 452,826 Income (Loss) Before Contributions and Transfers 8,153,896 7,499,135 (230, 646) 779,660 16,202,045 (8,790,392)
TRANSFERS
Transfers in (Note 5) 989,607 410,000 610,000 2,009,607 13,992,067 Transfers (out) (Note 5) (2,168,406) (2,654,144) (348,743) (1,238,570) (6,409,863) (7,629,288) Net Transfers (1,178,799) (2,244,144) (348,743) (628,570) (4,400,256) 6,362,779 CHANGE IN NET POSITION 6,975,097 5, 254,991 (579,389) 151,090 11,801,789 (2,427,613) BEGINNING NET POSITION 190,165,353 166, 252,001 18,726,583 4,907,896 380,051,833 42,512,543 ENDING NET POSITION $197,140,450 $171,506, 992 $18,147,194 $5,058,986 $391,853,622 $40,084,930 See accompanying notes to basic financial statements
35 PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2023
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 $35,563,409 $60,361,732 $3,341,136 $3,382,746 $102,649,023 $36,392,941 Payments to suppliers (10,610,981) (46, 390,050) (1,607,166) (878,248) (59,486,445) (30,642,819) Payments to employees (10,900,602) (8,912,442) (2,083,968) (2,321,485) (24,218,497) (10,073,312) Net Cash Flows From Operating Activities 14,051,826 5,059,240 (349,998) 183,013 18,944,081 (4,323,190)
CASH FLOWS FROM NONCAPITAL AND
RELATED FINANCING ACTIVITIES:
Interfund receipts (payments) 97,530 39,484 (97,530) 39,484 Transfers in 989,607 410,000 610,000 2,009,607 13,992,067 Transfers (out) (2,168,406) (2,654,144) (348,743) (1,238,570) (6,409,863) (7,629,288) Net Cash Flows From Noncapital and
Related Financing Activities (1,081,269) (2 ,204,660) (348,743) (726,100) (4,360,772) 6,362,779
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition of capital assets (5,654,772) (182,589) (649,808) (6,487,169) (2,551,734) Principal payments on capital debt (3 ,503,261) (1,555,726) (444,274) (5,503,261) (399,527) Interest paid (475,910) (58,380) (24,341) (558,631) (16,268) Net Cash Flows From Capital and
Related Financing Activities (9,633,943) (1,796,695) (1,118,423) (12,549,061) (2,967,529) CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income 1,208,069 1,387,881 500,745 74,346 3,171,041 750,251 Net Cash Flows From Investing Activities 1,208,069 1,387,881 500,745 74,346 3,171,041 750,251 NET CASH FLOWS 4,544,683 2,445,766 (1,316,419) (468,741) 5,205,289 (177,689) CASH AND EQUIVALENTS AT BEGINNING OF PERIOD 109,542,651 122,718,167 9,578,086 7,231,770 249,070,674 57,819,249 CASH AND EQUIVALENTS AT END OF PERIOD $114,087,334 $125,163,933 $8,261,667 $6,763,029 $254,275,963 $57,641,560
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED BY OPERATING ACTIVITIES:
Operating income (loss) $7,431,005 $6,163,594 ($710,159) $705,314 $13,589,754 ($9,243,218) Adjustments to reconcile operating income (loss) to net cash provided by operating activities:
Depreciation 6,162,641 2,336,619 1,234,923 164 9,734,347 3,215,372 Change in assets and liabilities:
Receivables, net 340,661 1,470,386 (162,953) 59,382 1,707,476 94,327 Deposits, parts, supplies and other 331,507 (302,681) 8,612 37,438 67,919 Due from other governments (1,547) 135 (95) (1,507) (77,917) Due to interest receivable (77,633) (77,633)
Due to leases receivable (323,266) (323,266)
Accounts payable and other accrued expenses 1,046,454 (1,446,994) (2,530) 8,524 (394,546) 2,576,292 Due to retirement system (310,417) (1,840,774) (241,921) (273,679) (2,666,791) (397,769) Due to OPEB (928,375) (1,708,666) (71,806) (317,431) (3,026,278) (610,370) Compensated absences (20,103) 65,466 (1,665) 834 44,532 23,950 Refundable deposits 235,850 4,167 240,017
Unearned revenue 86,305 (5,767) 80,538 28,224
Net Cash Flows From Operating Activities $14,051,826 $5,059,240 ($349,998) $183,013 $18,944,081 ($4,323,190) NON-CASH TRANSACTIONS:
Retirement of capital assets ($40,524) ($40,524) ($277,565) See accompanying notes to basic financial statements
36 CITY OF HAYWARD, CALIFORNIA
FIDUCIARY FUND FINANCIAL STATEMENTS
The Fiduciary funds account for resources received an d are held by the City in a fiduciary capacity.
Disbursements are made in accordanc e with the trust agreement, applic able legislative enactment, or custodial agreement for each fund.
Successor Agency to the Redevelopment Agency Private Purpose Trust Fund – This fund was established
to account for the activities of the Successor Agency to the former Rede velopment Agency of the City of Hayward.
Custodial Funds account for assets held by the City as custodian for individuals, other governmental entities, and non-public organizations.
37 FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2023
Private Purpose Custodial
Trust Fund Funds
CURRENT ASSETS:
Cash and investments (Note 2) $2,467,201 $5,063,907
Cash and investments with fiscal agents (Note 2) 1,383 363,434 Accounts receivable, net 453,912 3,897
Interest receivable 22,095
Due from other governments 59,337
Deposits, parts, supplies and other 201,524
Total Current Assets 2,944,591 5,692,099
NONCURRENT ASSETS:
Loans receivable (Note 20) 24,509,337
Lease receivable (Note 20) 1,282,083
Land held for resale 3,483,031
Capital assets (Note 20):
Land 4,430,516
Depreciable capital assets, net 8,859,206
Total Noncurrent Assets 42,564,173
Total Assets 45,508,764 5,692,099
CURRENT LIABILITIES:
Accounts payable and accrued liabilities 36,419 154,925 Accrued interest 356,883
Deferred revenue 63,165 55,831
Refundable deposits 224,521
Long-term debt, due in less than one year (Note 20) 2,180,000 Total Current Liabilities 2,636,467 435,277
NONCURRENT LIABILITIES (Note 20):
Long-term loans payable, due in more than one year 6,739,979 Long-term debt, due in more than one year 22,297,109
Total Noncurrent Liabilities 29,037,088
Total Liabilities 31,673,555 435,277
DEFERRED INFLOWS OF RESOURCES:
Related to leases (Note 20) 1,273,006
Total Deferred Inflows of Resources 1,273,006
NET POSITION
Restricted for:
Organizations and other governments 12,562,203 1,082,371 Bondholders 4,174,451
Total Net Position $12,562,203 $5,256,822
See accompanying notes to basic financial statements
38 Private-Purpose Custodial
Trust Fund Funds
ADDITIONS
Property tax $4,051,193 $1,097,551
Special assessment 178,364
Other revenue 1,149,242
Rental income 37,500
Investment income 35,446 62,872
Total additions 4,124,139 2,488,029
DEDUCTIONS
Maintenance services 269,701 523,312
Contractual services 1,289,004
Payments to bondholders 376,712
Depreciation expense (Note 20) 314,130
Interest and fiscal charges 940,179 186,355
Total deductions 1,524,010 2,375,383
Net change in position 2,600,129 112,646
Net position - beginning 9,962,074 5,144,176
Net position - ending $12,562,203 $5,256,822
CITY OF HAYWARD
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2023
See accompanying notes to basic financial statements
39 This Page Left Intentionally Blank
CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
1. SIGNIFICANT ACCOUNTING POLICIES
Description of Reporting Entity – The City of Hayward, Californi a (the “City”) was originally incorporated as the Town of Hayward in 1876. On March 7, 1956, the people of the City adopted a City Charter under which the City curr ently operates. The City maintains a Council- Manager form of government and is governed by an independently elected seven-member Cit y
Council. The City provides the following servic es as authorized by its charter: public safety (police, fire, and building inspection), highways an d streets, sanitation, water, airport, social services, public improvements, planning, library and zoning, and general administrative services.
Reporting Entity – The accompanying basic financial statem ents present the financial activity of the City, which is the primary government presen ted, along with the financial activities of its component units, which are entitie s for which the City is fina ncially accountable. The City Council sits in a different capacity as the gov erning boards of the fo llowing entities. Although they are separate legal entities,
blended component units are in substance part of the City’s operations and are reported as an integral part of the City’s financial st atements. Also, there is either a financial benefit or bur den relationship between the City and the component units below or the City has operational responsibility fo r them. The City’s component units which are described below are all blended.
• Hayward Public Financing Authority (the “Authority”) – In May 1989, the City and the former Redevelopment Agency
entered into a joint power s agreement under the Joint
Exercise of Powers Law of the State of Calif ornia, thereby forming the Authority for the purpose of financing certain capital impr ovements within the City. These capital improvements are leased to the City for rental payments, which, together with restricted assets of the Authority, will be sufficient to meet the debt service obligations of the Authority. At the termination of the individual leases, title to the related improvements will pass to the City. Operating activities of the Authority are reflected in both the Governmental and Business-type funds of the City.
• The Hayward Business Improvement District (the “District”) was established in 1984 to collect certain charges imposed on busi nesses within the downtown busines s
improvement district and to expend such moni es on activities, which enhance the district as a shopping and business center. Operating act ivities of the District are included as a special revenue fund of the City.
• The Hayward Housing Authority (“Housing Authority”) was originally established in 1946. The Housing Authority is only a conduit to issue housing mortgage revenue bonds for developers, whereby such developers are entirely responsible for meeting the related debt obligations and where the funds raised through such housing mortgage revenue bond issues are used to finance multifam ily rental housing developments. A certain percentage of housing units being financed must be for low and moderate income purposes. The Housing Authority is paid a fee by the bene fited developers for issuing the bonds and for monitoring the occupancy of these housing developments. This activity is recorded as a capital projects fund of the City.
41 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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, 3
rd 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. Business-type activities are financed in whole or in part by fees charged to external parties.
The Statement of Activities presents a compar ison between direct expenses and program revenues for each segment of the business-type ac tivities of the City and for each function of the City’s governmental activities. Direct expenses ar e those that are specifically associated with a program or function and, therefor e, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or se rvices offered by the programs, (b) grants and contributions that are restricted to meeting the operational needs of a particular program and (c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.
Fund Financial Statements : The fund financial statements provi de information about the City's funds, including fiduciary funds and blended component units. Separate statements for each fund category— governmental, proprietary, and fiduciary —are presented. The emphasis of fund financial statements is on major individual govern mental and enterprise fu nds, each of which is displayed in a separate column. All remaining go vernmental and enterprise funds are aggregated and reported as non-major funds.
42 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 gran d 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.
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 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 surfaci ng 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.
43 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from non exchange transactions or ancillary activities.
Operating expenses are those expenses that are es sential to the primary operations of the fund.
All other expenses are reported as non-operating expenses. 44 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 an d 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 function s 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 expend itures 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. 45 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
1. SIGNIFICANT ACCOUNTING POLICIES (Continued)
All governmental fund type annual operating budge ts are presented on a basis consistent wit h
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 consis
t 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, 2023 was stated at the lowest of historical cost, net realizable value, or agreed-upon sales price if a disposition agreement has been made with a developer performing projects in accordance with the Redevelopment Plan of the former Redevelopment Agency of the City of Hayward.
Property taxes – Alameda County assesses properties and bills for and collects property taxes as follows:
Secured Unsecured
Valuation dates March 1 March 1
Lien/levy dates January 1 January 1
Due dates 50% on November 1 July 1
50% on February 1
Delinquent as of December 10 (for November) August 31
April 10 (for February)
The term “unsecured” refers to taxes on personal property other than land and buildings. These taxes are secured by liens on the property being taxed.
Property taxes levied are recorded as revenue an d receivables, net of estimated uncollectibles, in the fiscal year of levy.
46 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 compensate d 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, 2023:
G overnm ental Business-type
Activities Activities Total
Beginning Balance $9,681,605 $1,531,095 $11,212,700
Additions 8,218,062 1,216,050 9,434,112
Payments (7,860,724) (1,171,518) (9,032,242)
Ending Balance $10,038,943 $1,575,627 $11,614,570
Current Portion $8,150,854 $1,205,592 $9,356,446
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 gove
rnment-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. 47 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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.
48 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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.
Subscription-Based Information Technology Arrangements (SBITAs) - A Subscription-Based Information Technology Arrangement (SBITA) is a contract that conveys control of the right to use another party’s (a SBITA vendor’s) IT software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the c ontract for a period of time in an exchange or exchange-like transaction.
At the commencement of a SBITA, the City initially measures the subscription liability at the present value of payments expected to be ma de during the contract term. Subsequently, the subscription liability is reduced by the principal portion of payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for payments made at or before the SBITA commencement date, plus cer tain initial direct costs. Subsequently, the subscription asset is amortized on a straight‐line basis over shorter of th e subscription term or the useful life of the underlying IT assets.
Key estimates and judgments related to SBITAs include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments as follows:
• The City uses the interest rate charged by the IT vendor as the discount rate. When the interest rate charged by the IT vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for subscription liabilities.
• The subscription term includes the noncancellable period of the subscription.
• Subscription payments included in the meas urement of the subscription liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.
The City monitors changes in circumstances that would require a remeasurement of its subscription and will remeasure the subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability.
Subscription assets are reported with other capita l assets and subscription liabilities are reported with long-term debt on the statement of net position.
49 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
1. SIGNIFICANT ACCOUNTING POLICIES (Continued)
New Governmental Accounting Standards Board Statement Pronouncement – GASB 96 –
Subscription-Based Information Technology Arrangements – In May 2020, GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements. The primary objective of this Statement is to improve fi nancial reporting by establishing a definition for subscription-based information technology ar rangements (SBITAs) and providing uniform guidance for accounting and financial reporting for transactions that meet that definition. The provisions of this Statement were implemente d during fiscal year 2023. As part of the implementation of this Statement, the City has accounted for certain subscription transactions, which required the restatement of beginning net position of the governmental activities capital assets and subscription liabilities in the amount of $540,910, and the net effect on beginning net position and fund balance is zero. See the subscription disclosure in Note 6 and Note 8.
New Funds
During fiscal year 2023, the City open ed two new Special Revenue Funds. The Local Housing Trust Program Special Revenue Fund accounts for transactions rela ted to the local housing trust fund program to provide matching funds to local and regional housing trust funds dedicated to the creation, rehabilitation, or preservation of affordable housing, transitional housing and emergency shelters. The
Traffic Impact Fee Loan Special Revenue Fund accounts for transactions related to the collection of a traffic impact fee paid by new developments to help mitigate cumulative transportation impacts of development growth.
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, 2023, 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. 50 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
2. CASH, CASH EQUIVALENTS AND INVESTMENTS (Continued)
Classification – As of June 30, 2023, 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 $482,014,452
Cash, cash equivalents, and investments with fiscal agents 7,938,075 Private Purpose Trust Fund
Cash and investments 2,467,201
Cash and investments with fiscal agents 1,383
Custodial Funds
Cash and investments 5,063,907
Cash and investments with fiscal agents 363,434
Total Cash and Investments $497,848,452
Cash and investments as of June 30, 2023 consisted of the following:
Cash in bank $95,694,381
Cash on hand (Petty Cash) 3,175
Investments 402,150,896
Total Cash and Investments $497,848,452
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. 51 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
2. CASH, CASH EQUIVALENTS AN D INVESTMENTS (Continued)
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%
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.
52 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 Minim um Credit Quality U.S. Treasury 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 Deposits None to 1 year None to A-1+ FDIC Insured Deposits No Lim it No Lim it
Investm ent Agreem ents No Lim it None to two
Highest Categories
Com m ercial Paper None to 270 days A-1 to A-1+
State G eneral Obligations No Lim it A/A2 to Two
Highest Categories
Municipal Obligations No Lim it AAA to Two
Highest Categories
Federal Funds or Bankers Acceptances 180 days to 1 year A-1 to A-1+ Repurchase Agreem ents None to 30 days None to A
Pre-funded Municipal Bonds No Lim it AAA
California Local Agency Investm ent Fund No Lim it No Lim it 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.
53 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
2. CASH, CASH EQUIVALENTS AND INVESTMENTS (Continued)
The following is a summary of the fair value hier archy of the fair value of investments of the City as of June 30, 2023:
Level 1 Level 2 Total
I nv estm ents b y F air Value:
U.S. Treasury Notes $194,692,396 $194,692,396
U.S. Agency Securities $6,848,096 6,848,096
Medium-Term Notes 39,857,983 39,857,983
Municipal Bonds 9,546,422 9,546,422
Supranationals 1,196,854 1,196,854
Asset-Backed Securities 3,994,036 3,994,036
Total Investments at Fair Value $194,692,396 $61,443,391 256,135,787 I nv estm ents M easured at Am ortized Cost:
Money Market Mutual Funds 8,302,890
California Local Agency Investm ent Fund 136,820,056
Certificates of Depos it 892,163
Total Investm ents $402,150,896
Investm ent Type
U.S. Treasury Notes classified in Level 1 of the fair value hierarchy are valued using quoted prices in active markets. U.S. Agency Secu rities, Medium-Term Notes, Municipal Bond s,
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. 54 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
2. CASH, CASH EQUIVALENTS AN D INVESTMENTS (Continued)
Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of th e City’s investments by maturity or earliest call date:
Investm ent Type 12 Months or less
13 Months to 24
Months
25 Months to 60
Months Total
U.S. Treasury Notes $64,895,683 $53,120,598 $76,676,115 $194,692,396 U.S. Agency Securities 6,848,096 6,848,096
Money Market Mutual Funds 8,302,890 8,302,890
California Local Agency Investment Fund 136,820,056 136,820,056 Medium-Term Notes 13,548,132 26,309,851 39,857,983
Municipal Bonds 2,443,154 7,103,268 9,546,422
Supranationals 1,196,854 1,196,854
Certificates of Deposit 892,163 892,163
Asset-Backed Securities 100,604 233,716 3,659,716 3,994,036 Total Investments $210,119,233 $70,542,454 $121,489,209 402,150,896 Cas h in Banks 95,694,381
Cash on Hand (Petty Cash) 3,175
Total Cash 95,697,556
Total C ash and Investm ents $497,848,452
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, 2023, these investments had an average maturity of 260 days.
Money market funds are available for withdraw al on demand and at June 30, 2023, had an average maturity of 1 day.
55 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 , 2023 for each investment type as provided by Moody’s investment rating system (as of date of purchase):
Investm ent Type AAAm /AAA AA1 - AA3 A1 - A 3 P-1 Not Rated Total U.S. Treasury Notes $194,692,396 $194,692,396
U.S. Agency Securities 6,848,096 6,848,096
Money Market Mutual Funds 8,302,890 8,302,890
California Local Agency Investm ent Fund $136,820,056 136,820,056 Medium-Term Notes 429,083 $8,841,568 $30,587,332 39,857,983 Municipal Bonds 7,772,248 1,774,174 9,546,422
Supranationals 1,196,854 1,196,854
Certificates of Deposit 892,163 892,163
Asset-Backed Securities 2,337,495 1,656,541 3,994,036
Total Investments $213,806,814 $17,505,979 $30,587,332 $140,250,771 $402,150,896 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, 2023, 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.
4. LEASES RECEIVABLE
Lessor –
The City from to time to time engages in lease 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.
56 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
4. LEASES RECEIVABLE (Continued)
As of June 30, 2023, 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, 2023
Lease Receivable
Balance at
June 30, 2023
Deferred Inflow of
Resources at
June 30, 2023
Proprietary Funds - Airport Fund
Home Depot USA, Inc. 12 /12/2000 12/31/2045 $653, 528 $8,895,274 $8,684,539 Mahabal Hospitality, LLC 12/1/2017 11/30/2067 271,089 5,199,494 5,147,150 Ramesta Hospitality, LLC 12/1/2017 11/30/2067 271,089 5,199,494 5,147,150 Velo Two, LLC 11/1/2018 10/31/2068 157,106 3,082,755 2,977,589 BDC Sueirro LP 3/1/2006 2/29/2056 166,714 2,794,402 2,719,965 Hayward Airport Plaza, LLC 11/1/2019 10/31/2029 62,419 385,540 321,208 Pacif
ic Roller Die Company, Inc. 12/1/2020 11/30/2025 86,096 196,183 191,034 GT
E Mobilnet 10/1/2006 9/30/2031 31,906 217,720 207,805
Wa
tt Industries, Inc. 7/2/1984 10/10/2038 19,902 160,140 154,630 Pa
ul Mazza 1/1/2005 12/31/2054 10,157 45,022 43,176 $1,730,006 $26,176, 024 $25,594,246
Regulated Leases – In accordance with GASB Statement No . 87, the City 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). 57 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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, 2023, the annual lease revenue and terms of the leases were as follows:
Les s or
Original
Leas e Date
Expiration Date
Including
Options
Annual
Revenue as of
June 30, 2023
Proprietary Funds - Airport Fund
Meridian Aviation, Inc. 1/1/2014 12/31/2063 $141,064
Watt Industries, Inc. 10/11/1988 12/1/2045 116,706
Pape Properties, Inc 7/1/1998 12/31/2048 105,543
Avcon, Inc. 3/1/2012 2/28/2027 73,132
Career Aviation Sales, Inc. 7/1/2005 12/31/2053 74,893
Ascend Development HWD - II, LLC 2/2/2004 12/31/2054 45,458 California Military Department 7/1/2014 6/30/2025 46,708 Briggs Resources, Inc. 5/1/2018 4/30/2068 40,693
EPIC Aviation, LLC 2/2/2004 12/31/2054 63,985
Ascend Development, HWD, LLC 8/1/2001 12/31/2051 41,036 Aviation Training, Inc. 9/1/2017 8/31/2047 22,008
Hayward FBO LLC, dba APP Jet Center 3/1/2017 2/28/2047 16,673 William Field 12/14/1999 12/31/2048 24,405
Ascend Development HWD - II, LLC 2/2/2004 12/31/2054 20,719 Hayward Hangars, LLC 12/13/2022 12/31/2063 28,839
$861,862
The future expected minimum rentals to be rece ived from the existing regulated leases are as follows at June 30, 2023:
Mi ni mum
Year Ending Lease
June 30: Rev enue
2024 $861,862
2025 978,114
2026 978,114
2027 929,187
2028 904,809
2029 - 2033 4,280,273
2034 - 2038 4,280,273
2039 - 2043 4,280,273
2044 - 2048 4,100,267
2049 - 2053 2,908,466
2054 - 2058 1,716,871
2059 - 2063 1,215,923
2064 - 2068 511,998
2069 - 2072 35,053
Total $27,981,483
58 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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, 2023 were as follows:
FROM FUND: TO FUND: AMOUNT:
General Fund General Capital Projects Fund $17,717,430 A Non-Major Governmental Funds 8,631,003 B
Internal Service Funds 11,259,052 B
Federal G rants Special Revenue Fund Internal Service Funds 6,707 B
American Rescue Plan Act Special Revenue Fund General Fund 7,250,000 B Housing Authority Capital Projects Fund G eneral Fund 3,897 C
Internal Service Funds 7,487
B
Non-Major Governmental Funds General Fund 331,050 B General Capital Projects Fund 750,000 A
Non-Major Governmental Funds 350,226 B
Internal Service Funds 159,650 B
Sewer Enterprise Fund General Fund 823,783 C Internal Service Funds 934,623 B
Water Enterprise Fund 410,000 A
Water Enterprise Fund General Fund 1,229,099 C Non-Major Enterprise Funds 610,000 C
Internal Service Funds 815,045 B
Airport Enterprise Fund Internal Service Funds 348,743 B Non-Major Enterprise Funds General Fund 233,963 C Non-Major G overnm ental Funds 15,000 A Sewer Enterprise Fund 989,607 B
Internal Service Funds G eneral Fund 5,978,626 C General Capital Projects Fund 1,160,895 A
Non-Major G overnm ental Funds 29,007 A Internal Service Funds 460,760 B
$60,505,653
A To fund capital projects.
B To fund debt service, capital projects, adm inistrative overhead, and insurance.
C To fund allocation of adm inistrative overhead.
59 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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, 2023 interfund balances were as follows:
Due from Other Funds Due To Other Funds Amount
General Fund Non-Major Governmental Funds $1,838,041
Sewer Enterprise Fund Non-Major Enterprise Funds 232,283 $2,070,324
Long-Term Interfund Advances – At June 30, 2023, 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 $2,898,197
Water Enterprise Fund $2,898,197
Total $2,898,197 $2,898,197
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, 2023, the outstanding loan balance was $2,898,197.
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 a re
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 spre ad 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. 60 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
6. CAPITAL
ASSETS (Continued)
Depreciation is provided using the straight lin e method which means the cost of the asset i s
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:
June 30, 2022 Balance
(as restated) Additions Retirem ents Transfers June 30, 2023 Governmental activities:
Capital assets not being depreciated:
Land $19,246,485 $19,246,485
Construction in progress 62,135,175 $26,020,555 ($7,130,232) 81,025,498 Total capital assets not being depreciated 81,381,660 26,020,555 (7,130,232) 100,271,983 Capital assets being depreciated:
Buildings and improvements 105,794,217 154,197 105,948,414 Improvements other than buildings 75,052,859 ($29,437) 6,042,969 81,066,391 Machinery and equipment 69,745,546 3,035,549 (1,365,140) 933,066 72,349,021 Streets 343,271,158 (11,620) 343,259,538
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
Right-to-use subscription assets 540,910 540,910
Total capital assets being depreciated 610,116,657 3,035,549 (1,406,197) 7,130,232 619,417,151 Less accumulated depreciation for:
Buildings and improvements 35,372,031 2,155,699 37,527,730 Improvements other than buildings 13,900,045 3,015,936 (9,886) 16,906,095 Machinery and equipment 46,023,432 3,755,645 (903,979) 48,875,098 Streets 125,496,919 9,057,221 (11,620) 134,542,520
Traffic signals 7,086,558 150,280 7,236,838
Medians 2,520,018 92,706 2,612,724
Conduits 1,540,569 1,540,569
Drains 2,651,292 117,500 2,768,792
Right-to-use Assets 126,997 126,997
Total accumulated depreciation 234,590,864 18,471,984 (925,485) 252,137,363 Net depreciable assets 375,525,793 (15,436,435) (480,712) 7,130,232 367,279,788 Governmental activity capital assets, net $456,907,453 $10,584,120 ($480,712) $467,551,771 61 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
6. CAPITAL
ASSETS (Continued)
Balance Balance
June 30, 2022 Additions Ad justments June 30, 2023
Business-type activities:
Capital assets not being depreciated:
Land $4,757 ,492 $4,757,492
Construction in progress 24,875 ,307 $5,975,379 ($40,524) 30,810,162 Total capital assets not being depreciated 29,632,799 5,975,379 (40,524) 35,567,654 Capital assets being depreciated:
Buildings and improvements 36,759,292 36,759,292
Machinery and equipment 77,087,420 454,966 77,542,386
Sewer pipelines and infrastructure 126,766,792 56,824 126,823,616 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 340,561,616 511,790 341,073,406 Less accumulated depreciation for:
Buildings and improvements 23,099,134 641,581 23,740,715 Machinery and equipment 24,606,872 2,705,823 27,312,695 Sewer pipelines and infrastructure 72,439,889 3,857,121 76,297,010 Water pipelines and infrastructure 44,400,675 1,831,341 46,232,016 Airport hangars, tarmacs and other
infrastructure assets 21,343,227 698,481 22,041,708
Total accumulated depreciation 185,889,797 9,734,347 195,624,144 Net depreciable assets 154,671,819 (9,222,557) 145,449,262 Business-type activity capital assets, net $ 184,304,618 ($3,247,178) ($40,524) $181,016,916 Governmental capital assets construction in prog ress was composed of the following at June 30, 2023:
Project Ex pended to
Budget June 30, 2023 Committed
Buildings $5,100,000 $3,055,311 $2,044,689
Improvements other than buildings 91,451,086 74,903,282 16,547,804 Machinery and equipment 966,559 342,891 623,668
Streets 39,700,000 2,663,072 37,036,928
Traffic Signals 965,000 60,942 904,058
Total $138,182,645 $81,025,498 $57,157,147
62 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
6. CAPITAL
ASSETS (Continued)
A summary of enterprise fund construction in progress at June 30, 2023 follows:
Project Expended to
Budget June 30, 2023 Committed
Sewer Enterprise Fund $31,305,114 $14,961,990 $16,343,124 Water Enterprise Fund 28,442,277 14,238,154 14,204,123
Airport Enterprise Fund 7,464,000 1,610,018 5,853,982
Total $67,211,391 $30,810,162 $36,401,229
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, 2023.
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 $3,055,311 $2,044,690 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 Gov ernment $1,330,325
Public Safety 10,525,267
Public Works and Transportation 1,434,112
Library and Community Services 784,690
Redevelopment 134,703
Planning and Building 639,273
Maintenance Services 408,242
Internal Service Funds 3,215,372
$18,471,984
Business-Type Activities
Sewer Fund $6,162,641
Water Fund 2,336,620
Airport Fund 1,234,922
Stormwater Fund 164
$9,734,347
63 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 2022 Retirements 2023 Portion
Governmental Activity Debt:
Certificates of Participation
2015 COP (a), 3.0-5.0%, due 12/31/34 $67,535,000 $55,610,000 $3,365,000 $52,245,000 $3,530,000 Add: Original issue premium 5,689,046 3,892,509 299,428 3,593,081 Total Certificates of Participation 59,502,509 3,664,428 55,838,081 3,530,000 Dire ct Borrowings :
Private Placement Certificates of Participation
2016 Refunding COP (a), 2.6-2.76%, due 11/1/2026 19,813,775 9,284,300 1,759,658 7,524,642 1,806,787 Add: Original issue premium 876,695 398,495 79,697 318,798 Loan Payable
Energy Efficiency Loan (a), 1%, due 12/22/2023 2,488,880 411,090 272,838 138,252 137,442 Private Placement Loan
2014 Fire Station #7 and Wellness Center
Private Placement Loan (a), 2.84%, due 8/1/2029 5,500,000 3,039,736 369,126 2,670,610 379,685 Capital Lease - Equipment
SCBA Equipment Lease (a), 5%, due 2/1/2023 1,063,021 355,029 355,029 Total Direct Borrowings 13,488,650 2,836,348 10,652,302 2,323,914 Subtotal 72,991,159 6,500,776 66,490,383 5,853,914
Dire ct Borrowings :
Internal Service Fund Long-Term Debt (b)
Capital Leases - Fleet
Fire Engines
3.05%, due 1/17/2024 824,000 185,330 91,263 94,067 94,069 Fire Truck
2.92%, due 6/15/2025 1,272,000 421,009 136,288 284,721 140,296 Total Capital Lease Obligations (Direct Borrowings) 606,339 227,551 378,788 234,365 Subtotal 606,339 227,551 378,788 234,365
Total Governmental Activity Debt $73,597,498 $6,728,327 $66,869,171 $6,088,279 (Continued)
64 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
7. LONG-TERM DEBT (Continued)
Authorized Balance Balance
Type of and at June 30, at June 30, Current
Obligation Issued 2022 Retirements 2023 Portion
Business-type Activity Debt
Direct Borrowings:
Pr iva te Pla cem ent Revenue Bonds
2013 Water Revenue Refunding Loan (c),
2.76%, due 5/1/2025 $7,245,000 $2,000,000 $2,000,000
Loan Payable
Energy Efficiency Loan (c), 3%, due 6/22/2025 2,450,000 620,430 200,688 $419,742 $206,726 Energy Efficiency Loan (c), 1% due 6/22/2038 2,150,955 1,936,338 112,186 1,824,152 113,263 State Water Resource Control Board Loan 2006
1%, due 9/30/2028 (d) 54,550,018 19,094,613 2,727,501 16,367,112 2,727,501 State Water Resource Control Board Loan 2019
1%, due 3/31/2049 (d) 21,227,086 14,872,117 462,886 14,409,231 467,515 Total Business-type Activity Debt (Direct Borrowings) $38,523,498 $5,503,261 $33,020,237 $3,515,005
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 2023, the City had total debt outstanding of $100 million, which complies with , and is significantly under, the current policy limits.
Certificates of Participation (COPs)
2015 Certificates of Participation – On October 1, 2015, the C ity issued $67,535,000 in Certificates of Participation (2015 COPs) to acquire and construct a number of capital improvements, including a new library and community learning center, improvements to existing fire stations, and street rehabilitation and repairs. The 2015 COPs bear interest at 3% to 5% and are due serially each November 1. Interest payments are due semi-annually on May 1 and November 1, through maturity in 2034.
65 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 t he
revenue of the City to be applie d by the Trustee as specified in the terms of the agreement if any of the following conditions occur: default on debt service payments; the fa ilure of the City to observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy fili ng 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.
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 control of the City.
Lease Obligations
The City has entered into various lease agreemen
ts to acquire property, miscellaneous computer
mainframe equipment, and various City vehicles. All of the lease agreements require annual payments.
66 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 ended in fiscal year 2023 as repayment of the $$2.1 million in remaining debt service on the bonds wa s fully paid on May 1, 2023. For fiscal year 2023, Water Fund Revenues including operating revenues, non-operating interest earnings and transfers in amounted to $60.4 million and operat ing costs including oper ating expenses, but not interest, depreciation or amortizations amounted to $50 million. Net Revenues available for debt service amounted to $10.3 million, which represen ted coverage of 5.0 times over the $2,055,200 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.
As of June 30, 2023, the 2013 Water Revenue Refunding Bonds were paid off in full.
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. 67 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 i n
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, 2023, the City’s gross repayment obligation totaled $16,367,112. 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, 2023, the City has drawn down $15,669,071. As of June 30, 2023, the City’s estimated gross repayment obliga tion totaled $14,409,231. The lo an bears interest at 1% and payments are due annually on January 31 of each year commencing in 2021 until 2050. 68 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
7. LONG-TERM DEBT (Continued)
Debt Service Requirements
At June 30, 2023, annual debt service requiremen ts to maturity for long-term debt, including interest payments, were as follows:
Ye ar Endi ng
June 30: Principal Interest Principal Interest
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 4,130,000 1,304,838 425,023 27,831
2029 - 2033 22,640,000 4,445,781 660,436 18,844
2034 - 2035 10,370,000 405,269
Totals 52,245,000 $12,740,440 10,712,292 $673,515
Plus unamortized premium 3,593,081 318,798
Total Long-term debt principal, net $55, 838,081 $11,031,090 Business-Type Activities
Direct Borrow ings
Ye ar Endi ng
June 30: Principal Interest
2024 $3,515,005 $240,129
2025 3,527,152 173,183
2026 3,320,007 161,050
2027 3,325,935 150,372
2028 3,331,888 144,444
2029 - 2033 5,843,614 600,382
2034 - 2038 3,272,948 441,442
2039 - 2043 2,768,675 289,360
2044 - 2048 2,909,905 148,130
2049 - 2050 1,205,108 18,106
Totals $33,020,237 $2,366,598
Governmental Activities -
2015 Certificates of Particip ation
Governmental Activities -
Direct Borrow ings
Defeased Bonds
As of June 30, 2023, outstanding balances for defeased debt were $665,000 for the 2001 Water System Improvement Project Certificates of Participation and $8,060,000 for the 2007 Refunding Certificates of Participation.
69 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
7. LONG-TERM DEBT (Continued)
Leasing Arrangements
Certificates of Participation, Lease Revenue Bonds and other Leases are issued for the purpose of financing the construction or acquisition of pr ojects defined in each leasing arrangement.
Projects are leased to the City for lease payments which, together with unspent proceeds of the leasing arrangement, will be sufficient to meet the debt service obligations of the leasing arrangement. At the termination of the leasing arrangement title to the project will pass to the City.
Leasing arrangements are similar to debt; they allow investors to participate in a share of guaranteed payments, which are made by the City. Because they are similar to debt, the present value of the total of the payments to be made by the City is recorded as long-term debt. The City’s leasing arrangements are included in long term obligations discussed in the preceding note.
8. SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS During fiscal year 2023, the City implemented the provisions of GASB Statement No. 96, Subscription-Based Information Technology Arrangements , which required the restatement o f capital assets, specifically to incorporate intangible right-to-use subscription assets, and subscription liabilities. As a result, initial subscription liabilities were recorded in the amounts of $536,411 as of July 1, 2022 for governmental activities. The subscr iption liabilities are of fset with subscription assets as shown in Note 6.
A summary of subscription-based information tec hnology arrangements (SBITA) transactions for the fiscal year ended June 30, 2023, are as follows:
Balance
June 30, 2022 Balance Current
(as restated) Retirements June 30, 2023 Portion
Governmental Activities
Subscription Liabilities
Arctic Wolf License $213,42 7 ($103,025) $110,402 $110,402 Intterra Software 327,483 (68,951) 258,532 59,623
Total Subscription Liabilities $54 0,910 ($171,976) $368,934 $170,025 On July 1, 2022, the City entered into a 35 month subscription for the use of an Arctic Wolf License Subscription. An initial subscription liability was recorded in the amount of $213,427. As of June 30, 2023, the value of the subscrip tion liability is $110,402. The City is required to make annual fixed payments of $107,441. The subscription has an interest rate of 2.1843% The value of the right to use asset as of June 30, 2023 is $213,426 with accumulated amortization of $72,416, which is included in Note 6 Capital Assets.
On September 1, 2021, the City entered into a 60 month subscription for the use of an Intterra Software Subscription. An initial subscription liability was recorded in the amount of $322,984. As of June 30, 2023, the value of the subscription liab ility is $258,532. The City is required to make annual fixed payments of $64,452. The subscription has an interest rate of 2.1843% The value of the right to use asset as of June 30, 2023 is $327,484 with accumulated amortization of $54,581, which is included in Note 6 Capital Assets.
70 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
8. SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS The future subscription and interest subscription payments as of June 30, 2023 follows:
For the Year
Ended June 30 Principal Interest Total
2024 $170,025 $8,528 $178,553
2025 62,645 4,706 67,351
2026
66,061 3,224 69,285
2027
70,203 1,661 71,864
To
tals $368,934 $18,119 $387,053
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, 2023 was $55,000.
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, 2023 was $4,236,302.
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.
71 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 residual fund balances, if any, of Special Revenue, Capital Projects and Debt Service Funds which have been assigned by City Council Resolution. 72 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 unassigne d
fund balance). In order to calculate the amounts to report as rest ricted, committed, assigned, and unassigned fund balance in the governmental fu nd financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted fund balance to have been depleted before using any of t he
components of unrestricted fund balance. Furt her, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.
Minimum Fund Balance Policies – The City’s Budget and Fiscal Policy requires the City to strive to maintain a prudent leve l of financial resources to protec t against reducing service levels or raising taxes and fees because of temporar y revenue shortfalls or unpredicted one time expenditures. These resources also provide a fi rst defense against deficit spending and hel p
maintain liquidity when budgeted drawdowns are inevitable. The reserve may be used at the City Council’s discretion to addres s temporary cash flow shortage s, emergencies, unanticipated economic downturns, and one time opportunities . These resources are intended to provide flexibility to respond to unexpected opportunities that may help the City of Hayward achieve its goals. The use of these funds may also be tied to an adverse change in economic indicators to ensure that the funds are not depleted before an emergency arises.
It is the policy of the City of Hayward to esta blish and maintain adequate financial reserves in order to avoid the negative effects of economic cycles upon essential services to the public and t o
assure that annual fluctuations in revenue recei pts do not impede the City’s ability to meet its expenditure obligations.
During periods of economic sufficiency, these reserv es shall be used as a source of supplemental revenue through prudent investments and earnings under policies of the City Council and fo r meeting short term cash flow deficiencies. During periods of economic downturns, whe n
revenues fail to meet the normal operating requi rements of essential public services, or when need for reserves temporarily exceeds receipts, these designations may, upon the recommendation of the City Manager and the authorization of the City Council, be used in accordance with the standards set forth herein.
Under GASB 54, such reserves are includable in Unassigned fund bala nce when the usage is predicated on general circumstances which are expected to routinely occur. 73 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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, 2023
Nonspendables:
Item s not in spendable form :
Long-term loans to Private Purpose Trust $2,836,442
Deposits, parts, supplies and other 9,006
Total Nonspendable Fund Balances 2,845,448
Assigned:
Measure C District sales tax 16,632,531
Total Assigned Fund Balances 16,632,531
Unas s i g ne d:
Des ignations:
Liquidity 39,452,332
Total Unas s igned Fund Balances 39,452,332
Total Fund Balances $58,930,311
• 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, 2023, the following funds had a deficit:
The Recycling Enterprise Fund reported a de ficit of $365,421 at June 30, 2023 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 de ficit of $6,195,130 at June 30, 2023 due to increasing cost of insurance premiums and legal fees, in addition to the internal service rates adjustment was not enough to cover the previous years’ deficits at the end of fiscal year 2023. This deficit is expected to be eliminated with future internal service fund charges and a one-time transfer in fiscal year 2024.
74 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 landf ill site as well as ongoing monitoring costs.
Annually the City expects to incu r $125,000 in expenses relate d to reclamation costs for the site.
These expenses will be funded by oper ating revenue of the Sewer Enterprise Fund.
Reclamation payments totaled $53,580 for the year ended June 30, 2023. 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 deferre d 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 $321,832 to the Plan. 75 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 wit h
statutorily reduced benefits. All members are el igible for non-duty disabi lity benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as sp ecified by the Public Employees’ Retirement Law. The Pension Reform Act of 2013 (PEPRA), Assembly Bill 340,
is applicable to em ployees new to CalPERS
and hired after December 31, 2012.
76 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
13. PENSION PLANS (Continued)
The Plans’ provisions and benefits in effect at June 30, 2023, 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) 9.77% 9.77%
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) 18.49% 18.49% 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) 21.69% 21.69% (A) R
ates 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
77 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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, 2021 and measurement date of June 30, 2022:
Miscellaneous Safety-Fire Safety - Police
Inactive employees or beneficiaries currently receiving benefits 961 192 361 Inactive employees entitled to but not yet receiving benefits 735 23 79 Active employees 515 120 167
Total 2,211 335 607
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, 2022, using an annual actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. A summary of principal as sumptions and methods used to determine the net pension liability is shown below. 78 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
13. PENSION PLANS (Continued)
Actuarial Assumptions
– For the measurement period ende d June 30, 2022, the total pension liabilities were determined by rolling forward th e June 30, 2021 total pens ion liability. The June 30, 2021 and June 30, 2022 total pension liabi lities were based on the following actuarial methods and assumptions:
All Plans
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry-Age Normal Cost Method
Actuari al Assum pti ons:
Discount Rate 6.90%
Inflation 2.30%
Payroll Growth 2.80%
Projected Salary Increase Varies by Entry Age and Service Investm ent Rate of Return 6.90% (1)
Mortality Derived usin
g CalPERS Members hip
Data for all Funds (2)
Pos t Retirement Benefit Increas e Contract COLA up to 2.30% until Purchasin g Power Protection
Allowance Floor on Purchasin g
Power applies, 2.30% thereafter
(1) N
et of pension plan investm ent ex penses, including inflation. (2) T
he m ortality table used was developed based on CalPERS' specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates include generational m ortality im provem ent using 80% of Scale MP-2020 published by the Society of Actuaries.
For more details on this table, please refer to the CalPERS Ex perience Study and review of Actuarial to Assumptions report from November 2021 that can be found on the CalPERS website.
Discount Rate
– The discount rate used to measure the total pension liability for each Plan was
6.90%. The projection of cash flow s used to determine the discount rate for each Plan assumed that contributions from all plan members in th e Public Employees 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.
79 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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. Using hist orical returns of all the fund’s asset classes, expected compound (geometric) re turns were calculated over the next 20 years using a building- block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 basis points.
The expected real rates of return by asset class are as follows:
Asset C l ass (a)
Assum ed
Asset
Allocation
Real Return
(a),(b)
Global Equity - Cap-weighted 30.0% 4.54%
Global Equity - Non-Cap-weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage -5.0% -0.59%
Total 100%
(a) A
n expected inflation of 2.30% used for this period.
(b) F
igures are based on the 2021 Asset Liability Management study.
Changes of Assumptions – Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced fr om 7.15% to 6.90%. In determining the long- term expected rate of return, CalPERS took into account long-term market return expectations as
well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liab ilities was informed by the long-term projected portfolio return. In addition, demographic assu mptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.
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, the excess return of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate used for funding purposes of 0.20%, from 7.00% to 6.80%. Since CalPERS was in the final stages of the four-year Asset Liabi lity 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. 80 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
13. PENSION PLANS (Continued)
On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market 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) for 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. This study also recommended modifications to retirement rates, termination rates, mortality rates and rates of salary increases that were adopted by the CalPERS Board. These ne w assumptions are reflected in the GASB 68 accounting 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, 2021 $510,910,249 $390,653,694 $120,256,555 Changes in the year:
Service cost 9,264,461 9,264,461
Interest on the total pension liability 35,732,803 35,732,803 Changes of Assumptions 15,236,428 15,236,428
Differences between actual and ex pected ex perience 1,252,761 1,252,761 Contribution - employer 16,196,634 (16,196,634)
Contribution - em ployee 6,156,612 (6,156,612)
Net investment income (29,606,807) 29,606,807
Adm inistrative ex penses (243,354) 243,354
Benefit paym ents, including refunds of em ployee
contributions (28,329,956) (28,329,956)
Net changes 33,156,497 (35,826,871) 68,983,368
Balance at June 30, 2022 $544,066,746 $354,826,823 $189,239,923 Safety - Fire Plan:
Increase (Decrease)
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2021 $330,739,983 $237,300,992 $93,438,991 Changes in the year:
Service cost 5,827,305 5,827,305
Interest on the total pension liability 22,663,052 22,663,052 Changes of Assumptions 10,219,002 10,219,002
Differences between actual and ex pected ex perience (6,319,906) (6,319,906) Contribution - employer 11,490,694 (11,490,694)
Contribution - em ployee 2,983,463 (2,983,463)
Net investment income (18,111,315) 18,111,315
Adm inistrative ex penses (147,824) 147,824
Benefit paym ents, including refunds of em ployee
contributions (18,205,377) (18,205,377)
Net changes 14,184,076 (21,990,359) 36,174,435
Balance at June 30, 2022 $344,924,059 $215,310,633 $129,613,426 81 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
13. PENSION PLANS (Continued)
Safety - Police Plan:
Increase (Decrease)
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2021 $449,527,982 $316,106,718 $133,421,264 Changes in the year:
Service cost 8,300,617 8,300,617
Interest on the total pension liability 31,411,054 31,411,054 Changes of Assumptions 16,532,003 16,532,003
Differences between actual and expected experience (2,679,143) (2,679,143) Contribution - employer 16,166,620 (16,166,620)
Contribution - employee 3,803,625 (3,803,625)
Net investment income (24,027,912) 24,027,912
Administrative expenses (196,916) 196,916
Benefit payments, including refunds of employee
contributions (24,596,971) (24,596,971)
Net changes 28,967,560 (28,851,554) 57,819,114
Balance at June 30, 2022 $478,495,542 $287,255,164 $191,240,378 Combined Total $1,367,486,347 $857,392,620 $510,093,727 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:
Mis cellaneous Safety-Fire Safety-Police
1% Decrease 5.90% 5.90% 5.90%
Net Pens ion Liability $259,256,942 $175,267,836 $257,118,529 Current Discount Rate 6.90% 6.90% 6.90%
Net Pens ion Liability $189,239,923 $129,613,426 $191,240,378 1% Increase 7.90% 7.90% 7.90%
Net Pens ion Liability $131,383,893 $92,050,331 $137,546,383 Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. 82 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
13. PENSION PLANS (Continued)
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2023, the City r ecognized pension expense of $19,803,476 for the Miscellaneous Plan, $11,689,447 for the Safety Plan – Fire and $22,954,316 for the Safety Plan – Police. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Miscellaneous Plan:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to m easurem ent date $17,251,303 Differences between actual and ex pected ex perience 770,930 ($466,976)
Changes of assum ptions 9,376,263
Net differences between projected and actual earnings on plan investm ents 17,801,927
Total $45,200,423 ($466,976)
Safety Plan - Fire:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to m easurem ent date $12,364,514 Differences between actual and ex pected ex perience 1,546,750 ($7,094,701) Changes of assum ptions 8,090,043
Net differences between projected and actual earnings on plan investm ents 10,906,496
Total $32,907,803 ($7,094,701)
Safety Plan - Police:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to m easurem ent date $17,688,292 Differences between actual and ex pected ex perience 2,317,626 ($1,867,281) Changes of assumptions 11,522,305
Net differences between projected and actual earnings on plan investm ents 14,342,167
Total $45,870,390 ($1,867,281)
Combined total $123,978,616 ($9,428,958)
83 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
13. PENSION PLANS (Continued)
$
47,304,109 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
2024 $8,693,904
2025 6,320,814
2026 1,202,370
2027 11,265,056
Total $27,482,144
Safety Plan - Fire:
Y ear Ended Annual
June 30 Am ortization
2024 $2,541,561
2025 2,332,244
2026 1,123,611
2027 7,451,172
Total $13,448,588
Safety Plan - Police:
Y ear Ended Annual
June 30 Am ortization
2024 $8,113,090
2025 6,862,099
2026 2,206,356
2027 9,133,272
Total $26,314,817
All Plans (Misc., Fire and Police)
Y ear Ended Amortization
June 30 Am ount
2024 $19,348,555
2025 15,515,157
2026 4,532,337
2027 27,849,500
Total $67,245,549
84 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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, 2023, total
contributions of $19,663 were made based on a
total amount of covered compensation of $524,358.
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 $149 to $151 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 em ployees 806
Inactive employees or beneficiaries currently
receiving benefit payments 712
Inactive employees entitled to but not yet
receiving benefit payments 179
Total 1,697
85 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
15. OTHER POSTEMPLOYMENT BENEFITS (Continued)
Net OPEB Liability
Actuarial Methods and Assumptions – The City’s net OPEB liability was measured as of June 30, 2022 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 Assum ptions
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry Age Norm al Cost Method
Actuarial Ass umptions :
Discount Rate 6.10%
Inflation 2.50%
Payroll G rowth 3.00%
Investm ent Rate of Return 6.10%
Mortality Rate The mortality improvement scale was updated from MacLeod Watts Scale 2018 to MacLeod Watts Scale 2022 applied generationally from 2015 Pre-Retirement Turnover Must retire from PERS on or after age 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
Global 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 determine the total OPEB liability.
86 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
15. OTHER POSTEMPLOYMENT BENEFITS (Continued)
Changes in Net OPEB Liability- The changes in the Net OPEB Liability follows:
Total OPEB Plan Fiduciary Net OPE B
Liab ility Net Position Liab ility/(Asset)
(a) (b) (a) - (b)
Balance at June 30, 2021 (Measurement Date) $87,016,620 $17,212,809 $69,803,811 Changes Recognized for the Measurement Period:
Service Cost 2,049,624 2,049,624
Interest on the total OPEB liability 5,283,927 5,283,927 Differences between ex pected and actual ex perience
Changes of assum ptions
Investment Experience (4,130,540) 4,130,540
Contributions from the employer 9,179,251 (9,179,251)
Contributions from the employee 377,606 (377,606)
Net investment income 1,192,186 (1,192,186)
Administrative expenses (5,439) 5,439
Benefit payments (4,888,972) (4,888,972)
Net changes 2,444,579 1,724,092 720,487
Balance at June 30, 2022 (Measurement Date) $89,461,199 $18,936,901 $70,524,298 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 cal
culated 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%
$81,708,903 $70,524,298 $61,219,605
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
4.80% 5.80% 6.80%
$61,939,004 $70,524,298 $81,444,076
87 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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, 2023, the City rec ognized OPEB expense of ($1,556,570). At June 30, 2023, 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 $8,450,190 Changes of assumptions 5,880,113 ($18,362,289)
Difference between Ex pected and Actual Ex perience 1,002,277 (1,995,130) Net difference between projected and actual earnings on investm ents 1,674,073
Total $17,006,653 ($20,357,419)
$8
,450,190 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, 2024. 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:
Ye a r A n n u a l
Ended June 30 Am ortization
2024 ($5,584,618)
2025 (5,298,535)
2026 (2,288,948)
2027 1,066,790
2028 304,355
Total ($11,800,956)
88 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 $10,000 - $1,000,000,000 Cyber $0 - $500,000 per occurrence $500,000 - $40,000,000 Boiler and machinery $0 - $350,000 per occurrence $10,000 - $100,000,000 Airport None $25,000 - $50,000,000
Pollution $0- $250,000 per pollution condition $0 - $10,000,000 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 Ma
nagement 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%.
89 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 2023 2022
Balance, beginning of year $7,461,479 $13,789,580 $21,251,059 $20,584,495 Current year claims and changes
in estimates 3,868,199 5,411,985 9,280,184 4,913,198
Claims paid (2,422,838) (3,612,163) (6,035,001) (4,246,634) Balance, end of year $8,906,840 $15,589,402 $24,496,242 $21,251,059 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, 2023 is $24,496,242. 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.
90 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 2023 amounted to $887,800 and are recorded as materials, supplies and services expenses. b) Payments related to the City’s long-term invest
ment in the joint powers agency, for which the
City has the ability to exercise significant infl uence 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 $9,445,110 at June 30, 2022, the latest date for which financial information is available.
The investment in East Bay Dischargers Authority is valued as of June 30 , 2022, the latest dat e
for which financial information is available.
Summary financial information as of and for the year ended June 30, 2022 (the most recent audited financial information available) for EBDA’s common use operations was as follows:
Assets
Current $4,478,870
Noncurrent 24,846,291
Total Assets 29,325,161
Deferred outflow of resources 883,223
Total $30,208,384
Liabilities $1,238,289
Deferred inflow of resources 634,764
Net Position 28,335,331
Total $30,208,384
Revenues $5,060,722
Expenses (4,226,628)
Non-operating revenues 1,036,759
Non-operating expenses (1,364,436)
Prior period adjustment (420,000)
Change in Net Position $86,417
91 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
18. COMMITMENTS AND CONTINGENCIES
Litigation
The City is a defendant in several lawsuits arisin g from its normal operations. City manageme nt is of the opinion that the potential claims against the City not covered by insurance resulting from such litigation would not materially affect the basic financial statements of the City.
Bay Area Water Supply and Conservation Agency Revenue Bonds Surcharge The City contracts with the City and County of San Francisco for the purchase of water from the Hetch Hetchy System operated by the San Franci sco Public Utilities Commission (SFPUC). The City is also a member of the Bay Area Wate
r Supply and Conservation Agency (BAW SCA)
which represents the interests of all the 24 citie s and water districts, as well as two private utilities, that purchase wholesale water from the SFPUC.
In 2009 the City entered into a new 25-year agreement with the SFPUC. One of the ways that the new agreement differs from the old is in how fac ilities constructed by the SFPUC that benefit the regional customers are treated from a rate and fi nancial perspective. Under the old agreement, facilities were built, capitalized, and added to the ra te base with a rate of return (interest), and then paid for over their useful lives through wholesale rates. Under the new agreement, the SFPUC issues revenue bonds and the debt service (whi ch also includes an interest component) is paid for through rates over the life of the bonds.
During the transition from the old to the new cont racts, one of the issues addressed was how to deal with the $370 million in assets that were still being paid for by the wholesale customers under the old agreement. The assets were transfer red to the new agreement, assigned a life with an agreed upon rate of return of 5.13%. Also negotiated was a provision to allow the wholesale customers to prepay any remaining existing asse
ts’ unpaid principal bala nce without penalty or
premium. This prepayment was executed th rough the issuance of bonds by BAWSCA which provide a better interest rate given the favorable rate environment.
BAWSCA issued Revenue Bonds in the principal amount of $335,780,000 in January 2013 to prepay the capital cost recovery payment obligat ion and fund a stabilization fund. The Bonds mature in October 2034 and are secured by surc harges to the monthly water purchase charges imposed upon the participating members. The Bonds are not a debt obligation of any member, and BAWSCA’s failure to pay its Bonds would not constitute a default by any participating member.
Should any participating member fail to pay its share, BAWSCA will rely on the stabilization fund and will pursue all legal remedies to collect the shortfall from the delinquent member. In t he
interim, other participating members may have th eir portion adjusted to insure the continued payment of the debt service surcharge.
92 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
18. COMMITMENTS AND CONTINGENCIES (Continued)
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.
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 $2,290,628 duri ng fiscal year 2023, which is included as a component of purchased water expenses in the Water Enterprise Fund. The surcharge for fiscal year 2024 is estimated to be $2,445,576.
Purchase and Sale Agreement with CalTrans
On January 1, 2016, the City entered into a pu rchase and sale agreement with the State of California and Department of Transportation related to certain real property located in the Route 238 Bypass corridor acquired and to be used for the purpose of co nstructing a new alignment for a freeway or expressway bypass to Route 238 in th e City of Hayward. In 2010, it was determined that these excess properties were no longer need ed for highway purposes and were certified as excess properties. As part of the agreement with the State and Department of Transportation, the City is authorized to purchase certain parcels of the excess real property. The City has title to four parcels as of June 30, 2023 as title was transferred by the State and County to the City, however, the City has not been required to pay for the parcel to CalTrans and therefore, the parcels are not recorded in the City’s financial statements. The fa ir market value of the parcels as of the most recent appraisal report dated July 21, 2021 is $6,220,000.
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. 93 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
19. CONDUIT DEBT WITHOUT CITY COMMITMENT (Continued)
On January 6, 2004 the City sponsored the issu ance of the second supplement of the 1984A City of Hayward Variable Rate Demand Multifam ily Housing Revenue Bonds, (Shorewood Apartment Project) which were issued in the aggregate principal amount of $33,100,000 to refinance prior bonds used to fi nance the acquisition and construc tion of a 544-unit multifamily rental housing complex. Repayments for the loan
are required to be made by the developer. The
City has no legal or moral liability with respect to the payment of this debt.
On April 1, 2005, the City sponsored the i ssuance of City of Hayward Multifamily Housi ng
Revenue Bonds (Lord Tennyson Apartments) 2005 Series A and 2005 Series A-T which were issued in the aggregate principal amount of $14,625 ,000 to finance the acquisition, rehabilitation, and development of multifamily rental housing fa cilities. The City has no legal or moral liability with respect to the payment of this debt.
On October 1, 2005, the City sp onsored the issuance of City of Hayward Multifamily Housi ng
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.
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.
On April 11, 2023, the City sp onsored the issuance of City of Hayward Airport Revenue Bonds which were issued in the aggreg ate principal amount of $5,512,000 to assist in the financing, refinancing, furnishing and equi pping of an Aircraft Storage Hangar Project at the Hayward Airport. 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.
94 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
20. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
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.
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 ca n 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, 2023 was $24,509,337 r ecorded in the Success or Agency to the Redevelopment Agency Private-Purpose Trust, consisting of rehabilitation and construction loans.
95 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
20. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
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, 2023.
School Project Cannery Park Cinem a Place Retail Attraction Total Balance at June 30, 2022 $19,259,659 $ 3,491,901 $275,624 $1,482,153 $24,509,337 Les s : Loan Payments
Balance at June 30, 2023 $19,259,659 $ 3,491,901 $275,624 $1,482,153 $24,509,337
Leases Receivable
The Successor Agency from to time to time engage s in lease arrangements allowing the right for others to use various owned land and buildings fo r the public benefit. The borrowing rate for the leases are implicit in the leas e agreements and therefore, the Successor Agency has applied the incremental borrowing rate of the Successor Agency for all leases of 3% . Leases where the Successor Agency acts as the lessor are recorded as a lease receivable offset with a deferred inflow of resources.
As of June 30, 2023, 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, 2023
Lease
Receivable
Balance at
June 30, 2023
Deferred Inflow
of Resources at
June 30, 2023
Private Purpose Trust Fund
Cinema Place Hayward, LLC 5/1/ 2007 4/30/2057 $59,957 $1,282,083 $1,273,006
96 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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
J
une 30, 2022 Additions June 30, 2023
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 4,962,560 $314,130 5,276,691 Machinery and equipment 9,575 9,575
Total accumulated depreciation 4,972,135 314,130 5,286,266 Net depreciable assets 9,173,337 (314,130) 8,859,206
Private purpose trust fund assets, net $13,603,853 ($314,130) $13,289,722 97 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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, 2023 was $6
,739,979 recorded in the Successor Agency to the Redevelopment Agency Private- Purpose Trust Fund. The loans were as follows:
Adv ances to
Priv ate Purpose Adv ances
Trust Fund From City
General Fund $2,836,442
Housing Authority Special Revenue Fund 3,876,516
Internal Service Funds 27,021
Successor Agency Private Purpose Trust Fund $6,739,979
Total $6,739,979 $6,739,979
Funds were advanced from the City to the fo rmer Redevelopment Agen cy under an Amended Repayment Agreement whereby the Agency has agreed to reimburse the City a portion of project
costs for the B Street/Watkins/Mission Garage a nd B Street Retail and Civic Center Plaza not to exceed $11,186,217.
Under the Dissolution Act, certain agreements between Cities and redevelopment agencies no longer qualify as enforceable obligations. Howe ver, with the passage of AB 1484 on June 28, 2012, upon meeting certain requirements including the issuance of a finding of completion by the State Department of Finance and approval from th e Oversight Board, this loan was restored at LAIF rates from inception. The amounts above reflect only the principal portion of the loan. As a result of the State Controller’s Office Asset Transfer Review, completed in 2014, a loan repayment made by the Successor Agency to the City’s Genera l Fund in March 2011 of $2.22 million was disallowed. Additional repayments of $1,041,075 by the Successor Agency to the City’s Water Enterprise Fund and $831,877 by the Successor Agency to the City’s Sewer Enterprise Fund were also disallowed. These bala nces are reflected in the table above. In late November 30, 2018 the California State Supreme Court granted the Petition Writ of Mandate in the City’s favor which confirms that the $2.22 million obligation due the General Fund would be recognized and repaid by the State Department of Finance. 98 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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
Typ e of Ob ligation I ssued June 30, 2022 Retirements June 30, 2023 Portion Tax Allocation Bonds,
2016 Refunding Redevelopm ent Agency
due 3/1/2036, interest at 2.0%-5.0% $35, 270,000 $24,155,000 $2,070,000 $22,085,000 $2,180,000 Add: Original Issue Premium 2,576,117 184,008 2,392,109 Total $35,270,000 $26,731,117 $2,254,008 $24,477,109 $2,180,000 At June 30, 2023, future debt service requirement for the Successor Agency were as follows:
S uccessor Agency
Year Ending June 30 Principal Interest
2024 $2,180,000 $1,154,375
2025 2,290,000 1,049,625
2026 2,405,000 939,375
2027 2,415,000 823,625
2028 2,625,000 702,125
2029 - 2033 6,195,000 1,644,125
2034 - 2036 3,975,000 298,450
Totals 22,085,000 $6,611,700
Plus unamortized premium 2,392,109
Total Long-term debt principal, net $24,477,109
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.
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.
99 CITY OF HAYWARD, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
20. REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
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 an d non-housing revenues. The Successor Agency only receives the funds necessary to fulfill its approved obligations. In fiscal year 2023, to tal tax increment calculated and available for distribution by the County Auditor-Controller was $4,563,650, and the total received by the Successor Agency was $4,051,19 3. The taxes available for di stribution covered 142% of the $3,224,375 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 am ounts, if any, to be immaterial.
21. SUBSEQUENT EVENTS
On November 28, 2023, the City issued 2023 Refunding Certificates of Participation in the amount of $37,030,000. The proceed s of the Bonds were used to re fund the 2015 Certificates of Participation. The Bonds are payable in annual installments commencing on November 1, 2024 until maturity on November 1, 2034. Interest is paid semiannually on May 1 and November 1, commencing May 1, 2024, with a rate of 5% per annum.
100
REQUIRED SUPPLEMENTARY INFORMATION
M easurement Date 6/30/2014 6/30/2015 6/30/2016
Total Pension Liab ility
Service Cost $6,288,587 $5,922,880 $6,147,333
Interest 27,661,985 28,504,068 29,369,393
Differences between ex pected and actual ex perience (3,128,990) (1,584,352) Changes of assum ptions (6,628,461)
Changes in benefits
Benefit paym ents, including refunds of em ployee contributions (19,351,565) (21,117,520) (22,169,235) Net change in total p ension liab ility 14,599,007 3,551,977 11,763,139 Total p ension liab ility - b eginning 375,357,954 389,956,961 393,508,938 Total p ension liab ility - end ing (a) $389,956,961 $393,508,938 $405,272,077 Plan fiduciary net position
Contributions - employer $7,412,951 $8,397,492 $9,973,051 Contributions - em ployee 3,116,188 3,176,411 3,159,686 Net investm ent incom e 42,388,729 6,280,326 1,454,000 Benefit paym ents, including refunds of em ployee contributions (19,351,565) (21,117,520) (22,169,235) Plan to plan resource m ovem ent 2,005 (11,393)
A
dm inistrative ex pense (311,784) (168,838) Other m iscellaneous incom e/(ex pense)
Net change in plan fiduciary net position 33,566,303 (3,573,070) (7,762,729) Plan fiduciary net position - beginning 247,040,337 280,606,640 277,033,570 Plan fiduciary net position - ending (b) $280,606,640 $277,033,570 $269,270,841 Net pension liability - ending (a)-(b) $109,350,321 $116,475,368 $136,001,236 Plan fiduciary net position as a percentage of the total pension liability 71.96% 70.40% 66.44% Covered payroll $37,254,645 $37,577,455 $37,278,957
Net pension liability as percentage of covered payroll 293.52% 309.96% 364.82% Notes to Schedule:
* F
iscal year 2015 was the 1st year of im plem entation, therefore only nine years are shown.
Source: CalPERS Accounting V aluation - G ASB 68
Benefit changes. The figures above do not include any liability im pact that m ay have resulted fro m plan changes which occurred after the June 30, 2016 valuation date. This applies for voluntary benefit changes as well as any offers of Two Y ears Additional Service Credit (a.k.a. G olden Handshakes).
Changes in assumptions. In 2017, the accounting discount rate reduced from7.65% to 7.15%. In 2016, 2018, 2019, 2020 and 2021, there were no changes. In 2022, the accounting discount rate reduced from7.15% to 6.90%. In 2015, am ounts reported reflect an adjustm ent of the discount rate from 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 Miscellaneous Plan - Agent Multiple-Em ployer Defined Pension Plan L ast 10 Y ears*
102
6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 $7,504,688 $7,869,869 $8,124,065 $8,254,476 $8,338,579 $9,264,461 30,173,942 31,188,964 32,708,864 33,774,340 34,724,511 35,732,803 444,821 2,372,377 6,313,847 (481,002) (2,023,562) 1,252,761 23,917,327 (2,819,842) 15,236,428
(22,746,836) (23,688,392) (24,796,470) (26,234,280) (27,282,114) (28,329,956) 39,293,942 14,922,976 22,350,306 15,313,534 13,757,414 33,156,497 405,272,077 444,566,019 459,488,995 481,839,301 497,152,835 510,910,249 $444,566,019 $459,488,995 $481,839,301 $497,152,835 $510,910,249 $544,066,746 $11,093,282 $10,774,004 $12,008,441 $12,993,586 $14,566,265 $16,196,634 3,799,837 4,511,187 4,682,650 5,503,016 5,540,369 6,156,612 29,788,614 24,576,008 19,998,965 15,793,925 73,248,533 (29,606,807) (22,746,836) (23,688,392) (24,796,470) (26,234,280) (27,282,114) (28,329,956) (46,705) (711)
(397,560) (453,086) (218,097) (447,310) (324,560) (243,354) (860,419) 711
21,490,632 14,858,591 11,676,200 7,608,937 65,748,493 (35,826,871) 269,270,841 290,761,473 305,620,064 317,296,264 324,905,201 390,653,694 $290,761,473 $305,620,064 $317,296,264 $324,905,201 $390,653,694 $354,826,823 $153,804,546 $153,868,931 $164,543,037 $172,247,634 $120,256,555 $189,239,923
65.40% 66.51% 65.85% 65.35% 76.46% 65.22%
$39,325,308 $43,553,412 $42,884,033 $49,210,706 $50,091,731 $53,975,164 391.11% 353.29% 383.69% 350.02% 240.07% 350.61%
103
Fiscal Y ear E nd ed June 30 2015 2016 2017
Actuarially determined contribution $8,401,478 $10,026,685 $11,092,052 Contributions in relation to the actuarially determ ined contributions 8,401,478 10,026,685 11,092,052 Contribution deficiency (ex cess) $0 $0 $0
Covered payroll $37,577,455 $37,278,957 $39,325,308
Contributions as a percentage of covered payroll 22.36% 26.90% 28.21% Notes to Schedule
Valuation date: 6/30/2013 6/30/2014 6/30/2015
Methods and assum ptions used to determ ine contribution rates:
Actuarial cost method Entry age
Amortization method 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 increas es
Investm ent rate of return
Retirement age
Mortality
* Fiscal year 2015 was the 1st year of implementation, therefore only nine years are shown.
Source: City of Hayward's general ledger and CalPERS Actuarial V aluation L ast 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 m ortality im provem ent using Scale
BB published by the Society of Actuaries for
2015 to 2018. For 2019, 2020, and 2021, pre-
retirement and post-retirement mortality rates
include 15 years of projected mortality
improvement using 90% of Scale MP-2016
published by the Society of Actuaries. For
2023, pre-retirement and post-retirement
m ortality rates include generational m ortality
improvement using 80% of Scale MP-2020
published by the Society of Actuaries.
The probabilities of Retirement are bas ed on
the 2017 CalPERS Experience Study for the
period from 1997 to 2015.
CITY OF HAYWARD
SCHEDULE OF CONTRIBUTIONS
M iscellaneous Plan - Agent M ultip le-E mp loyer Defined Pension Plan V aries by Entry Age and Service
7.50% for 2015 to 2018, 7.375% for 2019, 7.25%
for 2020, 7.00% for 2021 and 2022, and 6.80%
for 2023 net of pension plan investment
ex pense, including inflation.
2.75% for 2015 to 2019, 2.625% for 2020, 2.50%
for 2021 and 2022, and 2.30% for 2023.
104
2018 2019 2020 2021 2022 2023
$10,776,908 $12,013,423 $12,996,10 3 $14,580,046 $16,119,682 $17,251,303 10,776,908 12,013,423 12,996,103 14,580,046 16,119,682 17,251,303 $0 $0 $0 $0 $0 $0
$43,553,412 $42,884,033 $49,210,70 6 $50,091,731 $53,975,164 $56,737,788
24.74% 28.01% 26.41% 29.11% 29.86% 30.41%
6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 105
Measurement Date 6/30/2014 6/30/2015 6/30/2016
Total Pension Liability
Service Cost $4,037,733 $3,887,900 $4,145,914
Interest 17,319,964 18,049,868 19,111,623
Differences between expected and actual experience 763,164 5,499,415 C
hanges of assumptions (4,308,430)
Changes in benefits
Benefit payments, including refunds of employee contributions (12,054,664) (13,394,096) (13,979,969) Net change in total pension liability 9,303,033 4,998,406 14,776,983 Total pension liability - beginning 234,941,316 244,244,349 249,242,755 Total pension liability - ending (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 - employee 2,212,037 2,383,255 2,527,042 Net investment income 26,481,168 3,918,637 802,917 B
enefit payments, including refunds of employee contributions (12,054,664) (13,394,096) (13,979,969) Plan to plan resource movement
Administrative expense (193,742) (104,917)
Other miscellaneous income/(expense)
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 pension 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
plementation, therefore only nine years are shown.
Source: CalPERS Accounting Valuation - GASB 68
Benefit changes. The figures above do not include any liability imp act that may 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 Years Additional Service Credit (a.k.a. Golden Handshakes).
Changes in assumptions. In 2017, the accounting discount rate reduc ed from 7.65% to 7.15%. In 2016, 2018, 2019, 2020 and 2021, there were no changes. In 2022, the accounting discount rate reduced from 7.15% to 6.90%. 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 - Fire 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 6/30/2022 $5,098,972 $4,895,549 $5,286,457 $5,558,671 $5,407,873 $5,827,305 19,657,506 20,408,514 21,091,439 22,013,653 22,482,175 22,663,052 (324,662) 2,612,499 270,193 3 ,298,871 (3,440,760) (6,319,906) 16,122,983 (1,401,429) 10,219,002 (14,874,772) (15,849,714) (16,586,918) (17,242,575) (17,764,280) (18,205,377) 25,680,027 10,665,419 10,061,171 13,628,620 6,685,008 14,184,076 264,019,738 289,699,765 300,365,184 310,426,355 324,054,975 330,739,983 $289,699,765 $300,365,184 $310,426,355 $ 324,054,975 $330,739,983 $344,924,059 $6,378,762 $6,646,548 $8,015,957 $9,191,715 $10,135,787 $11,490,694 2,544,269 2,516,137 3,093,507 2,851,797 2,828,307 2,983,463 18,488,612 15,036,869 12,184,975 9,590,927 44,584,546 (18,111,315) (14,874,772) (15,849,714) (16,586,918) (17,242,575) (17,764,280) (18,205,377) (437)
(246,848) (279,683) (133,462) (272,922) (197,504) (147,824) (531,122) 437
12,290,023 7,538,598 6,574,496 4,118,942 39,586,856 (21,990,359) 167,192,077 179,482,100 187,020,698 193,595,194 197,714,136 237,300,992 $179,482,100 $187,020,698 $193,595,194 $ 197,714,136 $237,300,992 $215,310,633 $110,217,665 $113,344,486 $116,831,161 $ 126,340,839 $93,438,991 $129,613,426
61.95% 62.26% 62.36% 61.01% 71.75% 62.42%
$16,579,674 $17,977,548 $19,202,305 $18,986,921 $18,899,737 $19,620,173 664.78% 630.48% 608.42% 665.41% 494.39% 660.61%
107
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 method Entry age
Am ortization m ethod Level percentage of payroll
Rem aining am ortization period 15 Y ears as of the V aluation Date Asset valuation m ethod 15 Y ear Sm oothed Market
Inflation
Salary increases
Investm ent rate of return
Retirement age
Mortality
* F
iscal year 2015 was the 1st year of im plem entation, therefore only nine 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-Em ployer Defined Pension Plan L ast 10 Y ears*
The probabilities of mortality are bas ed on the CalPERS Ex perience Study. Pre-retirem ent and Post-retirem ent mortality rates include 20 years of projected mortality im provem ent using Scale BB published by the Society of Actuaries for 2015 to 2018. For 2019, 2020, 2021 and 2022, pre -
retirem ent and post-retirem ent m ortality rates include 15 years of projected m ortality im provem ent using 90% of Scale MP-2016 published by the Society of Actuaries. For 2023, pre-retirem ent and post-retirem ent m ortality rates include generational m ortality im provem ent using 80% of Scale MP- 2020 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, and 6.80% for 2023, net of pension plan investm ent ex pense, 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, and 2.30% for 2023.
108
2018 2019 2020 2021 2022 2023
$6,646,548 $8,015,966 $9,197,653 $10,135,787 $11,490,694 $12,364,514 6,646,548 8,015,966 9,197,653 10,135,787 11,490,694 12,364,514 $0 $0 $0 $0 $0 $0
$17,977,548 $19,202,305 $18,986,921 $18,899,737 $19,620,173 $22,375,094
36.97% 41.74% 48.44% 53.63% 58.57% 55.26%
6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 109
M
easurement Date 6/30/2014 6/30/2015 6/30/2016
Total Pension Liab ility
Service Cost $6,810,663 $6,454,659 $6,807,555
Interest 22,705,717 23,663,122 25,023,071
Differences between expected and actual experience (823,804) 4,712,282 Changes of assum ptions (5,929,992)
Changes in benefits
Benefit paym ents, including refunds of em ployee contributions (15,228,912) (16,782,338) (17,676,444) Net change in total p ension liab ility 14,287,468 6,581,647 18,866,464 Total p ension liab ility - b eginning 306,952,014 321,239,482 327,821,129 Total p ension liab ility - end ing (a) $321,239,482 $327,821,129 $346,687,593 Plan fiduciary net position
Contributions - employer $5,781,918 $7,594,532 $8,594,361 Contributions - em ployee 3,731,615 3,296,967 3,666,124 Net investment income 32,686,768 4,819,953 1,028,532 Benefit paym ents, including refunds of em ployee contributions (15,228,912) (16,782,338) (17,676,444) Net plan to plan resource m ovem ent 11,302
A
dm inistrative ex pense (241,860) (130,972)
Other m iscellaneous incom e/(ex pense)
Net change in plan fiduciary net position 26,971,389 (1,312,746) (4,507,097) Plan fiduciary net position - beginning 189,244,302 216,215,691 214,902,945 Plan fiduciary net position - ending (b) $216,215,691 $214,902,945 $210,395,848 Net 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:
* F
iscal year 2015 was the 1st year of implementation, therefore only nine 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 fromplan changes which occurred after June 30, 2016. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. G olden Handshakes).
Changes in assum p tions.In 2017, the accounting discount rate reduced from 7.65% to 7.15%. In 2016, 2018, 2019, 2020 and 2021, there were no changes. In 2022, the accounting disc ount rate reduced from 7.15% to 6.90%. In 2015, am ounts reported reflect an adjustment of the discount rate from 7.5% (net of administrative ex pense) to 7.65% (without a reduction for pension plan administrative 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-Em ployer Defined Pension Plan Last 10 Years*
110
6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 $8,055,656 $8,436,727 $7,716,531 $8,079,098 $7,685,977 $8,300,617 25,738,287 26,651,517 28,039,320 29,217,195 30,543,429 31,411,054 (3,900,767) (1,105,506) 4,860,684 2,096,406 4,592,527 (2,679,143) 21,956,739 (1,587,612) 16,532,003
(17,590,706) (19,447,095) (20,910,933) (22,208,581) (24,078,504) (24,596,971) 34,259,209 12,948,031 19,705,602 17,184,118 18,743,429 28,967,560 346,687,593 380,946,802 393,894,833 413,600,435 430,784,553 449,527,982 $380,946,802 $393,894,833 $413,600,435 $ 430,784,553 $449,527,982 $478,495,542 $10,508,222 $10,740,724 $12,243,071 $13,842,327 $14,979,477 $16,166,620 3,782,992 3,754,299 3,750,089 3,749,712 3,687,755 3,803,625 23,301,215 19,562,389 16,002,505 12,710,839 59,475,902 (24,027,912) (17,590,706) (19,447,095) (20,910,933) (22,208,581) (24,078,504) (24,596,971) (567)
(310,635) (358,539) (173,879) (358,879) (262,026) (196,916) (680,871) 567
19,
691,088 13,570,340 10,911,420 7,735,418 53,802,604 (28,851,554) 210,395,848 230,086,936 243,657,276 254,568,696 262,304,114 316,106,718 $230,086,936 $243,657,276 $254,568,696 $ 262,304,114 $316,106,718 $287,255,164 $150,859,866 $150,237,557 $159,031,739 $ 168,480,439 $133,421,264 $191,240,378
60.40% 61.86% 61.55% 60.89% 70.32% 60.03%
$22,884,077 $24,345,421 $24,912,360 $24,853,675 $24,906,152 $25,146,543 659.24% 617.11% 638.36% 677.89% 535.70% 760.50%
111
Fiscal Year Ended 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 (excess) $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 cost method
Amortization method
Remaining amortization period
Asset valuation method
Inflation
Salary increases
Investment rate of return
Retirement age
Mortality
* Fi
scal year 2015 was the 1st year of implementation, therefore only nine years are shown.
Source: City of Hayward's general ledger and CalPERS Actuarial Valuation
CITY OF HAYWARD
SCHEDULE OF CONTRIBUTIONS
Safety - Police Plan - Agent Multiple-Employer Defined Pension Plan Last 10 Years*
7.50% for 2015 to 2018, 7.15% for 2019 to 2021, 7.00% for 2022, and 6.80% for 2023, net of pension plan investment expense, including inflation.
The probabilities of Retirement are based on the CalPERS Experience Study.
The probabilities of mortality are based on the 2021 CalPERS Experience Study. Pre-retirement and Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries.
Entry age
Level percentage of payroll
14 Years as of the Valuation Date
15 Year Smoothed Market
2.30%
2.75% to 14.20% depending on Age, Service, and type of
employment
112
2018 2019 2020 2021 2022 2023
$10,740,724 $12,240,356 $13,839,941 $14,979,710 $16,160,318 $17,688,292 10,740,724 12,240,356 13,839,941 14,979,710 16,160,318 17,688,292 $0 $0 $0 $0 $0 $0
$24,345,421 $24,912,360 $24,853,675 $24,906,152 $25,146,543 $25,721,568
44.12% 49.13% 55.69% 60.14% 64.26% 68.77%
6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 113
M easurement Date 6/30/17 6/30/18 6/30/19 6/30/20 6/30/21 6/30/22 Total OPE B Liab ility
Service cost $4,646,537 $4,054,275 $4,121,478 $2,213,810 $1,773,630 $2,049,624 Interest 3,528,286 4,015,577 4,186,619 5,048,226 5,405,045 5,283,927 Changes in benefit term s
Differences between expected and actual experience 2,686,781 (2,914,546) Changes of assumptions (11,390,281) (1,014,291) (32,786,613) (10,988,323) 8,589,843 Benefit payments (4,263,071) (4,190,672) (4,344,188) (4,882,802) (4,795,404) (4,888,972) Net change in total OPE B liab ility (7,478,529) 2,864,889 (26,135,923) (8,609,089) 8,058,568 2,444,579 Total OPEB liability - beginning 118,316,704 110,838,175 113,703,064 87,567,141 78,958,052 87,016,620 Total OPEB liability - ending (a) $110,838,175 $113,703,064 $87,567,141 $78,958,052 $87,016,620 $89,461,199 Plan fiduciary net position
Contributions - employer $4,263,071 $5,190,672 $6,344,188 $7,455,802 $6,795,404 $9,179,251 Contributions - em ployee 377,793 (374,055) 368,000 377,606 Net investment income 396,755 318,308 455,417 1,012,025 3,350,575 (2,938,354) Administrative expense (2,014) (2,234) (1,348) (4,528) (4,628) (5,439) Other ex pense (5,491)
Benefit payments (4,263,071) (4,190,672) (4,344,188) (4,882,802) (4,795,404) (4,888,972) Net change in plan fiduciary net position 394,741 1,310,583 2,831,862 3,206,442 5,713,947 1,724,092 Plan fiduciary net position - beginning 3,755,234 4,149,975 5,460,558 8,292,420 11,498,862 17,212,809 Plan fiduciary net position - ending (b) $4,149,975 $5,460,558 $8,292,420 $ 11,498,862 $17,212,809 $18,936,901 Net OPEB liability - ending (a)-(b) $106,688,200 $108,242,506 $79,274,721 $67,459,190 $69,803,811 $70,524,298 Plan fiduciary net pos ition as a percentage of the total OPEB liability 3.74% 4.80% 9.47% 14.56% 19.78% 21.17% Covered-employee payroll $97,007,987 $100,785,694 $104,434,054 $105,982,182 $110,872,748 $114,198,930 Net OPEB liability as a percentage of covered-employee payroll 109.98% 107.40% 75.91% 63.65% 62.96% 61.76% Notes to sched ule:
* Fiscal year 2018 was the first year of implementation.
Source: G ASB 75 V aluation Report
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS
AGENT MULTIPLE EMPLOYER PLAN
Last 10 fiscal years*
CITY OF HAYWARD
114
Fiscal Y ear E nd ed June 30, 2018 2019 2020 2021 2022 2023 Actuarially determined contribution $8,038,027 $8,394,467 $7,004,174 $7,190,835 $7,190,483 $7,230,409 Contributions in relation to the
actuarially determined contribution 5,190,672 6,374,161 7,455,802 6,795,404 9,179,251 8,450,190 Contribution deficiency (excess) $2,847,355 $2,020,306 ($451,628) $395,431 ($1,988,768) ($1,219,781) Covered employee payroll $100,785,694 $104,434,054 $105,982,182 $110,872,748 $114,198,930 $119,264,193 Contributions as a percentage of
covered payroll 5.15% 6.10% 7.03% 6.13% 8.04% 7.09%
Notes to Schedule
Valuation Date 6/30/2017 6/30/2017 6/30/2019 6/30/2019 6/30/2021 6/30/2021 Actuari al Assum pti ons:
Discount Rate 3.56% 3.62% 6.90% 6.90% 6.10% 6.10%
Inflation 3.00% 2.75% 2.50% 2.50% 2.50% 2.50%
Payroll Growth 3.25% 3.25% 3.00% 3.00% 3.00% 3.00%
Investment Rate of Return 7.28% 6.90% 6.90% 6.90% 6.10% 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% 3.9% to 5.8% * Fiscal year 2018 was the first year of implementation.
Source: G ASB 75 V aluation
Must retire from CalPERS on or after age 65 with at least 10 years of service.
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 MULTIP LE EMP LO YER P LAN
Last 10 fiscal years*
Methods and assum ptions used to determ ine contribution rates:
115
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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, 2023
Variance with
Budgeted Amounts Adjusted Budget
Actual Amounts Positive
Adopted * Adjusted * Budgetary Basis* (Negative)
REVENUES:
Property taxes $62,669,763 $64,269,763 $68,458,487 $4,188,724 Sales taxes 66,110,300 66,110,300 66,932,441 822,141
Utility users tax 18,000,000 19,000,000 25,944,798 6,944,798 Other taxes 37,546,000 37, 546,000 34,588,602 (2,957,398) Licenses and permits 8,401, 960 8,401,960 7,959,299 (442,661) Fines and forfeitures 2,384,609 2,384,609 2,504,635 120,026 Investment income 299,880 299,880 616,954 317,074
Rental income 350,000 350,000 75 (349,925)
Intergovernmental 7,968,954 8,001,750 6,275,056 (1,726,694) Fees and charges for services 4,232,100 4,082,600 4,506,412 423,812 Other revenue 209,513 239,013 859,439 620,426
Total Revenues 208,173,079 210,685,875 218,646,198 7,960,323 EXPENDITURES:
Current:
General government 16,402, 452 19,385,249 17,482,117 1,903,132 Public safety 137,678,091 142,156,602 144,085,111 (1,928,509) Public works and transportation 4,048,704 4,600,525 3,403,009 1,197,516 Library and community services 9,891,927 10,703,022 9,889,336 813,686 Planning and building 9, 471,347 10,508,528 9,442,396 1,066,132 Maintenance services 7,916,195 11,259,442 11,548,283 (288,841) Total Expenditures 185,408, 716 198,613,368 195,850,252 2,763,116
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 22,764,363 12,072,507 22,795,946 10,723,439 OTHER FINANCING SOURCES (USES):
Transfers in 11,571,046 17, 473,418 15,850,418 (1,623,000) Transfers (out) (37,546,688) (45,378,345) (37,607,485) 7,770,860 Total Other Financing Sources (Uses) (25,975,642) (27,904, 927) (21,757,067) 6,147,860 NET CHANGE IN FUND BALANCE ($3,211,279) ($15,832, 420) 1,038,879 $16,871,299 BEGINNING FUND BALANCE 57,891,432
ENDING FUND BALANCE $58,930,311
* Includes revenue and expenditures related to the City's Measure C District Sales Tax. 118
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, 2023
Variance with
Adjusted Budget
Positive
Original Budget Adjusted Budget Actual (Negative)
REVENUES:
Investment income $28,611 $28,611
Intergovernmental $409,024 $748,781 731,760 (17,021)
Other revenue 522,219 522,219
Total Revenues 409,024 748,781 1,282,590 533,809
EXPENDITURES:
Current:
Public safety 484,409 173,803 310,606
Library and community services 51,733 511,687 168,201 343,486 Economic development 382,728 1,214,980 597,428 617,552
Total Expenditures 434,461 2,211,076 939,432 1,271,644
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES (25,437) (1,462,295) 343,158 1,805,453 OTHER FINANCING SOURCES (USES):
Transfers (out) (5,731) (6,707) (6,707)
Total Other Financing Sources (Uses) (5,731) (6,707) (6,707) NET CHANGE IN FUND BALANCE ($25,437) ($1,462,295) 336,451 $1,798,746 BEGINNING FUND BALANCE 15,449,250
ENDING FUND BALANCE $15,785,701
119
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, 2023
Variance with
Adjusted Budget
Positive
Original Budget Final Budget Actual (Negative)
REVENUES:
Investment income $240,792 $240,792
Intergovernmental $19,232,997 $19,232,997 12,509,208 (6,723,789) Total Revenues 19,232,997 19,232,997 12,750,000 (6,482,997) EXPENDITURES:
Current:
General government 5,755,000 11,969,649 4,268,073 7,701,576 Public safety 386 (386)
Public works and transportation 2,981,000 3,308,942 771,446 2,537,496 Maintenance services 450,000 1,234,275 460,095 774,180
Total Expenditures 9,186,000 16,512,866 5,500,000 11,012,866
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 10,046,997 2,720,131 7,250,000 4,529,869 OTHER FINANCING SOURCES (USES):
Transfers (out) (7,250,000) (7,250,000) (7,250,000)
Total Other Financing Sources (Uses) (7,250,000) (7,250,000) (7,250,000) NET CHANGE IN FUND BALANCE $2,796,997 ($4,529,869) $4,529,869
BEGINNING FUND BALANCE
ENDING FUND BALANCE
120
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, 2023
Variance with
Adjusted Budget
Positive
Original Budget Final Budget Actual (Negative)
REVENUES:
Investment income $80,000 $80,000 $76,971 ($3,029)
Fees and charges for services 218 218
Other revenue 120,000 120,000 (19,809) (139,809)
Total Revenues 200,000 200,000 57,380 (142,620)
EXPENDITURES:
Current:
Economic development 168,640 966,739 199,977 766,762
Total Expenditures 168,640 966,739 199,977 766,762
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES 31,360 (766,739) (142,597) (624,142) OTHER FINANCING SOURCES (USES):
Transfers (out) (10,730) (11,384) (11,384)
Total Other Financing Sources (Uses) (10,730) (11,384) (11,384) NET CHANGE IN FUND BALANCE $20,630 ($766,739) (153,981) $612,758 BEGINNING FUND BALANCE 22,678,595
ENDING FUND BALANCE $22,524,614
122
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, 2023
Variance with
Adjusted Budget
Positive
Original Budget Final Budget Actual (Negative)
REVENUES:
Other taxes $1,049,000 $1,049,000 $1,763,211 $714,211
Investment income 399,766 399,766
Intergovernmental 5,449,154 5,449,154
Other revenue 200,000 217,774 7,607,879 7,390,105
Total Revenues 1,249,000 1,266,774 15,220,010 13,953,236 EXPENDITURES:
Current:
Public works and transportation 7,685 7,685
Capital outlay $21,452,409 73,355,969 26,574,459 46,781,510 Debt service
Principal 355,029 (355,029)
Interest and fiscal charges 17,464 (17,464)
Total Expenditures 21,452,409 73,363,654 26,946,952 46,416,702
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (20,203,409) (72,096,880) (11,726,942) 60,369,938 OTHER FINANCING SOURCES (USES):
Transfers in 12,139,000 19,628,325 19,628,325
Total Other Financing Sources (Uses) 12,139,000 19,628,325 19,628,325 NET CHANGE IN FUND BALANCE ($8,064,409) ($52,468,555) 7,901,383 $60,369,938 BEGINNING FUND BALANCE 10,507,228
ENDING FUND BALANCE $18,408,611
123
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COMBINING GENERAL FUND SCHEDULES
General Measure C District
Purpose Sales Tax Total
ASSETS:
Cash, cash equivalents, and investments $50,311,949 $12,108,479 $62,420,428 Accounts receivable, net 1,586,857 1,586,857
Due from other governments 8,762,702 4,970,208 13,732,910 Due from other funds 1,838,041 1,838,041
Long-term loans to the Private Purpose Trust Fund 2,836,442 2,836,442 Deposits, parts, supplies and other 9,006 9,006
Total Assets $65,344,997 $17,078,687 $82,423,684
LIABILITIES:
Accounts payable $5,844,274 $287,417 $6,131,691
Accrued liabilities 8,627,546 158,739 8,786,285
Long-term interfund payables 2,898,197 2,898,197
Refundable deposits 5,677,200 5,677,200
Total Liabilities 23,047,217 446,156 23,493,373
FUND BALANCES:
Nonspendable 2,845,448 2,845,448
Assigned 16,632,531 16,632,531
Unassigned 39,452,332 39,452,332
Total Fund Balances 42,297,780 16,632,531 58,930,311
Total Liabilities and Fund Balances $65,344,997 $17,078,687 $82,423,684 General Fund
CITY OF HAYWARD
GENERAL FUND
COMBINING BALANCE SHEETS
JUNE 30, 2023
126
CITY OF HAYWARD
GENERAL FUND
COMBINING SCHEDULES OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
FOR THE YEAR ENDED JUNE 30, 2023
General Measure C District
Fund Sales Tax Total
REVENUES:
Property taxes $68,458,487 $68,458,487
Sales taxes 44,051,047 $22,881,394 66,932,441
Utility users tax 25,944,798 25,944,798
Other taxes 34,588,602 34,588,602
Licenses and permits 7,959,299 7,959,299
Fines and forfeitures 2,504,635 2,504,635
Investment income 463,235 153,719 616,954
Rental income 75 75
Intergovernmental 6,275,056 6,275,056
Fees and charges for services 4,506,412 4,506,412
Other revenue 859,439 859,439
Total Revenues 195,611,085 23,035,113 218,646,198
EXPENDITURES:
Current:
General government 17,482,117 17,482,117
Public safety 144,085,111 144,085,111
Public works and transportation 3,403,009 3,403,009
Library and community services 9,889,336 9,889,336
Planning and building 9,442,396 9,442,396
Maintenance services 6,374,752 5,173,531 11,548,283
Total Expenditures 190,676,721 5,173,531 195,850,252
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 4,934,364 17,861,582 22,795,946 OTHER FINANCING SOURCES (USES):
Transfers in 15,850,418 15,850,418
Transfers (out) (16,353,095) (21,254,390) (37,607,485)
Total Other Financing Sources (Uses) (502,677) (21,254,390) (21,757,067) CHANGE IN FUND BALANCES 4,431,687 (3,392,808) 1,038,879 BEGINNING FUND BALANCES 37,866,093 20,025,339 57,891,432 ENDING FUND BALANCES $42,297,780 $16,632,531 $58,930,311 General Fund
127
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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. 129
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.
Local Housing Trust Program Fund – Accounts for transactions related to the local housing trust fund program to provide matching funds to local and regional hous ing trust funds dedicated to the creation, rehabilitation, or preservation of affo rdable housing, transitional housing and emergency shelters.
Traffic Impact Fee Loan Fund – Accounts for transactions related to the collection of a traffic impact fee paid by new developments to help mitigate cumulative transportation impacts of development growth.
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.
130
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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 $2,676,615 $226,043 $244,412 $18,727,857 Accounts receivable, net
Due from other governments 733,198
Interest receivable
Loans receivable 4,866,630 148,188
Land held for resale
Total Assets $3,409,813 $5,092,673 $392,600 $18,727,857 LIABILITIES:
Accounts payable $501,222 $253,521 $874
Accrued liabilities 12,892 4,555
Due to other funds
Unearned revenue
Refundable deposits
Total Liabilities 501,222 266,413 5,429
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenue
Total Deferred Inflows of Resources
FUND BALANCES:
Restricted:
Public safet
y
Public works and transportation 2,908,591
Planning and building $18,727,857
Economic development 4,826,260 387,171
Debt service
Total Fund Balances 2,908,591 4,826,260 387,171 18,727,857 Total Liabilities, Deferred Inflows of Resources
and Fund Balances $3,409,813 $5,092,673 $392,600 $18,727,857
CITY OF HAYWARD
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
JUNE 30, 2023
132
Business
Improvement Donation Recycling
Narcotics Asset
Seizure
Park Maintenance
District
Measure B Local
Streets and Roads
$46,577 $1,015,514 $9,348,670 $588,446 $4,405,365 $2,401,773 935
5,978
74,374
80,501
$47,512 $1,015,514 $9,503,545 $588,446 $4,411,343 $2,401,773 $16,534 $25,631 $105,048 $925,056
352 19,289 164
26,870 $52,058
16,886 71,790 52,058 105,212 925,056
$936
936
536,388
9,431,755 1,476,717
46,576 998,628 4,306,131
46,576 998,628 9,431,755 536,388 4,306,131 1,476,717
$47,512 $1,015,514 $9,503,545 $588,446 $4,411,343 $2,401,773 (Continued)
SPECIAL REVENUE FUNDS
133
CITY OF HAYWARD
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
JUNE 30, 2023
SPECIAL REVENUE FUNDS
Measure B
Pedestrian
Measure B
Paratransit Measure BB Measure F
ASSETS:
Cash, cash equivalents, and investments $1,018,850 $280,927 $16,833,851 $561,713 Accounts receivable, net
Due from other governments 1,608,505 135,110
Interest receivable
Loans receivable
Land held for resale
Total Assets $1,018,850 $280,927 $18,442,356 $696,823
LIABILITIES:
Accounts payable $103,877 $150,155 $1,335,727 $600
Accrued liabilities 12,007
Due to other funds
Unearned revenue
Refundable deposits
Total Liabilities 103,877 162,162 1,335,727 600
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenue
Total Deferred Inflows of Resources
FUND BALANCES:
Restricted:
Public safety
Public works and transportation 914,973 118,765 17,106,629 696,223 Planning and building
Economic development
Debt service
Total Fund Balances 914,973 118,765 17,106,629 696,223
Total Liabilities, Deferred Inflows of Resources
and Fund Balances $1,018,850 $280,927 $18,442,356 $696,823 134
SPECIAL REVENUE FUNDS
Local Grants RRAA (SB1)
Rental Housing
Program
Affordable
Housing
Local Housing
Trust Program
Traffic Impact Fee
Loan
$23,057 $3,726,599 $143,089 $5,356,558 $673,526
469,415 $13,900
131,913 328,405
7,444,811 537,000
$154,970 $4,055,004 $612,504 $12,801,369 $1,210,526 $13,900 $29,891 $18,595
5,245 20,535 $15,188
469,415 $13,900
35,136 508,545 15,188 13,900
119,834 $4,055,004
103,959 12,786,181 $1,210,526
119,834 4,055,004 103,959 12,786,181 1,210,526
$154,970 $4,055,004 $612,504 $12,801,369 $1,210,526 $13,900 (Continued)
135
CITY OF HAYWARD
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
JUNE 30, 2023
DEBT
SERVICE
FUND
Certificates of
Participation
Route 238
Corridor
Improvement
Traffic Signal
Construction
ASSETS:
Cash, cash equivalents, and investments $7,259,953 $1,095,316 Accounts receivable, net $86,712
Due from other governments
Interest receivable
Loans receivable
Land held for resale 6,131,113
Total Assets $7,259,953 $6,217,825 $1,095,316
LIABILITIES:
Accounts payable $36,985 $258,025
Accrued liabilities
Due to other funds 1,838,041
Unearned revenue
Refundable deposits 31,885
Total Liabilities 1,906,911 258,025
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenue 86,712
Total Deferred Inflows of Resources 86,712
FUND BALANCES:
Restricted:
Public safety
Public works and transportation 4,224,202 837,291
Planning and building
Economic development
Debt service $7,259,953
Total Fund Balances 7,259,953 4,224,202 837,291
Total Liabilities, Deferred Inflows of Resources
and Fund Balances $7,259,953 $6,217,825 $1,095,316
CAPITAL PROJECTS FUNDS
136
CAPITAL
PROJECTS
FUNDS
Performance
Deposits
Total Nonmajor
Governmental
Funds
$337,918 $76,992,629
570,962
2,943,109
74,374
13,077,130
6,131,113
$337,918 $99,789,317
$3,761,741
$2,572 92,799
1,838,041
562,243
306,249 338,134
308,821 6,592,958
87,648
87,648
536,388
29,097 41,919,081
24,079,192
19,314,097
7,259,953
29,097 93,108,711
$337,918 $99,789,317
137
Special
Gasoline Tax
Community
Development
Block Grant
Program
Housing
Mortgage
Revenue Bonds
Park Dedication
Ordinance
REVENUES:
Other taxes
Special assessments
Investment income $23,538 ($322) $3,124 $1,634
Rental income
Inter
governmental 4,088,769 1,550,817
Fines and forfeitures
Fees and char
ges for services
Other revenue 191,140 91,805 141,287 1,261,575
Total Revenues 4,303,447 1,642,300 144,411 1,263,209
EXPENDITURES:
Current:
Public safety
Public works and transportation 943,982 1,258,974
Library and community services 909
Economic development 44,781 146,393
Maintenance services 133,501
Capital outlay 1,338,338
Debt service:
Principal
Interest and fiscal charges
Total Expenditures 2,415,821 1,304,664 146,393
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 1,887,626 337,636 (1,982) 1,263,209
OTHER FINANCING SOURCES (USES)
Transfers in 365,226
Transfers (out) (990,000) (11,898) (27,083)
Total Other Financing Sources (Uses) (624,774) (11,898) (27,083) NET CHANGE IN FUND BALANCES 1,262,852 325,738 (29,065) 1,263,209 BEGINNING FUND BALANCES 1,645,739 4,500,522 416,236 17,464,648 ENDING FUND BALANCES $2,908,591 $4,826,260 $387,171 $18,727,857
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, 2023
138
SPECIAL REVENUE FUNDS
Business
Improvement Donation Rec ycling
Narcotics Asset
Seizure
Park Maintenance
District
Measure B Local
Streets and Roads
$635,333
$1,547,811
$673 $9,281 55,216 $5,141 43,380 $38,921
6,534,383
175,858
473,844
673 483,125 7,224,932 180,999 1,591,191 38,921
144,895
101,654 1,030,827
1,879,698
1,092,233
5,192 4,605,160
251,741 2,910,525 1,092,233 4,605,160
673 231,384 4,314,407 180,999 498,958 (4,566,239)
29,007
(116,073)
29,007 (116,073)
673 260,391 4,198,334 180,999 498,958 (4,566,239)
45,903 738,237 5,233,421 355,389 3,807,173 6,042,956
$46,576 $998,628 $9,431,755 $536,388 $4,306,131 $1,476,717 (Continued)
139
CITY OF HAYWARD
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2023
SPECIAL REVENUE FUNDS
Measure B
Pedestrian
Measure B
Paratransit Measure BB Measure F
REVENUES:
Other taxes
Special assessments
Investment income $12,412 $11,028 $95,111 $5,697
Rental income
Inter
governmental 9,071,177 774,274
Fines and forfeitures
Fees and char
ges for services
Other revenue
Total Revenues 12,412 11,028 9,166,288 779,971
EXPENDITURES:
Current:
Public safety
Public works and transportation 1,351,421 662,894
Library and community services 1,009,938
Economic development
Maintenance services
Capital outlay 202,857 2,988,478 270,120
Debt service:
Principal
Interest and fiscal charges
Total Expenditures 202,857 1,009,938 4,339,899 933,014
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (190,445) (998,910) 4,826,389 (153,043)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers
(out) (72,429) (350,226)
Total Other Financing Sources (Uses) (72,429) (350,226) NET CHANGE IN FUND BALANCES (190,445) (1,071,339) 4,476,163 (153,043) BEGINNING FUND BALANCES 1,105,418 1,190,104 12,630,466 849,266 ENDING FUND BALANCES $914,973 $118,765 $17,106,629 $696,223 140
SPECIAL REVENUE FUNDS
Local Grants RRAA (SB1)
Rental Housing
Program
Affordable
Housing
Local Housing
Trust Program
Traffic Impact
Fee Loan
$546 $17,201 $3,393 $100,001 $537,000
591,052
441,576 3,620,573 1,210,526
15,000 6,195,318
457,122 3,637,774 594,445 6,295,319 1,747,526
411,162
1,140,792
679,872 6,499,607 537,000
411,162 1,140,792 679,872 6,499,607 537,000
45,960 2,496,982 (85,427) (204,288) 1,210,526
(16,582) (6,635)
(16,582) (6,635)
45,960 2,496,982 (102,009) (210,923) 1,210,526
73,874 1,558,022 205,968 12,997,104
$119,834 $4,055,004 $103,959 $12,786,181 $1,210,526
(Continued)
141
CITY OF HAYWARD
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2023
DEBT
SERVICE
FUND CAPITAL PROJECTS FUNDS
Certificates of
Participation
Route 238
Corridor
Improvement
Traffic Signal
Construction
REVENUES:
Other taxes
Special assessments
Investment income $59,388 $83,771 $12,052
Rental income 53,933
Inter
governmental
Fines and forfeitures
Fees and char
ges for services
Other revenue 1,439,952
Total Revenues 59,388 1,577,656 12,052
EXPENDITURES:
Current:
Public safety
Public works and transportation
Library and community services
Economic development
Maintenance services
Capital outlay 1,883,264 658,104
Debt service:
Principal 5,766,622
Interest and fiscal charges 2,358,176
Total Expenditures 8,124,798 1,883,264 658,104
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (8,065,410) (305,608) (646,052)
OTHER FINANCING SOURCES (USES)
Transfers in 8,131,003 500,000
Transfers (out)
Total Other Financing Sources (Uses) 8,131,003 500,000
NET CHANGE IN FUND BALANCES 65,593 (305,608) (146,052)
BEGINNING FUND BALANCES 7,194,360 4,529,810 983,343
ENDING FUND BALANCES $7,259,953 $4,224,202 $837,291
142
Performance
De
posits
Total Nonmajor
Governmental
Funds
$635,333
1,547,811
$3,614 1,121,800
644,985
27,292,095
175,858
9,809,921
3,614 41,227,803
556,057
6,490,544
2,890,545
7,907,653
1,225,734
11,951,513
5,766,622
2,358,176
39,146,844
3,614 2,080,959
9,025,236
(1,590,926)
7,434,310
3,614 9,515,269
25,483 83,593,442
$29,097 $93,108,711
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, 2023
Special Gasoline Tax Community Development Block Grant Program Adjusted
Budget Actual
Variance
Positive
(Negative)
Adjusted
Budget Actual
Variance
Positive
(Negative)
REVENUES:
Other taxes
Special assessments
Investment income $23,538 $23,538 ($322) ($322)
Rental income
Intergovernmental 4,088,769 4,088,769 $1,541,746 1,550,817 9,071 Fees and charges for services
Other revenue 191,140 191,140 693,458 91,805 (601,653)
Total Revenues 4,303,447 4,303,447 2,235,204 1,642,300 (592,904) EXPENDITURES:
Current:
Public safety
Public works and transportation $1,250,000 943,982 306,018 3,606,769 1,258,974 2,347,795 Library and community services 128,539 909 127,630
Economic development 44,781 (44,781)
Maintenance services 49,816 133,501 (83,685)
Capital outlay 3,717,186 1,338,338 2,378,848
Debt service
Principal
Interest and fiscal charges
Total Expenditures 5,017,002 2,415,821 2,601,181 3,735,308 1,304,664 2,430,644
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (5,017,002) 1,887,626 6,904,628 (1,500,104) 337,636 1,837,740
OTHER FINANCING SOURCES (USES)
Transfers in 548,226 365,226 (183,000)
Transfers (out) (990,000) (990,000) (11,898) (11,898)
Total Other Financing Sources (Uses) (441,774) (624,774) (183,000) (11,898) (11,898) NET CHANGE IN FUND BALANCES ($5,458,776) 1,262,852 $6,721,628 ($1,512,002) 325,738 $1,837,740 BEGINNING FUND BALANCES 1,645,739 4,500,522
ENDING FUND BALANCES $2,908,591 $4,826,260
SPECIAL REVENUE FUNDS
144
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 $3,124 ($2,376) $1,634 $1,634 $673 $673
150,000 141,287 (8,713) $2,235,906 1,261,575 (974,331)
155,500 144,411 (11,089) 2,235,906 1,263,209 (972,697) 673 673 180,583 146,393 34,190 2,638,816 2,638,816
180,583 146,393 34,190 2,638,816 2,638,816
(25,083) (1,982) 23,101 (402,910) 1,263,209 1,666,119 673 673 (27,083) (27,083)
(27,083) (27,083)
($52,166) (29,065) $23,101 ($402,910) 1,263,209 $1,666,119 673 $673 416,236 17,464,648 45,903
$387,171 $18,727,857 $46,576
(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, 2023
Adjusted
Budget Actual
Variance
Positive
(Negative)
Adjusted
Budget Actual
Variance
Positive
(Negative)
REVENUES:
Other taxes $516,270 $635,333 $119,063
Special assessments
Investment income $9,281 $9,281 4,000 55,216 51,216
Rental income
Intergovernmental 1,220,889 6,534,383 5,313,494
Fees and charges for services
Other revenue $337,825 473,844 136,019 2,500 (2,500)
Total Revenues 337,825 483,125 145,300 1,743,659 7,224,932 5,481,273 EXPENDITURES:
Current:
Public safety 424,938 144,895 280,043
Public works and transportation 456,060 101,654 354,406 2,144,095 1,030,827 1,113,268 Library and community services 4,114,832 1,879,698 2,235,134 Economic development
Maintenance services
Capital outlay 5,192 (5,192)
Debt service
Principal
Interest and fiscal charges
Total Expenditures 880,998 251,741 629,257 6,258,927 2,910,525 3,348,402
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (543,173) 231,384 774,557 (4,515,268) 4,314,407 8,829,675
OTHER FINANCING SOURCES (USES)
Transfers in 29,007 29,007
Transfers (out) (116,073) (116,073)
Total Other Financing Sources (Uses) 29,007 29,007 (116,073) (116,073) NET CHANGE IN FUND BALANCES ($514,166) 260,391 $774,557 ($4,631,341) 4,198,334 $8,829,675 BEGINNING FUND BALANCES 738,237 5,233,421
ENDING FUND BALANCES $998,628 $9,431,755
Donation Recycling
SPECIAL REVENUE FUNDS
146
Adjusted
Budget Actual
Variance
Positive
(Negative)
Adjusted
Budget Actual
Variance
Positive
(Negative)
Adjusted
Budget Actual
Variance
Positive
(Negative)
$1,553,652 $1,547,811 ($5,841)
$5,141 $5,141 43,380 43,380 $38,921 $38,921
175,858 175,858
180,999 180,999 1,553,652 1,591,191 37,539 38,921 38,921 1,869,253 1,092,233 777,020
$6,067,312 4,605,160 1,462,152
1,869,253 1,092,233 777,020 6,067,312 4,605,160 1,462,152 180,999 180,999 (315,601) 498,958 814,559 (6,067,312) (4,566,239) 1,501,073 180,999 $180,999 ($315,601) 498,958 $814,559 ($6,067,312) (4,566,239) $1,501,073 355,389 3,807,173 6,042,956
$536,388 $4,306,131 $1,476,717
(Continued)
Park Maintenance DistrictNarcotics Asset Seizure Measure B Local Streets and Roads
SPECIAL REVENUE FUNDS
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, 2023
Measure B Paratransit
Adjusted
Budget Actual
Variance
Positive
(Negative)
Adjusted
Budget Actual
Variance
Positive
(Negative)
REVENUES:
Other taxes
Special assessments
Investment income $12,412 $12,412 $11,028 $11,028
Rental income
Intergovernmental
Fees and charges for services
Other revenue
Total Revenues 12,412 12,412 11,028 11,028
EXPENDITURES:
Current:
Public safety
Public works and transportation
Library and community services $1,502,005 1,009,938 492,067 Economic development
Maintenance services
Capital outlay $989,698 202,857 786,841
Debt service
Principal
Interest and fiscal charges
Total Expenditures 989,698 202,857 786,841 1,502,005 1,009,938 492,067
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (989,698) (190,445) 799,253 (1,502,005) (998,910) 503,095
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers (out) (72,429) (72,429)
Total Other Financing Sources (Uses) (72,429) (72,429)
NET CHANGE IN FUND BALANCES ($989,698) (190,445) $799,253 ($1,574,434) (1,071,339) $503,095 BEGINNING FUND BALANCES 1,105,418 1,190,104
ENDING FUND BALANCES $914,973 $118,765
Measure B Pedestrian
SPECIAL REVENUE FUNDS
148
Measure BB
Measure F Local Grants
Adjusted
Budget Actual
Variance
Positive
(Negative)
Adjusted
Budget Actual
Variance
Positive
(Negative)
Adjusted
Budget Actual
Variance
Positive
(Negative)
$95,111 $95,111 $5,697 $5,697 $546 $546
$3,755,935 9,071,177 5,315,242 774,274 774,274 $196,865 441,576 244,711 15,000 15,000
3,755,935 9,166,288 5,410,353 779,971 779,971 196,865 457,122 260,257 647,911 411,162 236,749
3,816,992 1,351,421 2,465,571 $687,928 662,894 25,034
11,528,800 2,988,478 8,540,322 1,000,000 270,120 729,880 15,345,792 4,339,899 11,005,893 1,687,928 933,014 754,914 647,911 411,162 236,749 (11,589,857) 4,826,389 (6,763,468) (1,687,928) (153,043) 1,534,885 (451,046) 45,960 497,006 (1,100,226) (350,226) 750,000
(1,100,226) (350,226) 750,000
($12,690,083) 4,476,163 $17,166,246 ($1,687,928) (153,043) $1,534,885 ($451,046) 45,960 $497,006 12,630,466 849,266 73,874
$17,106,629 $696,223 $119,834
(Continued)
SPECIAL REVENUE FUNDS
149
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, 2023
SPECIAL REVENUE FUNDS
RRAA (SB1)
Adjusted
Budget Actual
Variance
Positive
(Negative)
Adjusted
Budget Actual
Variance
Positive
(Negative)
REVENUES:
Other taxes
Special assessments
Investment income $17,201 $17,201 $3,393 $3,393
Rental income $550,000 591,052 41,052
Intergovernmental 3,620,573 3,620,573
Fees and charges for services
Other revenue
Total Revenues 3,637,774 3,637,774 550,000 594,445 44,445 EXPENDITURES:
Current:
Public safety
Public works and transportation $1,140,792 1,140,792
Library and community services
Economic development 691,077 679,872 11,205
Maintenance services
Capital outlay 3,350,000 3,350,000
Debt Service
Principal
Interest and fiscal charges
Total Expenditures 4,490,792 1,140,792 3,350,000 691,077 679,872 11,205
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (4,490,792) 2,496,982 6,987,774 (141,077) (85,427) 55,650
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers (out) 16,582 (16,582) (33,164)
Total Other Financing Sources (Uses) 16,582 (16,582) (33,164) NET CHANGE IN FUND BALANCES ($4,490,792) 2,496,982 $6,987,774 ($124,495) (102,009) $22,486 BEGINNING FUND BALANCES 1,558,022 205,968
ENDING FUND BALANCES $4,055,004 $103,959
Rental Housing Program
150
Adjusted
Budget
Actual
Variance
Positive
(Negative)
Adjusted
Budget Actual
Variance
Positive
(Negative)
Adjusted
Budget Actual
Variance
Positive
(Negative)
$24,000 $100,001 $76,001 $537,000 $537,000
$3,994,906 1,210,526 (2,784,380)
1,000,000 6,195,318 5,195,318
1,024,000 6,295,319 5,271,319 3,994,906 1,747,526 (2,247,380) 8,853,211 6,499,607 2,353,604 3,994,906 537,000 3,457,906 8,853,211 6,499,607 2,353,604 3,994,906 537,000 3,457,906 (7,829,211) (204,288) 7,624,923 1,210,526 1,210,526
(6,635) (6,635)
(6,635) (6,635)
($7,835,846) (210,923) $7,624,923 1,210,526 $1,210,526
12,997,104
$12,786,181 $1,210,526
(Continued)
Affordable Housing Local Housing Trust Program Traffic Impact Fee Loan
SPECIAL REVENUE FUNDS
151
DEBT SERVICE FUND CAPITAL PROJECTS FUNDS
Certificates of Participation
Adjusted
Budget Actual
Variance
Positive
(Negative)
Adjusted
Budget Actual
Variance
Positive
(Negative)
REVENUES:
Other taxes
Special assessments
Investment income $3,000 $59,388 $56,388 $83,771 $83,771 Rental income 53,933 53,933
Intergovernmental
Fees and charges for services
Other revenue 1,439,952 1,439,952
Total Revenues 3,000 59,388 56,388 1,577,656 1,577,656
EXPENDITURES:
Current:
Public safety
Public works and transportation
Library and community services
Economic development
Maintenance services
Capital outlay $25,823,583 1,883,264 23,940,319
Debt Service
Principal 5,766,623
5,766,622 1
Interest and fiscal charges 2,364,680 2,358,176 6,504
Total Expenditures 8,131,303 8,124,798 6,505 25,823,583 1,883,264 23,940,319
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (8,128,303) (8,065,410) 62,893 (25,823,583) (305,608) 25,517,975
OTHER FINANCING SOURCES (USES)
Transfers in 8,136,340 8,131,003 (5,337)
Transfers (out)
Total Other Financing Sources (Uses) 8,136,340 8,131,003 (5,337) NET CHANGE IN FUND BALANCES $8,037 65,593 $57,556 ($25,823,583) (305,608) $25,517,975 BEGINNING FUND BALANCES 7,194,360 4,529,810
ENDING FUND BALANCES $7,259,953 $4,224,202
BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
CITY OF HAYWARD
BUDGETED NON-MAJOR FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
Route 238 Corridor Improvement
152
CAPITAL PROJECTS FUNDS
Traffic Signal Construction
Adjusted
Budget Actual
Variance
Positive
(Negative)
$12,052 $12,052
12,052 12,052
$2,107,492 658,104 1,449,388
2,107,492 658,104 1,449,388
(2,107,492) (646,052) 1,461,440
500,000 500,000
500,000 500,000
($1,607,492) (146,052) $1,461,440
983,343
$837,291
153
This Page Left Intentionally Blank
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.
155
CITY OF HAYWARD
NONMAJOR ENTERPRISE FUNDS
COMBINING STATEMENTS OF NET POSITION
JUNE 30, 2023
Stormwater Recycling Totals
Current Assets:
Cash and investments $6,763,029 $6,763,029
Accounts receivable, net 1,685,399 $46,390 1,731,789
Due from other governments 10,656 10,656
Total Current Assets 8,459,084 46,390 8,505,474
Noncurrent Assets:
Capital assets
Depreciable capital assets, net 254 254
Total Noncurrent Assets 254 254
Total Assets 8,459,338 46,390 8,505,728
DEFERRED OUTFLOWS OF RESOURCES
Related to pensions 583,085 36,160 619,245
Related to OPEB 220,124 13,171 233,295
Total Deferred Outflows of Resources 803,209 49,331 852,540 LIABILITIES:
Current Liabilities:
Accounts payable 21,643 1,920 23,563
Accrued liabilities 79,763 4,790 84,553
Due to other funds 232,283 232,283
Compensated absences, due within one year 86,609 86,609 Total Current Liabilities 188,015 238,993 427,008
Noncurrent Liabilities:
Compensated absences, due in more than one year 26,583 26,583 Net pension liabilities, due in more than one year 2,441,197 151,391 2,592,588 Net OPEB liabilities, due in more than one year 912,826 54,618 967,444 Total Noncurrent Liabilities 3,380,606 206,009 3,586,615 Total Liabilities 3,568,621 445,002 4,013,623
DEFERRED INFLOWS OF RESOURCES
Related to pensions 6,024 374 6,398
Related to OPEB 263,495 15,766 279,261
Total Deferred Inflows of Resources 269,519 16,140 285,659 NET POSITION:
Net investments in capital assets 254 254
Unrestricted 5,424,153 (365,421) 5,058,732
Total Net Position $5,424,407 ($365,421) $5,058,986
156
CITY OF HAYWARD
NONMAJOR ENTERPRISE FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED JUNE 30, 2023
Stormwater Recycling Total
OPERATING REVENUES:
Charges for services $2,840,995 $449,850 $3,290,845
Miscellaneous 14,614 14,614
Total Operating Revenues 2,855,609 449,850 3,305,459
OPERATING EXPENSES:
Salaries and related expenses 1,739,384 (26,175) 1,713,209 Materials, supplies and services 840,401 25,488 865,889 Repairs and maintenance 20,883 20,883
Depreciation 164 164
Total Operating Expenses 2,600,832 (687) 2,600,145
Operating Income (Loss) 254,777 450,537 705,314
NONOPERATING REVENUES:
Net investment income 74,418 (72) 74,346
Net Nonoperating Revenues 74,418 (72) 74,346
Income (Loss) Before Contributions and Transfers 329,195 450,465 779,660
TRANSFERS
Transfers in 610,000 610,000
Transfers (out) (440,645) (797,925) (1,238,570)
Net Transfers (440,645) (187,925) (628,570)
CHANGE IN NET POSITION (111,450) 262,540 151,090
BEGINNING NET POSITION 5,535,857 (627,961) 4,907,896
ENDING NET POSITION $5,424,407 ($365,421) $5,058,986
157
NONMAJOR ENTERPRISE FUNDS
COMBINING STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2023
Stormwater Recycling Total
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $2,932,896 $449,850 $3,382,746
Payments to suppliers (854,892) (23,356) (878,248)
Payments to employees (2,180,518) (140,967) (2,321,485) Net Cash Flows From Operating Activities (102,514) 285,527 183,013
CASH FLOWS FROM NONCAPITAL AND
RELATED FINANCING ACTIVITIES:
Interfund receipts (97,530) (97,530)
Transfers in 610,000 610,000
Transfers (out) (440,645) (797,925) (1,238,570)
Net Cash Flows From Noncapital and
Related Financing Activities (440,645) (285,455) (726,100) CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income 74,418 (72) 74,346
Net Cash Flows From Investing Activities 74,418 (72) 74,346 NET CASH FLOWS (468,741) (468,741)
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD 7,231,770 7,231,770 CASH AND EQUIVALENTS AT END OF PERIOD $6,763,029 $6,763,029
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED BY OPERATING ACTIVITIES:
Operating income (loss) $254,777 $450,537 $705,314
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation 164 164
Change in assets and liabilities:
Receivables, net 77,382 (18,000) 59,382
Due from other governments (95) (95)
Accounts payable and other accrued expenses 6,392 2,132 8,524 Due to retirement system (186,869) (86,810) (273,679)
Due to OPEB (255,099) (62,332) (317,431)
Compensated absences 834 834
Net Cash Flows From Operating Activities ($102,514) $285,527 $183,013 158
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.
159
Workers'
Compensation
Insurance* General Liability
Facilities
Management
ASSETS:
Current Assets:
Cash and investments $32,527,194 $3,648,239 $1,747,594
Accounts receivable, net 220,615 1,694 10,242
Deposits, parts, supplies and other 208,738
Due from other governments
Total Current Assets 32,956,547 3,649,933 1,757,836
Noncurrent Assets:
Long-term loans to the Private Purpose Trust Fund 27,021 Land 372,748
Construction in progress 454,638
Depreciable capital assets, net 2,786,170
Total Noncurrent Assets 27,021 3,613,556
Total Assets 32,956,547 3,676,954 5,371,392
DEFERRED OUTFLOWS OF RESOURCES:
Related to pensions 221,482 162,722 524,325
Related to OPEB 80,298 61,619 198,051
Total Deferred Outflows of Resources 301,780 224,341 722,376 LIABILITIES:
Current Liabilities:
Accounts payable 61,757 98,829 534,971
Accrued interest
Accrued liabilities* 15,631,935 8,945,816 81,349
Unearned revenue 3,800 9,107
Refundable deposits 9,237
Compensated absences, due within one year 35,505 32,114 118,362 Long-term debt, due within one year
Subscription liabilities, due within one year
Total Current Liabilities 15,732,997 9,076,759 753,026
Noncurrent Liabilities:
Compensated absences, due in more than one year 8,224 7,439 27,418 Net pension liabilities, due in more than one year 927,275 681,263 2,195,183 Net OPEB liabilities, due in more than one year 332,987 255,524 821,292 Long-term debt, due in more than one year
Subscription liabilities, due in more than one year
Total Noncurrent Liabilities 1,268,486 944,226 3,043,893 Total Liabilities 17,001,483 10,020,985 3,796,919
DEFERRED INFLOWS OF RESOURCES:
Related to pensions 2,289 1,681 5,417
Related to OPEB 96,120 73,759 237,072
Total Deferred Inflows of Resources 98,409 75,440 242,489 NET POSITION:
Net investments in capital assets 3,613,556
Unrestricted 16,158,435 (6,195,130) (1,559,196)
Total Net Positio
n $16,158,435 ($6,195,130) $2,054,360
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, 2023
160
Fleet Management
Technology Services Employee Benefits Total
$9,315,389 $5,612,839 $4,790,305 $57,641,560
143,516 89,230 465,297
198 208,936
82,471 82,471
9,541,376 5,702,267 4,790,305 58,398,264
27,021
372,748
44,341 12,921 511,900
14,779,397 3,802,000 21,367,567
14,823,738 3,814,921 22,279,236
24,365,114 9,517,188 4,790,305 80,677,500
619,246 976,328 2,504,103
294,873 367,159 1,002,000
914,119 1,343,487 3,506,103
560,265 528,921 7,273 1,792,016
2,023 5,200 7,223
82,220 163,462 24,904,782
7,071 32,442 52,420
9,237
90,462 308,894 585,337
234,365 234,365
170,025 170,025
976,406 1,208,944 7,273 27,755,405
20,955 71,553 135,589
2,592,585 4,087,587 10,483,893
1,222,800 1,522,560 4,155,163
144,423 144,423
198,909 198,909
3,980,763 5,880,609 15,117,977
4,957,169 7,089,553 7,273 42,873,382
6,398 10,084 25,869
352,971 439,500 1,199,422
359,369 449,584 1,225,291
14,444,950 3,445,987 21,504,493
5,517,745 (124,449) 4,783,032 18,580,437
$19,962,695 $3,321,538 $4,783,032 $40,084,930
161
CITY OF HAYWARD
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2023
Workers'
Compensation
Insurance General Liability
Facilities
Management
OPERATING REVENUES
Charges for services $10,907,397 $4,829,578
Other $109,337 211,371
Total Operating Revenues 10,907,397 109,337 5,040,949
OPERATING EXPENSES
Salaries and related expenses 780,597 769,713 1,265,445 Materials, supplies and services 684,490 6,229,753 2,003,381 Repairs and maintenance 1,457,764
Self-funded insurance expense 5,411,985 2,422,838
Depreciation 120,449
Total Operating Expenses 6,877,072 9,422,304 4,847,039
Operating Income (Loss) 4,030,325 (9,312,967) 193,910
NONOPERATING REVENUES (EXPENSES)
Investment income 319,593 35,231 17,899
Interest (expense)
(Loss) on disposal of capital assets
Total Nonoperating Revenues (Expenses) 319,593 35,231 17,899 Income (Loss) Before Transfers 4,349,918 (9,277,736) 211,809
CONTRIBUTIONS AND TRANSFERS
Transfers in 7,379,962 980,467
Transfers (out) (7,102,583) (15,613) (111,252)
Net Contributions and Transfers (7,102,583) 7,364,349 869,215 CHANGE IN NET POSITION (2,752,665) (1,913,387) 1,081,024 BEGINNING NET POSITION (DEFICIT) 18,911,100 (4,281,743) 973,336 ENDING NET POSITION (DEFICIT) $16,158,435 ($6,195,130) $2,054,360 162
Fleet Management
Technology Services Employee Benefits Total
$8,041,629 $7,649,136 $3,647,671 $35,075,411
878,805 5,464 1,204,977
8,041,629 8,527,941 3,653,135 36,280,388
2,093,522 4,179,846 9,089,123
1,151,586 3,463,303 749,648 14,282,161
1,547,365 1,893,373 4,898,502
888 6,202,737 14,038,448
2,481,781 613,142 3,215,372
7,274,254 10,150,552 6,952,385 45,523,606
767,375 (1,622,611) (3,299,250) (9,243,218)
107,523 219,307 45,498 745,051
(14,660) (14,660)
(258,014) (19,551) (277,565)
(165,151) 199,756 45,498 452,826
602,224 (1,422,855) (3,253,752) (8,790,392)
908,719 1,177,260 3,545,659 13,992,067
(174,324) (225,516) (7,629,288)
734,395 951,744 3,545,659 6,362,779
1,336,619 (471,111) 291,907 (2,427,613)
18,626,076 3,792,649 4,491,125 42,512,543
$19,962,695 $3,321,538 $4,783,032 $40,084,930
163
CITY OF HAYWARD
INTERNAL SERVICE FUNDS
COMBINING STATEMENTS OF CASH FLOW
FOR THE YEAR ENDED JUNE 30, 2023
Workers'
Compensation General Facilities
Insurance Liability Management
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $10,867,254 $109,337 $5,061,620 Payments to suppliers (4,258,020) (7,958,883) (3,385,499) Payments to employees (849,344) (903,576) (2,090,384)
Cash Flows from Operating Activities 5,759,890 (8,753,122) (414,263)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in 7,379,962 980,467
Transfers out (7,102,583) (15,613) (111,252)
Cash Flows from Noncapital Financing Activities (7,102,583) 7,364,349 869,215
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition of capital assets (524,638)
Principal payments on capital debt
Interest paid on capital debt
Cash Flows from Capital and Related
Financing Activities (524,638)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income 319,593 35,231 17,899
Cash Flows from Investing Activities 319,593 35,231 17,899 Net increase (decrease) in cash and cash equivalents (1,023,100) (1,353,542) (51,787) Cash and cash equivalents at beginning of period 33,550,294 5,001,781 1,799,381 Cash and cash equivalents at end of period $32,527,194 $3,648,239 $1,747,594 Reconciliation of operating income (loss) to net cash provided by operating activities:
Operating income (loss) $4,030,325 ($9,312,967) $193,910 Adjustments to reconcile operating income to net cash provided by operating activities:
Depreciation 120,449
Change in assets and liabilities:
Receivables, net (31,405) 12,471
Deposits, parts, supplies and other (8,738)
Due from other governments
Accounts payable and other accrued expenses 1,838,455 693,708 75,646 Due to retirement system (10,319) (53,282) (440,147)
Due to OPEB (75,469) (71,040) (389,619)
Compensated absences 17,041 (9,541) 4,827
Unearned revenue 8,200
Cash Flows from Operating Activities $5,759,890 ($8,753,122) ($414,263) NON-CASH TRANSACTIONS:
Retirement of capital assets
164
Fleet Technology Employee
Management Services Benefits Total
$8,168,406 $8,533,189 $3,653,135 $36,392,941
(2,659,844) (5,428,188) (6,952,385) (30,642,819)
(1,923,924) (4,306,084) (10,073,312)
3,584,638 (1,201,083) (3,299,250) (4,323,190)
908,719 1,177,260 3,545,659 13,992,067
(174,324) (225,516) (7,629,288)
734,395 951,744 3,545,659 6,362,779
(1,870,749) (156,347) (2,551,734)
(227,551) (171,976) (399,527)
(16,268) (16,268)
(2,114,568) (328,323) (2,967,529)
107,523 224,507 45,498 750,251
107,523 224,507 45,498 750,251
2,311,988 (353,155) 291,907 (177,689)
7,003,401 5,965,994 4,498,398 57,819,249
$9,315,389 $5,612,839 $4,790,305 $57,641,560
$767,375 ($1,622,611) ($3,299,250) ($9,243,218)
2,481,781 613,142 3,215,372
127,839 (14,578) 94,327
76,855 (198) 67,919
(77,917) (77,917)
39,107 (70,624) 2,576,292
31,958 74,021 (397,769)
130,564 (204,806) (610,370)
7,076 4,547 23,950
20,024 28,224
$3,584,638 ($1,201,083) ($3,299,250) ($4,323,190)
($258,014) ($19,551) ($277,565)
165
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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 Co alition for Youth, the Hayward Friends of the Library Fund, the Edward Byrne Grant and the Cannabis Community Fund. 167
CUSTODIAL FUNDS
COMBINING STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2023
Local South
Hayward
Improvement BART Parking Other Custodial
Districts Fund District JPA Fund Funds Total
ASSETS:
Cash and investments $3,816,790 $1,036,425 $210,692 $5,063,907 Cash and investments with fiscal agents 363,434 363,434 Accounts receivable, net 3,053 844 3,897
Due from other governments 57,796 1,541 59,337
Deposits, parts, supplies and other 201,524 201,524
Total Assets 4,442,597 1,037,269 212,233 5,692,099
CURRENT LIABILITIES:
Accounts payable and accrued liabilities 31 2,846 152,048 154,925 Deferred revenue 54,987 844 55,831
Refundable deposits 213,128 11,393 224,521
Total Liabilities 268,146 3,690 163,441 435,277
NET POSITION
Restricted for:
Organizations and other governments 1,033,579 48,792 1,082,371 Bondholders 4,174,451 4,174,451
Total Net Position $4,174,451 $1,033,579 $48,792 $5,256,822 Custodial Funds
CITY OF HAYWARD
168
Local South Hayward
Improvement BART Parking Other Custodial
Districts Fund District JPA Fund Funds Total
ADDITIONS
Property tax $1,097,551 $1,097,551
Special assessment $178,364 178,364
Other revenue $1,163,504 (14,262) 1,149,242
Investment income 50,300 12,305 267 62,872
Total additions 1,147,851 1,175,809 164,369 2,488,029
DEDUCTIONS
Maintenance services 495,034 11,769 16,509 523,312
Contractual services 992,171 296,833 1,289,004
Payments to bondholders 376,712 376,712
Interest and fiscal charges 186,355 186,355
Total deductions 1,058,101 1,003,940 313,342 2,375,383
Net change in position 89,750 171,869 (148,973) 112,646 Net position - beginning 4,084,701 861,710 197,765 5,144,176 Net position - ending $4,174,451 $1,033,579 $48,792 $5,256,822 Custodial Funds
CITY OF HAYWARD
COMBINING STATEMENT OF CHANGES IN CUSTODIAL FUND NET POSITION FOR THE YEAR ENDED JUNE 30, 2023
169
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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.
173
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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. 2014 2015* 2016 2017 2018 2019 2020 2021 2022 2023
Governmental activities
Net investment in capital assets $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 $408,626,627 Restricted 31,382,199 33,021,745 68,045,952 68,431,025 37, 795,705 41,119,395 94,077,986 117,664,651 121,721,287 131,419,026 Unrestricted 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) ( 346,983,170) Total governmental activities net position $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 $193,062,483 Business-type activities
Net investment in capital assets $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 $147,996,679 Restricted 284,001221
Unrestricted 143,368,162 140,262,979 156,403,925 160,313,212 148, 088,671 172,060,648 200,188,102 223,235,836 234,270,711 243,856,942 Total business-type activities net position $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 $391,853,622 Primary government
Net investment in capital assets $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 $556,623,306 Restricted 31,382,199 33,021,745 68,045,952 68,431,025 37, 795,705 41,119,395 94,361,987 117,664,653 121,721,289 131,419,027 Unrestricted 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) ( 103,126,228) Total primary government net position $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 $584,916,105
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
2014 2015* 2016 2017 2018 2019 2020 2021 2022 2023
Thousands
Net of Related Debt Restricted Unrestricted
Source: City of Hayward Comprehensive Annual Financial Report 175
2014 2015 2016 2017 2018
Expenses
Governmental Activities:
General Government $11,989,512 $16,245,827 $14,192,819 $16,158,933 $36,743,529 Public Safety 102,494,680 106,541,527 118,423,530 128,069,028 136,621,829 Public Works and Transportation 8,851,489 12,295,579 14,414,107 25,599,837 24,077,319 Library and Community Services 8,073,175 5,150,554 9,047,644 7,056,242 10,673,935 Economic Development 1,432,514 835,342 1,762,937 152,175 1,480,505 Planning and Building 6,293,037 6,831,521 7,281,726 8,628,739 11,093,298 Maintenance Services 4,790,594 5,798,009 6,156,886 8,288,824 11,482,643 Community Development
Culture and Leisure
Nondepartmental
Interest on Long Term Debt 1,131,490 1,400,778 1,490,140 3,078,848 3,238,555 Total Governmental Activities Expenses 145,056,491 155,099,137 172,769,788 197,032,626 235,411,613 Business-Type Activities:
Sewer 17,443,979 19,967,350 23,757,316 22,755,149 19,762,825 Water 38,252,368 36,953,171 38,253,454 46,225,355 52,084,024 Airport 3,443,655 3,489,917 3,976,602 6,348,333 4,236,680 Centennial Hall Maintenance and Operation
Stormwater 2,419,567 2,373,574 3,042,678 2,450,088 2,817,649 Recycling
Total Business-Type Activities Expenses 61,559,569 62,784,012 69,030,050 77,778,925 78,901,178 Total Primary Government Expenses $206,616,060 $217,883,149 $241,799,838 $274,811,551 $314,312,791 Program Revenues
Governmental Activities:
Charges for Services:
General Government $3,348,209 $3,404,484 $3,513,507 $2,627,359 $3,920,063 Public Safety 3,332,950 3,311,997 3,585,912 4,638,881 4,859,695 Public Works and Transportation 4,121,654 4,966,061 5,620,367 7,009,479 6,019,771 Library and Community Services 85,256 116,787 1,312,128 2,537,062 317,596 Economic Development 2,749,344 1,292,172
Planning and Building 5,026,469 4,536,430 6,060,654 6,926,489 6,294,675 Maintenance Services 1,243,660 1,504,197 1,088,664 1,488,851 1,555,141 Community Development
Culture and Leisure
Nondepartmental
Operating Grants and Contributions 7,634,799 10,587,001 13,611,989 11,984,727 10,626,753 Capital Grants and Contributions 9,066,354 5,807,599 31,255,350 1,463,593 2,472,715 Total Government Activities Program Revenues 36,608,695 35,526,728 66,048,571 38,676,441 36,066,409
CITY OF HAYWARD
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
* Due to City of Hayward Departmental reorganization, Community Development, and Culture and Leisure Departments no longer exist.
Source: City of Hayward Comprehensive Annual Financial Report 176
2019 2020 2021 2022 2023
$26,842,761 $30,267,967 $24,801,183 $19,288,029 $23,138,347 130,098,500 128,620,640 139,350,883 120,120,829 166,217,907 26,136,150 22,129,650 26,493,672 25,616,470 24,981,972
10,026,345 10,983,659 11,444,270 12,359,104 14,645,388
2,177,009 2,565,850 2,981,340 6,672,124 8,801,341
10,688,978 10,662,520 10,430,293 10,485,538 10,475,502
11,993,462 12,156,273 12,442,998 12,539,476 14,112,028
2,863,705 2,784,563 2,551,130 2,320,830 2,057,051
220,826,910 220,171,122 230,495,769 209,402,400 264,429,536 22,065,651 20,147,930 21,928,468 23,143,122 28,307,273
46,827,858 47,714,898 49,135,479 48,798,451 52,457,801
4,045,984 3,755,558 3,428,349 4,299,086 4,637,977
2,793,121 2,784,429 2,727,484 2,658,755 2,600,832
16,514 283,369 240,200 (687)
75,732,614 74,419,329 77,503,149 79,139,614 88,003,196
$296,559,524 $294,590,451 $307,998,918 $288,542,014 $352,432,732 $3,328,124 $4,220,061 $2,491,348 $2,237,533 $2,239,179
4,837,363 4,240,808 3,537,739 2,469,328 3,610,524
6,061,761 4,894,838 5,505,441 5,909,251 5,257,260
3,101,839 885,787 3,919,571 2,341,288 1,245,785
544,108 520,189 2,653,271 6,786,370
7,052,017 5,479,966 5,751,306 6,237,845 7,262,132
1,652,433 1,489,507 1,682,246 2,120,249 1,809,879
14,868,015 14,757,617 29,517,552 34,655,418 35,141,869
4,831,794 5,780,882 5,395,405 3,594,521 12,797,724
45,733,346 42,293,574 58,320,797 62,218,704 76,150,722
177
2014 2015 2016 2017 2018
Business-Type Activities:
Charges for Services:
Sewer 25,527,904 28,389,311 33,557,099 27,000,318 26,374,872 Water 47,045,822 44,704,910 46,264,199 53,565,672 59,385,204 Airport 3,365,514 2,995,362 3,239,400 4,161,002 3,426,086 Centennial Hall Maintenance & Operation
Stormwater 2,777,228 2,832,703 2,894,801 3,066,075 3,165,846 Recycling
Operating Grants and Contributions 1,162,390
Capital Grants and Contributions
Total Business-Type Activities Program Revenue 78,716,468 78,922,286 85,955,499 88,955,457 92,352,008 Total Primary Government Program Revenues $115,325,163 $114,449,014 $152,004,070 $127,631,898 $128,418,417 Net (Expense)/Revenue
Governmental Activities ($108,447,796) ($119,572,409) ($106,721,218) ($158,356,185) ($199,345,204) Business-Type Activities 17,156,899 16,138,274 16,925,449 11,176,532 13,450,830 Total Primary Government Net Expense ($91,290,897) ($103,434,135) ($89,795,769) ($147,179,653) ($185,894,374) Total Primary Government Net Expense
from prior page ($91,290,897) ($103,434,135) ($89,795,769) ($147,179,653) ($185,894,374) General Revenues and Other Changes in Net Position
Governmental Activities:
Taxes:
Property Taxes $39,456,863 $42,740,159 $44,750,688 $48,768,731 $52,136,552 Incremental Property Tax
Special Assessments
Sales Taxes 31,019,079 39,148,631 46,495,377 48,848,674 48,550,524 Utility Users Tax 15,761,544 15,680,721 22,040,616 20,753,813 17,487,828 Real Property Transfer Tax 4,878,857 5,710,272 7,849,464 8,349,727 9,168,329 Franchise Tax 9,488,631 10,127,647 10,139,140 9,646,261 9,647,904 Business Tax 2,649,279 2,634,539 2,603,305 3,664,550 4,550,835 Excise Tax 1,694,229 2,142,691 3,782,330 2,226,200 2,261,598 Other Taxes 6,748,616 6,314,878 5,774,001 5,607,637 6,924,304 Motor Vehicle in-lieu, Unrestricted 64,954 62,743 61,688 71,223 84,769 Investment Earnings 424,910 349,196 523,123 1,470,868 1,253,635 Gain (Loss) on land held for resale
Gain (Loss) on Sale of Capital Assets (352,880) 882,491 121,761 49,910 (Loss) from disposal of capital assets
Miscellaneous 3,473,568 2,996,956 5,505,290 5,130,121 5,514,057 Transfers (refer to CAFR Footnote 4) 2,458,989 2,618,309 2,801,309 2,861,623 2,621,785 Transfers ( Note 5)
Extraordinary Item (refer to CAFR Footnote 19)
Total Governmental Activities General Revenues
and Transfers 118,119,519 130,173,862 153,208,822 157,521,189 160,252,030 Business-Type Activities:
Investment Earnings 650,066 533,521 1,019,170 1,920,919 925,665 (Loss) from disposal of capital assets 135,712
Loss on equity investment
Miscellaneous
Transfers ( Note 5) (2,458,989) (2,618,309) (2,801,309) (2,861,623) (2,621,785) Total Business-Type Activities General Revenues
and Transfers (1,808,923) (2,084,788) (1,782,139) (940,704) (1,560,408) Total Primary Government General Revenues
and Transfers $116,310,596 $128,089,074 $151,426,683 $156,580,485 $158,691,622 Change in Net Position
Governmental Activities $9,671,723 $10,601,453 $46,487,604 ($834,996) ($39,093,174) Business-Type Activities 15,347,976 14,053,486 15,143,310 10,235,828 11,890,422 Total Primary Governmen
t $25,019,699 $24,654,939 $61,630,914 $9,400,832 ($27,202,752) Last Ten Fiscal Years
(Accrual Basis of Accounting)
CITY OF HAYWARD
Changes in Net Position
(continued)
* Due to City of Hayward Departmental reorganization, Community Development, and Culture and Leisure Departments no longer exist.
Source: City of Hayward Comprehensive Annual Financial Report 178
2019 2020 2021 2022 2023
37,064,893 30,078,797 30,144,384 31,457,157 35,253,101
61,614,956 61,951,757 61,842,042 61,480,757 58,569,056
3,611,746 3,616,344 3,610,821 3,900,365 3,906,588
3,328,818 5,019,351 3,633,200 3,618,896 2,855,609
42,546 104,027 449,850
119,683
105,620,413 100,785,932 99,272,993 100,561,202 101,034,204 $151,353,759 $143,079,506 $157,593,790 $162,779,906 $177,184,926 ($175,093,564) ($177,877,548) ($172,174,972) ($147,183,696) ($188,278,814) 29,887,799 26,366,603 21,769,844 21,421,588 13,031,008
($145,205,765) ($151,510,945) ($150,405,128) ($125,762,108) ($175,247,806) ($145,205,765) ($151,510,945) ($150,405,128) ($125,762,108) ($175,247,806) $55,970,615 $58,939,316 $62,227,460 $64,950,195 $70,287,589 52,917,415 56,566,457 58,652,032 64,666,358 66,932,441
16,935,327 16,065,943 17,267,592 17,308,117 25,944,798
12,256,155 12,150,286 17,120,032 21,226,290 12,356,957
9,730,173 10,581,960 10,624,234 10,515,952 11,906,945
4,415,292 4,057,795 4,365,441 3,996,798 4,098,698
2,329,766 2,383,998 2,070,754 1,958,345 2,205,810
8,637,556 8,505,009 8,497,353 9,879,685 11,064,218
77,775 126,184 117,578 182,633 168,068
3,277,620 3,272,624 1,124,743 (3,912,851) 3,613,671
10,982,198 3,390,000
82,854 37,265
(277,565)
7,837,732 15,167,508 18,633,107 9,449,880 5,096,781
3,665,266 3,054,013 3,185,444 4,112,715
4,400,256
189,032,890 190,871,093 207,358,624 204,371,382 217,798,667 4,305,963 5,088,464 1,081,381 (4,862,077) 3,171,037
(111,379) (965,799)
(3,665,266) (3,054,013) (3,185,444) (4,112,715) (4,400,256) 529,318 2,034,451 (2,104,063) (9,940,591) (1,229,219)
$189,562,208 $192,905,544 $205,254,561 $194,430,791 $216,569,448 $13,939,326 $12,993,545 $35,183,652 $57,187,686 $29,519,853 30,417,117 28,401,054 19,665,781 11,480,997 11,801,789
$44,356,443 $41,394,599 $54,849,433 $68,668,683 $41,321,642 179
2014 2015 2016* 2017* 2018* 2019* 2020* 2021* 2022* 2023* General Fund
Nonspendable $9,255,154 $9,284,281 $8,474,463 $7,657,001 $6,880,088 $6,067,818 $5,242,902 $4,442,423 $3,641,156 $2,845,448 Restricted
Assigned 459,100 8,150,187 13,485,813 10,276,759 17,794,142 13,959,459 22,092,043 30,317,921 20,025,339 16,632,531 Unassigned 25,052,543 22,134,362 22,098,817 21,767,997 25,248,062 30,554,839 25,348,230 31,431,063 34,224,937 39,452,332 Total General Fund (a) $34,766,797 $39,568,830 $44,059, 093 $39,701,757 $49,922,292 $50,582,116 $52,683,175 $66,191,407 $57,891,432 $58,930,311 All Other Governmental Funds
Nonspendable $2,239,029 $234,029 $293
Restricted 19,827,871 33,488,600 68,772, 861 $76,555,491 $76,190,135 $84,761,983 $94,077,986 $117,664,651 $ 121,721,287 $131,419,026 Assigned 7,670,060 68,374,788 58,691,704 33 ,810,387 26,111,962 27,536,543 14,454,839 10,507,228 18,408,611 Unassigned (2,508,938) (1,644,451) (5,969,846) (9,212,995) Total all other governmental funds $29,736,960 $31,213,691 $137,147,942 $135,247,195 $108,356,071 $104,904,099 $112,401,534 $132,119,490 $ 132,228,515 $149,827,637 * General Fund includes balances related to the City's Measure C District Sales Tax (a) The change in total fund balance for the General Fund and All Other Governmental Funds is explained in Management's Discussi on and Analysis.
The detail of Fund balance is explained in Note 10 of the financial statement footnotes.
Source: City of Hayward Annual Comprehensive Financial Report (ACFR)
CITY OF HAYWARD
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
2014 2015 2016* 2017* 2018* 2019* 2020* 2021* 2022* 2023* Thousands
#REF!
#REF! Nonspendable Restricted Assigned UnassignedGeneral Fund only 180
This Page Left Intentionally Blank
2014 2015 2016 2017 2018
Revenues
Property Taxes $38,971,067 $42,128,306 $44,159,430 $47,195,566 $51,235,946 Property Tax Increment
Sales Taxes 31,019,079 39,148,631 46,495,377 48,848,674 48,550,524 Utility Users Taxes 15,761,544 15,680,721 22,040,616 20,753,813 17,487,828 Other Taxes 21,310,770 23,424,572 26,554,046 27,518,428 28,116,819 Licenses and permits 4,078,392 5,031,300 6,316,823 7,766,510 7,091,074 Fines and forfeitures 2,285,486 2,549,034 2,341,565 2,499,964 2,487,183 Special Assessments 972,339 980,329 1,166,399 1,026,071 1,003,388 Use of money and property 635,092 357,388 561,895 1,746,291 1,644,775 Intergovernmental revenues 33,839,482 22,647,381 37,101,458 28,403,369 23,151,743 Fees and charges for services 8,172,604 7,639,834 9,885,890 5,889,181 7,360,450 Reimbursement from Developer 252,910
Gain on Sale
Othe
r 2,402,380 5,002,806 7,909,582 11,082,590 6,084,935
Total Revenues 159,701,145 164,590,302 204,533,081 202,730,457 194,214,665 Expenditures
Current:
General government 10,551,378 13,702,855 12,675,974 13,182,512 14,309,144 Public safety 91,851,849 96,719,824 105,164,624 110,461,347 110,621,648 Public works and transportation 3,764,567 6,623,943 3,850,989 4,001,258 3,772,501 Library and community services 7,004,537 6,748,325 8,371,078 6,678,908 7,638,673 Economic developmen
t 2,017,787 763,285 1,984,194 56,797 81,274
Planning and building 5,981,108 6,495,171 7,382,233 8,497,395 8,372,228 Maintenance services 4,591,395 5,581,077 6,279,365 7,711,268 7,720,401 Nondepartmental
Capital outlay 22,587,661 30,819,943 39,864,835 48,972,280 47,870,707 Debt service:
Principal 2,216,033 2,156,489 2,397,381 2,561,048 2,676,156 Interest and fiscal charges 1,093,538 1,158,708 1,055,901 3,303,835 3,321,225 Bond issuance cos
t 1,054,619 2,972
Pass-through payments
Total Expenditures 151,659,853 170,769,620 190,081,193 205,429,620 206,383,957 Excess (deficiency) of revenues over
(under) expenditures 8,041,292 (6,179,318) 14,451,888 (2,699,163) (12,169,292) Other Financing Sources (Uses)
Transfer of land held for resale to cap assets
Proceeds from sale of capital asset
Proceeds of refunding bonds (refer to ACFR Footnote 6) 87,348,775 Premium on refunding bonds issued (refer to ACFR Footnote 6) 6,565,740 Payment to refunded bond escrow agent (refer to ACFR Footnote 6) (20,455,936) Proceeds of repayment agreement
Proceeds from long term debt (refer to ACFR Footnote 6) 2,488,880 5,500,000 Proceeds from capital lease
Gain on land held for resale
Transfers in (refer to ACFR Footnote 4) 16,346,295 9,012,179 25,098,265 40,553,431 13,461,040 Transfers out (refer to ACFR Footnote 4) (22,375,934) (12,188,316) (27,899,357) (44,118,007) (17,962,337) Total other financing sources (uses) (3,540,759) 2,323,863 70,657,487 (3,564,576) (4,501,297) Extraordinary Item (Refer to ACFR Footnote 19)
Net Change in fund balances $4,500,533 ($3,855,455) $85,109,375 ($6,263,739) ($16,670,589) Debt service as a percentage of
noncapital expenditures 2.6% 2.4% 2.4% 3.8% 3.5%
Non-capitalized capital outlay 17,768,968
Source: City of Hayward Annual Comprehensive Financial Report (ACFR)
CITY OF HAYWARD
Changes in Fund Balance of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
182
2019 2020 2021 2022 2023
$54,467,978 $58,431,804 $61,196,409 $63,524,226 $68,458,487 52,917,415 56,566,457 58,652,032 64,666,358 66,932,441
16,935,327 16,065,943 17,267,592 17,308,117 25,944,798
32,658,149 31,774,255 36,672,642 42,293,995 36,987,146
7,814,026 6,435,587 5,439,030 7,040,991 7,959,299
2,670,298 2,210,385 2,194,569 2,908,314 2,680,493
1,059,378 1,297,894 1,408,903 1,427,107 1,547,811
3,473,471 3,901,043 1,729,716 (2,085,572) 3,129,954
28,991,082 28,937,153 38,526,058 42,581,105 52,257,273
7,373,160 5,585,549 9,712,963 8,305,207 4,506,630
10,982,198
10,689,323 18,289,406 24,378,704 17,150,080 18,779,649
230,031,805 229,495,476 257,178,618 265,119,928 289,183,981 15,335,579 14,607,161 13,971,584 19,264,532 21,750,190
118,169,989 123,148,622 129,477,772 135,547,462 144,815,357 8,850,429 6,849,771 8,198,266 9,841,151 10,664,999
7,722,543 8,707,212 9,123,989 10,597,268 12,948,082
1,512,567 1,576,741 2,350,344 6,674,218 8,705,058
9,229,204 8,618,787 8,712,707 9,576,414 9,442,396
9,973,511 9,840,025 10,752,525 12,017,944 13,234,112
45,601,421 34,471,404 40,657,890 53,296,125 38,525,972
5,013,353 5,207,513 5,416,028 6,257,552 6,121,651
3,190,198 3,007,504 2,795,772 2,615,974 2,375,640
224,598,794 216,034,740 231,456,877 265,688,640 268,583,457 5,433,011 13,460,736 25,721,741 (568,712) 20,600,524
1,063,021
3,390,000
40,742,247 15,104,770 12,292,089 42,742,446 44,503,979
(48,967,406) (18,967,012) (17,809,505) (51,427,705) (46,466,502) (8,225,159) (3,862,242) (2,127,416) (7,622,238) (1,962,523) ($2,792,148) $9,598,494 $23,594,325 ($8,190,950) $18,638,001
4.2% 4.2% 4.1% 3.9% 3.5%
14,789,030 13,167,567 16,025,372 14,564,462 12,224,749
Fiscal Years Ended June 30,
183
CITY OF HAYWARD
ASSESSED AND ESTIMATED ACTUAL
VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Millions
Total
Fiscal Total Secured Total Unsecured Total Estimated Direct Year Property Property Assessed ( c ) Full Market ( a ) Tax Rate ( b ) 2014 $15,692,946,952 $1,249,273,320 $16,942,220,272 $16,942,220,272 1% 2015 16,639,488,990 1,340,155,668 17,979,644,658 17,979,644,658 1% 2016 17,432,403,170 1,452,793,040 18,885,196,210 18,885,196,210 1% 2017 18,505,587,803 1,439,106,697 19,944,694,500 19,944,694,500 1% 2018 19,779,304,369 1,454,651,151 21,233,955,520 21,233,955,520 1% 2019 21,249,763,958 1,469,205,980 22,718,969,938 22,718,969,938 1% 2020 22,702,279,301 1,570,761,064 24,273,040,365 24,273,040,365 1% 2021 24,086,121,795 1,669,659,173 25,755,780,968 25,755,780,968 1% 2022 25,074,926,004 1,580,752,210 26,655,678,214 26,655,678,214 1% 2023 26,781,262,134 1,681,286,944 28,462,549,078 28,462,549,078 1% NOTE:
( a ) The State Constitution requires property to be assessed at one hundred percent of the most recent purchase price, plus an increment of no more than two percent annually, plus any local over-rides. These values are considered to be full market values. ( b ) California cities do not set their own direct tax rate. The state constitution establishes the rate at 1% and allocates a portion of that amount, by an annual calculation, to all the taxing entities within a tax rate area. ( c ) Total assessed represents gross amount of the total assessed valuation of the taxable property.
Source: Alameda County Auditor Controller Office Certificate of Assessed Valuations -$3,000
$2,000
$7,000
$12,000
$17,000
$22,000
$27,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Unsecured Property Series2
184
CITY OF HAYWARD
PROPERTY TAX RATES
ALL OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
Hayward Chabot-Las Positas
Fiscal Alameda County City of Alameda County Unified Community College Bay Area Rapid Hayward Area East Bay Year Wide Levy Hayward Go Bond School District District Transit (BART) Rec & Park Regional Park Total 2014 1.0000 0.0018 0.0000 0.0486 0.0214 0.0075 0.0078 1.0871 2015 1.0000 0.0018 0.0000 0.0527 0.0217 0.0045 0.0085 1.0892 2016 1.0000 0.0018 0.0000 0.0970 0.0198 0.0026 0.0067 1.1279 2017 1.0000 0.0018 0.0000 0.0974 0.0246 0.0080 0.0032 1.1350 2018 1.0000 0.0018 0.0000 0.0881 0.0445 0.0084 0.0299 0.0021 1.1748 2019 1.0000 0.0018 0.0112 0.0806 0.0443 0.0070 0.0300 0.0057 1.1806 2020 1.0000 0.0018 0.0108 0.1350 0.0422 0.0120 0.0300 0.0060 1.2378 2021 1.0000 0.0018 0.0036 0.1310 0.0214 0.0139 0.0299 0.0014 1.2030 2022 1.0000 0.0018 0.0041 0.1150 0.0458 0.0060 0.0299 0.0020 1.2046 2023 1.0000 0.0018 0.0103 0.0900 0.0388 0.0140 0.0299 0.0058 1.1906
0.00 0.20
0.40 0.60
0.80 1.00
1.20 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Percent
Chabot-Las Positas Community College District School District Alameda County Wide Levy Source: Alameda County Assessor's Office
185
Percentage Percentage
of Total City
of Total City
PSB Northern Calif Industrial Portfolio LLC Taxable Taxable Taxable Taxable Assessed Assessed Assessed
Assessed
Employer
Value Ran k Value Value Ran k Value
Russell City Energy Company, LLC 254,500,000$ 1 0.008941574 665,830,000$ 1 Southland Mall LP 256,029,619 2 0.008995316 150,564,034 3 0.90% PSB Northern Calif Industrial Portfolio LLC 229,550,133 3 0.008064989 Lincoln Landing Property Owner Llc 193,027,656 4 0.006781812 Hayward 544 Llc 176,945,440 7 0.006216781
Gi Ets Hayward Llc 158,100,000 5 0.005554668 0.60%
California Community Housing Agency 106,819,923 6 0.003752999 0.60% Hayward Point Eden I Limited Partnership 114,808,487 8 0.004033668 96,984,966 6 Centerpoint Properties Trust 109,366,332 9 0.003842464 Hayward Industrial Park Associates 106,998,292 10 0.003759266 92,211,890 7 Bottling Group LLC 121,965,004 4 0.80%
SCI Limited Partnership 86,946,227 8 0.60%
Northern Cal Industrial Portfolio 196,975,878 2 1.20% Berkeley Farm Inc. 104,387,441 5 0.70%
Guardian KW Hayward LLC 88,231,084 9 0.40%
Impax Laboratories Inc. 75,169,784 10 0.50%
Essex Wimbledon Woods Apartments, LLC 0.40%
Subtotal 1,706,145,882$ 5.99% 1,679,266,308 $ 9.91% Total Assessed Valuation:
Fiscal Year 2022/2023 $28,462,549,078
Fiscal Year 2013/2014
16,942,220,272
Source: Alameda County Assessor Fiscal Year Combined Tax Rolls City of Hayward
Principal Property Tax Payers
Current Year and Ten Years Ago
FY 2023 FY 2014
186
CITY OF HAYWARD
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
#
#
#
Percent of
Current Percent Delinquent Total Total Ta x
Fiscal Total Tax of Levy Tax Tax Collections
Year Tax Lev y Collections Collected Collections Collections to Tax Lev y 2014 $25,027,044 $24,356,397 97.32% $399,535 $23,088,930 92.26% 2015 26,474,019 25,522,217 96.40% 382,845 25,905,062 97.85% 2016 27,915,350 26,854,859 96.20% 446,987 27,301,846 97.80% 2017 29,275,215 28,172,161 96.23% 448,808 28,620,970 97.77% 2018 31,255,890 30,158,955 96.49% 410,565 30,569,520 97.80% 2019 33,360,474 32,234,964 96.63% 403,490 30,569,520 91.63% 2020 36,054,277 34,833,923 96.62% 505,412 32,638,455 90.53% 2021 38,025,883 36,767,160 96.69% 537,243 37,304,403 98.10% 2022 39,223,816 37,821,398 96.42% 604,452 38,425,850 97.97% 2023 41,759,359 40,260,859 96.41% 667,323 40,928,182 98.01% Source: Alameda County Assessor Office
$10.0
$12.5
$15.0
$17.5
$20.0
$22.5
$25.0
$27.5
$30.0
$32.5
$35.0
$37.5
$40.0
$42.5
$45.0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Millions
Total Tax Levy Total Tax Collections
Source: Alameda County Assessor Office
187
CITY OF HAYWARD
RATIO OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governmental Activities
Tax Certificates Capital
Fiscal Allocation of Revenue
Lease
Year Bonds Participation Bonds Obligations Total
2014 0 (a) 22,895,000 $3,003,880 $5,699,806 $31,598,686 2015 0 (a) 21,195,000 2,695,717 11,279,313 35,170,031
2016 0 (a) 87,348,775 2,371,338 10,787,079 100,507,193
2017 0 (a) 91,613,001 2,044,350 9,050,057 102,707,408
2018 0 (a) 89,212,869 1,709,786 7,661,734 98,584,389
2019 0 (a) 84,487,311 1,372,620 6,444,597 92,304,528
2020 0 (a) 79,584,001 1,028,478 5,001,566 85,614,045
2021 0 (a) 74,484,994 681,218 4,225,876 79,392,088
2022 0 (a) 69,185,304 766,118 3,646,076 73,597,498
2023 0 (a) 63,681,521 138,252 3,049,398 66,869,171
Business-Type Activities
Water Sewer
Fiscal Revenue Revenue Total Government Debt
Year Bonds Bonds Total Government Per Capita (b)
2014 $6,570,000 $46,137,248 $52,707,248 $84,305,934 $558 2015 6,055,000 42,151,592 48,206,592 83,376,623 545.34 2016 5,525,000 38,116,304 43,641,304 144,148,497 906.68 2017 4,980,000 34,755,949 39,735,949 142,443,357 884.52 2018 4,420,000 31,370,520 35,790,520 134,374,909 829.32 2019 3,840,000 43,337,073 47,177,073 139,481,601 874.86 2020 3,245,000 38,786,145 42,031,145 127,645,190 796.23 2021 2,630,000 40,524,958 43,154,958 116,752,456 738.52 2022 2,000,000 36,523,498 38,523,498 112,120,996 709.23 2023 0 33,020,237 33,020,237 99,889,408 625.09 Note : Debt amounts exclude any premiums, discounts, or other amortization amounts. (a) Tax Allocation Bonds are reported under Redevelopment Successor Agency as Fiduciary Fund as Redevelopment Agenc y was dissolved on January 31, 2012 as per ABx1 26 and AB1484. (b) Per Capita based on City population; refer to Demographic and Statistics Schedule for population data.
Source: City of Hayward
State of California, Department of Finance (population) U.S. Dept of Commerce, Bureau of the Census (income)
$0
$20
$40
$60
$80
$100
$120
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Millions
Total Governmental Activities Total Business-Type Activities 188
2022-23 Assessed Valuation: 27,963,145,708$
Redevelopment Incremental Valuation: (3,569,460,554)
Adjusted Assessed Valuation: 24,393,685,154$
Total Debt City's Share of Debt
6/30/2023 % Applicable (1) 6/30/2023
DIRECT DEBT:
City of Hayward General Fund Obligations 66,869,171$ 100.000% 66,869,171$ 66,869,171$
Total Direct Debt 66,869,171$
OVERLAPPING TAX AND ASSESSMENT DEBT:
Alameda County $515,890,000 7.46% $38,490,553
Bay Area Rapid Transit District 2,484,285,000 2.936 72,938,608 Chabot-Las Positas Community College District 756,200,000 17.994 136,070,628 Castro Valley
Unified School District 139,880,000 0.113 158,064
Hayward Unified School District 748,650,496 86.112 644,677,915 New Haven Unified School District 245,035,312 13.382 32,790,625 Pleasanton Unified School District 287,550,000 0.033 94,892 San Lorenzo Unified School District 214,585,000 15.089 32,378,731 Washington Township Healthcare District 340,195,000 1.705 5,800,325 Hayward Area Recreation and Park District 186,590,000 55.613 103,768,297 East Bay Regional Park District 175,955,000 4.648 8,178,388 City of Hayward Community Facilities District No. 1 4,236,302 100 4,236,302 City of Hayward 1915 Act Bonds 55,000 100 55000
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 1,079,638,328$ Ratios to 2022-23 Assessed Valuation:
Subtotal Overlapping Tax and Assessment Debt 4.43%
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Alameda County General Fund Obligations $706,903,500 7.46% $52,742,070 Alameda-Contra Costa Transit District Certificates of Participation 11,220,000 8.807 988,145 Hayward Unified School District General Fund Obligations 81,561,875 86.112 70,234,562 Pleasanton Unified School District General Fund Obligations 30,000,000 0.033 9,900 San Lorenzo Unified School District General Fund Obligations 8,130,000 15.089 1,226,736 Castro Valley Unified School District Certificates of Participation 4,245,000 0.113 4,797 Eden Township Healthcare District General Fund Obligations 13,235,000 40.323 5,336,749 130,542,959$
OVERLAPPING TAX INCREMENT DEBT(Successor Agencies): $43,410,000 7.626 & 100. % $23,711,245 23,711,245$
Total Overlapping Debt 1,233,892,532$
Grand Total Direct and Overlapping Debt 1,300,761,703$ (2) Combined Total Direct and Overlapping Debt 1,300,761,703$ (2) Ratio to 2022-23 Assessed Valuation:
Combined Total Direct and Overlapping Tax and Assessment Debt 5.33% NOTE:
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations. Qualified Zone Academy Bonds are included based on principal due at maturity.
Source: California Municipal Statistics, Inc.
CITY OF HAYWARD
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
189
CITY OF HAYWARD
COMPUTATION OF LEGAL BONDED DEBT MARGIN
Last Ten Fiscal Years
ASSESSED VALUATION:
Secured property assessed value, net of
exempt real property $28,462,549,078
BONDED DEBT LIMIT (15.% OF ASSESSED VALUE) $4,269,382,362 AMOUNT OF DEBT SUBJECT TO LIMIT:
Total Bonded Debt $66,869,172
Less Tax Allocation Bonds and Sales Tax Revenue
Bonds, Certificate of Participation not subject to limit 66,869,172 Amount of debt subject to limit 0
LEGAL BONDED DEBT MARGIN $4,269,382,362
Total net debt
Total Net Debt Legal applicable to the limit
Fiscal Debt Applicable to Debt as a percentage
Year Limit Limit Margin of debt limit
2014 $2,541,333,041 0 $2,541,333,041 0.00%
2015 2,696,946,699 0 2,696,946,699 0.00%
2016 2,832,779,432 0 2,832,779,432 0.00%
2017 2,991,704,175 0 2,991,704,175 0.00%
2018 3,185,093,328 0 3,185,093,328 0.00%
2019 3,407,845,491 0 3,407,845,491 0.00%
2020 3,640,956,055 0 3,640,956,055 0.00%
2021 3,863,367,145 0 3,863,367,145 0.00%
2022 3,998,351,732 0 3,998,351,732 0.00%
2023 4,269,382,362 0 4,269,382,362 0.00%
Source: County of Alameda Auditors Office
190
Debt Service Requirements
Net Revenue
Fiscal Gross Operating Available for
Year Revenue (1) Expenses (2) Debt Service Principal Interest Total Ratio Coverage 2014 $73,136,288 $47,380,860 $25,755,428 $2,160,000 $459,280 $2,619,280 9.83 2015 73,564,675 49,566,818 23,997,857 1,615,000 302,938 1,917,938 12.51 2016 80,748,945 52,915,644 27,833,301 1,555,498 205,533 1,761,031 15.81 2017 82,325,821 60,602,745 21,723,076 886,781 151,341 1,038,122 20.93 2018 86,614,724 63,289,309 23,325,415 919,040 121,929 1,040,969 22.41 2019 102,636,863 60,860,754 41,776,109 450,133 90,738 540,871 77.24 2020 96,734,751 60,046,086 36,688,665 462,357 78,514 540,871 67.83 2021 93,001,615 62,364,681 30,636,934 479,467 66,069 545,536 56.16 2022 88,096,478 62,788,487 25,307,991 487,444 52,812 540,256 46.84 2023 96,389,299 71,699,492 24,689,807 1,555,726 39,473 1,595,199 15.48 Notes: (1) Includes all Wastewater Operating Revenues, Non-operating Interest Revenue, Connection Fees and other Non-operating Revenue (2) I
ncludes all Wastewater Operating Expenses less Depreciation and Interest
CITY OF HAYWARD
REVENUE BOND COVERAGE
WASTEWATER REVENUE BONDS
LAST TEN FISCAL YEARS
0 10
20 30
40 50
60 70
80 90
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Ratio Coverage
Source: City of Hayward Annual Financial Statement
191
CITY OF HAYWARD
BONDED DEBT PLEDGED REVENUE COVERAGE
TAX ALLOCATION BONDS
LAST TEN FISCAL YEARS
Tax Debt Service Requirements
Fiscal Increment
Year Revenue Principal Interest Total Coverage
2014 $4,317,292 $1,680,000 $2,328,657 $4,008,657 1.08
2015 5,365,287 1,750,000 2,253,588 4,003,588 1.34
2016 6,427,560 1,835,000 2,173,931 4,008,931 1.60
2017 5,089,716 2,035,000 347,642 2,382,642 2.14
2018 3,163,863 1,685,000 1,550,975 3,235,975 0.98
2019 4,109,694 1,735,000 1,487,550 3,222,550 1.28
2020 3,791,673 1,805,000 1,417,450 3,222,450 1.18
2021 4,020,771 1,880,000 1,344,550 3,224,550 1.25
2022 3,701,590 1,975,000 1,254,250 3,229,250 1.15
2023 4,051,193 2,070,000 1,154,375 3,224,375 1.26
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
$11,000
$12,000
$13,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Thousands
Tax Increment Revenue Debt Service Payment
Source: City of Hayward Annual Financial Statements
192
CITY OF HAYWARD
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
City City
Fiscal City Per Capita Unemployment Alameda Co. Population Year Population Income Rate Population % of Count y
2014 151,037 $25,208 10.3% 1,573,254 9.60%
2015 152,889 25,770 13.2% 1,594,569 9.59%
2016 158,985 26,405 13.2% 1,627,865 9.77%
2017 161,040 27,774 13.3% 1,645,359 9.79%
2018 162,030 32,021 3.1% 1,660,202 9.76%
2019 159,433 29,583 2.8% 1,669,301 9.55%
2020 160,311 37,243 11.0% 1,670,834 9.59%
2021 158,089 7.6% 1,656,591 9.54%
2022 160,591 3.2% 1,651,979 9.72%
2023 159,800 4.8% 1,636,194 9.77%
Note: As of FY21, data no longer available for Per Capita Income Sources: U.S. Census Bureau
State of California - Department of Finance, Office of The Director State of California - Employment Development Department, Labor Market Information Division 0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
11%
12%
13%
14%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Unemployment Rate (%)
8%
9%
10%
11%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
City Population as a % of County Population
1.4 1.5
1.6 1.7
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Alameda Co. Population
$5
$10
$15
$20
$25
$30
$35
$40
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Thousands
Per Capita Income
193
FY 2023
Number Percentage
of of Total City
Employer Employees Rank Employment
Alameda County Sheriff's Department *
Baxter Bio Pharma *
California State University East Bay * 1,447 2 1.0%
Chabot Community College * 600 8 0.4%
Fremont Bank Operations Center *
Hayward Unified School District * 2,500 1 1.7%
Illumina *
Impax Laboratories, Inc. *
Pentagon Technologies *
Plastikon Industries, Inc. *
Siemens Building Tech *
St. Rose Hospital * 842 5 0.6%
Gillig Corporation 700 6 0.5%
Kaiser Permanente Medical Center 1,200 3 0.8%
City of Hayward 845 4 0.6%
Bay Cities Auto Auction 500 9 0.3%
IMPAX Laboratories Inc 700 7 0.5%
Marelich Mechanical 500 10 0.3%
Subtotal 9,834 6.5%
Total City Population Using Census Data 151,037
Source: City of Hayward Adopted Operating Budget FY23
Note: FY23 data not available for ranking or total employment. * Presented in alphabetical order based on economic develo pment's assessment.
City of Hayward
Principal Employers
Current Year and Ten Years Ago
FY 2014
194
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function
General government 156.00 165.00 175.00 168.50 168.50 181.50 188.25 186.25 185.75 191.85 Public safety 437.50 439.50 457.00 459.00 460.00 469.00 473.00 473.00 473.00 473.00 Public works 25.00 26.00 20.50 19.56 20.71 20.56 24.00 24.45 24.15 24.95 Library and community services 38.55 40.20 42.20 42.80 44.80 35.80 36.80 36.80 37.80 38.30 Development services 32.00 36.00 39.00 50.00 50.00 49.50 50.00 50.00 50.00 50.00 Water 58.50 58.50 57.30 60.61 60.46 61.41 61.26 60.71 61.61 57.61 Wastewater 53.00 56.00 70.40 71.58 73.58 73.78 73.24 73.34 75.24 78.44 Solid Waste 3.00 3.00 2.80 2.75 2.75 2.75 2.75 2.75 2.25 2.15 Total 803.55 824.20 864.20 874.80 880.80 894.30 909.30 907.30 909.80 916.30 Source: City of Hayward Adopted Operating Budget
*Due to City of Hayward department reorganization, Community Development and Culture and Leisure departments no longer exist.
CITY OF HAYWARD
Full-Time Equivalent City Government Employees by Function Last Ten Fiscal Years
0 100
200
300
400
500
600
700
800
900
1,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
General government Public safety Public works
Library and community services Development services Water Wastewater Solid Waste
195
2019 2020 2021 2022 2023
Function/Program
Public safety:
Fire alarms 18,823 18,860 18,414 20,361 23,379
Police: (Uniform Crime Reporting Statistics)
Property crime calls 4,749 5,462 4,682 4,918 8,134
Violent crime calls (a) 604 568 520 511 1,652
Arson calls 28 20 19 28 18
Public works
Pavement Condition Index (PCI)* 70 69 70 69 71
*Industry measure of street condition with 100 ideal score Annual pavement improvement projects 10 10 10 10 9
Airport operations count/flights 106,447 90,048 126,219 132,096 128,954 Airport reported based aircraft 461 461 461 461 447
Community Services
Social Services Projects Funded 18 18 26 19 18
Facilities Projects Funded 21 144
Economic Development Projects Funded 32 652
New Housing/Rehab Projects Funded 22 223
Public Services Projects Funded 55 1876
Measure B Projects Funded 88 465
Measure BB Projects Funded 00 111
ARPA Projects Funded 3
Planning
Active Subdivisions 41 40 48 38 29
Active Parcel Maps 7 11 12 13 17
Building Permits 5,107 4,501 4,291 4,517 5,150
Residential Rental Inspections 977 943 334 142 699
Development Services
Affordable Housing Development Units Funded 0 0 # 182 76 Library and neighborhood services
Library Materials in Collection 164,396 204,416 154,535 158,258 162,172 Library Circulation (Items checked out) 159,806 395,758 144,108 370,628 455,913 Community Preservation Cases 2,917 2,522 2,518 2,159 1,734 Water
Water service connections 37,526 38,236 38,532 37,764 38,073 Water main breaks 21 17 19 9 16
Average daily consumption (thousands of gallons or gallons) 14,046 13,962 14,405,184 13,901,276 12,886,593 Wastewater
Sewer service connections 34,728 35,256 35,256 35,497 35,950 Average daily treatment (thousands of gallons) 11,574 10,717 10,355 10,605 12,379 Solid Waste
Landfilled waste recycled and diversion rate* 66% 66% 73% 74% 74% *Diversion rate beginning in calendar year 2000 and each year thereafter.
(a) Excluded Simple assault calls, restated prior years.
Source: City of Hayward
CITY OF HAYWARD
Operating Indicators by Function/Program
Last Five Fiscal Years
196
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CITY OF HAYWARD
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
2014 2015 2016 2017 2018
Function/Program
Public safety:
Fire stations (a) 99999
Number of firefighters and officers (b) 127 118 118 114 129 Police stations 11111
Number of police officers (c) 199 177 186 194 176
Public works
Miles of streets 266 266 283 283 283
Street lights 8,161 8,178 8,273 8,288 8,238
Traffic Signals 135 134 134 136 143
Airport 11111
Library and neighborhood services
City Libraries 22222
Water
Number of consumers 150,000 150,000 150,000 155,000 160,500 Average daily consumption (gallons) 15,200,000 13,600,000 12,255,000 12,870,000 14,650,000 Miles of water mains 380 385 385 385 385
Storage capacity (gallons) 29,350,000 29,350,000 29,350,000 30,550,000 30,550,000 Wastewater
Miles of sewers 325 325 325 325 325
Number of treatment plants 11111
Treatment capacity (gallons) 18,500,000 18,500,000 18,500,000 18,500,000 18,500,000 (a) Includes Fairview Fire District Station under contract (b) Represents actual hired firefighters and officers which may be different than budgeted number of positions (c) Represents actual hired police officers which may be different than budgeted number of positions Sources: City of Hayward
198
2019 2020 2021 2022 2023
9 9 999
124 122 121 125 128
1 1 111
178 181 169 161 154
283 283 283 283 283
8,327 8,327 8,327 8,377 8,383
146 146 146 146 146
1 1 111
2 2 222
159,500 159,203 162,954 159,827 163,782
14,046,000 13,962,000 14,405,184 13,901,276 12,886,593
391 391 391 391 391
25,350,000 31,250,000 25,000,000 25,000,000 25,000,000
321 321 321 321 321
1 1 111
18,400,000 18,500,000 18,500,000 18,500,000 18,500,000
Fiscal Year Ended June 30,
199
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Finance Department, 777 B Street, Hayward CA 94541
www.Hayward-CA.gov