Livermore City Council
January 22, 2024

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EXHIBIT A
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• Screening: Nelson will bill back to Client all costs associated with pre-employment drug and background screening.

Nelson shall not inform Client of the results of the pre-employment background check and drug testing but will only assign temporary employees to Client who have satisfactorily passed the background check and drug test screening.

Nelson adheres to all Federal, State, and Local regulations. As the employer of record, Nelson shall remain responsible for eligibility determination.
• Direct Hire Fee: It has been agreed between the parties that there will be a fee equal to twenty-five percent (25%) of the candidate's first year's salary during the candidate's first year of employment. • Direct Hire Guarantee: Each placement is guaranteed for ninety (90) calendar days, effective the day the candidate begins. If the employer terminates for cause or the employee voluntarily resigns during the first sixty (90) calendar days, the fee will be prorated at 1190th of the original fee for each consecutive calendar day employed, and the portion of the fee that exceeds that amount will be promptly refunded. This guarantee is only valid if the invoice is paid within thirty (30) days of candidate start date and void in the case of company downsizing, reorganization, sale, merger, relocation, or other significant changes in the conditions of the role or agreed upon compensation provided to the candidate.
• Payment Terms: Payment is due thirty (30) days from the date of invoice. Direct Hire placement invoices are submitted on the start date of the candidate. Temporary and consulting services invoices are processed weekly and are generated from the employee's timecard. If it becomes necessary to file suit for collection purposes, attorney's fees shall be paid to the prevailing party. Any amounts not paid within thirty (30) days of the due date shall be subject to a finance charge of 1.5% per month (18% per annum).
• Indemnification: Each party agrees to indemnify, defend, and hold the other, and its officers, directors, employees, and agents harmless from any claim which arises out of the indemnifying party's failure to comply with the terms of this Agreement; violation of applicable federal, state, or local law; or negligence. Promptly upon becoming aware of a claim subject to indemnification under this Agreement, the indemnified party must give notice of the claim to the indemnifying party, accompanied by a copy of any written documentation regarding the claim received by the indemnified party. The indemnifying party will, at its option, settle or defend, at its own expense and with its own counsel, the claim. The indemnified party will have the right, at its option, to participate in the settlement or defense of the claim, with its own counsel and at its own expense; however, the indemnifying party will have the right to control the settlement or defense of the claim. The indemnifying party will not enter into any settlement that imposes any liability or obligation on the indemnified party without the indemnified party's prior written consent. The parties will cooperate in the settlement or defense and give each other full access to all relevant information.
• Insurance. Consultant shall procure and maintain insurance during the term of this Agreement in the amounts and under the terms set forth in Exhibit "A" against claims that may arise from or in connection with this Agreement and performance of the Services.

Client Responsibilities:
• Confidentiality: The candidates whom Nelson presents to Client are obtained as a result of Nelson's work and reputation and these candidates may want their job search to be kept confidential. Client and its agents agree to keep confidential the identities and related information concerning Nelson candidates. The information is to be used solely for the purpose of Client considering these candidates for employment by Client and with Client agreeing to not contact either candidate or any related references without Nelson's prior permission.
• Cash and Valuables: Client shall not entrust Nelson employees with unattended premises, or give access to Nelson employees any cash, cash negotiables, or other valuables, without Nelson's prior written consent. Client agrees to waive any claim against Nelson and to hold Nelson harmless and to indemnify Nelson from any costs, claims or losses which occur in whole or in part from Client's failure to comply with this provision.
• Training and Supervision: Client agrees that Nelson employees will be adequately protected, trained, and supervised and provided with the equipment and supervisorial protection necessary to the preservation of their right of privacy, their ability to perform their assignment, and their safety, as required by law. Client shall comply with its legal obligations to protecting Nelson employees from harassment, or any improper interference with their ability to perform their work.

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• Notification of Changes to Personnel's Job Duties: Client agrees, upon any change in job duties from those for which Personnel was initially placed, to obtain written agreement from Nelson. This is necessary to ensure that Nelson is properly informed in order to assess the risk of the duties and responsibilities of Nelson Personnel. If Client makes a change without Nelson's written consent, then Client agrees to reimburse Nelson for any additional cost incurred, including, without limitation, the increased cost of insurance premiums for Worker's Compensation coverage. • If Nelson's candidate is referred to Client and is not hired, but Client refers the candidate to another division of Client Company, or a different company resulting in the candidate hiring, Client is liable for the fee.
• Should Client decide to hire or contract with any Nelson candidate that was placed at Client Company through Nelson, or presented to Client by Nelson, and do so without Nelson's written consent, Client agrees, even if the candidate was referred to a position by another agency, to pay Nelson a placement fee equal to twenty-five percent (25%) of the first year's salary effective as of the date of Client hiring contract. This obligation continues for 365 days from the day Nelson presented the candidate or the last day the candidate was on Nelson payroll.
• Client agrees that should they, their subsidiary, or any related company, decide to hire or contract with a Nelson internal employee for any position, and do so without Nelson's written consent, to pay Nelson a placement fee in the amount of twenty-five percent (25%) of the employee's base salary due and payable within thirty (30) days. This obligation continues for 365 days from the last day that Nelson is responsible to pay employee.
• Client warrants that the approval of timecards certifies that the hours worked are correct and acceptable to Client for billing purposes, and that the work was performed in a satisfactory manner. • Timecards which are not approved by Nelson deadlines, unless otherwise agreed to in writing, will be sent to Nelson's Temp Payroll team for processing. Adjustments made to timecards after the payroll cut-off may be subject to delayed processing and/or waiting time penalties. Client is responsible for all related penalties and charges if a delay in timecard review is due to the Client and/or Client Supervisor not meeting the NelsonTime deadline.
• Non-exempt employees furnished by Nelson to Client shall submit timecards to Client each week recording the number of hours worked in the preceding calendar week. Client shall review and approve those timecards, which accurately state the number of hours worked. The timecards approved by Client shall be the basis of the amounts billed to Client by Nelson for the services of its employee. Client approved timecards must be submitted to Nelson electronically through NelsonTime by 2:00 pm Monday.

The individual signing this Agreement on behalf of Client represents and warrants that he/she has the authority to enter into this Agreement on behalf of Client and to bind Client to the terms hereof.

City of Livermore Gary D. Nelson Associates, Inc.

Signature u~,~~:,,
A518A99D8958488 9918D1888599483
Print Name: Marianna Marysheva Paul Spence Print Name: Joseph T. Prusko Title: City Manager Community Developmentmi~c®'iief Financial Officer Date: 4/3/2023 I 5:58 PM PDT Date: 4/3/2023 I 10:22 AM PDT ~~:~~::.•s to form c~~-~r~
Printed Name: Katherine Mirassou
Title: Deputy City Attorney
Date: 4/3/2023 111 :11 AM PDT

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EXHIBIT A
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EXHIBIT A

INSURANCE REQUIREMENTS
Minimum Scope and Limits of Insurance
Consultant/Contractor shall maintain limits no less than:

1. Commercial General Liability, including operations, products and completed operations, as applicable:
$1,000,000/$2,000,000 aggregate per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability or other form of insurance with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.

2. Automobile Liability:
$1,000,000 per accident for bodily injury and property damage.

3. Workers' Compensation and Employer's Liability:

Statutory limits as required by the State of California including $1,000,000 Employers' Liability per accident, per employee for bodily injury or disease. A waiver of subrogation is required for Workers' Compensation insurance. If Consultant/Contractor is a sole proprietor, then they must sign "Contractor Release of Liability".

Deductibles and Self-Insured Retention
All self-insured retentions (SIR) must be disclosed to Risk Management for approval and shall not reduce the limits of liability. Policies containing any self-insured retention (SIR) provision shall provide, or be endorsed to provide, that the SIR may be satisfied by either the named insured or the City of Livermore. The City of Livermore reserves the right to obtain a full certified copy of any insurance policy and endorsements. Failure to exercise this right shall not constitute a waiver of right to exercise later.

Acceptability of Insurers
Insurance is to be placed with insurers with a current AM. Best rating of no less than A: VII and accepted to do business in the State of California, unless otherwise acceptable to the City of Livermore.

Other Insurance Provisions
The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:

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1. The City of Livermore, its officers, officials, employees, and designated volunteers are to be covered as additional insureds as respects: liability arising out of activities performed by or on behalf of the Consultant/Contractor; or automobiles owned, leased, hired or borrowed by the Consultant/Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the City of Livermore, its officers, officials, employees, or volunteers.

2. The limits of insurance required in this agreement may be satisfied by a combination of primary and umbrella or excess insurance. The additional
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insured coverage under the Consultant's/ Contractor's policy shall be primary and non-contributory and will not seek contribution from the City's insurance or self-insurance and shall be at least as broad as ISO Form CG 20 10 04 13. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of the City of Livermore before the City's own insurance or self-insurance shall be called upon to protect it as a named insured.

3. Any failure to comply with reporting or other provisions of the policy, including breaches of warranties, shall not affect coverage provided to the City ofLivennore, its officers, officials, employees, or volunteers.

4. The Consultant's/Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability.

5. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled by either party before expiration of the policy unless notice is delivered in accordance with policy provisions.

6. Certificate Holder section of the insurance certificate should read: City of Livermore, 1052 S. Livermore Avenue, Livennore, CA 94550
Verification of Coverage
Consultant/Contractor shall furnish certificates of insurance and endorsement(s) effecting coverage to the City of Livermore for approval. The endorsements shall be on forms acceptable to the City of Livermore. All certificates and endorsements are to be received and approved by the City of Livermore before work commences. The City of Livermore reserves the right to require complete and certified copies of all insurance policies required by this Agreement.

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CITY COUNCIL STAFF REPORT
ITEM NO. 5.7

DATE:

January 22, 2024
TO:

Honorable Mayor and City Council
FROM:

Tina Olson, Administrative Services Director
SUBJECT:

Resolution accepting the Annual Comprehensive Financial Report (ACFR) and Other Audit Reports for the Fiscal Year ended June 30, 2023.

RECOMMENDED ACTION

Staff recommends the City Council adopt a resolution accepting the following reports for Fiscal Year 2022-23 as completed:

Annual Comprehensive Financial Report, and ratify and approve the audited financial statements presented therein in accordance with Government Code §37208; Alameda County Transportation Commission Measure B Program Financial Statements; Alameda County Transportation Commission Measure BB Program Financial Statements; Alameda County Transportation Commission Vehicle Registration Fee (VRF) Measure F Program Financial Statements;
Agreed Upon Procedures for Compliance with the Proposition 111 2022-23 Appropriations Limit Increment;
Memorandum of Internal Control; and
Required Communications.

SUMMARY
The Annual Comprehensive Financial Report (ACFR), which contains the Auditor’s Opinion, for the fiscal year ending June 30, 2023, is complete and ready for City Council acceptance. The auditors have given the City an unmodified or “clean” opinion on the ACFR. This is shown as the Independent Auditors’ Opinion letter in the audit report (page 1). This is the 42nd consecutive year the City has received an unmodified opinion. In addition to the ACFR, there are six other audit compliance reports being presented for acceptance.

DISCUSSION
The audited ACFR and other required audit compliance reports are being presented to the City Council in accordance with the Livermore Municipal Code §2.28.020 and Government Code §37208. This year’s 240
audits were performed by the City’s independent auditors, Eide Bailly LLP.

During fiscal year 2022-23 the City found a few loans managed by Amerinational, the City’s contractor for low-income housing programs, that had not been recorded in the City's General Ledger. Finance recorded these loans throughout the course of the fiscal year updating its notes receivables. During the auditor’s review of the fiscal year activities, it was found that these loans should have been recorded in the prior years which caused the auditors to look closer at how the City records its notes receivables.

The Auditors informed Finance that certain notes receivables needed to be reclassified from the original recording.

The omission of these loans resulted in the prior year financial statements to be underreported for certain notes receivables that were tracked by the City’s contractor. Accordingly, the beginning net position of the governmental activities, the fund balance of the Low-Income Housing-Special Revenue Fund, and the fund balance of the Nonmajor Governmental Funds has been restated to include the additional beginning balances of the notes receivables. This restatement process of notes receivables did not alter the auditor’s opinion on the City’s ACFR.

Finance immediately worked on reclassifying the notes receivable as per the direction of the auditors. At the time the final ACFR was issued, the City’s Notes Receivables are accurate. Finance staff are working with Housing and Human Services staff to develop a procedure that ensures Finance receives all future low-income housing loans to record in the City's General Ledger. The auditors have given the City an unmodified or “clean” opinion on the ACFR. This is shown as the Independent Auditors’ Opinion letter in the audit report (page 1). This is the 42nd consecutive year the City has received an unmodified opinion.

Government Code §37208 provides that a city council is not required to approve payroll and other budgeted demands prior to issuing payment, they may be presented to the City Council for ratification and approval, in the form of an ACFR.

The City has submitted the FY 2022-23 ACFR for the Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting award program. In the past, the City has received the GFOA award and believes that the recent ACFR meets the stringent requirements to again merit GFOA recognition.

In addition to the ACFR, there are six other reports for review:

Alameda County Transportation Commission Measure B Program Financial Statements is
required by the Master Program Funding Agreement with the Alameda County Transportation Commission (ACTC) and confirms that the City has complied with the provisions of Measure B.

Alameda County voters approved the half-cent transportation sales tax in November 2000. The sales tax collection began on April 1, 2002, and extended through March 31, 2022. ACTC administers Measure B funds to deliver essential transportation improvements and services.

Alameda County Transportation Commission Measure BB Program Financial Statements is
required by the Master Program Funding Agreement with the Alameda County Transportation Commission (ACTC) and confirms that the City has complied with the provisions of Measure BB.

Alameda County voters approved Measure BB in November 2014 and collection of the half-cent transportation sales tax by the Board of Equalization began on April 1, 2015, and extended through March 31, 2022. The full one-cent sales tax authorized by Measure BB began April 1, 241
2022, and will extend through March 31, 2045. Local jurisdictions began to receive the flow of funds in July 2015. ACTC administers Measure BB funds for essential transportation improvements in every city throughout Alameda County.

Alameda County Transportation Commission Vehicle Registration Fee Measure F Program Financial Statements
is required by the Master Programs Funding Agreement between the City and Alameda County Transportation Commission and confirms that the City has complied with the laws, regulations, contracts, and grant agreements as specified and applicable to Measure F.

Measure F is the Alameda County Vehicle Registration Fee Program which was approved by voters in November 2010 and generates $10 per vehicle each year. The collection of these funds began in May 2011 will continue to be imposed annually unless repealed. The revenue generated is used for local road improvement and repair, transit congestion relief, local transportation technology, and pedestrian & bicyclist access & safety programs.

Agreed Upon Procedures for Compliance with the Proposition 111 2020-21 Appropriation Limit Increment
is required by Section 1.5 of Article XIIIB of the California Constitution. This report shows the auditors applied specific procedures, which were suggested by the League of California Cities and presented in their Article XIIIB Appropriation Limitation Uniform Guidelines, to validate the City’s calculation of the Appropriations Limit. No exceptions were noted.

Memorandum on Internal Control:

In planning and performing the audit of the financial statements Eide Bailly LLP considered the City’s internal control over financial reporting as a basis for designing the auditing procedures for the purpose of expressing opinions on the financial statements. The auditors are required to communicate to the City Council any internal control matters that come to their attention during the audit. The City’s auditors, Eide Bailly LLP, have provided such a report in their Memorandum on Internal Control (MOIC) for the fiscal year ended June 30, 2023. The report states that the audit did not identify any deficiencies in the City's internal control.

Required Communications:

Under generally accepted auditing standards, the City’s external auditors are required to formally communicate with the governing body to convey audit matters, the scope of work, difficulties, adjustments to financial statements, or any possible disagreements with management. Professional standards require the auditor to evaluate the financial statements and assess the risk that a material misstatement could occur. Areas that are potentially more susceptible to misstatements, and thereby require special audit considerations, are designated as “significant risks”. The auditors identified no areas of significant risks.

FISCAL AND ADMINISTRATIVE IMPACTS

There is no direct fiscal impact in accepting the FY 2022-23 audit reports. Total audit and report preparation costs of $155,582 are within budget and are allocated to the General Fund, Enterprise funds, Measure B funds, Measure BB funds and transportation funds as the audits and reports are completed.

The total fee also includes preparation costs of certain reports not requiring City Council acceptance that are transmitted directly to the California State Controller, including the Special Districts Financial Transactions Report for the Livermore Capital Projects Financing Authority (LCPFA) and the Cities Financial Transactions Report for the City of Livermore.

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COMMUNITY PILLAR
5: A City That Works

GOAL
17: Ensure effective use of public resources

ATTACHMENTS

1. Resolution

2. Exhibit A - Annual Comprehensive Financial Report

3. Exhibit B - ACTC Measure B Funds Financial Statements

4. Exhibit C - ACTC Measure BB Funds Financial Statements

5. Exhibit D - ACTC Vehicle Registration Fee Program (VRF) Financial Statements

6. Exhibit E - Independent Accountant's Report on Applying Agreed Upon Procedures Related to the Article XIII-B Appropriations Limit Calculation

7. Exhibit F - Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters

8. Exhibit G - Required Communications

Prepared by: Erik Peterson
Finance Manager

Approved by:
____________________________________
Marianna Marysheva
City Manager
Fiscal Review by:
____________________________________
Tina Olson
Administrative Services Director
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RESOLUTION NO. ________

IN THE CITY COUNCIL OF THE CITY OF LIVERMORE, CALIFORNIA

A RESOLUTION ACCEPTING THE ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) AND OTHER ANNUAL REPORTS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 At its meeting on January 22, 2024, the audited Annual Comprehensive Financial Report and other required audit compliance reports for the fiscal year ended June 30, 2023, were presented to the City Council in accordance with Livermore Municipal Code section § 2.28.020.

California Government Code § 37208(c) provides that budgeted payrolls and demands paid by warrants or checks may be presented to the legislative body for ratification and approval in the form of an audited annual comprehensive financial report.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Livermore that it has received and hereby accepts as completed the following financial statements and annual reports for the fiscal year ended June 30, 2023, attached hereto:

1. Annual Comprehensive Financial Report, attached hereto as Exhibit A;

2. Alameda County Transportation Commission Measure B Funds Financial Statements, attached hereto as Exhibit B;

3. Alameda County Transportation Commission Measure BB Funds Financial Statements, attached hereto as Exhibit C;

4. Alameda County Transportation Commission Vehicle Registration Fee Program (VRF) Financial Statements, attached hereto as Exhibit D;

5. Independent Accountant’s Report on Applying Agreed-Upon Procedures Related to the Article XIII-B Appropriations Limit Calculation, attached hereto as Exhibit E;

6. Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters, attached hereto as Exhibit F; and,

7. Required Communications, attached hereto as Exhibit G.

On motion of Council Member _________________________, seconded by Council Member ________________________, the foregoing resolution was passed and adopted on January 22, 2024, by the following vote:
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RESOLUTION NO. ________
AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ATTEST: APPROVED AS TO FORM:
____________________________ /s/ Jason R. Alcala
Deborah L. Elam Jason R. Alcala
Acting City Clerk City Attorney
Exhibit A - Annual Comprehensive Financial Report
Exhibit B - Alameda County Transportation Commission Measure B Funds Financial Statements
Exhibit C - Alameda County Transportation Commission Measure BB Funds Financial Statements
Exhibit D - Alameda County Transportation Commission Vehicle Registration Fee Program (VRF) Financial Statements
Exhibit E - Independent Accountant’s Report on Applying Agreed-Upon Procedures Related to the Article XIII-B Appropriations Limit Calculation Exhibit F - Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters
Exhibit G - Required Communications
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Cover sheet
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Annual Comprehensive Fi nancial Report

For the Year Ended June 30, 2023

Prepared By

Finance Division

Tina Olson
Administrative Service Director

Erik Peterson Benjie Lin
Finance Manager Accounting Supervisor

David Doyle Ki Lam
Accounting Supervisor Management Analyst

Ann Furtado Laurie Ong
Accounting Supervisor Administrative Specialist

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City of Livermore
Table of Contents
June 30, 2023

Introductory Section
Letter of Transmittal .......................................................................................................................................................... i Directory of City Officials ................................................................................................................................................ xii City of Livermore Organization Chart ............................................................................................................................. xiii Financial Section
Independent Auditor’s Report ......................................................................................................................................... 1 Management’s Discussion and Analysis ........................................................................................................................... 5 Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position .......................................................................................................................................... 23 Statement of Activities ............................................................................................................................................... 24 Fund Financial Statements
Balance Sheet – Governmental Funds........................................................................................................................ 26 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ................................... 27 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ............................... 28 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities .................................................................................................................................... 29 Proprietary Fund Financial Statements
Statement of Net Position – Proprietary Funds ......................................................................................................... 31 Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds .................................... 32 Statement of Cash Flows – Proprietary Funds ........................................................................................................... 33 Fiduciary Fund Financial Statements
Statement of Fiduciary Net Position – Fiduciary Funds ............................................................................................. 35 Statement of Changes in Net Position – Fiduciary Funds........................................................................................... 36 Notes to Financial Statements ....................................................................................................................................... 37 Required Supplementary Information
Notes to Required Supplementary Information ......................................................................................................... 94 Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual – General Fund ................ 96 Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual – Low Income Housing Special Revenue Fund ................................................................................................................................................. 97 Schedule of Changes in the Net Pension Liability and Related Ratios – Miscellaneous Plan .................................... 98 Schedule of the Plan’s Proportionate Share of the Net Pension Liability and Related Ratios as of the Measurement Date – Safety Police Plan ............................................................................................................................................ 99 Schedule of Contributions – Miscellaneous Plan ..................................................................................................... 100 Schedule of Contributions – Safety Police Plan ........................................................................................................ 101 Sch
edule of Changes in the City’s Net OPEB Liability and Related Ratios ................................................................ 102 Other Post-Employment Benefits ............................................................................................................................. 103

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Supplementary Information
Non-Major Governmental Funds ............................................................................................................................. 104 Non-Major Governmental Funds – Combining Balance Sheet................................................................................. 107 Combining Statements of Revenues, Expenditures and Changes in Fund Balances – Non-Major Governmental Funds ........................................................................................................................................................................ 111 Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual – Budgeted Non-Major Funds ........................................................................................................................................................................ 115 Internal Services Funds ............................................................................................................................................. 125 Combining Statements of Net Position – Internal Service Funds............................................................................. 126 Combining Statements of Net Position – Internal Service Funds............................................................................. 127 Combining Statements of Revenues, Expenses and Changes in Net Position ......................................................... 128 Combining Statements of Revenues, Expenses and Changes in Net Position ......................................................... 129 Combining Statements of Cash Flow ........................................................................................................................ 130 Combining Statements of Cash Flow ........................................................................................................................ 131 Custodial Funds ........................................................................................................................................................ 132 Combining Statement of Fiduciary Net Position – Custodial Funds ......................................................................... 133 Combining Statement of Changes in Fiduciary Net Position .................................................................................... 134 Statistical Section
Financial Trends
Net Position by Component ..................................................................................................................................... 136 Changes in Net Position ............................................................................................................................................ 137 Fund Balances of Governmental Funds .................................................................................................................... 140 Changes in Fund Balances of Governmental Fund ................................................................................................... 141 Revenue Capacity
Taxable Sales by Category ........................................................................................................................................ 143 Direct and Overlapping Sales Tax Rates ................................................................................................................... 144 Principal Sales Tax Payers ......................................................................................................................................... 145 Assessed Value and Estimates Taxable Property ..................................................................................................... 146 Direct and Overlapping Governments Property Tax Rates ...................................................................................... 147 Principal Property Taxpayers .................................................................................................................................... 148 Property Tax Levies and Collections ......................................................................................................................... 149 Debt Capacity
Ratios of Outstanding Debt by Type ......................................................................................................................... 150 Direct and Overlapping Governmental Activities Debt ............................................................................................ 151 Le
gal Debt Margin Information ................................................................................................................................ 152 Demographic and Economic Information
Demographic and Economic Statistics ..................................................................................................................... 153 Population Demographics ........................................................................................................................................ 154 Principal Employers .................................................................................................................................................. 155 Operating Information
Full-Time Equivalent City Government Employees by Function/Program ............................................................... 156 Capital Assets Statistics by Function/Program ......................................................................................................... 157 Operating Indicators by Function/Program ............................................................................................................. 158 Water and Sewer Rates ............................................................................................................................................ 159 Water System – Revenues by Class of User ............................................................................................................. 160 Sewer Connection Fees ............................................................................................................................................ 161

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Sewer System – Summary of Historical Operating Results ...................................................................................... 162 Schedule of Insurance .............................................................................................................................................. 163 Livermore Successor Agency
Redevelopment Project – Historical Tax Revenues .................................................................................................. 165 Redevelopment Project – Ten Largest Taxable Property Owners............................................................................ 166 Redevelopment Project – Actual and Projected Tax Revenues and Debt Service Coverage ................................... 167

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Introductory Section
June 30, 2023
City of Livermore
eidebailly.com

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December 31, 2023

Residents of Livermore, California,
honorable Mayor and Members of the City Council:

I am pleased to present the City's Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2023. State law requires that every general-purpose local government publish, within six months of the close of each fiscal year, a complete set of audited financial statements. This report fulfills that requirement for the fiscal year ended June 30, 2023.

Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements.

The data in this report is presented in a manner that is designed to fairly set forth the financial position and results of operations of the City of Livermore (the City). It contains the disclosures necessary to promote in-depth understanding of the City's financial affairs and evaluate its financial condition.

The City’s financial statements have been audited by Eide Bailly LLP located in Menlo Park, California. The independent auditors concluded, based on their audit, that there was a reasonable basis for rendering an unmodified (or “clean”) opinion that the City of Livermore’s financial statements for the fiscal year (FY) ended June 30, 2023, are fairly presented in conformity with generally accepted accounting principles. The independent auditor’s report is the first item presented in the financial section of this report.

In addition to the financial audit, each year the City is required to undergo an audit of federal grant expenditures.

That report is commonly referred to as a Single Audit report and is issued as a separate document and is not included herein. The Single Audit report includes the Schedule of Expenditures of Federal Awards, Findings and Recommendations, and an auditor's report on the internal control structure and compliance with applicable laws and regulations.

The provisions of Governmental Accounting Standards Board (GASB) Statement 34, “Basic Financial Statements— and Management’s Discussion & Analysis—for State and Local Governments” requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements entitled, “Management Discussion & Analysis” (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with the MD&A, which can be found immediately following the report of the independent auditors in the financial section of the ACFR.

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City of Livermore
Letter of Transmittal
June 30, 2023

The City of Livermore, incorporated on April 1, 1876, is located on the southeasterly boundary of Alameda County.

The City of Livermore is a General Law city and has the power to make and enforce ordinances and regulations with respect to municipal affairs to the extent expressly permitted or implied by the California constitution or specific legislation. The City is organized as a council-manager form of local municipal government. The five-member City Council is elected at large for overlapping four-year terms. The City Council includes an elected Mayor whose term of office is two years.

On November 26, 2018, the City adopted an ordinance to transition from an at-large to district-based election system to comply with the California Voting Rights Act (California Government Code Section 34886 and 34871(c)).

The City Council selected a district map dividing the City into four single member districts. Starting with the general municipal election in November 2020, City Council members were elected in City Council districts 3 and 4. Council members were elected in City Council districts 1 and 2 beginning at the general municipal election in November 2022. The Mayor continues to be elected on an at large basis.

The City Council appoints the City Manager and City Attorney to carry out its adopted policies. In addition, the City Council appoints members of advisory Commissions, Committees, and Boards.

The City Council sets priorities and adopts the biennial budget on or before June 30 for each of the ensuing two fiscal years, which serves as the foundation for the City’s financial planning and control. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is maintained at the fund level. The City Manager may transfer resources within a fund. Supplemental appropriations and budget transfers between funds and projects, however, need approval from the City Council. The City's budgetary procedures are further discussed in Note 2 of the notes to the basic financial statements.

The City, with 482.4 full-time equivalent employees, provides a wide range of services to a residential population of 84,793

1. These services include public safety (police, fire, building inspection, water, and sewer); street and landscape maintenance; street lighting; planning and public improvements; public libraries; general administrative services, and municipal airport services. Fire safety services are provided by a Joint Powers Authority, Livermore Pleasanton Fire Department (LPFD). Recreational services are provided to residents by the Livermore Area Recreation and Park District (LARPD), a special district governed by a separately elected board.

The City is also financially accountable for a legally separate Livermore Capital Projects Financing Authority (LCPFA), which is reported within the City’s financial statements as a blended component unit. Additional information on this legally separate entity can be found in the notes to the financial statements (see Note 1).

The information presented in the financial statements is perhaps better understood when it is considered from the broader perspective of the specific environment within which the City operates. _______________________________________
1 Data source: State of California, Department of Finance

EXHIBIT A
257
City of Livermore
Letter of Transmittal
June 30, 2023

The City is the easternmost city in the San Francisco Bay Area situated in the growing Tri-Valley area which contains the cities of Pleasanton, Livermore, Dublin, and San Ramon. Livermore is conveniently located near two major freeways, I-580 and I-680, and is close to the metropolitan areas of San Francisco, Oakland, and San Jose. In addition to its proximity to the Oakland, San Francisco and San Jose International Airports, the City of Livermore owns and operates the Livermore Municipal Airport. This general aviation airport services private and corporate customers, and records more than 197,000 takeoffs and landings annually.

Livermore Valley Wine Country is one of the oldest wine regions in California. On November 22, 2021, the Livermore Valley Wine Heritage District was formed to provide funding for marketing and education efforts to increase winery sales revenue, and other improvements and activities for the 46 assessed wineries in Livermore Valley. Livermore is surrounded by award-winning wineries, farmlands, and ranches that mirror the valley’s history.

Less than an hour east of San Francisco, Livermore Valley Wine Country’s picturesque canyons and ridges welcome locals and visitors to the valley’s vineyards and tasting rooms, which are an integral part of Livermore’s quality of life. Popular wine bars, tasting rooms and boutique wine shops thrive in downtown Livermore as well.

Livermore is the home of two world-renowned national laboratories: Lawrence Livermore National Laboratory (LLNL) and Sandia National Laboratories (SNL). The laboratories are premier science and technology research facilities, which conduct some of the nation’s most innovative research related to several national programs, including security, combustion and renewable energy, water resources and biosciences. The presence of the laboratories attracts other technology and industrial companies as well as professional services businesses. In addition, one of the largest retail outlet malls in California is in Livermore and is home to over 180 leading designer and name brand outlet stores, as well as a growing number of small retailers.

In June 2023 the City’s unemployment rate of 3.3% continued to rank below the average unemployment rates of the nation (3.6%), county (4.2%) and state (4.9%). Employment in Livermore has historically been less volatile due to the presence of major public sector employers and their contractors. Besides the City itself, two national laboratories, a school district, a community college, and a park and recreation district are major employers in the City. The following chart shows a 15-year comparison of unemployment rates in the state and local areas as well as the U.S. by fiscal year.

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258
City of Livermore
Letter of Transmittal
June 30, 2023

Source: State of CA – Employment Development Department

A key indicator of the local economy is retail sales. Sales tax revenues are highly sensitive to economic conditions such as levels of unemployment, job growth, consumer confidence, per-capita income, and tourism.

It is important to be aware that approximately 25% of the City’s sales tax revenue is derived from the San Francisco Premium Outlets which focuses on high-end consumer goods. Many of the shoppers are tourists visiting the San Francisco Bay area. Out of the 4.8 million Livermore visitors, 2.7 million or 56% visited the San Francisco Premium Outlets (source: Placer AI). The 2023 sales tax revenue figures for the Outlets show that sales have gone back to pre-pandemic levels.

Livermore’s taxable sales in second quarter of 2023 were 1.3% higher than the same quarter in 2022 with majority of gains coming from the Business and Industry Group. This increase is due to the relatively high fuel prices occurring during this quarter. The chart below illustrates the City’s sales tax revenue for FY 2022-23 by major industry group.

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 JUNE 30,
Unemployment Rate
U.S. State
County Livermore

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259
City of Livermore
Letter of Transmittal
June 30, 2023

Source: HdL

The local real estate market and property value assessments are key indicators of the local economy. Property tax is less volatile compared to sales tax. The City’s assessed property valuation increased by 7.5% to $23.9 billion in FY 2022-23 compared to a 4.6% increase in the previous fiscal year.

Livermore’s real estate market continued to strengthen during FY 2022-23. As reported by the East Bay Association of Realtors, the median sales price for a single-family residence in Livermore remained the same - $1.2 million in both June 2023 and June 2022 likely due to increased interest rates.

Source: East Bay Association of Realtors

State and
County Pools
18%
General
Consumer
Goods
24%Business and
Industry
23%
Autos and
Transportation
12%
Building and
Construction
9%
Rest…
Fuel and …
Food and Drugs
2%
$300,000
$500,000
$700,000
$900,000
$1,100,000
$1,300,000
Median Single family Home Prices

EXHIBIT A
260
City of Livermore
Letter of Transmittal
June 30, 2023

In its November 9, 2023 Publications, the Conference Board forecasts that US economic growth will slow down under mounting pressure early next year, leading to a very short and shallow recession. This outlook is associated with numerous factors, including elevated inflation, high interest rates, dissipating pandemic savings, rising consumer debt, and the resumption of mandatory student loan repayments. They forecast that real GDP will grow by 2.4 percent in 2023, and then fall to 0.8 percent in 2024.

Although Livermore’s current financial picture is positive, there are plenty of reasons for concern when we look out further on the financial horizon. The City is on a steady financial course, but still strives to achieve long-term financial stability, which is linked to adequately funding its long-term liabilities. While General Fund reserves are currently fully funded, future liabilities, increasing employee costs, and deferred infrastructure maintenance temper the City’s progress.

The single largest unaddressed financial challenge the City faces is the maintenance and replacement of its infrastructure. The City is in the process of developing a comprehensive infrastructure repair and replacement plan so that adequate resources are available when needed. In the meantime, the City established two capital reserves in June 2023 – Existing Asset Maintenance and Repair Reserve and New and Replacement Asset Reserve. As of June 30, 2023, there was a combined balance of $36.4 million in capital reserves. The City funds capital reserves through year-end surpluses and, depending on the City’s budget status, annual budget allocations.

Rising pension costs will continue to be a challenge for most public agencies. The City contributes to the California Public Employees’ Retirement System (CalPERS) for its Miscellaneous and Safety Police retirement plans. CalPERS implemented a 20-year rate amortization and a five-year phase-in effective from fiscal year 2016-17. The City’s “second tier” pension plan (2% at 60) coupled with the Public Employee Pension Reform Act (PEPRA) will reduce employee pension costs in the long-term. City staff will continue to monitor CalPERS changes and suggest prudent strategies to address these increases as the opportunities arise.

The FY 2023-25 Budget allocated approximately $20 million from General Fund resources for capital improvements, representing a significant investment in facility repairs and replacements, sidewalk repairs, street tree removal and replacement, wall repairs, and stormwater projects.

The City of Livermore, along with the San Francisco Bay Area and much of California, is in the middle of a homelessness crisis. The prolonged economic expansion, low interest rates through most of 2022, and housing shortage led to median home values skyrocketing throughout the Bay Area. As mentioned above, the median home price for a single-family home in Livermore is $1.2 million on June 30, 2023. To purchase a median priced home with 10% down requires approximately $120,000 for down payment, $36,000 for closing costs, and approximately $191,600 in annual household income. The average rent in Livermore for a two-bedroom apartment is approximately $2,600 per month. A household will need an annual average income of $104,000 to afford this level of rent.

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261
City of Livermore
Letter of Transmittal
June 30, 2023

A five-year General Fund Financial Plan is included in the City’s adopted budget. This is a valuable financial planning management tool, especially in challenging financial times, which assists the City Council in setting priorities and educating the community on the long-term state of the City’s finances. Inflation and historical growth rates are used to predict levels of expenditures. The expenditure base and revenue base are then adjusted for discrete changes that may occur within the five-year forecast period such as the addition of a major employer, retail center, hotel and/or additional housing development.

Perhaps the best measure of the City’s ability to withstand an economic downturn while maintaining current service levels and building sustained growth for the future is its fund balance reserves. In general, a city should maintain sufficient reserves to mitigate potential emergency scenarios. The City committed to maintaining General Fund reserves equal to at least 30% of annual General Fund budgeted expenditures and transfers related to debt service.

The City has maintained reserves equal to at least 30% since 2008 except for 2013 when reserves were equal to 29%.

As part of the biennial budget process, the City Council sets goals and priorities for the two-year budget cycle.

Council goals include high-priority tasks or programs that the City Council intends to address during the budget plan cycle, though attainment of these goals may take several years. The key initiatives included in the adopted biennial budget for FY 2021-23 are as follows:

1. Asset Management and Stormwater: Establish a comprehensive Asset Management Program with a focus on stormwater, ensuring the community continues to receive vital services through a sustainable infrastructure strategy.

2. Downtown: Enhance the City’s vibrancy by completing critical projects downtown, ensuring the right balance of local amenities to support quality of life.

3. General Plan Update: Comprehensively Update the Livermore General Plan, including the Housing Element and Programmatic Environmental Impact Report (EIR), to address changes in regional and state policy, market trends, and community preferences, to plan for growth and conservation for the next 25 years to support and enhance Livermore’s quality of life.

4. Homelessness and Affordable Housing: Establish a homelessness strategy, engaging local partners to develop a coordinated response, and expand diversity of affordable housing opportunities.

5. Modernization, Training and Workplace Enhancements: Develop a systematic approach to modernizing the City’s aging business systems, reviewing processes for alignment with industry best practices, and providing the City’s workforce with the tools and training necessary to deliver services effectively and efficiently to the community.

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262
City of Livermore
Letter of Transmittal
June 30, 2023
The C
ity made extensive progress towards each of these priorities. Some of the achievements realized during the current fiscal year are as follows:
• Completed construction of Vineyard 2.0: 23 supportive, affordable housing units for formerly homeless individuals with an approximately 10,000 S.F. homeless services facility and community hot meal/dining facility.
• Across L Street from the L Street Garage that is under construction are the Legacy Apartments that are now leasing 222 market rate apartments and approximately 15,000 square feet of ground floor commercial space on First Street. The Legacy project also constructed Flex Zone/Streetscape improvements along both sides of First Street that included wide sidewalks, double rows of street trees, decorative trellises, and sidewalk furniture.
• City Council adopted the updated Housing Element, covering the period from 2023 to 2031. The State Department of Housing and Community Development certified the Housing Element on March 24, 2023. • The comprehensi
ve General Plan Update, Imaging Livermore 2045, made progress toward identifying a preferred land use scenario and developing new policies. Five larger focus areas were developed by the General Plan Advisory Committee and reviewed by the Planning Commission and City Council. The City conducted extensive community engagement during the spring, summer and fall of 2023 on the focus areas and will develop a preferred land use scenario for consideration by the public, advisory bodies, and City Council in 2024.
• On November 8, 2022, Livermore voters approved Measure P to extend city sewer service beyond the South Livermore Urban Growth Boundary. The purpose of the service is to protect ground water quality and facilitate development of wine country land uses envisioned under the City's South Livermore Valley Specific Plan and Alameda County's South Livermore Valley Area Plan. City and County staff continue to coordinate funding and design of the system.
• On September 20, 2022, the Livermore Planning Commission approved renovation of the historic building located at the northwest corner of South Livermore Avenue and Second Street. The former SBC Building will be the new home of Farmers Union. Taking a cue from the same restaurant in San Jose, which is a staple in their downtown, the cuisine will feature house-smoked meats, seasonal and local vegetables, and comfort food classics. A roof top deck and prominent street presence will contribute to the downtown's
revitalization at this prominent corner.
• The City Council adopted the Isabel Neighborhood Specific Plan in November 2020. The Specific Plan envisions a complete neighborhood around the future Valley Link train station. Three residential projects approved in the summer of 2022 and spring of 2023 are now under construction: 89 condominiums and 210 apartments in Shea Portola by Shea Homes and 184 condominiums in two projects by DeNova Homes. Applied for and under review by staff are 139 townhomes and 110 affordable rentals on the Cornerstone Property and approximately 1,300 units and 92,000 sq. ft. of nonresidential uses on 45 acres owned by Harridge.

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263
City of Livermore
Letter of Transmittal
June 30, 2023

• Completed 274 space, three level, I Street Garage that integrated with the existing parking garage serving the Livermore Valley Center.

• Repaired storm damage along city creeks and trails from last season's storms.

• Constructed downtown trash enclosure and made upgrades to downtown surface parking lot to serve downtown businesses along First Street and organize solid waste service and access to the areas along Veterans Way and around Stockmen’s Park.

• Installed new crosswalks and repaired multi use trails.

• Installed public sewer and water systems on Trevarno Road to replace old and failing lines.

• Began construction on major primary and secondary treatment system upgrades at the Water Reclamation Plant.

• Demolished the old City Council Chambers.

• Repaired the storm drains downstream of the Granada Channel.

• Began upgrades to HVAC system at City Hall and the Police Building.

• Implemented on-line permitting through the City’s Accela Citizen Access, ACA for the following permit categories: mechanical, electrical, roofing, water heaters, photovoltaic, furnaces, and EV chargers.

• Completed a pilot leak detection program using satellite and acoustic technology to save 23 million gallons of drinking water per year.

• Refreshed striping of the airfield taxiways and vehicle access roads.

• Implemented a new Flight Tracking and Noise Reporting software.

• Implemented a new Airport Leasing and Development Policy.

• Celebrated Earth Day by distributing 36 tons of compost to 850 households through a Compost Giveaway.

• Began
implementation of the Enterprise Resource Program (ERP) integrated financial and human resources system that is expected to be mostly complete by July 1, 2024.

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264
City of Livermore
Letter of Transmittal
June 30, 2023

Fund Balance Policy In June 2016, the City Council adopted a resolution updating the Livermore Fund Balance Policy to maintain the fiscal stability of the organization, to help maintain the City’s credit worthiness, and to provide funds for economic uncertainties, contingencies, and cash flow requirements. The General Fund Financial Stabilization Operating Reserve is set at 15 percent of budgeted operating expenditures plus debt service transfers to be used in a catastrophic event or in a major emergency or in periods of severe fiscal crisis. The General Fund Economic Uncertainty Reserve is set at 13.5 percent of budgeted operating expenditures plus debt service transfers to be used during times of severe economic distress such as protracted recessionary periods or other impactful unforeseen events which greatly diminish the financial ability of the City to deliver core services. Minimum unassigned fund balance is set at 1.5 percent of the budgeted operating expenditures plus transfers for debt service.

Infrastructure Repair and Replacement Funding As previously noted, Council adopted a resolution creating two capital reserves for general government-owned facilities and infrastructure to help ensure there is sufficient funding to address the City’s capital needs – Existing Asset Maintenance and Repair Reserve Fund and the New and Replacement Aset Reserve Fund.

Debt Management and Disclosure policy The City’s Debt Management and Disclosure Policy is intended to ensure compliance by the City with all applicable federal and state securities laws and regulations; to achieve the highest practical credit ratings within the context of the City’s financing needs and financing capabilities; and to establish maximum limits on the amounts of debt outstanding and the amount of annual debt service the City will consider.

This policy sets a ceiling for the cumulative annual payments related to debt from the General Fund at 7.5 percent of the previous fiscal year's General Fund revenue.

Timeliness of Financial Reporting Practices The City believes that time is of the essence in the publication of Budget and Annual Comprehensive Financial Report documents. The budget is adopted before June 30 and loaded into the financial system on the first day of the new fiscal year. The ACFR publication date is generally within 180 days of the close of the fiscal year. The City’s major financial documents are available on the web at www.livermoreca.gov.

EXHIBIT A
265
City of Livermore
Letter of Transmittal
June 30, 2023

GFOA Financial Reporting Certificate of Achievement

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 Livermore for its annual comprehensive financial report for the fiscal year ended June 30, 2022. This was the 34th consecutive year that the City of Livermore has achieved this prestigious award. To be awarded a Certificate of
Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principles (GAAP) and applicable legal
requirements.

A Certificate of Achievement is valid for a period of one year only. We believe that our current annual comprehensive financial report continues to meet the Certificate of
Achievement Program’s requirements, and we are
submitting it to GFOA to determine its eligibility for another certificate.

This report represents the culmination of dedicated efforts by City staff both inside and outside of the Finance Division. The preparation of this report on a timely basis could not have been accomplished without the hard work and team effort of the entire financial reporting team. I wish to thank all departments for their assistance in providing the data necessary to prepare this report. I would like to express my appreciation and thanks to Ahmad Gharaibeh and his staff at Eide Bailly LLP. Credit is also due to the mayor and the City Council members for their unfailing support for maintaining the highest standards of professionalism in the management of the City’s finances.

Very truly yours,

Tina Olson
Administrative Services Director

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266

Directory of City Officials
As of June 30, 2023

Elected Officials

Executive Team

Marianna Marysheva Jason Alcala
City Manager City Attorney

Assistant City Manager Christine Martin
Deputy City Manager/City Clerk Marie Weber
Director of Administrative Services Tina Olson
Director of Community Development Paul Spence
Director of Innovation & Economic Development Brandon Cardwell Director of Library Services Anwan Baker
Director of Public Works Scott Lanphier
Fire Chief Joe Testa
Police Chief Jeramy Young

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267
Organization Chart
As of June 30, 2023

Residents of
Livermore
Mayor/ City
Council
City Manager
Administrative
Services
Cybersecurity
Finance
Human
Resources
Information
Technology
Community
Development
Building &
Safety
Engineering
Housing &
Human Services
Planning
Fire Department
Administration &
Fire Protection
Emergency
Operations
Innovation and
Economic
Development
Library Services Police
Department
Horizons
Public Works
Airport
Maintenance
Water Resources
City Attorney
Risk
ManagementCity Clerk

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Financial Section
June 30, 2023
City of Livermore
eidebailly.com

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I
ndepe
ndent Auditor’s Report
To Honorab
le Mayor and Members
of the City Council of the City of Livermore
Livermore, California
Report
on the Audit of the Financial Statements
Opinio
ns
We have au
dited the accompanying financial statements of the governmental activities, the business- type acti
vities, each major fund, and the aggregate remaining fund information of the City of Livermore, California (City), 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 op
inion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type acti vities,
each major fund, and the aggregate remaining fund information of the City, as of June 30, 2023, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis f
or Opinions
We con
ducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards).

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

Correct
ion of an Error
As disc
ussed in Note 19 to the financial statements, the prior year financial statements contained an error that was discovered during the current year. The prior year financial statements underreported certain notes receivables that were tracked by the City’s contractor. Accordingly, the beginning net position of the governmental activities, the fund balance of the Low Income Housing-Special Revenue Fund and the fund balance of the Nonmajor Governmental Funds has been restated to include the additional beginning balances of the notes receivables. Our opinions are not modified with respect to this matter.

What inspires you, inspires us. | eidebailly.com
4040 Campbell Ave., Ste. 200 | Menlo Park, CA 94025-1053 | T 650.522.3400 | F 650.645.7393 | EOE What inspires you, inspires us. | eidebailly.com
4040 Campbell Ave., Ste. 200 | Menlo Park, CA 94025-1053 | T 650.522.3400 | F 650.645.7393 | EOE

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A
doption of a New Accounting Standard

As discussed in Note 19 to the financial statements, the City has adopted the provisions of Governmental Accounting Standards Board (GASB) Statement No. 96, Subscription-Based Information Technology Arrangements, for the year ended June 30, 2023. Accordingly, a restatement has been made to the Governmental Activities, Business-Type Activities, the Water, the Sewer and the Storm Water funds’ net position as of July 1, 2022, to restate the beginning net position and fund balances.

Our opinions are not modified with respect to this matter.

Responsibilities of Management for the Financial Statements

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

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

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS 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 GAAS and Government Auditing Standards, we:

• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

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273
• C
onclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

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

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual, Schedule of Changes in the Net Pension Liability and Related Ratios, Schedule of the Plan’s Proportionate Share of the Net Pension Liability and Related Ratios, Schedule of Pension Contributions, Schedule of Changes in the City’s Net OPEB Liability and Related Ratios, and Schedule of OPEB Contributions be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual fund financial statements and schedules are the responsibility of management and were derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

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O
ther Information

Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections 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 financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between 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 uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated December 31, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.

Menlo Park, California
December 31, 2023

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City of Livermore
Management’s Discussion and Analysis
June 30, 2023

Management’s Discussion and Analysis

The purpose of the Management’s Discussion and Analysis is to offer to the reader of the City’s financial statements a narrative overview and analysis of the financial activities of the City of Livermore for the fiscal year ended June 30, 2023. The reader is encouraged to consider the information presented here in conjunction with the additional information furnished in the letter of transmittal, which can be found on pages i-xi of this report.

Financial Highlights

• The assets and deferred outflows of resources of the City of Livermore exceeded its liabilities and deferred inflows of resources at the close of the fiscal year 2023 by $702.9 million (net position). Of this amount, $71.8 million represents unrestricted net position, which may be used to meet the City’s ongoing obligations to citizens and creditors.

• The City’s net position increased 5.64 percent (or $37.6 million) for the current fiscal year to $702.9 million from a net position balance of $665.3 million in the prior fiscal year of which $30.8 million was generated by governmental activities and $6.8 million was generated by business-type activities.

• The City’s Net Pension liability increased $71.7 million from $83.5 million in the prior year to $155.2 million in the current fiscal year, largely changes in value of investment returns of the City’s pension plan with CalPERS.

CalPERS reports have a measurement date one year behind the financials, and the City is expecting the Net Pension liability to increase slightly in next year’s financials due to investment gains underperforming in FY23.

• The City’s Net OPEB liability decreased $12.6 million from $42.9 million in the prior year to $30.3 million in the current fiscal year, largely due to changes in investment returns of $5.7 million in fiscal year 2023.

• The City had a total unrealized loss on investments for the year of $17.4 million for fiscal year 2023. This is coming from the City’s portfolio having a market value loss of $13.1 million in fiscal year 2022, and a loss of $4.3 million in fiscal year 2023. The decline was due to continued federal rate hikes to combat inflation. The City should see this number narrow in future years as maturing investments are reinvested at higher rates.

The City did not incur any actual losses. Actual investment income was $5.6 million in fiscal year 2023.

• At the close of the current fiscal year, the City’s governmental funds reported combined fund balances of $274.6 million, an increase of $60.7 million from the prior fiscal year’s fund balance of $213.9 million due to issuance of new debt for $40.1 million along with an increase in the City’s property tax revenues and other expenditure savings.

• At the end of the current fiscal year, unrestricted fund balance (the total of the committed, assigned, and unassigned components of fund balance) for the General Fund was $78.2 million, or approximately 61.3 percent of total general fund expenditures, and transfers out.

Overview of the Financial Statements

This discussion and analysis are intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements are comprised of three components: government-wide financial statements, fund financial statements, and notes to the basic financial statements. This report also contains supplementary information in addition to the basic financial statements.

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City of Livermore
Management’s Discussion and Analysis
June 30, 2023

Government-wide Financial Statements

The government-wide financial statements are designed to provide the reader with a broad overview of the City’s finances, in a manner similar to a private-sector business.

The Statement of Net Position presents information on all the City’s assets, deferred outflows, liabilities, and deferred inflows with the difference reported as Net Position. Over time, increases or decreases in Net Position may serve as a useful indicator of whether the financial position of the City is improving or declining.

The Statement of Activities presents information showing how the City’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 flows in future fiscal periods. This is known as the full accrual basis of accounting.

Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or most of their costs through user fees and charges (business-type activities). The governmental activities of the City include the following functions: General Government (city council, city manager, city attorney, city clerk, finance, human resources), fire, police, public services, community development, economic development, and library. The business-type activities of the City include airport, water, sewer, and stormwater.

The government-wid
e financial statements include not only the City itself (known as the primary government) but also the activities of its legally separate component unit, the Livermore Capital Projects Financing Authority (LCPFA).

Since the City Council acts as the governing board for LCPFA and because this component unit functions as part of the City government, its activities are blended with those of the primary government. The government-wide financial statements can be found on pages 23-24 of this report.

F
und Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources that have been designated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All the funds of the City can be divided into three categories: governmental funds, proprietary funds and fiduciary funds.

Governmental Funds
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. This information may be useful in evaluating the City’s near-term financial requirements. The basis of accounting in governmental funds is known as the modified accrual basis.

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City of Livermore
Management’s Discussion and Analysis
June 30, 2023

The focus of fund financial statements is narrower than that of government-wide financial statements. It is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, the reader 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 changes in fund balances provide a reconciliation to facilitate the comparison between governmental funds and governmental activities. This is required because the government-wide statements are prepared on the full accrual basis of accounting while the fund statements are prepared on the modified accrual basis of accounting.

The governmental fund financial statements provide separate information for all major funds, while non-major funds are combined in a single column. In the FY 2022-23, the City identified three major governmental funds, which are the General Fund, the Low-Income Housing Fund, and the 2022 COPS Construction Capital Projects Fund.

Proprietary Funds
The City maintains two different types of proprietary funds. 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 airport, water, sewer, and stormwater activities. Internal service funds are used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for the management of its retained risk for general liability and workers’ compensation, and for its fleet and equipment services, information technology, cybersecurity, and facilities rehabilitation.

Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for all four of the City’s enterprise funds. These funds are Airport, Water, Sewer, and Stormwater. All of the City’s internal service funds are combined into a single, aggregated presentation in the propriety fund financial statements. Individual fund data for the internal service funds is provided in the Supplemental Information section of this report.

Fiduciary Statements
Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds activities are excluded from the City’s government-wide financial statements because the City cannot use these assets to finance its own operations.

The City maintains two different types of fiduciary funds. The Private-Purpose Trust Fund is used to account for the assets and liabilities held in trust for the Successor Agency to the former Redevelopment Agency; and Custodial Funds are used to account for monies collected and disbursed in a custodial capacity for the Livermore Pleasanton Fire District JPA and other agencies. The fiduciary fund financial statements can be found on pages 35-36.

Notes to the Basic Financial Statements

The notes to the basic financial statements provide important additional information that is essential to a full und
erstanding of the data reported in the government-wide and fund financial statements. The notes to the basic financial Statements are found on pages 37-93.

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June 30, 2023

Other Information

In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information related to the City’s changes in net pension liability, employer’s contribution to the pension plans, the Schedule of Changes in the City’s OPEB Liability, the Schedule of Contributions for other post- employment benefits, and the budgetary comparison schedules for major governmental funds. Required supplementary information can be found on pages 94-103.

Individual fund data for non-majo
r governmental funds, internal services funds, and fiduciary funds are presented immediately following the required supplementary information beginning on pages 104-134 of this report.

G
overnment-wide Financial Analysis

As noted earlier, the City’s net position may serve over time as a useful indicator of whether the City’s financial position is improving or deteriorating. Other factors, such as market conditions, should be considered when measuring the City’s overall financial position. This analysis focuses on the net position and changes in net position of the City as a whole. As shown in the chart below, total government-wide assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $701.2 million, at the close of the most recent fiscal year.

Long-term
liabilities, which consists mostly of claims, debt, compensated absences, pension, and postemployment benefit obligations, increased by $97.7 million from the previous year for governmental and business-type activities
combined. The City’s debt increased by $35.8 million primarily due to the new issuance of the certificates of participation for $40.2 million, as discussed later under Debt Administration section. The claims liability increased $3.0 million due to increases in actuarially determined claims liability. The increase in the City’s total pension liability of $71.7 million was partially offset by a decrease of $12.6 million in net OPEB liability.

2023 2022 2023 2022 2023 2022
Assets:

Current and other assets 293.8$ 218.9$ 167. 7$ 165.5$ 461.5$ 384.4$ Capital assets 389.5 383.9 146. 5 147.8 536.0 531.7 Total assets 683.3 602.8 314. 2 313.3 997.5 916.1 Total Deferred outflows of resources 52.4 25.6 6. 9 3.1 59.3 28.7 Liabilities:

Long-term liabilities outstanding 257.0 167.2 33. 0 25.1 290.0 192.3 Other liabilities 33.0 25.5 6 .7 11.1 39.7 36.6 Total liabilities 290.0 192.7 39. 7 36.2 329.7 228.9 Total Deferred inflows of resources 11.2 42.5 12. 9 18.6 24.1 61.1 Net position:

Net investment in capital assets 330.0 329.9 139. 2 140.4 469.2 470.3 Restricted 196.0 137.9 - - 196.0 137.9 Unrestricted (91.6) (74.6) 129.2 121.2 37.6 46.6 Total net position 434.4$ 393.2$ 268. 4$ 261.6$ 702.8$ 654.8$ City of Livermore Net Position
(in Millions)
Governmental actitivies Business-type activities Total

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280
City of Livermore
Management’s Discussion and Analysis
June 30, 2023

By far, the largest portion of the City’s net position ($469.2 million or 66.75 percent) reflects its investment in capital assets (e.g., land, buildings, machinery, equipment, vehicles, and infrastructure), less any related outstanding debt that was used to acquire those assets. The City uses these capital assets to provide a variety of services to its citizens. Accordingly, these assets are not available for future spending. Although the City’s investment in capital assets is reported net of related debt, it should be noted that the resources used to repay this debt must be provided from other sources, since the City is unlikely to use the capital assets themselves to liquidate these liabilities.

An additional portion of the City’s net position ($196.0 million or 27.89 percent) represents resources that may be used only for specified capital projects, special revenue programs, or landscape and maintenance. The restrictions on these funds were placed there by outside agencies and are not subject to change by the City.

At the end of the current fiscal year, except for unrestricted net position, the City is able to report positive balances in all reported categories of net position, both for the government as a whole, as well as for its separate business- type activities. The unrestricted category for governmental activities had a deficit balance of $91.6 million as of the end of the current fiscal year. The deficit is caused primarily by the approximately $88.5 million for the unfunded pension liabilities and $29.3 million in postemployment liabilities including the related deferred inflows and outflows of resources. The unfunded net pension liabilities and net OPEB liabilities will be funded annually in accordance with actuarially determined contribution rates. The positive component of the governmental activities unrestricted net position, excluding the effects of pension and OPEB liabilities, is $26.2 million and may be used to meet the City’s ongoing obligations to citizens and creditors.

Overall, the City’s net position increased by $37.6 million to $702.9 million in the current fiscal year from $665.3 million for the prior fiscal year. The reasons for this overall increase are discussed in the following sections for governmental activities and business-type activities.

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City of Livermore
Management’s Discussion and Analysis
June 30, 2023

2023 2022 2023 2022 2023 2022
Revenues
Program revenues:

Charges for services 16.7$ 16.2$ 52.2$ 50.6$ 68.9$ 66.8$ Operating contributions and grants 15.8 17.8 0.6 0.5 16.4 18.3 Capital grants and contributions 3.3 4.9 2.7 1.7 6.0 6.6 Total program revenues 35.8 38.9 55.5 52.8 91.3 91.7 General revenues:

Property taxes 44.8 40.8 - - 44.8 40.8 Sales taxes 39.0 39.9 - - 39.0 39.9 Other taxes 25.9 18.4 - - 25.9 18.4 Intergovernmental 12.2 10.0 - - 12.2 10.0 Investment income 4.0 (7.7) 0 .8 (3.0) 4.8 (10.7) Miscellaneous 8.8 8.0 - - 8.8 8.0 Total general revenues 134.7 109.4 0 .8 (3.0) 135.5 106.4 Total Revenues 170.5 148.3 56.3 49.8 226.8 198.1 Expenses
General Government 15.5 14.3 - - 15.5 14.3 Fire 25.4 21.1 - - 25.4 21.1 Police 41.0 39.0 - - 41.0 39.0 Public Works 21.4 23.8 - - 21.4 23.8 Community Development 21.5 26.6 - - 21.5 26.6 Economic Development 2.9 2.6 - - 2.9 2.6 Library 6.9 6.3 - - 6.9 6.3 Interest on long term debt 2.8 1.1 - - 2.8 1.1 Airport - - 3.0 3 .5 3.0 3.5 Water - - 18.3 17. 1 18.3 17.1 Sewer - - 25.2 23. 8 25.2 23.8 Stormwater - - 5.3 5 .1 5.3 5.1 Total expenses 137.4 134.8 51.8 49.5 189.2 184.3 Increase (Decrease) in Net Position
before transfers 33.1 13.5 4.5 0.3 37.6 13.8 Transfers, net (2.3) (2.9) 2 .3 2.9 - - Changes in net position 30.8 10.6 6.8 3.2 37.6 13.8 Net position - Beginning as restated 403.7 382.6 261.6 258.4 665.3 641.0 Net position - Ending 434.5$ 393.2$ 268.4$ 261.6$ 702.9$ 654.8$ Changes in Net Position (in Millions)
Governmental Activities Business-Type Activities Total

Governmental Activities

The Statement of Activities presents program revenues and expenses, and general revenues in detail. The City’s governmental activities Net Position was $434.4 million on June 30, 2023, an increase of $30.7 million over the 2022 balance of $403.7 million.

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282
City of Livermore
Management’s Discussion and Analysis
June 30, 2023

Total revenues of governmental activities were $170.5 million. The largest component of total revenue is taxes at $109.7 million, making up 64.3 percent of total revenues. As shown in table on the previous page, $35.8 million, or

21.0 percent, of the City’s Governmental revenue in the current year came from program revenues out of which charges for services accounted for 9.8 percent of total governmental revenues while Operating and Capital Grants made up 11.2 percent of the total governmental revenues.

Program revenues for governmental activities decreased by $3.1 million during the year due to a reduction of $3.6 million for total grants and contributions, offset by a $0.5 million increase in charges for services. General revenues experienced an increase of $25.3 million in the current year primarily due to an increase of $10.6 million in taxes, $0.8 million in miscellaneous, and $11.7 million in investment income. You can find additional details under the Fund Financial Statements Analysis.

The sources of the revenues shown previously are portrayed in the chart below by percentage for the Governmental Activities. The City’s reliance upon tax revenues is evident from the sources of revenue chart, indicating that more than half of the City’s total governmental activities revenue comes from general tax revenues. This is consistent with the nature and purpose of governmental funds, particularly in the General Fund, where programs are largely supported by general taxes.

Citywide Governmental Activities

Total expenses were $137.5 million in the current fiscal year, an increase of $2.7 million from the prior year. The largest increase was in interest on long-term debt of $1.7 million, while the largest decreases were in Public Works and Community Development of $1.1 and $6.3 million, respectively.

The Functional Expenses chart above shows Police and Fire accounted for 48.3 percent of total governmental expenses while Community Development accounted for 14.7 percent, Public Works 16.5 percent and other governmental programs 20.4 percent.

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283
City of Livermore
Management’s Discussion and Analysis
June 30, 2023

As shown in the graph below, during the current fiscal year, the cost of all activities except for Community Development exceeded the revenue generated by those programs. This is to be expected as other general sources of revenues such as property taxes, sales taxes, other taxes, and investment income are used to subsidize the gap between program expenditures and program revenues.

Business-type Activities

For the City’s business-type activities, the results for the current fiscal year were positive in that the overall net position increased to reach an ending balance of $268.4 million. The total increase in net position for business-type activities was $6.8 million or 2.6 percent from the prior fiscal year. Overall business type program revenues increased by $2.7 million from the prior year level of $52.8 million to $55.5 million in the current fiscal year. The increase was mostly due to an increase of $1.6 million in charges for services.

Program expenses increased by $2.3 million to a total of $51.8 million in the current year. The major reason for the increase is related to increased pension expense in the fiscal year coming from their proportionate share of the CalPERS total pension liability.

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City of Livermore
Management’s Discussion and Analysis
June 30, 2023

Analysis of the Fund Statements

The table below summarizes the activities and balances of governmental funds. As of June 30, 2023, the City’s governmental funds reported combined fund balances of $274.6 million, an increase of $60.7 million from the prior year ending fund balance of $213.8 million. Approximately 0.2 percent of this amount ($0.6 million) is available for spending at the government’s discretion (unassigned fund balance). See Note 10 for detailed classifications of the City’s governmental fund balances.

During the current fiscal year, the City experienced an overall increase of $20.7 million in revenues for the governmental funds primarily due to increase the property tax, other tax and interest income revenues.

Governmental Funds 2023 2022
Total assets 307.5$ 229.6$
Total liabilities 24.4 19.6
Total deferred inflows 8.5 31.0
Total fund balances 274.6 179.0
Total revenues 168.4 147.7
Total expenditures 147.0 162.9
Total other financing sources (uses) 39.3 (1.8) Financial Highlights at Fund Level at June 30
(in Millions)

The following are contributing factors affecting the revenues this fiscal year:

• Property tax revenues grew $4.0 million in the current fiscal year primarily from assessed valuation growth.

• Overall sales tax revenues decreased approximately $0.9 million compared to the prior fiscal year as inflation and rising interest rates slowed large purchases.

• Use of money and property increased $6.3 million as interest rates rose throughout the year and the year end market value adjustment loss narrowed in the current year.

• Miscellaneous revenue increased $6.1 million, mostly coming from a settlement with the two national labs for past business license taxes.

In fiscal year 2022-23 expenditures for governmental funds totaled $147.0 million, a decrease of $15.9 million (or

10.8%) from the fiscal year 2021-22 total of $162.9 million. Over half of this increase was due to a decrease of $9.5 million in capital projects and an increase of $2.2 million in debt service. The rest of the decreases were due to salary savings and decreased repair and maintenance expenses with Community Development leading the way with a decrease of $8.8 million followed by public works with a decrease of $2.6 million.

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285
City of Livermore
Management’s Discussion and Analysis
June 30, 2023

Analyses of Major Governmental Funds

General Fund

The General Fund is the chief operating fund of the City of Livermore. At the end of the current fiscal year, the total fund balance of the General Fund was $83.9 million, out of which $0.6 million was unassigned.

As a measure of the General Fund liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total General Fund expenditures and transfers-out. The unassigned fund balance of $0.6 million represents approximately 0.5 percent of total General Fund expenditures and transfers out, while the total fund balance of $83.9 million represents approximately 70.36 percent of the same amount.

The non-spendable fund balance of $5.7 million represents balances set aside for specific items and therefore, are unavailable. The Committed Fund Balance of $18.5 million represents Financial Stabilization Operating Reserve which can only be used in a catastrophic event, major emergency, or in periods of severe fiscal crisis. The Assigned General Fund Balance of $59.1 million represents the Economic Uncertainty Reserve, CIP, and Infrastructure Replacement reserve. The Economic Uncertainty Reserve will be used during times of protracted recessionary periods. The shift in Unassigned Reserves in fiscal year 2021-22 to Assigned Reserves in fiscal year 2022-23 comes from Council’s approval of Assigning the budgetary surplus to the Infrastructure Reserve in fiscal year 2022-23. See Note 10 for further information.

Fund Balance Categories- General Fund

$-
$10
$20
$30
$40
$50
$60
$70
Nonspendable Committed Assigned Unassigned

MILLIONS
2023
2022

Local taxes, including property tax, sales taxes, transient occupancy tax, and business license taxes are the primary revenue source for the General Fund, constituting 73.9 percent of revenues in the fiscal year 2022-23. These revenue sources are highly susceptible to economic fluctuations.

EXHIBIT A
286
City of Livermore
Management’s Discussion and Analysis
June 30, 2023

The General Fund revenues were $142.4 million in the fiscal year 2022-23, a $15.4 million increase from the prior fiscal year amount of $127.0 million. As discussed in detail under “The City’s Fund Financial Statements”, increase mainly came from property tax, use of money and property, and miscellaneous categories while intergovernmental and sales tax decreased from the prior year. The decrease in intergovernmental revenues was expected this year as the American Rescue Plan Act (ARPA) funding was completed in fiscal year 2022, with nothing recognized as revenue in the current fiscal year, down from $5.5 million in the previous year. Adjusting for the $5.5 million one-time ARPA revenue source, ongoing intergovernmental revenue saw an increase of $0.9 million in the current fiscal year.

2023 2022

REVENUES
Property taxes and special assessments $44.8 $40.8
Sales Taxes 39.0 39.9
Other taxes 21.4 18.4
Licenses and permits 4.0 4.2
Intergovernmental 12.2 16.8
Contributions from outside sources 0.0 -
Fines and forfeitures 0.4 0.4
Charges for current services 9.0 7.3
Use of money and property 3.8 (2.5)
Miscellaneous 7.8 1.7
Total Revenues 142.4 127.0

EXPENDITURES
Current:

General Government: 15.8 15.8
Fire 24.9 24.3
Police 42.4 40.2
Public Works 8.7 11.1
Community Development 16.3 19.0
Economic Development 2.9 2.8
Library 6.3 6.3
Capital Outlay 1.3 10.4
Debt service:

Principal 0.0 0.0
Interest and fiscal charges 0.0 0.0
Total Expenditures 118.6 129.8
EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 23.7 (2.8)

OTHER FINANCING SOURCES (USES)
Transfers in 0.3 0.8
Transfers (out) -8.2 (6.4)
Total Other Financing Sources (Uses) -7.9 (5.6)
NET CHANGE IN FUND BALANCES 15.1 (8.4)
FUND BALANCES- BEGINNING as restated 68.8 77.2 FUND BALANCES- ENDING 83.9$ 68.8$
General Fund
Statement of Revenues, Expenditures And Changes In Fund Balances (in Millions)

EXHIBIT A
287
City of Livermore
Management’s Discussion and Analysis
June 30, 2023

The table on the following page shows the original budget, final amended budget, and the actual results for the current fiscal year. The original budget was amended to reflect the change in economic expectations between the adoption of the original and final budget. The variances computed are between the final budget and actual results.

General Fund property tax revenues increased as a result of increased assessed values and home sales from the previous fiscal year. Use of money and property was $0.1 million under budget and this was due to the yearly unrealized market value adjustment of nearly $2.0 million that is not budgeted. Miscellaneous Revenue saw an increase of $7.4 million mostly due to the recognition of a settlement with the two national labs on past business license taxes.

From an expenditure perspective, total expenditures and transfers out came under budget. Expenditures for most departments were under budget for the fiscal year primarily due to vacant positions. The General Government, Police, and capital outlay out accounted for $7.4 million under budget. The other departments variances totaled $2.9 million under budget, with Economic Development being the only department over budget by $0.1 million due to higher than expected expenses for their economic incentive program.

Original Budget Final Budget Actual
Variance Final
Budget to Actual
Positive/
(Negative)
Variance
Final
Budget to
Actual (%)
Revenues and transfers in:

Property taxes $43.0 $43.4 $44.8 $1.4 3.1%
Sales taxes 39.0 39.0 39.0 0.0 -0.04%
Other taxes 20.6 21.7 21.4 -0.3 -1.35%
Licenses and permits 3.2 3.5 4.0 0.5 13.55%
Intergovernmental 12.4 12.4 12.2 -0.2 -1.51%
Contritbutions from outside sources 0.0 0.0 0.0 0.0 -100.00% Fines and forfeitures 0.4 0.4 0.4 0.0 11.06%
Charges for current services 8.6 7.6 9.0 1.4 17.77%
Use of money and property 3.9 3.9 3.8 -0.1 -2.36%
Miscellaneous 0.5 0.5 7.8 7.4 1551.09%
Total revenues 131.6 132.4 142.4 10.0 7.5%
Transfers in 0.9 0.9 0.3 -0.6 -70.07%
Total revenues and transfers in $132.5 $133.3 $142.6 $9.3 7.00% Expenditures and transfers out:

General Government: $16.9 $16.9 $15.8 $1.1 6.5%
Fire 25.4 25.4 24.9 0.5 1.9%
Police 44.5 44.5 42.4 2.1 4.7%
Public Works 9.3 9.3 8.7 0.6 6.5%
Community Development 20.5 20.5 16.3 4.2 20.7%
Economic Development 2.8 2.8 2.9 -0.1 -3.5%
Library 6.9 6.9 6.3 0.6 8.3%
Capital projects 1.9 2.5 1.3 1.2 49.9%
Debt service 0.7 0.7 0.7 0.0 0.0%
Total expenditures 128.9 129.5 119.3 10.3 7.9%
Transfers out 8.2 8.2 8.2 0.0 0.2%
Total expenditures and transfers out $137.1 $137.8 $127.5 $10.3 7.45% General Fund Budgetary and Actual Variance Analysis
(in Millions)

EXHIBIT A
288
City of Livermore
Management’s Discussion and Analysis
June 30, 2023

Low Income Housing Fund
This fund is established to account for the receipt and disbursement of in-lieu low-income housing impact fees collected from developers and used to finance affordable housing developed offsite. In the current year revenues increased by $2.2 million mostly from loan repayments and the gain on sale of land, while expenditures decreased by $4.3 million due to new housing loans or notes not being classified as expenses in the current year.

Analysis of Major Enterprise Funds

Airport Fund
The Livermore Municipal Airport is a General Aviation Reliever Airport, which serves private, business and corporate tenants and customers. Airport revenues are primarily comprised of short and medium-term hangar and tie-down space rents as well as Fixed Base Operator (FBO) and approved non-aeronautical ground rents. The Airport leases 393 hangar units and has 134 aircraft tie-down spaces. Approximately 450 aircraft are currently based at the Airport and all hangar units are occupied.

Operating revenue of $3.5 million was comparable to previous fiscal year. Operating expenses decreased by $.5 million due to high repairs and maintenance expense in prior fiscal year for the FBO building flood proofing project.

Water Fund
The Water Enterprise purchases potable water from water wholesaler Zone 7 Water Agency, and then distributes the water to customers in the Livermore Municipal Water service area. The City’s municipal water service area has a combined residential and commercial customer base of approximately 10,500 water accounts. Each water bill consists of a flat rate City meter service charge based on the size of meter that is located at the property (fixed charge), a City consumption charge for water used at the property (variable charge), and pass-through of wholesale water charges. Effective January 1, 2017, the wholesale rate structure was changed by Zone 7 to include fixed and volume-based rates.

Water operating revenue dropped slightly from $17.6 million to $17.4 million. In fiscal year 2022-23, a new five-year Livermore Municipal water rate schedule became effective. A major change included in this new rate schedule was an effective date move from July 1st to January 1st each year. This date change resulted in rate increases being reflected in only the last six months of the fiscal year. The change was implemented to align with Zone 7 pass- through rate changes. Recycled water revenue decreased by $.2 million from prior year as the 2023 recycled water rate was reduced by 17%.

Operating expenses were $.8 million higher compared to prior year, primarily due to increases in the purchase of water from Zone 7 and employee pension categories. Pension expense is affected by CalPERS investment returns each year. Net nonoperating revenues (expenses) increased by $1.1 million due to year end market value adjustment of the City’s investments. Capital contribution revenue increased by $.6 million due to reimbursement of water connection expenditures for the Trevarno Road project.

Sewer Fund
The Sewer Enterprise is responsible for the operation, maintenance, and periodic replacement of the City’s sewer, collection system, wastewater treatment and recycled water production systems. It operates and maintains the Livermore Water Reclamation Plant, which provides wastewater treatment and disposal, and produces recycled water for landscape irrigation and other uses. The Plant currently treats approximately 6.2 million gallons of wastewater each day from throughout the Livermore area.

EXHIBIT A
289
City of Livermore
Management’s Discussion and Analysis
June 30, 2023

The Sewer Fund’s net operating income was $5 million in the current fiscal year compared to $3.8 million in fiscal year 2021-22. Operating revenues were $1.9 million higher in the current year, primarily due to an increase in sewer rates.

Revenue is expected to continue to rise as the City Council has approved rate increases in each of the next two fiscal years. Operating expenses of $24.7 million experienced a modest increase from $23.9 million in the prior year.

Nonoperating revenues (expenses) increased by $2.1 million due to year end market value adjustment of the City’s investments. Contribution revenue for conveyed properties decreased by $.6 million as the prior year revenue included Pleasant View Lane annexation improvements.

Stormwater Fund
The Stormwater Enterprise is responsible for costs associated with the implementation of the City’s stormwater management and discharge control program along with the operation and periodic replacement of the stormwater conveyance system. Operating revenues of $1.1 million remained flat while capital contributions revenue rose by $.3 million from prior year. The capital contributions revenue reflects Republic Square storm drain infrastructure conveyed to the City.

Operational expense of $5.2 million was comparable to the previous fiscal year. Contracted services decreased by $.4 million which was largely offset by an increase of $.3 million in cost of sales, salaries, and benefits expenditures.

Capital Assets

GASB 34 requires the City to record all its capital assets including infrastructure. Infrastructure includes roads, bridges, signals, and similar assets used by the entire population. The City depreciates all its capital assets over their estimated useful lives, as required by GASB 34. The purpose of depreciation is to spread the cost of a capital asset over the years of its useful life so that an allocable portion of the cost of the asset is borne by all users.

The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2023, amounts to $535.9 million (net of accumulated depreciation). This investment in capital assets includes land, buildings, machinery, equipment, vehicles, roads, highways, and the water reclamation plant. At the end of fiscal years 2022- 23 and 2021-22, the cost of capital assets recorded on the City’s financial statements was as shown in the table as following.

EXHIBIT A
290
City of Livermore
Management’s Discussion and Analysis
June 30, 2023

2023 2022 2023 2022 2023 2022
Land and Land Improvements 43.8$ 43.8$ 14.0$ 14.0$ 57.8$ 57.8$ Intangible Assets 4.5 4.5 - - 4.5 4.5 Construction in progress 85.3 73.4 14.1 8.1 99.4 81.5 Buildings 123.6 123.7 22.7 22.7 146.3 146.4 Equipment and vehicles 36.6 36.6 9.2 9.9 45.8 46.5 Infrastructure 375.0 373.0 - - 375.0 373.0 Airport Infrastructure - - 12.0 12.8 12.0 12.8 Water Infrastructure - - 59.9 59.9 59.9 59.9 Sewer Infrastructure - - 142.1 143.0 142.1 143.0 Stormwater Infrastructure - - 112.3 112.1 112.3 112.1 Right-to-use subscription IT assets 4.0 - 0.4 - 4.4 - Less accumulated depreciation and am (283.3) (271.2) (240.3) (234.6) (523.6) (505.8) Totals 389.5$ 383.8$ 146.4$ 147.9$ 535.9$ 531.7$ Capital Assets at Year-end
(in Millions)
Governmental actitivies Business-type activities Total

The total capital assets for the current fiscal year increased approximately $4.2 million (or 0.8 percent) due to depreciation being less than new assets added. Major additions to capital asset during fiscal year 2022-23 included the following:

• Construction in progress for governmental activities increased by $11.9 million, with $6.0 million due to the start of site preparation and construction of the L Street garage.

• There was a similar increase in construction in progress of $6.0 million in business-type activities, with $3.5 million due to continued work on a major project for WRP Primary & Secondary Treatment Improvements.

Additional information on capital assets may be found in Note 7 on pages 55-57 of this report.

Debt Administration

Each of the City’s debt issues is discussed in detail in Note 8 to the financial statements. As of June 30, 2023, and 2022, the City’s debt comprised the following:

2023 2022 2023 2022 2023 2022
Certificates of Participation 84.3$ 47.0$ 6.7$ 7 .2$ 91.0$ 54.2$ Notes payable 0.7 0.8 - - 0 .7 0.8 Capital Leases 5.4 6.1 0.2 0 .2 5.6 6.3 Totals 90.4$ 53.9$ 6.9$ 7.4$ 97.3$ 61.3$ Outstanding Debt
(in Millions)
Governmental actitivies Business-type activities Total

EXHIBIT A
291
City of Livermore
Management’s Discussion and Analysis
June 30, 2023

The outstanding debt in the current fiscal year increased by $36.5 million for the governmental activities and decreased by $0.5 million for business type activities. The increase is primarily due to the 2022 COPS being issued to fund the L Street garage project. The decrease in business type debt of $0.5 million is due to continued payments and amortization of premiums on the 2020 COPS and other debt payments. Refer to note 8 for further information.

In October 2022, the S&P global rating services reaffirmed the City’s bond ratings at AA noting the city had a steady recovery from the COVID-19 pandemic, with property and sales tax increasing over the past three years along with a very strong housing market and continued residential and commercial development. The credit reports highlighted the City’s consistent positive financial performance, strong reserves, and unassigned fund balance, as well as strong management throughout economic cycles. They noted that increasing pension costs are something the City needs to plan for.

Economic Factors and Next Year’s Budget

The economic factors affecting the City and its long-term financial plan are discussed in detail in the accompanying Transmittal Letter.

The total appropriation for fiscal year 2023-24 is $363.5 million for all City activities, including allocations to fund balance reserves. The fiscal year 2023-24 budget continues to provide resources for the City’s long-term obligations, including fleet and information technology replacement needs, capital improvements, and other post-employment benefits.

Property tax revenue in fiscal year 2023-24 is projected to be $46.6 million, an increase of 7.4%, or $3.2 million, compared to current year’s budgeted revenue as property values are expected to continue to rise because of additional development and increased property value. Sales tax is projected to be $40.8 million, an increase of 4.6%, or $1.8 million, for the next fiscal year compared to the current year’s budgeted revenue. The City will evaluate the local economic conditions as well as the City’s portfolio of the sales tax producers, and revise the sales tax forecast in next budget cycle, as appropriate. Use of money and property is projected to be $5.8 million, an increase of

48.7%, or $1.9 million compared to current year’s budgeted revenue as interest rates rose causing increases to investment income. Other revenues have also been projected slightly upwards to reflect anticipated increase in demand for services.

The General Fund budget for fiscal year 2023-24 provides $143.1 million in resources, and $151.7 million in uses, including $1.9 million for the Capital Improvement Plan (CIP). The Proposed Financial Plan Update shows a General Fund budget shortfall of $7.4 million in fiscal year 2023-24 that will require use of capital reserves to fund $6.4 million in capital projects in fiscal year 2023-24 and $980,000 use of fund balance for contracts carried forward in FY 2022-23.

The General Fund’s operating expenditures are projected to grow by $8.4 million to $137.3 million from fiscal year 2022-23 budgeted expenditures of $128.9 million with anticipated increases in employment-related costs, consulting services and other costs associated with the capital projects, as well as the undertaking of other important projects such as the ERP implementation and asset management-related efforts.

The fund balance for the General Fund at the end of operations for FY 2023-24 is estimated at $79.6 million with $77.1 million in reserves and $2.5 million in spendable fund balance available for appropriations, excluding capital reserves.

EXHIBIT A
292
City of Livermore
Management’s Discussion and Analysis
June 30, 2023

Requests for Information

The Annual Comprehensive Financial Report is intended to provide a general overview of the City’s finances for readers of the financial statements. Questions concerning any of the information in this report or requests for additional financial information should be addressed to the Administrative Services Director, 1052 South Livermore Avenue, Livermore, CA 94550-4899.

EXHIBIT A
293

City of Livermore
June 30, 2023

Statement of Net Position and Activities

The Statement of Net Position and the Statement of Activities summarize the entire 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, deferred outflows, 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 considered, regardless of whether or when cash changes hands, but all material internal transactions between City funds have been eliminated.

The Statement of Net Position reports the City’s total assets, liabilities, and deferred inflows of resources, deferred outflows of resources and includes all the City’s capital assets and all its long-term obligations. The Statement of Net Position presents similar information in a way that focuses the reader on the composition of the City’s Net Position, by subtracting total liabilities and deferred inflows of resources from total assets and deferred outflows of resources.

The Statement of Net Position summarizes the financial 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 activities 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 Governmental Activities, after eliminating inter-fund transactions and balances. The City’s Business- Type Activities include all its Enterprise Fund activities and a portion of the Internal Services Funds.

The Statement of Activities reports increases and decreases in the City’s Net Position. It is also prepared on the full accrual basis, which means 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 governmental Fund financial statements, which reflect only current assets, current liabilities, measurable and available revenues, and 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 activities. Program revenues—that is, revenues which are generated directly by these programs—are then deducted 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 as well as the Livermore Capital Projects Financing Authority, which is a legally separate but is a component unit of the City because it is controlled by the City, which is financially accountable for its activities.

These financial statements along with the fund financial statements and notes are called Basic Financial Statements.

EXHIBIT A
294
City of Livermore
Statement of Net Position
June 30, 2023

Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments in City Treasury (Note 3) 219,120,010$ 129,370,268$ 348,490,278$ Cash and investments with Trustees (Note 3) 37,952,177 - 37,952, 177 Accounts receivables, net 12,911,378 6,662,208 19,573,586 Interest receivable 9,744,744 34,178 9, 778,922 Lease receivables 570,037 12,129,254 12,699,291 Inventory 361,074 - 361,074 Internal balances (Note 4) 866,295 (866,295) - Prepaids, deposits and supplies 132,586 - 132,586 Notes receivable (Note 5) 49,003,712 - 49,003, 712 Investment (Deficit) in JPA Equity (Note 14) (40,976,748) 20,386,487 (20,590,261) Land held for redevelopment (Note 1) 4,128,757 - 4,128, 757 Land, easements and construction in progress (Note 7) 133,719,143 28,135,238 161,854,381 Capital assets, net of accumulated depreciation (Note 7) 252,519,892 117,961,784 370,481,676 Right-to-use subscription IT assets,
net of accumulated amortization (Note 7) 3,244,799 377,082 3, 621,881 Total Assets 683,297,856 314,190,204 997,488,060

DEFERRED OUTFLOWS OF RESOURCES
Related to pension (Notes 11) 51,347,805 6,752,925 58,100,730 Related to OPEB (Notes 12) 1,102,015 186,062 1, 288,077 Total Deferred Outflows of Resources 52,449,820 6,938,987 59,388,807

LIABILITIES
Accounts payable and other accruals 10,568,130 4,998,067 15,566,197 Accrued payroll 2,404,785 418,405 2, 823,190 Interest payable 907,381 61,130 968, 511 Deposit payable and unearned revenue 9,273,842 496,914 9, 770,756 Non-current liabilities:

Due within one year:

Claims payable (Note 15) 2,692,018 - 2,692, 018 Accrued compensated absences (Note 8) 1,266,330 244,773 1, 511,103 Long-term debt (Note 8) 6,092,330 595,563 6, 687,893 Due in more than one year:

Claims payable (Note 14B) 6,936,179 - 6,936, 179 Accrued compensated absences (Note 8) 2,909,948 407,151 3, 317,099 Long-term debt (Note 8) 87,483,960 6,704,658 94,188,618 Net pension liability (Note 11) 133,657,661 21,560,262 155,217,923 Net OPEB liabilities (Note 12) 25,918,432 4,376,004 30,294,436 Total Liabilities 290,110,996 39,862,927 329,973,923

DEFERRED INFLOWS OF RESOURCES
Related to pension (Notes 11) 6,167,659 380,344 6, 548,003 Related to OPEB (Notes 12) 4,470,107 754,721 5, 224,828 Related to leases (Notes 6) 538,493 11,731,163 12,269,656 Total Deferred Inflows of Resources 11,176,259 12,866,228 24,042,487 NET POSITION (Note 10)
Net investment in capital assets 330,015,760 139,173,883 469,189,643 Restricted:

Capital improvement programs 74,741,245 - 74,741, 245 Landscape and Maintenance 15,599,361 - 15,599, 361 Affordable Housing 60,765,027 - 60,765, 027 Park fee 4,368,026 - 4,368, 026 Art programs 3,961,681 - 3,961, 681 Grant programs 8,305,059 - 8,305, 059 Gas tax and other transportation programs 24,418,940 - 24,418, 940 Community services 3,236,235 - 3,236, 235 Nonexpendable endowment fund 601,048 - 601,048 Unrestricted (91,551,961) 129,226,153 37,674,192 Total Net Position 434,460,421$ 268,400,036$ 702,860,457$

STATEMENT OF NET POSITION
JUNE 30, 2023

EXHIBIT A
295
City of Livermore
Statement of Activities
Year Ended June 30, 2023

Net (Expense) Revenue and
Program Revenues Changes in Net Position
Operating Capital
Charges for Grants and Grants and Governmental Business-type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Governmental Activities:

General Government 15,486,750$ 897,891$ 4,121,360$ -$ (10,467,499)$ -$ (10,467,499)$ Fire 25,376,744 1,125,366 - - (24,251,378) - (24,251,378) Police 40,999,419 1,287,389 237,754 89,645 (39,384,631) - (39,384,631) Public Works 21,412,309 249,909 1,259,957 - (19,902,443) - (19,902,443) 21,514,818 13,154,684 9,982,614 3,211,267 4,833,747 - 4,833,747 2,901,245 - - - (2,901,245) - (2,901,245) Library 6,913,509 10,508 195,435 - (6,707,566) - (6,707,566) Interest on long term debt 2,779,617 - - - (2,779,617) - (2,779,617) Total Governmental Activities 137,384,411 16,725,747 15,797,120 3,300,912 (101,560,632) - (101,560,632) Business-type Activities:

Airport 3,030,841 3,542,766 518,621 3,398 - 1,033,944 1,033,944 Water 18,333,679 17,392,495 49,773 620,671 - (270,740) (270,740) Sewer 25,174,657 30,144,505 - 1,129,895 - 6,099,743 6,099,743 Stormwater 5,282,516 1,154,925 - 956,352 - (3,171,239) (3,171,239) Total Business-type Activities 51,821,693 52,234,691 568,394 2,710,316 - 3,691,708 3,691,708 Total primary government 189,206,104$ 68,960,438$ 16,365,514$ 6,011,228$ (101,560,632) 3,691,708 (97,868,924) General revenues:

Property taxes 44,792,322 - 44,792,322 Sales taxes 39,032,166 - 39,032,166 Business license taxes 14,943,613 - 14,943,613 Transient occupancy, franchise and other taxes 10,909,227 - 10,909,227 Intergovernmental, unrestricted 12,176,887 - 12,176,887 Investment income 3,969,590 810,299 4,779,889 Miscellaneous 8,816,246 - 8,816,246 Transfers, net (Notes 4 & 5) (2,299,891) 2,299,891 - Total general revenues and transfers 132,340,160 3,110,190 135,450,350 Change in Net Position 30,779,528 6,801,898 37,581,426 Net Position-Beginning, as restated 403,680,893 261,598,138 665,279,031 Net Position-Ending 434,460,421$ 268,400,036$ 702,860,457$

STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2023
Community Development
Economic Development

EXHIBIT A
296
City of Livermore
Government Fund Statements
June 30, 2023

Fund Financial Statements

Only individual major funds are presented in the Fund Financial Statements, 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.

The City has identified the funds below as major governmental funds:

General Fund

The General Fund is used for all the general revenues of the City not specifically levied or collected for other City funds and related expenditures.

Low Income Housing Special Revenue Fund

Established to account for the receipt and disbursement of in-lieu low-income housing impact fees collected from developers.

2022 COPS Construction Capital Fund

Established to account for the receipt and disbursement of the design and construction of a parking garage to provide adequate parking for all existing and new development and other improvements of the City.

EXHIBIT A
297
City of Livermore
Balance Sheet – Governmental Funds
June 30, 2023

Low Income 2022 COPS Other Total
Housing Special Construction Capital Governmental Governmental General Fund Revenue Fund Projects Fund Funds Funds
ASSETS
Cash and investments in City Treasury (Note 3) 76,062,296$ 5,390,251$ (487,520)$ 108,518,694$ 189,483,721$ Cash and investments with Trustees (Note 3) - - 37,345,293 606,884 37,952,177 Accounts receivables, net 10,654,940 699 7,495 2,027,341 12,690,475 Lease receivables 570,037 - - - 570,037 Interest receivable 1,792,195 5,513,604 - 2,438,945 9,744,744 Advances to other funds (Note 4) 3,874,396 - - - 3,874,396 Prepaids and deposits 15,938 12,216 - - 28,154 Notes receivable (Note 5) 64,369 36,874,562 - 12,064,781 49,003,712 Land held for redevelopment (Note 1) 1,727,437 2,401,320 - - 4,128,757 Total Assets 94,761,608$ 50,192,652$ 36,865,268$ 125,656,645$ 307,476,173$

LIABILITIES
Accounts payable and other accrued liabilities 4,000,145$ 214,361$ 2,591,973$ 2,231,960$ 9,038,439$ Accrued payroll and benefits 2,171,175 - - 81,773 2,252,948 Deposit payable 1,111,524 7,537 165,079 2,227,781 3,511,921 Advance from other funds (Note 4) - - - 3,874,396 3,874,396 Unearned rents and revenue 3,010,519 - - 2,712,924 5,723,443 Total Liabilities 10,293,363 221,898 2,757,052 11,128,834 24,401,147

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - 5,513,603 - 2,438,944 7,952,547 Deferred inflows of resources - leases 538,493 - - - 538,493 Total deferred inflows of resources 538,493 5,513,603 - 2,438,944 8,491,040 FUND BALANCES (Note 10)
Nonspendable 5,713,684 12,216 - 601,048 6,326,948 Restricted - 44,444,935 34,108,216 108,889,876 187,443,027 Committed 18,537,548 - - 2,597,943 21,135,491 Assigned 59,058,156 - - - 59,058,156 Unassigned 620,364 - - - 620,364 Total fund balances 83,929,752 44,457,151 34,108,216 112,088,867 274,583,986 Total Liabilities, deferred inflows of resources,
and fund balances 94,761,608$ 50,192,652$ 36,865,268$ 125,656,645$ 307,476,173$

GOVERNMENTAL FUNDS

BALANCE SHEET
JUNE 30, 2023

EXHIBIT A
298
City of Livermore
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position Year Ended June 30, 2023

Amounts reported for governmental activities in the statement of net position are different because:

Amount reported in the Governmental Balance Sheet as Fund Balance 274,583,986$

CAPITAL ASSETS
Capital assets used in Governmental Activities are not current assets or financial resources and therefore are not reported in the Governmental Funds. 368,649,947 Right-to-use subscription IT assets
Right-to-use subscription IT assets used in governmental activities are not financial resources and therefore are not reported as assets in Governmental Funds. 2,803,602

ALLOCATION OF INTERNAL SERVICE FUND NET POSITION
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 assets and liabilities of the Internal Service Funds are therefore included in Governmental Activities in the following line items in the Statement of Net Postion.

Cash and investments 29,636,289
Accounts receivable 220,903
Inventory 361,074
Internal balances 866,295
Prepaids, deposits and supplies 104,432
Capital assets 18,030,285
Deferred pension outflows 2,589,500
Deferred outflow of resources related to OPEB 66,333
Accounts payable and other accruals (1,529,691)
Accrued payroll (151,837)
Interest payable (5,987)
Claims payable (9,628,197)
Deposit payable (38,478)
Subscription liability (422,759)
Net pension liability (8,267,573)
Net OPEB liabilities (1,560,111)
Long term debt (5,354,242)
Deferred inflow for resources related to pension (145,848) Deferred inflow for resources related to OPEB (269,069)

ACCRUAL OF NON-CURRENT REVENUES AND EXPENSES
Revenues which are reported as deferred inflows on the Fund Balance Sheets because they are not available currently are taken into revenue in the Statement of Activities. 7,952,547

LONG-TERM ASSETS AND LIABILITIES
The assets and liabilities below are not due and payable in the current period and therefore are not reported in the Funds:

Investment (Deficit) in JPA Equity (40,976,748)
Compensated absences (4,176,278)
Long-term debt (85,023,269)
Subscription liability (2,776,020)
Interest payable (901,394)
Net OPEB liabilities (24,358,321)
Deferred outflow of resources related to OPEB 1,035,682 Deferred inflow of resources related to OPEB (4,201,038) Net pension liability (125,390,088)
Deferred outflow of resources related to pension 48,758,305 Deferred inflow of resources related to pension (6,021,811) NET POSITION OF GOVERNMENTAL ACTIVITIES 434,460,421$

RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS

TO THE STATEMENT OF NET POSITION
JUNE 30, 2023

EXHIBIT A
299
City of Livermore
Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds Year Ended June 30, 2023

Low Income 2022 COPS Other Total
Housing-Special Construction Capital Governmental Governmental General Fund Revenue Fund Projects Fund Funds Funds

REVENUES
Property taxes and special assessments 44,792,322$ -$ -$ 4,462,006$ 49,254,328$ Sales Taxes 39,032,166 - - - 39,032,166 Other taxes 21,390,834 - - - 21,390,834 Licenses and permits 3,952,512 - - - 3,952,512 Intergovernmental 12,176,887 - - 9,852,485 22,029,372 Fines and forfeitures 394,263 - - - 394,263 Charges for current services 8,975,913 1,791,936 - 5,597,043 16,364,892 Use of money and property 3,804,535 273,644 784,828 395,809 5,258,816 Contributions from outside sources - 4,875 - 601,109 605,984 Miscellaneous 7,844,147 1,750,247 - 562,995 10,157,389 Total Revenues 142,363,579 3,820,702 784,828 21,471,447 168,440,556

EXPENDITURES
Current:

General Government:

City Council 193,146 - - - 193,146 City Manager 2,518,037 - - 68,261 2,586,298 City Attorney 1,906,811 - - - 1,906,811 Administrative Services 7,837,745 - - - 7,837,745 General Services 3,374,607 - - - 3,374,607 Fire 24,948,208 - - 5,650 24,953,858 Police 42,400,747 - - 1,113,817 43,514,564 Public Works 8,734,430 - - 3,348,359 12,082,789 Community Development 16,275,441 918,751 - 3,534,490 20,728,682 Economic Development 2,884,414 - - 95,750 2,980,164 Library 6,301,649 - - 171,001 6,472,650 Capital Outlay:

Capital projects 1,254,016 105,008 5,799,684 5,947,204 13,105,912 Debt service:

Principal 623,911 - - 3,751,956 4,375,867 Interest and fiscal charges 36,635 - - 2,851,839 2,888,474 Total Expenditures 119,289,797 1,023,759 5,799,684 20,888,327 147,001,567

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 23,073,782 2,796,943 (5,014,856) 583,120 21,438,989

OTHER FINANCING SOURCES (USES)
Certificates of participation issued (Note 7) - - 40,930,127 628,828 41,558,955 Transfers in (Note 4) 276,201 - - 6,396,495 6,672,696 Transfers (out) (Note 4) (8,203,386) - - (769,201) (8,972,587) Total Other Financing Sources (Uses) (7,927,185) - 40,930,127 6,256,122 39,259,064 Net Change in Fund Balance 15,146,597 2,796,943 35,915,271 6,839,242 60,698,053 FUND BALANCES- BEGINNING, as restated 68,783,155 41,660,208 (1,807,055) 105,249,625 213,885,933 FUND BALANCES- ENDING 83,929,752$ 44,457,151$ 34,108,216$ 112,088,867$ 274,583,986$

GOVERNMENTAL FUNDS

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2023

EXHIBIT A
300
City of Livermore
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities
Year Ended Jun e 30, 2023

NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS 60,698,053$ 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.

The capital outlay asset addition expenditures are therefore added back to fund balance 13,105,912 Loss on sale of property added back to fund balance (7,099) Depreciation expense is deducted from the fund balance
(Depreciation expense is net of internal service fund depreciation of $2,351,048 which has already been allocated to internal service funds.) (12,153,384)

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 bond principal is an expenditure in the governmental funds, but in the Statement of Net Position the repayment reduces long-term liabilities.

Bond proceeds (41,558,955)
Premium on issuance recognized 482,323
Repayment of debt principal is added back to fund balance 3,751,956 Payment of principal on Subscription-based IT arrangements 623,911 Amortization of premium on long-term debt 584,175

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):

Long-term compensated absences (149,473)
Interest payable (957,641)
Unavailable revenue 2,023,274
Change in equity in JPA (155,575)
Governmental funds report City pension and OPEB contributions as expenditures. However in the Statement of Activities, the cost of pension and OPEB benefits earned net of employee contributions is reported as pension expense and OPEB expense.

Deferred outflow of resources related to pension 27,087,922 Deferred inflow of resources related to pension 32,873,808 Change in net pension liability (58,068,531)
Deferred outflow of resources related to OPEB (1,706,721) Deferred inflow of resources related to OPEB (3,433,629) Change in net OPEB liability 10,233,683

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 (3,535,904) Change in Net Position of Internal Service Funds reported with Business-Type Activities 1,041,423 CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES 30,779,528$

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN

FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2023
Amounts reported for governmental activities in the statement of activities are different because:

EXHIBIT A
301
City of Livermore
Proprietary Fund Financial Statements
June 30, 2023

Major Proprietary Funds

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

The City has identified the funds below as major proprietary funds in fiscal year 2022-23.

Airport Fund

Established to account for the operations of the Livermore Municipal Airport.

Water Fund

Established to account for the operations of the self-supporting municipal water service. Services are rendered on a user charge basis and impact fees are collected for future water storage needs.

Sewer Fund

Established to account for operations of the self-supporting wastewater disposal plant, the export pipeline, impact fees collected for sewer connections, and urban runoff fees.

Stormwater Fund

Established to account for operations of the self-supporting storm water operations and impact fees collected for storm drain infrastructure.

Internal Service Funds

Internal service funds, which are used to accumulate and allocate costs internally among the City’s various functions.

The City uses internal service funds to account for its fleet of vehicles, maintenance of buildings, risk management services, and information technology services. The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements.

EXHIBIT A
302
City of Livermore
Statement of Net Position – Proprietary Funds
June 30, 2023

Governmental
Activities-
Internal Service
Airport Water Sewer Stormwater Totals Funds
ASSETS
Current Assets:

Cash and investments in City Treasury (Note 3) 6,948,466$ 35,264,681$ 78,963,908$ 8,193,213$ 129,370,268$ 29,636,289$ Accounts receivables (net of allowable for uncollectibles) 568,906 2,329,586 883,699 2,880,017 6,662,208 220,903 Lease receivables 11,897,627 231,627 - - 12,129,254 - Interest receivables 33,645 533 - - 34,178 - Inventory - - - - - 361,074 Prepaids, deposits and supplies - - - - - 104,432 Total current assets 19,448,644 37,826,427 79,847,607 11,073,230 148,195,908 30,322,698 Noncurrent Assets:

Investment in JPA-LAVWMA (Note 14) - - 20,386,487 - 20,386,487 - Land and construction in progress (Note 7) 13,198,919 945,558 13,083,270 907,491 28,135,238 1,871,891 Capital assets, net of accumulated depreciation (Note 7) 8,116,723 31,093,766 57,770,160 20,981,135 117,961,784 15,717,197 Right-to-use subscription IT assets,
net of accumulated amortization (Note 7) - 62,847 287,300 26,935 377,082 441,197 Total noncurrent assets 21,315,642 32,102,171 91,527,217 21,915,561 166,860,591 18,030,285 Total assets 40,764,286 69,928,598 171,374,824 32,988,791 315,056,499 48,352,983

DEFERRED OUTFLOWS OF RESOURCES
Related to pension (Note 11) 669,136 1,576,556 4,061,477 445,756 6,752,925 2,589,500 Related to OPEB (Note 12) 21,856 34,096 124,629 5,481 186,062 66,333 Total deferred outflows of resources 690,992 1,610,652 4,186,106 451,237 6,938,987 2,655,833

LIABILITIES
Current Liabilities:

Accounts payable and other accruals 139,744 2,504,099 1,988,058 366,166 4,998,067 1,529,691 Accrued payroll and benefits 49,005 96,329 245,398 27,673 418,405 151,837 Interest payable 33,959 24,198 2,718 255 61,130 5,987 Accrued compensated absences (Note 8) 23,946 60,927 143,369 16,531 244,773 - Claims payable (Note 15) - - - - - 2,692,018 Deposit payable 235,800 111,938 149,176 - 496,914 38,478 Long-term debt (Note 8):

Due within one year 248,971 302,221 - - 551,192 856,119 Total current liabilities 731,425 3,099,712 2,528,719 410,625 6,770,481 5,274,130 Noncurrent Liabilities:

Accrued compensated absences (Note 8) 44,972 109,051 217,317 35,811 407,151 - Claims payable (Note 15) - - - - - 6,936,179 Subscription liability - 62,765 286,928 26,899 376,592 422,759 Net pension liability (Note 11) 2,136,371 5,033,516 12,967,196 1,423,179 21,560,262 8,267,573 Net OPEB liabilities (Note 12) 514,041 801,901 2,931,162 128,900 4,376,004 1,560,111 Long-term debt (Note 8):

Due in more than one year 3,939,245 2,433,192 - - 6,372,437 4,498,123 Total non-current liabilities 6,634,629 8,440,425 16,402,603 1,614,789 33,092,446 21,684,745 Total liabilities 7,366,054 11,540,137 18,931,322 2,025,414 39,862,927 26,958,875

DEFERRED INFLOWS OF RESOURCES
Related to pension (Note 11) 37,688 88,796 228,754 25,106 380,344 145,848 Related to OPEB (Note 12) 88,656 138,302 505,532 22,231 754,721 269,069 Related to leases (Note 6) 11,512,939 218,224 - - 11,731,163 - Total deferred inflows of resources 11,639,283 445,322 734,286 47,337 12,866,228 414,917 NET POSITION (Note 10)
Net investment in capital assets 17,127,426 29,366,758 71,140,730 21,915,561 139,550,475 12,676,043 Unrestricted 5,322,515 30,187,033 84,754,592 9,451,716 129,715,856 10,958,981 Total net position 22,449,941$ 59,553,791$ 155,895,322$ 31,367,277$ 269,266,331 23,635,024$ Some amounts reported for business-type activities in the Statement of Net Position are different because certain internal service fund assets and liabilities are included with business-type activities. (866,295) Net position business-type activities 268,400,036$
Business-Type Activities-Enterprise Funds

PROPRIETARY FUNDS

STATEMENT OF NET POSITION
JUNE 30, 2023

EXHIBIT A
303
City of Livermore
Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds Year Ended June 30, 2023

Governmental
Activities-
Internal Service
Airport Water Sewer Stormwater Totals Funds

OPERATING REVENUES
Charges for services 3,162,244$ -$ 29,561,501$ 1,150,022$ 33,873,767$ 16,999,590$ Sales 359,713 17,356,206 - - 17,715,919 - Miscellaneous 20,809 36,289 63,271 4,903 125,272 671,334 Total Operating Revenues 3,542,766 17,392,495 29,624,772 1,154,925 51,714,958 17,670,924

OPERATING EXPENSES
Cost of sales, salaries and benefits 1,771,862 14,481,001 10,657,461 2,113,248 29,023,572 4,850,690 Contracted services 151,290 459,094 4,679,758 745,585 6,035,727 3,450,361 Insurance premiums 87,629 375,257 585,079 68,541 1,116,506 5,672,988 Materials, supplies and other 69,231 256,722 1,372,929 135,373 1,834,255 1,333,098 Utilities 218,579 273,011 1,255,988 9,221 1,756,799 808,719 Depreciation and amortization 347,231 1,746,300 4,109,486 1,962,241 8,165,258 2,502,247 Repairs and maintenance 216,920 294,697 2,002,636 168,276 2,682,529 2,527,739 Total Operating Expenses 2,862,742 17,886,082 24,663,337 5,202,485 50,614,646 21,145,842 Operating Income (Loss) 680,024 (493,587) 4,961,435 (4,047,560) 1,100,312 (3,474,918)

NONOPERATING REVENUES (EXPENSES)
Investment income (loss) 422,059 130,355 222,433 35,452 810,299 - Interest and fiscal charges (expense) (104,081) (51,906) (8,811) (826) (165,624) (161,359) Change of value from investment in JPA - LAVWMA - - 519,733 - 519,733 - Other nonoperating revenues 518,621 49,773 - - 568,394 125,320 Gain (loss) on disposal of surplus property - - - - - (24,947) Net Nonoperating Revenues (Expenses) 836,599 128,222 733,355 34,626 1,732,802 (60,986) Income (Loss) Before Contributed Assets
and Transfers 1,516,623 (365,365) 5,694,790 (4,012,934) 2,833,114 (3,535,904) Capital contributions - 566,503 611,529 256,970 1,435,002 - Capital contributions - Connection fees - 54,168 518,366 174,038 746,572 - Capital Grants 3,398 - - 525,344 528,742 - Transfers in (Note 4) - - - 2,300,000 2,300,000 - Transfers out (Note 4) (62) (47) - - (109) - Change in net position 1,519,959 255,259 6,824,685 (756,582) 7,843,321 (3,535,904) Total net position (deficit)-beginning, as restated 20,929,982 59,298,532 149,070,637 32,123,859 27,170,928 Total net position(deficit)-ending 22,449,941$ 59,553,791$ 155,895,322$ 31,367,277$ 23,635,024$ Some amounts reported for business-type activities in the Statement of Activities are different because the portion of the net income of certain internal service funds is reported with the business-type activities (1,041,423) Net business-type activities reported on the Statement of Activities 6,801,898$

PROPRIETARY FUNDS

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR THE YEAR ENDED JUNE 30, 2023
Business-Type Activities-Enterprise Funds

EXHIBIT A
304
City of Livermore
Statement of Cash Flows – Proprietary Funds
Year Ended June 30, 2023

Governmental
Activities-
Internal Service
Airport Water Sewer Stormwater Totals Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 4,096,639$ 17,419,117$ 29,428,054$ 2,669,777$ 53,613,587$ 17,690,853$ Payments to suppliers (2,439,987) (14,372,115) (23,301,017) (3,068,113) (43,181,232) (7,739,480) Payments to employees (1,118,222) 55,490 (292,880) 31,212 (1,324,400) (4,493,449) Claims paid (87,629) (375,257) (585,079) (68,541) (1,116,506) (4,543,598) Receipts from other sources 20,809 36,289 63,271 4,903 125,272 - Net cash provided by (used for) operating activities 471,610 2,763,524 5,312,349 (430,762) 8,116,721 914,326

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Cash received from other funds - - - 2,300,000 2,300,000 - Cash transferred to other funds (62) (47) - - (109) Net cash provided by noncapital financing activities (62) (47) - 2,300,000 2,299,891 -

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Capital Grants 3,398 - - 525,344 528,742 - Loss on disposal - - - - - (24,947) Capital contributions - 620,671 1,129,894 431,008 2,181,573 - Capital asset additions - (778,515) (5,430,042) (587,239) (6,795,796) (3,784,560) Long term debt:

Repayment of principal (199,509) (245,493) - - (445,002) (794,252) Interest paid (145,095) (99,944) 5,918 555 (238,566) (155,372) Net cash provided by (used for) capital and related
financing activities (341,206) (503,281) (4,294,230) 369,668 (4,769,049) (4,759,131)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment Income (losses) 941,193 180,183 213,622 34,626 1,369,624 125,320 Other - - - - - - Net cash provided by (used for) investing activities 941,193 180,183 213,622 34,626 1,369,624 125,320 Net increase (decrease) in cash and cash equivalents 1,071,535 2,440,379 1,231,741 2,273,532 7,017,187 (3,719,485) Cash and investments at beginning of period 5,876,931 32,824,302 77,732,167 5,919,681 122,353,081 33,355,774 Cash and investments at end of period 6,948,466$ 35,264,681$ 78,963,908$ 8,193,213$ 129,370,268$ 29,636,289$ Reconciliation of operating income (loss) to net cash
provided by operating activities:

Operating income (loss) 680,024$ (493,587)$ 4,961,435$ (4,047,560)$ 1,100,312$ (3,474,918)$ Adjustments to reconcile operating income (loss) to net cash provided by operating activities:

Depreciation 347,231 1,746,300 4,109,486 1,962,241 8,165,258 2,502,247 Pension and OPEB Expense (1,130,292) 10,859 (329,780) (6,336) (1,455,549) (93,224) Change in assets and liabilities:

Accounts receivable 580,742 35,843 (41,455) 1,519,755 2,094,885 (18,549) Prepaids, deposits and supplies - - 2,216,423 - 2,216,423 195,355 Accounts payable and other accruals (12,105) 1,329,645 (5,835,596) 103,590 (4,414,466) 607,931 Accrued payroll 10,595 17,374 51,095 6,102 85,166 (341) Accrued compensated absences 1,475 27,257 (14,195) 4,547 19,084 - Subscription liability - 62,765 286,928 26,899 376,592 422,759 Deposits payable (6,060) 27,068 (91,992) - (70,984) - Claims Payable - - - - - 773,066 Net Cash provided by (Used for) operating activities 471,610$ 2,763,524$ 5,312,349$ (430,762)$ 8,116,721$ 914,326$ Non-cash transactions:

Investment in LAVWMA JPA equity -$ -$ 519,733$ -$ 519,733$ -$ Loss on disposal of capital assets (2,000) - - - (2,000) - Amortization of premium (39,330) (46,888) - - (86,218) - Capital assets contributed - 566,503 611,529 256,970 1,435,002 -

PROPRIETARY FUNDS

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2023
Business-Type Activities-Enterprise Funds

EXHIBIT A
305
City of Livermore
Fiduciary Fund Financial Statements
June 30, 2023

Fiduciary Funds

Fiduciary funds account for assets held by the City acting as an agent for various functions. The City has the following fiduciary funds:

Successor Agency to the Livermore Redevelopment Agency Private Purpose Trust Fund

Established for the assets received from the City’s former redevelopment agency in order to liquidate its enforceable obligations, pursuant to Assembly Bill X1 26 which dissolved redevelopment agencies in California.

Custodial Funds

Established to account for assets held by the City in a fiduciary capacity for special assessment districts, Livermore Pleasanton Fire Department, and agency pass through fees.

EXHIBIT A
306
City of Livermore
Statement of Fiduciary Net Position – Fiduciary Funds
June 30, 2023

Successor Agency
to the Livermore
Redevelopment
Agency
Private-Purpose Custodial
Trust Fund Funds
ASSETS
Cash and investments in City Treasury (Note 3) 4,225,584$ 10,441,724$ Cash and investments with Trustees (Note 3) 702 2,812,388 Accounts receivable - 1,252,655 Total Assets 4,226,286 14,506,767

LIABILITIES
Accrued liabilities - 1,991,211 Accrued interest 247,174 -
Deposits payable - 5,512,269 Long-term debt (Note 18):

Due within one year 1,502,489 -
Due in more than one year 15,025,279 -
Loans payable to City of Livermore:

Due in more than one year (Note 5 and 18) 443,438 - Total Liabilities 17,218,380 7,503,480

NET POSITION
Restricted for other organizations and governments (12,992,094)$ 7,003,287$

FIDUCIARY FUNDS

STATEMENT OF NET POSITION
June 30, 2023

EXHIBIT A
307
City of Livermore
Statement of Changes in Net Position – Fiduciary Funds
Year Ended June 30, 2023

Successor Agency
to the
Redevelopment
Agency
Private-Purpose Custodial
Trust Fund Funds

ADDITIONS
Property taxes and special assessment 2,212,819$ -$ Investment income 695 -
Charges for services - 49,834,508 Total Additions 2,213,514 49,834,508

DEDUCTIONS
Administrative Fee 24,600 -
Recipient Payments 4,400 51,396,060 Debt service:

Interest and fiscal charges 506,603 - Total Deductions 535,603 51,396,060 Net Change in Net Position 1,677,911 (1,561,552)

NET POSITION
Beginning of year (14,670,005) 8,564,839
End of year (12,992,094)$ 7,003,287$

FIDUCIARY FUNDS

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED ON JUNE 30, 2023

EXHIBIT A
308
City of Livermore
Notes to Financial Statements
June 30, 2023

Note 1 - Significant Accounting Policies

The City of Livermore was incorporated on April 1, 1876. The City operates under the Council-Manager form of government and provides the following services: public safety (police and fire), highways and streets, sewer, water, public improvements, planning and zoning, general administration services and housing services.

The accounting policies of the City conform with generally accepted accounting principles in the United States of America as applicable to governments. The following is a summary of these policies:

Reporting Entity

The accompanying basic financial statements present the financial activity of the City, which is the primary government presented, along with the financial activities of its component units, which are entities for which the City is financially accountable. Although they are separate legal entities, blended component units are in substance part of the City’s operations and are reported as an integral part of the City’s financial statements. The City’s blended component unit is described below.

Component Units Included in the Reporting Entity

The Livermore Capital Projects Financing Authority (LCPFA) provides financing assistance to the City. The Authority is controlled by the City and has the same governing body as the City, which also performs all accounting and administrative functions for the Authority. Separate financial statements are not issued for the LCPFA.

Basis of Presentation

The City’s basic financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Governmental Accounting Standards Board is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States of America.

These Standards require that the financial statements described below be presented.

Government-wide Statements The Statement of Net Position and the Statement of Activities display information about the primary government (the City) and its component units. These statements include the financial activities of the overall City government, except for fiduciary activities. Eliminations have been made to minimize 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 non-exchange transactions. Business-type activities are financed in whole or in part by fees charged to external parties.

The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City’s governmental activities.

Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Certain indirect costs are included in program expenses reported for individual functions and activities.

EXHIBIT A
309
City of Livermore
Notes to Financial Statements
June 30, 2023

Program revenues include (a) charges paid by the recipients of goods or services 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 provide 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 governmental and enterprise funds, each of which is displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as non-major funds.

Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from exchange transactions associated with a proprietary fund’s principal ongoing operations. Exchange transactions are those in which each party receives and gives up essentially equal values. The principal operating revenues of the City’s enterprise funds, and internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation of capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. Non-operating revenues, such as subsidies and investment earnings, result from non-exchange transactions or ancillary activities.

Major Funds

The City’s major governmental and business-type funds are identified and presented separately in the fund financial statements. All other funds, called non-major funds, are combined, and reported in a single column, regardless of their fund-type.

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

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

General Fund – The general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund.

Low Income Housing Special Revenue Fund – Established to account for the receipt and disbursement of in-lieu low- income housing impact fees collected from developers.

2022 COPS Construction Capital Fund – Established to account for the receipt and disbursement of the design and construction of a parking garage to provide adequate parking for all existing and new development and other improvements of the City.

The City reported the following business-type funds as major funds in the accompanying financial statements.

Airport Fund – Established to account for the operations of the Livermore Municipal Airport.

EXHIBIT A
310
City of Livermore
Notes to Financial Statements
June 30, 2023

Water Fund – Established to account for the operations of the municipal water service. Services are rendered on a user charge basis and impact fees are collected for future water storage needs.

Sewer Fund – Established to account for operations of the wastewater disposal plant, the export pipeline, impact fees collected for sewer connections, and urban runoff fees.

Stormwater Fund – Established to account for operations of the storm water operations and impact fees collected for storm drain infrastructure.

The City also reports the following fund types:

Internal Service Funds – These funds are used to account for the financing of services and supplies provided by one City department to another on a cost-reimbursement basis. The City operates the Liability Insurance Reserve Fund, Workers Compensation Fund, Fleet and Equipment Services Fund, Information Technology Fund, and Facilities Rehabilitation Projects Fund.

Fiduciary Funds – These funds are used to account for assets held by the City as an agent for various functions. The financial activities of these funds are excluded from the City-wide financial statements but are presented in separate Fiduciary Fund financial statements. The City has the following three types of fiduciary funds:

Successor Agency to the Livermore Redevelopment Agency Private Purpose Trust Fund – Established for the assets received from the City’s former redevelopment agency in order to liquidate its enforceable obligations, pursuant to Assembly Bill X1 26 which dissolved redevelopment agencies in California as of January 31, 2012.

Funds received from the county to pay off enforceable obligations are held in this fund.

Custodial Funds – Established to account for assets held by the City in a purely custodial capacity. Custodial funds typically involve only the receipt, temporary investment, and remittance of fiduciary resources to individuals, private organizations, or other governments. Custodial Funds account for activities carried out exclusively for the benefit of that outside of the City but not administered through other fiduciary trusts or equivalent arrangements such as assessments for payments of certain conduit debt and other custodial activities as well as custodial activities related to the Livermore Pleasanton Fire District, JPA.

Permanent Fund – The permanent fund is used to report resources that are legally restricted to the extent that only earnings, not principal, may be used for purposes that support the government’s programs. Doolan Canyon Endowment Fund accounts for an endowment restricted for items related to mitigation of the burrowing owl habitat.

The Doolan Canyon fund has $601,048 in non-spendable fund balance.

Basis of Accounting and Measurement Focus

The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements.

EXHIBIT A
311
City of Livermore
Notes to Financial Statements
June 30, 2023

The government-wide 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. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. Measurable means the amount of the transaction can be determined and available means the amount is collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The City’s accrual period is sixty days after year end. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability has incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, pension and other postemployment benefits liabilities, and claims and judgments, are recorded only when payment is due. Thus, such amounts are not current liabilities as their settlement will not require expenditures of existing fund assets.

Financial resources usually are appropriated in other funds for transfer to a debt service fund in the period in which maturing debt principal and interest must be paid. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of long-term debt and acquisitions under capital leases are reported as other financing sources.

Property taxes, sales taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period.

Entitlements are recorded as revenues when all eligibility requirements are met, including any time requirements, and the amount is received during the period or within the availability period for this revenue source. Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other eligibility requirements have been met, and the amount is received during the period or within the availability period for this revenue source. All other revenue items including fines, license, and permits are considered to be measurable and available only when cash is received by the government.

The proprietary and fiduciary funds are reported using the economic resources measurement focus and accrual basis of accounting.

Cash and Investments

The City pools its available cash for investment purposes. The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from date of acquisition. Cash and cash equivalents are combined with investments and displayed as Cash and Investments.

In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. The City participates in the Local Agency Investment Fund (LAIF), an investment pool managed by the State of California which invests a portion of the pooled funds in Structured Notes and Asset-backed Securities. LAIF’s investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments.

EXHIBIT A
312
City of Livermore
Notes to Financial Statements
June 30, 2023

In addition, these Structured Notes and Asset-backed Securities are subject to market risk due to change in interest rates. For purposes of the statement of cash flows of the proprietary funds types, cash and cash equivalents include all investments, as the City operates an internal cash management pool which maintains the general characteristics of a demand deposit account.

Restricted Cash and Investments

Restricted cash and investments include amounts held by fiscal agents for the redemption of bonded debt and for acquisition and construction of capital projects, for deposits held for others within the enterprise funds, and for amounts held in an irrevocable trust for pension activities.

Inventories and Prepaid items

Inventories are valued at cost on an average cost basis and consist of expendable supplies, fuel, and vehicle repair parts. The cost of such inventories is recorded as expenditures/expenses when consumed rather than when purchased.

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.

Receivables

During the course of normal operations, the City carries various receivable balances that are shown net of allowances for doubtful accounts for taxes, interest, services, utilities and special assessments.

Notes Receivable

For the purposes of the governmental fund financial statements, expenditures related to long-term notes arising from subsidy programs are charges to operations upon funding and the notes are recorded with an offset to an unavailable revenue account under the deferred inflows of resources section. For the purposes of the government- wide financial statements, long-term loans are not offset by unavailable revenue accounts.

Leases and Subscription Based Information Technology Arrangements (SBITA)

The C
ity is a lessor for a noncancellable lease of a buildings, land and cell tower. The City recognizes a lease receivable and a deferred inflow of resources in the government-wide and governmental and proprietary fund
financial statements.

At the c
ommencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, 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 commencement date.

Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.

EXHIBIT A
313
City of Livermore
Notes to Financial Statements
June 30, 2023

Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.

• The City uses 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.

The City has several leasing arrangements accounted for under GASB No. 96, Subscriptions Based Info
rmation Technology Arrangements. At the commencement of a subscription based information technology arrangement (SBITA), the City initially measures the subscription liability at the present value of payments expected to be made during the subscription term. Subsequently, the lease liability is reduced by the principal portion of subscription payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for subscription payments made at or before the subscription commencement date, plus certain initial direct costs. Subsequently, the subscription asset is amortized on a straight -line bas
is over its useful life.

Key estim
ates and judgments include how the Town determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) lease receipts. 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 subscription and will remeasure the subscription if certain changes occur that are expected to significantly affect the amount of the subscription.

Subscription assets are reported with other capital assets and subscription liabilities are reported with long-term debt on the statement of net position.

Deferred Outflows of Resources and Deferred Inflows of Resources

In addition to assets, the statement of net position 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 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 position or governmental fund 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 that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

Pensions and Other Postemployment Benefits

For purposes of measuring the net pension and OPEB liabilities and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City of Livermore’s California Public Employees’ Retirement System (CalPERS) pension and Public Agency Retirement System (PARS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS and PARS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms.

EXHIBIT A
314
City of Livermore
Notes to Financial Statements
June 30, 2023

Property Tax Levy, Collection and Maximum Rates

The State of California Constitution Article XIII(A) provides that the combined maximum property tax rate on any given property may not exceed one percent of its assessed value unless an additional amount for general obligation debt has been approved by voters. Assessed value is calculated at 100 percent of market value as defined by Article XIII(A), generally equivalent to the latest sale price, and may be increased by no more than two percent per year unless the property is sold or transferred. Assessed values may be reduced because of taxpayer-initiated re-assessments or declining sales prices. The State Legislature has determined the method of distribution of receipts from this tax levy among the counties, cities, school districts and other districts.

Secured property tax is due in two installments, on November 1 and February 1, and becomes a lien on those dates. It becomes delinquent on December 10 and April 10, respectively. Unsecured property tax is due on July 1 and become delinquent on August 31.

The term "unsecured" refers to taxes on personal property other than real estate, land, and buildings, such as airplanes, boats, etc. These taxes are secured by liens on the property being taxed.

Revenue Recognition for Water and Sewer Operations

Revenues from residential sewer customers are based on annual billings collected on the tax rolls by Alameda County.

Revenues for sewer services provided but not billed at the end of the fiscal year are estimated and accrued.

Land Held for Redevelopment

Land held for redevelopment includes land parcels used to develop or redevelop blighted properties and are accounted for as investments on the balance sheet at the lower of cost or net realizable value or agreed-upon sales price if a disposition agreement has been made with a developer. Individual parcels which have experienced a market value decline are written down to estimated current market value. No appreciation is recorded if the current market value of an individual parcel exceeds cost.

Use of Estimates

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

Adoption of New Accounting Pronouncements

During the fiscal year ended June 30, 2023, the City implemented the following GASB Pronouncements:

EXHIBIT A
315
City of Livermore
Notes to Financial Statements
June 30, 2023

GASB Statement No. 96 – In May 2020, GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements. The objectives of this Statement is to provide guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. The provisions of this statement have been implemented as further described at Note 19.

GASB Statement No. 91 – In May 2019, GASB issued Statement No. 91, Conduit Debt Obligations. The objectives of this Statement is to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with commitments extended by issuers, arrangements associated with conduit debt obligations, and related note disclosures by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. The requirements of this Statement are effective for reporting periods beginning after December 15, 2021 or FY 2022/2023. The provisions of this statement have been implemented within note 9.

GASB Statement No. 93 – In May 2020, GASB issued Statement No. 93, Replacement of Interbank Offered Rates. The objectives of this Statement is to address those and other accounting and reporting implications resulting from the replacement of an IBOR by providing exceptions for certain hedging derivative instruments to the hedge accounting termination provisions when an IBOR is replaced and providing clarification to the hedge accounting termination provisions, removing LIBOR as a benchmark interest rate for the qualitative evaluation of the effectiveness of an interest rate swap, identifying a Secured Overnight Financing Rate and the Effective Federal Funds Rate as appropriate benchmark interest rates for the qualitative evaluation of the effectiveness of an interest rate swap. The requirements of this Statement are effective for reporting periods beginning after June 15, 2021 or FY 2021/2022, except the removal of LIBOR as a benchmark interest rate which is effective for periods beginning after December 31, 2022 or FY 2023/2024. The Statement did not impact the City’s financial statements.

GASB Statement No. 94 – In March 2020, GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements. The objectives of this Statement improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). The requirements of this Statement are effective for reporting periods beginning after June 15, 2022 or FY 2022/2023. The Statement did not impact the City’s financial statements.

GASB Statement No. 99 – In April 2022, GASB Issued Statement No. 99, Omnibus 2022. The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. Certain requirements of this statement have been implemented as of June 30, 2022. The requirements related to leases, PPPs, and SBITAs are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter. The requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement 53 are effective for fiscal years beginning after June 15, 2023, and all reporting periods thereafter. The Statement did not impact the City’s financial statements.

EXHIBIT A
316
City of Livermore
Notes to Financial Statements
June 30, 2023

Future Accounting Pronouncements

The following GASB pronouncements have been issued, but are not effective as of June 30, 2023:

GASB Statement No. 100 – In June 2022, GASB Issued Statement No. 100, Accounting Changes and Error Corrections – an amendment of GASB Statement No. 62. The objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. The requirements of this Statement are effective for accounting changes and error corrections made in fiscal years beginning after June 15, 2023 and all reporting periods thereafter. The City is evaluating the impact of this Statement on the financial statements.

GASB Statement No. 101 – In June 2022, GASB Issued Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of the financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The requirements of this Statement are effective for fiscal years beginning after December 15, 2023, and all reporting periods thereafter. The City is evaluating the impact of this Statement on the financial statements.

Note 2 - Stewardship, Compliance and Accountability

Budgeting Procedures

The City adopts a biennial operating budget on or before June 30 for each of the ensuing two fiscal years for all funds except the Fiduciary Funds. The operating budget takes the form of a two-year financial plan which is adopted in its entirety by the City Council by a resolution. A mid-period review is conducted in the off-year and appropriations are adjusted accordingly. The fiscal year begins on July 1 and ends on June 30 of the following year.

As Livermore is a general law city, it is not subject to a budgetary process prescribed by statute or charter.

The operating budget is subject to supplemental appropriations throughout its term to provide flexibility to meet changing needs and conditions. A resolution approving a supplemental appropriation is necessary when the original total appropriations for that fund would be exceeded. Similarly, supplemental appropriations and budget transfers between funds and projects need approval from the City Council. Budget adjustments within the same fund may be approved by the City Manager if the total appropriation does not exceed the total approved limit for that fund. All appropriations and encumbrances lapse at year-end. Valid outstanding encumbrances (those for which performance under executory contract is expected in the next fiscal year) are re-appropriated and become part of the subsequent year’s budget.

The operating budget is on a program basis; however, the legal level of budgetary control is at the fund level. For governmental funds, the budget is prepared on a modified accrual basis consistent with generally accepted accounting principles (GAAP), except that land held for redevelopment is treated as an expenditure when purchased, proceeds from the disposition of this land is treated as revenue when measurable and available, and transfers (to) or from different fund categories are treated as budgetary resources (uses). Organizational priorities which have been developed by City Council and City staff are implemented at the program level.

EXHIBIT A
317
City of Livermore
Notes to Financial Statements
June 30, 2023

Fund Balance Deficits / Net Position Deficits

As of June 30, 2023, none of the funds had a significant fund balance/net position deficit.

Note 3 - Cash and Investments

The City pools cash from all sources and all funds, except Cash and Investments held by Trustees, so that it can be invested at the maximum yield consistent with safety and liquidity, while individual funds can make expenditures at any time.

Policies

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 market value of 150% of the deposit, as collateral for these deposits. Under California Law this collateral is held in a separate investment pool by another institution in the City’s name and the City is placed ahead of general creditors of the institution.

The City invests in individual investments and in investment pools. Individual investments are evidenced by specific identifiable 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 increase security, the City employs the Trust Department of a bank as the custodian of certain City managed investments, regardless of their form.

The City’s investments are carried at fair value, as required by generally accepted accounting principles. The City adjusts the carrying value of its investments to reflect their fair value at each fiscal year end, and it includes the effects of these adjustments in income for that fiscal year.

Classification

Cash and investments are classified in the financial statements as shown below, based on whether or not their use is restricted under the terms of City debt instruments or Agency agreements.

Cash and investments in City Treasury 348,490,278$
Cash and investments with Trustees 37,952,177
Total City cash and investments 386,442,455
Cash and investments in Fiduciary Funds (Separate Statement) In City Treasury 14,667,308
With Trustees 2,813,090
Total Fiduciary cash and investments 17,480,398
Total cash and investments 403,922,853$

Cash and investments available for operations is used in preparing proprietary fund statements of cash flows because these assets are highly liquid and are expended to liquidate liabilities arising during the year.

EXHIBIT A
318
City of Livermore
Notes to Financial Statements
June 30, 2023

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 Investment types, provided the credit ratings of the issuers are acceptable to the City and the 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 the City’s Investment Policy is more restrictive.

Authorized Investment Type Maximum Maturity
Minimum Credit
Quality
Maximum
Percentage of
Portfolio
Maximum
Investment in One
Issuer
California Local Agency Bonds* 5 years A None None U.S. Treasury Bills and Notes 5 years N/A None None Obligations issued by United States
Government Agencies
5 years N/A None None
Bankers Acceptances 180 days A 40% 30%
Commercial Paper 270 days A1/P1 10% 10%
Negotiable Certificates of Deposit 5 years None 30% None Repurchase Agreements 1 year None 20% None
Reverse Repurchase Agreements 92 days None 20% None
Medium Term Corporate Notes 5 years A 30% None
Money Market Mutual Funds 5 years Top rating category 15% 10% Collateralized Notes, Bonds, or Other
Obligations Secured by First Priority Security
Interest
5 years N/A None None
Certificates of Deposit 5 years N/A 30% None
California Local Agency Investment Fund 5 years N/A $75 million per $75 million per Passbook Savings Account N/A N/A N/A N/A
Supranationals 5 Years AA 30% None
* No Maximum Maturity or minimum rating on Bonds issued by the City of Livermore.

Under the City’s Investment Policy, investments not described above are ineligible investments. In addition, the City may not invest any funds in inverse floaters, range notes, or interest only strips that are derived from a pool of mortgages in accordance with the California Government Code. Except for callable federal agency securities, any security that derives its value from another asset or index is prohibited. In addition, the City may not invest any funds in any security that could result in zero interest accrual if held to maturity.

Investments Authorized by Debt and Trust Agreements

The City and the Successor Agency to the former Redevelopment Agency must maintain required amounts of cash and investments with trustees or fiscal agents under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged reserves to be used if the City and/or the Successor Agency fail to meet their obligations under these debt issues. The California Government Code requires these funds to be invested in accordance with the City resolutions, bond indentures or State statutes.

EXHIBIT A
319
City of Livermore
Notes to Financial Statements
June 30, 2023

The table below identifies the investment types that are authorized for investments held by fiscal agents.

Authorized Investment Type Maximum Maturity Minimu m Credit Quality Maximum %
Allowed
U.S. Treasury Bills and Notes No Limit NA No L imit
Federal and Local Agency Obligations No Limit NA No L imit Federal funds, unsecured certificates of deposit,
time deposits & bankers acceptances Not more than 360 days A-1 or A-1+ by S&P and P-1 by Moody No Lim it Commercial Paper Not more than 270 days A-1+ by S&P and P-1 by Moody No Limit Money Market Mutual Funds No Limit AAAm or AAAm-G or better by S&P No Limit Municipal Bonds No Limit Aaa or AAA or general obligations of states with a rating of A2/A or high by Moody, S&P, or Fitch No Limit California Local Agency Investment Fund (LAIF) NA NA $75 million per account
Repurchase Agreements 6 mo. or less Equal to or better than existing Certificates by Moody’s No Limit
Investment Agreements No Limit Equal to or better than existing Certificates by Moody’s No Limit
Pre-refunded municipal obligations No Limit Aaa by Moody’s & AAA by S&P; if no Moody’s rating, then must have been pre-refunded with cash. No Limit

Interest Rate Risk

Interest rate risk represents how changes in market interest rates will adversely affect the fair value of an investment. 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.

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 the City’s investments by maturity:

12 Months 13 to 24 25 to 60 More than
Investment Type or less Months Months 60 Months Total
U.S. Government-Sponsored Enterprise Agencies
Callable -$ 23,034,790$ 11,235,610$ -$ 34,270,400$ Non-callable 27,752,561 33,822,221 100,621,804 - 162,196,586 California Local Agency Investment Fund 30,376,825 - - - 30,376,825 Money Market Fund 1,953,709 - - - 1,953,709 Supranational - - 2,706,390 7,722,430 10,428,820 U.S. Treasury Bond - 3,839,840 18,600,688 - 22,440,528 Negotiable Certificates of Deposit 3,608,538 6,910,786 2,439,979 - 12,959,303 Medium Term Corporate Notes 44,950,994 9,448,380 12,793,956 - 67,193,330 Mortgage-backed Security - - 6,577,023 - 6,577,023 Municipal Bonds 265,910 235,913 3,171,821 1,792,000 5,465,644 Total Investments 108,908,537$ 77,291,930$ 158,147,271$ 9,514,430$ 353,862,168 Cash Equivalent 50,060,685
Total Cash and Investments 403,922,853$

EXHIBIT A
320
City of Livermore
Notes to Financial Statements
June 30, 2023

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 organization. Presented below is the actual rating as of June 30, 2023 for each investment type as provided by Standard and Poor’s investment rating service.

Investment Type AAA AA A BBB N ot Rated Total
Rated:

U.S. Agencies
Callable -$ 34,270,400$ -$ -$ -$ 34,270,400$ Non-callable - 162,196,586 - - - 162,196,586 California Local Agency Investment Fund - - - - 30,376,825 30,376,825 Money Market Fund 1,953,709 - - - - 1,953,709 Supranational - 10,428,820 - - - 10,428,820 U.S. Treasury Bond - 22,440,528 - - - 22,440,528 Negotiable Certificates of Deposit - - - - 12,959,303 12,959,303 Medium Term Corporate Notes - 2,918,850 55, 581,930 4,715,550 3,977,000 67,193,330 Mortgage-backed Security - 6,577,023 - - - 6,577,023 Municipal Bonds - 3,673,644 - - 1,792,000 5,465,644 Total Investments 1,953,709$ 242,505,851$ 55,581,930$ 4,715,550$ 49,105,128$ 353,862,168 Cash Equivalent (Overdraft) 50,060,685
Total Cash and Investments 403,922,853$

Local Agency Investment Fund

The City is a participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share. The balance is available for withdrawal on demand and is based on the accounting records maintained 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 agencies, government-sponsored enterprises, United States Treasury Notes and Bills, and corporations.

These investments matured in an average of 260 days. Money Market funds were available for withdrawal on demand at June 30, 2023 with an average maturity of 30 days or less.

Concentration of Credit Risk

Investments in the securities of any individual issuer, other than U. S. Treasury securities, mutual funds, and external investment funds that represent 5% or more of total investments are as follows on June 30, 2023:

Issuer Type of Investments Amount
Entity-wide:

Federal Home Loan Bank U.S. Agency Securities 89,487,203$ Federal Farm Credit Bank U.S. Agency Securities 38,253,123 Federal National Mortgage Association U.S. Agency Securities 26,586,610 Federal Home Loan Mortgage Association U.S. Agency Securities 16,883,695

EXHIBIT A
321
City of Livermore
Notes to Financial Statements
June 30, 2023

Fair Value Measurement of Investments

The City categorizes the fair value measurements of its investments based on the hierarchy established by generally accepted accounting principles. The fair value hierarchy, which has three levels, is based on the valuation inputs used to measure an asset's fair value. The following provides a summary of the hierarchy used to measure fair value:

• Level 1 - Quoted prices in active markets for identical assets that the City has the ability to access at the measurement date. Level 1 assets may include debt and equity securities that are traded in an active exchange market and that are highly liquid and are actively traded in over-the-counter markets.

• Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets in active markets, quoted prices for identical or similar assets in markets that are not active, or other inputs that are observable, such as interest rates and curves observable at commonly quoted intervals, implied volatilities, and credit spreads. For financial reporting purposes, if an asset has a specified term, a Level 2 input is required to be observable for substantially the full term of the asset.

• Level 3 - Unobservable inputs should be developed using the best information available under the circumstances, which might include the City's own data. The City should adjust that data if reasonable available information indicates that other market participants would use different data or certain circumstances specific to the City are not available to other market participants.

The City's fair value measurements are as follows at June 30, 2023:

Level 1 Level 2 Level 3 6/30/2023
U.S. Government-Sponsored Enterprise Agencies
Callable -$ 34,270,400$ -$ 34,270,400$ Non-callable - 162,196,586 - 162,196,586 Supranational - 10,428,820 - 10,428,820 U.S. Treasury Bond 22,440,528 - - 22,440,528 Medium Term Corporate Notes - 67,193,330 - 67,193,330 Municipal Bonds - 3,673,644 1,792,000 5,465,644 Negotiable Certificates of Deposit - 12,959,303 - 12,959,303 Mortgage-backed Security - 6,577,023 - 6,577,023 Total investments measured at fair value 22,440,528$ 297,299,106$ 1,792,000$ 321,531,634 Investments Measured at Amortized Cost:

Money Market Mutual Funds 1,953,709
Investments Exempt from Fair Value Hierarchy:

California Local Agency Investment Fund 30,376,825
Cash Equivalent 50,060,685
Total Cash and Investments 403,922,853$
Fair Value Measurements Using
Levels

EXHIBIT A
322
City of Livermore
Notes to Financial Statements
June 30, 2023

The California Local Agency Investment Fund (LAIF) is valued using a factor provided in the Pooled Money Investment Account (PMIA) Performance Report by the State Treasurer's Office. Investments classified in Level 2, were valued using prices provided by the City’s custodian bank. Fair value is defined as quoted market value on the last day of the period.

The City issued Pleasant View Limited Obligation Improvement Bonds, Series 2018 for and on behalf of Assessment District No.2016-2 in the amount of $967,537 on June 14, 2018, as a direct placement debt. The City also issued Trevarno Road Limited Obligation Improvement Bonds, Series 2021 for and on behalf of Assessment District No.2021-1 in the amount of $912,000 on January 6, 2022, as a direct placement debt. The City then purchased these bonds as an investment. These investments are not traded in the open market and, therefore, measured at Level 3 as per GASB Statement No. 72 since the valuation inputs for this bond are unobservable. As of June 30, 2023, the balance outstanding for these bonds is $1,792,000. Additional information is provided in Note 9.

Note 4 - Interfund Transactions

Current Interfund Balances

Current interfund balances arise in the normal course of business and represent short-term borrowings occurring as a result of expenditures which are paid prior to the receipt of revenues. These balances are expected to be repaid shortly after the end of the fiscal year when revenues are received. There were no current amounts due from one fund to another at June 30, 2023.

Transfers between Funds

With Council approval, resources may be transferred from one City fund to another. The purpose of the majority of transfers is to subsidize operations of programs and funds which are not self-sustaining. Less often, a transfer may be made to open or close a fund. Interfund transfers for the year ended June 30, 2023 are summarized below.

Fund Receiving Transfers Fund Making Transfers
Amount
Transferred
General Fund Non-Major Governmental Funds 276,201$ A Non-Major Governmental Funds General Fund 5,903,386 B Non-Major Governmental Funds 493,000 C
Stormwater Enterprise Fund General Fund 2,300,000 C Total Interfund Transfers 8,972,587$
A - Transfer for reimbursement for administrative costs B - Transfers of approximately $5.36 million for the debt service payments and the rest as operating subsidies C - Operating subsidy

EXHIBIT A
323
City of Livermore
Notes to Financial Statements
June 30, 2023

Long-Term Interfund Advances

The City’s General Fund made an advance of $4,720,000 to the Other Impact Fees Special Revenue Fund for downtown revitalization and the loan will be repaid to the General Fund as the fees are collected. No payment was made during fiscal year 2022-2023. The balance as of June 30, 2023 is $3,874,396.

Internal Balances

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements.

Exceptions to this general rule are payments in lieu of taxes where the amounts are reasonably equivalent in value to the interfund services provided and other charges between the government’s airport, water, stormwater, and sewer functions and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Internal balances are presented in the government-wide financial statements only. They represent the net interfund receivables and payables remaining after the elimination of all such balances within governmental and business-type activities.

Note 5 - Notes Receivable

As of June 30, 2023, Notes Receivables balances are as follows:

General
Fund
Housing
Successor
Low Income
Housing
Housing &
Community
Assista
nce
Other Impact
Fee
Other Local,
State and
Fede
ral Grants
Other Special
Revenue Funds Total
Deferred Second Mortgage Program -$ -$ 16,898, 928$ 651,612$ -$ 1,542,998$ -$ 19,093,538$ Rehabilitation Loan Program - - 1,175, 924 13,680 - 210,618 - 1,400,222 Livermore Housing Authority - - - - - 1,153,670 - 1,153,670 Las Posadas - - 680,000 - - 219,000 - 899,000 Valley Care Senior Housing Project - - 800,000 - - - - 800,000 2891 Carmen LP - - 2,665, 000 - - 230,000 - 2,895,000 MidPen Housing - - 9,999, 982 - - - - 9,999,982 California Water Service Agreement(s) 66,340 66,340 2205 Railroad LLC 64,369 - - - - - - 64,369 Tri-Valley BMR (Vineyard 2.0) - 2,457,750 3, 254,728 - 1,620,135 - - 7,332,613 Loans to Successor Agency of former RDA - 443,438 - - - - - 443,438 Eden Housing Project - 811,149 1, 400,000 - - 100,000 - 2,311,149 Livermore Independent Living Associates Project - 2,372,631 - - - - - 2,372,631 Affordable Housing Loans - 171,760 - - - - - 171,760 Totals 64,369$ 6,256,728$ 36,874,562$ 665,292$ 1,620,135$ 3,456,286$ 66,340$ 49,003,712$

The City administers a Deferred Second Mortgage Program and a Rehabilitation Loan Program. Under these Programs, individuals with incomes below a certain level are eligible to receive low interest loans, secured by second deeds of trust, to help purchase their home or rehabilitate it. Upon approval of loans, the City disburses the funds, arranges for, and collects repayments.

In fiscal year 1994-95, the City loaned Livermore Housing Authority $643,670 for two apartments at 1031 and 1045 Bluebell Drive. These loans are due 30 years from the date of the original loan. In 2022, the Housing Authority reached out to the City to extend the payment terms and the City agreed if other terms were met. Those terms are still being worked out by the Housing Authority and City. From the discussion, if any new rehabilitation loans are made, they will bear interest at 3%, be due 55 years from the date of the loan, and be paid back from residual receipts

EXHIBIT A
324
City of Livermore
Notes to Financial Statements
June 30, 2023

In fiscal year 1994-95, the City loaned Livermore Housing Authority $643,670 for two apartments at 1031 and 1045 Bluebell Drive. These loans are due 30 years from the date of the original loan. In 2022, the Housing Authority reached out to the City to extend the payment terms and the City agreed if other terms were met. Those terms are still being worked out by the Housing Authority and City. From the discussion, if any new rehabilitation loans are made, they will bear interest at 3%, be due 55 years from the date of the loan, and be paid back from residual receipts.

In fiscal year 2005-06, the City loaned Livermore Housing Authority $510,000 from the Housing Trust Fund to be used for the acquisition of six units for low-income individuals located at 2276-2280 Chestnut Street. The loan bears interest at 3.00% per annum on the outstanding principal from the date of the closing of the permanent loan. The principal and all the interest will be due and payable on the earlier of the date the property is sold or when the permanent loan is refinanced. In the event of residual receipts, payments of principal and interest will commence on July 1, 2008 until the loan is paid in full or terminated.

In fiscal year 1999-2000, the City loaned Allied Housing Inc. $899,000 from Home Funds and Housing In-Lieu Funds to be used for the acquisition of the property and rehabilitation improvements. The loan bears interest at 3.00% per annum on the outstanding principal from the date of the closing of the permanent loan. The principal and all the interest will be due and payable on the earlier of 55 years from the date of the Note, or the date the property is sold or when the permanent loan is refinanced.

As part of the Valley Care Senior Housing Project, Agency funds transferred to the City’s Housing and Community Assistance Fund in fiscal year 2001-02 were used to finance the Developer Loan in the amount of $800,000 which was used to partially finance City and County Development Fees. The loan bears interest at ten percent, is due in fifty-seven years and is secured by a subordinated deed of trust.

If the project maintains affordability covenants through maturity the interest rate will drop to five percent and eventually the five percent interest accrued will be forgiven.

In fiscal year 2006-07 the City loaned 2891 Carmen LP a total of $2,895,000 in two separate notes. One note for $2,665,000 from the Housing-In-Lieu Fund, with simple interest at 3% per year and payments to be made from residual receipts annually. The other note for $230,000 is from the CDBG Fund ($130,000), and HOME Fund ($100,000), with simple interest at 5% per year and payments to be made from residual receipts annually.

In fiscal year 2015-16 the City entered into a DDLA agreement with MidPen Housing and loaned a total of $9,999,982 for the development of affordable housing. One note for $649,982 was made in fiscal year 2016-17 for predevelopment, with simple interest of 3% annually. Another loan for $9,350,000 for the actual development was funded in fiscal years 2017-18 and 2018-19. The loans will be due 55 years from the date of the loan and be paid back from residual receipts.

In July 1990 and September 1992, the City and California Water Service Company (“Calwater”) entered into agreements to make annual payments for a term of 40 years to the City of Livermore for water lines sold to Calwater under Consolidated Refunding District 2002, College Avenue. The balance outstanding on this loan on June 30, 2023 is $66,340.

EXHIBIT A
325
City of Livermore
Notes to Financial Statements
June 30, 2023

In fiscal year 2022-23 the City entered into an agreement with 2205 Railroad Avenue LLC for the development of a four-story hotel site and received a note for $64,369. The note is interest-free and is due no later than December 31, 2025.

The former Redevelopment Agency (RDA) engaged in programs designed to encourage construction of or improvement to low-to-moderate income housing. Under these programs, grants or loans are provided under favorable terms to homeowners or developers who agree to expend these funds in accordance with the Agency’s terms.

With the dissolution of the former Redevelopment Agency the City became the Successor to the former Redevelopment Agency’s housing activities and as a result, the Housing Successor Fund assumed the notes receivable of the former Redevelopment Agency’s Low- and Moderate-Income Housing Fund. The balances of the notes receivable in the Housing Successor Fund at June 30, 2023 are set forth below:

From fiscal year 2018-19 to 2022-23, the City entered into multiple agreements Tri-Valley BMR for the Vineyard 2.0 Project development of affordable housing and other services to assist the low-income community. These loans are spread among several funds and have interest at 3% per year. As of June 30, 2023, the outstanding balance totals $7,332,643, of which $2,457,750 is from the Housing Successor Fund, $3,254,758 is from the Low-Income Housing Fund, and $1,620,135 is from the Other Impact Fee Fund.

During the fiscal year ended June 30, 2010, the former RDA approved an interfund advance of $1,561,803 from the Low and Moderate Income Housing fund to the former Agency’s Capital Projects Fund to make the required payment to the Supplemental Education Revenue Augmentation Fund (SERAF). During the fiscal year ended June 30, 2011, the former Agency approved a second interfund advance in the amount of $321,548 for a total of $1,883,351. As of June 30, 2023, the outstanding balance is $443,438.

From fiscal year 1992 to 2000, the former RDA and the City entered into agreements with the Eden Housing Project, the proceeds of which were used for land acquisition and development of low- and moderate-income housing and have interest at 3%. As of June 30, 2023, the outstanding balance totals $2,311,149, of which $811,149 is from the Housing Successor Fund, $1,400,000 is from the Low-Income Housing Fund, and $100,000 is from the Other Local, State and Federal Grant Funds.

In 2009, the former RDA agreed to a property tax loan, extended to the Livermore Senior Associates LLC, which bears interest at 4%. Annual repayments begin after the project is complete commencing in year eight from available cash flows of the project. In fiscal year 2017-18, loan advances have ceased, and the loan repayment period commenced.

The principal balance was adjusted to match the repayment schedule. As of June 30, 2023, the outstanding loan balance was $2,372,632.

In April 2011, the former RDA loaned an individual $199,032 from Low- and Moderate-Income Housing Funds to be used for the purchase of an affordable housing unit. To assist in the refinancing of a below market rate unit, the City originally loaned the borrower $61,000. To further assist, the City increased that loan to $184,652 (original loan of $61,000 included). The balance of the two loans as of June 30, 2023 is $171,760

EXHIBIT A
326
City of Livermore
Notes to Financial Statements
June 30, 2023

Note 6 - Lease Receivables

The City, as a lessor, has entered into long-term non-cancelable lease agreements for buildings, parking lots, land, facilities, and cell sites, which expire at various dates through 2061. During the year ended June 30, 2023, the City recognized $755,138 and $442,048 in lease revenue and interest revenue, respectively, pursuant to these contracts.

As of June 30, 2023, the City has a receivable for lease payments of $12,699,291, and a balance of deferred inflow of resources of $12,269,656. The future lease payments were discounted at a rate of 1.92% to 3.57%, depending on the length of the lease.

Note 7 - Capital Assets

All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available.

Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are valued at acquisition cost. Some capital assets may be acquired using Federal and State grant funds, or they may be contributed by developers or other governments. Generally accepted accounting principles requires that these contributions be accounted for as revenues at the time the capital assets are contributed.

The City’s policy is to capitalize infrastructure with a cost exceeding $100,000 and other capital assets with a cost exceeding $25,000 and with useful lives exceeding one year.

The City has recorded all its public domain (infrastructure) capital assets, which include roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems in its government–wide financial statements.

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

Depreciation of all capital assets is charged as an expense against operations each year and the total amount of depreciation taken over the years, called accumulated depreciation, is reported on statement of Net Position as a reduction in the book value of the capital assets.

Depreciation of capital assets in service is provided using the straight-line method which means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated. The City has assigned the useful lives listed below to capital assets.

Buildings 25-50 years
Improvements 20-50 years
Equipment 3-20 years
Library books 3-20 years
Licensed Vehicles 3-20 years
Infrastructure 25-50 years

EXHIBIT A
327
City of Livermore
Notes to Financial Statements
June 30, 2023

Capital Asset Additions and Retirements

Capital asset activity for the year ended June 30, 2023 comprises the following:

Balance Retirements Transfers/ Balance at
June 30, 2022 Additions and adjustments Reclas sification June 30, 2023 Governmental Activities
Governmental Fund Capital Assets
Capital assets not being depreciated:

Land 43,845,980$ -$ -$ -$ 43, 845,980$ Intangible asset - easement 4,542,933 - - - 4, 542,933 Construction in progress 72,849,888 10,608,451 - - 83,458,339 Subtotal 121,238,801 10,608,451 - - 131,847,252 Capital assets being depreciated, cost:

Office equipment 2,959,651 - (306,979) - 2,652,672 Other equipment 9,576,754 343,682 (449, 590) - 9,470,846 Library books 2,062,340 - - - 2, 062,340 Licensed vehicles 261,992 27,999 - - 289,991 Infrastructure 360,546,455 2,174,895 ( 288,384) - 362,432,966 Buildings 123,688,658 - (49,348) - 123,639,310 Subtotal 499,095,850 2,546,576 ( 1,094,301) - 500,548,125 Accumulated Depreciation:

Office equipment (2,705,796) (50,642) 306, 450 - (2,449,988) Other equipment (7,201,350) (229,695) 398, 744 - (7,032,301) Library books (2,062,340) - - - ( 2,062,340) Licensed vehicles (203,400) (20,114) - - (223,514) Infrastructure (194,779,073) (8,691,147) 283,544 - (203,186,676) Buildings (46,274,503) (2,565,457) 49,349 - (48,790,611) Subtotal (253,226,462) (11,557,055) 1,038,087 - (263,745,430) Net Governmental Funds
capital assets being depreciated 245,869,388 (9,010,479) (56,214) - 236,802,695 Right-to-use subscription IT assets being amortized
Right-to-use subscription IT assets 3,399,931 - - - 3, 399,931 Accumulated amortization - (596,329) - - (596,329) Net right-to-use subscription IT assets 3,399,931 (596,329) - - 2,803,602 Total Governmental Funds
capital assets 370,508,120$ 1,001,643$ ( 56,214)$ -$ 371,453,549$

EXHIBIT A
328
City of Livermore
Notes to Financial Statements
June 30, 2023

Balance at Retirements Transfe rs/ Balance at
June 30, 2022 Additions and A djustments Reclassification June 30, 2023 Internal Service Fund Capital Assets
Capital assets not being depreciated:

Construction in progress 591,211$ 1,501,937$ -$ (221,257)$ 1,871,891$ Subtotal 591,211 1,501,937 - (221,257) 1,871,891 Capital assets being depreciated, cost:

Office equipment 2,718,194 161,076 ( 111,498) - 2,767,772 Other equipment 1,238,803 - (105, 703) - 1,133,100 Infrastructure 12,406,587 - - - 12,406,587 Licensed vehicles 17,796,113 1,572,254 (1,362,282) 221,257 18,227,342 Subtotal 34,159,697 1,733,330 (1,579,483) 221,257 34,534,801 Accumulated Depreciation:

Office equipment (2,424,448) (134,643) 109,481 - (2,449,610) Other equipment (614,835) (72,989) 105,704 - (582,120) Infrastructure (3,118,596) (821,330) - - (3,939,926) Licensed vehicles (11,845,060) (1,322, 086) 1,321,198 - (11,845,948) Subtotal (18,002,939) (2,351, 048) 1,536,383 - (18,817,604) Net Internal Service Fund
capital assets being depreciated 16,156,758 (617,718) (43,100) 221,257 15,717,197 Right-to-use subscription IT assets being amortized
Right-to-use subscription IT assets 592,396 - - - 592,396 Accumulated amortization - (151,199) - - (151,199) Net right-to-use subscription IT assets 592,396 (151,199) - - 441,197 Total Internal Service Funds 17,340,365 733,020 ( 43,100) - 18,030,285 Governmental activity capital assets, net 387,848,485$ 1,734,663$ ( 99,314)$ -$ 389,483,834$

EXHIBIT A
329
City of Livermore
Notes to Financial Statements
June 30, 2023

Balance Retirements Transfers/ Balance at
June 30, 2022 Additions and adjustments Reclassification June 30, 2023 Business-type activities
Capital assets not being depreciated:

Land 13,380,924$ -$ -$ -$ 13,380,924$ Land improvements 634,433 - - - 634,433 Construction in progress 8,088,817 6,031,064 - - 14,119,881 Subtotal 22,104,174 6,031,064 - - 28,135,238 Capital assets being depreciated:

Office equipment 704,549 - (56,769) - 647,780 Other equipment 8,273,531 54,205 (496,151) - 7,831,585 Licensed Vehicles 910,008 - (200,416) - 709,592 Airport infrastructure 12,770,892 - (780,159) - 11,990,733 Water infrastructure 59,911,630 25,935 - - 59,937,565 Sewer infrastructure 142,982,434 27,620 (917,828) - 142,092,226 Storm Drain infrastructure 111,051,698 256,971 - - 111,308,669 Stormwater infrastructure 1,011,473 - - - 1,011,473 Buildings 22,674,452 - (16,733) - 22,657,719 Subtotal 360,290,667 364,731 (2,468,056) - 358,187,342 Accumulated Depreciation:

Office equipment (394,538) (58,749) 56,769 - (396,518) Other equipment (1,593,777) (459,159) 471,368 - (1,581,568) Licensed Vehicles (480,283) (34,178) 200,415 - (314,046) Airport infrastructure (11,116,410) (94,087) 780,159 - (10,430,338) Water infrastructure (28,582,519) (1,666,147) - - (30,248,666) Sewer infrastructure (91,719,698) (3,397,414) 916,349 - (94,200,763) Storm Drain infrastructure (89,186,801) (1,912,517) - - (91,099,318) Stormwater infrastructure (198,853) (44,651) - - (243,504) Buildings (11,278,399) (449,172) 16,734 - (11,710,837) Subtotal (234,551,278) (8,116,074) 2,441,794 - (240,225,558) Net capital assets being depreciated 125,739,389 (7,751,343) (26,262) - 117,961,784 Right-to-use subscription IT assets being amortized
Right-to-use subscription IT assets 426,266 - - - 426,266 Accumulated amortization - (49,184) - - (49,184) Net right-to-use subscription IT assets 426,266 (49,184) - - 377,082 Business-type activity capital assets, net 148,269,829$ (1,769,463)$ (26,262)$ -$ 146,474,104$

EXHIBIT A
330
City of Livermore
Notes to Financial Statements
June 30, 2023

Depreciation Allocation

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

Governmental
Activities
Business-Type
Activities
General Government 2,492$ -$
Fire 322,347 -
Police 346,296 -
Public Works 11,636,219 -
Community Development 1,609,946 -
Library 738,331 -
Airport - 347,231
Water - 1,746,300
Sewer - 4,109,486
Storm Water - 1,962,241
Total Depreciation Expense 14,655,631$ 8,165,258$ Depreciation and amortization

EXHIBIT A
331
City of Livermore
Notes to Financial Statements
June 30, 2023

Note 8 - Long-Term Liabilities

Long-Term Debt Schedule:

The City’s debt comprises bonds, loans, notes, certificates of participation (COP), and refunding certificates of participation. Certificates of participation 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. Details of the individual debt issues and transactions are set forth below:

Balance at Additions Balance at Current
June 30, 2021 (Retirements) June 30, 2022 Portion
Governmental Activities
Certificates of Participation:
2020A, 4%, 2042 7,285,000$ (205,000)$ 7,080,000$ 230,000$ Unamortized Premium 1,285,103 (64,255) 1,220,848 64,255 2020B, 4%, 2030 32,959,948 (2,611,198) 30,348,750 2,718,660 Unamortized Premium 5,468,829 (519,920) 4,948,909 519,919 2022, 5%, 2052 - 40,215,000 40,215,000 665,000 Unamortized Premium - 482,323 482,323 16,632 Housing & Urban Development Loan, varies, 2030 818,197 (90,758) 727,439 90,758 Internal Service Funds:

Financed Purchase:

Banc of America Equipment Purchase Loan 6,148,494 (794,252) 5,354,242 856,119 Total governmental activities debt 53,965,571$ 36,411,940$ 90,377,511$ 5,161,343$ Business-type Activities
Airport
Certificates of Participation:
2020B, 4%, 2030 3,564,255$ (168,306)$ 3,395,949$ 176,008 Unamortized Premium 621,673 (39,330) 582,343 39,330 Financed Purchase:

Banc of America Equipment Purchase Loan 241,127 (31,202) 209,925 33,633 Water
Certificates of Participation:
2020B, 4%, 2030 2,605,797 (245,494) 2,360,303 255,333 Unamortized Premium 421,997 (46,888) 375,109 46,888 0 Total business-type activities debt 7,454,849$ (531,220)$ 6,923,629$ 551,192$

Long Term Debt

2020 Certificates of Participation

On June
25, 2020, the City issued tax-exempt 2020 Certificates of Participation (2020 COP) to refinance the 2011 COP, 2014 COP Series A and 2014 COP Series B. There are two semi-annual debt service payments, consisting of principal
payments due annually on April 1 and interest payments due on October 1 and April 1, which are payable solely from and secured by the lease payments made by the City to the Public Property Financing Corporation of California. Lease payments will be made by the City pursuant to the Lease Agreement for the use and occupancy of the Leased Property, which comprises of the City’s police facility and civic center library located in the City’s Civic Center.

EXHIBIT A
332
City of Livermore
Notes to Financial Statements
June 30, 2023

The 2020 Certificates of Participation Series A (2020 COP Series A) are qualified 501(c)(3) certificates and are issued in the principal amount $7,465,000 to refund the 2014 COP Series A (Livermore Valley Performing Arts Center Refunding) and to pay certain costs of executing and delivering the 2020 Series A Certificates.

Lease payments for 2020 COP Series A will be made by the pledged revenue of the Host Community Impact Fee Special Revenue Fund.

The City issued $42,035,000 principal amount of 2020 Certificates of Participation Series B, (2020 COP Series B) to refund the outstanding principal balance of $14,945,000 for the 2011 COP and $35,530,000 for the 2014 COP Series B as well as to fund certain costs of executing and delivery of the Certificates. Lease payments for 2020 COP Series B will be made by the General Fund, Airport Enterprise Fund, and Water Enterprise Fund.

2022 Certificates of Participation

On Nov
ember 1, 2022, the City issued tax-exempt 2022 Certificates of Participation (2022 COP) to finance the design and construction of a parking garage to provide adequate parking for all existing and new development and other improvements of the City and pay certain costs of executing and delivering the Certificates. There are two semi-annu al
debt service payments, consisting of principal payments due annually on April 1 and interest payments due on October 1 and April 1, which are payable solely from and secured by the lease payments made by the City to the Public Property Financing Corporation of California. Lease payments will be made by the City pursuant to the Lease Agreement for the use and occupancy of the Leased Property, which comprises of the City’s police facility and civic center library located in the City Hall and the Civic Center Meeting Hall. Lease payments for 2022 COP will be made by the General Fund.

Hud Sec
tion 108 Loans – Direct Borrowing:

In fiscal year 2010, the City received a Section 108 loan in the amount of $1,320,000 from the Department of Housing and Urban Development to purchase the Hagemann Farms. The principal payments are due annually from 2012 through 2030. As of June 30, 2023, the outstanding loan balance was $480,000.

In May 2014, the City entered into a Public Participation Jurisdiction (PPJ) agreement with Alameda County and the Cities of Dublin and Pleasanton to jointly repay a $1,250,000 Section 108 loan guarantee from the US Department of Housing and Urban Development (HUD). This loan was obtained to renovate a building owned by Axis Community Health at 5925 West Las Positas Boulevard, Pleasanton, to expand medical and mental health services throughout the Tri-Valley region. The City of Pleasanton drew $950,000 only since Alameda County paid its share of $300,000 in cash.

The City of Livermore has committed to pay $387,505 or approximately 41% of the total loan amount of $950,000. As of June 30, 2023, the outstanding loan balance was $247,439. Payment of the loan is made out of the Other State, Federal, and Local Grants Fund.

EXHIBIT A
333
City of Livermore
Notes to Financial Statements
June 30, 2023

Financed Purchase

Bank of America Equipment Purchase Loan

On October 24, 2012, the City entered into an equipment purchase agreement with Bank of America Public Capital Corp to install photovoltaic panels and streetlights throughout the City. The present value of minimum lease payments in the amount of $12,538,957 were initially reported on the financial statements. Rental payments are due in 180 uneven monthly payments ranging from $69,892 to $115,868 and include interest at the rate of 2.59%. Monthly lease payments began on November 24, 2013 and end on October 24, 2028. Because loan payments did not begin until construction was completed in November 2013, the accrued interest of $110,494 for July through October was capitalized and added to the principal balance at that time. Loan payments are being made by the Facilities Rehabilitation Internal Service Fund and the Airport Enterprise Fund.

Debt Service Requirements

Debt service requirements are shown below for all long-term debt, including capital lease obligations.

For the Year
Ending June 30 Principal Interest Principal Interest
2024 4,560,537$ 3,508,745$ 464,972$ 244,417$ 2025 4,793,637 3,328,514 484,391 226,678 2026 5,043,782 3,139,279 505,124 208,186 2027 5,269,770 2,941,077 528,522 188,928 2028 5,524,950 2,733,974 551,386 168,826 2029-2033 18,236,523 10,867,326 1,958,158 529,125 2034-2038 10,615,178 8,158,929 864,678 244,946 2039-2043 11,231,054 5,702,206 608,946 65,250 2044-2048 9,280,000 3,610,650 - - 2049-2052 9,170,000 1,144,406 - - Total 83,725,431$ 45,135,106$ 5,966,177$ 1,876,356$ Premium, net of amortization 6,652,080 957,452 90,377,511$ 6,923,629$
Governmental Activities Business-type Activities

EXHIBIT A
334
City of Livermore
Notes to Financial Statements
June 30, 2023

Subscription-Based Information Technology Arrangements

A subscription-based IT arrangement (SBITA) is defined as a contractual agreement that conveys control of the right to- use another entity’s IT asset, alone, or in conjunction with a tangible capital asset, for a minimum contractual period of greater than one year, in an exchange or exchange-like transaction. The City enters into SBITAs such as software licenses downloaded or available remotely, data storage, and hardware necessary to use the IT asset. The related obligations are presented in the amounts equal to the present value of SBITA payments, payable during the remaining SBITA term. As the licensee, the City recognizes a SBITA liability and an associated intangible-SBITA asset on the Statement of Net Position.

The City has several leasing arrangements accounted for under GASB No. 96, Subscriptions Based Information Technology Arrangements. These arrangements are summarized below.

Licensee Activities

The City has accrued liabilities for eight subscription based information technology (IT) arrangements as of June 30, 2023. Software subscriptions accrued provide the City with remote desktops capabilities, and enterprise application functionality. The remaining liability for these subscriptions is $3,575,371 as of June 30, 2023, respectively. Right to use assets, net of amortization, for these subscriptions is $3,621,881 as of June 30, 2023. Interest expense recognized on these subscriptions was $22,958 for the fiscal year ended June 30, 2023. Principal payments of $796,712 were recognized in the year ended June 30, 2023. Final payment on these subscription arrangements is expected in fiscal year 2033.

Balance at Additions Balance at Current
June 30, 2022 (Retirements) June 30, 2023 Portion
Governmental Activities
Governmental Fund Capital Assets
Subscriptions payable 3,394,131$ (618,111)$ 2,776,020$ 763,281$ Internal Service Fund Capital Assets
Subscriptions payable 592,396 (169,637) 422,759$ 167,706 Total governmental activities 3,986,527$ (787,748)$ 3,198,779$ 930,987$ Business-type Activities
Water
Subscriptions payable 70,334$ (7,569)$ 62,765$ 7,395$ Sewer
Subscriptions payable 321,574 (34,646) 286,928 33,806 Stormwater
Subscriptions payable 30,148 (3,249) 26,899 3,169 Total business-type activities 422,056$ (45,464)$ 376,592$ 44,371$

EXHIBIT A
335
City of Livermore
Notes to Financial Statements
June 30, 2023

The City’s schedule of future payments included in the measurement of leases payable is as follows:

For the Year
Ending June 30 Principal Interest Principal Interest
2024 930,987$ 77,106$ 44,371$ 10,703$ 2025 959,129 62,117 47,284 9,442 2026 776,559 36,528 50,329 8,098 2027 282,020 16,086 53,513 6,668 2028 78,492 7,107 56,838 5,147 2029-2033 171,592 7,386 124,257 5,349 Total 3,198,779$ 206,330$ 376,592$ 45,407$ Governmental Activities Business-type Activities

Compensated Absences

Compensated absences are comprised of unused vacation leave and certain compensated time off and are accrued as earned. Compensated absences are liquidated by the fund that has recorded the liability. The long-term portion of governmental activities compensated absences is liquidated primarily by the General Fund. The liability for compensated absences is determined annually. For all governmental funds, amounts expected to be paid out for permanent liquidations due to terminations and retirements are recorded as fund liabilities; the long-term portion is recorded in the Statement of Net Position. Sick pay does not vest and is not accrued.

The change in compensated absences for the fiscal year 2023 was as follows:

Governmental Business Type
Activities Activities Total
Beginning balance 4,026,805$ 632,840$ 4,659,645$ Additions 1,703,201 312,353 2,015,554 Payments (1,553,728) (293,269) (1,846,997) Ending balance 4,176,278$ 651,924$ 4,828,202$ Current portion 1,266,330$ 244,773$ 1,511,103$

EXHIBIT A
336
City of Livermore
Notes to Financial Statements
June 30, 2023

Note 9 - Special Assessment District Debt with No City Commitment

Special assessment districts, including Mello Roos Districts, exist in various parts of the City to provide improvements to properties located in those districts. Properties are assessed for the cost of improvements; these assessments are payable over the term of the debt issued to finance the improvements and must be sufficient to repay this debt. The City acts solely as the collecting and paying agent for the special assessment district debt issues below, but it has no direct or contingent liability or moral obligation for the payment of this debt. This debt is not included in the general debt of the City. The outstanding balance of each of these issues as of June 30, 2023 is as follows:

District
Balance at
June 30, 2022
Additions
(Retirements)
Balance at
June 30, 2023
Current
Portion
Community Facilities District No. 2009-1 (El Charro)
2015 Refunding Special Tax Note 16,843,451$ (488,804)$ 16,354,647$ 515,145$ 2016 Special Tax Bonds 4,318,815 (105,108) 4,213,707 109,207 2017 Special Tax Note 2,568,315 (121,279) 2,447,036 127,039 Community Facilities District No. 1999-1 (Tri-Valley Technology Park) Special Tax Bonds Series 2015 10,295,000 (1,010,000) 9,285,000 1,035,000 Community Facilites District No. 2016-2 (Shea Properties) Special Tax Refunding Bonds, Series 2016 8,500,000 (340,000) 8,160,000 360,000 Assessment District 2016-2 (Pleasant View)
Improverment Bonds, Series 2018 900,000 (20,000) 880,000 20,000 Assessment District 2021-1 (Trevarno Road)
Improverment Bonds, Series 2022 912,000 - 912,000 18,000 Total 44,337,581$ (2,085,191)$ 42,252,390$ 2,184,391$

Community Facilities District (CFD) No. 2009-1 (E l Charro)

2015 Refunding Special Tax Note – O
n June 1, 2015, the City on behalf of El Charro CFD No. 2009-1 entered into a special tax loan agreement with Livermore Premium Outlets, LLC. This loan was issued to refund the remaining principal amounts of the 2012 and 2014 loans.

2016 Special Tax Bonds – O
n September 1, 2016 the City on behalf of El Charro CFD No. 2009-1 entered into a special tax loan agreement with Crosswinds Church. The Bonds were issued to fund certain public infrastructure improvements within the CFD.

2017 Special Tax Note – O
n July 14, 2017 the City on behalf of El Charro CFD No. 2009-1 entered into a special tax loan agreement with Livermore Investments, LLC. This loan was issued to fund certain public infrastructure improvements within the CFD.

Community Facilities District No. 1999-1 (T
ri-valley Technology Park) Special Tax Bonds, Series 2015 On May 28, 2015, the City sponsored the issuance of the Community Facilities District No. 1999-1 (Tri-valley Technology Park) Special Tax Bonds, Series 2015. The Bonds were issued to defease and refund remaining principal amount of Community Facilities District No. 1999-1 (Tri-valley Technology Park) Special Tax Bonds, Series 2000.

EXHIBIT A
337
City of Livermore
Notes to Financial Statements
June 30, 2023

Community Facilities District No. 2016-2 (S hea Properties) Special Tax Refunding Bonds, Series 2016 On December 22, 2016, the City sponsored the issuance of Community Facilities District No. 2016-2 (Shea Properties) Special Tax Refunding Bonds, Series 2016. The bonds were issued to defease and refund the remaining principal amount of the Community Facilities District No 2006-1 (Shea Properties) Special Tax Bonds, Series 2006.

Assessment District No. 2016-2 (P leasant View) Limited Obligation Improvement Bonds, Series 2018 On June 14, 2018, the City issued bonds to fund certain public infrastructure improvements within the assessment district. The improvements included connections to the sanitary sewer service system, installation of streetlights, fire hydrants, provide for emergency vehicle access, and the addition of sidewalk curb and gutters to the required standards of the City. For additional information, see Note 3.

Assessment District No. 2021-1 (T
revarno Road) Limited Obligation Improvement Bonds, Series 2022 On January 6, 2022, the City issued bonds to fund certain public infrastructure improvements within the assessment district. The improvements included connections to the sanitary sewer service system and improvements to the water infrastructure. For additional information, see Note 3.

Note 10 - Net Position and Fund Balances

Net Position is measured on the full accrual basis, while Fund Balance is measured on the modified accrual basis.

Net Position

Net Position is the excess of all the City’s assets and deferred outflows of resources over all its liabilities and deferred inflows of resources, regardless of fund. Net Position is divided into three captions. These captions apply only to Net Position, which is determined only at the Government-wide level, and are described below:

Net Investment 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. See table below for calculation of Net Investment in Capital Assets from portions of the Statement of Net Position.

Governmental
Activities
Business-Type
Activities Total
Net Assets:

Land, easements and construction in progress 133,719,143$ 28,135,238$ 161,854,381$ Capital assets, net of accumulated depreciation 252,519,892 117,961,784 370,481,676 Right-to-use subscription IT assets,
net of accumulated amortization 3,244,799 377,082 3,621,881 Total Net Assets: 389,483,834 146,474,104 535,957,938 Less Debt Related to Assets:

Long-term debt (current portion) (6,092,330) (506,821) (6,599,151) Long-term debt (due in more than one year) (87,483,960) (6,793,400) (94,277,360) Total Debt Related to Assets: (93,576,290) (7,300,221) (100,876,511) Unspent Debt Proceeds 34,108,216 - 34,108,216 Net Investments in Capital Assets 330,015,760$ 139,173,883$ 469,189,643$

EXHIBIT A
338
City of Livermore
Notes to Financial Statements
June 30, 2023

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

These restrictions principally include developer fees received for use on capital projects and debt service requirements.

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

Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted-net position and unrestricted-net position in the government-wide and proprietary fund 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-net position to have been depleted before unrestricted-net position is applied.

Fund Balances

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 accordance 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:

Non-spendables represents balances set aside to indicate items do not represent available, spendable resources even though they are a component 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 non-spendable assets are restricted, committed or assigned, then non-spendable amounts are required 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.

Committed fund balances have constraints imposed by formal action of the City’s highest level of decision-making authority. The City Council is the highest level of decision-making authority for the City that can, by adoption of a resolution prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the resolution remains in place until a similar action is taken to remove or revise the limitation.

Assigned fund balances are amounts constrained by the City’s intent to be used for a specific purpose but are neither restricted nor committed. Intent is expressed through Council resolution and/or budget document or its designee (City Manager) and may be changed at the discretion of the City Council or its designee. This category includes Non-spendables, when it is the City’s intent to use proceeds or collections for a specific purpose, and residual fund balances, if any, of Special Revenue, Capital Projects and Debt Service Funds which have not been restricted or committed.

EXHIBIT A
339
City of Livermore
Notes to Financial Statements
June 30, 2023

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.

The City’s permanent fund reported a fund balance amount of $577,287 of which $70,763 represents the cumulative net appreciation on investments available for expenditure and a permanent amount of $506,524 reported as restricted fund balance. The investment income can only be spent on Doolan Canyon projects.

Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance.

Further, 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.

EXHIBIT A
340
City of Livermore
Notes to Financial Statements
June 30, 2023

Detailed classification of the City’s fund balances as of June 30, 2023 are below:

2022 COPS
Low Income Construction Other
General Housing-Special Capital Gover nmental
Fund Balance Classifications Fund Revenue Fund Proj ects Fund Funds Total Nonspendable:

Items not in spendable form:

Prepaids and deposits 15,938$ 12,216$ -$ 601, 048$ 629,202$ Leases 31,544 - - - 31, 544 Advances 3,938,765 - - - 3, 938,765 Land held for redevelopment 1,727,437 - - - 1, 727,437 Total Nonspendable Fund Balances 5,713,684 12,216 - 601, 048 6,326,948 Restricted for:

Alameda County Transportation programs - - - 10,379, 060 10,379,060 Gas tax program - - - 14,039, 880 14,039,880 Grant Programs - - - 7,641, 080 7,641,080 Host Community Impact program - - - 1,401, 820 1,401,820 Housing and human services programs - 44,444,935 - 9,031,524 53,476,459 Maintenance Program - - - 15,599, 361 15,599,361 Capital improvements programs - - 34,108,216 40,633,029 74,741,245 Park program - - - 4,368, 026 4,368,026 PEG program - - - 1,443, 963 1,443,963 Art programs - - - 3,961, 681 3,961,681 Solid waste and recycling program - - - 321,661 321,661 Street sweeping program - - - 68,791 68,791 Total Restricted Fund Balances - 44,444,935 34, 108,216 108,889,876 187,443,027 Committed for:

Financial stabilization arrangement 18,537,548 - - - 18, 537,548 Open space acquisition and management - - - 2,597, 943 2,597,943 Total Committed Fund Balance 18,537,548 - - 2,597, 943 21,135,491 Assigned for:

Economic Uncertainty Reserve 16,683,793 - - - 16, 683,793 Infrastructure Repair & Replacement 25,325,000 - - - 25, 325,000 CIP Reserves 17,049,363 - - - 17, 049,363 Total Assigned Fund Balances 59,058,156 - - - 59, 058,156 Unassigned:

General Fund 620,364 - - - 620, 364 Total Unassigned Fund Balances 620,364 - - - 620, 364 Total Fund Balances 83,929,752$ 44,457,151$ 34, 108,216$ 112,088,867$ 274,583,986$

EXHIBIT A
341
City of Livermore
Notes to Financial Statements
June 30, 2023

Minimum Operating Reserve Policy

On June 13, 2016 the City adopted a resolution to update the City’s Fund Balance Policy. Special Revenue, Debt Service and Capital Projects Funds have no minimum funding levels due to the nature of the funds. The minimum funding levels of the policy are highlighted below.

General Fund

The Committed General Fund Financial Stabilization Operating Reserve minimum funding level is 15% of operating expenditures plus debt service transfers to be used in a catastrophic event or in a major emergency or in periods of severe fiscal crisis. The Assigned General Fund Economic Uncertainty Reserve minimum funding level is 13.5% of operating expenditures plus debt service transfers to be used during times of severe economic distress such as protracted recessionary periods. State raids on local resources, or other impactful unforeseen events which greatly diminish the financial ability of the City to deliver core services. The Unassigned General Fund balance minimum funding level is 1.5% of operating expenditures plus outgoing debt service transfers.

Enterprise Funds

The Airport and Water Funds’ unrestricted net position minimum balance is 12.5% (or 45 days’ worth of working capital) and 33% (or 120 days’ worth of working capital) of operating expenditures plus debt service requirements respectively. The Sewer Fund is recommended to maintain an unrestricted Net Position minimum balance of 50% of their operating budget plus debt service requirements.

Internal Service Funds

Liability Insurance and Workers Compensation Funds are recommended to fully fund actuarially determined claim obligations at a minimum at the seventy percent (70%) confidence level. The City will strive to fully fund actuarially determined claim obligations at the 90% confidence level.

The Fleet Services, Information Technology and Facilities Rehabilitation Funds are recommended to keep 12.5% of operating expenses as minimum unrestricted net position balance.

EXHIBIT A
342
City of Livermore
Notes to Financial Statements
June 30, 2023

Note 11 - Pension Plans

A. Social Security/ Public Agency Retirement Systems (PARS)

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 Security or an alternative plan. The City’s part-time, seasonal, and temporary employees are not covered under Social Security.

The City has an agreement with the Public Agency Retirement System (PARS) to provide an alternative retirement system for employees not eligible for the California Public Employees’ Retirement System (CalPERS) Pension Plan and adopted the PARS 457 Trust including the PARS Section 457 FICA Alternative Retirement Plan.

B. California Public Employees’ Retirement System (CalPERS) Pension Plans

All public employees meeting CalPERS membership requirements must participate in pension plans offered by California Public Employees Retirement System (CalPERS).

For the fiscal year ended June 30, 2023, the City reported its net pension liabilities, deferred outflows of resources, deferred inflows of resources, and pension expense for each of the above plans as follows:

Net Pension Liability
Deferred Outflows
of Resources
Deferred Inflows of
Resources Pension Expense
Miscellaneous Plan (100,494,154)$ 31,475,941$ (1,772,818)$ 12,736,622$ Safety Plan (54,723,769) 26,624,789 (4,775,185) 1,754,063 Total (155,217,923)$ 58,100,730$ (6,548,003)$ 14,490,685$

EXHIBIT A
343
City of Livermore
Notes to Financial Statements
June 30, 2023

1. General Information about the Pension Plans

Plan Descriptions – All qualified permanent and probationary employees are eligible to participate in the City’s separate Safety (Police) cost-sharing and Miscellaneous (all other) agent multiple-employer defined benefit plans (Plans), administered by the CalPERS. The Miscellaneous Plans are an agent multiple employer defined benefit pension plans administered by CalPERS, which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

The City’s Safety Plans became part of a cost-sharing multiple employer defined benefit pension plan administered by CalPERS, commonly referred to as a risk pool, as of the actuarial valuation date of June 30, 2003. Risk pools exist for employers with less than 100 active plan members.

The City has three retirement benefit tiers in the Plans. Membership in the first tier of the retirement system is closed to new employees hired on or after December 31, 2012. The second tier was adopted by the City in November 2012 for all employees hired December 31, 2012. The third tier was adopted by the City effective January 1, 2013 pursuant to State Assembly Bill 340.

The net pension liabilities will be liquidated primarily from the general fund, approximately 80%, with the remaining amounts from the Airport, Water, Sewer, Stormwater, and internal service funds.

2. Benefits Provided and Actuarial Assumptions

CalPERS provides service and disability retirement benefits, cost of living adjustments, and death benefits to plan members and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total credited service are eligible to retire at age 50 with statutorily reduced benefits. Members may apply for a non-duty disability retirement benefit after 5 years of service. The death benefit is one of the following: The Basic Death Benefit, the 1959 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

EXHIBIT A
344
City of Livermore
Notes to Financial Statements
June 30, 2023
The P
lans’ provisions and benefits in effect at June 30, 2023, are summarized as follows:

Miscellaneous Safety
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Minimum retirement age 50/52 50
Employees hired prior to December 30, 2012 Tier 1 Tier 1 Monthly benefits, as a % of annual salary 2.7% at 55 3% at 50 Required member contribution rates 8% 9%
% paid by employee 8% 9%1
% paid by employer 0% 0%1
Required employer contribution rates (Normal cost) 11.350% 23.750% Employer payment of unfunded liability 8,801,893$ 4 3,816,196$ Employees hired December 31, 2012 Tier 2 Tier 2
Monthly benefits, as a % of annual salary 2% at 60 4 3% at 55 3 Required member (employee) contribution rates 6.75% 9.00% Required employer contribution rates (Normal cost) 11.350% 20.640% Employer payment of unfunded liability -$ 22,448$
Employees hired after December 31, 2012 Tier 3 Tier 3
Monthly benefits, as a % of annual salary 2% at 62 2 2.7% at 57 3 Required member (employee) contribution rates: 6.25% 12.0% Required employer contribution rates (Normal cost) 11.350% 12.780% Employer payment of unfunded liability -$ 8,341$
1 Rates presented in the table above were effective 7/1/2016. 4 Balance mentioned above is a combined amount for all Miscellaneous plans. 3 Newly hired Safety Employees will be enrolled in the 3% at 55 or 2.7% at 57 formula, dependent on the individual's eligibility, as per AB340.
2 Newly hired Misc Employees will be enrolled in the 2% at 60 or 2% at 62 formula, dependent on the individual's eligibility, as per AB340.

Empl
oyees Covered – At June 30, 2023, the following employees were covered by the benefit terms of the Miscellaneous Plans, however, information for the Safety Police Plans was not provided from CalPERS for cost-sharing multiple employer defined benefit pension plans.

Miscellaneous1
Inactive employees or beneficiaries currently receiving benefits 508 Inactive employees entitled to but not yet receiving benefits 285 Active employees 310
Total 1,103
1 All Tiers of the Miscellaneous plans were reported together in the Census data report by CalPERS.

EXHIBIT A
345
City of Livermore
Notes to Financial Statements
June 30, 2023

Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The City must contribute these amounts. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability.

The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

For the year ended June 30, 2023, the contributions recognized as part of pension expense for the Plans were as follows:

Miscellaneous1 Safety Police1 Total
Contributions - employer 12,350,716$ 6,516,715$ 18,867,431$ 1 All Tiers of the Miscellaneous and Safety Police plans were combined together on GASB 68 report by CalPERS.

Actuarial Assumptions – The total pension liabilities in the June 30, 2023 actuarial valuations were determined using the following actuarial assumptions:

All Plans (1)
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry-Age Normal Cost
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.300%
Payroll Growth 2.750%
Projected Salary Increase Varies by Entry Age and Service Investment Rate of Return 7.50% (2)
Mortality (3) Derived using CalPERS’
membership data for all funds
(1)
(2) Net of pension plan investment expenses, including inflation (3) 2021 CalPERS Experience Study for the period from 2001-2019, Recipients with attained age of 50
All of the City's plans for miscellaneous and safety police employed the same

EXHIBIT A
346
City of Livermore
Notes to Financial Statements
June 30, 2023

The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2021 valuation were based on the results of the 2019 CalPERS Experience Study for the period 2001 to 2019. Further details of the Experience Study can be found on the CalPERS website.

Discount Rate – The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS considered both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long- term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long- term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. The table below reflects long-term expected real rate of return by asset class.

Assumed
Asset
Asset Class (1) Allocation Real Return 1, 2
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 100.0%
(2) Figures are based on the 2021 Asset Liability Management study. (1) An expected inflation of 2.30% used for this period.

EXHIBIT A
347
City of Livermore
Notes to Financial Statements
June 30, 2023

3. Miscellaneous Agent Multiple-Employer Defined Benefit Pension Plan (Miscellaneous)

The changes in the Net Pension Liability for the Miscellaneous Plan during the measurement year were as follows:

Miscellaneous Plan1: Total Pension Plan Fiduciary Net Pension Liability Net Position Liability/(Asset)
Balance at June 30, 2021 2 332,484,739$ 276,907,431$ 55,577,308$ Changes in the year:

Service cost 6,196,254 - 6,196,254 Interest on the total pension liability 23,169,756 - 23,169,756 Changes of Assumptions 10,174,287 - 10,174,287 Difference between expected and actual experience (1,740,186) - (1,740,186) Net plan to plan resource movement - - - Contribution - employer - 11,735,625 (11,735,625) Contribution - employee (paid by employer) - - - Contribution - employees - 2,310,862 (2,310,862) Net investment income - (20,990,725) 20,990,725 Benefit payments, including refunds of
employee contributions (16,446,814) (16,446,814) - Administrative expenses - (172,497) 172,497 Net changes 21,353,297 (23,563,549) 44,916,846 Balance at June 30, 2022 2
353,838,036$ 253,343,882$ 100,494,154$
1 All Tiers of the Miscellaneous plan were combined together on GASB 68 report by CalPERS. 2 Represent measurement dates used in the GASB 68 valuation report.

Increase (Decrease)

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

4. Safety Police Cost-Sharing Multiple-Employer Defined Benefit Plan (Police Safety)

As of June 30, 2023, the City reported net pension liabilities for its proportionate share of the net pension liability of the Police Safety Plan as follows:

Proportionate Share of
Net Pension Liability 1
Safety Police Plan (54,723,769)$
1 All Tiers of the Safety Police plan were combined together on GASB 68 report by CalPERS.

EXHIBIT A
348
City of Livermore
Notes to Financial Statements
June 30, 2023

The City’s net pension liability for the Plans is measured as the proportionate share of the net pension liability. The net pension liability of the Plans are measured as of June 30, 2022, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined.

The City’s proportionate share of the net pension liability for the Plan as of the measurements dates of June 30, 2021 and 2022 was as follows:

Safety Police
Proportion - June 30, 2021 0.79545%
Proportion - June 30, 2022 0.79638%
Change - Increase (Decrease) 0.00093%
1 All Tiers of the Safety Police plan were combined together on GASB 68 report by CalPERS.

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

5. Sensitivity of the Net Pension Liability to Changes in the Discount Rate

The following presents the net pension liability of the City’s Miscellaneous Plan and the City’s proportionate share of the net pension liability for the Safety Police Plan, calculated using the discount rate for the 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:

1% Decrease Current 1% Increase
Net Pension Liability (5.90%) (6.90%) (7.90%)
Miscellaneous Plan1 $146,222,624 100,494,154 $62,516,096 Police Safety Plan1 82,034,817 54,723,769 32,403,157 Discount Rate
1 All Tiers of the Miscellaneous plan and Safety Police plan were combined together into

6. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions

For the fiscal year ended June 30, 2023, the City recognized pension expense of $12,736,622 for the Miscellaneous Plan and $1,754,063 for the Police Safety Plan for a total pension expense of $14,490,685.

EXHIBIT A
349
City of Livermore
Notes to Financial Statements
June 30, 2023

At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred
Outflows
Deferred
Inflows
Deferred
Outflows
Deferred
Inflows
Deferred
Outflows
Deferred
Inflows
of Resources of Resources of Resources of Res ources of Resources of Resources Differences between actual
and expected experience -$ (1,772,818)$ 2,264, 818$ (594,257)$ 2,264,818$ (2,367,075)$ Changes in assumptions 6,406,032 - 5,517,813 - 11,923,845 - Net differences between
projected and actual earnings
on plan investments
12,719,192 - - - 12, 719,192 - Change in proportion and
differences between actual
contributions and
propo
rtionate share of
contributions - - 12,325,444 (4,180,928) 12,325,444 (4,180,928) Total 19,125,224$ (1,772,818)$ 20,108,075$ (4,775,185)$ 39,233,299$ (6,548,003)$ Miscellaneous Plan Safety Police Plan Total

Pension contributions subsequent to
measurement date
Deferred Outflows
of Resources
Deferred Inflows of
Resources Total
Miscellaneous Plan1 12,350,716$ -$ 12,350,716$ Safety Police Plan1 6,516,715 - 6,516,715 Total 18,867,431$ -$ 18,867,431$ 1 All Tiers of the Miscellaneous and Police Safety plan were combined together on GASB 68 report by CalPERS.

In the table above amounts reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2024.

Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Miscellaneous Plan Safety Police Plan Total
Fiscal Year Deferred Deferred Deferred
Ended Outflows/(inflows) Outflows/(inflows) Outflows/(inflows) June 30 of Resources of Resources of Resources
2024 4,463,913$ 4,524,410$ 8,988,323$ 2025 4,000,955 3,574,397 7,575,352 2026 889,240 1,962,565 2,851,805 2027 7,998,298 5,271,518 13,269,816 17,352,406$ 15,332,890$ 32,685,296$

EXHIBIT A
350
City of Livermore
Notes to Financial Statements
June 30, 2023

Note 12 - Other Post Employment Benefits

The City has two types of retirement health benefits as determined by Council resolution and through agreements with its labor units. One plan is a Defined Benefit Plan (Other Post Employment Benefit “OPEB”) which provides health care benefits for retired employees under third party insurance plans. The second plan is a Defined Contribution Plan in which the City contributes a fixed amount to a retirement health savings account on behalf of employees who are not eligible for OPEB. The City’s Defined Benefit OPEB plan is closed to new entrants; all new employees are enrolled into the City’s Defined Contribution plan.

Executive
Management
Mid-Mgmt &
Confidential LPOA Police
Manage
ment
§ Hired Before • 8/1/2014 · 2/1/2006 · 2/ 1/2007 · 9/1/2004 § Eligibility •
•
§ Benefit •
• City will reimburse Medicare A & B if required for Medical coverage • Reimbursement percentage based on bargaining group and CalPERS service:

PERS
Service
Reimb
%
PERS
Service
Reimb
%
PERS
Service
Reimb
%
10 75% 10 70% 15 75%
15 80% 15 80% 20 85%
20 90% 20 90% 25+ 100%
25+ 100% 25+ 100%
· DOR < 10/9/01: $200 · DOR < 9/25/00: $200 · D OR < 2/1/02: $200 · DOR < 4/7/03: $200 § Cap · DOR < 10/9/01 and · DO R between 9/25/00 · DOH < 2/1/07: · Tier 1 (PL/Cpt):

DOH < 1/10/05: and 7/1/15: $2,121.241 $2,121.24 $1,866.20 2 (DOR < 9/1/04) $2,121.24 $2,121.24 1
• DOH ≥ 1/10/05: · DOR ≥ 7/1/15 and · DO R > 1/1/06: · DOH > 2/1/07: · Tier 2 (Actively With a current benefit DOH < 2/1/06: With a current benefit No benefits, City employed as of maximum of $1,866.201 With a current benefit maximum of $2,058.201 contributes 5% 8/30/04): $2,371.81 2 maximum of $1,9501 of base pay to
RHSA, EE · Tier 3 (promoted
· DOH ≥ 2/1/06: · DOR > 11/9/14: co ntributes 1% after 9/1/04): $1,866.20 2 No benefits, City No benefit, City With a c urrent benefit of base pay to contributes 4% contributes 4% of maxi mum of $2,050 RHSA · Promoted EE's stay of base pay to base pay to RHSA with R HSA if RHSA RHSA · DOR > 1/1/17: $1,950 was prior benefit
· DOH ≥ 4/1/07: · DOH ≥ 9/1/04:

No benefits, City No benefits; City
contributes 4% contributes 5%
of base pay to of base pay to

RHSA RHSA
1: Will be matched to Kaiser A two party rate for an active employee 2: Will be matched to Pre 65 Retireee Kaiser A two party rate · DOR > 10/3/03:
· DOH ≥ 8/1/14:

ALE
· 4/1/2007
Retire directly from the City with 10 years CalPERS service (15 years for Police safety) and a minimum of 5 years City service, or
Industrial disability, for police safety (except for employees enrolled in retirement health savings account) City reimburses up to a percentage subject to a cap that varies by bargaining group · DOR < 10/3/03: $200

EXHIBIT A
351
City of Livermore
Notes to Financial Statements
June 30, 2023

Funding Policy and Actuarial Assumptions

The actuarially determined contribution (ADC) to the OPEB plan was determined as part of a June 30, 2022 actuarial valuation using the entry age normal actuarial cost method. This is a projected benefit cost method, which takes into account those benefits that are expected to be earned in the future as well as those already accrued. The actuarial assumptions included (a) 6.25% investment rate of return, (b) 2.75% projected annual salary increase, and (c) 2.50% general inflation rate and (d) health inflation decreases ranging from 4.0%-7.5%. The actuarial methods and assumptions used include techniques that smooth the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets. Actuarial calculations reflect a long-term perspective and actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far into the future. Actuarially determined amounts are subject to revision at least biannually as results are compared to past expectations and new estimates are made about the future.

In accordance with the City’s budget, the actuarially determined contribution (ADC) is to be funded throughout the year as a percentage of payroll. During fiscal year ended June 30, 2010, the City joined the Public Agencies Post- Retirement Health Care Plan, a multiple employer trust administered by Public Agency Retirement Services (PARS).

During current fiscal year, the City contributed $5,163,000 to an irrevocable trust administrated by PARS, managed by an appointed board not under the control of City Council. This trust is not considered a component unit by the City and has been excluded from these financial statements. Separately issued financial statements for PARS may be obtained from PARS at 4350 Von Karman Ave., Suite 200, Newport Beach, CA 92660.

OPEB Trust Fund

Plan Administration

The City is the plan administrator. The Public Agency Retirement Services (PARS) administers the trust for the City’s retiree healthcare benefit plan – an agent multiple-employer defined benefit OPEB plan that provides healthcare benefits for eligible general and public safety employees of the City.

Fiscal Year ended
6/30/23
Plan Type Agent Multiple Employer
OPEB Trust No
Special Funding Situation No
Nonemployer Contributing Entity No

EXHIBIT A
352
City of Livermore
Notes to Financial Statements
June 30, 2023

Plan Membership

As of June 30, 2023, membership in the plan consisted of the following:

Number of
Covered Employees
Retirees and beneficiaries receivng benefits 319
Terminated plan members entitled to 19
but not yet receiving benefits
Active plan members 141
479

Benefits Provided

Post-employment healthcare and similar benefit allowances are provided to eligible employees who retire from the City or to their surviving spouses. As noted in the table above in Note 11B(ii), there were 320 participants receiving these healthcare benefits as of June 30, 2023. Refer to the table on the previous page for the contractual maximum contribution rates for the eligible employees depending upon their association with specific bargaining groups.

Contribution Information

PARS establish rates for each employer based on an actuarially determined rate for each employer. For the year ended June 30, 2023, the City’s average contribution rate was 20.5 percent of covered-employee payroll. Plan members are not required to contribute to the plan.

For the year ended June 30, 2023, the City contributed $4,720,518 in relation to the actuarially determined contribution.

Investment Policy

PARS offer different investment portfolios as part of the investment vehicle. The City invests in “Capital Appreciation” portfolio; the primary goal of the Capital Appreciation objective is growth of principal. The major portions of the assets are invested in the equity securities and market fluctuations are expected. The portfolio is constructed to control risk through four layers of diversification – asset classes (cash, fixed income, equity), investment styles (large cap, small cap, international, value, growth), managers and securities. Disciplined mutual fund selections and monitoring helps to drive return potential while reducing portfolio risk.

EXHIBIT A
353
City of Livermore
Notes to Financial Statements
June 30, 2023

The following is the City adopted asset allocation policy as of June 30, 2023.

Target Expected Real
Asset Class Component: Allocation Rate of Return
Global Equity 75.00% 4.56%
Fixed Income 20.00% 0.78%
Cash 5.00% -0.50%
Assumed Long Term Rate of Inflation 2.50%
Discount Rate 6.25%

Changes in Net OPEB Liability

The changes in the Net OPEB Liability are as follows.

Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
Balance at June 30, 2021 1 82,272,320$ 39,358,981$ 42,913,339$ Changes in the year:

Service cost 1,087,105 - 1,087,105 Interest on the total pension liability 4,886,409 - 4,886,409 Investment Experience (9,974,671) (9,974,671) Changes of assumptions 93,577 - 93,577 Contribution - employer - 4,720,518 (4,720,518) Net investment income - 4,064,254 (4,064,254) Benefit payments, including refunds of
employee contributions (3,838,518) (3,838,518) - Administrative expenses - (73,449) 73,449 Net changes (7,746,098) 4,872,805 (12,618,903) Balance at June 30, 2022 1
74,526,222$ 44,231,786$ 30,294,436$
1 Represent measurement dates used in the GASB 75 valuation report.

Increase (Decrease)

Detailed information about the OPEB plan’s fiduciary net position is available in the separately issued plan financial report that may be obtained from PARS. The liability will be paid for by the general fund.

EXHIBIT A 354
City of Livermore
Notes to Financial Statements
June 30, 2023

Actuarial Methods and Assumptions

The City’s net OPEB liability was measured as of June 30, 2023 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2020, based on the following actuarial methods and assumptions:

Measurement Date June 30, 2023
Valuation Date June 30, 2022
Funding Policy City Contributes full ADC
PARS portfolio: Capital Appreciation
Medical Trend Non-Medicare - 8.50% for 2024, decreasing to

3.45% in 2076
Medicare (Non-Kaiser) - 7.50% for 2024, decreasing to
an ultimate rate of 3.45% in 2076
Medicare (Kaiser) - 6.25% for 2024, decreasing to
an ultimate rate of 3.45% in 2076
Healthcare participation for future Retirees Not in RHSA: 90%; In RHSA: not applicable Cap Increases Kaiser plan A 2-party premium: Medical trend Active medical cap - Minimum of: Healthnet PPO
Family Premium (Increase with Medical Trend);
1% (for ALE hired between 1/1/06 and 12/31/16)
of budgeted monthly salary (increased with payroll

Actuarial Assumptions:

Discount Rate 6.25%
Salary Increase Aggregate:-2.75% annually
Merit- CalPERS 2000-2019 Experience Study
Inflation 2.50%
Investment Rate of Return 6.25%
Mortality , Retirement, Disability, Termination CalPERS 2000-2019 Experience Study Mortality Improvement Mortality projected fully generational with Scale MP-2021

Discount rate

The discount rates used to measure the total OPEB liability were 6.25% as of June 30, 2023. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.

EXHIBIT A
355
City of Livermore
Notes to Financial Statements
June 30, 2023

Sensitivity of the Net OPEB Liability to Changes in the Discount Rate

The following table presents the net OPEB liability of the City as of June 30, 2023, calculated using the discount rate of 6.25%, as well as what the Plan’s net OPEB liability would be if it were calculated using a discount rate that is 1- percentage-point lower or 1-percentage point higher than the current rate:

1% Decrease Current 1% Increase
-5.25% -6.25% -7.25%
Net OPEB Liability 39,301,774$ 30,294,436$ 22,743,273$ Discount Rate

Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates

The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates:

1% Decrease Current 1% Increase
Net OPEB Liability 26,300,853$ 30,294,436$ 33, 831,050$ Healthcare Trend Rate

OPEB Expenses and Deferred Outflows/Inflows of Resources Related to OPEB

For the year ended June 30, 2023, the City recognized OPEB credit of $1,511,541. As of fiscal year, ended June 30, 2023, the City reported deferred outflows and inflows of resources related to OPEB from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between actual and expected experience -$ (5,224,828)$ Changes in assumptions 472,714 -
Net differences between projected and actual earnings on plan investments* 815,363 -
Total 1,288,077$ (5,224,828)$
* Deferred Inflows and Outflows combined for footnote disclosure.

The difference between projected OPEB plan investment earnings and actual earnings is amortized over a five-year period. The remaining gains and losses are amortized over the expected average remaining service life.

EXHIBIT A
356
City of Livermore
Notes to Financial Statements
June 30, 2023

Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as future OPEB expense as follows:

Deferred
Year Ended Outflows/(inflows)
June 30 od Resources
2024 (4,266,696)$
2025 (692,457)
2026 1,361,693
2027 (339,291)
(3,936,751)$

Payable to OPEB Plan

The City did not report any payables for the outstanding amount of contributions to the OPEB plan required for the year ended June 30, 2023.

The net OPEB liability will be liquidated primarily from the general fund, approximately 80%, with the remaining amounts from the Airport, Water, Sewer, Stormwater, and internal service funds.

Note 13 - Deferred Compensation Plan

City employees may defer a portion of their compensation under a City sponsored Deferred Compensation Plan created in accordance with Internal Revenue Code Section 457. Under this plan, participants are not taxed on the deferred portion of their compensation until distributed to them; distributions may be made only at termination, retirement, death or in an emergency as 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. Since the assets held under these plans are not the City’s property and are not subject to City control, they have been excluded from these financial statements.

Note 14 - Joint Ventures

The City participates in the joint venture activities described below through formally organized and separate entities established under the Joint Exercise of Powers Act of the State of California. As separate legal entities, these organizations exercise full powers and authorities within the scope of the related Joint Powers Agreements including the preparation of annual budgets, accountability for all funds, the power to make and execute contracts and the right to sue and be sued. Each joint venture is governed by a board consisting of representatives from member municipalities. Each board controls the operations of the respective joint venture, including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on the Board. Assets and liabilities of the separate entities are not those of the City. The City’s sole financial responsibility is to fund annual contributions to each entity which are used along with other member contributions to finance each joint venture’s annual operations.

EXHIBIT A
357
City of Livermore
Notes to Financial Statements
June 30, 2023

Livermore-Amador Valley Water Management Agency (LAVWMA)

Livermore-Amador Valley Water Management Agency (LAVWMA) was formed in 1974. LAVWMA operates the export pipeline connecting with the East Bay Discharges Authority’s systems and discharges treated wastewater into San Francisco Bay. The current members of the Agency are Dublin San Ramon Services District, City of Livermore, and City of Pleasanton. Sewer revenue bonds issued by LAVWMA are being repaid with user charges assessed to member agencies.

The City accounts for its investment in LAVWMA by the equity method in the Sewer Enterprise Fund. The City records its share of earnings (losses) in the Proprietary Funds Statement of Revenues, Expenses and Changes in Net Position as "Change in value in investment in JPA - LAVWMA," and the carrying value of the City's investment in LAVWMA is recorded in the Proprietary Funds Statement of Net Position as "Investment in JPA - LAVWMA."

On August 1, 2011, LAVWMA issued $105,345,000 principal amount of 2011 Sewer Revenue Refunding Bonds.

Proceeds of the issuance were used to refund and retire the Series A Sewer Revenue Bonds and to pay costs of issuance. Under an Amended and Restated Sewer Service Contract dated October 1, 2011 between LAVWMA and the Members, the Members pledged and created, in favor of LAVWMA and the Trustee for the 2011 Bonds, a lien on the Net Revenues of their respective wastewater systems to pay to LAVWMA the amounts owed in order for LAVWMA to pay the debt service on the 2011 bonds. The City’s share is 27.83% of the total debt service. The City’s equity interest in LAVWMA was $20,386,487 as of June 30, 2023. Financial statements for LAVWMA may be obtained from DSRSD at 7051 Dublin Boulevard, Dublin, California 94568.

Livermore-Amador Valley Transit Authority (LAVTA)

This Authority was formed in May 1985 by a joint exercise of powers agreement between the County of Alameda and the Cities of Livermore, Pleasanton, and Dublin for the purpose of providing general public transportation under the business name "Wheels". Financial statements may be obtained from LAVTA, 1362 Rutan Court, Suite 100, Livermore, CA 94551.

Tri-Valley Transportation Council (TVTC)

The Tri-Valley Transportation Council was formed in 1991 by a joint exercise of powers agreement between the cities of Dublin, Livermore, Pleasanton, and San Ramon, the Town of Danville and the Counties of Alameda and Contra Costa for the purposes of preparing a transportation plan and providing transportation facilities within the Tri-Valley area.

Financial statements may be obtained from Franklin Management Systems, Inc., Attn: Mr. Jack Harrington, 3037 Hopyard Road, Suite M, Pleasanton, CA 94588.

EXHIBIT A
358
City of Livermore
Notes to Financial Statements
June 30, 2023

Livermore - Pleasanton Fire Department Joint Powers Agreement (LPFD)

On December 3, 1996, the cities of Livermore and Pleasanton signed a joint powers agreement to form a joint Fire Department covering both cities. The LPFD may own physical assets and can enter into contracts with the approval of the governing board, where applicable. Fire protection services are provided by the City of Pleasanton employees under the joint power agreement. The LPFD prepares its budget including contributions required from each City to fund operating and capital needs for the year. In January 2013, the City of Livermore began functioning as Treasurer for LPFD. The City of Livermore has 50% equity share (or deficit, when applicable) in LPFD and share all the costs at approximately 50%. The deficit net position of the LPFD is reported on the governmental activities statement of net position because the City has an ongoing financial responsibility. During the year ended June 30, 2023, the City contributed $22,248,639 to LPFD representing its share of costs. The City’s deficit interest in LPFD was $40,200,931 as of June 30, 2023, based on LPFD audited financial statements for the fiscal year ended June 30, 2023. Financial statements for LPFD may be obtained from the City of Livermore at 1052 South Livermore Avenue, Livermore, California 94550.

California Public Finance Authority (CalPFA)

California Public Finance Authority (CalPFA) is a political subdivision of the State of California established under the Joint Exercise of Powers Act for the purpose of issuing tax-exempt and taxable conduit bonds for public and private entities throughout California. CalPFA is empowered to promote economic, cultural, and community development opportunities that create temporary and permanent jobs, affordable housing, community infrastructure and improve the overall quality of life in local communities.

The City joined a Joint Exercise of Powers Agreement with CalPFA to issue bonds or other debt that constitute “qualified residential rental project bonds” under Section 142 (a)(7) and Section 142 (d) of the Internal Revenue Code in an amount not-to-exceed $55,000,000 for the purpose of financing or refinancing the acquisition and construction of Ageno Apartments. CalPFA is responsible for all the reporting and monitoring components and the City has no post issuance obligations. The City’s name does not appear on any legal documents. Since the JPA is a separate legal entity, the City has no liability exposure. Additionally, the City has no ongoing obligation to the JPA, unless the City wishes to issue bonds for another development project through the JPA.

Financial statements may be obtained from the California Public Finance Authority website, http://www.calpfa.org/general-information/audits-transaction-reports or from California Public Finance Authority, 2999 Oak Road Suite 710, Walnut Creek, CA 94597.

East Bay Community Energy (EBCE)

This authority formed in October 2016 by a joint exercise of power agreement between the County of Alameda and the Cities of Livermore, Pleasanton, and Dublin for the purpose of purchasing energy on a community-wide basis by pooling the buying power of the individuals within their jurisdictions. Involvement in the JPA gives opportunities to the City for gaining greater local involvement over the provision of electricity supply services, competitive electric rates, the development of local renewable energy projects, reduced greenhouse gas emissions, and the wider implementation of energy conservation and efficiency projects and programs.

EXHIBIT A
359
City of Livermore
Notes to Financial Statements
June 30, 2023

Stopwaste

This authority formed in 1976 by a joint exercise of power agreement between the County of Alameda, all fourteen cities located within the County along with two sanitary districts for the purpose of reducing waste in Alameda County.

A representative from each Member Agency serves on the Alameda County Waste Management Authority Board. The Alameda County Waste Management Authority provides solid waste planning, projects and initiatives to increase recycling and reduce waste by residents, businesses and schools. Funding is provided by waste-related fees. Some projects for reduction of waste include the Green Building in Alameda County program, curbside residential food scrap recycling and the reusable bag ordinance. These programs have reduced construction waste, increased use of recycled building materials, produced food scrap composting and reduced the number of plastic bags in the County landfills.

For more information visit www.stopwaste.org.

Note 15 - General Liability and Workers Compensation Coverage

Risk Management

The City of Livermore is self-insured for general liability claims up to a self-insured retention (SIR) of $750,000 per occurrence. It is a member of California Joint Powers Risk Management Authority (CJPRMA), an excess insurance pool that provides coverage for each occurrence that exceeds the SIR. CJPRMA provides coverage up to $40,000,000 per occurrence. The first $5,000,000 layer is retained by CJPRMA and the second and third layers totaling $35,000,000 are covered by reinsurance, purchased through their broker of record, Aon. The City of Livermore contributed $1,156,576 to CJPRMA for liability coverage for the fiscal year ending June 30, 2023. The City of Livermore purchases a variety of insurance products from Aon, both through the CJPRMA pooled programs and directly. The City paid $229,771 directly to Aon, $736,103 to Alliant through CJPRMA for property insurance, and $63,727 for auto physical damage insurance to Alliant through CJPRMA.

The Local Agency Workers Compensation Excess Joint Powers Authority (LAWCX) covers workers compensation up to statutory limits. The City has a deductible or uninsured liability of up to $500,000 per claim. During the fiscal year ended June 30, 2023, the City contributed $502,882 for program year coverage.

Each risk pool is governed by a Board consisting of representatives from member municipalities. The Board controls the operations of each risk pool, including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on the Board. The City's contribution to each risk pool equals the ratio of the City's payroll to the total payrolls of all entities participating in the same layer of each program, in each program year. Actual surpluses or losses are shared according to a formula developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating. CJPRMA’s financial statements may be obtained by contacting CJPRMA at (925) 837-0667. LAWCX’s financial statements may be obtained by contacting LAWCX at (800) 541-4591.

EXHIBIT A
360
City of Livermore
Notes to Financial Statements
June 30, 2023

Liability for Uninsured Claims

The City’s liability for the uninsured portion of claims, including a provision for claims incurred but not reported, was computed as follows based on claims experience:

Liability Insurance
Reserve
Workers’
Compensation Total
Balances of claims payable at June 30, 2022 3,736,869$ 5,118,262$ 8,855,131$ Incurred claims and change in estimated 1,237,169 1,208,426 2,445,595 Claims paid (589,510) (1,083,019) (1,672,529) Balances of claims payable at June 30, 2023 4,384,528$ 5,243,669$ 9,628,197$ Claims payable - current 1,443,000$ 1,248,000$ 2,691,000$

Note 16 - Economic Development Incentives – Tax Abatements

The City offers economic development incentive program to the entities that propose to locate or expand already established businesses within the City. This incentive program is expected to provide a stimulus to the City's economy, increase the tax base and create jobs. Each of the agreements entered into by the City, provides for a rebate of taxes paid to the City according to formulas contained in the agreements. These limited terms agreements provide for a sharing of the taxes (percentage rebates) above certain amounts with a maximum rebate not to exceed the cost of a business’ improvements and/or development impact fees. The City generally expects to receive increased revenue as a result of these agreements. These incentive agreements require approval by City Council.

For financial reporting purposes, the GASB Statement No. 77 defines a tax abatement as resulting from an agreement between a government and an individual or entity in which the government promises to forgo tax revenues and the individual or entity promises to subsequently take a specific action that contributes to economic development or otherwise benefits the government or its citizens. According to the GASB 77, the substance of these agreements meets the definition of “tax abatements” as the revenues received were not available for general municipal services purposes, but rather used to effectively reduce the net tax liability of certain taxpayers per the conditions of an agreement.

The taxes paid to the City are included in the revenue reported in these financial statements. The payments made to the businesses based upon the taxes paid are also included as expenditures in these financial statements. For the fiscal year ended June 30, 2023, under this program the City has abatements of sales tax totaling $1,441,638.

Pursuant to the Sales and Use Tax law (chapter 8 – Article 1 – section 7056), in order to protect the confidential information of sales taxes collected and abatements provided to each of the specific agencies, the City has presented the aggregate amount abated during the current fiscal year.

EXHIBIT A
361
City of Livermore
Notes to Financial Statements
June 30, 2023

Note 17 - Commitments and Contingencies

The City is subject to litigation arising in the normal course of business. In the opinion of the City Attorney there is no pending litigation which is likely to have a material adverse effect on the financial position of the City.

The City participates in several Federal and State grant programs. These programs have been audited by the City's independent accountants in accordance with the provisions of the Federal Single Audit Act amendments of 1996 and applicable State requirements. No cost disallowances were proposed as a result of these audits; however, these programs are still subject to further examination by the grantors and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time. The City expects such amounts, if any, to be immaterial.

Construction Commitments

The City has the following outstanding construction commitments at June 30, 2023:

Vendors Amount
Motorola 89,218$

There were no outstanding encumbrances related to these commitments on June 30, 2023.

EXHIBIT A
362
City of Livermore
Notes to Financial Statements
June 30, 2023

Animal Shelter

The Cities of Dublin, Pleasanton, and Livermore and the County of Alameda reached an agreement under which Alameda County constructed an animal shelter facility on County property. Under the agreement the entities share in the debt service and operating costs of the project based on their use of the animal shelter. The City of Livermore paid $301,650 for its share of debt service and operating costs. The City’s portion of the project fluctuates based on actual usage and was 17% as of June 30, 2023.

Alameda County

During fiscal year 2014-15, Alameda County made a $2.8 million contribution necessary to affect the redemption and retirement of the 2006 Bankhead Theater bond and prepayment of 2006 loan and issuance of 2014 COP Series A. The City is obliged to return $2.8 million to Alameda County in the event the Bankhead Theater is sold. At present, the City does not have any intentions of selling the Theater.

Note 18 - Successor Agency Activities

The City of Livermore opted to become the Livermore Successor Agency to the former Redevelopment Agency of Livermore as of January 9, 2012. Since February 1, 2012, the date of dissolution, the housing related assets and activities of the dissolved redevelopment agency are reported in the governmental Housing Successor Special Revenue Fund. The non-housing related assets and activities of the dissolved redevelopment agency are reported in the fiduciary Successor Agency to the Redevelopment Agency Private Purpose Trust Fund whose activities are subject to review and approval of the Oversight Board.

Long-Term Debt

The Successor Agency assumed the long-term debt of the Redevelopment Agency as of February 1, 2012. On August 1, 2001, the Redevelopment Agency issued $36,775,000 of 2001 Tax Allocation Bonds, Series A. Proceeds were used to refund the above outstanding Livermore Redevelopment Project 1986 Tax Allocation Bonds Series A, and to provide funds to finance various redevelopment activities within the Project Area.

Post Dissolution Assembly Bill 1484 permits the refunding of outstanding bonds of former redevelopment agencies if the total debt service (principal and interest) on the new refunding bonds is less than the total remaining debt service on the bonds being refunded (currently outstanding). The purpose for refunding redevelopment bonds is to reduce the interest rate, which lowers the annual tax increment required to make debt payments and increases the share of tax increment available to affected taxing entities.

EXHIBIT A
363
City of Livermore
Notes to Financial Statements
June 30, 2023

In December 2016, the Successor Agency refinanced the 2001 Tax Allocation Bonds, Series A and issued two refunding bonds, 2016 Tax Allocation Refunding Bonds, Series A (tax exempt) and Series B (taxable). The refinancing of this debt did not extend the August 1, 2032 final maturity date or provide additional proceeds for projects; however, the anticipated present value savings are more than $300,000 annually or approximately $4.9 million over the life of the refunding issue. The future annual debt savings will allow more funds to flow to the affected taxing entities, including the City. The table below presents the detail of activities during current fiscal year.

Balance at Balance at Amount due
June 30, 2022 Retirements June 30, 2023 in on e year
Fiduciary Activities
2016 Tax AllocationRefunding Bonds, 3.00%-5.00%, 2032 17,190,000$ (1,410,000)$ 15,780,000$ 1,410,000$ Unamortized Premium 840,257 (92,489) 747, 768 92,489 Total debt 18,030,257$ (1,502,489)$ 16,527,768$ 1,502,489$

Semiannual debt service payments are due August 1 and February 1, and are repayable from tax increment revenues of the Redevelopment Agency Project Area. Annual debt service requirements combined are shown below:

For the Year
Ending June 30 Principal Interest Total
2024 $1,485,000 $556,094 2,041,094$
2025 1,550,000 480,219 2,030,219 2026 1,630,000 400,719 2,030,719 2027 1,715,000 334,244 2,049,244 2028 1,765,000 282,044 2,047,044 2029-2032 7,635,000 812,066 8,447,066 Total 15,780,000 2,865,386$ 18,645,386$ Unamortized Premium 747,768
Total Debt 16,527,768$

EXHIBIT A
364
City of Livermore
Notes to Financial Statements
June 30, 2023

Commitments and Contingencies

The City and former Agency have entered into a variety of development agreements with third parties to provide needed improvements and projects. Activities under agreements for which there are continuing commitments are disclosed in the following paragraphs. Additionally, the City and Agency have other agreements that entitle them to collect certain loans or notes receivable which are disclosed in Note 5.

Last and Final Recognized Obligation Payment Schedule (LFROPs) In September 2018, the State Department of Finance (DOF) approved the Successor Agency’s Last and Final Recognized Obligation Payment Schedule (LFROP). The Successor Agency will continue to receive property tax increment revenue to pay items listed on the LFROPs, without any objections by the DOF, until all obligations are paid off.

Loans between the LSA and the City
The remaining loan left for the Successor agency is the SERAF Loan, with a current balance of $543,438. Further information on the loans is provided in Note 5.

Note 19 - Restatement due to Change in Accounting Principle and Correction of an Error

The City implemented the requirements of GASB Statement No. 96, Subscription-Based Information Technology Arrangement, effective July 1, 2022. The City discovered an error in the notes receivables reported on its financial statements and accordingly restated its beginning net position or fund balance as follows:

Low Income Water
Governmental Business-Type Housing-Special Proprietary
Activities Activities Revenue Fund Fund
Net Position/Fund Balance - Beginning 393,186,642$ 261,593,928$ 14,871,690$ 59,297,822$ Notes receivable 10,488,451 - 26,788,518 - Intangible capital assets 3,399,931 426,266 - 71,044 Subscription payable (3,394,131) (422,056) - (70,334) Net Position/Fund Balance - Beginning as Restated 403,680,893$ 261,598,138$ 41,660,208$ 59,298,532$ Housing &
Sewer Stormwater Internal Community
Proprietary Proprietary Service Assistance
Fund Fund Fund Fund*
Net Position/Fund Balance - Beginning 149,067,437$ 32,123,559$ 27,170,928$ 1,390,026$ Notes receivable - - - 665,292 Intangible capital assets 324,774 30,448 592,396 - Subscription payable (321,574) (30,148) (592,396) - Net Position/Fund Balance - Beginning as Restated 149,070,637$ 32,123,859$ 27,170,928$ 2,055,318$ Housing Other Local,
Other Special Successor State and
Revenue Agency Federal Grants
Fund* Fund* Fund*
Net Position/Fund Balance - Beginning 5,554,417$ 2,810,200$ 3,423,531$ Notes receivable 66,340 3,960,056 3,426,796 Net Position/Fund Balance - Beginning as Restated 5,620,757$ 6,770,256$ 6,850,327$ * Presented as a nonmajor fund on the financial statements

EXHIBIT A
365
Required Supplementary Information
June 30, 2023
City of Livermore
eidebailly.com

EXHIBIT A
366
T
his Page Intentionally Left Blank

EXHIBIT A
367
City of Livermore
Notes to Required Supplementary Information
Fiscal Year Ended June 30, 2023

Note 1 - Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual

The Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual presents the comparison of actual balances with the balances budgeted for revenues, expenses, and transfers. This schedule is presented for General Fund, Low Income Housing Special Revenue Fund and Housing Successor Special Revenue Fund.

The City’s funds are required to adopt an annual budget prepared on a basis generally consistent with Generally Accepted Accounting Principles (GAAP).

Note 2 - Agent Multiple-Employer Defined Benefit Pension Plan (Miscellaneous Plan):

Schedule of Changes in the Net Pension Liability and Related Ratios

This schedule reports the beginning and ending balances of the total pension liability, the plan assets available for pension benefits (called plan net position), and the net pension liability, as well as the change in those amounts during the year presented by cause (similar to the note disclosure). It also reports the total pension liability, plan net position, net pension liability, a ratio of plan net position divided by the total pension liability, the payroll amount for current employees in the plan (covered-employee payroll), and a ratio of the net pension liability divided by covered payroll.

Schedule of Contributions

This schedule reports the agent multiple-employer’s contributions to the plan which are actuarially determined, the employer’s actual contributions, the difference between the actual and actuarially determined contributions, and a ratio of the actual contributions divided by covered payroll.

Note 3 - Cost-Sharing Employer Defined Benefit Pension Plan (Safety Plan)

Schedule of Proportionate Share of the Net Pension Liability

This schedule reports the proportion (percentage) of the collective net pension liability, the proportionate share (amount) of the collective net pension liability, the employer’s covered employee payroll, the proportionate share (amount of the collective net pension liability as a percentage of the employer’s covered employee payroll and the pension plan’s fiduciary net position as a percentage of the total pension liability.

Schedule of Contributions

This schedule reports the cost sharing employer’s contributions to the plan which are actuarially determined, the employer’s actual contributions, the difference between the actual and actuarially determined contributions.

EXHIBIT A
368
City of Livermore
Notes to Required Supplementary Information
Fiscal Year Ended June 30, 2023

Note 4 - Other Post-Employment Benefits

Schedule of Changes in the City’s Net OPEB Liability and Related Ratios

This schedule presents information about the components of the net OPEB liability and related ratios, including the OPEB plan’s fiduciary net position as a percentage of the total OPEB liability, and the net OPEB liability as a percentage of covered-employee payroll.

Schedule of Contributions

This schedule reports the City’s contributions to the plan which are actuarially determined, the employer’s actual contributions, the difference between the actual and actuarially determined contributions, and a ratio of the actual contributions divided by covered-employee payroll.

EXHIBIT A
369
City of Livermore
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual – General Fund Fiscal Year Ended June 30, 2023

Variance
Budgeted Amounts Final Budget
Actual Amounts Positive
Original Final Budget ary Basis (Negative)

REVENUES
Property taxes 43,011,015$ 43,435,815$ 44,792,322$ 1,356,507$ Sales taxes 39,047,000 39,047,000 39,032,166 (14,834) Other taxes 20,573,780 21,683,780 21,390,834 (292,946) Licenses and permits 3,220,242 3,481,000 3,952,512 471,512 Intergovernmental 12,364,166 12,364,166 12,176,887 (187,279) Contributions from outside sources - 25,000 - (25,000) Fines and forfeitures 355,000 355,000 394, 263 39,263 Charges for current services 8,608,340 7,621,320 8,975,913 1,354,593 Use of money and property 3,939,280 3,896,554 3,804,535 (92,019) Miscellaneous 486,250 475,090 7, 844,147 7,369,057 Total Revenues 131,605,073 132,384,725 142,363,579 9,978,854

EXPENDITURES
Current:

General Government:

City Council 226,565 226,565 193, 146 33,419 City Manager 2,896,537 2,896,537 2,518,037 378,500 City Attorney 2,178,330 2,178,330 1,906,811 271,519 Administrative Services 8,024,136 8,024,136 7,837,745 186,391 General Services 3,596,673 3,596,673 3,374,607 222,066 Fire 25,437,560 25,437,560 24, 948,208 489,352 Police 44,455,553 44,495,553 42,400,747 2,094,806 Public Works 9,343,132 9,343,132 8,734,430 608,702 Community Development 20,524,619 20,524,619 16,275,441 4,249,178 Economic Development 2,786,434 2,786,434 2,884,414 (97,980) Library 6,870,312 6,870,312 6,301,649 568,663 Capital Outlay 1,897,000 2,503,801 1,254,016 1,249,785 Debt service:

Principal 623,911 623,911 623, 911 - Interest and fiscal charges 36,635 36,635 36, 635 - Total Expenditurs 128,897,397 129,544,198 119,289,797 10,254,401

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 2,707,676 2,840,527 23,073,782 20,233,255

OTHER FINANCING SOURCES (USES)
Transfers in 852,919 922,919 276, 201 (646,718) Transfers (out) (8,218,044) (8,218, 044) (8,203,386) 14,658 Total Other Financing Sources (Uses) (7,365,125) (7,295, 125) (7,927,185) (632,060) Net change in fund balance (4,657,449) (4,454, 598) 15,146,597 19,601,195$ Fund balance-beginning 68,783,155 68,783,155 68,783,155 Fund balance-ending 64,125,706$ 64,328,557$ 83,929,752$

GENERAL FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2023

EXHIBIT A
370
City of Livermore
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual – Low Income Housing Special Revenue Fund
Fiscal Year Ended June 30, 2023

Variance
Positive
Budget Actual (Negative)

REVENUES
Contributions from outside sources -$ 4,875$ 4,875$ Charges for services 1,300,000 1,791,936 491,936 Use of money and property 154,443 273,644 119,201 Miscellaneous 110,000 1,750,247 1,640,247 Total Revenues 1,564,443 3,820,702 2,256,259

EXPENDITURES
Current:

Community Development 4,796,197 918,751 3,877,446 Capital Outlay: 355,000 105,008 249,992 Total Expenditures 5,151,197 1,023,759 4,127,438

EXCESS (DEFICIENCY) OF REVENUE
OVER EXPENDITURES (3,586,754) 2,796,943 6,383,697

OTHER FINANCING SOURCES (USES)
Transfers (out) (252,424) - 252,424 Total Other Financing Sources (Uses) (252,424) - 252,424 Net change in fund balance (3,839,178)$ 2,796,943 6,636,121$ Fund balances - beginning, as restated 41,660,208
Fund balances - ending 44,457,151$

LOW INCOME HOUSING SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2023

EXHIBIT A
371
City of Livermore
Schedule of Changes in the Net Pension Liability and Related Ratios – Miscellaneous Plan Last Ten Fiscal Years *

2014 2015 2016 2017 2018 2019 2020 2021 2022
Total Pension Liability3
Service Cost 4,972,951$ 4,537,193$ 4,562,441$ 5,221,025$ 5,353,724$ 5,434,229$ 5,542,184$ 5,758,510$ 6,196,254$ Interest on total pension liability 16,548,323 17,148,686 18,070,523 18,672,998 19,302,859 20,616,830 21,754,166 22,490,655 23,169,756 Changes in assumptions4 - (4,175,908) - 15,364,082 (2,304,595) - - - 10,174,287 Differences between expected and actual experience - (3,477,134) 1,428,415 (1,649,050) (921,100) 6,244,408 3,404,399 (2,611,847) (1,740,186) Benefit payments, including refunds of employee contributions (9,745,631) (10,512,026) (11,641,525) (11,823,392) (12,027,431) (13,100,635) (14,104,669) (14,879,565) (16,446,814) Net change in total pension liability 11,775,643 3,520,811 12,419,854 25,785,663 9,403,457 19,194,832 16,596,080 10,757,753 21,353,297 Total pension liability - beginning 223,030,646 234,806,289 238,327,100 250,746,954 276,532,617 285,936,074 305,130,906 321,726,986 332,484,739 Total pension liability - ending (a) 234,806,289$ 238,327,100$ 250,746,954$ 276,532,617$ 285,936,074$ 305,130,906$ 321,726,986$ 332,484,739$ 353,838,036$ Plan fiduciary net position
Contributions - employer 5,315,795$ 5,509,908$ 6,359,536$ 7,245,912$ 7,671,730$ 8,682,861$ 9,778,161$ 10,678,645$ 11,735,625$ Contributions - employee 2,148,997 1,995,107 2,089,854 2,145,822 2,298,455 2,383,496 2,349,388 2,345,433 2,310,862 Net investment income 26,647,212 3,984,421 936,187 19,644,077 16,437,015 13,686,966 10,900,291 51,699,700 (20,990,725) Benefit payments (9,745,631) (10,512,026) (11,641,525) (11,823,392) (12,027,431) (13,100,635) (14,104,669) (14,879,565) (16,446,814) Net plan to plan resource movement - - - - (481) - - - - Administrative expense - (201,583) (109,139) (260,907) (301,784) (147,841) (308,279) (227,049) (172,497) Other miscellaneous income/(expense) - - - - (573,094) 481 - - - Net change in plan fiduciary net position 24,366,373 775,827 (2,365,087) 16,951,512 13,504,410 11,505,328 8,614,892 49,617,164 (23,563,549) Total fiduciary net position - beginning 153,937,012 178,303,385 179,079,212 176,714,125 193,665,637 207,170,047 218,675,375 227,290,267 276,907,431 Total fiduciary net position - ending (b) 178,303,385$ 179,079,212$ 176,714,125$ 193,665,637$ 207,170,047$ 218,675,375$ 227,290,267$ 276,907,431$ 253,343,882$ Net pension liability - ending (a) - (b) 56,502,904$ 59,247,888$ 74,032,829$ 82,866,980$ 78,766,027$ 86,455,531$ 94,436,719$ 55,577,308$ 100,494,154$ Fiscal Year Ended 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 Plan fiduciary net position as a percentage of the
total pension liability 75.94% 75.14% 70.48% 70.03% 72.45% 71.67% 70.65% 83.28% 71.60% Covered payroll 5 25,934,554$ 24,958,429$ 25,849,521$ 26,984,829$ 27,914,510$ 29,985,230$ 30,451,705$ 30,835,078$ 36,952,443$ Net pension liability as percentage of covered payroll 217.87% 237.39% 286.40% 307.09% 282.17% 288.33% 310.12% 180.24% 271.96% Notes to Schedule
1 All Tiers of the Miscellaneous plan were combined on GASB 68 report by CalPERS. 3 Benefit changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2017 valuation date.

This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes). 4 Changes in assumptions: Discount rates 7.50% 7.65% 7.65% 7.15% 7.15% 7.15% 7.15% 7.15% 6.90% 5 Includes one year’s payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-20; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17. 2 This schedule is intended to show information for 10 years. Information in this schedule is not available prior to 2014. Additional years will be added to this schedule in future fiscal years until 10 years of data is presented.

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS Miscellaneous Plan1
An Agent Multiple-Employer Defined Benefit Pension Plan Last 10 Years2
Measurement period ended June 30,

EXHIBIT A
372
City of Livermore
Schedule of the Plan’s Proportionate Share of the Net Pension Liability and Related Ratios as of the Measurement Date – Safety Police Plan Last Ten Fiscal Years

Proportionate
share of the net Plan's proportionate
penion share of the fiduciary
Liability/(assets) net position as a
Measurement Proportion Proportionate as a percentage percentage of the period ended of the net share of the net Plan's covered of its plan's total pension Fiscal Year June 30, pension liability pension liability payroll 2 covered payroll liability ended June 30, 2014 0.35300% 21,965,368$ 9,836,927$ 223. 30% 81.45% 2015 2015 0.62029% 25,558,797 9,776,879 261. 42% 79.04% 2016 2016 0.63978% 33,135,364 10,332,152 320. 70% 74.13% 2017 2017 0.64020% 38,253,169 10,874,918 351. 76% 73.15% 2018 2018 0.66102% 38,785,811 11,599,156 334. 38% 74.09% 2019 2019 0.67581% 42,187,668 12,310,910 342. 69% 74.04% 2020 2020 0.69837% 46,528,122 13,023,674 357. 26% 72.96% 2021 2021 0.79545% 27,916,195 12,779,176 218. 45% 86.61% 2022 2022 0.79683% 54,723,769 12,987,878 421. 34% 75.52% 2023 1 This schedule is intended to show information for 10 years. Information in this schedule is not available prior to 2014.

Additional years will be added to this schedule in future fiscal years until 10 years of data is presented. 2 With the implementation of GASB 82, Covered Payroll is defined as the actual payroll on which contributions to a pension plan are based.

SCHEDULE OF THE PLAN'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AND RELATED RATIOS AS OF THE MEASUREMENT DATE Safety Police Plan
A Cost Sharing Defined Benefit Pension Plan
Last 10 Years1

EXHIBIT A
373
City of Livermore
Schedule of Contributions – Miscellaneous Plan
Last Ten Fiscal Years*

Contributions in
relation to the
Fiscal year Actuarially actua rially Contributions Contributions as a ended determined determ ined deficiency Covered percentage of June 30, contributions contr ibutions (excess) payroll covered payroll 2014 3 5,315,795$ (5,315,795)$ -$ 25,934,554$ 20.50% 2015 3 5,509,908 (5,509,908) - 24,958,429 22.08% 2016 3 6,359,536 (6,359,536) - 25,849,521 24.60% 2017 3 7,245,912 (7,245,912) - 26,984,829 26.85% 2018 3 7,671,730 (7,671,730) - 27,914,510 27.48% 2019 3 8,878,238 (8,878,238) - 29,985,230 29.61% 2020 4 10,004,357 (10,004,357) - 30,451,705 32.85% 2021 4 10,927,202 (10,927,202) - 30,835,078 35.44% 2022 4 11,735,625 (11,735,625) - 36,952,443 31.76% 2023 4 12,350,716 (12,350,716) - 31,421,164 39.31% Entry age normal
Level percentage of payroll
Market value of assets

2.500%
Varies by Entry Age and Service

2.750%

6.90%, net of pension plan investment expense, including inflation. 50 years
Benefit changes: None
Changes in assumptions: The investment rate of return was changed from 7.00% to 6.90% in 2023. 1 All Tiers of the Miscellaneous plan were combined on GASB 68 report by CalPERS. 2 This schedule is intended to show information for 10 years. Information in this schedule is not available prior to 2014.

Additional years will be added to this schedule in future fiscal years until 10 years of data is presented. 3 Fiscal years noted in this table match with the fiscal years presented in the GASB 68 actuarial valuation report Retirement age
Mortality The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period Salary increases
Payroll growth
Investment rate of return
Inflation
Methods and assumptions used to determine
Actuarial cost method
Amortization method
Amortization period

SCHEDULE OF CONTRIBUTIONS
Miscellaneous Plan1
An Agent Multiple-Employer Defined Benefit Pension Plan A fixed 30-year period with the increases or decreases in the rate spread directly over a 5- Asset valuation method
Last 10 Years2
Notes to Schedule

EXHIBIT A
374
City of Livermore
Schedule of Contributions – Safety Police Plan
Last Ten Fiscal Years*

Contributions in
Fiscal year Actuarially relation to the Contributions Contributions as a ended determined actuarially determined deficiency Covered perce ntage of June 30, contributions contributions (excess) payroll 4 covered payroll 2014 2 2,334,711$ (2,334,711)$ -$ 9,487,559$ 24.61% 2015 2 2,620,741 (2,620,741) - 9,776,879 26.81% 2016 2 2,894,745 (2,894,745) - 10,332,152 28.02% 2017 2 3,301,561 (3,301,561) - 10,874,918 30.36% 2018 2 3,759,899 (3,759,899) - 11,599,156 32.42% 2019 2 4,387,258 (4,387,258) - 12,310,910 35.64% 2020 3 5,095,707 (5,095,707) - 13,023,674 39.13% 2021 3 5,548,843 (5,548,843) - 12,779,176 43.42% 2022 3 5,916,978 (5,916,978) - 12,987,878 45.56% 2023 3 6,516,715 (6,516,715) - 13,844,914 47.07% Changes in assumptions: None
1 This schedule is intended to show information for 10 years. Information in this schedule is not available prior to 2014.

Additional years will be added to this schedule in future fiscal years until 10 years of data is presented. 2 Fiscal years noted in this table match with the fiscal years presented in the GASB 68 actuarial valuation report 3 As prescribed in GASB 68, paragraph 46, the information presented is from the most recent year 4 Covered Payroll is defined as the actual payroll on which contributions to a pension plan are based.

Benefit changes: None
Notes to Schedule

SCHEDULE OF CONTRIBUTIONS
Safety Police Plan
A Cost Sharing Defined Benefit Pension Plan
Last 10 Years1

EXHIBIT A
375
City of Livermore
Schedule of Changes in the City’s Net OPEB Liability and Related Ratios Last Ten Fiscal Years*

2017 2018 2019 2020 2021 2022 2023
Service Cost 1,324,000$ 1,364,072$ 1,404,890$ 1,188,021$ 1,223,662$ 1,032,271$ 1,087,105$ Interest 4,461,000 4,645,578 4,827,840 4,936,407 5,115,274 4,869,477 4,886,409 Changes of benefit terms - - - - - - - Changes in assumptions - - 4,311, 034 - (1,463,176) 1,365,243 93,577 Differences between expected and actual experience - - (5, 282,915) - (1,868,874) - (9,974,671) Benefit payments, including refunds (2,839,793) (3,109, 307) (3,383,525) (3,363,911) (3,452,661) (3,748,080) (3,838,518) Net change in total OPEB liability 2,945,207 2,900,343 1,877,324 2,760,517 (445,775) 3,518,911 (7,746,098) Total OPEB liability - beginning 68,715,793 71,661,000 74,561,343 76,438,667 79,199,184 78,753,409 82,272,320 Total OPEB liability - ending (a) 71,661,000$ 74,561,343$ 76,438,667$ 79,199,184$ 78,753,409$ 82,272,320$ 74,526,222$ Plan fiduciary net position
Contributions - employer 5,747,533$ 5,324,000$ 5,380,000$ 4,900,000$ 5,163,000$ 5,035,080$ 4,720,518$ Net investment income 2,128,521 2,012,498 1,855,034 805,844 10,050,944 (5,719,634) 4,064,254 Benefit payments, including refunds (2,839,793) (3,109, 307) (3,383,525) (3,363,911) (3,452,661) (3,748,080) (3,838,518) Administrative expense (86,886) (102,288) (111,259) (121,024) (141,453) (78,844) (73,449) Net change in plan fiduciary net position 4,949,375 4,124,903 3,740,250 2,220,909 11,619,830 (4,511,478) 4,872,805 Plan fiduciary net position - beginning 17,215,192 22,164,567 26,289,470 30,029,720 32,250,629 43,870,459 39,358,981 Plan fiduciary net position - ending (b) 22,164,567$ 26,289,470$ 30,029,720$ 32,250,629$ 43,870,459$ 39,358,981$ 44,231,786$ City's net OPEB liability - ending (a) - (b) 49,496,433$ 48,271,873$ 46,408,947$ 46,948,555$ 34,882,950$ 42,913,339$ 30,294,436$ Plan fiduciary net position as a percentage of the
total pension liability 30.9% 35.3% 39.3% 40.7% 55. 7% 47.8% 59.4% Covered payroll 2 29,345,533$ 47,169,986$ 28,506,581$ 26,656,102$ 26,508,421$ 23,571,067$ 23,052,445$ City's net OPEB liability as a percentage of covered payroll 168.7% 102.3% 162.8% 176.1% 131.6% 182.1% 131.4% 1 This schedule is intended to show information for 10 years. Additional years will be added to this schedule in future fiscal years until 10 years of data is presented. 2 With the implementation of GASB 82, Covered Payroll is defined as the actual payroll on which contributions to a pension plan are based.

Notes to Schedule
Benefit changes: None
Changes in assumptions:
- Discount Rate was updated from 6.00% to 6.25% for anticipated lower capital market assumptions in fiscal year 2023 - Decreased medical trend rate for Kaiser Senior Advantage plans - Medical Plan Election updated based on current experience - Mortalility improvement scale was updated to Scale MP-2020

SCHEDULE OF CHANGES IN THE CITY'S NET OPEB LIABILITY AND RELATED RATIOS Last 10 Fiscal Years 1
Measurement Date / Fiscal Year Ended June 30,

EXHIBIT A
376
City of Livermore
Other Post-Employment Benefits
Last Ten Fiscal Years*

Contributions in
relation to the
Fiscal year Actuarially actuarially Contributions Contributions as a ended determined determined deficiency Covered percentage of June 30, contributions contributions (excess) payroll 2 covered payroll 2017 5,426,000$ (5,747,533)$ (321,533)$ 29,345,533$ 19.59% 2018 5,060,000 (5,324,000) (264,000) 47,169,986 11.29% 2019 5,082,000 (5,380,000) (298,000) 28,506,581 18.87% 2020 4,900,000 (4,900,000) - 26,656,102 18.38% 2021 4,963,000 (5,163,000) (200,000) 26,508,421 19.48% 2022 5,035,080 (5,035,080) - 23,571,067 21.36% 2023 4,718,000 (4,720,518) (2,518) 23,052,445 20.48% June 30, 2020
Entry age, level percentage of payroll
Level percentage of payroll
15-year fixed period for 2022-23
Investment gains and losses spread over 5-year rolling period

2.75%
Healthcare cost trend rates Non-medicare - 6.75% for 2023, scaling down to 4.0% in 2076 Medicare - 5.90% for 2023 scaling down to 4.0% in 2076

2.75%

6.25%
Benefit changes: None
Changes in assumptions: None
1 This schedule is intended to show information for 10 years. Additional years will be added to this schedule in future fiscal years until 10 years of data is presented. 2 With the implementation of GASB 82, Covered Payroll is defined as the actual payroll on which contributions to

Discount Rate
Mortality The probabilities of mortality are derived from CalPERS' Membership Data for all Funds based on CalPERS' specific data from a 2015 CalPERS Experience Study report, derived from data collected during fiscal years 1997 to 2015. The table includes Mortality improvement projection Scale MP-2018 with 15-year convergence.

Salary increases

SCHEDULE OF CONTRIBUTIONS

OTHER POST EMPLOYEMENT BENEFITS
Last 10 Fiscal Years 1
Notes to Schedule
Valuation date:

Methods and assumptions used to determine
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Inflation

EXHIBIT A
377
Supplementary Information
June 30, 2023
City of Livermore
eidebailly.com

EXHIBIT A
378
T
his Page Intentionally Left Blank

EXHIBIT A
379
City of Livermore
Non-Major Governmental Funds
June 30, 2023

Special Revenue Funds are used to account for City revenues from sources that, by law or administrative action, are designated to finance particular functions or activities of government. The individual special revenue funds are as follows:

Housing Successor Agency
Established to account for assets and liabilities assumed by the City from the former Redevelopment Agency’s Low and Moderate Income Housing Fund.

Housing and Community Assistance
Established to account for outside resources used for Housing and Human Service programs that can be used to create and expand affordable housing opportunities.

Horizons
Established to account for the receipt of grant funds from the Federal Department of Health and Human Services (passed through the Alameda County Probation Department and the Alameda County Health Care Services Agency) for the youth diversion program.

Solid Waste Management
Established to account for funds received from waste hauler franchise fees and Alameda County Waste Management Authority used to administer and participate in City/County planning programs to ensure compliance with the California Integrated Solid Waste Management Act, AB 939.

Maintenance District
Established to account for the receipt and disbursement of Landscape and Maintenance District fees collected from developers and homeowners.

City
Street Sweeping
Established to administer funds received through solid waste collection fees.

Park Fee
Established to administer the AB1600 funds received from developers to construct new parks in the City.

Other Special Revenue Funds
Established to account for City programs including the Public Art In-Lieu Fee Program, Altamont Open Space Program, and Brownfield Program.

P EG
Established to account for Public, Educational, and Government (PEG) Access funds received from local cable TV franchises used for capital related items for community cable programming.

Alameda County Transportation Funds
Established to account for funds received from the Alameda County Transportation Commission including Measure B funds, Measure F funds (Vehicle Registration Fees), and project-specific grant funds which provide funding for street maintenance and improvement programs, pedestrian programs, and transportation-related capital projects.

EXHIBIT A
380
City of Livermore
Non-Major Governmental Funds
June 30, 2023

Gas Tax
Established to account for revenue apportioned to the City from State Street & Highways Codes 2103, 2105, 2106, and 2107, and State Department of Transportation Proposition 1B funds which are expended for construction and maintenance of City streets.

Host Community Impact Fee
Established to account for the collection of Host Community Impact Fees from the Altamont and Vasco Road Landfills which are restricted for the use of promoting the arts in Livermore.

Other Impact Fee Special Revenue Fund
Established to account for other City impact fees including the Downtown Revitalization Impact Fee, Human Services Facilities Impact Fees, Parking Space Impact Fees, Storm Drain Impact Fees, and Solid Waste and Recycling Impact Fees to be expended according to their respective City ordinances.

Tri-Valley Transportation Council (TVTC) 20% Fee
Established to account for receipts of Tri-Valley Transportation Council fees for specific capital improvement projects.

Other Local, State, and Federal Grants Special Revenue Fund Established to account for various grants from local agencies, the State of California, and the Federal Government to be expended for a specific program, activity or facility.

Debt Service Funds are used to account for the payment of principal and interest on city-wide governmental debt.

2020 COP
Series A were issued to defease 2014 COP Series A. Series B were i ssued to defease LCPFA 2011 COP and
the 2014 COP Series B.

2022 COP
S
2022 COPS were issued to provide financing for the design and construction of a parking garage to provide adequate parking for all existing and new development and other improvements of the City.

Capital Projects Funds are used to account for and report financial resources that are restricted, committed or assigned to expenditures for capital outlays, including the acquisition or construction of capital facilities and other capital assets.

Traffic Impact Fee
Established to account for traffic impact fees collected from developers for the purpose of constructing or providing circulation system improvements.

Isabel Avenue
Established to account for the construction of new interchange on I-580 at Isabel Avenue/ Route 84 Extension. Financing is provided by Other Local, State and Federal Grant Funds, Alameda County Transportation Fund, and developer impact fees.

EXHIBIT A
381
City of Livermore
Non-Major Governmental Funds
June 30, 2023

El Charro Specific Plan
Established to account for the design and construction of the public infrastructure to serve the El Charro Specific Plan Area. Financing is provided by the Water Enterprise Fund, Storm Drain Fund, Traffic Impact Fee Fund, LCPFA COP 2008 and 2011 COP Construction Funds, Alameda County Zone 7 Water Agency, Alameda County Transportation Commission Grant Funds, State grants, City of Pleasanton, and development impact fees collected.

Developer Deposits
Established to account for developer fees received pursuant to development agreements, performance deposits, public park improvement fees and transportation development fees collected.

Other Capital Projects
Established to account for various quality community improvements including Transferable Development Credits from developers, fire station, Livermore park, and to account for construction of public improvements on College Avenue Assessment District 87-2A and Shea Community Facilities District.

Street Fund
Established to account for the construction and improvements of city streets including Vasco Road, Civic Center Bus Stop, and Route 84. Financing includes multiple sources including City funds (Tri-Valley Transportation Council Funds, Traffic Impact Fees) and third parties (California Department of Transportation, LAVTA and Agency Trust).

Permanent Funds are used to report resources that are legally restricted to the extent that only earnings, not principal, may be used for purposes that support the government’s programs.

Doolan Canyon Endowment Fund
Established to account for an endowment restricted for items related to mitigation of the burrowing owl habitat.

EXHIBIT A
382
City of Livermore
Non-Major Governmental Funds – Combining Balance Sheet
June 30, 2023

Housing Housing & Solid
Successor Community Waste Maintenance City Street
Agency Assistance Horiz ons Management District Sweeping ASSETS
Cash and investments in City Treasury 715,543$ 1,391,230$ 440,180$ 286,598$ 14,826,112$ 111,807$ Cash and investments with Trustees - - - - - - Accounts receivables, net - 2,733 103, 260 65,247 25,637 395 Prepaids and supplies - - - - - - Interest receivable 1,736,880 38,086 - - - - Notes receivable 6,256,728 665,292 - - - - Land held for redevelopment - - - - - - Due from other funds - - - - - - Total Assets 8,709,151$ 2,097,341$ 543,440$ 351,845$ 14,851,749$ 112,202$

LIABILITIES
Accounts payable and other accruals 3$ -$ 806$ 21, 994$ 249,295$ 37,502$ Accrued payroll - - 24,921 8,190 36,787 5,909 Interest payable - - - - - - Deposits payable - - - - - - Due to other funds - - - - - - Advances from other funds - - - - - - Unearned rents and revenue - - - - - - Total Liabilities 3 - 25,727 30,184 286,082 43,411

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue- special assessments - - - - - - Unavailable revenue 1,736,879 38,086 - - - - Total deferred inflows of resources 1,736,879 38,086 - - - -

FUND BALANCE
Nonspendable - - - - - - Restricted 6,972,269 2,059,255 517,713 321,661 14,565,667 68,791 Committed - - - - - - Total Fund Balances (Deficits) 6,972,269 2,059,255 517,713 321,661 14,565,667 68,791 Total Liabilities, deferred inflows of resources,
and fund balances (deficits) 8,709,151$ 2,097,341$ 543,440$ 351,845$ 14,851,749$ 112,202$ JUNE 30, 2023

SPECIAL REVENUE FUNDS

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET

EXHIBIT A
383
City of Livermore
Non-Major Governmental Funds – Combining Balance Sheet
June 30, 2023

Alameda
Other County Host Other
Park Special Revenue Transportation Community Impact TVTC 20% Fee Funds PEG Funds Gas Tax Impact Fee Fee Fee
4,472,003$ 5,259,043$ 1,384,103$ 10,272,046$ 14,187,703$ 1,138,549$ 5,401,233$ 2,925,081$ - - - - - - - - - 1,048 59,860 618,822 367,234 280,408 - - - - - - - - - - - - - - - - - - - 66,340 - - - - 1,620,135 - - - - - - - - - - - - - - - - - 4,472,003$ 5,326,431$ 1,443,963$ 10,890,868$ 14,554,937$ 1,418,957$ 7,021,368$ 2,925,081$ 37,212$ 51,105$ -$ 509,308$ 515,057$ 17,137$ 345,311$ 10,384$ - - - - - - - - - - - - - - - - - - - 2,500 - - - - - - - - - - - - - - - - - - 3,874,396 - 66,765 471,850 - - - - - - 103,977 522,955 - 511,808 515,057 17,137 4,219,707 10,384 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 4,368,026 2,205,533 1,443,963 10,379,060 14,039,880 1,401,820 2,801,661 2,914,697 - 2,597,943 - - - - - - 4,368,026 4,803,476 1,443,963 10,379,060 14,039,880 1,401,820 2,801,661 2,914,697 4,472,003$ 5,326,431$ 1,443,963$ 10,890,868$ 14,554,937$ 1,418,957$ 7,021,368$ 2,925,081$ (Continued)

SPECIAL REVENUE FUNDS

NON-MAJOR GOVERNMENTAL FUNDS

EXHIBIT A
384
City of Livermore
Non-Major Governmental Funds – Combining Balance Sheet
June 30, 2023

SPECIAL REVENUE
FUND
Other
Local, State Traffic
and Federal Impact El Charro
. Grants 2020 COPS 2022 COPS Fee Specific Plan
Cash and investments in City Treasury 4,400,040$ -$ -$ 23,183,536$ -$ Cash and investments with Trustees - - 582 - - Accounts receivables, net 502,697 - - - - Prepaids and supplies - - - - - Interest receivable 663,979 - - - - Notes receivable 3,456,286 - - - - Land held for redevelopment - - - - - Due from other funds - - - - - Total Assets 9,023,002$ -$ 582$ 23,183,536$ -$ Accounts payable and other accruals 382,860$ -$ -$ 30,564$ -$ Accrued payroll 5,966 - - - - Interest payable - - - - - Deposits payable 728,504 - - - - Due to other funds - - - - - Advances from other funds - - - - - Unearned rents and revenue 118,326 - - - - Total Liabilities 1,235,656 - - 30,564 -

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue- special assessments - - - - - Unavailable revenue 663,979 - - - - Total deferred inflows of resources 663,979 - - - -

FUND BALANCE
Nonspendable - - - - - Restricted 7,123,367 - 582 23,152,972 - Committed - - - - - 7,123,367 - 582 23,152,972 - Total Liabilities, deferred inflows of resources,
and fund balances (deficits) 9,023,002$ -$ 582$ 23,183,536$ -$ JUNE 30, 2023

CAPITAL PROJECTS FUNDSDEBT SERVICE FUND

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET
ASSETS

LIABILITIES

EXHIBIT A
385
City of Livermore
Non-Major Governmental Funds – Combining Balance Sheet
June 30, 2023

PERMANENT
FUND
Total
Other Nonmajor
Developer Capital Street D oolan Canyon Governmental
Deposits Projects Fund Endow ment Fund Funds
3,567,854$ 14,558,861$ -$ (2,828)$ 108,518,694$ - - - 606,302 606,884 - - - - 2, 027,341 - - - - - - - - - 2, 438,945 - - - - 12, 064,781 - - - - - - - - - - 3,567,854$ 14,558,861$ -$ 603,474$ 125,656,645$ 20,996$ -$ -$ 2,426$ 2,231,960$ - - - - 81, 773 - - - - - 1,496,777 - - - 2, 227,781 - - - - - - - - - 3, 874,396 2,055,983 - - - 2, 712,924 3,573,756 - - 2,426 11,128,834 - - - - - - - - - 2, 438,944 - - - - 2, 438,944 - - - 601,048 601,048 (5,902) 14,558,861 - - 108,889,876 - - - - 2, 597,943 (5,902) 14,558,861 - 601,048 112,088,867 3,567,854$ 14,558,861$ -$ 603,474$ 125,656,645$

CAPITAL PROJECTS FUNDS

COMBINING BALANCE SHEET

NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2023

EXHIBIT A
386
City of Livermore
Combining Statements of Revenues, Expenditures and Changes in Fund Balances – Non-Major Governmental Funds Year Ended June 30, 2023

Housing Housing & Solid
Successor Community Waste Maintenance City Street
Agency Assistance Horizons Management District Sweeping

REVENUES
Taxes and special assessments -$ -$ -$ -$ 4,462,006$ -$ Intergovernmental - - - 259,349 - - Contributions from outside sources - - 20,589 - - - Charges for services - - 581,809 249,109 - 696,803 Use of money and property 87,275 6,720 - 2,974 - - Miscellaneous 114,781 40,348 677 - - - Total Revenues 202,056 47,068 603,075 511,432 4,462,006 696,803

EXPENDITURES
Current:

General Government
City Manager - - - - - - Fire - - - - - - Police - - 872,774 - - - Public Works - - - 531,123 1,986,282 676,561 Community Development 43 2,192 - - - - Economic Development - - - - - - Library - - - - - - Capital Outlay: -
Capital projects - 40,939 - - 1,279,372 - Debt service:

Principal retirement - - - - - - Interest and fiscal charges - - - - - - Total Expenditures 43 43,131 872,774 531,123 3,265,654 676,561

EXCESS (DEFICIENCW) OF REVENUES
OVER EXPENDITURES 202,013 3,937 (269,699) (19,691) 1,196,352 20,242

OTHER FINANCING SOURCES (USES)
Certificates of Participation issued - - - - - - Transfers in - - 509,258 - 32,306 - Transfers (out) - - - - - - Total Other Financing Sources (Uses) - - 509,258 - 32,306 - Net change in fund balances 202,013 3,937 239,559 (19,691) 1,228,658 20,242 Fund balances (deficits)- beginning, as restated 6,770,256 2,055,318 278,154 341,352 13,337,009 48,549 Fund balances (deficits)- ending 6,972,269$ 2,059,255$ 517,713$ 321,661$ 14,565,667$ 68,791$

SPECIAL REVENUE FUNDS

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2023

EXHIBIT A
387
City of Livermore
Combining Statements of Revenues, Expenditures and Changes in Fund Balances – Non-Major Governmental Funds Year Ended June 30, 2023

Other Alameda County Host Ot her
Park Special Revenue Trans portation Community Impact TVTC Fee Funds PEG Funds G as Tax Impact Fee Fee 20% Fee
-$ -$ -$ -$ -$ -$ -$ -$ - - - 3,475, 355 4,121,210 - - - - 9,044 - - - 546,530 - - 851,029 366,811 - - - - 1,414,237 112,234 93,552 15,821 - ( 63,520) (30,951) 34,359 - 34,394 - - 240,546 - 298 - - - 944,581 391,676 240,546 3,411,835 4,090,557 580,889 1,414,237 146,628 - - 68,261 - - - - - - - - - - - - - - - - - - - - - - - - 111,840 - 42,553 - - 156,831 17,165 - 147, 396 864,071 - 1,242,549 - - 95,750 - - - - - - - - - - - - - - 175,251 1,078,473 - 1,045,142 636,471 - 40,691 444,977 - - - - - - - - - - - - - - - - 332,082 1,191,388 68, 261 1,304,378 1,500,542 42,553 1,283,240 444,977 612,499 (799,712) 172, 285 2,107,457 2,590,015 538,336 130,997 (298,349) - - - - - - - - - - - - - - - - - (17,569) - - (113,877) (493,000) - - - (17,569) - - (113,877) (493,000) - - 612,499 (817,281) 172, 285 2,107,457 2,476,138 45,336 130,997 (298,349) 3,755,527 5,620,757 1, 271,678 8,271,603 11,563,742 1,356,484 2,670,664 3,213,046 4,368,026$ 4,803,476$ 1, 443,963$ 10,379,060$ 14,039,880$ 1,401,820$ 2,801,661$ 2,914,697$ (Continued)

SPECIAL REVENUE FUNDS

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2023

EXHIBIT A
388
City of Livermore
Combining Statements of Revenues, Expenditures and Changes in Fund Balances – Non-Major Governmental Funds Year Ended June 30, 2023

SPECIAL REVENUE FUND

Other
Local, State Traffic
and Federal Impact El Charro
Grants 2020 COPS 2022 COPS Fee Specific Plan

REVENUES
Taxes and special assessments -$ -$ -$ -$ -$ Intergovernmental 1,996,571 - - - - Contributions from outside sources 24,946 - - - - Charges for services 30,175 - - 1,294,836 - Use of money and property 40,295 - 757 119,159 - Miscellaneous 165,236 - - - - Total Revenues 2,257,223 - 757 1,413,995 -

EXPENDITURES
Current:

General Government:

City Manager - - - - - Fire 5,650 - - - - Police 241,043 - - - - Public works - - - - - Community Development 1,073,207 - - - - Economic Development - - - - - Library 171,001 - - - - Capital Outlay:

Capital projects 360,869 - - 844,132 887 Debt service:

Principal retirement 90,758 2,816,198 845,000 - - Interest and fiscal charges 29,103 1,554,874 1,267,862 - - Total Expenditures 1,971,631 4,371,072 2,112,862 844,132 887

EXCESS (DEFICIENCW) OF REVENUES
OVER EXPENDITURES 285,592 (4,371,072) (2,112,105) 569,863 (887)

OTHER FINANCING SOURCES (USES)
Certificates of Participation issued - - 628,828 - - Transfers in - 4,371,072 1,483,859 - - Transfers (out) (12,552) - - (62,794) - Total Other Financing Sources (Uses) (12,552) 4,371,072 2,112,687 (62,794) - Net change in fund balances 273,040 - 582 507,069 (887) Fund balances (deficits)- beginning, as restated 6,850,327 - - 22,645,903 887 Fund balances (deficits)- ending 7,123,367$ -$ 582$ 23,152,972$ -$

DEBT SERVICE FUNDS CAPITAL PROJECTS FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2023

EXHIBIT A
389
City of Livermore
Combining Statements of Revenues, Expenditures and Changes in Fund Balances – Non-Major Governmental Funds Year Ended June 30, 2023

PERMANENT FUND
Total
Other Nonmajor
Developer Capital Street D oolan Canyon Governmental
Deposits Projects Fund Endow ment Funds
-$ -$ -$ -$ 4, 462,006$ - - - - 9, 852,485 - - - - 601, 109 - - - - 5, 597,043 - - 177 54,797 395,809 - 1,109 - - 562,995 - 1,109 177 54, 797 21,471,447 - - - - 68, 261 - - - - 5, 650 - - - - 1, 113,817 - - - - 3, 348,359 - - - 31,036 3,534,490 - - - - 95, 750 - - - - 171, 001 - - - - 5, 947,204 - - - - 3, 751,956 - - - - 2, 851,839 - - - 31,036 20,888,327 - 1,109 177 23, 761 583,120 - - - - 628, 828 - - - - 6, 396,495 - - (69,409) - (769,201) - - (69,409) - 6,256,122 - 1,109 (69, 232) 23,761 6,839,242 (5,902) 14,557,752 69, 232 577,287 105,249,625 (5,902)$ 14,558,861$ -$ 601,048$ 112,088,867$

CAPITAL PROJECTS FUNDS

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2023

EXHIBIT A
390
City of Livermore
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual – Budgeted Non-Major Funds Year Ended June 30, 2023

HOUSING SUCCESSOR HOUSING & COMMUNITY ASSISTANCE
Variance Variance
Positive Positive
Budget Actual (Negat ive) Budget Actual (Negative)

REVENUES
Taxes and special assessments -$ -$ -$ -$ -$ -$ Intergovernmental - - - 120, 000 - (120,000) Contributions from outside sources - - - - - - Charges for services - - - - - - Use of money and property 44,629 87,275 42, 646 5,100 6,720 1,620 Miscellaneous 105,000 114,781 9, 781 41,000 40,348 (652) Total Revenues 149,629 202,056 52, 427 166,100 47,068 (119,032)

EXPENDITURES
Current:

General Government:

City Manager - - - - - - Fire - - - - - - Police - - - - - - Public works - - - - - - Community Development 1,853,278 43 1,853, 235 65,923 2,192 63,731 Economic Development - - - - - - Library - - - - - - Capital Outlay:

Capital projects - - - 223, 500 40,939 182,561 Debt service:

Principal - - - - - - Interest and fiscal charges - - - - - - Total Expenditures 1,853,278 43 1,853, 235 289,423 43,131 246,292

EXCESS (DEFICIENCY) OF REVENUE
OVER EXPENDITURES (1,703,649) 202,013 1, 905,662 (123,323) 3,937 127,260

OTHER FINANCING SOURCES (USES)
Certificates of Participation issued - - - - - - Transfers in - - - - - - Transfers out - - - - - - Total Other Financing Sources (Uses) - - - - - - Net change in fund balance (1,703,649)$ 202,013 1, 905,662$ (123,323)$ 3,937 127,260$ Fund balances (deficits)- beginning, as restated 6,770,256 2,055,318 Fund balances (deficits)- ending 6,972,269$ 2,059,255$

BUDGETED NON-MAJOR FUNDS

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2023

EXHIBIT A
391
City of Livermore
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual – Budgeted Non-Major Funds Year Ended June 30, 2023

HORIZONS SOLID WASTE MANAGEMENT MAINTENANCE DISTRICT
Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) -$ -$ -$ -$ -$ -$ 4,570,034$ 4,462,006$ (108,028)$ - - - 570,000 259,349 (310,651) - - - 18,000 20,589 2,589 - - - - - - 555,000 581,809 26,809 498,218 249,109 (249,109) - - - - - - 999 2,974 1,975 33,299 - (33,299) 3,000 677 (2,323) - - - - - - 576,000 603,075 27,075 1,069,217 511,432 (557,785) 4,603,333 4,462,006 (141,327) - - - - - - - - - - - - - - - - - - 1,183,521 872,774 310,747 - - - - - - - - - 730,410 531,123 199,287 2,569,051 1,986,282 582,769 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,279,372 1,279,372 - - - - - - - - - - - - - - - - - - - 1,183,521 872,774 310,747 730,410 531,123 199,287 3,848,423 3,265,654 582,769 (607,521) (269,699) 337,822 338,807 (19,691) (358,498) 754,910 1,196,352 441,442 - - - - - - - - - 509,258 509,258 - - - - 195,547 32,306 (163,241) - - - - - - (234,000) - 234,000 509,258 509,258 - - - - (38,453) 32,306 70,759 (98,263)$ 239,559 337,822$ 338,807$ (19,691) (358,498)$ 716,457$ 1,228,658 512,201$ 278,154 341,352 13,337,009
517,713$ 321,661$ 14,565,667$
(Continued)

EXHIBIT A
392
City of Livermore
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual – Budgeted Non-Major Funds Year Ended June 30, 2023

CITY STREET SWEEPING PARK FEE
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)

REVENUES
Taxes and special assessments -$ -$ -$ -$ -$ -$ Intergovernmental - - - - - - Contributions from outside sources - - - - - - Charges for services 1,393,816 696,803 (697,013) 1,200,000 851,029 (348,971) Use of money and property - - - 32,571 93,552 60,981 Miscellaneous - - - - - - Total Revenues 1,393,816 696,803 (697,013) 1,232,571 944,581 (287,990)

EXPENDITURES
Current:

General Government:

City Manager - - - - - - Fire - - - - - - Police - - - - - - Public works 676,562 676,561 1 - - - Community Development - - - 500,000 156,831 343,169 Economic Development - - - - - - Library - - - - - - Capital Outlay:

Capital projects - - - 1,498,000 175,251 1,322,749 Debt service:

Principal - - - - - - Interest and fiscal charges - - - - - - Total Expenditures 676,562 676,561 1 1,998,000 332,082 1,665,918

EXCESS (DEFICIENCY) OF REVENUE
OVER EXPENDITURES 717,254 20,242 (697,012) (765,429) 612,499 1,377,928

OTHER FINANCING SOURCES (USES)
Certificates of Participation issued - - - - - - Transfers in - - - - - - Transfers out - - - - - - Total Other Financing Sources (Uses) - - - - - - Net change in fund balance 717,254$ 20,242 (697,012)$ (765,429)$ 612,499 1,377,928$ Fund balances (deficits)- beginning, as restated 48,549 3,755,527 Fund balances (deficits)- ending 68,791$ 4,368,026$ FOR THE FISCAL YEAR ENDED JUNE 30, 2023

BUDGETED NON-MAJOR FUNDS

BUDGET AND ACTUAL

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

EXHIBIT A
393
City of Livermore
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual – Budgeted Non-Major Funds Year Ended June 30, 2023

OTHER SPECIAL REVENUE FUNDS

ALAMEDA COUNTY
TRANS

PORTATION FUNDS
Variance Variance Varia nce
Positive Positive Posit ive
Budget Actual (Negat ive) Budget Actual (Negative) Budget Actual (Negative) -$ -$ -$ -$ -$ -$ -$ -$ -$ - - - - - - 2,470,000 3,475,355 1,005,355 9,044 9,044 - - - - - - - 205,500 366,811 161,311 - - - - - - 10,350 15,821 5,471 - - - 23,198 (63,520) (86,718) 250,000 - (250,000) 250,000 240,546 (9,454) - - - 474,894 391,676 (83, 218) 250,000 240,546 (9,454) 2,493,198 3,411,835 918,637 - - - 68,261 68,261 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 449,365 111,840 337,525 753,000 17,165 735,835 - - - 2,490,000 147,396 2,342,604 155,393 95,750 59,643 - - - - - - - - - - - - - - - 1,416,294 1,078,473 337, 821 - - - 4,983,569 1,045,142 3,938,427 - - - - - - - - - - - - - - - - - - 2,324,687 1,191,388 1, 133,299 68,261 68,261 - 7,922,934 1,304,378 6,618,556 (1,849,793) (799,712) 1, 050,081 181,739 172,285 (9,454) (5,429,736) 2,107,457 7,537,193 - - - - - - - - - - - - - - - - (12,495) (17,569) ( 5,074) - - - - - - (12,495) (17,569) ( 5,074) - - - - - - (1,862,288)$ (817,281) 1, 045,007$ 181,739$ 172,285 (9,454)$ (5,429,736)$ 2,107,457 7,537,193$ 5,620,757 1,271,678 8, 271,603
4,803,476$ 1,443,963$ 10, 379,060$
Continued
PEG

EXHIBIT A
394
City of Livermore
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual – Budgeted Non-Major Funds Year Ended June 30, 20 23

GAS TAX HOST COMMUNITY IMPACT FEE
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)

REVENUES
Taxes and special assessments -$ -$ -$ -$ -$ -$ Intergovernmental 3,684,500 4,121,210 436,710 - - - Contributions from outside sources - - - 520,000 546,530 26,530 Charges for services - - - - - - Use of money and property 14,989 (30,951) (45,940) - 34,359 34,359 Miscellaneous - 298 298 - - - Total Revenues 3,699,489 4,090,557 391,068 520,000 580,889 60,889

EXPENDITURES
Current:

General Government:

City Manager - - - - - - Fire - - - - - - Police - - - - - - Public works - - - 42,553 42,553 - Community Development 9,387,000 864,071 8,522,929 - - - Economic Development - - - - - - Library - - - - - - Capital Outlay:

Capital projects 2,354,134 636,471 1,717,663 - - - Debt service:

Principal - - - - - - Interest and fiscal charges - - - - - - Total Expenditures 11,741,134 1,500,542 10,240,592 42,553 42,553 -

EXCESS (DEFICIENCY) OF REVENUE
OVER EXPENDITURES (8,041,645) 2,590,015 10,631,660 477,447 538,336 60,889

OTHER FINANCING SOURCES (USES)
Premium on refunding bonds issued - - - - - - Transfers in - - - - - - Transfers out (109,000) (113,877) (4,877) (493,000) (493,000) - Total Other Financing Sources (Uses) (109,000) (113,877) (4,877) (493,000) (493,000) - Net change in fund balance (8,150,645)$ 2,476,138 10,626,783$ (15,553)$ 45,336 60,889$ Fund balances (deficits)- beginning, as restated 11,563,742 1,356,484 Fund balances (deficits)- ending 14,039,880$ 1,401,820$

BUDGETED NON-MAJOR FUNDS

BUDGET AND ACTUAL

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE FISCAL YEAR ENDED JUNE 30, 2023

EXHIBIT A
395
City of Livermore
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual – Budgeted Non-Major Funds Year Ended June 30, 2023

OTHER IMPACT FEE TVTC 20% FEE
Variance Variance Varia nce
Positive Positive Posit ive
Budget Actual (Negat ive) Budget Actual (Negative) Budget Actual (Negative) -$ -$ -$ -$ -$ -$ -$ -$ -$ - - - - - - 5,117,303 1,996,571 (3,120,732) - - - - - - 15,000 24,946 9,946 3,029,330 1,414,237 ( 1,615,093) 200,000 112,234 (87,766) 30,500 30,175 (325) - - - 15,162 34,394 19,232 30,136 40,295 10,159 - - - - - - 193,000 165,236 (27,764) 3,029,330 1,414,237 ( 1,615,093) 215,162 146,628 (68,534) 5,385,939 2,257,223 (3,128,716) - - - - - - - - - - - - - - - 24,200 5,650 18,550 - - - - - - 728,036 241,043 486,993 - - - - - - 16,000 - 16,000 3,048,590 1,242,549 1, 806,041 - - - 2,800,632 1,073,207 1,727,425 - - - - - - - - - - - - - - - 243,609 171,001 72,608 50,000 40,691 9,309 3,046,509 444,977 2,601,532 2,817,062 360,869 2,456,193 - - - - - - 126,759 90,758 36,001 - - - - - - 43,931 29,103 14,828 3,098,590 1,283,240 1, 815,350 3,046,509 444,977 2,601,532 6,800,229 1,971,631 4,828,598 (69,260) 130,997 200,257 (2,831,347) (298,349) 2,532,998 (1,414,290) 285,592 1,699,882 - - - - - - - - - - - - - - - - - - (150,000) - 150,000 - - - (33,000) (12,552) 20,448 (150,000) - 150,000 - - - (33,000) (12,552) 20,448 (219,260)$ 130,997 350,257$ (2,831,347)$ (298,349) 2,532,998$ (1,447,290)$ 273,040 1,720,330$ 2,670,664 3,213,046 6, 850,327
2,801,661$ 2,914,697$ 7, 123,367$

OTHER LOCAL, STATE, AND FEDERAL GRANTS

EXHIBIT A
396
City of Livermore
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual – Budgeted Non-Major Funds Year Ended June 30, 2023

2020 COP DEBT SERVICE 2022 COP DEBT SERVICE
Variance Variance
Positive Positive
Budget Actual (Negat ive) Budget Actual (Negative)

REVENUES
Taxes and special assessments -$ -$ -$ -$ -$ -$ Intergovernmental - - - - - - Contributions from outside sources - - - - - - Charges for services - - - - - - Use of money and property - - - - 757 757 Miscellaneous - - - - - - Total Revenues - - - - 757 757

EXPENDITURES
Current:

General Government:

City Manager - - - - - - Fire - - - - - - Police - - - - - - Public works - - - - - - Community Development - - - - - - Economic Development - - - - - - Library - - - - - - Capital Outlay:

Capital projects - - - - - - Debt service:

Principal 2,816,198 2,816,198 - 845,000 845,000 - Interest and fiscal charges 1,553,474 1,554,874 (1,400) 1,267,868 1,267,862 6 Total Expenditures 4,369,672 4,371,072 (1,400) 2,112,868 2,112,862 6

EXCESS (DEFICIENCY) OF REVENUE
OVER EXPENDITURES (4,369,672) (4,371, 072) (1,400) (2,112,868) (2,112,105) 763

OTHER FINANCING SOURCES (USES)
Certificates of Participation issued - - - 668, 829 628,828 (40,001) Transfers in 4,379,672 4,371,072 (8,600) 1,525,000 1,483,859 (41,141) Transfers out - - - - - - Total Other Financing Sources (Uses) 4,379,672 4,371,072 (8,600) 2,193,829 2,112,687 (81,142) Net change in fund balance 10,000$ - (10, 000)$ 80,961$ 582 (80,379)$ Fund balances (deficits)- beginning, as restated - - Fund balances (deficits)- ending -$ 582$

BUDGETED NON-MAJOR FUNDS

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2023

EXHIBIT A
397
City of Livermore
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual – Budgeted Non-Major Funds Year Ended June 30, 2023

TRAFFIC IMPACT FEE EL CHARRO SPECIFIC PLAN
Variance Variance Varia nce
Positive Positive Posit ive
Budget Actual (Negat ive) Budget Actual (Negative) Budget Actual (Negative) -$ -$ -$ -$ -$ -$ -$ -$ -$ - - - - - - - - - - - - - - - - - - 1,200,000 1,294,836 94, 836 - - - - - - 95,249 119,159 23,910 - - - 6,176 - (6,176) - - - - - - - - - 1,295,249 1,413,995 118, 746 - - - 6,176 - (6,176) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 225,000 - 225,000 - - - - - - - - - - - - - - - - - - - - - - - - 3,265,552 844,132 2,421, 420 887 887 - - - - - - - - - - - - - - - - - - - - - - 3,490,552 844,132 2,646, 420 887 887 - - - - (2,195,303) 569,863 2,765, 166 (887) (887) - 6,176 - (6,176) - - - - - - - - - - - - - - - - - - (63,995) (62,794) 1, 201 - - - - - - (63,995) (62,794) 1, 201 - - - - - - (2,259,298)$ 507,069 2,766, 367$ (887)$ (887) -$ 6,176$ - (6,176)$ 22,645,903 887 (5,902)
23,152,972$ -$ (5,902)$

DEVELOPER DEPOSITS

EXHIBIT A
398
City of Livermore
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual – Budgeted Non-Major Funds Year Ended June 30, 2023

Variance Variance
Positive Positive
Budget Actual (Negat ive) Budget Actual (Negative)

REVENUES
Taxes and special assessments -$ -$ -$ -$ -$ -$ Intergovernmental - - - - - - Contributions from outside sources - - - - - - Charges for services 2,689,955 - (2, 689,955) - - - Use of money and property - - - 769 177 (592) Miscellaneous - 1,109 1, 109 - - - Total Revenues 2,689,955 1,109 ( 2,688,846) 769 177 (592)

EXPENDITURES
Current:

General Government:

City Manager - - - - - - Fire - - - - - - Police - - - - - - Public works - - - - - - Community Development - - - - - - Economic Development - - - - - - Library - - - - - - Capital Outlay:

Capital projects - - - - - - Debt service:

Principal - - - - - - Interest and fiscal charges - - - - - - Total Expenditures - - - - - -

EXCESS (DEFICIENCY) OF REVENUE
OVER EXPENDITURES 2,689,955 1,109 ( 2,688,846) 769 177 (592)

OTHER FINANCING SOURCES (USES)
Certificates of Participation issued - - - - - - Transfers in - - - - - - Transfers out - - - ( 69,409) (69,409) - Total Other Financing Sources (Uses) - - - ( 69,409) (69,409) - Net change in fund balance 2,689,955$ 1,109 ( 2,688,846)$ (68,640)$ (69,232) (592)$ Fund balances (deficits)- beginning, as restated 14,557,752 69,232 Fund balances (deficits)- ending 14,558,861$ -$

BUDGETED NON-MAJOR FUNDS

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

STREET FUNDOTHER CAPITAL PROJECTS

BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2023

EXHIBIT A
399
City of Livermore
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual – Budgeted Non-Major Funds Year Ended June 30, 2023

Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
-$ -$ -$ -$ -$ -$ - - - - - - - - - - - - - - - - - - 66,244 54,797 (11,447) 650,000 784,828 134,828 - - - - - - 66,244 54,797 (11,447) 650,000 784,828 134,828 - - - - - - - - - - - - - - - - - - - - - - - - 31,036 31,036 - - - - - - - - - - - - - - - - - - - 1,288,000 5,799,684 (4,511,684) - - - - - - - - - - - - 31,036 31,036 - 1,288,000 5,799,684 (4,511,684) 35,208 23,761 (11,447) (638,000) (5,014,856) (4,376,856) - - - 40,930,127 40,930,127 - - - - - - - - - - - - - - - - 40,930,127 40,930,127 - 35,208$ 23,761 (11,447)$ 40,292,127$ 35,915,271 (4,376,856)$ 577,287 (1,807,055)
601,048$ 34,108,216$
2022 COP CONSTRUCTION CAPITAL

PROJECTS FUNDDOOLAN CANYON ENDWOMENT FUND

EXHIBIT A
400
City of Livermore
Internal Services Funds
June 30, 2023

Internal Service Funds

Internal service funds are used to account for the financing of services and supplies provided by one city department to another on a cost reimbursement basis.

The concept of major funds introduced by GASB 34 does not extend to internal service funds because they do not do business with outside parties. GASB 34 requires that for the Statement of Activities, the net revenues or expenses of each internal service fund be eliminated by netting against the operations of the other city departments which generated them. The remaining balance sheet items are consolidated with these same funds in the Statement of Net Position.

However, internal service funds are still presented separately in the Fund financial statements, including the funds below:

Liability Insurance Reserve
Established to account for the City’s public liability self-insured program.

Workers Compensation
Established to account for the City’s self-insured workers compensation program.

Fleet and Equipment Services
Established to account for the maintenance and acquisition of the City’s fleet and small equipment.

Information Technology
Established to account for the maintenance and acquisition of the City’s software and hardware.

Facilities Rehabilitation Projects
Established to account for the repair and maintenance of city facilities.

EXHIBIT A
401
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EXHIBIT A
402
City of Livermore
Combining Statements of Net Position – Internal Service Funds Year Ended June 30, 2023

Liability Fleet and
Insurance Workers Equipme nt
Reserve Compensation Servi ces
ASSETS
Current Assets:

Cash and investments in City Treasury 5,340,518$ 4,590,709$ 6,998,053$ Accounts receivable, net - - 111,623 Inventory - - 361,074 Prepaids, deposits and supplies - - - Total current assets 5,340,518 4,590,709 7,470,750 Noncurrent Assets:

Land and construction in progress - - 297,034 Depreciable capital assets (net of depreciation) - - 6,537, 778 Subscription assets (net of amortization) - - - Total noncurrent assets - - 6,834, 812 Total Assets 5,340,518 4,590,709 14,305,562

DEFERRED OUTFLOWS OF RESOURCES
Related to pension 175,868 162,412 720, 894 Related to OPEB 7,205 2,329 24, 759 Total deferred outflows of resources 183,073 164,741 745, 653

LIABILITIES
Current Liabilities:

Accounts payable and other accruals 124,039 122,959 341, 722 Accrued payroll 10,729 9,568 40, 751 Interest payable - - - Claims payable 1,443,000 1,249,018 - Deposits payable - - - Long-term debt:

Due within one year - - - Total current liabilities 1,577,768 1,381,545 382,473 Noncurrent Liabilities:

Claims payable 2,941,528 3,994,651 - Subscription liability - - - Net Pension liability 561,499 518,538 2, 301,619 Net OPEB liabilities 169,450 54,783 582, 312 Long-term debt:

Due in more than one year - - - Total noncurrent liabilities 3,672,477 4,567,972 2,883,931 Total liabilities 5,250,245 5,949,517 3,266,404

DEFERRED INFLOWS OF RESOURCES
Related to pension 9,905 9,148 40, 603 Related to OPEB 29,225 9,448 100, 430 Total deferred inflows of resources 39,130 18,596 141, 033

NET POSITION
Net Investment in Capital Assets - - 6,834, 812 Unrestricted 234,216 (1,212, 663) 4,808,966 Total Net Position 234,216$ (1,212, 663)$ 11,643,778$

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF NET POSITION
JUNE 30, 2023

EXHIBIT A
403
City of Livermore
Combining Statements of Net Position – Internal Service Funds Year Ended June 30, 2023

Facilities
Information Rehabilitation
Technology Projects Total
6,540,995$ 6,166,014$ 29,636,289$ (175) 109,455 220,903 - - 361,074 104,432 - 104,432 6,645,252 6,275,469 30,322,698 - 1,574,857 1,871,891 318,161 8,861,258 15,717,197 441,197 - 441,197 759,358 10,436,115 18,030,285 7,404,610 16,711,584 48,352,983 1,123,452 406,874 2,589,500 25,486 6,554 66,333 1,148,938 413,428 2,655,833 115,434 825,537 1,529,691 65,185 25,604 151,837 5,987 - 5,987 - - 2,692,018 - 38,478 38,478 - 856,119 856,119 186,606 1,745,738 5,274,130 - - 6,936,179 422,759 422,759
3,586,877 1,299,040 8,267,573 599,419 154,147 1,560,111 - 4,498,123 4,498,123 4,609,055 5,951,310 21,684,745 4,795,661 7,697,048 26,958,875 63,276 22,916 145,848 103,381 26,585 269,069 166,657 49,501 414,917 759,358 5,081,873 12,676,043 2,831,872 4,296,590 10,958,981 3,591,230$ 9,378,463$ 23,635,024$

EXHIBIT A
404
City of Livermore
Combining Statements of Revenues, Expenses and Changes in Net Position Year Ended June 30, 2023

Liability Fleet and
Insurance Workers Equipment
Reserve Compensation Services

OPERATING REVENUES
Charges for services 4,450,000$ 1,014,673$ 4, 689,839$ Miscellaneous - 2,770 534,891 Total Operating Revenues 4,450,000 1,017,443 5, 224,730

OPERATING EXPENSES
Salaries and benefits 227,828 222,570 1,304, 566 Contracted services 506,243 197,567 46,367 Insurance premiums and claim expenses 3,487,000 1,829,664 114, 668 Materials, supplies and others 35,782 80,373 985,507 Utilities 1,859 1,795 1,160 Depreciation and amortization - - 1,373,157 Repairs and maintenance 5,552 2,944 556,926 Total Operating Expenses 4,264,264 2,334,913 4, 382,351 Operating Income (Loss) 185,736 (1,317,470) 842,379

NONOPERATING REVENUE (EXPENSES)
Interest and fiscal charges (expense) - - - Other Nonoperating Income (expenses) - - 125,320 Gain (loss) on disposal of property - - (22,930) Net Nonoperating Revenues (Expenses) - - 102,390 Income (Loss) Before Transfers 185,736 (1,317,470) 944,769 Change in Net Position 185,736 (1,317,470) 944,769 Net position-beginning (Deficit) 48,480 104,807 10,699, 009 Net position-ending 234,216$ (1,212,663)$ 11,643,778$

INTERNAL SERVICE FUNDS

COMBINING STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR THE YEAR ENDED JUNE 30, 2023

EXHIBIT A
405
City of Livermore
Combining Statements of Revenues, Expenses and Changes in Net Position Year Ended June 30, 2023

Facilities
Information Rehabilitation
Technology Projects Total
4,535,000$ 2,310,078$ 16,999,590$ - 133,673 671,334 4,535,000 2,443,751 17,670,924 2,269,352 826,374 4,850,690 2,688,332 11,852 3,450,361 143,202 98,454 5,672,988 161,552 69,884 1,333,098 95,651 708,254 808,719 285,842 843,248 2,502,247 734,417 1,227,900 2,527,739 6,378,348 3,785,966 21,145,842 (1,843,348) (1,342,215) (3,474,918) (11,394) (149,965) (161,359) - - 125,320 (2,017) - (24,947) (13,411) (149,965) (60,986) (1,856,759) (1,492,180) (3,535,904) (1,856,759) (1,492,180) (3,535,904) 5,447,989 10,870,643 27,170,928 3,591,230$ 9,378,463$ 23,635,024$

EXHIBIT A
406
City of Livermore
Combining Statements of Cash Flow
Year Ended June 30, 2023

Liability Fleet and
Insurance Workers Equipment
Reserve Compensation Services

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 4,453,800$ 1,017,443$ 5,186,575$ Payments to suppliers (741,093) (161,698) (1,668,422) Payments to or on behalf of employees (329,302) (294,012) (1,388,093) Claims paid (2,839,341) (1,704,257) - Net cash provided (used) by operating activities 544,064 (1,142,524) 2,130,060

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Capital asset purchase - - (1,828,203) Loss on disposal - - (22,930) Long term Debt
Repayments - - - Interest paid - - - Cash Flows (used for) Capital and Related
Financing Activities - - (1,851,133)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment income (loss) - - 125,320 Cash Flow from (used by) Investing Activities - - 125,320 Net Cash Flows 544,064 (1,142,524) 404,247 Cash and investments at beginning of period 4,796,454 5,733,233 6,593,806 Cash and Investment at end of period 5,340,518$ 4,590,709$ 6,998,053$ Reconciliation of operating income (loss) to net cash
provided by operating activities:

Operating income 185,736$ (1,317,470)$ 842,379$ Adjustments to reconcile operating income (loss) to net cash provided by operating activities:

Depreciation - - 1,373,157 Change in assets and liabilities:

Accounts receivable 3,800 - (38,155) Prepaids, deposits and supplies - - (10,893) Deferred outflows (80,218) (82,104) (394,275) Net pension liability 188,479 180,437 1,042,534 Net OPEB liabilities (59,673) (19,318) (244,094) Accounts payable and accrued liabilities (191,657) 120,981 58,488 Accrued payroll 101 (442) - Subscription liability - - - Claims payable 647,659 125,407 - Deferred inflows (150,163) (150,015) (499,081) Net cash provided (used) by operating activities 544,064$ (1,142,524)$ 2,130,060$

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2023

EXHIBIT A
407
City of Livermore
Combining Statements of Cash Flow
Year Ended June 30, 2023

Facilities
Information Rehabilitation
Technology Projects Total
4,535,175$ 2,497,860$ 17,690,853$ (3,663,539) (1,504,728) (7,739,480) (1,729,851) (752,191) (4,493,449) - - (4,543,598) (858,215) 240,941 914,326 (751,454) (1,204,903) (3,784,560) (2,017) - (24,947) - (794,252) (794,252) (5,407) (149,965) (155,372) (758,878) (2,149,120) (4,759,131) - - 125,320 - - 125,320 (1,617,093) (1,908,179) (3,719,485) 8,158,088 8,074,193 33,355,774 6,540,995$ 6,166,014$ 29,636,289$ (1,843,348)$ (1,342,215)$ (3,474,918)$ 285,842 843,248 2,502,247 175 15,631 (18,549) 167,770 38,478 195,355 (669,518) (248,295) (1,474,410) 1,771,491 640,069 3,823,010 (248,917) (41,632) (613,634) 4,197 615,922 607,931 - - (341) 422,759 - 422,759 - - 773,066 (748,666) (280,265) (1,828,190) (858,215)$ 240,941$ 914,326$

EXHIBIT A
408
City of Livermore
Custodial Funds
June 30, 2023

Custodial Funds

Custodial funds are used to account for assets held by the City for other entities and individuals. Such funds are operated to carry out the specific actions of trust agreements, ordinances, and other governing regulations.

Community Facilities and Assessment Districts’ Bonds
This fund accounts for the collection of property owners' debt service obligation which is used to pay principal and interest on 1915 Act Bonds.

Other Custodial Funds
This fund accounts for assets which are held for other governmental agencies or individuals by the City in a custodial capacity.

EXHIBIT A
409
City of Livermore
Combining Statement of Fiduciary Net Position – Custodial Funds Year Ended June 30, 2023

Passthrough LPFD JPA
Funds JPA Total
ASSETS
Cash and investments in City Treasury (Note 3B) 9,568,725$ 872,999$ 10,441, 724$ Cash and investments with Trustees (Note 3B) 2,812,388 - 2,812,388 Accounts receivable 16,648 1,236,007 1, 252,655 Total Assets 12,397,761 2,109,006 14, 506,767

LIABILITIES
Accrued liabilities 382,206 1,609,005 1, 991,211 Deposits payable 5,512,269 - 5,512,269 Total Liabilities 5,894,475 1,609,005 7, 503,480

NET POSITION
Held in trust 6,503,286$ 500,001$ 7,003, 287$

CUSTODIAL FUNDS

COMBINING STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2023

EXHIBIT A
410
City of Livermore
Combining Statement of Changes in Fiduciary Net Position Year Ended June 30, 2023

Passthrough LPFD JPA Total

ADDITIONS
Charges for services 4,603,727$ 45,230,781$ 49,834,508$ Total Additions 4,603,727 45,230,781 49,834,508

DEDUCTIONS
Recipient Payments 5,415,281 45,980,779 51,396,060 Total Deductions 5,415,281 45,980,779 51,396,060 Net Change in Net Position (811,554) (749,998) (1,561,552)

NET POSITION
Beginning Net Position (Note 9F) 7,314,840 1,249,999 8,564,839 End of year 6,503,286$ 500,001$ 7,003,287$

CUSTODIAL FUNDS

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE YEAR ENDED ON JUNE 30, 2023

EXHIBIT A
411
Statistical Section (Unaudited)
June 30, 2023
City of Livermore
eidebailly.com

EXHIBIT A
412
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EXHIBIT A
413
City of Livermore
Description of Statistical Section Contents
Year Ended Jun e 30, 2023

This part of the City of Livermore’s annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government’s overall financial health.

Contents:

Pages
Financial Trends the
ses schedules contain trend information to help the reader understand how the government’s financial performance and well-being have changed over time. 136 - 142

Revenue Capacity these schedules contain information to help the reader assess the government’s two most significant local revenue source – the sales tax and property tax. 143 - 149

Debt Capacity these s chedules present information to help the reader assess the affordability of the government’s current levels of outstanding debt and the government’s ability to issue additional debt in the future. 150 - 152

Demographic and Economic Information the se schedules offer demographic and economic indicators to help the reader understand the environment within which the government’s financial activities take place. 153 - 155

Operating Information the se schedules contain service and infrastructure data to help the reader understand how the information in the government’s financial report relates to the services the government provides and the activities it performs. 156 - 164

Livermore Successor Agency thes e schedules contain information to help the reader assess the Livermore RDA’s revenues, debt service, and other indicators. 165 - 167

Sources:

Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports for the relevant year.

EXHIBIT A
414
City of Livermore
Net Position by Component
Last Ten Fiscal Years (Accrual Basis of Accounting)

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Governmental activities
Net investment in capital assets 278,670,042$ 282,932,408$ 286,589,221$ 288,382,796$ 290,283,699$ 308,461,598$ 316,407,161$ 316,616,522$ 329,890,590$ 330,015,760$ Restricted 34,034,587 61,824,573 78,250,270 76,320,882 92,305,699 81,561,447 88,497,962 145,907,840 137,933,441 195,996,622 Unrestricted 33,575,365 (59,176, 525) (36,129,816) (20,113,778) (31,158,732) (28,940,594) (35,517,921) (79,949,428) (74,637,389) (91,551,961) Total governmental activities net position 346,279,994$ 285,580,456$ 328,709,675$ 344,589,900$ 351,430,666$ 361,082,451$ 369,387,202$ 382,574,934$ 393,186,642$ 434,460,421$ Business-type activities
Net investment in capital assets 140,571,723$ 141,163,645$ 137,068,262$ 139,333,158$ 141,811,387$ 132,533,193$ 144,490,755$ 144,545,798$ 140,388,714$ 139,173,883$ Unrestricted 97,792,547 91,680,464 96,819,619 94,747,853 102,114,754 113,918,054 112,447,010 113,873,028 121,205,214 129,226,153 Total business-type activities net position 238,364,270$ 232,844,109$ 233,887,881$ 234,081,011$ 243,926,141$ 246,451,247$ 256,937,765$ 258,418,826$ 261,593,928$ 268,400,036$ Primary government
Net investment in capital assets 419,241,765$ 424,096,053$ 423,657,483$ 427,715,954$ 432,095,086$ 440,994,791$ 460,897,916$ 461,162,320$ $470,279,304 469,189,643$ Restricted 34,034,587 61,824,573 78,250,270 76,320,882 92,305,699 81,561,447 88,497,962 145,907,840 137,933,441 195,996,622 Unrestricted 131,367,912 32,503,939 60,689,803 74,634,075 70,956,022 84,977,460 76,929,089 33,923,600 46,567,825 37,674,192 Total primary government net position 584,644,264$ 518,424,565$ 562,597,556$ 578,670,911$ 595,356,807$ 607,533,698$ 626,324,967$ 640,993,760$ $654,780,570 702,860,457$ Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)

EXHIBIT A
415
City of Livermore
Changes in Net Position
Last Ten Fiscal Years (Accrual Basis of Accounting)

2014 2015 2016 2017 * 2018 2019 2020 2021 2022 2023
Expenses
Governmental activities
General Government 12,589,567$ 11,880,499$ 11,433,092$ 11,513,994$ 15,729,502$ 18,619,685$ 23,532,602$ 15,550,878$ 14,261,204$ 15,486,750$ Fire 15,368,561 16,665,396 17,222,099 23,553,737 25,472,063 20,854,960 21,975,048 24,427,677 21,113,001 25,376,744 Police 31,092,970 30,516,594 29,624,394 32,703,145 36,741,948 37,862,170 37,301,780 40,395,532 38,985,776 40,999,419 Public Works 14,383,488 14,363,304 14,985,937 18,116,391 19,060,229 19,290,328 19,665,609 21,662,957 23,798,519 21,412,309 Community Development 23,528,766 15,711,525 27,302,011 22,044,584 20,012,366 36,444,392 32,628,435 24,802,552 26,558,158 21,514,818 Economic Development - - - 2,353,896 2,165,309 2,820,265 2,805,692 4,418,752 2,596,471 2,901,245 Library 5,052,341 4,863,723 4,886,840 5,858,998 6,214,109 6,341,564 6,349,762 6,303,545 6,302,537 6,913,509 Redevelopment - - - - - - - - - - Interest on long term debt 1,142,866 1,288,881 1,033,661 1,266,179 1,270,061 1,397,328 1,682,372 1,219,276 1,127,846 2,779,617 Total governmental activities expenses 103,158,559 95,289,922 106,488,034 117,410,924 126,665,587 143,630,692 145,941,300 138,781,169 134,743,512 137,384,411 Business-type activities:

Airport 6,336,579 5,637,480 3,870,139 7,017,908 3,016,304 3,504,956 4,250,953 4,022,246 3,498,840 3,030,841 Water 11,408,389 9,907,976 10,996,708 13,884,791 14,701,669 15,934,857 15,625,538 18,821,642 17,126,698 18,333,679 Sewer 21,614,437 23,005,606 25,293,809 24,879,897 21,824,590 24,081,018 24,049,671 24,026,163 23,822,392 25,174,657 Stormwater - - - - 4,572,368 6,215,290 5,157,718 5,341,864 5,075,457 5,282,516 Las Positas 3,492,698 3,331,686 3,204,730 2,935,020 3,025,888 1,986,853 - - - - Springtown 38,399 32,171 105,030 - - - - - - - Total business-type activities expenses 42,890,502 41,914,919 43,470,416 48,717,616 47,140,819 51,722,974 49,083,880 52,211,915 49,523,387 51,821,693 Total primary government expenses 146,049,061$ 137,204,841$ 149,958,450$ 166,128,540$ 173,806,406$ 195,353,666$ 195,025,180$ 190,993,084$ 184,266,899$ 189,206,104$ * Starting fiscal year 2017, City Clerk is presented as a part of Administrative Services (Continued) * Starting fiscal year 2018, Stormwater is presented separately from Sewer Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)

EXHIBIT A
416
City of Livermore
Changes in Net Position
Last Ten Fiscal Years (Accrual Basis of Accounting)

2014 2015 2016 2017 * 2017 2019 2020 2021 2022 2023
Program Revenues
Governmental activities:

Charges for services:

General Government 774,339$ 1,083,813$ 855, 888$ 1,534,690$ 2,009,308$ 1,598,885 1,502,556 1,203,282 682,277 897,891 Fire 1,714,973 1,634,534 1, 822,267 1,813,604 2,560,405 767,507 1,339,356 1,150,341 2,202,529 1,125,366 Police 1,340,240 1,600,551 1, 718,669 1,596,383 1,866,310 1,936,452 1,781,262 1,664,591 1,848,328 1,287,389 Public Works 178,263 205,163 220,715 253,942 214,104 319,336 237,566 237,986 240,778 249,909 Community Development 10,414,752 14,881,608 19, 070,042 13,679,642 12,374,344 8,685,435 12,068,342 9,082,146 11,234,653 13,154,684 Economic Development - - - - - - - - - - Library 147,543 121,244 113,218 109,423 106,819 102,007 29,584 935 5,257 10,508 Redevelplment - - - - - - - Operating grants and contributions 9,665,802 19,882,483 14, 034,381 10,152,472 17,851,251 14,944,050 16,349,423 19,784,517 17,750,934 15,797,120 Capital grants and contributions 8,435,777 20,161,044 21, 329,334 10,968,620 22,984,924 11,646,318 12,379,725 9,478,790 4,947,988 3,300,912 Total governmental activities program revenues 32,671,689 59,570,440 59, 164,514 40,108,776 59,967,465 39,999,990 45,687,814 42,602,588 38,912,744 35,823,779 Business-type activities:

Charges for services:

Airport 6,925,128 6,166,771 4, 671,643 3,989,363 3,638,327 3,949,727 3,988,814 3,807,332 3,426,583 3,542,766 Water 12,523,886 13,211,780 12, 567,619 13,790,365 15,088,661 14,871,772 16,757,972 17,610,383 17,640,764 17,392,495 Sewer 18,822,193 20,401,801 22, 853,237 20,438,612 21,391,758 22,944,348 24,535,578 25,604,994 28,379,195 30,144,505 Stormwater - 1,112,473 1, 136,319 1,137,063 1,134,233 1,145,489 1,154,925 Las Positas 3,259,879 3,087,554 3, 016,898 2,636,577 2,733,407 1,628,472 - - - - Springtown 11,392 6,173 3,694 - - - - - - - Operating grants and contributions - - - 3,079, 962 199,428 643,541 - 374,526 512,162 568,394 Capital grants and contributions 2,120,480 2,691,864 50, 450 4,269,465 7,025,848 7,342,209 7,381,049 2,988,779 1,679,990 2,710,316 Total business-type activities program revenues 43,662,958 45,565,943 43, 163,541 48,204,344 51,189,902 52,516,388 53,800,476 51,520,247 52,784,183 55,513,401 Total primary government program revenues 76,334,647$ 105,136,383$ 102, 328,055$ 88,313,120$ 111,157,367$ 92,516,378$ 99,488,290$ 94,122,835$ $91,696,927 91,337,180$ Net (Expense) Revenue
Governmental activities (70,486,870)$ (35,719,482)$ (47,323,520)$ (77,302,148)$ (66,698,122)$ (103,630,702)$ (100,253,486)$ (96,178,581)$ (95,830,768)$ (101,560,632)$ Business-type activities 772,456 3,651,024 ( 306,875) (513,272) 4,049,083 793,414 4,716,596 (691,668) 3,260,796 3,691,708 Total primary government net expenses (69,714,414)$ (32,068,458)$ (47,630,395)$ (77,815,420)$ (62,649,039)$ (102,837,288)$ (95,536,890)$ (96,870,249)$ (92,569,972)$ (97,868,924)$ (Continued)
(accrual basis of accounting)
Changes in Net Position
Last Ten Fiscal Years

EXHIBIT A
417
City of Livermore
Changes in Net Position
Last Ten Fiscal Years (Accrual Basis of Accounting)

2014 2015 2016 2017 * 2017 2019 2020 2021 2022 2023
General Revenues and Other Changes in Net Position
Governmental activities:

Taxes:

Property taxes 24,721,318$ 26,379,108$ 28, 340,602$ 30,494,247$ 32,960,384$ 35,577,827 37,797,380 38,874,958 40,754,977 44,792,322 Incremental property taxes - - - - - - - - - - Sales taxes 25,159,952 27,278,151 29, 932,022 30,684,026 32,346,374 35,556,493 32,869,001 35,441,550 39,907,361 39,032,166 Other taxes 11,859,580 13,587,065 15, 204,335 15,429,188 17,211,775 16,895,027 16,253,107 16,150,202 18,389,594 25,852,840 Intergovernmental 6,055,370 6,506,780 6, 964,071 7,411,648 7,897,068 8,417,344 8,962,999 9,417,844 10,029,277 12,176,887 Investment income 1,336,195 952,239 1,782, 742 757,516 1,295,887 6,928,825 8,520,096 1,573,776 (7,655,464) 3,969,590 Miscellaneous 7,366,432 8,313,221 8, 430,147 8,608,485 6,655,867 5,508,154 6,001,803 6,442,577 7,960,003 8,816,246 Change of value from investment in JPA - - - - - (1,354,554) (1,522,359) - - - Transfers (net) 328,427 (4,258,088) (201,180) (202,737) (12,507,742) 3,794,799 (323,790) (1,767,363) (2,943,272) (2,299,891) Total governmental activities 76,827,274 78,758,476 90, 452,739 93,182,373 85,859,613 111,323,915 108,558,237 106,133,544 106,442,476 132,340,160 Business-type activities:

Interest and other income 281,708 388,004 1,034, 225 293,279 711,495 4,250,989 3,293,931 405,366 (3,028,966) 810,299 Transfers (net) (328,427) 4,258,088 201, 180 202,737 12,507,742 (3,794,799) 323,790 1,767,363 2,943,272 2,299,891 Change in value of Investment in JPA (232,754) 39,878 115,242 210,386 329,595 1,275,502 445,399 - - - Total business-type activities (279,473) 4,685,970 1, 350,647 706,402 13,548,832 1,731,692 4,063,120 2,172,729 (85,694) 3,110,190 Total primary government activities 76,547,801$ 83,444,446$ 91, 803,386$ 93,888,775$ 99,408,445$ 113,055,607$ 112,621,357$ 108,306,273$ $106,356,782 135,450,350$ Change in Net Position
Governmental activities 6,340,404$ 43,038,994$ 43, 129,219$ 15,880,225$ 19,161,491$ 7,693,213$ 8,304,751$ 9,954,963$ $10,611,708 30,779,528$ Business-type activities 492,983 8,336,994 1, 043,772 193,130 17,597,915 2,525,106 8,779,716 1,481,061 3,175,102 6,801,898 Total primary government 6,833,387$ 51,375,988$ 44, 172,991$ 16,073,355$ 36,759,406$ 10,218,319$ 17,084,467$ 11,436,024$ $13,786,810 37,581,426$ Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)

EXHIBIT A
418
City of Livermore
Fund Balances of Governmental Funds
Last Ten Fiscal Years (Modified Accrual Basis of Accounting)

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
General Fund
Nonspendable 6,317,781$ 5,423,421$ 5,220,875$ 5,191,768$ 6,911,157$ 5,712,441$ 5,627,682$ 5,609,833$ $5,844,210 5,713,684$ Restricted - - - - - - - - - - Committed 12,548,889 12,897,711 13,980,181 14,534,792 15,689,514 15,954,446 16,561,703 17,419,222 18,137,383 18,537,548 Assigned 8,365,926 8,598,474 16,490,551 17,891,417 20,120,563 22,359,001 24,905,533 29,677,300 43,006,790 59,058,156 Unassigned 5,050,960 10,406,034 11,447,929 16,850,333 20,197,806 21,015,747 22,903,595 24,471,138 1,794,772 620,364 Total general fund 32,283,556$ 37,325,640$ 47,139,536$ 54,468,310$ 62,919,040$ 65,041,635$ 69,998,513$ 77,177,493$ $68,783,155 83,929,752$ All Other Governmental Funds
Nonspendable 57,439,026$ 4,000$ -$ 3,580$ 510,525$ 540,789$ 537,935$ 521,482$ $589,503 613,264$ Restricted - 82,222,196 106,877,672 117,117,738 122,335,628 107,752,207 106,314,261 115,657,837 107,008,330 187,443,027 Committed - - - - 980,960 1,583,505 2,597,943 2,597,943 2,597,943 2,597,943 Assigned - - - - - - - - - - Unassigned (1,230,719) (548) - (157,775) (66,518) (337,703) - - - - Total all other governmental funds 56,208,307$ 82,225,648$ 106,877,672$ 116,963,543$ 123,760,595$ 109,538,798$ 109,450,139$ 118,777,262$ $110,195,776 190,654,234$ Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)

EXHIBIT A
419
City of Livermore
Changes in Fund Balances of Governmental Fund
Last Ten Fiscal Years (Modified Accrual Basis of Accounting)

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Revenues
Property Taxes and special assessments 39,047,027$ 42,437,878$ 46,106,890$ 48,513,433$ 52,797,891$ 55,378,923$ 57,137,281$ 58,827,934$ 63,508,257$ 70,645,162$ Sales taxes 25,159,952 27,278,151 29,932,022 30,684,026 32,346,374 35,556,493 32,869,001 35,441,550 39,907,361 39,032,166 Property tax increment - - - - - - - - - - Licenses and permits 2,020,956 2,919,585 3,375,139 2,587,073 3,329,443 2,647,472 2,408,482 2,587,449 4,236,642 3,952,512 Intergovernmental 14,523,429 17,513,836 15,818,812 15,329,383 18,609,342 19,663,932 21,151,712 27,824,580 26,390,007 22,029,372 Contributions from outside sources 3,090,683 6,407,835 1,492,046 3,360,435 12,763,436 3,668,666 1,735,332 395,011 625,103 605,984 Fines and forfeitures 442,101 474,279 404,562 382,735 472,063 522,198 480,714 12,837,128 444,025 394,263 Charges for current services 18,937,543 34,250,853 39,071,843 23,669,667 25,413,665 15,988,594 20,392,611 5,322,238 14,008,997 16,364,892 Use of money and property 3,444,283 3,573,515 5,106,185 3,718,382 4,594,593 12,607,413 12,667,441 4,222,473 (4,288,535) 5,258,816 Miscellaneous 1,568,992 7,731,071 8,218,597 2,754,329 4,344,239 1,820,316 1,338,085 2,311,612 2,862,290 10,157,389 Total revenues 108,234,966 142,587,003 149,526,096 130,999,463 154,671,046 147,854,007 150,180,659 149,769,975 147,694,147 168,440,556 Expenditures
General government 13,440,473 13,981,528 14,343,118 13,531,789 13,631,535 15,040,356 16,768,256 13,826,319 15,881,178 15,898,607 Fire 15,293,516 16,392,361 17,593,133 18,160,089 19,742,654 21,484,772 21,963,399 22,765,664 24,292,024 24,953,858 Police 30,000,873 32,114,470 31,248,269 32,611,631 35,474,413 37,991,489 37,855,355 39,584,317 41,583,398 43,514,564 Public Works 6,259,095 6,479,506 7,125,447 9,801,590 10,649,264 10,858,274 11,296,986 13,093,994 15,942,006 12,082,789 Community Development 22,660,129 23,177,157 26,435,968 22,366,625 26,613,789 41,744,030 31,872,893 23,269,924 28,304,312 20,728,682 Economic Development - - - 2,355,266 2,169,717 2,815,442 2,826,509 4,435,600 2,912,656 2,980,164 Library 4,369,666 4,455,160 4,540,660 5,287,778 5,639,115 5,665,784 5,896,798 5,626,180 6,387,640 6,472,650 Redevelopment - - - - - - - - - - Capital outlay 5,641,979 18,897,678 6,211,698 4,065,706 9,106,715 20,651,425 11,028,144 10,629,079 22,565,242 13,105,912 Debt service funds:

Principal 8,445,369 4,703,788 5,597,905 3,908,648 3,274,972 2,817,102 3,125,453 122,607 3,287,228 4,375,867 Interest and fiscal charges 1,414,883 1,872,291 1,555,850 1,292,959 1,274,238 1,400,431 1,505,596 1,375,594 1,746,920 2,888,474 Issuance cost - - - - - - 407,260 - - - Total Expenditures 107,525,983 122,073,939 114,652,048 113,382,081 127,576,412 160,469,105 144,546,649 134,729,278 162,902,604 147,001,567 Excess of Revenues
over (under)
expenditures 708,983 20,513,064 34,874,048 17,617,382 27,094,634 (12,615,098) 5,634,010 15,040,697 (15,208,457) 21,438,989 (Continued)
Changes In Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)

EXHIBIT A
420
City of Livermore
Changes in Fund Balances of Governmental Fund
Last Ten Fiscal Years (Modified Accrual Basis of Accounting)

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Other Financing
Sources (Uses)
Proceeds from long term debt -$ 49,776,268$ -$ -$ -$ -$ -$ -$ -$ 41,558,955$ Payment to refunded bond escrow agent - (39,411,268) - - - - (51,296,699) - - - Refunding bonds issued - - - - - - 42,932,418 - - - Premium on refunding bonds issued - - - - - - 7,922,280 - - - Transfers in 11,632,939 58,411,053 8,915,955 8,774,169 8,914,189 5,744,041 56,604,093 3,212,134 6,510,390 6,672,696 Transfers out (11,449,012) (58,229,692) (9,324,083) (8,976,906) (20,951,304) (7,186,717) (56,927,883) (4,979,497) (8,277,757) (8,972,587) Total other financing
sources (uses) 183,927 10,546,361 (408,128) (202,737) (12,037,115) (1,442,676) (765,791) (1,767,363) (1,767,367) 39,259,064 Net change in
fund balances 892,910$ 31,059,425$ 34,465,920$ 17,414,645$ 15,057,519$ (14,057,774)$ 4,868,219$ 13,273,334$ (16,975,824)$ 60,698,053$ Debt service as a
percentage of noncapital
expenditures 9.7% 6.4% 6.6% 4.8% 3.8% 3.0% 3.5% 1.2% 3.6% 5.4% (modified accrual basis of accounting)
Changes In Fund Balances of Governmental Funds
Last Ten Fiscal Years

EXHIBIT A
421
City of Livermore
Taxable Sales by Category
Last Ten Fiscal Years

Business Type 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Apparel Stores $ 281,213 $ 307,674 $ 374,135 $ 463,533 $ 481,639 $ 518,984 $ 534,128 $ 272,264 $ 445,974 $ 490,106 General Merchandise 237,158 239,714 237,252 239,903 248,531 256,781 264,587 231,840 267,865 292,338 Food Stores 41,699 41,828 43,382 44,270 44,271 45,206 44,334 48,146 46,423 47,106 Eating and Drinking Places 148,779 163,118 176,523 193,331 200,835 209,541 217,431 161,627 217,194 243,993 Building Materials 175,935 180,357 211,876 223,778 242,577 263,116 244,488 252,777 296,004 312,657 Auto Dealers and Supplies 285,595 387,808 447,076 454,236 468,415 469,931 512,168 402,481 438,041 447,429 Service Stations 199,835 192,424 160,878 150,389 168,825 199,928 193,527 135,983 190,482 226,097 Other Retail Stores 179,952 190,948 208,524 218,332 218,677 227,634 225,905 183,504 212,526 228,877 All Other Outlets 542,211 555,559 575,804 579,353 715,998 767,406 773,622 741,580 1,570,546 1,677,671 Total $ 2,092,377 $ 2,259,430 $ 2,435,450 $ 2,567,125 $ 2,789,768 $ 2,958,527 $ 3,010,190 $ 2,430,202 $ 3,685,055 $ 3,966,274 Source: The HdL Companies
* The amounts reported are based on adjusted sales tax values and might fluctuate from what was reported the previous year.

TAXABLE SALES BY CATEGORY *

LAST TEN CALENDAR YEARS
(In thousands)

EXHIBIT A
422
City of Livermore
Direct and Overlapping Sales Tax Rates
Last Ten Fiscal Ye ars (In Percentage)

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
City Direct Rate 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% Alameda County 1.75% 2.25% (a) 2.25% 2.25% 2.25% 2.25% 2.25% 2.25% 3.25% (c) 3.25% State of California 6.25% 6.25% 6.25% 6.00% (b) 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% Total Rate 9.00% 9.50% 9.50% 9.25% 9.25% 9.25% 9.25% 9.25% 10.25% 10.25% (a) FY 2014-15 Alameda County rate increased by 0.50%
(b) FY 2016-17 State rate was reduced by 0.25%
(c) FY 2021-22 Alameda County rate increased by 1.00%
Direct and Overlapping Sales Tax Rates
Last Ten Fiscal Years
(In Percentage)

EXHIBIT A
423
City of Livermore
Principal Sales Tax Payers
Current Year and Ten Years Ago (In alphabetical Order)

2022 2013
AMS Net 7 Eleven
Audi Livermore Bridgelux
Bauer Compressors Coach/Kate Spade
Coach/Kate Spade Costco
Computacenter Fusionstorm Harris Rebar
Costco Home Depot
Gillig JA Momaney Services
Gucci Outlet Jifco
Home Depot Kaiser Pharmacy
JA Momaney Services Kate Spade
Jifco Livermore Ford/Lincoln/Alfa/Maserati
Land Rover Jaguar Livermore Livermore Honda/Subaru/Jag/Rover/Audi Livermore Ford/Lincoln/Alfa/Maserati Lowes
Livermore Honda Macpherson Western Tool Supply
Livermore Subaru Mobile Modular Management Corp
Livermore Toyota Porsche Livermore
Lowes Prada
Porsche Livermore Quik Stop Market
Safeway Fuel Safeway
Target Safeway Fuel
Tesla Motors Solar Universe
Toyota Material Handling Target
US Foodservice US Food Service
Walmart Walmart
Waxie Sanitary Supply Waxies
Source: HdL Company
Principal Sales Tax Payers
Current Year and Nine Years Ago
Data in Calendar Years
In Alphabetical Order

EXHIBIT A
424
City of Livermore
Assessed Value and Estimates Taxable Property
Last Ten Fiscal Years

Total Total
Taxable Direct
Common Public Unsecured Assessed Tax
Fiscal Year Property Utility Valuation Valuation Rate * 2013-2014 13,495,749,069 16,534,025 677,891,857 14,190,174,951 1.00% 2014-2015 14,441,874,348 15,920,292 618,857,248 15,076,651,888 1.00% 2015-2016 15,425,274,831 16,125,723 644,740,332 16,086,140,886 1.00% 2016-2017 16,462,710,778 16,036,533 669,293,841 17,148,041,152 1.00% 2017-2018 17,584,794,540 13,149,678 665,835,413 18,263,779,631 1.00% 2018-2019 18,716,232,125 13,261,314 742,728,963 19,472,222,402 1.00% 2019-2020 19,706,452,617 12,659,804 887,677,095 20,606,789,516 1.00% 2020-2021 20,739,018,910 12,463,593 890,242,048 21,641,724,551 1.00% 2021-2022 21,764,066,539 27,593,705 908,083,685 22,699,743,929 1.00% 2022-2023 22,988,612,094 27,850,904 958,541,900 23,975,004,898 1.00% Note:
* Direct tax rate is per $1,000 of assessed value.

Source: Alameda County Office of the Auditor-Controller.

Assessed Value and Estimated Taxable Property
Last Ten Fiscal Years
In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchese price of the property sold.

The assessed valuation data shown above represents the only data currently available with respect to the actual market value o
f taxable property and is subject to the limitations described above.

EXHIBIT A
425
City of Livermore
Direct and Overlapping Governments Property Tax Rates
Last Ten Fiscal Years

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Direct Rates:

City Direct Rate 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 Overlapping Rates (1):

Livermore Valley Joint Unified School District 0.0596 0.0497 0.0404 0.0886 0.0803 0.0771 0.0743 0.0691 0.0706 0.0638 Chabot Las Positas 0.0214 0.0217 0.0198 0.0246 0.0445 0.0443 0.0422 0.0214 0.0458 0.0388 Pleasanton Unified School District 0.0916 0.0695 0.0239 0.0224 0.0672 0.0640 0.0642 0.0580 0.0435 0.0422 Zone 7 Flood Control 0.0257 0.0250 0.0343 0.0333 0.0359 0.0332 0.0309 0.0309 0.0307 0.0279 Bay Area Rapid Transit 0.0075 0.0045 0.0026 0.0080 0.0084 0.0070 0.0120 0.0139 0.0060 0.014 East Bay Regional Park 0.0078 0.0085 0.0067 0.0032 0.0021 0.0057 0.0060 0.0014 0.0020 0.0058 County General Obligation Bond 0.0112 0.0108 0.0036 0.0041 0.0103 Total Direct and Overlapping Rate 1.2136 1.1789 1.1277 1.1801 1.2384 1.2425 1.2404 1.1983 1.2027 1.2028 Source: Alameda County Treasurer and Tax Collector.

Note:
(1) Overlapping rates are those of local and county governments that apply to property owners within the City of Livermore. Not all overlapping rates apply to all property owners. For an overlapping rate to apply, the property has to be located within that district's geographic boundary.

Direct and Overlapping Governments Property Tax Rates
(Rates per $1,000 of assessed value)
Last Ten Fiscal Years

EXHIBIT A
426
City of Livermore
Principal Property Taxpayers
Current Year and Nine Years Ago

Taxable Percentage Taxable Percentage
Assessed of Total City Assessed of Total City
Value Taxable Value Taxable
Secured/ Assessed Secured/ Assessed
Taxpayer Unsecured Rank Value Unsecured Rank Value
Livermore Premium Outlets LLC $234,142,865 1 0.98% $150,002,837 1 1.09% Livermore Oaks Joint Venture LLC 151,283,945 2 0.63% Longfellow Logistics Center LLC 140,156,160 3 0.59% Form Factor Inc 128,520,344 4 0.54% 118,042,990 2 0.86% Kaiser 117,136,798 5 0.49% 68,743,579 3 0.50% Arkay Properties LLC 109,324,867 6 0.46%
Comcast of Alameda Inc 92,200,500 7 0.39%
Jack London Blvd and Isabel Avenue LLC 85,421,466 8 0.36% Raintree Ironwood LLC 83,182,947 9 0.35%
Lam Research Corporations 79,215,300 10 0.33% RT Tri Valley LLC 52,415,500 4 0.38%
Marathon Drive Buildings LLC 51,363,270 5 0.37% Sutter Health 46,551,050 6 0.34%
Alere Home Monitoring Inc 44,633,685 7 0.32% BNP Paribas Leasing Corporation 41,393,752 8 0.30% Valley Care Senior Housing Inc 39,106,319 9 0.28% Bridgelux Inc 37,151,271 10 0.27%
Golden Bears LLC & Ellis Street Property 0.00%
1,220,585,192$ 5.12% 649,404,253$ 4.71%
Source: HdL Company
Principal Property Taxpayers
Current Year and Nine Years Ago
2023 2014

EXHIBIT A
427
City of Livermore
Property Tax Levies and Collections
Last Ten Fiscal Years

Fiscal
Year Taxes Levied Delinquent Delinquent Tax
Ended for the Percentage Property Taxes Collections
June 30, Fiscal Year Amount of Levy for the Fiscal Year (Refund) 2014 24,137,249$ (a) 23,526,725$ 97.47% 610,524$ 458,926$ (b) 2015 26,171,312 (a) 26,034,522 99.48% 136,790 (7,631) (b) 2016 27,839,513 (a) 27,718,828 99.57% 120,685 320,482 (b) 2017 29,014,829 (a) 28,341,709 97.68% 673,120 321,785 (b) 2018 31,087,296 (a) 30,559,069 98.30% 528,227 338,288 (b) 2019 33,273,066 (a) 32,570,581 97.89% 702,485 533,453 (b) 2020 35,368,204 (a) 34,740,288 98.22% 627,916 341,676 (b) 2021 36,930,452 (a) 36,077,734 97.69% 852,718 451,056 (b) 2022 38,114,809 (a) 37,598,776 98.65% 516,033 414,496 (b) 2023 41,369,080 (a) 40,870,045 98.79% 499,035 371,527 (b) Source: Alameda County Office of the Auditor-Controller and City of Livermore Finance Division (a) Taxes Levied include secured, unsecured, and estimated unitary tax.

Tax levies are net of payments for
- Educational Revenue Augmentation Fund.
- Redevelopment agencies for the fiscal years 2005-06 through 2011-12 - Redevelopment Property Tax Trust Fund (RPTTF) payments beginning from Fiscal year 2012-13. (b) Alameda County does not provide delinquent tax collection data by levy year, so the amounts shown in the delinquent tax collections column include delinquency collections for all prior years that were remitted to the City in each fiscal year.

Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the
Fiscal Year of the Levy

EXHIBIT A
428
City of Livermore
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years

Certificates Notes & Certificates Total Pe rcentage
Fiscal of Loans Capit al of Revenue State Capital Primary of Personal Per Year Participation Payable Leas e Participation Loans Loan Lease Government Income (1) Capita 2014 58,367,644$ 4,803,697$ 12, 654,274$ 15,589,104$ -$ -$ 847,354$ 92,262,073$ 5.9% 1,087 2015 64,032,534 3,970,233 11, 668,003 15,348,123 - - 740,467 95,759,360 6.6% 1,129 2016 60,193,384 2,566,738 11, 330,801 14,186,182 - - 619,257 88,896,362 5.5% 1,009 2017 56,386,950 2,440,343 10, 300,691 13,003,050 - - 512,946 82,643,980 7.5% 922 2018 53,758,606 1,793,715 9, 152,150 12,336,394 - - 392,972 77,433,837 8.5% 847 2019 54,295,394 1,667,320 8, 189,116 8,429,606 - - 321,293 72,902,729 9.8% 801 2020 50,854,698 1,540,562 7, 563,146 7,783,689 - - 296,702 68,038,797 11.3% 741 2021 50,270,524 1,417,955 6, 883,846 7,697,470 - - 270,016 66,539,811 13.1% 729 2022 46,998,880 818,197 6,148, 494 7,213,722 - - 241,127 61,420,420 0.7% 713 2023 84,295,830 727,439 5,354, 242 6,713,702 - - 209,925 97,301,138 1.8% 1,148 Note: Details regarding the city's outstanding debt can be found in the footnotes. (1) Personal income is income for Alameda County.

Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities Business-Type Activities

EXHIBIT A
429
City of Livermore
Direct and Overlapping Governmental Activities Debt
June 30, 2023

City Assessed Valuation, net of exemptions $24,093,397,298 Redevelopment Agency Incremental Valuation* -
Total Assessed Valuation 24,093,397,298$
Estimated
share of
Percentage Outstanding Overlapping
Governmental Unit Applicable (1) Debt 6/30/23 Debt
Overlapping Debt Repaid with Property Taxes:

Alameda County 6.429% $515,890,000 $33,166,568
Bay Area Rapid Transit District 2.529% 2,484,285,000 62,827,568 Chabot-Las Positas Community College District 15.504% 756,200,000 117,241,248 Livermore Valley Joint Unified School District 93.791% 237,660,000 222,903,691 East Bay Regional Park District 0.083% 175,955,000 146,043 City of Livermore Community Facilities District No. 99-1 100.000% 9,285,000 9,285,000 City of Livermore Community Facilities District No. 2009-1 I.A. No. 1 100.000% 16,354,648 16,354,648 City of Livermore Community Facilities District No. 2009-1 I.A. No. 2 100.000% 4,213,707 4,213,707 City of Livermore Community Facilities District No. 2009-1 I.A. No. 3 100.000% 2,447,036 2,447,036 City of Livermore Community Facilities District No. 2016-2 100.000% 8,160,000 8,160,000 City of Livermore 1915 Act Bonds 100.000% 1,837,000 1,837,000 CA Statewide Communities Development Authority Assessment District Bonds 100.000% 8,956,846 8,956,846 Total overlapping debt repaid with property taxes 4,221,244,237 487,539,355 Overlapping Other Debt:

Alameda County Gen. Fund Obligations & Coliseum Authority 6.429% 706,903,500 45,446,826 Tax Increment Debt (Successor Agency) 100.000% 15,780,000 15,780,000 Total overlapping other debt 722,683,500 61,226,826
Total overlapping debt 4,943,927,737$ 548,766,181 City of Livermore Certificate of Participation 83,400,002 City of Livermore Notes & Loans 727,439
City of Livermore Capital Leases 5,564,167
Total gross direct debt 89,691,608
Less: City of Livermore Obligations Supported by Rate Payers' Fees (5,966,177) Less: City of Livermore Obligations Funded by Grants Revenues (7,807,439) Total net direct debt 75,917,992
Total direct and overlapping debt 624,684,173$
Notes:
(1)
(2) Only includes the debt that is paid with property tax. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations * Redevelopment Agency was dissolved effective January 31, 2012, in accordance with Assembly Bill 1X 26.

Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the Direct and Overlapping Governmental Activities Debt
As of June 30, 2023
The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable pecentages 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.

EXHIBIT A
430
City of Livermore
Legal Debt Margin Information
Last Ten Fiscal Yea rs

Legal Debt Margin Calculation for Fiscal Year 2022-23
Common Property Assessed Valuation-Secured Roll $23,402,827,613 Government Code Sec. 43605 Debt Limit 15% of Assessed Valuation 3,510,424,142 Amount of debt applicable to the limit - Legal debt margin 3,510,424,142
Percent of debt limit authorized and issued 0.00%
2014 2015 2016 2 017 2018 2019 2020 2021 2022 2023
Debt limit 2,024,362,360$ 2,1 66,281,152$ 2,313,791,225$ 2,469,406,617$ 2,637,719,181$ 2,807,434,819$ 2,955,967,893$ 3,110,852,837$ 3,264,609,981$ 3,510,424,142$ Total net debt applicable to limit - - - - - - - - - - Legal debt margin 2,024,362,360$ 2,1 66,281,152$ 2,313,791,225$ 2,469,406,617$ 2,637,719,181$ 2,807,434,819$ 2,955,967,893$ 3,110,852,837$ 3,264,609,981$ 3,510,424,142$ Total net debt applicable to the limit
as a percentage of debt limit 0.00% 0.00 % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Source: City of Livermore Finance Division
Alameda County Office of the Auditor-Controller
Legal Debt Margin Information
Last Ten Fiscal Years

EXHIBIT A
431
City of Livermore
Demographic and Economic Statistics
Last Ten Fiscal Years

Livermore Total
Population Personal
Unemployment
Rate (3)
(1) Income (3)
2013 84,852 Est. 3,421,148 40,319 3.7% 2014 84,815 Est. 3,480,129 41,032 4.0% 2015 88,138 Est. 3,573,663 40,546 6.2% 2016 89,648 Est. 3,675,152 40,995 2.9% 2017 91,411 Est. 3,
883,413 42,482 2.3%
2018 91,039 Est. 4,226,619 46,426 2.5% 2019 91,861 Est. 4,493,228 48,913 2.5% 2020 91,216 Est. 4,916,696 53,901 7.2% 2021 86,149 Est. 5,313,309 61,675 4.6% 2022 84,793 Est. 5,501,069 64,876 2.6% Note:

1. 2.

3. Year
Alameda
County (2)
Data Source: State of California, Department of Finance Data Source: Bureau of Labor Statistics
Data Source: U.S. Department of Commerce, Bureau of Economic Analysis, Regional Economic Accounts, Local Area Personal Income. County income estimates are not currently available after 2020.

Income
Demographic and Economic Statistics
Last Ten Calendar Years
Per Capita
Personal

EXHIBIT A
432
City of Livermore
Population Demographics
June 30, 2023

Number
Percent of
Population
Under 5 years 3,646 4.3%
5 to 9 years 5,624 6.6%
10 to 14 years 5,416 6.4%
15 to 19 years 5,328 6.3%
20 to 24 years 3,707 4.4%
25 to 29 years 3,817 4.5%
30 to 34 years 7,139 8.4%
35 to 39 years 6,041 7.1%
40 to 44 years 6,078 7.2%
45 to 49 years 6,315 7.5%
50 to 54 years 6,690 7.9%
55 to 59 years 5,426 6.4%
60 to 64 years 4,769 5.6%
65 to 69 years 4,337 5.1%
70 to 74 years 3,466 4.1%
75 to 79 years 3,465 4.1%
80 to 84 years 1,388 1.6%
85 years and over 2,070 2.4%
Total Population 84,722 100.0%
Population Demographics(1)
Age

EXHIBIT A
433
City of Livermore
Principal Employers
Current Year and Nine Years Ago

Percentage Percentage
of Total City of Total City
Employer Employees Rank Emplo yment Employees Rank Employment Lawrence Livermore National Lab 9,291 1 17.21% 5,723 1 16. 49% Sandia National Lab 1,842 2 3.41% 1,139 2 3. 28% Livermore Valley Joint Unified School District 1,380 3 2.56% 1,236 3 3. 56% Lam Research 1,055 4 1.95%
Form Factor 825 5 1.53% 833 5 2.40% Kaiser Permanente 813 6 1.51% 850 4 2.45% GILLIG 640 7 1.19%
US Foodservice Inc 562 8 1.04%
Topcon Positioning Systems 410 9 0.76% Las Positas College 305 10 0.56% 463 9 1.33% Comcast 500 6 1.44%
Wente 736 7 2.12%
Livermore Area Recreation and Parks District 501 8 1.44% Valley Care Health Systems 432 10 1.24%

31.72% 35.75%
* Estimated
Source: City of Livermore Office of Innovation and Economic Development U.S. Bureau of Labor Statistics
2023 2013
Current Year and Nine Years Ago
Principal Employers

EXHIBIT A
434
City of Livermore
Full-Time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function/Program
General government
Administrative Services 1,4 31.75 31.75 32.50 33.50 35.50 39.25 38.25 39.25 39.25 35.25 City Manager 2 7.00 7.00 7.00 6.00 7.00 7.00 7.00 7.00 7.00 12.00 City Attorney 8.00 8.00 8.50 8.50 8.50 8.50 9.00 9.00 9.00 9.00 Police 4 140.75 141.75 141.75 142.75 141.75 145.00 145.50 145.50 145.50 147.25 Public Works 42.70 42.70 41.45 43.80 43.80 45.50 45.50 45.50 45.50 45.50 Community Development 63.50 63.50 63.50 64.50 66.50 66.50 68.50 68.50 67.50 67.50 Economic Development 3 - - - 3.00 3.00 3.00 4.00 4.00 4.00 4.00 Library 28.00 28.00 28.00 27.00 27.00 27.00 27.35 27.35 27.35 27.88 Airport 8.00 8.00 8.00 8.00 8.00 8.00 8.50 8.50 8.50 8.50 Water 15.00 15.00 15.00 13.75 13.75 10.00 11.00 10.00 10.00 10.00 Sewer 48.50 48.50 48.50 49.50 49.50 49.50 49.50 50.50 50.50 51.50 Las Positas Golf Course 0.80 0.80 0.80 0.70 0.70 - - - - - Total 394.00 395.00 395.00 401.00 405.00 409.25 414.10 415.10 414.10 418.38 Notes:

1. Administrative Services was created in fiscal year 2010 and includes Human Resources, Finance and Information Technology employees. Starting in FY17, includes City Clerk employees. Prior years' data is added to Administrative Services for comparison purposes.

2. Prior to fiscal year 2010, City Manager included Information Technology employees.

3. In fiscal year 2011, Redevelopment employees are included in Community Development.

3. In fiscal years 2014-2016, Economic Development employees are included in Community Development.

4. Starting in FY18, two police Information Technology employees are included in Administrative Services.

6. Fire safety services are provided by Livermore-Pleasanton Fire Department, a JPA.

Full-time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years

EXHIBIT A
435
City of Livermore
Capital Assets Statistics by Function/Program
Last Ten Fiscal Years

Function/Program 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Police
Stations 1 1 1 1 1 1 1 1 1 1 Patrol units 58 57 58 59 63 61 63 61 65 64 Fire stations 5 5 5 5 5 5 5 5 5 5 Public Works
Streets (centerline miles) 306 306 308 306 308 308 308 308 310 360 Streetlights 7,382 7,382 7,382 7,500 7,500 7,500 7,500 7,500 7,526 10,212 Traffic Signals 111 104 105 106 106 106 108 114 112 114 Enhanced Crosswalks 10 11 15 17 17 17 22 24 24 24 Las Positas Municipal Golf Course 2
Total acreage 195 195 195 195 195 195 195 195 195 195 Length of 18-hole course in yards 6,723 6,723 6,723 6,723 6,723 6,723 6,723 6,723 6,723 6,723 Length of 9-hole executive course in yards 1,133 1,133 1,133 1,133 1,133 1,133 1,133 1,133 1,133 1,133 Water
Water mains (miles)
Potable water 147 148 148 148 151 162 162 162 163 163 Recycled water 23 21 21 21 21 20 20 20 20 20 Fire hydrants 1,560 1,487 1,495 1,516 1,548 1,550 1,559 1,567 1,567 1,568 Fire hydrants (recycled) 160 121 122 122 121 120 120 120 120 125 Wastewater
Sanitary sewers (miles) 295 297 297 297 302 304 304 304 304 305 Storm sewers (miles) 210 214 214 214 224 226 226 226 226 226 Treatment capacity (millions of gallons) 9 9 9 9 9 9 9 9 9 9 Municipal Airport
Length of longest runway in feet 5,253 5,253 5,253 5,253 5,253 5,253 5,253 5,253 5,253 5,253 Length of longest taxiway in feet 5,720 5,720 5,720 5,720 5,720 5,720 5,720 5,720 5,720 5,720 Total acreage 644 644 644 644 644 644 644 644 644 644 Number of hangars 393 393 393 393 393 393 393 393 393 393 * No data available
Sources: Various city departments.
9/6/12: The 9-hole Executive Course was closed as of July 1, 2011 and re-opened as a 9-hole Par 3 Course on May 17, 2012. 1/24/12: Measurement is in centerline miles.
(1) Springtown Golf Course has closed. The City has asked the Livermore Area Recreation and Park District to lead the Springtown Open Space Master Plan process.
(2) Las Positas Golf Course ceased as an enterprise fund in February 2019. The City Of Livermore has leased the golf course to a private management company.

Capital Asset Statistics by Function/Program
Last Ten Fiscal Years

EXHIBIT A
436
City of Livermore
Operating Indicators by Function/Program
Last Ten Fiscal Years

Function/Program 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Police
Physical arrests 2,613 2,323 2,781 2,278 3,034 3,502 2,922 2,168 1,726 1,712 Parking violations 1,056 1,613 1,708 2,021 2,269 2,819 2,736 1,482 1,431 1,000 Traffic violations 7,114 6,813 5,142 4,540 5,344 8,620 8,576 5,531 4,060 3,425 Fire
Emergency responses 6,664 6,777 7,233 7,620 7,539 7,536 7,610 7,700 8,329 16,577 Fires extinguished 221 192 210 210 227 218 239 322 291 454 Inspections (1) 453 505 1,195 1,411 1,013 810 839 849 605 568 Annual fire inspection program 529 594 541 624 674 602 712 74 545 986 Public Works
Street resurfacing (centerline miles) 3.8 4.1 3.3 - - - 3.6 1.4 - - Potholes repaired 190 653 504 1,347 969 1,152 858 639 700 2,030 Maintenance of Landscaping (acres) 316 320 329 330 334 338 340 350 350 350 Library
Volumes in collection 255,333 (2) 261,818 281,469 276,849 268,154 (5) 267,319 266,803 270,155 275,662 268,964 Total volumes borrowed 849,145 777,970 762,939 762,304 753,072 760,960 540,073 (7) 249,348 (7) 685,183 '(8) 873,274 '(8) Community Development
Building permits issued NA NA NA 3,694 4,086 3,755 3,729 5,948 - 4,663 Water
New connections 32 52 200 232 120 89 57 27 1 3 Water mains breaks 1 1 3 3 - - - - - 1 Other water breaks & leaks 14 14 18 19 16 30 17 31 29 22 Average Daily Consumption
Potable water (millions of gallons) 5.50 4.20 4.10 4.40 4.80 5.20 5.40 5.50 5.40 4.80 Recycled water (millions of gallons) 1.85 2.04 2.02 1.70 1.84 1.91 1.88 2.00 1.85 1.40 Peak daily consumption - potable 9.30 9.10 8.80 9.00 9.50 10.10 10.20 10.40 10.30 9.50 (millions of gallons)
Wastewater
Average daily sewage treatment 6.60 6.10 5.90 5.80 5.80 5.60 5.50 5.50 5.30 5.30 (millions of gallons)
New connections 190 389 659 311 385 347 200 286 96 231 Municipal Airport
Number of tenant aircraft 517 508 503 507 512 495 487 497 466 454 Total landings & takeoffs 160,733 122,140 121,050 117,834 146,988 156,405 148,568 170,707 (7) 195,952 184,527 Gallons of fuel pumped 734,597 644,617 281,288 - (4) - (4) - (4) - (4) - (4) - (4) - Las Positas Municipal Golf Course
Rounds Played 77,408 69,387 66,711 58,982 61,418 N/A -6 N/A (6) N/A (6) N/A (6) N/A Springtown Municipal Golf Course
Rounds Played 19,583 N/A (3) N/A (3) N/A (3) N/A (3) N/A (3) N/A (3) N/A (3) N/A (3) N/A (1) Data is reported on a fiscal year basis.
(8) 600,531 physical + 84,652 digital checkouts
NA Data not available.

Source: Various city departments.
(7) Reduction due to COVID-19 shelter in place order that began in mid-March 2020. (2) In FY 13/14, the City added 28,000 new volumes to the Library Collection, and removed items that were outdated or in poor condition, consequently the overall number decreased. (3) Springtown Golf Course closed in October 2015. The City Of Livermore has asked the Livermore Area Recreation & Park District to lead the Springtown Open Space Master Plan process.

Operating Indicators by Function/Program
Last Ten Fiscal Years (1)
(4) Starting 11/25/2015, fuel was transitioned to Five Rivers Aviation. (5) Volume decreased due to removal of outdated materials. (6) Las Positas Golf Course ceased as an enterprise fund in February 2019. The City Of Livermore has leased the golf course to a private management company.

EXHIBIT A
437
City of Livermore
Water and Sewer Rates
Year Ended June 30, 2023

The monthly residential water bill for a customer using 10 CCF of water per month with a 5/8" meter would be $87.96.

Meter Size (inches)
City Service
Meter Charge
Flat Rate
Alameda
County Zone 7
Meter Charge
Flat Rate
Total Meter
Charge
5/8" (0.625) $22.92 $27.04 $49.96
3/4" (0.75) 30.22 40.56 70.78 Billing Type Monthly Charge 1" with Fire Line 22.92 27.04 49.96 Single Family per Dwelling Unit $64.98 1" 44.81 67.60 112.41 Multi-Family per Dwelling Unit 53.17 1 1/2" Displacement 81.28 135.20 216.48 1 1/2" Turbine 95.87 162.24 258.11 Commercial 2" Displacement 125.05 216.32 341.37 2" Turbine 146.94 256.88 403.82 Billing Type Monthly Charge 3" Turbine 325.67 588.12 913.79 Fixed Charge: Flat Rate $29.40 4" Turbine 555.46 1,014.00 1,569.46
6" Turbine 1,175.53 2,163.20 3,338.73 Variable Charge: Winter Water Use 8" 2,050.93 3,785.60 5,836.53 Billing Type Monthly Charge (Monthly + 10%) 1 10" 3,072.23 5,678.40 8,750.63 Auto Steam Cleaning per 100 Cubic ft. n/a n/a 5/8" Fire Line 1.27 exempt 1.27 Bakeries per 100 Cubic ft. 11.05 $12.16 3/4" Fire Line 1.52 exempt 1.52 Commercial Laundries per 100 Cubic ft. 6.88 $7.57 1" Fire Line 2.02 exempt 2.02 Markets per 100 Cubic ft. 11.08 $12.19 1 1/2" Fire Line 3.03 exempt 3.03 Mortuaries per 100 Cubic ft. 11.08 $12.19 2" Fire Line 4.04 exempt 4.04 Restaurants per 100 Cubic ft. 11.05 $12.16 3" Fire Line 6.06 exempt 6.06 All Other per 100 Cubic ft. 4.91 $5.40 4" Fire Line 8.08 exempt 8.08
6" Fire Line 12.12 exempt 12.12 Institutional:
8" Fire Line 16.16 exempt 16.16 Schools per 100 Cubic ft. 4.78 $5.26 10" Fire Line 20.2 exempt 20.2 All Other - Institution per 100 Cubic ft. 4.78 $5.26 Water and Sewer Rates
For Year Ended June 30, 2023
Customers in the City's Water service area are billed monthly with rates shown below. The rates provided are those in effect as of June 30, 2023. Residential sewer customers are billed via their property tax bill while Commercial customers are billed monthly.

Water Sewer
Residential

EXHIBIT A
438
City of Livermore
Water System – Revenues by Class of User
June 30, 2023

Water Usage Cost Per Unit:

City Distribution Zone 7 Total
Cost Wholesale Cost Variable Cost
Residential:

Single Family Tier 1 (1-7 $1.35 2.27 3.62 Single Family Tier 2 (8+ $1.95 2.27 4.22 Multi-Family 1.580 2.270 3.85 Commercial, Institution, Hydrant (potable) & Public Agency:

All Units 1.550 2.270 3.82
Irrigation
All Units 1.760 2.27 4.03
Recycled Water:

All Units 2.74 $ - 2.74
1 Winter Water Use amount is the average consumption during Winter months multiplied by the Normal Monthly rate with an additional 10% service fee to the normal rate.

Water and Sewer Rates
For Year Ended June 30, 2023
Water Sewer

Fiscal Year Percentage of
User Class Revenues Revenues
Residential 24,750,546$ 83.7%
Commercial/Industrial 4,810,955 16.3%
Total 29,561,501$ 100%
Livermore Sewer System
Revenues by Class of User
Fiscal Year 2022-23

EXHIBIT A
439
City of Livermore
Sewer Connection Fees
June 30, 2023

Effective Date July 1, 2023
Flow/Volume 2022
Residential User Type in mg DUEs Connections
Single Family Residential 3.00 1,077 23,979 7,966.31$ Condominiums/Multiple Family
Residential 0.34 316 9,144
Commercial/Institutional 0.52 556 1,068 4,204.44$ Total Users 3.86 1,949 34,191 4,735.53
6,107.50
6,948.39
7,966.31
Auto Repair 4.87$
Assembly Facilities 6.64
Eating/drinking w/o cooking 15.49
Gas Stations 20.80
General Use 1.77
Gyms, Health Clubs 13.28
Hotels, Motels (excluding dining facilites) 6.64
Markets 8.41
Mixed use 4.43
Medical/Dental Office/Clinic 9.74
Restaurants 35.87
Warehouse 0.44
Industrial
F = Flow cost $/gpd 34.28$
B = BOD cost $/lb-day 2,981.54
S = SS cost $/lb-day 1,213.68
As of June 30, 2023
Sewer Connection Fees Livermore Sewer System
City of Livermore Number of Dwelling Unit Equivalents and Connections by Classification of User
Four Bedroom
Note: DUE calculations were revised for FY2019/20 to ensure that 1 DUE is equal to the average wastewater generated by a single family home.Commercial (BOD & SS = 285 mg/L, unless otherwise shown)
The declines in Single Family parcels was caused by the reclassification of certain Single Family Residential parcels in FY 2019-20 as Multi-Family Residential due to a use code charge at the Alameda County level.

Single Family
Multi-Family
Studio
One Bedroom
Two Bedroom Note: Commercial Connection data prior to FY 2016/17 included double-counting of some accounts. Revised, lower numbers do not indicate a loss of commercial customers. Reduction Three Bedroom

EXHIBIT A
440
City of Livermore
Sewer System – Summary of Historical Operating Results
Fiscal Year Ended June 30

Audited Audited Audite d Audited Audited Audited Audited Audited Audited Audited 2014(5) 2015 2016 2017(5) 2018 2019 2020 2021 2022 2023 Gross Revenues
Charges for services $ 18,611,369 $ 18,264,709 $ 18, 901,732 $ 20,388,467 $ 21,341,703 $ 22,920,343 $ 24,503,188 $ 25,500,934 $ 27,646,105 $ 29,561,501 Connection Fees 922,479 1,857,287 3, 677,231 1,834,854 2,477,971 2,311,224 1,341,958 1,966,329 689,915 518,366 Investment Income (Loss) 552,475 306,248 834,666 178,872 395,756 1,783,751 1,955,582 234,858 (2,091,441) 222,433 Other Revenue(4) 72,686 211,846 59,991 50,147 33,205 20,806 32,390 73,041 53,414 63,271 Total Gross Revenues 20,159,009 20,640,090 23, 473,620 22,452,340 24,248,635 27,036,124 27,833,118 27,775,162 26,297,993 30,365,571 Maintenance & Operations Costs(2) 14,477,020 14,871,652 17,392,930 15,784,287 15,982,653 18,020,641 18,480,604 17,778,653 17,565,418 18,704,407 LAVWMA Net Revenues 5,681,989 5,768,438 6, 080,690 6,668,053 8,265,982 9,015,483 9,352,514 9,996,509 8,732,575 11,661,164 Other Livermore Obligations
1994 State Loan Payments(3) 835,725 - - - - - - - - - Net Revenue minus Obligations(3) 4,846,264 5,768,438 6,080,690 6,668,053 8,265,982 9,015,483 9,352,514 9,996,509 8,732,575 11,661,164 Share of LAVWMA Debt Service
Rehabilitation Project 973,529 974,153 973,711 973,985 974,289 973,970 974,183 974,244 910,398 808,700 Expansion Project 1,252,868 1,253,670 1, 253,103 1,253,455 1,253,847 1,253,436 1,253,710 1,253,788 1,171,623 1,040,744 Total LAVWMA Debt Service $ 2,226,397 $ 2,227,823 $ 2, 226,814 $ 2,227,440 $ 2,228,136 $ 2,227,406 $ 2,227,893 $ 2,228,032 $ 2,082,021 $ 1,849,444 LAVWMA Debt Service Coverage 2.18 2.59 2.73 2.99x 3. 71x 4.05x 4.2x 4.49x 4.19x 6.31x Net Revenues Available after
Obligations/LAVWMA 2,619,867 $ 3,540,615 $ 3,853,876 $ 4, 440,613 $ 6,037,846 $ 6,788,077 $ 7,124,621 $ 7,768,477 $ 6,650,554 $ 9,811,720 (1) Balances are derived from the Livermore audited financial statements. (4) Includes Operating Transfers in, if any.
(2) M&O excludes depreciation and debt service. M&O includes Payments to LAVWMA for LAVWMA Maintenance and Operation Costs. See “SECURITY FOR THE 2021 BONDS.” Includes Operating (3) Reflects Net Revenues remaining after payment of debt service on Livermore’s Obligations. (5) In fiscal year 2016-17, Stormwater activities were reported together with Sewer activities, but were approximately 5% fo total gross revenues. Stormwater revenues are not pledged to the 2021 Bonds. Starting in fiscal year 2017-18, Stormwater activites are reported seperately from Sewer.

Livermore Sewer System
Summary of Historical Operating Results (1)
Fiscal Year Ended June 30

EXHIBIT A
441
City of Livermore
Schedule of Insurance
June 30, 2023

COVERAGE BROKER COVERAGE POLICY NO LIMITS TERM
General/Auto Liability Primary Layer City of Livermore - Self Insured Retention
Not applicable $750,000 Self Insured Retention. 7/1/22-6/30/23 General/Auto Liability Excess
Coverage First Layer
California Joint Powers Risk
Management Authority (CJPRMA)
Bodily Injury, Property Damage, Personal Injury, Public Officials Errors & Omissions, Employment Practices, Mold, Sexual Abuse at day care, terrorism, Pollution
2022-2023 MOC CJPRMA jointly indemnifies members from SIR to $7.5M
7/1/22-6/30/23
General/Auto Liability Excess Coverage
Second Layer
Alliant - Munich Re
A.M. Best Rating A+:XV
Following CJPRMA Memorandum of Coverage 152376-3019263-2022 $5,000,000 per occurrence excess of $7,500,000 per occurrence retention for Bodily Injury /
Property Damage / Personal Injury / Public
Officials E&O
7/1/22-6/30/23
General/Auto Liability Excess Coverage
Third Layer
Applied
A.M. Best Rating A:XV
Following CJPRMA Memorandum of Coverage CI21NPX-01042-02 $2,500,000 per occurrence excess of $12,500,000 per occurrence retention for Bodily
Injury / Property Damage / Personal Injury /
Public Officials E&O
7/1/22-6/30/23
General/Auto Liability Excess Coverage
Fourth Layer
Everest Re
A.M. Best Rating A+:XV
Following CJPRMA Memorandum of Coverage FC10045252-2022 $5,000,000 per occurrence excess of $15,000,000 per pccurrence retention for Bodily
Injury / Property Damage / Personal Injury /
Public Officials E&O
7/1/22-6/30/23
General/Auto Liability Excess Coverage
Fifth Layer
Chubb
+A.M. Best Rating A++:XV
Following CJPRMA Memorandum of Coverage G71816370003 $5,000,000 per occurrence excess of $20,000,000 per pccurrence retention for Bodily
Injury / Property Damage / Personal Injury /
Public Officials E&O
7/1/22-6/30/23
Genera/Auto Liability Excess Coverage
Sixth Layer
Scor Reinsurance Company
A.M. Best Rating A-:XV
Following CJPRMA Memorandum of Coverage FA0090560-2022-1 $7,500,000 excess of $25,000,000 7/1/22-6/30/23 Genera/Auto Liability Excess Coverage
Seventh Layer
AWAC
A.M. Best Rating A:XV
Following CJPRMA Memorandum of Coverage 0312-9438 $7,500,000 excess of $32,500,000 7/1/22-6/ 30/23 Commercial Property Lloyd's of London Real and Personal Property / Business Interruption / Extra Expense / Rental Coverage, Excluding Earthquake and Flood
Lloyds - B0180PJ1900047 Primary Property Limit: $400,000,000 Deductible $250,000
$500,000 for Wildfire
$1,000,000 Flood Zones A & V
7/1/22-6/30/23
APIP Coverage is on a replacement cost basis. APIP - 35-JPA/Pools 2 *Boiler and Machinery
included in property program
APIP/
Travelers Boiler & Machinery
APIP 35-JPA/Pools 2
Travelers
$100,000,000 7/1/22-6/30/23
Pollution Ironshore Specialty Insurance
Company
Claims Made and Reported Pollution Liability ISPILLSCAUNR002 $3,000,000 per occurrence $3,000,000 aggregate with $75,000 deductible
7/1/22-6/30/23
Pollution APIP/Ironshore Claims Made and Reported Pollution Liability APIP 35-JPA/Pools 2 $2,000,000 per occurrence $25,000,000 aggregate (all insureds combined)
7/1/22-6/30/23
Aircraft Policy - Drones Starr Indemnity & Liability
Company
Hull and Liability coverage for reported drones to CJPRMA 1000233406-06 $5,000,000 Combine Single Limit for BI & PD - No Deductible
7/1/22-6/30/23
Cyber Liability APIP/Beazley Information security & privacy insurance with electronic media liability coverage
B0180FN2105500 $2,000,000 per member; $25,000,000
aggregate. Deductible is $100,000.
7/1/22-6/30/23
Excess Cyber Ironshore Information security & privacy insurance with electronic media liability coverage
EO5SACA0QX001 $2,000,000 excess of $2,000,000 per member, $3,000,000 x $40,000,000 aggregate
7/1/22-6/30/23
SCHEDULE OF INSURANCE AS OF JUNE 30, 2023

EXHIBIT A
442
City of Livermore
Schedule of Insurance
June 30, 2023

COVERAGE BROKER COVERAGE POLIC Y NO LIMITS TERM
Excess Cyber Tokio Marine HCC Information security & privacy insurance with electronic media liability coverage
H22CXS20777-00 $1,000,000 each claim/ $1,000,000 aggregate, $4,000,000 each claim/$43,000,000 aggregate
7/1/22-6/30/23
Deadly Weapon Respsonse Program APIP/Lloyds Claims Made and Reported PJ22000500004 $500,000 per occurrence & aggregate $2,500,000 deductible
7/1/22-6/30/23
Auto Physical Damage Hanover - Inland Marine Auto physical damage coverage for city-owned vehicles IM441-1075 01 09 Per occurrence limit: $10,000,000 $10,000 deductible with replacement value as
scheduled
7/1/22-6/30/23
EPL sublimit $12.5M. This is $7.5M CJPRMA
retention and $5M with Munich. Retained
$5M aggregate with Munich.

Subsidence sublimit changed
$7.5M. This reflects CJPRMA
increased retention. No coverage in
reinsu
rance.

Communicable disease sublimit of $7.5M added. This reflects coverage in CJPRMA retention. Not excluded in CJPRMA. No coverage in reinsurance.

Fungal pathogens sublimit
$12.5M. This is $7.5M
CJPRMA retention and $5M
with
Munich. Retained $5M
aggregate with Munich.

Sexual abuse in daycare operations $12.5M.

This is $7.5M CJPRMA retention and $5M with
Munich. Kept $5M aggregate with Munich.

Terrorism sublimit $12.5M. This
is $7.5M CJPRMA retention and
$5M with Munich. Retained $5M
aggreg
ate with Munich.

Three other sublimits increased from $5M to
$7.5M. No reinsurance for these. These are
airport public officials error and omissions
and so
me pollution items These are all as
exception to exclusions. Exclusion #2 &
Exclusion #27.

Fiduciary AON/Travelers 457 Governmental money purchase plan and trust. 106945404 $1,000,000 for all claims, $100,000 for each settlement program notice.
7/1/22-6/30/23
DIC (Difference in Conditions) Earthquake
and Flood
AON - ACE: Westchester Surplus
Lines Insurance
Property coverage per schedule for damage from Earthquake or Flood as excluded from Property Program.

D3740021A011 $5,000,000 per occurrence with $5,000,000
annual aggregate; deductible is $25,000 for
flood; 10% of the separate insurable value
subj
ect to a minimum of $100,000 per
occurrence
7/1/22-6/30/23
DIC (Difference in Conditions) Earthquake
and Flood (Excess)
AON - Evanston Insurance Company Property coverage per schedule for damage from Earthquake or Flood as excluded from Property Program.

MKLV5XPR000359 Additional $5,000,000 coverage 7/1/22-6/30/23 DIC (Difference in Conditions) Earthquake
and Flood (Excess)
AON - Arch Specialty
Insurance
Company
Property coverage per schedule for damage from Earthquake or Flood as excluded from Property Program.

ESP100342302 Additional $5,000,000 coverage 7/1/22-6/30/23 Public Employee Blanket Bond
(Crime/Fidelity)
AON – Great American
Insurance Group
Faithful performance, any dishonest act, including forgery, alteration, & theft
GVT05217780900 Deductible is $10,000 per loss 7/1/22-6/30/23 Covers all employees statutorily required to maintain bonding. Coverage is $500,000 per loss Airport Liability AON/Old Republic Insurance Co. Airport liability / Hangerkeeper’s / Advertising / Vehicles / Non- owned aircraft / Fire Legal Liability / Products and Completed Operations / Premises
PR00269705 $75,000,000 per occurrence with $0 deductible; $4M Excess of $1M for airport owned vehicles
off site
7/1/22-6/30/23
Workers’ Compensation and Employer
Liability Primary Layer
City of Livermore - Self Insured
Retention
State Mandated workers’ compensation coverage for miscellaneous and safety member employees, including volunteers. Also covers employer liability not covered under statutory workers’ comp
ensation coverage.

Not applicable Self Insured retention of $500,000 7/1/22-6/30/23 Workers’ Compensation and Employer
Liability Excess Coverage First Layer
Local Agency Workers’
Compensation Excess Joint Powers
Authority (LAWCX)
State mandated workers’ compensation coverage for miscellaneous and safety member employees, including volunteers. Also covers employer liability not covered under statutory workers’ comp
ensation coverage.

LAWCX 22.23 $5 million in excess of SIR of $500,000 per claim 7/1/22-6/30/23 Worker’s Compensation and Employer
Liability Reinsurance and Excess Coverage
Second Layer
PRISM, Reinsurance from ACE
American Insurance Co.

State mandated workers’ compensation coverage for miscellaneous and safety member employees, including volunteers. Also covers employer liability not covered under statutory workers’ comp
ensation coverage.

PRISM PE 22 EWC-32 $50,000,000 each accident/each employee (Difference between $50,000,000 and the
individual member’s retention)
7/1/22-6/30/23
SCHEDULE OF INSURANCE AS OF JUNE 30, 2023

EXHIBIT A
443
City of Livermore
Redevelopment Project – Historical Tax Revenues
Last Ten Fiscal Years

Category FY2015-16 FY2016-17 FY2017-18 FY2018-19 FY2019-20 FY2020-21 FY2021-22 Secured Assessed Values 605,121,061$ 669,402,838$ 724,912,255$ 758,981,194$ 791,094,983$ 822,520,189$ 850,789,180$ Unsecured Assessed Values 48,359,416 53,829,143 50,958,223 45,926,379 35,085,427 51,529,379 62,774,541 Total Assessed Values 653,480,477 723,231,981 775,870,478 804,907,573 826,180,410 874,049,568 913,563,721 Percentage Change 7.44% 10.67% 7.28% 3.74% 2. 64% 5.79% 4.52% Base Year Assessed Values 70,060,057$ 70,060,057$ 70,060,057$ 70,060,057$ 70,060,057$ 70,060,057$ 70,060,057$ Incremental Assessed Values 583,420,420 653,271,924 705,810,421 734,847,516 756,120,353 803,989,511 844,092,046 Gross Tax Increment Revenue 6,058,269 6,874,820 7,445,163 7,580,878 7,803,155 8,120,693 8,450,605 Unitary Tax Revenues 22,544 20,139 26, 881 33,058 34,184 34,184 295,127 Gross Revenues 6,080,813 6,894,959 7,472,044 7,613,936 7,837,339 8,154,877 8,745,732 Adjustments to Gross Revenues:

County Administrative Fees 43,624 46,546 48, 779 58,375 52,352 53,869 53,438 Sections 33676 Payments 2,407 2,500 2, 620 2,742 2,867 2,994 3,114 Tax Revenues 6,034,782$ 6,845,913$ 7,420,645$ 7,552,819$ 7,782,120$ 8,098,014$ 8,689,180$ Negotiation Pass-Through Payments 1,081,931 1,199,765 1,296,935 1,313,615 1,358,458 1,410,293 1,469,000 Statutory Pass-Through Payments 271,154 375,440 449, 671 451,116 497,712 541,976 643,000 Net Tax Increment Revenues 4,681,697$ 5,270,708$ 5,674,039$ 5,788,088$ 5,925,950$ 6,145,745$ 6,577,180$ Source: The HDL Companies
1) Secured values include state assessed non-unitary utility property 2) Represents section 33676 payments to the Bart, the Abatement District, the Community College and the Flood Control District 3)
4)
5) Starting in FY21-22 Supplemental Tax Increment was added to the Unitary Tax Increment line. Before FY 21-22, only Unitary tax was included.

Represents payments pursuant to the Pass-Through Agreements. Such payments were not subordinate to the payment of debt service on the 2001 Bonds but, because such payments are subordinate to the payment of debt service on the 2016 Bonds, are shown as such for purposes of showing historical Tax Revenues.

Represents statutory pass-through payments with respect to the Project Area required pursuant to AB 1290. Such payments were not subordinate to the payment of debt service on the 2016 Bonds, are shown as such for purposes of showing historical Tax Revenues Livermore Successor Agency to the Former Redevelopment Agency Redevelopment Project
Historical Tax Revenues

EXHIBIT A
444
City of Livermore
Redevelopment Project – Ten Largest Taxable Property Owners Last Ten Fiscal Years

Total % of Total % of
FY 2022-23 Assessed Incremental
Assessee Land Use Assessed Value Value Value
ValleyCare Senior Housing Inc. Assisted Care Senior Housing Development $60,654,395 5.89% 6.32% Sequoia Equities Mill Springs Mill Springs Park Apartments 54,063,014 5.25% 5.64% Hospital Comm Livermore Pleas Areas (1) Stanford Valleycare Medical Offices/Facilities 51,868,296 5.04% 5.41% Livermore Mutifamily Owner LLC Orchard Hardware / Safeway Retail Center 44,786,023 4.35% 4.67% Dorothy J. Anderson Trust Orchard Hardware / Safeway Retail Center 39,915,926 3.88% 4.16% Comcast of California Cable Television/Internet Facilities 38,727,700 3.76% 4.04% Maroon Bear 2 LP Commercial Center - Livermore Ave at 1st Street 33,233,743 3.23% 3.47% 35 Fenton Street LLC (1) The Watermark - Assisted Living 23,556,000 2.29% 2.46% Serra LLC (1) Walgreens Pharmacy - 1st Street & SP Street 15,895,875 1.54% 1.66% Livermore Valley Performing Arts Center 13,835,125 1.34% 1.44% Top Ten Total 376,536,097$ 36.57% 39.27%
Tota
l FY 2022-23 Assessed Valuation $1,029,171,954 100.00%
Total FY 2022-23 Incremental Assessed Valuation $959,111,897 100.00% Source: The HDL Companies
1) Taxpayers have pending assessment appeals with respect to property within the Project Area.

Livermore Successor Agency to the Former Redevelopment Agency Redevelopment Project
Ten Largest Taxable Property Owners

Total No. of No. of No. of Value of
Appeals Resolved Successful Average Appeals Appeals
Filed Appeals Appeals AV Reduction Pending Pending
52 21 3 15.50% 31 $144,643,529
Appeals for FY 2015-16 to FY 2021-22
Livermore Successor Agency to the Former Redevelopment Agency Assessment Appeals

EXHIBIT A
445
City of Livermore
Redevelopment Project – Actual and Projected Tax Revenues and Debt Service Coverage Last Ten Fiscal Years

Debt Service Debt
Gross Tax SB 2557 Section 33676 on 2016 Service
Fiscal Year Revenues Charge Payments Tax Revenues Bonds Coverage 2016-17 6,894,959$ (46,546)$ (2,500)$ 6,845,913$ 2,151,702$ 3.18 2017-18 7,472,044 (48,779) (2,620) 7,420,645 1,452,094 5.11 2018-19 7,613,936 (58,375) (2,742) 7,552,819 2,044,969 3.69 2019-20 7,837,339 (52,352) (2,867) 7,782,120 2,045,469 3.80 2020-21 8,154,877 (53,869) (2,994) 8,098,014 2,042,969 3.96 2021-22 8,297,623 (53,438) (3,114) 8,689,180 2,042,344 4.25 2022-23 9,071,915 (51,368) (2,638) 9,017,909 2,038,469 4.42 2023-24 6,293,445 (46,309) (2,268) 6,244,868 2,041,094 3.06 2024-25 6,293,445 (46,309) (2,268) 6,244,868 2,030,219 3.08 2025-26 6,293,445 (46,309) (2,268) 6,244,868 2,030,719 3.08 2026-27 6,293,445 (46,309) (2,268) 6,244,868 2,049,244 3.05 2027-28 6,293,445 (46,309) (2,268) 6,244,868 2,047,044 3.05 2028-29 6,293,445 (46,309) (2,268) 6,244,868 2,041,075 3.06 2029-30 6,293,445 (46,309) (2,268) 6,244,868 2,046,031 3.05 2030-31 6,293,445 (46,309) (2,268) 6,244,868 2,037,828 3.06 2031-32 6,293,445 (46,309) (2,268) 6,244,868 2,040,088 3.06 2032-33 6,293,445 (46,309) (2,268) 6,244,868 - 0.00 1) FY 2016-17 through FY 2022-23 are based on actual
2) FY 2023-24 and on are the projections set forth in the official statement Livermore Successor Agency to the Former Redevelopment Agency Redevelopment Project
Actual(1) and Projected(2) Tax Revenues and Debt Service Coverage (Assumes 0% Growth)

EXHIBIT A
446

T
his Page Intentionally Left Blank

EXHIBIT A
447
CIT

Y OF LIVERMORE
ALAM

EDA COUNTY TRANSPORTATION COMMISSION

MEASURE B FUNDS

FINANCIAL STATEMENTS
FO
R THE FISCAL YEAR ENDED JUNE 30, 2023

EXHIBIT B
448

EXHIBIT B
449
Table of Contents
Page
Indep
endent Auditor’s Report ................................................................................................................ 1 Fina
ncial Statements:

Balance Sheet .................................................................................................................................. 5 Statement of Revenues, Expenditures and Changes in Fund Balances .......................................... 6 Notes to Financial Statements .......................................................................................................... 7 Indep
endent Auditor’s Report on Measure B Compliance .......................................................... 10-14

EXHIBIT B
450

EXHIBIT B
451
Indepe
ndent Auditor’s Report
The Hon
orable Mayor and Members of the City Council
City of Livermore, California
Repor
t on the Audit of the Financial Statements
Opini
on
We ha
ve audited the Financial Statements of the Measure B Funds, a special revenue fund of the City of Livermore, California (City), as of and for the year ended June 30, 2023, and the related notes to the financial statements.

In ou
r opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the Measure B Funds of the City, as of June 30, 2023, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Emphas
is of Matter
As dis
cussed in Note 1, the financial statements specific to Measure B are intended to present the financial position and the changes in financial position attributable to the transactions of that Fund. They do not purport to, and do not, present fairly the financial position of the City as of June 30, 2023, and the changes in its financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.

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EXHIBIT B
452
R
esponsibilities of Management for the Financial Statements

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

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS 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 GAAS and Government Auditing Standards, we

• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

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.

EXHIBIT B
453
R
equired Supplementary Information

Management has omitted management's discussion and analysis and budgetary comparison information that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of the financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated December 31, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Menlo Park, California
December 31, 2023

EXHIBIT B
454

EXHIBIT B
455

BA

LANCE SHEET
As of June 30, 2023

Bicycle and Local Streets
Pedestrian and Roads Totals
ASSETS
Cash and Investments (Note 2) 422,192$ 1,615,056$ 2,037,248$ Measure B Direct Local Distribution
Program Receivable - - - Total Assets 422,192$ 1,615,056$ 2,037,248$

LIABILITIES
Accounts Payable -$ 144,797$ 144,797$ Accrued Liabilities - 2,500 2,500 Total Liabilities - 147,297 147,297

FUND BALANCES
Restricted for Measure B Programs
and Projects 422,192 1,467,759 1,889,951
Total Fund Balances 422,192 1,467,759 1,889,951 Total Liabilities & Fund Balances 422,192$ 1,615,056$ 2,037,248$ See accompanying notes to financial statements

EXHIBIT B
456

S

TATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Fiscal Year Ended June 30, 2023

Bicycle and Local Streets
Pedestrian and Roads Totals

REVENUES
Measure B Direct Local Distribution
Program Revenue
Direct Local Distribution Funds Allocation -$ -$ -$ Interest 480 10,593 11,073
Total Program Revenues 480 10,593 11,073

EXPENDITURES
Measure B Direct Local Distribution
Expenses
General Government 202 111,638 111,840 Construction 10,392 527,908 538,300 Total Program Expenditures 10,594 639,546 650,140

REVENUES OVER (UNDER) EXPENDITURES/
NET CHANGE IN FUND BALANCE (10,114) (628,953) (639,067)

FUND BALANCES
Beginning Fund Balance 432,306 2,096,712 2,529,018 Ending Fund Balance 422,192$ 1,467,759$ 1,889,951$ See accompanying notes to financial statements

EXHIBIT B
457

N

OTES TO THE FINANCIAL STATEMENTS

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Reporting Entity

All transactions of the Measure B Direct Local Distribution (DLD) funds of the City of Livermore, California (City) distributed by Alameda County Transportation Commission (ACTC) - Measure B Program (Measure B Program), are combined with other ACTC fundings and reported as a separate special revenue fund in the basic financial statements of the City. The Measure B Program is used to account for the City’s share of DLD revenues earned and expenditures incurred under the City’s local streets and roads, and bike and pedestrian programs. The accompanying financial statements are for the Measure B Program only and are not intended to fairly present the financial position of the City and the results of its operations.

B. Basis of Accounting

The accompanying financial statements are prepared on the modified accrual basis of accounting. Revenues are generally recorded when measurable and available, and expenditures are recorded when the related liabilities are incurred.

The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a “current financial resources” measurement focus, wherein only current assets and current liabilities generally are included on the balance sheets. Operating stat ements of governmental funds present increased (revenues and other financing sources) and decreased (expenditures and other financing uses) in net current assets.

C. Description of Funds

The accounts are maintained on the basis of fund accounting. A fund is a separate accounting entity with a self- balancing set of accounts. The City uses Special Revenue Funds to account for the proceeds of specific revenues (other than for capital projects) that are legally restricted to be expended for specified purposes.

D. Capital Assets

Capital assets, consisting primarily of infrastructure, are recorded as expenditures and are not capitalized since they will be maintained by the City.

E. Use of Estimates

Management uses estimates and assumptions in preparing the financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates.

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N

OTES TO THE FINANCIAL STATEMENTS

NOTE 2 – CAS H AND INVESTMENTS

Cash and investments are maintained on a pooled basis with those of other funds of the City. Pooled cash and investments consist of U.S. Treasury or its agencies, money market funds investing in such obligations, medium term corporate notes that meet specified rating requirements, and the State Treasurer’s investment pool (Local Agency Investment Fund). All investments are stated at fair value. Pooled investment earnings are allocated based on the average cash and investment balances of the various funds and related entities of the City.

See the City’s Annual Comprehensive Financial Report for disclosures related to cash and investments and the related custodial risk categorization.

NOTE 3 – ME

ASURE B PROGRAM

Under Measure B, approved by the voters of Alameda County in 2000, the City receives a portion of the proceeds of an additional on- half cent sales tax to be used for transportation -related expenditures. This measure was adopted with the intention that the funds generated by the additional sales tax will not fund expenditures previously paid by property taxes but, rather, would be used for additional projects and programs.

Projects funded by Measure B 2000 were as follows:

Local Streets and R
oads - To improve, repair, and overlay city streets.

Bike and Pedestrian - To provide sidewalk and ADA improvements and to implement the bikeway network.

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Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
The Honorable City Council
City of Livermore, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the Measure B Funds (Fund) of the City of Livermore, California (City), as of and for the year ended June 30, 2023, and have issued our report thereon dated Report December 31, 2023. Our opinion included an emphasis of matter as discussed that the financial statements present only the Fund specific to Measure B Fund, and are not intended to present fairly the financial position and results of operations of the City in conformity with accounting principles generally accepted in the United States of America.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Fund's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control.

Accordingly, we do not express an opinion on the effectiveness of the Fund's internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that have not been identified.

What inspires you, inspires us. | eidebailly.com
4040 Campbell Ave., Ste. 200 | Menlo Park, CA 94025-1053 | T 650.522.3400 | F 650.645.7393 | EOE What inspires you, inspires us. | eidebailly.com
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R
eport on Compliance and Other Matters
As p
art of obtaining reasonable assurance about whether the Measure B Fund's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements including the applicable compliance requirements specified in the Measure B agreement between the City and Alameda County Transportation Commission, and noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpo
se of this Report
The
purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Men
lo Park, California
December 31, 2023

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I
nde
pendent Auditor’s Report on Compliance
The Ho
norable Mayor and Members of the City Council
City of Livermore, California
Report on Compliance
Opinion on Compliance with Measure B
We have audited the City of Livermore, California (City) compliance with the compliance requirements applicable to the Measure B Funds (Measure B Funds) of the City of Livermore, California (City), for the year ended June 30, 2023.

In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that are applicable to the Measure B Funds for the year ended June 30, 2023.

Basis for Opinion
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards (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 Compliance section of our report.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s government programs.

What inspires you, inspires us. | eidebailly.com
4040 Campbell Ave., Ste. 200 | Menlo Park, CA 94025-1053 | T 650.522.3400 | F 650.645.7393 | EOE What inspires you, inspires us. | eidebailly.com
4040 Campbell Ave., Ste. 200 | Menlo Park, CA 94025-1053 | T 650.522.3400 | F 650.645.7393 | EOE

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Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, and Government Auditing Standards will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of the government program as a whole.

In performing an audit in accordance with GAAS, and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
• Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a compliance requirement will not be prevented, or detected and corrected, on a timely basis.

A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the "Auditor’s Responsibilities for the Audit of Compliance" section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not

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identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that have not been identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing. Accordingly, this report is not suitable for any other purpose.

Men
lo Park, California
December 31, 2023

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465
CI

TY OF LIVERMORE
AL

AMEDA COUNTY TRANSPORTATION COMMISSION

MEASURE BB FUNDS