38_02102022%20agenda%20packet%20page%20numbers — Newark City Council, February 10, 2022

AGENDA
Thursday, February 10, 2022
7:00 P.M.

HYBRID IN-PERSON/VIRTUAL MEETING

REFER TO THE END OF THE AGENDA TO REVIEW OPTIONS FOR PARTICIPATING IN THE MEETING REMOTELY OR IN-PERSON.

IF YOU ATTEND THE MEETING IN PERSON, YOU ARE REQUIRED

TO WEAR A FACE COVERING PURSUANT TO ALAMEDA
COUNTY HEALTH OFFICER ORDER NO. 21-03.

LIMITED PUBLIC SEATING WILL BE AVAILABLE
IN THE CITY COUNCIL CHAMBERS CONSISTENT WITH CDC GUIDELINES.

A. ROLL CALL
B. PRESENTATIONS

1. Introduction of employees
C. PUBLIC COMMENT
The public is invited to address the City Council on any item not listed on the agenda. Public Comments are generally limited to 5 minutes per speaker. Please note that State law prohibits the Council from acting on non-agenda items.

D. CONSENT CALENDAR
Consent Calendar items are considered to be routine and may be approved by one motion.

There will be no separate discussion on these items unless there is a request by a Council Member, a staff member, or a member of the public to remove an item for separate discussion and action.

1. Approval of Audited Demands

2. Approval of January 27, 2022, minutes

3. Resolution for acceptance of work with DeSilva Gates Construction L.P. for 2020-2021 Asphalt Concrete Street Overlay Program, Project 1250

4. Resolution for acceptance of work with Bond Blacktop, Inc. for 2020-2021 Street Slurry Seal

4. Resolution for acceptance of work with Bond Blacktop, Inc. for 2020-2021 Street Slurry Seal Program, Project 1251

5. Resolution for acceptance of work with Green Valley Landscape for Cedar Boulevard Landscape Improvements, Project 1199

6. Motion to accept the Annual Comprehensive Financial Report (ACFR) for the period ended June 30, 2021
E. PUBLIC HEARINGS
F. OTHER BUSINESS
G. CITY COUNCIL MATTERS
City Council Members report on attendance at intergovernmental agency meetings, conferences, and seminars since the last meeting. City Council Members may also announce upcoming events and coordinate attendance; report on local events attended since the last meeting; and make brief comments on issues of concern.

H. CLOSED SESSION

1. Closed Session pursuant to Government Code Section 54957, Public Employee Performance Evaluation, Title: City Manager
I. ADJOURNMENT

HYBRID IN-PERSON/VIRTUAL MEETING NOTICE
This meeting is being conducted utilizing teleconferencing and electronic means consistent with Assembly Bill 361.

Members of the public may attend the meeting in person, virtually via Zoom, or watch it via YouTube. Pursuant to Alameda County Health Officer Order No. 21-03, all individuals attending the meeting in person are required to wear a face covering at all times. The City Council Chambers will have limited public seating consistent with CDC Guidelines.

Mayor Nagy, Vice Mayor Hannon, and Council Members Bucci, Collazo, and Freitas may be attending this meeting via teleconference. Teleconference locations are not open to the public. In the event that any members of the City Council elect to attend this meeting via teleconference, all votes conducted during the teleconferencing session will be conducted by roll call vote.

How to view the meeting remotely:

Livestream online at YouTube: https://www.youtube.com/channel/UC383NGSxaPwZP1lkJbo2T8A Copy/paste the YouTube URL into your browser if the link does not automatically open.

How to participate in the meeting remotely, via Zoom Webinar:

From a PC, Mac, iPad, iPhone or Android device: Zoom Meeting https://us06web.zoom.us/j/87903749309 From a telephone dial 1- 669-900-9128, Webinar ID Number 879 0374 9309 Packet Page 2
Provide live, remote public comments, when the Mayor calls for comments. Use the raise your hand feature in Zoom to be called upon by the City Clerk.

For frequently asked Zoom questions, please go to Agendas and Minutes and select the Frequently Asked Questions link.

No question shall be asked of a council member, city staff, or an audience member except through the Mayor. No person shall use vulgar, profane, loud or boisterous language that interrupts a meeting. Any person who refuses to carry out instructions given by the Mayor for the purpose of maintaining order may be guilty of an infraction and may result in removal from the meeting.

Council Meeting Access/Materials:

The agenda packet is available for review at Agendas and Minutes. The packet is typically posted to the City website the Friday before the meeting, but no later than 72 hours before the meeting.

Pursuant to Government Code 54957.5, supplemental materials distributed less than 72 hours before this meeting, to a majority of the City Council, will be made available for public inspection at this meeting and will be posted, if time allows, at Agendas and Minutes. Materials prepared by City staff and distributed during the meeting are available for public inspection at the meeting or after the meeting if prepared by some other person. Documents related to closed session items or are exempt from disclosure will not be made available for public inspection. For those persons who require special accommodations, please contact the City Clerk at least two days prior to the meeting at City Clerk or 510-578-4266.

Packet Page 3
Item B. 1.

DATE 02/10/2022
TO Honorable Mayor and City Council Members
FROM Sheila Harrington, City Clerk
SUBJECT Introduction of employees
Newly hired Human Resources Director Jennifer Solito will be introduced at the meeting.

Packet Page 4
Item D. 1.

DATE 02/10/2022
TO Honorable Mayor and City Council Members
FROM Krysten Lee, Finance Director
SUBJECT Approval of Audited Demands
Attachments
Audited Demands
Packet Page 5
Packet Page 6
Packet Page 7
Packet Page 8
Packet Page 9
Packet Page 10
Packet Page 11
Packet Page 12
Packet Page 13
Packet Page 14
Item D. 2.

DATE 02/10/2022
TO Honorable Mayor and City Council Members
FROM Sheila Harrington, City Clerk
SUBJECT Approval of January 27, 2022, minutes
Attachments
Minutes
Packet Page 15
City of Newark | Newark City Council
Mayor Alan L. Nagy | Vice Mayor Michael K. Hannon | Council Members: Luis L. Freitas, Maria “Sucy” Collazo, & Mike Bucci Minutes
Thursday, January 27, 2022
7:00 P.M.

A. ROLL CALL
Mayor Nagy called the meeting to order at 7:00 p.m. Present were Council Members Bucci, Collazo, Freitas, and Vice Mayor Hannon.

B. PRESENTATIONS

1. Presentation on Union Sanitary District from General Manager Paul Eldredge Mr. Eldredge provided a summary of Union Sanitary District services and significant projects. A copy of the presentation is on file with the City Clerk.

C. PUBLIC COMMENT
Alan Chin spoke against turning the Towne Place Suites Hotel at 39802 Cedar Boulevard into affordable housing for the homeless. He stated that homeless services would attract more homeless and that large cities have not solved the homeless problem. He stated that 1,500 signatures have been gathered against the project and requested that the City Council place the topic on the next meeting agenda.

Vipin Boyanapalli stated that he opposed the plan too. He said that he was scared when walking with his children. He stated that the City Council should address better schools, improve roads, and maintain sidewalks instead of this plan.

Zoe Siegel stated that she applauded the City’s initiative to address the homeless crisis.

She said that people need compassion for the homeless.

Ou Li stated that the project did not solve the fundamental problems. She asked what would be the qualifications of the residents and what services would they receive. She stated her concern about providing shelter without a specific plan to share with the community.

Packet Page 16
Page No. 2
City of Newark City Council Minutes January 27, 2022
Vishal Chawathe stated that she did not approve the plan and that current residents should be the priority. She stated that people should move if they cannot afford to live here. She stated that her million-dollar home would be targeted by the homeless.

Mona R. stated that she supported the plan and that people should not compare Newark to San Francisco. She stated that the homeless are our neighbors and that people are creating fear. This project would get people off the streets and provide support.

J opposed the plan to build the shelter at this location and asked why this location and why were they not informed. J stated that there was work available and he did not think that people out of work justified this project.

Nadia stated that she opposed the plan. She asked what were the City’s answers to the questions posed. She said that at the last meeting the majority of speakers stated their opposition and the City Council approved the plan.

Sneha suggested building the project at another location in City because this project was close to the high school, daycare, and children. She stated that the schools were not good, and was concerned about crime and drugs coming to the City with this project.

Ray stated that he supports people who need help. He suggested that the City withdraw the application and allow the city of Fremont to receive the grant money instead. He stated that Fremont had the infrastructure and amenities to support this project.

Stephanie Chan stated her support of the project and did not agree that the majority of the residents opposed the project. She stated that homelessness is a big problem and we should do our part to help. She requested that the City move forward with the project Justin stated that he opposed the plan and shared his experiences of living next door to the hotel and the homeless in the area.

Ronak Shah stated that he opposed the plan, and thought it would invite other homeless to the area. He suggested reserving a percentage of homes in new developments for low income or homeless people instead of this project.

Rajesh stated that he opposed the project. He stated that he was concerned with the lack of public notification, the limited plan information, and how the City would budget for the project in the coming years. He did not think the project would solve homelessness. He requested that information be shared on a wider scale.

Anant Rishi stated his support for the project, and noted that there is a large working homeless population. Mental issues should not be counted against this project. The City needs to manage the homeless issue soon, before it becomes a larger problem.

Ashley Mo stated that she opposed the project and did not think it was the right location.

Packet Page 17
Page No. 3
City of Newark City Council Minutes January 27, 2022
She expressed concern that if people were evicted from the project, that they would stay in the area.

Raza Jafi stated that he opposed the project due to the location. He stated that he did not know why people were homeless and thought they needed mental help.

Aakah Verma oppose the project due to the location and stated that the homeless cannot be helped at the cost of the neighbors.

Daoud stated that he did not approve the project and preferred all low-income housing. He stated that there were jobs available and thought that mental illness caused the homeless He suggested increasing funding for the Police Department.

Karthick Rao stated that the project was in a residential area and will impact children. The safety of the residents needs to be considered and asked why this location. What happens when funding stops for the project.

Karan Misra stated that she was proud of Newark for taking on this project. She lives in Sanctuary Village and understood the concerns, but did not think that they outweighed the benefits of the project. She hoped that the City could educate the community on the project.

City Manager Benoun stated that Project Homekey item was not on the agenda. Per the Brown Act, items not on the agenda could not be discussed by the City Council. He stated that a community meeting was held in November and notification was sent to the property owners within a 500 foot radius of the project. The comments received at that meeting were positive. The City Council received public input on the project at the January 13, 2022, meeting. This Item will be scheduled at a future meeting to discuss an affordable housing agreement. He stated that staff would work to address the misunderstandings of the project through community engagement.

D. CONSENT CALENDAR
Council Member Bucci moved, Council Member Collazo seconded, to approve Consent Calendar items D.1 through D.7, that the resolutions be numbered consecutively, and that reading of the titles suffice for adoption. The motion passed, 5 AYES.

1. Approval of Audited Demands

2. Approval of January 6, 2022, and January 13, 2022, minutes

3. Adopt a Resolution confirming the continued existence of a local emergency due to the COVID-19 Pandemic
Packet Page 18
Page No. 4
City of Newark City Council Minutes January 27, 2022
Resolution No. 11305

4. Adopt a Resolution Finding That There is a Proclaimed State of Emergency; Finding That Meeting in Person Would Present Imminent Risks to the Health or Safety of Attendees as a Result of the State of Emergency; and Authorizing Continued Remote Teleconferenced Meetings of the Legislative Bodies of the City of Newark for the 30 Day Period Beginning January 27 Pursuant to AB 361
Resolution No. 11306

5. Adopt a Resolution Authorizing the City Manager to Execute a Contractual Services Agreement with Environmental Services Inc. and Authorizing Amendment of the 2020-2022 Biennial Budget for Fiscal Year 2022 to Provide Funding for General Plan Updates related to the Services Associated with the 2023-2031 Housing Element
Resolution No. 11307
Contract No. 22001

6. Approval of resolutions to add class specifications for Police Support Services Manager, Aquatic Activities Specialist, and Accounting Technician I/II to the classification plan; add full-time personnel allocations to the 2020-2022 Biennial Budget and Capital Improvement Plan for one Police Support Services Manager, one Aquatic Activities Specialist, and one Accounting Technician I-II, and delete one Communications Supervisor and one Accounting Technician I; approve a side letter with the Newark Police Management Association to add the classification of Police Support Services Manager and salary range to the Memorandum of Understanding, and approve a side letter with the Newark Association of Miscellaneous Employees to add the classification of Aquatic Activities Specialist and salary range to the Memorandum of Understanding.

Resolution No. 11308 to 11311

7. Approval of resolutions to add full-time personnel allocations to the 2020-2022 Biennial Budget and Capital Improvement Plan for one Crime Analyst, one additional Information Systems Technician, and one additional General Laborer; add a class specification to the Classification Plan for Crime Analyst; and approve a side letter with the Newark Police Management Association to add the classification of Crime Analyst and assigned salary range to the Memorandum of Understanding.

Resolution No. 11312 to 11313
Packet Page 19
Page No. 5
City of Newark City Council Minutes January 27, 2022
Packet Page 20
Page No. 6
City of Newark City Council Minutes January 27, 2022
E. PUBLIC HEARINGS

1. Public Hearing and tabulation of ballots for annexation of Tract 8453 to Zone 7 – Harbor Pointe of Landscaping and Lighting District No. 19 and, if no majority protest exists, adopt a resolution approving the final Engineer’s Report and approving the annexation of Tract 8453 to Zone 7 – Harbor Pointe of Landscaping and Lighting District No. 19
Resolution No. 11314
Senior Civil Engineer Cangco gave the staff report recommending approval.

In response to Council Member Collazo’s request to improve the appearance of the roundabouts, Senior Civil Engineer Cangco stated that they were not complete and mor changes would be made to the appearance..

Vice Mayor Hannon suggested lowering some of the landscaping.

Mayor Nagy opened the Public Hearing at 8:32 p.m.

No one requested to speak.

Mayor Nagy closed the Public Hearing closed at 8:33 p.m.

City Clerk Harrington opened the ballot and announced the vote in support of annexation.

Moved by Council Member Collazo, seconded by Council Member Freitas to adopt the resolution approving the final engineer’s report, and approving the annexation of Tract 8453 to Zone 7 – Harbor Pointe of Landscaping and Lighting District No. 19. The motion passed, 5 AYES.

F. OTHER BUSINESS
G. CITY COUNCIL MATTERS

1. Adopt a resolution approving the Mayor's appointment to the Planning Commission
Resolution No. 11315
Mayor Nagy recommended the appointment of Lori Bogisch to fill the unexpired term of Karen Bridges on the Planning Commission.

Packet Page 21
Page No. 7
City of Newark City Council Minutes January 27, 2022
Council Member Bucci encouraged the unappointed applicants to consider applying for other positions in the future.

Moved by Vice Mayor Hannon, seconded by Council Member Bucci to adopt a resolution appointing Lori Bogisch to the Planning Commission. The motion passed, 5 AYES.

Mayor Nagy asked when the roundabout at Central Avenue and Willow Street would be finished. Public Works Director Fajeau advised that they anticipate the developer completing the work this construction season. He noted that a PG&E vault in the roadway would have to be adjusted before the project may move forward.

Vice Mayor Hannon complimented the Planning Commission candidate pool and agreed with Council Member Bucci’s earlier comment. He complimented Karen Bridges for her services on the Planning Commission.

Council Member Freitas stated that the new chair of the Alameda County Transportation Commission would like to tour the City. He requested that Public Works Director Fajeau join them.

Council Member Collazo stated that the roundabouts in Mexico were beautiful and that Newark’s roundabouts should be beautiful too. She complimented Karen Bridges for her service to the City. Shop Newark.

H. CLOSED SESSION

1. Closed Session pursuant to Government Code Section 54957, Public Employee Performance Evaluation, Title: City Manager
Mayor Nagy stated that the closed session would not be held.

I. ADJOURNMENT
Mayor Nagy adjourned the meeting at 8:47 p.m.

Packet Page 22
Item D. 3.

DATE 02/10/2022
TO Honorable Mayor and City Council Members
FROM Michael Carmen, Assistant Engineer
SUBJECT Resolution for acceptance of work with DeSilva Gates Construction L.P. for 2020-2021 Asphalt Concrete Street Overlay Program, Project 1250

RECOMMENDATION
Staff recommends that the City Council, by resolution, accept the work with DeSilva Gates Construction L.P. for 2020-2021 Asphalt Concrete Street Overlay Program, Project 1250.

EXECUTIVE SUMMARY
The City Council previously awarded a contract to DeSilva Gates Construction, L.P. for 2020-2021 Asphalt Concrete Street Overlay Program, Project 1250. This project was completed on time and within the original budget. Staff has reviewed and inspected the entire scope of work under the contract and recommends that the City Council formally accept the work.

BACKGROUND
Pursuant to Resolution No. 11,246, adopted July 22, 2021, the City Council awarded a contract to DeSilva Gates Construction L.P. for 2020-2021 Asphalt Concrete Street Overlay Program, Project 1250. 2020-2021 Asphalt Concrete Street Overlay Program, Project 1250, included localized patch paving, pavement grinding, placement of new asphalt concrete pavement, speed bump installations, traffic signal loop installations, new bike lane/bike buffer striping, and general restriping on various City streets. The streets that received an asphalt overlay include: Dumbarton Court, Lido Boulevard, Smith Avenue, Moores Avenue, Rockrose Drive, Rockrose Court, and Thornton Avenue from Marshlands Road to Hickory Street. Patch paving work occurred on streets that were scheduled to be resurfaced as part of 2020-2021 Street Slurry Seal Program, Project 1251, and where localized pavement failures were too severe to correct with a surface (skin) patch.

DISCUSSION/ANALYSIS
Staff has reviewed and inspected the entire scope of work which has now been satisfactorily completed in accordance with the approved project plans and specifications and all applicable standards. Pursuant to the State of California Public Contract Code, formal acceptance of the work by the City Council is now recommended.

Packet Page 23
FISCAL IMPACT
On July 22, 2021, the City Council awarded a contract in the amount of $2,624,733 to DeSilva Gates Construction L.P.. Staff also recommended including a construction contingency in the amount of $375,267 which brought the recommended allocation for the project to $3,000,000. $191,300 of the total allocation amount would be reimbursed to the City by the Alameda County Water District (ACWD) and Union Sanitary District (USD) for adjustment of their facilities.

The project was completed within original budget using a combination of Alameda County Measure B/BB Sales Tax funds, Vehicle Registration Fee funds, SB1 Road Maintenance and Rehabilitation Account funds, and Highway Users Tax funds.

REVIEW AND APPROVAL
Prepared by – Michael Carmen, Assistant Engineer
Reviewed by – Jayson Imai, Assistant City Engineer
Reviewed by – Soren Fajeau, Public Works Director
Reviewed by – Kristopher J. Kokotaylo, Interim City Attorney Approved by – David J. Benoun, City Manager
Attachments
304 Resolution P1250 Acceptance
Packet Page 24
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK ACCEPTING THE WORK WITH DESILVA GATES
CONSTRUCTION L.P. FOR 2020-2021 ASPHALT CONCRETE
STREET OVERLAY PROGRAM, PROJECT 1250
WHEREAS, the City of Newark entered into a contract with DeSilva Gates Construction L.P., pursuant to Resolution No. 11,246, adopted July 22, 2021, for 2020-2021 Asphalt Concrete Street Overlay Program, Project 1250, in the City of Newark; and WHEREAS, DeSilva Gates Construction L.P. has successfully completed the improvements for 2020-2021 Asphalt Concrete Street Overlay Program, Project 1250, in accordance with plans and specifications for the contract.

WHEREAS, said work has been completed to the satisfaction of the City Engineer.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Newark does hereby accept the improvements for 2020-2021 Asphalt Concrete Street Overlay Program, Project 1250.

BE IT FURTHER RESOLVED that the City Council of the City of Newark does hereby authorize the release of bonds guaranteeing completion of the work.

BE IT FURTHER RESOLVED that the City Council of the City of Newark does hereby authorize the filing of a Notice of Completion with the Office of the County Recorder of Alameda County, California.

BE IT FURTHER RESOLVED that the City Council of the City of Newark does hereby authorize the City to issue payment including the release of a final retention payment to DeSilva Gates Construction, L.P for the completion of 2020-2021 Asphalt Concrete Street Overlay Program, Project 1250, pursuant to the contract.

Packet Page 25
Item D. 4.

DATE 02/10/2022
TO Honorable Mayor and City Council Members
FROM Trang Tran, Senior Civil Engineer
SUBJECT Resolution for acceptance of work with Bond Blacktop, Inc. for 2020-2021 Street Slurry Seal Program, Project 1251

RECOMMENDATION
Staff recommends that the City Council, by resolution, accept the work with Bond Blacktop, Inc. for 2020-2021 Street Slurry Seal Program, Project 1251.

EXECUTIVE SUMMARY
Bond Blacktop, Inc. was previously awarded a contract for 2020-2021 Street Slurry Seal Program, Project 1251. This project was completed within the original contract budget. Staff has reviewed and inspected the entire scope of work under the contract and recommends that the City Council formally accept the work.

BACKGROUND
As part of the City of Newark’s ongoing effort to protect and extend the life of its streets, the Public Works Engineering Division annually inspects asphalt concrete pavement surfaces to identify areas of potential maintenance and determine the timing and type of appropriate repairs. Slurry seal is the application of a thin layer of sand, aggregate, and asphalt emulsion mixture to those streets that show surface wear and minor cracking. This surface seal is not a structural upgrade but minimizes water intrusion into the pavement base, thereby extending the useful life of the street by at least five years. This preventative maintenance process is a cost-effective measure to prolong the life of City streets and maximize the value of previous investments.

Pursuant to Resolution No. 11,236, adopted July 8, 2021, authorizing the City Manager or his designee to act upon certain administrative matters on behalf of the City Council during the City Council summer recess of August 2021, the City Manager on August 30, 2021, awarded a contract to Bond Blacktop, Inc. for 2020-2021 Street Slurry Seal Program, Project 1251. This project included the application of a slurry seal, new buffered bike lane striping and general pavement marking re-striping on various City streets.

Packet Page 26

FISCAL IMPACT
On August 30, 2021, the City Manager, on behalf of the City Council, awarded a contract in the amount of $502,083.41 to Bond Blacktop, Inc. for 2020-2021 Street Slurry Seal Program, Project 1251. The City Manager also approved an additional $22,916.59 in construction contingency, bringing the total allocation to 2020-2021 Street Slurry Seal Program, Project 1251 to $525,000.

The project was completed within the original budget using Highway Users Tax Account (HUTA) funds.

REVIEW AND APPROVAL
Prepared by – Trang Tran, Senior Civil Engineer
Reviewed by – Jayson Imai, Assistant City Engineer
Reviewed by – Soren Fajeau, Public Works Director
Reviewed by – Kristopher J. Kokotaylo, Interim City Attorney Approved by – David J. Benoun, City Manager
Attachments
303 Resolution P1251 Acceptance
Packet Page 27
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK ACCEPTING THE WORK WITH BOND
BLACKTOP, INC. FOR 2020-2021 STREET SLURRY SEAL
PROGRAM, PROJECT 1251
WHEREAS, the City of Newark entered into a contract with Bond Blacktop, Inc., pursuant to Resolution No. 11,236, adopted July 8, 2021, authorizing the City Manager or his designee to act upon certain administrative matters on behalf of the City during the City Council summer recess of August 2021, for 2020-2021 Street Slurry Seal Program, Project 1251, in the City of Newark; and
WHEREAS, Bond Blacktop, Inc. has successfully completed the improvements for the 2020-2021 Street Slurry Seal Program, Project 1251, in accordance with plans and specifications for the contract; and
WHEREAS, said work has been completed to the satisfaction of the City Engineer.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Newark does hereby accept the improvements for 2020-2021 Street Slurry Seal Program, Project 1251.

BE IT FURTHER RESOLVED that the City Council of the City of Newark does hereby authorize the release of bonds guaranteeing completion of the work.

BE IT FURTHER RESOLVED that the City Council of the City of Newark does hereby authorize the filing of a Notice of Completion with the Office of the County Recorder of Alameda County, California.

BE IT FURTHER RESOLVED that the City Council of the City of Newark does hereby authorize the City to issue payment including the release of a final retention payment to Bond Blacktop, Inc. for the completion of 2020-2021 Street Slurry Seal Program, Project 1251, pursuant to the contract.

Packet Page 28
Item D. 5.

DATE 02/10/2022
TO Honorable Mayor and City Council Members
FROM Trang Tran, Senior Civil Engineer
SUBJECT Resolution for acceptance of work with Green Valley Landscape for Cedar Boulevard Landscape Improvements, Project 1199

RECOMMENDATION
Staff recommends that the City Council, by resolution, accept the work with Green Valley Landscape for Cedar Boulevard Landscape Improvements, Project 1199.

EXECUTIVE SUMMARY
The City Council previously awarded a contract to Green Valley Landscape for Cedar Boulevard Landscape Improvements, Project 1199. This project was completed on time and within the original contract budget. Staff has reviewed and inspected the entire scope of work under the contract and recommends that the City Council formally accept the work.

BACKGROUND
Subdivision improvements associated with Tract 8130 – Timber, by Trumark Homes included the construction of a new precast concrete back-up wall, sidewalk and tree wells on the west side of Cedar Boulevard between Central Avenue and Smith Street. Cedar Boulevard Landscape Improvements, Project 1199 installed new trees within the existing tree wells, wall-clinging ivy next to the back-up wall, groundcover, and irrigation improvements.

FISCAL IMPACT
On May 13, 2021, the City Council awarded a contract in the amount of $133,897 to Green Valley Landscape for Cedar Boulevard Landscape Improvements, Project 1199. The City Council also approved an additional $16,103 in construction contingency, bringing the total allocation to Cedar Boulevard Landscape Improvements, Project 1199 to $150,000. The project was completed within the original budget using Highway Users Tax Account (HUTA) funds.

Packet Page 29
original budget using Highway Users Tax Account (HUTA) funds.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK ACCEPTING THE WORK WITH GREEN VALLEY

LANDSCAPE FOR THE CEDAR BOULEVARD LANDSCAPE
IMPROVEMENTS, PROJECT 1199
WHEREAS, the City of Newark entered into a contract with Green Valley Landscape, pursuant to Resolution No. 11,200, for the Cedar Boulevard Landscape Improvements, Project 1199, in the City of Newark, in accordance with plans and specifications for the contract; and WHEREAS, Green Valley Landscape has successfully completed the improvements for the Cedar Boulevard Landscape Improvements, Project 1199, in accordance with plans and specifications for the contract; and
WHEREAS, said work has been completed to the satisfaction of the City Engineer.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Newark does hereby accept the improvements for the Cedar Boulevard Landscape Improvements, Project 1199.

BE IT FURTHER RESOLVED that the City Council of the City of Newark does hereby authorize the release of bonds guaranteeing completion of the work.

BE IT FURTHER RESOLVED that the City Council of the City of Newark does hereby authorize the filing of a Notice of Completion with the Office of the County Recorder of Alameda County, California.

BE IT FURTHER RESOLVED that the City Council of the City of Newark does hereby authorize the City to issue payment including the release of a final retention payment to Green Valley Landscape for the completion of the Cedar Boulevard Landscape Improvements, Project 1199, pursuant to the contract.

Packet Page 31
Item D. 6.

DATE 02/10/2022
TO Honorable Mayor and City Council Members
FROM Krysten Lee, Finance Director
SUBJECT Motion to accept the Annual Comprehensive Financial Report (ACFR) for the period ended June 30, 2021

RECOMMENDATION
Staff recommends that the City Council, by motion, accept the Annual Comprehensive Financial Report (ACFR) for the period ended June 30, 2021.

EXECUTIVE SUMMARY
As part of the year-end closing process, staff presents the audited ACFR for the fiscal year ended June 30, 2021. This report's financial statements provide information on the City's year-end financial condition and operation results for the fiscal year 2021.

Lance, Soll & Lunghard, LLP (LSL) audited the report and issued an unmodified audit opinion.

BACKGROUND
The City's financial statements were prepared according to the requirements of the Government Accounting Standards Board (GASB). The two government-wide financial statements provide a broad view of the City's financial position and activities in a manner similar to private sector business reporting. The Statement of Net Position provides information regarding the City's financial position, including all assets and liabilities and the Statement of Activities provides information regarding the city's revenues and expenses. In the Transmittal Letter and Management Discussion and Analysis, the Finance Director provides a narrative overview and analysis of the City's financial activities and performance during the fiscal year.

Following the close of each fiscal year, the City's external auditors conduct an audit of the City's financial records and assist in the compilation of the ACFR. The objective of general purpose external financial reporting is accountability. The goal of the financial statement audit is to provide users with a reasonable assurance from an independent source that the information presented in the statements is reliable. The audit for the fiscal year ended June 30, 2021, was recently completed by LSL auditors. LSL was approved by the Council as the City's independent auditor on May 23, 2019 and this is their third year of an initial four year engagement.

Packet Page 32
The City was awarded a certificate from the GFOA's Excellence in Financial Reporting Award program for the City's FY 2020 ACFR. The GFOA recognizes innovative programs, contributions to the practice of government finance that exemplify outstanding financial management. The award stresses practical, documented work that offers leadership to the profession and promotes improved public finance. The Certificate of Achievement is the highest form of recognition in the field of government accounting.

DISCUSSION/ANALYSIS
Financial Highlights for FY 2021
Government-wide:
• At June 30, 2021, the assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources by $197.4 million (net position). This is an increase of $21.1 million from the prior fiscal year. Of this amount, $74.2 million are restricted, and $31.1 million represents unrestricted net position. • Government-wide revenues include program revenues of $32.0 million and general revenues of $59.8 million, an increase of $13.3 million total revenues from the prior fiscal year.
• Government-wide expenses totaled $69.6 million, an increase of $0.3 million from the prior year's total of $69.3 million.

Governmental Funds:
•    At the close of fiscal year 2021, the City's governmental funds reported combined fund balances of $135.4 million, a decrease of $23.6 million in comparison with the prior fiscal year.
•    Governmental Fund revenues were $91.3 million in fiscal year 2021, an increase of $12.9 million from fiscal year 2020.
•    Governmental Fund expenditures were $114.8 million in fiscal year 2021, an increase of $17.0 million compared to fiscal year 2020. •    Approximately 26.1% of the fund balance ($34.3 million) is unassigned and available for spending at the government’s discretion, although $11.4 million is designated as emergency and $10.7 million as fiscal uncertainty reserves. The remainder if the fund balance is either non-spendable, restricted, committed, or assigned to indicate that it is 1) non-spendable form or legally required to be maintained intact ($0.1 million), 2) restricted for specific purposes ($85.8 million), 3) committed for specific purposes ($6.8 million), or 4) assigned for specific purposes ($8.3 million).

A final version of the ACFR will be available on the City's website.

FISCAL IMPACT
There is no Financial Impact.

Packet Page 33
There is no Financial Impact.

REVIEW AND APPROVAL
Prepared by – Krysten Lee, Finance Director
Reviewed by – Kristopher J. Kokotaylo, Interim City Attorney Approved by – David J. Benoun, City Manager
Attachments
FY 2021 ACFR
Packet Page 34
City of Newark
Newark, California
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Prepared by:

Finance Department
Krysten Lee
Finance Director
Packet Page 35
Packet Page 36

CITY OF NEWARK, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR FISCAL YEAR ENDED JUNE 30, 2021
Packet Page 37
Packet Page 38
City of Newark
Table of Contents
Page
Introductory Section
Table of Contents..............................................................................................................................................................i Letter of Transmittal........................................................................................................................................................v Organization Chart...........................................................................................................................................................x Newark Mayor and City Council ..................................................................................................................................... xi List of City Officials......................................................................................................................................................... xii Map of City’s Location .................................................................................................................................................. xiii Certificate of Achievement for Excellence in Financial Reporting ‐ Government Finance Officers Association............................................................................................................. xiv Financial Section
Independent Auditors’ Report........................................................................................................................................1 Management’s Discussion and Analysis.........................................................................................................................5 Basic Financial Statements:

Government‐Wide Financial Statements:

Statement of Net Position ................................................................................................................................16 Statement of Activities and Changes in Net Position .......................................................................................17 Governmental Fund Financial Statements:

Balance Sheet ...................................................................................................................................................18 Reconciliation of the Governmental Funds Balance Sheet
to the Government‐Wide Statement of Net Position................................................................................21 Statement of Revenues, Expenditures and Changes in Fund Balances............................................................22 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government‐Wide Statement of Activities and Changes in Net Position.................................................................................25 Proprietary Fund Financial Statements:

Statement of Net Position ................................................................................................................................27 Statement of Revenues, Expenses and Changes in Net Position .....................................................................28 Statement of Cash Flows..................................................................................................................................29 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position.................................................................................................................30 Statement of Changes in Fiduciary Net Position ..............................................................................................31 Notes to Basic Financial Statements.......................................................................................................................32 Packet Page i 39
City of Newark
Table of Contents
Page
Financial Section, Continued
Required Supplementary Information:

Budgetary Basis of Accounting:

Budgetary Control and Budgetary Accounting .................................................................................................68

Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual General Fund ....................................................................................................................................................66 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual Gas Tax Fund.....................................................................................................................................................67 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual Housing Impact Fees Fund................................................................................................................................68 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual Community Development Impact Fees Fund ...................................................................................................69 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual Park Impact Fees Fund......................................................................................................................................70 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual Measure B 1986 ACTIA ....................................................................................................................................71 Notes to Required Supplementary Information .....................................................................................................73

Defined Benefit Pension Plan:

Schedule of Changes in Net Pension Liability and Related Ratios – Agent Multiple Employer Plan..........................................................................................................................74 Schedule of Plan Contributions ‐ Agent Multiple Employer Plan.....................................................................75 Schedule of Proportionate Share of the Net Pension Liability – Cost Sharing Plan ..............................................................................................................................................76 Schedule of Plan Contributions – Cost Sharing Plan.........................................................................................77 Other Post Employment Benefit Plan:

Schedule of Changes in Net OPEB Liability and Related Ratios........................................................................78 Schedule of OPEB Contributions.......................................................................................................................79 Packet Page ii 40
City of Newark
Table of Contents
Page

Supplementary Information:

Non‐Major Governmental Funds:

Combining Balance Sheet.................................................................................................................................84 Combining Statement of Revenues, Expenditures
and Changes in Fund Balances...................................................................................................................88 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:

Capital Projects Fund ........................................................................................................................................92 Paramedic Tax Special Revenue Fund ..............................................................................................................93 Alameda County Fire Fees Special Revenue Fund............................................................................................94 Police Grants Special Revenue Fund.................................................................................................................95 CARES Act Fund.................................................................................................................................................96 Community Development Act Fund .................................................................................................................97 Waste Management Augmentation Fund ........................................................................................................98 Measure D ‐ Recycling Special Revenue Fund ..................................................................................................99 Measure B (ACTC) Local Streets and Road Fund ............................................................................................100 Measure BB (ACTC) Local Streets and Road Fund ..........................................................................................101 Measure F (VRF) ACTC Fund ...........................................................................................................................102 SB1 RMRA – Road Maintenance and Repair Fund..........................................................................................103 Hazardous Materials Program Fund ...............................................................................................................104 State Senate Bills Fund ...................................................................................................................................105 Auto Break‐in Prevention (AB74) Fund ..........................................................................................................106 State Construction Maintenance Fund...........................................................................................................107 PEG Fees Fund ................................................................................................................................................108 Art in Public Places Special Revenue Fund .....................................................................................................109 Miscellaneous Federal Grants Fund ...............................................................................................................110 Landscape and Lighting District Fund .............................................................................................................111 Internal Service Funds:

Combining Statement of Net Position............................................................................................................114 Combining Statement of Activities and Changes in Net Position...................................................................116 Combining Statement of Cash Flows..............................................................................................................118 Statistical Section
Net Position by Component.........................................................................................................................................122 Changes in Net Position...............................................................................................................................................123 Fund Balances of Governmental Funds.......................................................................................................................124 Changes in Fund Balances of Governmental Funds.....................................................................................................125 Assessed Value and Estimated Actual Value of Taxable Property...............................................................................126 Property Tax Rates.......................................................................................................................................................127 Packet iiiPage 41
City of Newark
Table of Contents
Page
Statistical Section, Continued
Principal Property Tax Payers......................................................................................................................................128 Property Tax Levies and Collections............................................................................................................................129 Taxable Sales by Category ...........................................................................................................................................130 Ratio of Outstanding Debt by Type .............................................................................................................................131 Direct and Overlapping Governmental Activities Debt ...............................................................................................132 Legal Bonded Debt Margin Information......................................................................................................................133 Demographic and Economic Statistics.........................................................................................................................134 Principal Employers .....................................................................................................................................................135 Full‐Time Equivalent City Government Employees by Function/Program..................................................................136 Operating Indicators by Function/Program.................................................................................................................137 Capital Asset Statistics by Function/Program..............................................................................................................138 Packet ivPage 42
City of Newark
Finance Department
37101 Newark Boulevard
Newark, CA 94560
January 28, 2022
Honorable Mayor, Members of the City Council, and the Citizens of the City of Newark, California:

I am pleased to present the City’
s Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2021. Various financing covenants and rules associated with restricted funding sources require the City of Newark, California (City) to publish a complete set of audited financial statements presented in conformance with generally accepted accounting principles (GAAP). This report was prepared by the City’s Finance Department to fulfill that requirement.

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

The independent certified public accounting firm, Lance, Soll and Lunghard Certified Public Accountants (LSL CPAs) has rendered its unmodified opinion on the City’ s financial statements for the
year ended June 30, 2021. The independent auditor’s report is presented at the front of the financial section of this ACFR.

Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction with it.

Profile of the City of Newark, California
The City of Newark, incorporated in 1955, is located on the eastern shores of San Francisco Bay at the end of the Dumbarton Bridge and in the northern part of Silicon Valley, fifteen miles north of San Jose, California. The City’s geographic location in the San Francisco Bay Area (Bay Area) is a significant factor affecting its economic position. The City represents a diverse and skilled workforce and isin close proximity to universities and some of California’slargest and fastest growing companies. As of January 1, 2021, the City’s population was estimated by the California Department of Finance at 48,859, approximately 2.9% of the total Alameda County population. The City occupies an area of approximately fourteen square miles.

The City is a general law city and operates under the Council‐Manager form of government. Under thisform of government, policy‐making and legislative authority are vested in a five‐member elected City Council consisting of the Mayor and four Council members. The Mayor and City Council are responsible for passing ordinances, adopting, and amending the operating and capital budgets, appointing various committee members, and hiring both the City’s manager and attorney. The City Manager is responsible for carrying out Packet Page 43
the policies and ordinances established by the City Council, for overseeing the day‐to‐day operations of the City, and for appointing the various department heads.

The City provides a full range of municipalservicesto its citizens. These include police protection; construction and maintenance of streets, parks, storm drains, and other infrastructure; recreational activities and cultural events; planning,zoning, and other community development activities; and administrative servicesincluding information systems, human resources, and finance. Fire protection services are contracted from the Alameda County Fire Department.

The City’s financial report includes all funds and activities of the City of Newark as the primary government and its component unit, the Newark Public Financing Authority. The Newark Public Financing Authority is a blended component unit because the governing board consists of all five members of the City Council.

A biennial operating budget and capital improvement plan are adopted by City Council resolution prior to July 1 of even number years. This serves as the foundation for Newark’s financial planning and control. The City Council must approve all budget amendments and transfers between funds by resolution during the fiscal year. The City Council places the legal level of budgetary control at the department level. The City Manager is authorized to transfer unencumbered appropriations within a department within the same fund and is also authorized to assign funds from the unassigned fund balance per Statement No. 54 of the Governmental Accounting Standards Board (GASB 54).

Local Economy
The City’s financial condition at the close of fiscal year 2021 was much stronger than anticipated when compared to the beginning of the fiscal year. Although some revenues were impacted more significantly than others, the overall impact does not appear as drastic as most cities a2nticipated. Property tax revenue, representing the general fund’s largest revenue source, was not adversely impacted by the pandemic. New housing units continue to be added to the assessor’sroll, along with commercial developments. The City’stotal property assessmentroll was $11.2 billion for fiscal year 2021, marking an 8.3% increase over the prior period.

Salestax revenue,representing the second largestsource ofrevenue, increased from pre‐pandemic levels, but other revenue categories such as transient occupancy tax, utility users tax, and investment earnings have yet to rebound. Anticipating revenue shortfalls for the fiscal year, all City Departments implemented expenditure reduction measures which included reducing temporary staff, a hiring freeze for non‐essential positions, eliminating scheduled compensation amendments, and reducing citywide contractualservices.

The City will continue to be prudent with its financial resources by closely monitoring impacted revenue as a result of the pandemic and maintaining sufficient reserves to help mitigate the City’s budget should another recession scenario occur.

To mitigate the negatives effects ofthe pandemic,the U.S. government passed two relief packages which have provided direct fiscal funding to the City. The Coronavirus Aid, Relief, and Economic Security Act (CARES ACT), which was signed into law on March 27, 2020, appropriated $150 billion in grants to state and local governments. Ofthis amount,the City received $604,950 which was allocated to three programs: (1) $35,297 for residential rental assistance, (2) $530,000 for a small business grants program, and (3) $39,293 for enforcement of Public Health orders and food distribution events. The American Rescue Plan Act (ARPA), which was signed into law on March 11, 2021, appropriated $1.9 trillion of stimulus and relief proposals with $350 billion going to state and local governments. The City has been allocated $11.8 million, with the first $5.9 million tranche received in July 2021.

Packet viPage v 44
Long‐Term Financial Planning and Relevant Financial Policies The City established the General Fund Emergency Reserve, currently at $11.4 million, to be a set‐aside for catastrophic events. The current Fund Balance Policy sets a 15% goal for this reserve based on the final operating expenditures and currently is at 17.4%. This amount is reflected as unassigned fund balance in the General Fund, but it is prudent fiscal policy to recognize that these funds are not intended for normal unanticipated expenditures.

The Fiscal Uncertainty Reserve was developed as a budget‐balancing reserve, to mitigate a possible economic slowdown, recession, or other revenue losses. The current Fund Balance Policy sets a goal for this reserve at 10% of the final operating expenditures and is currently at $10.7 million, which is 16.3% of the fiscal year 2021 general fund operating expenditures.

The General Fund Emergency Reserve and Fiscal Uncertainty Reserve are both higher than the goals specified in the current Fund Balance Policy as it is anticipated both reserves will be increased when the Fund Balance Policy is updated during fiscal year 2022.

The Capital Project Reserve was established by the City to fund capital improvement projects. During fiscal year 2021, budgeted transfers of $28.5 million, mainly from the Debt Service Fund,supported the increase in capital outlays for the new Civic Center project. These transfers partially offset the $42.6 million of capital outlay spending. The net decrease of $14.3 million for fiscal year 2021 resulted in a negative ending fund balance of $11.0 million in the Capital Projects Fund.

The Pension and Other Post‐Employment Benefits (OPEB) Reserve had an initial deposit of $5.0 million when it was adopted in fiscal year 2017. Subsequent transfers were made to this reserve after the initial deposit, and during fiscal year 2021, the first additional discretionary payment was paid to CalPERS in the amount of $10.0 million, leaving fiscal year 2021 with a $6.8 million balance. This reserve was established to offset future pension and OPEB required contributions as a result of the City opting to use a 20‐year amortization schedule instead of the ramp‐up method for unfunded liabilities.

Major Initiatives
The City of Newark is currently working on several exciting planning projects:

NewPark Place
The vision of this project is to transform the greater NewPark mall into a premier, vibrant, urban place which includes modern residential areas, generous retail and dining opportunities, and community venues, inviting pedestrian oriented streets and public spaces, and enhanced sidewalks, bicycle lanes, and transit facilities. In 2021, the City and Brookfield Properties, the owner of NewPark Mall, began implementing the NewPark Place Specific Plan which includes these two projects:
 Phase A Residential project – a residential/retail mixed‐use project with a total of 319 dwelling units, approximately 3,700 square feet of ground floor retail, and approximately 12,900 square feet of amenities. The structure would be six stories with five residential levels situated over ground floor retail and amenities. Brookfield will provide 29 units of affordable housing, available to households at very low, low, and moderate‐income levels.

Packet vii Page 45
 Costco ‐ the proposed Costco warehouse and 32‐pump retail fuel facility will be located at the southern portion of NewPark Mall on the site previously occupied by JC Penny and Burlington Coat Factory.

Bayside Newark
This project area includes 233 acres of land that has contained various industrial, manufacturing, chemical processing and salt production facilitiessince the early twentieth century. The City envisions a transit‐oriented community built nextto a Dumbarton Commuter Railstation, which will provide a broad range of new housing, retail and business opportunities in western Newark. The hope is for a neighborhood that takes advantage of itstransit investment to facilitate alternative commutes, dramatically increase pedestrian mobility and to take full advantage of itslocation and surrounding open space resources.

Old Town Newark
TheOld TownNewark Specific Plan aimsto bring together over 30 years of planning and analysisto implement long‐standing goals for revitalization, including new public spaces, improvements to Thornton Avenue, and opportunitiesfor newmultifamily and residentialmixed‐use development.Atthe same time,this plan provides stepsto maintain the existing housing stock and avoid displacement of existing residents and businesses.

Planning Areas 3 and 4
This is an approximately 950‐acre site located in southwest Newark and planned uses for this area include an 18‐hole golf course, approximately 1,200 housing units of various densities, and elementary school, open space wetland mitigation areas, as well as retention of existing light industrial, institution, and City Fire State, park, and community center uses.

In addition to the above projects, the City is working on the following projects and has recently worked to extend the approval of Measure PP:
 ERP Implementation – The City went live with the new ERP system in July 2020, implementing the core financemodule, along with the human resources and payrollsubsystems. Additionalmodules are being implemented to gain full benefit from a more complete and integrated system.  Citywide Parks Master Plan – The City Council has approved a Citywide Parks Master Plan. The Plan forms the framework for future park construction and improvements.  Newark Pedestrian and Bicycle Master Plan – This long‐range planning document provides a vision of Newark'sfuture biking and walking environment. It is also a necessary tool that will allow the City to compete for discretionary local, State, and federal funding.  Approval of Measure PP – In November 2020, Newark voters approved to extend the City’slocally controlled Utility Users’ Tax (UUT) funding at the current rate of 3.25% to maintain vital services which include public safety, fire protection, streets and pothole repair, and crime and gang‐ prevention programs.

Packet viii Page 46
Awards and Acknowledgements
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 Newark for its annual comprehensive financial report (ACFR) for the fiscal year ended June 30, 2020. To be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized, comprehensive annual financial report. The report must satisfy both generally accepted accounting principles and applicable legal requirements. The Certificate of Achievement is the highest form of recognition in the field of government accounting.

A Certificate of Achievement is valid for a period of one year only. We believe that our current ACFR continues to meet the Certificate of Achievement for Excellence in Financial Reporting Program's requirement, and we are submitting it to GFOA to determine its eligibility for another certificate.

The preparation of the ACFR would not be possible without the dedicated efforts of the entire Finance Department staff. I would like to express special acknowledgment to our auditors LSL CPAs, for their cooperation and assistance.

Finally, sincere appreciation is expressed to the City Manager, the Mayor, and members of the City Council for their unfailing support for maintaining the highest standards of professionalism in review and management of the City's finances.

Respectfully submitted,
Krysten Lee
Finance Director
Packet ixPage 47
Newark
Residents
Mayor &
City Council
Advisory
Committees
City Manager
Assistant City
Manager
Finance
Director
Community
Development
Director
Police Chief Alameda County
Fire Services
Parks & Public
Works Director
Recreation &
Community
Services Director
City
Commissions
City Clerk
Human
Resources
Information
Technology
Systems
Budget &
Accounting
Treasury &
Debt
Administration
Fiscal
Compliance
Animal &
Business
License
Police
Administration
Police
Operations
Community
Preservation
Planning
Economic
Development
Successor Agency to
the Redevelopment
Agency
Parks
Maintenance
Building
Inspection
Engineering
General
Recreation
Services
Senior
Services
Community
Services
Fire
Operations
Fire
Prevention
City Attorney
Packet Page x 48
Newark Mayor & City Council
June 30, 2021
Alan L. Nagy
Mayor
Mike Bucci
Vice Mayor
Luis L. Freitas
Council Member
Maria “Sucy” Collazo
Council Member
Michael K. Hannon
Council Member
Packet xiPage 49

CITY STAFF
June 30, 2021

CITY MANAGER
David Benoun

ASSISTANT CITY MANAGER
Lenka Hovorka

CITY ATTORNEY
Kristopher Kokotaylo

EXECUTIVE TEAM

FINANCE DIRECTOR
Krysten Lee

POLICE CHIEF
Gina Anderson

PUBLIC WORK DIRECTOR
Soren Fajeau

COMMUNITY DEVELOPMENT DIRECTOR
Steven Turner

RECREATION & COMMUNITY SERVICES DIRECTOR
David Zehnder
FIRE CHIEF (ALAMEDA CO. FIRE DEPARTMENT)
William McDonald
Packet xii Page v 50
Packet xiii Page 51
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Newark
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2020
Executive Director/CEO
Packet xivPage v 52

Lance, Soll & Lunghard, LLP 2151 River Plaza Dr., Suite 150 Sacramento ,CA95833 Phone: 916.503.9691 INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the City Council
City of Newark, California
Report on the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of City of Newark, California, (the City) as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Newark, California, as of June 30, 2021, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these 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 date of the financial statements.

Packet Page 53
To the Honorable Mayor and Members of the City Council
City of Newark, California
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 the 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.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

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

Other Reporting Responsibilities
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the budgetary comparison schedules for the General Fund, Gas Tax Fund, Housing Impact Fees, Community Development Impact Fees, Park Improvement Impact Fees, and Measure B – 1986 ACTIA special revenue funds, the schedule of changes in net pension liability and related ratios - agent multiple employer plan, the schedule of plan contributions- agent multiple employer plan, the schedule of proportionate share of the net pension liability – cost-sharing plan, the schedule of plan contributions - cost sharing plan, the schedule of changes in net OPEB liability and related ratios, and the 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.

Packet Page 2 54
To the Honorable Mayor and Members of the City Council
City of Newark, California
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 nonmajor fund financial statements and budgetary schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the 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 nonmajor fund financial statements and budgetary schedules are fairly stated, in all material respects in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory section and statistical section but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the financial statements does 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 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 January 28, 2022 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.

Sacramento, California
January 28, 2022
Packet Page 3 55
Packet Page 4 56
City of Newark
Management’s Discussion and Analysis
For the year ended June 30, 2021
As management of the City of Newark (City), we offer readers of the City's financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2021. Summary reports showing comparisons of current financial information with that of the previous year are included to enhance the clarity and usefulness of the reports. To gain a broad perspective of the City and its financial activities, we encourage the reader to consider the information presented here, in conjunction with the information that we have provided in the letter of transmittal presented at the beginning of this report.

FINANCIAL HIGHLIGHTS
Government‐wide:
 At June 30, 2021, the assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources by $197.4 million (net position). This is an increase of $21.1 million from the prior fiscal year.

Of this amount, $74.2 million are restricted, and ($31.1) million represents unrestricted net position.  Government‐wide revenues include program revenues of $32.0 million and general revenues of $59.8 million, an increase of $13.3 million total revenues from the prior fiscal year.  Government‐wide expenses totaled $69.6 million, an increase of $0.3 million from the prior year's total of $69.3 million.

Governmental Funds:
 At the close of fiscal year 2021, the City's governmental fundsreported combined fund balances of $135.4 million, a decrease of $23.6 million in comparison with the prior fiscal year.  Governmental Fund revenues were $91.3 million in fiscal year 2021, an increase of $12.9 million from fiscal year 2020.
 Governmental Fund expenditures were $114.8 million in fiscal year 2021, an increase of $17.0 million compared to fiscal year 2020.
 Approximately 26.1% of the fund balance ($34.3 million) is unassigned and available for spending at the government's discretion, although $11.4 million is designated as emergency and $10.7 million asfiscal uncertainty reserves. The remainder of the fund balance is either non‐spendable, restricted, committed, or assigned to indicate that it is 1) non‐spendable form or legally required to be maintained intact ($0.1 million), 2) restricted for specific purposes ($85.8 million), 3) committed for specific purposes ($6.8 million), or 4) assigned for specific purposes ($8.3 million).

OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the City's basic financialstatements, which consists of three components: 1) Government‐wide Financial Statements, 2) Fund Financial Statements, and 3) Notes to Basic Financial Statements. Required Supplementary Information is included in addition to the basic financial statements.

The Government‐wide Financial Statements provide readers with a broad overview of the City's financial position and activities, using accounting methods similar to those in private‐sector businesses. The Government‐wide Financial Statements include the Statement of Net Position and the Statement of Activities.

Packet Page 5 57
City of Newark
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2021
 The Statement of Net Position ‐ presents information on all of the City's assets, liabilities, and deferred inflows/outflows of resources, with the residual amount reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
 The Statement of Activities ‐ provides information on how the City's net position changed during the most recent fiscal year. All revenues earned and expenses incurred during the fiscal year are reported in this statement, regardless of the timing of related cash flows.

The Government‐wide Financial Statements only present governmental activities because the City does not have business‐ type activities. The governmental activities of the City include general government, public safety, streets and parks, community development, and recreation. Property and local taxes, investment earnings, charges for services, operating and capital grants, and contributions finance these activities.

Fund Financial Statements
Funds are groupings of related accounts that are used to maintain control over resources that have been segregated for specific activities or objectives. The City usesfund accounting to ensure and demonstrate compliance with finance‐related legal requirements. The funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental Fund Financial Statements are used to report essentially the same functions 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 the available balances of spendable resources at the end of the fiscal year. This information may be useful in assessing the City's near‐ term financial requirements.

In order to better understand the City's long‐term and near‐term financial requirements, it is useful to compare the information presented for governmental funds with the information provided for governmental activities in the Government‐wide Financial Statements. Both the governmental funds' balance sheet and statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate the comparison between governmental funds and governmental activities.

The City reports 31 governmental funds. The 11 major governmental funds are the General Fund, Gas Tax Fund, Public Safety Facilities Impact Fees Fund, Community Service Facilities Impact Fees Fund, Transportation Facilities Impact Fees Fund, Housing Impact Fees Fund, Community Development Impact Fees Fund, Park Improvement Impact Fees Fund, Measure B – 1986 ACTIA Special Revenue Fund, Capital Projects Fund, and Public Financing Authority, which are presented separately in the Governmental Fund Financial Statements. Information on the other governmental funds is combined into a single aggregated presentation as non‐major governmental funds. Individual fund data for each non‐major governmental fund is provided in the form of combining statements as supplementary information elsewhere in the report.

Proprietary funds of the City consist of the internal service funds. The 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 its Equipment Replacement, Equipment Operations, Office Support, Building Maintenance, Public Liability Self‐Insurance, and Workers' Compensation functions. Because these services predominantly benefit governmental activities, they have been included within governmental activities in the Government‐wide Financial Statements.

Packet Page 6 58
City of Newark
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2021
The City's six internal service funds are combined into a single aggregated presentation in the Proprietary Fund Financial Statements. Individual fund data for the internal service funds is provided in the form of combining statements as supplementary information elsewhere in the report.

Fiduciary funds are used to account for resources held for the benefit of parties external to the City. These funds are not included in the Government‐wide Financial Statements because the resources of the fiduciary funds are not available to support the City's programs. The City's Fiduciary Fund Financial Statements provide financial information about the activities of the Special Assessment Districts, for which the City acts solely as an agent. These funds are reflected as Custodial Funds in the Statements of Changes in Fiduciary Net Position. The Redevelopment Agency Successor funds are also included in the Fiduciary Funds as Private Purpose Trust Funds after the dissolution of the Redevelopment Agency Funds as of January 31, 2012.

Notes to Basic Financial Statements
The Notes to Basic Financial Statements provide additional information that is essential to a full understanding of the data presented in the Government‐wide and Fund Financial Statements.

Supplementary Information
The Required Supplementary Information includes budgetary comparison schedules for the General Fund, Gas Tax Fund, Housing Impact Fees Fund, Community Development Impact Fees Fund, Park Improvement Impact Fees Fund, Measure B – 1986 ACTIA Fund, Capital Projects Fund and the funding progress of the City's pension plans.

Combined and individual fund statements and schedules provide information for non‐major governmental and internal service funds and are presented immediately following the Required Supplementary Information.

GOVERNMENT‐WIDE FINANCIAL ANALYSIS
The table on the following page shows the condensed comparative Statement of Net Position for the fiscal years ended June 30, 2021 and 2020.

Packet Page 7 59
City of Newark
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2021
As noted earlier, net position may serve over time as a useful indicator of the City's financial position. The City's assets and deferred outflows of resources exceeded its liabilities and deferred inflows by $197.4 million (net position), which was an increase of $20.8 million from the prior fiscal year. Capital assets increased by $39.3 million and was mainly due to the new Civic Center building which opened in the Spring of 2021. Other assets decreased $28.5 million, reflecting the spending down of fiscal agent cash for construction costs related to the new Civic Center.

The mostsignificant portion of the City's net position, $154.3 million, reflectsitsinvestment in capital assets (e.g., land, buildings, machinery, equipment, and vehicles), less any related outstanding debt used in acquiring those assets. The City uses these capital assets to provide a variety of services to its residents; consequently, they are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resourcesrequired to repay the outstanding debt must be provided from othersourcessince the capital assets cannot be used to liquidate the debt.

Another portion of the City's net position, $74.2 million, are resources subject to external restrictions and may only be used for the purpose intended by the entities that provided these funds to the City. The remaining balance of the City's net position of ($31.1) million represents the unrestricted net position, which, if this was a positive amount, may be used to finance daily operations without constraints established by debt covenants or other legal requirements. This is currently reported as a deficit due to the recognition of the net pension and net OPEB liabilities asrequired by GASBs 68 and 75, respectively.

Assets: 2021 2020
Cash and investments $142.7 $137.8
Capital assets, net 227.3 188.0
Other assets 15.3 43.8
Total assets 385.3 369.6
Deferred outflow of resources 28.7 17.9
Liabilities:

Long‐term liabilities 193.4 185.4
Other liabilities 15.9 17.2
Total liabilities 209.3 202.6
Deferred inflow of resources 7.3 8.2
Net Position:

Net investment in capital assets 154.4 153.5
Restricted 74.4 89.4
Unrestricted (31.4) (66.3)
Total net position $197.4 $176.6
Governmental Activities
Comparative Statements of Net Position
June 30, 2021 and 2020
(Amounts in Millions)
Packet Page 8 60
City of Newark
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2021
The following table shows the condensed comparative Statements of Activities and Changes in Net Position for the fiscal years ended June 30, 2021 and 2020.

Revenues: 2021 2020
Program revenues:

Charges for services $ 26.2 $ 14.9
Operating grants and contributions 1.9 1.0 Capital grants and contributions 3.8 4.2 Total program revenus 31.9 20.1 General revenues:

Taxes:

Property tax              24.4              22.8
Sales tax              20.5              17.4
Transient occupancy tax                2.9                5.4 Utility users tax                3.4                3.4 Other local taxes                2.5                2.1 Franchise fees                4.2                4.2
Use of money and property                0.9                2.5 Miscellaneous                1.0                0.3
Total general revenues              59.8              58.1 Total revenues             91.7             78.2
Expenses:

General government 6.8 6.7 Public safety:

Fire              11.6              16.3
Police              27.2              22.3
Public works              13.3              14.0
Community development                2.6                1.9 Recreation                5.9                5.6
Interest on long‐term debt                2.2                2.4 Total net position $          69.6 $          69.2
Increase (decrease) in net position              22.1                9.0 Loss on disposal of asset               (1.0) ‐
Net position ‐ beginning, restated           176.3           167.6 Net position ‐ ending $        197.4 $        176.6
Governmental Activities
Packet Page 9 61
City of Newark
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2021
The City's expenses totaled $69.6 million in fiscal year 2021. These expenses were offset by program revenues of $31.9 million and general revenues of $59.8 million, resulting in a $22.1 million increase in net position. This was reduced by $1 million for loss on disposal of an asset, resulting in an ending net position of $197.4 million.

Program Revenues – Program Revenues include fees and other specific charges designed to cover all or part of the costs of programs provided to the residents. Charges for services revenue was $11.3 million higher compared to the prior fiscal year and was largely due to the $12.7 million increase in Community Development fees and services.

Recreation experienced a significant drop in revenue ($1.4 million) as a result of the Silliman Community Activity Center closure due to the COVID‐19 pandemic. Operating grants and contributions revenue of $1.9 million had an increase of $0.9 million while capital grants and contributions of $3.9 million decreased $0.4 million.

General Revenues – The City’s general revenues were $1.7 million more compared to the prior fiscal year. Property tax revenues,representing the largest portion of generalrevenues were $1.6 million, or 7% higher,reflecting the continued increase of assessed value of secured property in the City. Sales tax revenue was $3.1 million higher compared to the prior fiscal year. Negative impacts of the COVID‐19 pandemic, namely decreased activity due to travel hesitancy, can be seen in the transient occupancy tax which was $2.5 million lower compared to the prior fiscal year. Interest earnings, reflecting lower rates and a negative fair market value adjustment, also resulted in a $1.6 million drop compared to fiscal year 2020.

Expenses – Expenses increased slightly by $0.3 million, and reflects continued prudent spending by staff in light of the COVID‐19 pandemic.

FUND FINANCIAL ANALYSIS
Governmental Funds
The City's governmental funds provide information on short‐term inflows, outflows, and balances of spendable resources. This information is useful in evaluating the City's financing requirements. In particular, unassigned fund balance may serve as a useful measure of the government's net resources available for spending at the end of the fiscal year.

On June 30, 2021, the City's governmental funds reported combined fund balances of $135.4 million, a decrease of $23.6 million in comparison with the prior fiscal year. Approximately 26.1% of the fund balance amount ($34.3 million) is unassigned and available for spending at the government's discretion. The remainder of the fund balance is either non‐spendable, restricted, committed, or assigned to indicate that it is 1) non‐spendable form or legally required to be maintained intact ($0.1 million), 2) restricted for specific purposes ($85.8 million), 3) committed for specific purposes ($6.8 million), or 4) assigned for specific purposes ($8.3 million). Further details of the fund balances can be found in Note 11 in the disclosures.

Governmental revenues in fiscal year 2021 were $91.3 million, an increase of $12.9 million from the prior fiscal year.

Property and sales tax were up $1.6 million and $3.1 million, respectively, compared to fiscal year 2020. The largest increase in revenue came from the Housing Impact Fees, which went up $9.8 million as a result of new residential homes construction. As noted above, interest earnings were $1.6 million lower as a result of lower rates and a negative fair market value adjustment, and transient occupancy tax revenue also fell due to COVID‐19 travel hesitancy and restrictions.

Packet 10Page 62
City of Newark
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2021
Governmental expenditures in fiscal year 2021 were $114.8 million, an increase of $17.0 million from the prior fiscal year. Much of this increase was due to the $10.0 million additional discretionary payment made to CalPERS to fund pension liability. The balance of the increase was due largely due to capital outlays for the construction of the new Civic Center.

General Fund
The General Fund is the primary operating fund of the City. At June 30, 2021, the spendable assigned and unassigned fund balance of the General Fund was $53.7 million, while total fund balance was $60.6 million. The City Council has maintained operating reserves to provide the City a cushion for unexpected events, such as legal liability or costs associated with an unexpected disaster. The assigned fund balance also includes balances assigned for use in equipment replacement and the fire side fund.

The fund balance of the City's General Fund decreased by $1.5 million from fiscal year 2020. Overall revenues of $64.6 million were offset by $65.9 million of expenditures and net transfers out of $0.2 million. The General Fund also includes a restatement of the beginning fund balance which resulted from the reorganization of funds into separate reportable funds.

Gas Tax Revenue Fund
The Gas Tax Fund, previously reported in Non‐Major Funds, is now reported under Major Funds. The State Gas Tax Fund showed $0.5 million of expenditures over revenue during fiscal year 2020. This fund accounts for gas tax funds received from the State. These funds are to be used for various street construction and maintenance projects.

Public Safety Facilities Impact Fees Fund
The Public Safety Facilities Impact Fees Fund was previously included in the Capital Projects Fund. This fund accounts for fees which provide for funding for additional or improved police and fire services whose need is generated by new development within the City. Revenues of $1.0 million were added to the fund balance during fiscal year 2021 as no expenditures were incurred.

Community Service Facilities Impact Fees Fund
The Community Service Facilities Impact Fees Fund was previously included in the Capital Projects Fund. This fund accounts for fees which provide for funding for additional or improved governmental, social, and cultural facilities and are generated by new development within the City. Revenues of $0.9 million were added to the fund balance during fiscal year 2021 as no expenditures were incurred.

Transportation Facilities Impact Fees Fund
The Transportation Facilities Impact Fees Fund was previously included in the Capital Projects Fund. This fund accounts for fees which provide for funding of additional traffic signals or improved traffic operations. Revenues of $1.6 million were added to the fund balance during fiscal year 2021 as no expenditures were incurred.

Packet 11Page 63
City of Newark
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2021
Housing Impact Fee Special Revenue Fund
The Housing Impact Fees Special Revenue Fund is comprised of fees adopted by the City Council over several years, and accounts for fees collected into the City’s affordable housing fund that are restricted for and to be used solely to increase and preserve the supply of housing affordable to households of very low, low, and moderate incomes. The Housing Impact Fee Special Revenue Fund reported $9.8 million more revenue than the prior year due to increased residential development projects compared to fiscal year 2020.

Community Development Impact Fee Fund
The Community Development Impact Fee Fund, previously reported in Non‐Major Funds, is now reported under Major Funds. This fund accounts for fees received from developers and grants to maintain city‐owned parks. Revenues over expenditures were $0.4 million in fiscal year 2021.

Park Improvement Impact Fee Fund
The Park Improvement Impact Fee Fund, previously reported in Non‐Major Funds, is now reported under Major Funds.

This fund accounts for fees to be used in updating and implementing the Newark General Plan and zoning ordinance, which is needed by all new development within the City. Revenues over expenditures were $2.9 million in fiscal year 2021.

Measure B – 1986 ACTIA Special Revenue Fund
The Measure B – 1986 ACTIA Special Revenue Fund accounts for funds previously received by the Alameda County Transportation Authority as part of a 1986 sales tax measure passed by the voters of Alameda County to finance various transportation improvements. However, the measure expired in 2002, and the City no longer receives sales tax revenues related to the measure. The expenditures in this fund during fiscal year 2021 were from street construction projects.

Capital Projects Fund
The Capital Projects Fund showed a $42.6 million deficiency of expenditures over revenue during fiscal year 2021, which is attributable to the construction of the new Civic Center. The net change in fund balance, however, was a decrease of $14.3 million as transfers from the Debt Service Fund partially offset the $42.6 million net deficiency of expenditures.

Public Financing Authority Debt Service Fund
The City issued $63.0 million of 2019 Certificates of Participation (COPs) to help finance the construction of the new civic center in fiscal year 2020. Cumulative project expenditures over the two fiscal years total $75.4 million, with planned transfers from the Measure GG fund to be made during fiscal year 2022 to make up the difference.

Proprietary Funds
The City's proprietary funds consist of the Internal Service Funds with a combined total net position of $10.6 million at the end of fiscal year 2021. Total operating expenses of $5.2 million were less than operating revenues of $6.8 million, resulting in a change of net position of $1.6 million.

Packet 12Page 64
City of Newark
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2021

GENERAL FUND BUDGETARY HIGHLIGHTS
The budgetary comparison schedule for the General Fund is presented in the Required Supplementary Information.

Fiscal year 2021 wasthe first year of the City's biennial budget, which was adopted on June 25, 2020. The General Fund revenue budget for fiscal year 2021 was amended during the year, increasing it by $8.8 million as the effects of the pandemic became more apparent. Actual revenues were $0.7 million over the final amended budget and $9.5 million over the original budget. This increase was primarily due to higher property tax assessed valuations and higher than anticipated sales tax revenue when the budget was last amended for the COVID‐19 pandemic. Actual expenditures, excluding transfers out, for the fiscal year were $2.7 million under the final amended budget and $7.4 million over the original budget. The variance compared to the final budget reflects prudent spending by staff, with less spending on contractual services.

CAPITAL ASSETS
The City's capital assets include those assets that are used in the performance of the City's services. At June 30, 2021, the City's capital assets used in governmental activities amounted to $227.2 million, net of depreciation.

Capital assets for governmental activities are presented below to illustrate changes from prior fiscal year (amounts in millions):

Additional information on capital assets can be found in Note 4 to the Basic Financial Statements. 2021 2020
Land $4.4 $4.4
Park land 30.1 30.1
Landscaping 8.7 8.7
Street trees 0.7 0.7
Construction in progress 2.7 45.4
Building and improvements 125.5 44.8
Infrastructure:

Streets 79.0 76.8
Sidewalks, curbs, gutters, and walls 17.4 17.2
Street lights 3.2 3.2
Traffic signals 3.9 3.9
Equipment 15.1 12.6
Less: accumulated depreciation (63.5) (59.8)
Total capital assets $227.2 $188.0
Governmental Activities
Packet 13Page 65
City of Newark
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2021
LONG‐TERM OBLIGATIONS
On June 30, 2021, the City had long‐term debt outstanding of $73.0 million compared to $72.6 million in the prior year.

The City's long‐term debt obligations at June 30, 2021 and 2020 were as follows (amounts in millions):

Not included in the above total outstanding debt amount is the Area Improvement District Special Assessment Bonds issued to finance public improvements within specific districts in the City. At June 30, 2021, a total of $2.6 million in Area Improvement District debt was outstanding. This debt is secured by special assessments levied on the real property within the district issuing the debt. Although the City acts as the district's agent in the collection and remittance of assessments, the City is not obligated in any manner for repayment of these bonds.

Additional information on long‐term obligations is provided in Note 5 to the Basic Financial Statements.

ECONOMIC FACTORS AND CURRENT BIENNIAL BUDGET
The City's adopted biennial budget for 2020‐2022 recognized that:
 Prior to the COVID‐19 pandemic, the economy will continue to be steady, but the imprint of the recession continues to play a role in future planning, making it prudent to continue using conservative projections and retain emergency reserves.
 Capital project expenditures will continue to focus on preserving City assets, meeting regulatory requirements, and safety issues. In addition, allocation of resources will be given to projects that improve service levels to the community, take advantage of outside funding matches, and implement community priorities.

Additional information about the City's economy and financial planning and policies is provided in the accompanying letter of transmittal in the Introductory Section of this report.

REQUEST FOR INFORMATION
This financial report is designed to provide citizens, taxpayers, customers, investors, and creditors with a general overview of the City'sfinances. Questions concerning any information provided in thisreport orrequestsfor additional information should be addressed to the City of Newark, Finance Department, 37101 Newark Boulevard, Newark, California 94560‐3796.
2021 2020
Certificates of participation $71.6 $72.6
Capital lease obligations 1.4 0.0
Total long‐term debt $73.0 $72.6
Governmental Activities
Packet 14Page 66

BASIC FINANCIAL STATEMENTS
Packet 15Page 67
City of Newark
Statement of Net Position
June 30, 2021
Primary
Government
Governmental
ASSETS Activities
Current assets:

Pooled cash and investments $ 142,719,227
Receivables:

Accounts                     76,889
Taxes               5,513,064
Special assessments                     85,878
Intergovernmental                   865,853
Interest                     54,099
Other, net                   438,425
Supplies and other assets                   238,690
Restricted assets:

Cash with fiscal agent 8,031,218
Total current assets 158,023,343
Noncurrent assets:

Capital assets, not being depreciated 46,618,989 Capital assets, net of depreciation 180,652,311 Total noncurrent assets 227,271,300
Total assets 385,294,643

DEFERRED OUTFLOW OF RESOURCES
Pension related amounts             28,160,529
OPEB related amounts                   435,896
Deferred charge on refunding                   148,350
Total deferred outflows of resources             28,744,775

LIABILITIES
Current liabilities:

Accounts payable               4,774,515
Accrued liabilities               1,290,745
Unearned revenues                   790,018
Deposits payable               5,115,530
Compensated absences ‐ due within one year               2,382,923 Claims payable ‐ due within one year                   716,512 Capital lease obligations ‐ due within one year                   296,263 Bonds payable ‐ due within one year                   545,000 Total current liabilities             15,911,506
Noncurrent liabilities:

Compensated absences ‐ due in more than one year                     24,070 Claims payable ‐ due in more than one year               1,665,777 Capital lease obligations ‐ due in more than one year               1,105,235 Long‐term debt ‐ due in more than one year             71,039,589 Net pension liability           115,831,521
Net OPEB obligation               3,754,978
Total noncurrent liabilities           193,421,170
Total liabilities           209,332,676

DEFERRED INFLOW OF RESOURCES
Pension related amounts               5,644,218
OPEB related amounts               1,681,820
Total deferred inflow of resources               7,326,038

NET POSITION
Net investment in capital assets 154,433,563
Restricted for:

Capital projects             25,648,998
Debt service               6,181,040
Grant‐funded projects               1,183,957
Other Projects             41,394,594
Total restricted             74,408,589
Unrestricted            (31,461,448)
Total net position $       197,380,704
See accompanying Notes to Basic Financial Statements
Packet 16Page 68
City of Newark
Statement of Activities
For the year ended June 30, 2021
Net (Expense)
Revenue
and Changes
in Net Position
Operating Capital
Charges for Grants and Grants and Governmental
Functions / Programs Expenses Services Contributions Contributions Total Activities Primary Government:

Governmental activities:

General government $ 6,826,647 $ 190,054 $ 172,200 $ ‐ $ 362,254 $ (6,464,393) Public safety:

Fire 11,581,705 157,552 ‐ ‐ 157,552 (11,424,153) Police 27,256,723 1,608,798 267,518 ‐ 1,876,316 (25,380,407) Public works 13,283,447 9,582,805 761,916 3,490,224 13,834,945 551,498 Community development 2,589,599 14,220,187 654,466 ‐ 14,874,653 12,285,054 Recreation 5,889,166 482,161 52,818 330,258 865,237 (5,023,929) Interest on long‐term debt (unallocated) 2,164,667 ‐ ‐ ‐ ‐ (2,164,667) Total governmental activities $ 69,591,954 $ 26,241,557 $ 1,908,918 $ 3,820,482 $ 31,970,957 (37,620,997)

General Revenues:

Taxes:

Property tax        24,417,052
Sales tax        20,474,926
Transient occupancy tax           2,916,050
Utility users tax           3,366,768
Other local taxes           2,497,364
Total taxes        53,672,160
Franchise fees           4,177,233
Intergovernmental—motor vehicle in‐leiu, unrestricted                35,913 Use of money and property              947,798
Miscellaneous              949,893
Total general revenues        59,782,997
Loss on disposal of asset         (1,036,493)
Change in net position        21,125,507
Net position ‐ beginning of year, as restated (1)      176,255,197 Net position ‐ end of year $   197,380,704
(1) Restatement of Beginning Net Position:

FY20 Ending Net Position, as reported $   176,637,648
FY20 expenditures paid in FY21             (382,475)
Prior period immaterial correction                        24 FY21 Beginning Net Position, restated $   176,255,197
Program Revenues
See accompanying Notes to Basic Financial Statements
Packet 17Page 69
City of Newark
Balance Sheet
Governmental Funds
June 30, 2021
Public Safety Community Transportation
General Gas Tax Facilities Service Facilities Facilities Fund Fund Impact Fees Impact Fees Impact Fees
ASSETS
Pooled cash and investments $   49,720,022 $    3,130,756 $   4,831,845 $       5,700,428 $     10,832,241 Receivables:

Accounts 18,020 ‐ ‐ ‐ ‐ Taxes 5,436,133 ‐ ‐ ‐ ‐ Special assessments ‐ ‐ ‐ ‐ ‐ Intergovernmental 370,207 ‐ ‐ ‐ ‐ Interest 54,099 ‐ ‐ ‐ ‐ Other 405,226 ‐ ‐ ‐ ‐ Due from other funds 12,690,975 ‐ ‐ ‐ ‐ Inventories 144,761 ‐ ‐ ‐ ‐ Restricted assets:

Cash and invesmtnets with fiscal agents ‐ ‐ ‐ ‐ ‐ Total assets $ 68,839,443 $ 3,130,756 $ 4,831,845 $ 5,700,428 $ 10,832,241 LIABILITIES AND FUND BALANCES:

Liabilities:

Accounts payable $ 2,265,805 $ 91,509 $ ‐ $ ‐ $ ‐ Accrued liabilities 926,074 15,086 ‐ ‐ ‐ Deposit payable 4,712,474 ‐ ‐ ‐ ‐ Unearned revenues 85,911 ‐ ‐ ‐ ‐ Due to other funds ‐ ‐ ‐ ‐ ‐ Total liabilities 7,990,264 ‐ 106,595 ‐ ‐

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 216,607 ‐ ‐ ‐ ‐ Total deferred inflows of resources 216,607 ‐ ‐ ‐ ‐ Fund Balances:

Non‐spendable            144,761                       ‐                       ‐                           ‐                           ‐ Restricted                         ‐       3,024,161      4,831,845          5,700,428        10,832,241 Committed        6,824,442                       ‐                       ‐                           ‐                           ‐ Assigned        6,440,000                       ‐                       ‐                           ‐                           ‐ Unassigned      47,223,369                       ‐                       ‐                           ‐                           ‐ Total fund balances      60,632,572       3,024,161      4,831,845          5,700,428        10,832,241 Total liabilities, deferred inflows of
resources, and fund balances $   68,839,443 $    3,130,756 $   4,831,845 $       5,700,428 $     10,832,241 Special Revenue Funds
See accompanying Notes to Basic Financial Statements
Packet 18Page 70
Capital Projects Debt Service
Fund Fund
Community Park    Other Total
Housing Development Improvement Measure B Capital Projects Public Financing Governmental Governmental Impact Fees Impact Fees Impact Fees 1986 ACTIA Fund Authority Funds Funds $   34,540,543 $    4,129,874 $    3,632,691 $                   ‐ $                         ‐ $                       ‐ $    15,397,460 $   131,915,860 ‐                        ‐                        ‐ ‐                                      58,209                               ‐                    660                 76,889 ‐                        ‐                        ‐ ‐                                                 ‐               76,931           5,513,064 ‐                        ‐                        ‐ ‐                                                 ‐                               ‐               85,878                 85,878 ‐                        ‐                        ‐ ‐                                                 ‐                               ‐            495,646              865,853 ‐                        ‐                        ‐ ‐                                                 ‐                               ‐                          ‐                 54,099 ‐                        ‐                        ‐ ‐                                                 ‐                               ‐               25,736              430,962 ‐                        ‐                        ‐ ‐                                                 ‐                               ‐                          ‐         12,690,975 ‐                        ‐                        ‐ ‐                                                 ‐                               ‐                          ‐              144,761 ‐                        ‐                        ‐ ‐                                                 ‐              8,031,218                         ‐           8,031,218 $   34,540,543 $    4,129,874 $    3,632,691 $                   ‐ $              58,209 $           8,031,218 $    16,082,311 $   159,809,559 $             4,770 $            4,298 $                    ‐         56,953$ $        1,363,348 $                            ‐ $         650,459 $        4,437,142 ‐                        ‐                        ‐ ‐                                                 ‐                               ‐                          ‐              941,160 ‐                        ‐                        ‐ ‐                                    319,891                               ‐               83,165           5,115,530 ‐                        ‐                        ‐ ‐                                                 ‐                               ‐            704,107              790,018 ‐                        ‐                        ‐     1,863,169           9,307,809               1,519,997                          ‐         12,690,975 4,770               4,298                        ‐     1,920,122         10,991,048               1,519,997         1,437,731         23,974,825 ‐                        ‐                        ‐                     ‐                 58,209                               ‐            188,576 $           463,392 ‐                        ‐                        ‐ ‐                                      58,209                               ‐            188,576              463,392 ‐                        ‐                        ‐ ‐                                                 ‐                               ‐                          ‐              144,761 34,535,773       4,125,576       3,632,691                      ‐                            ‐               6,511,221       12,588,382         85,782,318 ‐                        ‐                        ‐ ‐                                                 ‐                               ‐                          ‐           6,824,442 ‐                        ‐                        ‐ ‐                                                 ‐                               ‐         1,867,622           8,307,622 ‐                        ‐                        ‐    (1,920,122)        (10,991,048)                               ‐                          ‐         34,312,199 34,535,773       4,125,576       3,632,691    (1,920,122)        (10,991,048)              6,511,221       14,456,004       135,371,342 $   34,540,543 $    4,129,874 $    3,632,691 $              ‐ $              58,209 $           8,031,218 $    16,082,311 $   159,809,559 Special Revenue Funds
Packet 19Page 71
Packet 20Page 72
City of Newark
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
Total Fund Balances - Total Governmental Funds $ 135,371,342

Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet. 223,423,028 Long-term debt and compensated absences that have not been included in the governmental fund activity:

Bonds payable (62,295,000)
Unamortized bond premium/discounts (9,289,589)
Unamortized loss on defeasance 148,350
Compensated absences (2,406,993) (73,843,232)
Net pension liability not included in governmental fund activity (115,831,521) Net OPEB liability not included in governmental fund activity (3,754,978) Deferred outflows related to pension items are not included in the governmental activity 28,160,529 Deferred inflows related to pension items are not included in the governmental activity (5,644,218) Deferred outflows related to OPEB items are not included in the governmental activity 435,896 Deferred inflows related to OPEB items are not included in the governmental activity (1,681,820) Deferred inflows related to Unavailable Revenue are not included in the governmental activity 463,392
Accrued interest payable for the current portion of interest due on bonds has not been reported in governmental funds (330,181)
Internal service funds are used by management to charge the costs of certain activities, such as equipment management and self-insurance, to individuals. The assets and liabilities of the internal service funds must be added to the statement of net position - Cash and investments available for operations 10,803,367 - Other receivables 7,463
- Supplies and other assets 93,929
- Capital assets 3,848,272
- Accounts payable and accrued liabilities (356,777)
- Capital lease obligation (1,401,498)
- Claims payable (2,382,289) 10,612,467

Net Position of Governmental Activities $ 197,380,704
June 30, 2021
Amounts reported for governmental activities in the Statement of Net Position were different because:

See accompanying Notes to Basic Financial Statements
Packet 21Page 73
City of Newark
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2021
Public Safety Community Transportation
General Gas Tax Facilities Service Facilities Facilities Fund Fund Impact Fees Impact Fees Impact Fees
REVENUES:

General property taxes $ 24,417,052 $ ‐ $ ‐ $ ‐ $ ‐ Other local taxes 29,255,108 ‐ ‐ ‐ ‐ Special assessments ‐ ‐ ‐ ‐ ‐ Licenses, permits and fees 9,463,603 ‐ 1,022,072 837,195 1,575,689 Other governmental agencies 392,581 1,065,732 ‐ ‐ ‐ Current service charges 443,290 ‐ ‐ ‐ ‐ Fines and forfeitures 377,704 ‐ ‐ ‐ ‐ Use of money and property (5,796) 9,317 14,365 16,948 32,204 Other revenue 295,383 ‐ ‐ ‐ ‐ Total revenues 64,638,925 1,075,049 1,036,437 854,143 1,607,893 EXPENDITURES:

Current:

General government 6,207,961 ‐ ‐ ‐ ‐ Public safety:

Fire 11,707,231 ‐ ‐ ‐ ‐ Police 33,530,393 ‐ ‐ ‐ ‐ Community development 1,439,962 ‐ ‐ ‐ ‐ Recreation 4,520,499 ‐ ‐ ‐ ‐ Public Works 8,479,337 432,171 ‐ ‐ ‐ Capital outlay ‐ 122,847 ‐ ‐ ‐ Debt service:

Principal repayment ‐ ‐ ‐ ‐ ‐ Interest and fiscal charges ‐ ‐ ‐ ‐ ‐ Total expenditures 65,885,383 555,018 ‐ ‐ ‐ REVENUES OVER (UNDER) EXPENDITURES (1,246,458) 520,031 1,036,437 854,143 1,607,893 OTHER FINANCING SOURCES (USES):

Transfers in 26,536 ‐ ‐ ‐ ‐ Transfers out (250,000) ‐ ‐ ‐ ‐ Total other financing sources (uses) (223,464) ‐ ‐ ‐ ‐ Net change in fund balances (1,469,922) 520,031 1,036,437 854,143 1,607,893 FUND BALANCES:

Beginning of year, as restated       62,102,494     2,504,130     3,795,408            4,846,285         9,224,348 End of year $    60,632,572 $   3,024,161 $   4,831,845 $        5,700,428 $   10,832,241 Special Revenue Funds
See accompanying Notes to Basic Financial Statements
Packet 22Page 74
Capital Projects Debt Service
Fund Fund
Community Park    Other Total
Housing Development Improvement Measure B Capital Projects Public Financing Governmental Governmental Impact Fees Impact Fees Impact Fees 1986 ACTIA Fund Authority Funds Funds $                     ‐ $                        ‐ $                  ‐ $                   ‐ $                      ‐ $                         ‐ $                     ‐ $    24,417,052 ‐                            ‐ ‐                     ‐                                                ‐                            ‐                         ‐       29,255,108 ‐                            ‐ ‐                     ‐                                                ‐                            ‐           654,507             654,507 12,384,516              780,453     2,874,677 ‐                                                ‐                            ‐           196,199       29,134,404 ‐                            ‐ ‐                     ‐                                                ‐                            ‐        4,307,001          5,765,314 ‐                            ‐ ‐                     ‐                                                ‐                            ‐                         ‐             443,290 ‐                            ‐ ‐                    ‐                                                ‐                            ‐                         ‐             377,704 102,690                 12,287          10,800                      ‐                          ‐               717,844              37,138             947,797 ‐                            ‐ ‐                     ‐                                                ‐                            ‐                        3             295,386 12,487,206              792,740     2,885,477 ‐                                                ‐               717,844        5,194,848       91,290,562 ‐                            ‐ ‐                     ‐                                                ‐                            ‐                         ‐          6,207,961 ‐                            ‐ ‐                     ‐                                                ‐                            ‐                7,365       11,714,596 ‐                            ‐ ‐                     ‐                                                ‐                            ‐           216,968       33,747,361 ‐              363,287 ‐                     ‐                                                ‐                            ‐           565,297          2,368,546 ‐                            ‐ ‐                     ‐                                                ‐                            ‐           123,992          4,644,491 14,304                            ‐ ‐                               30,209            340,721                            ‐           311,311          9,608,053 ‐                  4,298                     ‐         167,131      42,296,896                            ‐           919,912       43,511,084 ‐                            ‐ ‐                     ‐                                                ‐               525,000                         ‐             525,000 ‐                            ‐ ‐                     ‐                                                ‐           2,508,815                         ‐          2,508,815 14,304              367,585 ‐                             197,340      42,637,617           3,033,815        2,144,845     114,835,907 12,472,902              425,155     2,885,477        (197,340)     (42,637,617)          (2,315,971)        3,050,003      (23,545,345) ‐                            ‐ ‐                     ‐                            28,539,196                            ‐                         ‐       28,565,732 ‐                            ‐ ‐                     ‐                                                ‐        (28,289,196)            (39,293)     (28,578,489) ‐                            ‐ ‐                     ‐                            28,539,196        (28,289,196)            (39,293)             (12,757) 12,472,902              425,155     2,885,477        (197,340)     (14,098,421)        (30,605,167)        3,010,710      (23,558,102) 22,062,871           3,700,421        747,214    (1,722,782)         3,107,373         37,116,388      11,445,294     158,929,444 $  34,535,773 $        4,125,576 3,632,691$ $(1,920,122) $  (10,991,048) $        6,511,221 $  14,456,004 $  135,371,342 Special Revenue Funds
Packet 23Page 75
Packet 24Page 76
City of Newark
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities and Changes in Net Position For the year ended June 30, 2021
Net Change in Fund Balances - Total Governmental Funds $ (23,558,102)

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those assets are allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period.

Capital outlay 43,511,084
Depreciation (4,618,067)
Loss on asset deletion (1,036,493) 37,856,524
Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position.

Principal repayments 525,000
Amortization of deferred charges (29,183)
Amortization of bond premium 441,039 936,856
Unavailable revenue accrual which is not recognized in the governmental fund activity. 463,392 Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period. (17,393)
Compensated absences expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (424,385) Pension expenses recognized in accordance with GASB68 not recognized in the governmental fund activity. 4,168,719
OPEB expenses recognized in accordance with GASB75 not recognized in the governmental fund activity. 134,641
Internal service funds were used by management to charge the costs of certain activities to individual funds. The net revenue of the internal service funds was reported with governmental activities. 1,565,255

Change in Net Position of Governmental Activities $ 21,125,507 Amounts reported for governmental activities in the Statement of Activities and Changes in Net Position were different because:

See accompanying Notes to Basic Financial Statements
Packet 25Page 77
Packet 26Page 78
City of Newark
Statement of Net Position
Proprietary Funds
June 30, 2021
Governmental
Activities -
Internal
Service Funds
ASSETS
Current assets:

Cash and investments $ 10,803,367
Other receivables 7,463
Supplies and other assets 93,929
Total current assets 10,904,759
Noncurrent assets:

Capital assets, net of accumulated depreciation 3,848,272 Total assets 14,753,031

LIABILITIES
Current liabilities:

Accounts payable 337,373
Accrued liabilities 19,404
Capital lease obligation - due within one year 296,263
Claims payable - due within one year 716,512
Total current liabilities 1,369,552
Noncurrent liabilities:

Capital lease obligation - due in more than one year 1,105,235 Claims payable - due in more than one year 1,665,777
Total liabilities 4,140,564

NET POSITION
Net investment in capital assets 2,446,774
Unrestricted 8,165,693
Total net position $ 10,612,467
See accompanying Notes to Basic Financial Statements
Packet 27Page 79
City of Newark
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the year ended June 30, 2021
Governmental
Activities ‐
Internal
Service Funds
OPERATING REVENUES:

Charges to departments $          6,655,000
Other revenue                188,672
Total operating revenues             6,843,672
OPERATING EXPENSES:

Personnel services             1,174,109
Materials and supplies                400,357
Contractual services             1,578,927
Utilities                663,685
Insurance claims and premiums                997,204
Depreciation                426,577
Total operating expenses             5,240,859
OPERATING INCOME (LOSS)             1,602,813
NONOPERATING REVENUES (EXPENSES):

Interest expense                 (50,315)
Total nonoperating revenues (expenses)                 (50,315) INCOME(LOSS) BEFORE TRANSFERS             1,552,498
Transfers in                  12,757
Total transfers                  12,757
Change in net position             1,565,255
NET POSITION:

Beginning of year 9,047,212
End of year $ 10,612,467
See accompanying Notes to Basic Financial Statements
Packet 28Page 80
City of Newark
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2021
Governmental
Activities ‐
Internal
Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from other funds 6,843,672 $
Payments to suppliers/other fund            (2,296,725) Payments to employees            (1,174,109)
Claims paid               (997,204)
Net cash provided by operating activities             2,375,634 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Interfund receipts 12,757
Net cash provided by noncapital financing activities 12,757 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITES:

Payments on capital lease               (297,566)
Acquisition of capital assets               (122,056)
Interest paid and fiscal charges                 (50,315) Net cash used by capital and related financing activities               (469,937) Net increase in cash and cash equivalents             1,918,454 CASH AND CASH  EQUIVALENTS:

Beginning of year 8,884,913
End of year $ 10,803,367

RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES:

Operating income (loss) $ 1,602,813
Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:

Depreciation 426,577
Changes in current assets and liabilities:

Other assets                 (46,541)
Accounts payable and accrued liabilities                392,785 Total adjustments                772,821
Net cash provided (used) by operating activities $           2,375,634 Non‐Cash Investing, Capital, and Financing Activities:

Capital assets aquired through capital lease 1,699,064
Total noncash items $ 1,699,064
See accompanying Notes to Basic Financial Statements
Packet 29Page 81
City of Newark
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2021
Custodial Private Purpose
Funds Trust Fund
ASSETS:

Pooled cash and investments $ 4,543,021 $ ‐ Restricted cash 2,575
Assessment receivables 1,742,578 ‐ Total additions 6,288,174 ‐
LIABILITIES:

Assessment debt payable $ 2,632,212 $ ‐ Total liabilities 2,632,212 ‐

NET POSITION
Restricted for:

Individuals and other 3,655,962 ‐ Total net position $ 3,655,962 $ ‐
See accompanying Notes to Basic Financial Statements
Packet 30Page 82
City of Newark
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2021
Custodial Private Purpose
Funds Trust Fund
ADDITIONS:

Interest income and fair market adjustments $ 13,442 $ ‐ Taxes ‐ 27,014
Total additions 13,442 27,014 DEDUCTIONS:

Administrative expense $ 2,486 $ 24 Total deductions 2,486 24 NET INCREASE (DECREASE) IN FIDUCIARY NET POSITION 10,956 26,990 Net Position ‐ beginning, as restated 3,645,006 (26,990) Net Position ‐ ending $ 3,655,962 $ ‐ See accompanying Notes to Basic Financial Statements
Packet 31Page 83
City of Newark
Notes to Basic Financial Statements
For the year ended June 30, 2021

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Newark (City) have been prepared in conformity with accounting principles generally accepted in the United States (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City’s accounting policies are described below.

A. Reporting Entity
The financial statements of the City of Newark include the financial activities of the City as well as the financial activities of its component unit, the Newark Public Financing Authority (Authority), which is the entity for which the City is financially accountable. The Authority does not issue a separate financial statement. The City Council serves as the governing board to the Authority and is controlled entirely by the City, which also performs all their administrative and accounting functions. Itsfinancial activities have been aggregated and merged (termed “blended”) with those of the City in the accompanying financial statements. The Authority provides financing assistance to the City and has been included in these financial statements in the COPS Interest and Redemption Debt Service Fund.

B. Basis of Accounting, Measurement Focus, and Financial Statement Presentation Government‐Wide Financial Statements
The City’s Government‐Wide Financial Statements include a Statement of Net Position and a Statement of Activities and Changes in Net Position. These statements present summaries of governmental activities for the City. Fiduciary activities of the City are not included in these statements.

These Government‐Wide Financial Statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and liabilities, including capital assets, as well as infrastructure assets, and long‐term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position.

Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.

Certain types of transactions are reported as program revenues for the City in three categories:
 Charges for services
 Operating grants and contributions
 Capital grants and contributions
Certain eliminations have been made as prescribed by GASB Statement No. 34 regarding interfund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business‐type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities and Changes in Net Position, internal service fund transactions have been eliminated.

The following interfund activities have been eliminated: Due to/from other funds, advances to/from other funds, transfers in/out, and interfund charges.

Packet 32Page 84
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2021
The City applies all applicable GASB pronouncements (including all NCGA Statements and Interpretations currently in effect).

Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non‐major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in fund balances as presented in these statements to the net position presented in the Government‐Wide Financial Statements. The City has presented all major funds that met the applicable criteria.

The City reports the following major governmental funds:

The General Fund – is 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. The major revenue sources for this fund are property taxes, sales taxes, utility users tax, franchise fees, licenses, permits and fines, and other charges for services. Expenditures are made for public safety and other services not required to be accounted for in another fund.

Gas Tax Funds – These funds account for gastax fundsreceived from the State and are to be used for various street construction and maintenance projects.

Public Safety Facilities Impact Fee Fund – This fund accounts for fees which provide funding for the additional or improved police and fire services whose need is generated by new development within the City.

Community Service Facilities Impact Fee Fund – This fund accounts for fees which provide funding for additional or improved governmental, social, and cultural facilities whose need is generated by new development within the City.

Transportation Facilities Fee Fund – This fund accounts for fees which provide funding for additional or improved traffic signal, operational, and infrastructure improvements whose need is generated by new development within the City.

The Housing Impact Fee Fund – This fund accounts for fees collected into the City's affordable housing fund that are restricted for and to be used solely to increase and preserve the supply of housing affordable to households of very low, low, and moderate incomes.

Community Development Impact Fee Fund – This fund accounts for fees which provide funding to update and implement the Newark General Plan and zoning ordinance, which is needed by all new development within the City.

Park Improvement Impact Fee Fund – This fund accounts for fees which provide funding for park land and new improvements.

Measure B (1986 ACTIA) – This fund was previously reported under the Measure B (ACTC) Fund but was reclassified asits own fund during fiscal year 2019‐20. Thisfund previously accounted for amountsreceived Packet 33Page 85
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2021
by ACTA (Alameda County Transportation Authority) as part of a 1986 sales tax measure passed by the voters of Alameda County to finance various transportation improvements. However, the measure expired in 2002 and the City no longer receives sales tax revenues related to the measure. This fund now accounts for Measure B grant funding.

The Capital Projects Fund – This fund accounts for financial resources used in major capital acquisition and construction activities and in the renovation, replacement, and maintenance of the City’s major capital assets.

The Public Financing Authority – accounts for funds reserved for the debt financing of the City’s New Civic Center. This fund will accumulate monies earmarked for principal and interest payments.

All governmental funds are accounted for on a spending or “current financial resources” measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures and Changes in Fund Balances presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.

Revenues are recorded when received in cash, except revenues subject to accrual (generally 60 days after year‐ end) are recognized when due. The primary revenue sources, which have been treated assusceptible to accrual by the City, are property tax, sales tax, intergovernmental revenues and other taxes. Expenditures are recorded in the accounting period in which the related fund liability is incurred.

Unearned revenues arise when potential revenues do not meet both the “measurable” and “available” criteria for recognition in the current period. Unearned revenues also arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures.

In subsequent periods, when both revenue recognition criteria are met or when the government has a legal claim to the resources, the unearned revenue is removed from the Balance Sheet and recognized as revenue.

The Reconciliation of the Fund Financial Statements to the Government‐Wide Financial Statements is provided to explain the differences created by the integrated approach of GASB Statement No. 34.

Proprietary Fund Financial Statements
Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses and Changes in Fund Net Position, and a Statement of Cash Flows for each major proprietary fund.

Proprietary funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Fund Net Position present increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.

Internal service fund balances and activities have been combined with governmental activities in the Government‐Wide Financial Statements, and are comprised of the following funds:

Packet 34Page 86
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2021
The Internal Service Funds – account for equipment replacement and operations, office support, building maintenance, and public liability and worker’s compensation self‐insurance; all of which are provided to other departments on a cost‐reimbursement basis.

Operating revenues in the proprietary fund are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non‐operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non‐operating expenses.

Fiduciary Fund Financial Statements
Fiduciary fund financialstatements consist of a Statement of Changesin Net Position and Statement of Fiduciary Net Position. The fiduciary funds are accounted for using the accrual basis of accounting.

The City reports the following fiduciary funds:

Custodial Funds – accounts for assets held by the City as an agent for individuals, private organizations and other governments. The City’s custodial fund accounts for the assets held by the City as an agent for the Area Improvement District. The financial activities of this fund are excluded from the Government‐Wide Financial Statement but are presented in separate Fiduciary Fund Financial Statements.

The Successor Redevelopment Agency Private Purpose Trust Fund – accounts for assets held by the City for the Successor Redevelopment Agency fund.

C. Cash, Cash Equivalents 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. 40, Deposit and Investment Disclosures (Amendment of GASB No. 3), certain disclosure requirements for Deposits and Investment Risks were made in the following areas:
 Interest Rate Risk
 Credit Risk
 Overall
 Custodial Credit Risk
 Concentrations of Credit Risk
In addition, other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year‐end and other disclosures.

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 Packet 35Page 87
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2021
purchase are stated at amortized cost. Market value is used as fair value for those securities for which market quotations are readily available.

The City participates in an investment pool managed by the State of California titled Local Agency Investment Fund (LAIF) which has invested a portion of the 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. In addition, these Structured Notes and Asset‐Backed Securities are subject to market risk as to change in interest rates.

The City also participates in the California Asset Management Program (CAMP). CAMP is an investment pool offered by the California Asset Management Trust (the Trust). The Trust is a joint powers authority and public agency created by the Declaration of Trust and established under the provisions of the California Joint Exercise of Powers Act (California Government Code Sections 6500 et seq., or the “Act”) for the purpose of exercising the common power of CAMP participants to invest certain proceeds of debt issues and surplus funds. CAMP investments are limited to investments permitted by subdivisions (a) to (n), inclusive, of Section 53601 of the California Government Code.

D. Restricted Cash and Investments
Certain restricted cash and investments are held by fiscal agents for the redemption of bonded debt and for acquisition and construction of capital projects.

E. Receivables
During the course of normal operations, the City carries various receivable balances for taxes, interest, grants and special assessments.

F. Property Taxes
Alameda County assesses properties and bills, collects and distributes property taxes, including special assessments, to the City. The County remits amounts collected and handles all delinquencies. Secured and unsecured property taxes are levied on January 1 of the preceding fiscal year. Secured property tax is due in two installments, on November 1 and March 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 becomes delinquent on August 31. The term “unsecured” refers to taxes on personal property; not real estate, land or buildings.

These taxes are secured by liens on the property being taxed. The City does not participate in the “Teeter Plan” offered by the County, thereby retaining the right to any interest and penalties collected on the delinquent taxes.

Property tax revenues are recognized by the City in the fiscal year they are assessed, provided they are collected within sixty days after the end of the fiscal year.

Packet 36Page 88
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2021
G. Interfund Transactions
Interfund transactions are reflected as loans, services provided reimbursements or transfers. Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the noncurrent portion of interfund loans). Advances between funds, reported in the fund financial statements are not available for appropriation and are non‐spendable financial resources.

Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers.

Transfers between governmental and proprietary funds are netted as part of the reconciliation to the Government‐Wide Financial Statements presentation.

H. 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 reported at acquisition value. The City defines capital assets as assets with an initial, individual cost of more than $10,000 and an estimated useful life in excess of one year.

Depreciation 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 purpose of depreciation is to spread the cost of capital assets equitably among all users over the life of these assets. The amount charged to depreciation expense each year represents that year’s pro rata share of the cost of capital assets. The City has assigned the useful lives listed below to capital assets:

Buildings 60 years
Improvements other than buildings 20 ‐30 years
Infrastructure:

Streets and bridges 40‐50 years
Sidewalks, curbs, gutters, and walls 35‐45 years
Streetlights 25‐30 years
Traffic signals 20 years
Equipment 5‐30 years
Major outlays for capital assets and improvements are capitalized as projects are constructed.

The Governmental Accounting Standards Board (GASB) Statement No. 34 requires the inclusion of infrastructure capital assets in local government’s basic financial statements. In accordance with GASB No. 34, the City has included the value of all infrastructure assets into its Basic Financial Statements. The City defines infrastructure as the basic physical assets that allow the City to function, which consists of the street system.

Packet 37Page 89
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2021
I. Compensated Absences
Compensated absences include unused accrued vacation, general leave, and compensatory time. The City’s liability for compensated absences is recorded at the Entity‐wide level in the Statement of Net Position for Governmental Activities and in Proprietary funds as appropriate. 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.

J. Long‐Term Debt
Government‐Wide Financial Statements – Long‐term debt and other long‐term obligations are reported as liabilities in the appropriate activities.

Bond premiums and discounts, as well as amounts paid related to prepaid bond insurance, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Other issuance costs are expensed in the current period.

Deferred charges arising from losses on defeasance of bonds are deferred and amortized over the shorter of the life of the refunded debt, or the life of the new debt, using straight‐line amortization.

Fund Financial Statements – The governmental fund financial statements do not present long‐term debt but are shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government‐Wide Statement of Net Position.

Bond premiums and discounts are recognized during the current period as other financing sources or uses. Bond proceeds are reported as other financing sources. Issuance costs are recognized during the current period as expenditures.

K. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position or balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position or fund balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.

In addition to liabilities, the statement of financial position or balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position or fund balance that appliesto a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

L. Net Position / Fund Balances
Government‐Wide Financial Statements
In the government‐wide financial statements, Net Position is the excess of all the City’s assets over all its liabilities, regardless of fund. Net Position is divided into three captions under GASB Statement 34. These Packet 38Page 90
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2021
captions apply only to Net Position, which is determined only at the government‐wide level and are described below.

Net Investment in Capital Assets – Describesthe portion of Net Position which isrepresented by the current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets.

Restricted Net Position – 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 principally include developer fees and grant funds received for use on capital projects, debt service requirements, funds received for recycling programs and future waste disposal costs; and fees for use on emergency medical services.

Unrestricted Net Position – Describes the portion of Net Position which is not restricted to use.

Fund Financial Statements

GASB 54 established Fund Balance classifications based largely upon the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. The Fund Financial Statements consist of Non‐spendable, Restricted, Committed, Assigned and Unassigned amounts as described below:

Non‐spendable Fund Balance – includes amounts that are (a) not in spendable form, or (b) legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash, for example, inventories, prepaid amounts, and long‐term notes receivable.

Restricted Fund Balance – includes amounts that can be spent only for the specific purposes stipulated by external resource providers, constitutionally or through enabling legislation. The restriction may effectively be changed or lifted only with the consent of resource providers.

Committed Fund Balance – includes amounts that can only be used for the specific purposes determined by a formal action of the City’s highest level of decision‐making authority, the City Council. Commitments may be changed or lifted only by the City Council taking the same formal action that imposed the constraint originally.

Assigned Fund Balance – includes amounts intended to be used by the City for specific purposes that are neither restricted nor committed. Intent is expressed by City Council or an official to which the City Council has delegated the authority to assign amounts to be used for specific purposes.

Unassigned Fund Balance – is the residual classification for the General Fund and includes all amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose, and the General Fund is the only fund that reports a positive unassigned fund balance amount.

Packet 39Page 91
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2021
The City established the following policies relating to its fund balance classifications:

Committed Fund Balances
 Highest Level of Decision‐Making Authority – The City Council is the highest level of decision‐making authority in terms of established fund balance classifications and creating Committed Fund Balances.  Formal Action Required – Ordinances are the highest‐level action taken by City Council that constitutes the most binding constraint to establish, modify, or rescind a fund balance commitment.  Timing – the City takes formal action to commit any resources as soon as possible upon determining its desire to take such action, but no later than June 30 of the fiscal year in which it applies in order for the action to be valid for the presentation of the annual report.

Assigned Fund Balances
 Approved Authority – the City Council has delegated the authority to the City Manager to assign fund balance amounts to specific purposes when such policies are enacted by the government body.  Specific Policies – the City Council may establish policies as needed to delegate authority to an appropriate official to assign resources to specific purposes in terms of creating, modifying or rescinding Assigned Fund Balances. Such policies are approved by the government body by Resolution.

Expenditure of Funds – Order of Expenditure
 Restricted and Unrestricted Funds – when an expenditure isincurred for purposesfor which both Restricted and Unrestricted Fund Balances are available, the City considers that Restricted Funds are spent first until such funds are exhausted, at which time Committed, Assigned or Unassigned Funds are used.  Committed, Assigned or Unassigned Funds – when an expenditure isincurred where there are no Restricted Funds available, and for which Committed and/or Assigned Fund Balances are available, the City exhausts Committed Funds first until such funds are exhausted and then exhausts Assigned Funds until such funds are exhausted.

Classification of Fund Balances
 The City at least on an annual basis, and by virtue of the adoption of its annual budget, establishes a listing of all Fund Balances and their classifications.

M. New Pronouncements
During the year ended June 30, 2021, the City adopted the following Governmental Accounting Standards Board (GASB) Statements:

GASB Statement No. 84, Fiduciary Activities ‐ The objective of this statement is to enhance the consistency and comparability of fiduciary activity reporting by state and local governments. This Statement also is Packet 40Page 92
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2021
intended to improve the usefulness of fiduciary activity information primarily for assessing the accountability of governments in their roles as fiduciaries. This pronouncement was implemented during FY2021.

GASB Statement No. 90, Majority Equity Interests ‐ The objective of thisstatement isto improve consistency in the measurement and comparability of the financial statement presentation of majority equity interests in legally separate organizations and to improve the relevance of financialstatement information for certain component units. This pronouncement does not apply to the City.

GASB Statement No. 95, Fiduciary Activities – Postponement of Effective Dates of Certain Authoritative Guidance – The following pronouncement has been postponed as a temporary relieve to governments and otherstakeholdersin light of the COVID‐19 pandemic and the new effective date isreflected in the following fiscal year:

GASB Statement No. 87, Leases ‐ The requirements of this statement are effective for reporting periods beginning on or after June 15, 2021.

2. CASH AND INVESTMENTS
The City maintains cash and investment pools for all funds. Certain cash and investment are restricted under the provisions of the City’s debt agreements. These restricted funds are not pooled and are held by trustees.

The following is a summary of cash and investments at June 30, 2021:

Government‐Wide
Statement of Net
Position
Governmental
Activities
Fiduciary Funds
Statement of
Net Position Total
Cash and investments $142,719,227 $4,543,021 $147,262,248 Restricted cash and investments 8,031,218 2,575 8,033,793 Total $150,750,445 $4,545,596 $155,296,041
Packet 41Page 93
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2021
At June 30, 2021, the City’s pooled cash and investments, including restricted funds consisted of the following:

A. Deposits
The carrying amount of the City’s cash deposit was $44,897,269 at June 30, 2021. Bank balances and petty cash before reconciling items were $45,453,274 the total amount of which was insured and/or collateralized with securities held by pledging financial institutions in the City’s name discussed below.

The California Government Code requires banks and savings and loan institutions to secure City’s cash deposits by pledging securities as collateral. The Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of the creditor. Thus, collateral for cash deposits is considered to be held in the City’s name.

The market value of pledged securities must equal at least 110 percent of the City’s cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150 percent of the City’s total cash deposits. The City may and has waived collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation.

The City pooled cash and investment of all funds, excluding restricted funds required to be held by fiscal agents under the terms of the City’s debt agreements. Investment income earned on pooled cash investment is allocated on a quarterly basis to the various funds based on the quarter‐end cash and investment balances.

Interest earnings on restricted cash and investments are credited directly to the related fund.

City Treasury:

Deposits:

Cash on hand $6,216
Deposits with banks 44,897,269
Total deposits 44,903,485
Investments:

California Local Agency Investment Fund 66,264,876
California Asset Management Program 36,093,887
Total investments 102,358,763
Total City Treasury 147,262,248
Cash and Investments with Fiscal Agents:

Money market funds 8,033,793
Total Restricted Cash and investments 8,033,793 Total Cash and Investments $155,296,041
Packet 42Page 94
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2021
B. Investments
Under the provisions of the City’s investment policy, and in accordance with California Government Code, the following investments are authorized:

Under the provisions of bond indentures, the following are authorized investment types for investments held by fiscal agents:

Maximum Minimum Credit
Maximum Percentage of Quality
Authorized Investment Type Maturity Portfolio Requirements California Local Agency Investment Fund None None None
California Asset Management Program None None None
Securities of the U.S. Government 5 years None None
Banker Acceptances 180 days 40% None
Collateralized Certificates of Deposit 5 years 50% None Negotiable Certificates of Deposit 5 years 30% None
Commercial Paper 270 days 25% A‐1
Repurchase Agreements 1 year 50% None
Reverse Repurchase Agreements 92 days 50% None
Minimum Credit
Maximum Quality
Authorized Investment Type Maturity Requirements
U.S. Treasury Obligations None None
Federal Housing Administration Bonds None None
U.S. Agency Securities None None
Senior Debt Obligations None Aaa, AAA
FDIC Insured Deposits None None
Unsecured Certificates of Deposit,
Time Deposits, and Bankers Acceptances 360 days A‐1, P‐1 Commercial Paper 270 days A‐1, P‐1
Money Market funds None AAAm, AAAm‐G
State Obligations None A, A3
Pre‐funded Municipal Obligations None Aaa, AAA
Investment Agreements None AA, Aa
Repurchase Agreements None A
California Asset Management Program None None
California Local Agency Investment Fund None None
Investment approved by Municipal Bond Insurer None None Packet 43Page 95
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2021
C. Risk Disclosures
Interest Risk – Interest rate risk is the fluctuation in fair value of investment due to changes in interest rates.

The City’s exposure to losses caused by rising interest rates is minimized by limiting the average maturity of the City’s investments to not exceed five years. The City had the following investment maturities at June 30, 2021:

Credit Risk – Credit risk is the risk of loss of value of a security or investment due to downgrade of its rating due to a change in the ability of the issuer to fulfill its debt obligation. With the exception of U.S. Treasury securities and authorized pools, no more than 50 percent of the City’s total investment portfolio will be invested in a single security type or with a single financial institution to reduce the City’s exposure to credit risks. The City’s investment in California Agency Investment Funds is not rated.

Custodial Credit Risk – The custodial credit risk for an investment is the risk that in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. None of the City’s investments were subject to custodial credit risk.

D. Local Agency Investment Fund
The City is a voluntary 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 balance is available for withdrawal on demand. The City’s investments with LAIF at June 30, 2021, include a portion of the pooled funds invested in Structured Notes and Asset‐Backed Securities. These investments include the following:

Structured Notes are debt securities (other than asset‐backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options.

Asset‐Backed Securities the bulk of which are mortgage‐backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables.

As of June 30, 2021, the City had $66,264,876 invested in LAIF, which had invested 2.31% percent of the pool investment funds in Structured Notes and Asset‐Backed Securities. 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 fair value of LAIF was calculated by applying a factor of 1.00008297 to the total investments held by LAIF.

Remaining Maturity
(in Months)
Investment Type Totals 12 Months or Less
LAIF $66,264,876 $66,264,876
CAMP 36,093,887 36,093,887
Money market funds 8,033,793 8,033,793 $110,392,556 $110,392,556
Packet 44Page 96
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2021
E. California Asset Management Program
The City participates in the California Asset Management Program (CAMP). CAMP was established in 1989 and has been providing professional investmentservicesto California public agencies. The CAMP Pool is a permitted investment for all local agencies under California Government Code Section 53601 (p). The Pool is managed to earn a high rate of return while preserving principal, providing liquidity, and seeking a stable net asset value of $1.00. Similar to any type of investments, there are several factors such as interest risk, market risk, and etc. that could affect the Pool’s performance.

F. Investment Valuation
Investments (except for money market accounts, time deposits, external investment pools, and commercial paper) are measured at fair value on a recurring basis. Recurring fair value measurements are those that Governmental Accounting Standards Board (GASB) Statements require or permit in the statement of net position at the end of each reporting period. Fair value measurements are categorized based on the valuation inputs used to measure an asset’s fair value:

Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.

The City’s investment in the State of California Local Agency Investment Fund (LAIF), the California Asset Management Program (CAMP) and money market funds are not subject to levelling disclosure.

3. INTERFUND TRANSACTIONS
A. Transfers In/Out
Transfers in/out for the year ended as of June 30, 2021, were as follows:

Transfers from the General fund to the Capital Projects fund were to support ongoing project expenditures.

Transfers from the Public Financing Authority Fund to the Capital Project Fund were to support the new Civic Center project expenditures.

Transfers to the General Fund and Internal Service Funds from the CARES Act Fund were to fund pandemic related expenses such as personal protection equipment and to support a City hosted food program.

General Capital Project Internal Service
Transfers Out Fund Fund Funds TOTAL
General Fund $ ‐ $ ‐ 250,000 $ $ 250,000 Public Financing Authority ‐ 28,289,196 ‐ 28,289,196 Non‐Major Governmental Funds 26,536 ‐ 12,757 39,293 $ 26,536 $ 28,539,196 $ 12,757 $ 28,578,489 Transfers In
Packet 45Page 97
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2021
B. Due to/from other funds
The amounts due to the General Fund from other funds represent reclassified temporary negative cash balances pending grant reimbursements or other receivables. Current interfund balances arise in the normal course of operations and are expected to be repaid shortly after the end of the fiscal year.

4. CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2021 was as follows:

Due to other funds General Fund
Measure B ‐ 1986 ACTIA $1,863,169
Capital Projects                   9,307,809
Public Financing Authority                   1,519,997
Total $12,690,975
Due from other funds
Balance   Retirements & Balance
June 30, 2020 Additions Deletions Transfers June 30, 2021 Governmental activities:

Land $ 4,384,073 $ ‐ $ ‐ $ ‐ $ 4,384,073 Park land 30,107,748 ‐ ‐ ‐ 30,107,748 Landscaping 8,684,784 ‐ ‐ ‐ 8,684,784 Street trees 739,733 ‐ ‐ ‐ 739,733 Construction in progress 45,378,580 544,898 (121,151) (43,099,676) 2,702,651 89,294,918 544,898 (121,151) (43,099,676) 46,618,989 Buildings and land improvements 44,769,978 41,713,278 (2,273,146) 41,287,468 125,497,578 Infrastructure:

Streets 76,827,593 634,613 ‐ 1,555,105 79,017,311 Sidewalks, curbs, gutters, and
walls 17,153,061 ‐ ‐ 224,394 17,377,455 Street lights 3,249,607 ‐ ‐ ‐ 3,249,607 Traffic signals 3,936,784 ‐ ‐ ‐ 3,936,784 Equipment 12,626,311 2,439,415 ‐ 32,709 15,098,435 158,563,334 44,787,306 (2,273,146) 43,099,676 244,177,170 Less accumulated depreciation 59,838,017 5,044,646 (1,357,804) ‐ 63,524,859 98,725,317 39,742,660 (915,342) 43,099,676 180,652,311 $188,020,235 $40,287,558 $(1,036,493) ‐ $ $227,271,300 Nondepreciable assets:

Total nondepreciable assets
Depreciable assets:

Total depreciable assets:

Net depreciable assets

TOTAL ASSETS
Packet 46Page 98
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2021
Depreciation expense was charged to various governmental functions as follows:

5. LONG‐TERM DEBT
The City’s long‐term debt is comprised the following at June 30, 2021:
2019 Certificates of Participation
On September 5, 2019, the City issued $63,345,000 of 2019 Certificates of Participation (COPs) to finance a portion of the construction costs of the new civic center facility, refund the City’s Certificates of Participation (2002 Silliman Community Activity Center/Old Town Fire Station Project), and prepay a 2012 lease agreement.

The 2002 COP refunding resulted in a deferred charge of $204,284, which is the difference between the $8,211,996 reaquisition price of the old debt and the $8,007,712 net carrying amount of the old debt. The refinancing of the 2002 COP and prepayment of the 2012 lease agreement has resulted in a net present value savings to the City of $1,160,849.

The outstanding balance form this direct borrowing contains a provision that states in the event of default, there shall be no right under any circumstance to accelerate lease payments or otherwise declare the borrowing to be immediately due and payable. However, the borrower at its option may terminate the agreement and re‐lease all or any portion of the property.

General Government $108,873
Public Safety 260,365
Public Works 3,011,946
Community Development 46,509
Recreation and Community Services 1,190,376
Internal Service Funds 426,577
Total Depreciation $5,044,646
Accumulated Depreciation on Deleted Assets ($1,357,804) Governmental Activities:

Balance
June 30, 2020 Additions Retirements
Balance
June 30, 2021
Amounts Due
Within One
Year
Direct Borrowings:

Certificates of Participation 2019 62,820,000 $   ‐ $              $      (525,000) $   62,295,000 $        545,000 $63,345,000; 3‐5% due 2042
2019 COPs Premium 9,730,628         ‐                         (441,039)          ‐                    9,289,589 Capital Lease Obligation                    ‐        534,772         (133,693)            401,079           133,693 Equipment lease, due 2024
Capital Lease Obligation                    ‐        320,727           (79,572)            241,155             77,790 Equipment lease, due 2024
Capital Lease Obligation                    ‐        843,565           (84,301)            759,264             84,780 Equipment lease, due 2029
Total $  72,550,628 $ 1,699,064 $  (1,263,605) $   72,986,087 $        841,263 Packet 47Page 99
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2021
Capital Lease Obligations
On September 28, 2018, the City entered into a non‐cancelable lease agreement in the amount of $668,465 with Motorola Solutions, Inc. to acquire a radio communications system that would provide regional interoperability.

Annual lease payments of $133,693 are due on October 1 until 2023. Ownership of the radio system reverts to the City at the end of the lease.

On January 23, 2020, the City entered into a non‐cancelable lease agreement in the amount of $320,727 with PNC Equipment Finance, LLC to acquire a streetsweeper. Annual lease payments are due on August 23 until 2023.

Ownership of the street sweeper reverts to the City at the end of the lease.

On January 23, 2020, the City entered into a non‐cancelable lease agreement in the amount of $843,565 with PNC Equipment Finance, LLC to acquire a fire pumper. Annual lease payments are due on December 23 until 2028. Ownership of the fire pumper reverts to the City at the end of the lease.

Debt Service Requirements
Annual debt service requirements are shown below for all long‐term debt:

Area Improvement District Bonds with No City Commitment Area Improvement Districts (AID) Bonds were issued to finance public improvements within the District. Neither the City’s General Fund nor the full faith and credit of the City is pledged for the repayment of these bonds. The AID bonds will be repaid solely by special assessments levied on the properties within that District. The bonds are secured by the special taxes on those properties.

In May 2013, the AID 26 outstanding bonds of $8,262,257 were advance refunded to benefit property owners with lower debt service payments. The escrow funds were used to pay off the original 1998 bonds on September 2, 2013.

All the AID bonds transactions are accounted for in a separate Custodial fund established by the City for that purpose. As of June 30, 2021, the remaining balance outstanding on these bonds was $2,632,212.

Principal Interest
Year Ending
June 30,
2022 841,263 2,518,805
2023 2,646,543 2,497,175
2024 2,771,995 2,374,473
2025 2,678,182 2,245,594
2026 2,816,164 2,113,363
2027-2031 14,942,351 8,396,377
2032-2036 15,340,000 5,101,600
2037-2041 17,780,000 2,213,700
2042-2043 3,880,000 116,400
Total $ 27,577,487 63,696,498 $
Governmental Activities
Packet Page 48 100
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2021

6. COMPENSATED ABSENCES
The City’s compensated absences include accrued vacation, general leave and compensatory time. The value of unpaid leave is recorded as a liability of the City on the entity‐wide statement of net position.

Changes in compensated absences for the fiscal year ended June 30, 2021 were as follows:

7. DEFINED BENEFIT PENSION PLANS
A. Summary of Pension Plan Balances
Pension related balances presented on the Statement of Net Position as of June 30, 2018 by individual plan are described in the following table. In previous years of the governmental funds, the General Fund was used to liquidate pension liabilities:

B. CalPERS Plan
General Information about the Pension Plan
Plan Description – All qualified permanent and probationary employees are eligible to participate in the City’s Miscellaneous Plan, agent multiple‐employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plan are established by State statute and Local Government resolution. Allsafety qualified permanent and probationary employees are eligible to participate in the City’s Safety Plan, a cost‐sharing multiple‐employer defined benefit pension plan, administered by CalPERS, which acts as a common investment and administrative agent for its participating member employers.

Benefit provisions under the Plan are established by State statue and Local Government 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.

Balance Balance Due Within Due in More
June 30, 2020 Additions Deletions June 30, 2021 One Year than One Year Governmental Activities 1,982,608 $        $1,608,595 $1,184,210 $   2,406,993 $2,382,923 $          24,070 Deferred Deferred Net Deferred
Employer Outflows ‐ Pension Inflows ‐ Pension
Contributions Pension Liability Pension Expense
CALPERS Miscellaneous
Agent‐Multiple Employer Plan $3,873,663 $1,623,132 $47,059,417 $           ‐ $5,975,172 CALPERS Safety
Cost‐Sharing Plan    15,836,100 6,827,634    68,772,104 5,644,218    9,565,768 $19,709,763 $8,450,766 $115,831,521 $5,644,218 $15,540,940 Packet Page 49 101
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2021
Benefits Provided ‐ CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full‐time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits (age 52 for Miscellaneous PEPRA members). All members are eligible for non‐duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit.

The cost‐of‐living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

The Plan’s provisions and benefitsin effect as of the June 30, 2020 measurement date are summarized asfollows:
1 Members with five or more years of PERS service are eligible to retire at age 50 with statutorily reduced benefits (age 52 for Miscellaneous PEPRA members).

During fiscal year 2021, the City also paid $10.0 million to CalPERS as an additional discretionary payment to paydown the pension liability.

Employees Covered – As of the measurement date, the following employees were covered by the benefit terms for each Plan:

Miscellaneous Classic Miscellaneous PEPRA
Hire Date Prior to January 1, 2013 On or after January 1, 2013 Benefit vesting schedule 5 years of service 5 years of service Benefit payment Monthly for life Monthly for life
Retirement age
1 50 52
Monthly benefits, as a % of annual salary 2.5% at age 55 2.0% at age 62 Required employee contribution rates 8.000% 6.250%
Required employer contribution rates 10.206% 13.034%
Required UAL payment $3,038,377 $0
Safety Classic Safety PEPRA
Hire Date Prior to January 1, 2013 On or after January 1, 2013 Benefit vesting schedule 5 years of service 5 years of service Benefit payment Monthly for life Monthly for life
Retirement age
1 50 52
Monthly benefits, as a % of annual salary 3.0% at age 50 2.7% at age 57 Required employee contribution rates 9.000% 11.500%
Required employer contribution rates 21.927% 13.034%
Required UAL payment $4,556,121 $5,834
Inactive employees or beneficiaries currently recveiving benefits 218 Inactive employees entitled to but not yet receiveing benefits 206 Active employees 124
Total 548
Packet Page 50 102
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2021
Contributions – Section 20814(C) of the California Public Employees’ Retirement Law (PERL) 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 actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with 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.

Net Pension Liability ‐ The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2020, using an annual actuarial valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown on the following page.

Actuarial Assumptions – The total pension liabilities in the June 30, 2019 actuarial valuations were determined using the following actuarial assumptions:
1 The mortality table used was developed based on CalPERS’ specific data. The table includes 15 years of mortality improvements using society of Actuaries Scale 90% ofscale MP 2016. For more details on this table, please refer to the December 2017 experience study report (based on CalPERS demographic data from 199 to 2015) that can be found on the CalPERS website.

Discount Rate – The discount rate used to measure the total pension liability was 7.15 percent for the Plan. 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.

Long‐Term Expected Rate of Return ‐ 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 took into account both short‐term and long‐term market return expectations as well as the expected pension fund cash flows. Using historical returns of all of 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 Valuation Date June 30, 2019
Measurement Date June 30, 2020
Actuarial Cost Method Entry‐Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 7.15%
Inflation 2.50%
Salary increases Varies by Entry Age and Service
Mortality 1 Derived using CalPERS' Membership Data for all Funds Post Retirement Benefit Increase Contract COLA up to 2.5% until Purchasing Power Protection Allowance Floor on Purchasing Power applies
Packet Page 51 103
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2021
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 expected real rates of return by asset class are as followed:

Asset Class1
Assumed
Asset
Allocation
Real Return
Years 1-102
Real Return
Years 11+3
Global Equity 50.00% 4.80% 5.98%
Global Fixed Income 28.00% 1.00% 2.62%
Inflation Assets - 0.77% 1.81%
Private Equity 8.00% 6.30% 7.23%
Real Assets 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
Total 100.00%
(2) An expected inflation of 2.0% used for this period. (3) An expected inflation of 2.92% used for this period. (1) In the System's CAFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-Term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.

Changes in the Net Pension Liability
The changes in the Net Pension Liability for the Miscellaneous Plan follow:

Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2019 (MD) $     121,932,587 $   78,478,048 $      43,454,539 Service cost 1,935,397              ‐                               1,935,397 Interest on the total pension liability 8,658,150              ‐                               8,658,150 Differences between actual and
expected experience             1,582,587 ‐                               1,582,587 Contribution ‐ employer                         ‐        3,532,890          (3,532,890) Contribution ‐ employee                         ‐        1,219,082          (1,219,082) Net investment income                         ‐        3,929,919          (3,929,919) Benefit payments, including refunds
of employee contributions            (6,779,708)       (6,779,708)                       ‐ Administrative expenses                         ‐          (110,635)               110,635 Other miscellaneous income/(expense)                         ‐ ‐                                          ‐ Net changes             5,396,426        1,791,548            3,604,878 Balance at June 30, 2020 (MD) $     127,329,013 $   80,269,596 $      47,059,417 Increase (Decrease)
Packet Page 52 104
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2021
As of June 30, 2021, the City reported a net pension liability of $68,772,104 for its proportionate share of the net pension liability of the safety plan.

The City’s proportionate share of the net pension liability of the safety risk pool for the safety plan as of measurement dates June 30, 2020 and 2021 were as follows:

Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability of the City for the 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:

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

Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions ‐ For the year ended June 30, 2021, the City recognized pension expense of $5,975,172 and $9,565,768, for the Miscellaneous and Safety plans, respectively. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to the pension plan from the following sources:

Proportion ‐ June 30, 2019 1.0374%
Proportion ‐ June 30, 2020 1.0322%
Change ‐ Increase (Decrease) ‐0.0052%
Miscellaneous Safety
Plan Plan
1% Decrease
Net Pension Liability 62,834,202                  96,264,308 Current Discount Rate
Net Pension Liability 47,059,417                  68,772,104 1% Increase
Net Pension Liability 33,947,795                  46,212,148

6.15%

7.15%

8.15%
Deferred Outflows Deferred Inflows
Miscellaneous Plan of Resources of Resources
Pension contributions subsequent to 3,873,663 $               ‐ $ measurement date
Differences between actual and expected experience 1,150,855 Changes in assumptions                              ‐ ‐ Net differences between projected and actual
earnings on pension plan investments 472,277                     ‐ Total $              5,496,795 $                     ‐
Packet Page 53 105
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2021
$3,873,663 and $15,836,100 for the Miscellaneous and Safety plans, respectively, 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 ending June 30, 2022. Other amounts reported as deferred outflows or resources and deferred inflows of resources related to the pension plan will be recognized as pension expense as follows:

8. OTHER POST EMPLOYMENT BENEFITS
A. Plan Description
The City participates in the CalPERS healthcare programs Public Employees Medical and Hospital Care Act (PEMHCA) providing retirees the statutory minimum contribution using the 5 percent “unequal method.” The City currently pays for the cost of the retiree PEHMCA funded CERBT and are paying the annual required contribution of the employer (ARC).

B. Employees Covered
As of the June 30, 2020 actuarial valuation, the following current and former employees were covered by the benefit terms under the Retiree Health Plan:

Deferred Outflows Deferred Inflows
Safety Plan of Resources of Resources
Pension contributions subsequent to 15,836,100 $            ‐ $ measurement date
Differences between actual and expected experience                 5,332,927 Changes in assumptions                                 ‐                229,082 Net differences between projected and actual
earnings on pension plan investments                 1,494,707                             ‐ Differences in proportions                                 ‐             3,867,886 Differences between actual and proportionate
share of contributions                                 ‐             1,547,250 Total $           22,663,734 $         5,644,218
TOTAL ALL PLANS $          28,160,529 $        5,644,218 For the
Fiscal Year Miscellaneous Safety
Ending June 30, Plan Plan Total
2022 $         496,518 $        (961,468) $   (464,950) 2023            428,932             599,222     1,028,154 2024            377,628             796,732     1,174,360 2025            320,054             748,930     1,068,984 TOTAL $     1,623,132 $      1,183,416 $ 2,806,548
Deferred Outflow/(Inflows) of Resources
Packet Page 54 106
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2021
C.  Contributions
The City is not required by law or contractual agreement to provide funding for retiree health costs other than the pay‐as‐you‐go amount necessary to provide current benefits to retirees. However, during fiscal year 2017, the City joined the California Employers’ Retiree Benefit Trust Program to prefund OPEB obligations of the City.

The prefunding plan is a trust fund that is intended to perform an essential governmental function within the meaning of Section 115 of the Internal Revenue Code as an agent multiple‐employer defined benefit plan. For the measurement period 2019‐2020 the City contributed $697,381, including $183,300 in implicit rate subsidy, $374,657 deposit to CERBT, and $139,424 contribution in the form of a direct benefit payment (not reimbursed by trust).

D. Net OPEB Liability/ Actuarial methods and assumptions:

The City’s net OPEB liability was measured as of June 30, 2020 and the total OPEB Liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2019 using the following actuarial methods and assumptions:

E. Discount Rate
The discount rate used to measure the total OPEB liability was 6.00%. The projection of cash flows was used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determine contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries.

Therefore, the long term expected rate of return on OPEB plan investments was applied to all periods of projected benefits payments to determine the total OPEB liability.

Inactive employees or beneficiaries currently receiving benefits 85 Inactive employees entitled to but not yet receiving benefits 105 Active Employees 181
Total 371
Valuation Date June 30, 2019
Measurement Date June 30, 2020
Actuarial Cost Method Entry‐Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 6.00%
Inflation 2.50%
Contribution Policy Contributes full ADC
Projected Salary Increases 3.00%
Assumed Wage Inflation 3.00%
Investment Rate of Return 6.90%
Mortality MacLeod Watts Scale 2020
Post Retirement Benefit
Increase MacLeod Watts Scale 2020
Healthcare Cost Trend Rate 4.00% to 5.40%
Packet Page 55 107
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2021
F. Changes in the net OPEB Liability
The changes in the net OPEB liability for the OPEB plan are as follows:

G. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for the measurement period ended June 30, 2020:

H. Sensitivity of the Net OPEB Liability to Changes in Health Care Cost Trend Rates The following presents the net OPEB liability of the City if it were calculated using heath care cost trend rates that are count rate that is one percentage point lower or one percentage point higher than the current rate, for the measurement period ended June 30, 2020:

Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
Balance at June 30, 2019 (MD) $ 6,200,213 $ 2,306,235 $ 3,893,978 Service cost 270,070 ‐ 270,070 Interest on the total OPEB liability 378,535 ‐ 378,535 Contribution ‐ employer ‐ 697,381 (697,381) Net investment income ‐ 91,520 (91,520) Benefit payments, including refunds ‐ of employee contributions (322,724) (322,724) ‐ Administrative expenses ‐ (1,296) 1,296 Net changes 325,881 464,881 (139,000) Balance at June 30, 2020 (MD) $ 6,526,094 $ 2,771,116 $ 3,754,978 Increase (Decrease)
Current
1% Decrease Discount Rate 1% Increase

5.00% 6.00% 7.00%
Net OPEB Liability 4,611,469 $     $          3,754,978 $     3,047,959 Current
Current Trend Trend Current Trend
‐1.00% 5.40% +1%
Net OPEB Liability 2,968,945 $     $          3,754,978 $     4,727,233 Packet Page 56 108
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2021
I.  Recognition of Deferred Outflow and Deferred Inflows of Resources Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The recognition period differs depending on the source of the gain or loss:

J. OPEB Expense and Deferred Outflows/ (Inflows) of Resources Related to OPEB For the fiscal year ended June 30 2021, the City recognized OPEB expense of $205,036. For the fiscal year ended June 30 2021, the City reported deferred outflows of resources related to OPEB from the following sources:

The $339,677 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2020 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2022. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:

Net difference between projected and actual
earnings on OPEB plan investments
5 years
All other amounts Expected average remaining service
lifetime (EARSL) of all members
Deferrred Deferrred
Outflows of Inflows of
Resources Resources
OPEB contributions subsequent to $       339,677 $                     ‐ measurement date
Differences between actual and expected
experience                   ‐        1,134,157
Changes in assumptions             58,950           547,663 Net differences between projected and actual
earnings on investments             37,269 ‐
Total $       435,896 $     1,681,820
Recognized
Net Deferred
Fiscal Year Outflows (Inflows)
Ending June 30, of Resources
2022 ($272,852)
2023 (261,763)
2024 (257,104)
2025 (255,914)
2026 (285,963)
Thereafter (252,005)
Packet Page 57 109
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2021

9. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disaster. The City has established various self‐ insurance programs and participated in pooled approach to manage excessive risks and provide liability coverage.

The City participates in Pooled Liability Assurance Network Joint Powers Agency (PLAN JPA). PLAN JPA provides liability insurance coverage, claims and risk management to its participating members. PLAN JPA provides $25,000,000 of general liability coverage per occurrence and is responsible for paying claims in excess of the City’s $100,000 deductible. For the year ended June 30, 2021, the City paid PLAN JPA $834,245 in premiums.

PLAN JPA has not determine the value of the City’s interest in its net position. Financial statements may be obtained from PLAN JPA, 1750 Creekside Oaks Drive, Suite 200, Sacramento, CA 95833.

The City participates in the Local Agency Workers Compensation Excess Joint Powers Authority (LAWCX), which covers workers compensation claims in excess of $350,000 per claim, up to statutory limits. LAWCX is governed by a board of directors comprised 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 contributions to each risk pool equal 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. In each of the past three years, the amount of settlements did not exceed insurance coverage. During the fiscal year ended June 30, 2021, the City contribution was $687,967. Audited financial statements may be obtained from Bickmore Risk Services, 1831 K Street, Sacramento, CA 95814.

The City’s risk management activities are recorded in the Public Liability Self‐Insurance and Workers’ Compensation Self‐Insurance Internal Service Funds. Estimated liabilities are recorded when a loss is deemed probable and the amount of the loss can be reasonably estimated. Claims that have been incurred but not reported (IBNRs) are also included in the liability estimates. As discussed above, the City has coverage for such claims, but it has retained the risk for the deductible or uninsured portion of these claims.

The following is a summary of the changes in general liability claims and workers’ compensation liabilities for the past three fiscal years:

General Liability
Claims
Workers'
Compensation
Claims Total 2020 2019
Liability at beginning of fiscal year 633,097 $ $ 1,406,130 $2,039,226 $2,228,093 $ 2,565,586 Claims and changes in estimates (106,487) 798,486 691,999 216,036 176,947 Claims Payments (11,036) (337,900) (348,936) (404,902) (514,440) Liability at end of fiscal year 515,573 1,866,716 2,382,289 2,039,227 2,228,093 Current Portion 158,140 $ $ 558,372 $ 716,512 $ 806,830 $ 817,422 2021
Packet Page 58 110
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2021

10. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Newark that previously had reported a redevelopment agency within the reporting entity of the city as a blended component unit. On January 12, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 9910. After the date of dissolution, the assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private‐ purpose trust fund) in the financial statements of the City.

In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments up to an amount equal to the former increment on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.

As of fiscal year ending June 30, 2021, the outstanding loan from the City to the Redevelopment Successor Agency was paid in full.

Packet Page 59 111
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2021

11. FUND BALANCES
Fund balances are presented in the following categories: non‐spendable, restricted, committed, assigned and unassigned (see Note 1 for a description of these categories). A detailed schedule of fund balances at June 30, 2021 is as follows:

General Fund Gas Tax
Funds
Public Safety
Facilities
Impact Fees
Community
Service Facilities
Impact Fees
Transportation
Facilities
Impact Fees
Housing
Impact Fees
Nonspendable fund balance:

Supplies and other assets $ 144,761 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ 144,761 ‐ ‐ ‐ ‐ ‐ Restricted fund balance for:

Public safety ‐ ‐ 4,831,845 ‐ ‐ ‐ Community service facilities ‐ ‐ ‐ 5,700,428 ‐ ‐ Transportation facilities ‐ ‐ ‐ ‐ 10,832,241 ‐ Housing impact ‐ ‐ ‐ ‐ ‐ 34,535,773 Community development ‐ ‐ ‐ ‐ ‐ ‐ Park improvement ‐ ‐ ‐ ‐ ‐ ‐ Highway and streets ‐ 3,024,161 ‐ ‐ ‐ ‐ Recycling programs ‐ ‐ ‐ ‐ ‐ ‐ Health and welfare ‐ ‐ ‐ ‐ ‐ ‐ PEG activities ‐ ‐ ‐ ‐ ‐ ‐ Debt reserves ‐ ‐ ‐ ‐ ‐ ‐ Landscape and lighting ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3,024,161 4,831,845 5,700,428 10,832,241 34,535,773 Committed fund balance for:

Pension/OPEB Reserves 6,824,442 ‐ ‐ ‐ ‐ ‐ 6,824,442 ‐ ‐ ‐ ‐ ‐ Assigned fund balance for:

Fire side fund 440,000 ‐ ‐ ‐ ‐ ‐ Equipment replacement 6,000,000 ‐ ‐ ‐ ‐ ‐ Waste disposal program ‐ ‐ ‐ ‐ ‐ ‐ Art in public places ‐ ‐ ‐ ‐ ‐ ‐ 6,440,000 ‐ ‐ ‐ ‐ ‐ Unassigned fund balance
Capital assets acquisition ‐ ‐ ‐ ‐ ‐ ‐ Catastrophic contingencies 11,430,299 ‐ ‐ ‐ ‐ ‐ Fiscal uncertainty 10,721,887 ‐ ‐ ‐ ‐ ‐ Measure GG 16,262,236 ‐ ‐ ‐ ‐ ‐ Unallocated 8,808,947 ‐ ‐ ‐ ‐ ‐ 47,223,369 ‐ ‐ ‐ ‐ ‐ Total Fund Balances $ 60,632,572 $ 3,024,161 $ 4,831,845 $ 5,700,428 $ 10,832,241 $ 34,535,773 Packet Page 60 112
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2021
Community
Development
Impact Fees
Park
Improvement
Impact Fees
Measure B ‐
1986 ACTIA
Fund
Capital
Projects Fund
Public
Financing
Authority
Other
Government
Funds
Total
Nonspendable fund balance:

Supplies and other assets $ ‐ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ $ 144,761 ‐ ‐ ‐ ‐ ‐ ‐ 144,761 Restricted fund balance for:

Public safety ‐ ‐ ‐ ‐ ‐ 1,221,055 6,052,900 Community service facilities ‐ ‐ ‐ ‐ ‐ ‐ 5,700,428 Transportation facilities ‐ ‐ ‐ ‐ ‐ ‐ 10,832,241 Housing impact ‐ ‐ ‐ ‐ ‐ ‐ 34,535,773 Community development 4,125,576 ‐ ‐ ‐ ‐ 939,588 5,065,164 Park improvement ‐ 3,632,691 ‐ ‐ ‐ ‐ 3,632,691 Highway and streets ‐ ‐ ‐ ‐ ‐ 6,948,817 9,972,978 Recycling programs ‐ ‐ ‐ ‐ ‐ 798,096 798,096 Health and welfare ‐ ‐ ‐ ‐ ‐ 25,067 25,067 PEG activities ‐ ‐ ‐ ‐ ‐ 942,223 942,223 Debt reserves ‐ ‐ ‐ ‐ 6,511,221 ‐ 6,511,221 Landscape and lighting ‐ ‐ ‐ ‐ 1,713,536 1,713,536 4,125,576 3,632,691 ‐ ‐ 6,511,221 12,588,382 85,782,318 Committed fund balance for:

Pension/OPEB Reserves ‐ ‐ ‐ ‐ ‐ ‐ 6,824,442 ‐ ‐ ‐ ‐ ‐ ‐ 6,824,442 Assigned fund balance for:

Fire side fund ‐ ‐ ‐ ‐ ‐ ‐ 440,000 Equipment replacement ‐ ‐ ‐ ‐ ‐ ‐ 6,000,000 Waste disposal program ‐ ‐ ‐ ‐ ‐ 18,638 18,638 Art in public places ‐ ‐ ‐ ‐ ‐ 1,848,984 1,848,984 ‐ ‐ ‐ ‐ ‐ 1,867,622 8,307,622 Unassigned fund balance
Capital assets acquisition ‐ ‐ ‐ (10,991,048) ‐ ‐ (10,991,048) Catastrophic contingencies ‐ ‐ ‐ ‐ ‐ ‐ 11,430,299 Fiscal uncertainty ‐ ‐ ‐ ‐ ‐ ‐ 10,721,887 Measure GG ‐ ‐ ‐ ‐ ‐ ‐ 16,262,236 Unallocated ‐ ‐ (1,920,122) ‐ ‐ ‐ 6,888,825 ‐ ‐ (1,920,122) (10,991,048) ‐ ‐ 34,312,199 Total Fund Balances $ 4,125,576 $ 3,632,691 $ (1,920,122) $ (10,991,048) $ 6,511,221 $ 14,456,004 $ 135,371,342 Packet Page 61 113
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2021

12. CONSTRUCTION AND OTHER SIGNIFICANT COMMITMENTS
The following is a summary of construction commitments at the end of the fiscal year:

The City had no significant encumbrances outstanding as of June 30, 2021.

13. DEFICIT FUND BALANCE
As of June 30, 2021, no nonmajor funds of the City reported a deficit fund balance/net position.

14.    RESTATEMENT OF NET POSITION AND FUND BALANCE
Project
Authorizations Expenditures
Unexpended
Authorizations
Central Avenue RR Design 2,754,000 $            $   2,112,107 $                    641,893 New Civic Center            76,933,296    75,627,195                    1,306,101 Thornton Avenue Overlay                  992,514          755,319                        237,195 Lindsay Tract Design Services 739,451                               82,887                        656,564 Public Safety Comm. Service Transportation Housing Capital Fiduciary Fund Facilities Facilities Facilities Impact    Project Custodial Impact Fees  Impact Fees  Impact Fees  Fees Fund Fund
FY20 Fund Balances, as previously reported $                ‐ ‐ $                     ‐ $                    $21,493,359 $ ‐ 21,542,926 $ Restructuring Adjustments (new funds reported):

Public Safety Facilities Impact Fee Fund (Major) 3,795,408 ‐ ‐ ‐ (3,795,408) ‐ Community Service Facilities Impact Fee (Major) ‐ 4,846,285 ‐ ‐ (4,846,285) ‐ Transportation Facilities Impact Fee Fund (Major) ‐ ‐ 9,224,348 ‐ (9,224,348) ‐ Housing Impact Fee portion reclassed (Major) ‐ ‐ ‐ 569,512 (569,512) ‐ GASB 84 Implementation ‐ ‐ ‐ ‐ ‐ 3,645,006 FY20 Fund Balances, restated $ 3,795,408 $ 4,846,285 $ 9,224,348 $22,062,871 $ 3,107,373 $ 3,645,006 State Measure F Waste State
General Construction Measure BB (VRF) Augment. Senate Bills Fund Maint. Fund ACTC ACTC Fund Bill Fund
FY20 Fund Balances, as previously reported $ 63,053,739 $ 1,029,049 $ ‐ 1,410,242 $ ‐ $ ‐ $ Restructuring Adjustments (new funds reported):

State Senate Bill Funds (Non‐Major) (910,147)          ‐                         ‐                      ‐                            910,147 Waste Augmentation Fund (Non‐Major)           (41,122)                        ‐ ‐                      ‐                             41,122 ‐ Measure F (VRF) ACTC Fund (Non‐Major)                   ‐              (117,045) ‐                               117,045 ‐                  ‐ Prior period correction                    24                        ‐ ‐                      ‐                  ‐                  ‐ Restatement due to fiscal year 2020
expenditures paid during fiscal year 2021                   ‐                        ‐            (382,475) ‐                  ‐                  ‐ FY20 Fund Balances, restated $ 62,102,494 $            912,004 $       1,027,767 $       117,045 $         41,122 $        910,147 Packet Page 62 114
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2021
In fiscal year 2021, the City made several restatements due to the recategorization of certain funds as noted below:
 Public Safety Facilities Impact Fee Fund now reported as a separate Major F und, previously reportedunder the Capital Projects Fund
 Community Service Facilities Impact Fee Fund now reported as a separate Major Fund, previouslyreported under the Capital Projects Fund
 Transportation Facilities Impact Fee Fund now reported as a separate Major Fund, previously reportedunder the Capital Projects Fund
 Housing Impact Fee Fund now reported as a separate Major Fund, a portion was previously reported underthe Capital Projects Fund
 State Senate Bill Funds now reported as a separate Non‐Major Fund, previously reported under the General Fund
 Waste augmentation Fund as a separate Non‐Major Fund, previously reported under the General Fund
 Measure F (VRF) ACTC now reported as a separate Non‐Major Fund, previously reported under the State Construction Maintenance fund
Fiscal Year 2021 also reflects a prior period adjustment in the Measure BB ACTC funds due to expenditures  relating to fiscal year 2020 paid during fiscal year 2021.

Fiscal Year 2021 also establishes a beginning net position balance for the Fiduciary Custodial funds as a resultof implementing GASB 84. In prior years, the equity was reported as due to external parties.

15. SUBSEQUENT EVENTS

COVID‐19 National Health Emergency
On March 11, 2021, the American Rescue Plan Act (ARPA) of 2021 (H.R. 1319) was signed into law by President Biden. The purpose of the $1.9 trillion package is intended to combat the COVID‐19 pandemic, including the public health and economic impacts. As a result, the City has been awarded $11.8 million from the US Treasury for use on eligible activities and projects. The received the first half of its allocation in July 2021 with the second half expected to be received a year later. The funds are to cover costsincurred between March 3, 2021 through December 31, 2024 and expended before December 31, 2026.

Packet Page 63 115
Packet Page 64 116

REQUIRED SUPPLEMENTARY INFORMATION
Packet Page 65 117
Variance with
Original Final Actual Final Budget

REVENUES
General Property Taxes $ 22,248,000 $ 25,748,000 $ 24,417,052 $ (1,330,948) Other local taxes 19,952,000 25,218,000 29,255,108 4,037,108 Licenses, permits, and fees 8,995,000 8,995,000 9,463,603 468,603 Intergovernmental 286,000 307,000 392,581 85,581 Charges for services 1,547,000 1,547,000 463,665 (1,083,335) Use of money and property 1,152,000 1,152,000 (26,171) (1,178,171) Fines and forefeitures 837,000 837,000 377,704 (459,296) Miscellaneous 120,000 120,000 295,383 175,383 Total revenues 55,137,000 63,924,000 64,638,925 714,925

EXPENDITURES
Current:

Mayor/Council 326,000 326,000 324,600 1,400 City Attorney 684,000 684,000 510,860 173,140 City Clerk 427,000 427,000 442,180 (15,180) Management Services 960,000 1,015,000 1,027,857 (12,857) Human Resources Services 709,000 709,000 657,418 51,582 Information Systems 1,050,000 1,291,000 1,275,787 15,213 Financial Services 1,803,000 1,944,000 1,896,258 47,742 Library Support 73,000 73,000 73,000 ‐ Public safety
Police 24,342,000 34,363,000 33,530,393 832,607 Fire 11,998,000 11,998,000 11,707,231 290,769 Community Development 2,356,000 1,839,000 1,439,962 399,038 Recreation and community services 4,895,000 4,895,000 4,520,499 374,501 Public works 8,844,000 8,987,400 8,479,337 508,063 Total expenditures 58,467,000 68,551,400 65,885,383 2,666,017 Excess (deficiency) of revenues over expenditures (3,330,000) (4,627,400) (1,246,458) 3,380,942

OTHER FINANCING SOURCES (USES)
Transfers in/(out) (3,980,000) (3,980,000) (223,464) 3,756,536 Total other financing sources (uses) (3,980,000) (3,980,000) (223,464) 3,756,536 Net change in fund balances (7,310,000) (8,607,400) (1,469,922) 7,137,478 Fund balances ‐ beginning, as restated 62,102,494 62,102,494 62,102,494 ‐ Fund balances ‐ ending $ 54,792,494 $ 53,495,094 $ 60,632,572 $ 7,137,478 Budgeted Amounts
City of Newark

GENERAL FUND
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual For the Year Ended June 30, 2021
Packet Page 66 118
Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental $ 1,147,000 $ 1,147,000 $ 1,065,732 $ (81,268) Use of money and property ‐ ‐ 9,317 9,317 Total revenues 1,147,000 1,147,000 1,075,049 (71,951)

EXPENDITURES
Public works 2,690,000 5,405,721 432,171 4,973,550 Capital outlay ‐ ‐ 122,847 (122,847) Total expenditures 2,690,000 5,405,721 555,018 4,850,703 Excess (deficiency) of revenues over expenditures (1,543,000) (4,258,721) 520,031 4,778,752 Net change in fund balances (1,543,000) (4,258,721) 520,031 4,778,752 Fund balances ‐ beginning 2,504,130 2,504,130 2,504,130 ‐ Fund balances ‐ ending $ 961,130 $(1,754,591) $ 3,024,161 $ 4,778,752 Budgeted Amounts
City of Newark

GAS TAX
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual For the Year Ended June 30, 2021
Packet Page 67 119
Variance with
Original Final Actual Final Budget

REVENUES
Licenses, permits, and fees $ ‐ $ ‐ $ 12,384,516 $ 12,384,516 Use of money and property ‐ ‐ 102,690 102,690 Total revenues ‐ ‐ 12,487,206 12,487,206

EXPENDITURES
Community Development ‐ ‐ 14,304 (14,304) Capital outlay ‐ 150,000 ‐ 150,000 Total expenditures ‐ 150,000 14,304 135,696 Excess (deficiency) of revenues over expenditures ‐ (150,000) 12,472,902 12,622,902 Net change in fund balances ‐ (150,000) 12,472,902 12,622,902 Fund balances ‐ beginning, as restated ‐ 22,062,871 22,062,871 ‐ Fund balances ‐ ending $ ‐ $ 21,912,871 $ 34,535,773 $ 12,622,902 Budgeted Amounts

CITY OF NEWARK

HOUSING IMPACT FEE
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual For the Year Ended June 30, 2021
Packet Page 68 120
Variance with
Original Final Actual Final Budget

REVENUES
Licenses, permits, and fees $ 563,000 $ 563,000 $ 780,453 $ 217,453 Use of money and property ‐ ‐ 12,287 12,287 Total revenues 563,000 563,000 792,740 229,740

EXPENDITURES
Community Development 146,000 723,752 367,585 356,167 Total expenditures 146,000 723,752 367,585 356,167 Excess (deficiency) of revenues over
expenditures 417,000 (160,752) 425,155 585,907 Net change in fund balances 417,000 (160,752) 425,155 585,907 Fund balances ‐ beginning 3,700,421 3,700,421 3,700,421 ‐ Fund balances ‐ ending $ 4,117,421 $ 3,539,669 $ 4,125,576 $ 585,907 Budgeted Amounts

CITY OF NEWARK

COMMUNITY DEVELOPMENT IMPACT FEE
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual For the Year Ended June 30, 2021
Packet Page 121
Variance with
Original Final Actual Final Budget

REVENUES
Licenses, permits, and fees $ 2,000,000 $ 2,000,000 $ 2,874,677 $ 874,677 Use of money and property - - 10,800 10,800
Total revenues 2,000,000 2,000,000 2,885,477 885,477

EXPENDITURES
Public works 110,000 251,019 - 251,019
Total expenditures 110,000 251,019 - 251,019
Excess (deficiency) of revenues over
expenditures 1,890,000 1,748,981 2,885,477 1,136,496
Net change in fund balances 1,890,000 1,748,981 2,885,477 1,136,496 Fund balances - beginning 747,214 747,214 747,214 -
Fund balances - ending $ 2,637,214 $ 2,496,195 $ 3,632,691 $ 1,136,496 Budgeted Amounts

CITY OF NEWARK

PARK IMPACT FEES
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual For the Year Ended June 30, 2021
Packet Page 70 122
Variance with
Original Final Actual Final Budget

EXPENDITURES
Public works $ - $ 1,027,700 $ 30,209 $ 997,491
Capital outlay - - 167,131 (167,131)
Total expenditures - 1,027,700 197,340 830,360
Excess (deficiency) of revenues over
expenditures - (1,027,700) (197,340) 830,360
Net change in fund balances - (1,027,700) (197,340) 830,360 Fund balances - beginning - (1,722,782) (1,722,782) -
Fund balances - ending $ - $ (2,750,482) $ (1,920,122) $ 830,360 Budgeted Amounts

CITY OF NEWARK
MEASURE B - 1986 ACTIA
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual For the Year Ended June 30, 2021
Packet Page 71 123
Packet Page 72 124

CITY OF NEWARK

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

BUDGETARY ACCOUNTING AND CONTROL
JUNE 30, 2021
Note 1: Budgetary Basis of Accounting
a. Budgetary Control and Budgetary Accounting
The City follows these procedures in establishing the budgetary data reflected in the financial statements:

1. Every other year, the City Manager submitsto the City Council a proposed biennial operating budget and capital improvement plan for the two fiscal years commencing the following July 1, which include proposed expenditures and the means of financing them.

2. Public work sessions are conducted to obtain taxpayer comments.

3. The budget is adopted by City Council resolution prior to July 1 of even‐numbered years.

4. Expenditures may not legally exceed budgeted appropriations at the department level.

5. All budget adjustments and transfers between funds must be approved by the City Council by resolution during the fiscal year. The City Manager is authorized to transfer any unencumbered appropriations within a department within the same funds.

6. Formal budgetary integration, including the recording of encumbrances, is employed as a management control device during the year in all budgeted funds. Under encumbrance accounting, purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation.

7. Budgets are adopted for all funds except for Debt Service Fund. Budgets are on a basis consistent with generally accepted accounting principles (GAAP).

8. Budgeted amounts are as originally adopted or as amended by the City Council. Individual amendments were not material in relation to the original appropriations, which were amended.

For the fiscal year ending June 30, 2021, the following funds had no adopted annual budgets:

Public Safety Facilities Impact Fee Fund
Community Service Facilities Impact Fee Fund
Transportation Facilities Impact Fee Fund
b. Expenditures over Appropriations
The following General fund Departments had expenditures over appropriationsforthe fiscal year ended June 30, 2021:

Department Budget Actual Excess
General Government
City Clerk $ 427,000 $ 442,180 $ 15,180 Management Services 1,015,000 $ 1,027,857 12,857 Packet Page 73 125
City of Newark
Miscellaneous Plan - Agent Multiple-Employer
Schedule of Changes in Net Pension Liability and Related Ratios As of June 30, 2021 for the last ten fiscal years (1)
2015 2016 2017 2018 2019 2020 2021

TOTAL PENSION LIABILITY
Service Cost $ 1,565,207 $ 1,428,480 $ 1,526,903 $ 1,741,959 $ 1,958,908 $ 2,015,761 $ 1,935,397 Interest 6,903,386 7,153,135 7,430,465 7,606,416 7,893,622 8,282,270 8,658,150 Difference between Expected and Actual Experience - (336,919) (296,888) 98,578 1,112,052 1,745,541 1,582,587 Changes in Assumptions - (1,677,534) - 6,040,949 (761,857) - - Benefit Payments, Including
Refunds of Employee Contributions (4,796,901) (5,054,891) (5,339,676) (5,585,662) (5,994,674) (6,387,039) (6,779,708) Net Change in Total Pension Liability 3,671,692 1,512,271 3,320,804 9,902,240 4,208,051 5,656,533 5,396,426 Total Pension Liability - Beginning 93,660,996 97,332,688 98,844,959 102,165,763 112,068,003 116,276,054 121,932,587 Total Pension Liability - Ending (a) $ 97,332,688 $ 98,844,959 $ 102,165,763 $ 112,068,003 $ 116,276,054 $ 121,932,587 $ 127,329,013

PLAN FIDUCIARTY NET POSITION
Contributions - Employer $ 1,672,308 $ 1,771,614 $ 2,089,006 $ 2,252,015 $ 3,091,582 $ 3,224,109 $ 3,532,890 Contributions - Employee 1,133,861 980,547 1,026,537 1,148,693 1,232,724 1,208,146 1,219,082 Plan to Plan Resource Movement - - - - (176) -
Net Investment Income 10,440,289 1,509,133 377,065 7,421,654 6,085,231 5,029,454 3,929,919 Benefit Payments, Including
Refunds of Employee Contributions (4,796,901) (5,054,891) (5,339,676) (5,585,662) (5,994,674) (6,387,039) (6,779,708) Administrative Expense - (76,731) (41,512) (97,779) (111,206) (53,848) (110,635) Other Miscellaneous Income/(Expense) - 95 - (401) (211,182) 176 - Net Change in Fiduciary Net Position 8,449,557 (870,233) (1,888,580) 5,138,520 4,092,299 3,020,998 1,791,548 Plan Fiduciary Net Position - Beginning 60,535,487 68,985,044 68,114,811 66,226,231 71,364,751 75,457,050 78,478,048 Plan Fiduciary Net Position - Ending (b) $ 68,985,044 $ 68,114,811 $ 66,226,231 $ 71,364,751 $ 75,457,050 $ 78,478,048 $ 80,269,596 Plan Net Pension Liability/(Assets) - Ending (a) - (b) $ 28,347,644 $ 30,730,148 $ 35,939,532 $ 40,703,252 $ 40,819,004 $ 43,454,539 $ 47,059,417 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 70.88% 68.91% 64.82% 63.68% 64.89% 64.36% 63.04% Covered Payroll $ 8,387,860 $ 8,555,244 $ 8,944,772 $ 9,900,873 $ 10,929,418 $ 11,040,727 $ 10,850,808 Plan Net Pension Liability/(Asset) as a Percentage of
Covered Payroll 337.96% 359.20% 401.79% 411.11% 373.48% 393.58% 433.70% (1) Historical information is required only for measurement years for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only seven years are shown.

Notes to Schedule:

Benefit Changes:

There were no changes to benefit terms. However, the figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2019 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).

Changes of Assumptions:

None in 2019 or 2020. In 2018, demographic assupltions and inflation rates were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate.

Packet Page 74 126
City of Newark
Miscellaneous Plan ‐ Agent Multiple‐EmployerSchedule of Plan Contributions As of June 30, 2021 for the last ten fiscal years (1)
2015 2016 2017 2018 2019 2020 2021
Actuarially Determined Contribution $ 1,773,777 $ 2,089,006 $ 2,252,317 $ 2,937,068 $ 3,231,257 $ 3,532,994 $ 3,873,663 Contribution in Relation to the Actuarially Determined Contrib (1,773,777) (2,089,006) (2,252,317) (2,937,068) (3,231,257) (3,532,994) (3,873,663) Contribution Deficiency (Excess) $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ Covered Payroll $ 8,555,244 $ 8,944,772 $ 9,900,873 $ 10,929,418 $ 11,040,727 $ 10,850,808 $ 10,664,818 Contributions as a Percentage of Covered Payroll 20.73% 23.35% 22.75% 26.87% 29.27% 32.56% 36.32% (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only seven years are shown.

Note to Schedule:

Valuation Date: June 30, 2018
Methods and assumptions used to determine contribution rates:

Actuarial Cost Method Entry Age Normal Cost Method
Amortization method Level percentage of pay, a summary of the current policy is provided in the table below.

Asset valuation method Direct rate smoothing
Inflation 2.5%Payroll Growth 2.75%Projected Salary Increases Varies by Entry Age and Service Investment Rate of Return 7.00% (net of pension plan investment and administrative expenses, includes inflation) Retirement Age All other actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period from 1997 to 2015, including updates to salary increases, mortality and retirement rates. The Experience Study report may be accessed on the CalPERS website at www.calpers.ca.gov underForms and Publications.

Mortality The mortality table used was developed based on CalPERS' specific data. The table includes 15 years of mortality improvements using 90 percent of Society of Actuaries' Scale 2016. For more details on the table, please refer to the 2017 experience study report.

Investment Non‐investment
Amortization Period 30 years 30 years 20 years 20 years 5 years Escalation Rate
‐ Active Plans 2.75% 2.75% 2.75% 2.75% 2.75% ‐ Inactive Plans 0% 0% 0% 0% 0% Ramp Up 5 5 5 0 0Ramp Down 5 5 5 0 0
Driver
Source
(Gain)/Loss Assumption /
Method Change
BenefitChange
Golden
Handshake
Packet Page
75 127
City of Newark
Cost-Sharing Multiple Employer Safety Plan
Schedule of Proportionate Share of the Net Pension Liability As of June 30, 2021 for the last ten fiscal years (1)
2015 2016 2017 2018 2019 2020 2021
Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 Proportion of the Net Pension Liability* 0.64192% 0.66006% 0.62991% 0.61737% 0.64142% 0.63196% 0.63207% Proportionate Share of the Net Pension Liability $ 39,942,949 $ 45,305,899 $ 54,506,282 $ 61,226,071 $ 61,809,192 $ 64,757,434 $ 68,772,104 Covered Payroll $ 6,720,767 $ 7,186,807 $ 7,171,629 $ 7,362,907 $ 7,381,368 $ 9,025,651 $ 7,417,018 Proportionate Share of the Net Pension Liability as 594.32% 630.40% 760.03% 831.55% 837.37% 717.48% 927.22% Percentage of Covered Payroll
Plan Fiduciary Net Position as a Percentage of the Total 75.30% 73.30% 74.10% 73.30% 75.30% 66.82% 66.03% Pension Liability
* Represents the portion of the net pension liability compared to the total risk pool for both safety and miscellaneous plans. (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only seven years are shown.

Notes to Schedule:

Benefit Changes:

There were no changes to benefit terms. However, the figures above do not include any liability impact that they may have resulted from plan changes which occurred after the June 30, 2019 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).

Changes of Assumptions:

In 2021, there were no changes. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate in 2021. In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate.

Packet Page 76 128
City of Newark
Cost-Sharing Multiple Employer Safety Plan
Schedule of Plan Contributions
As of June 30, 2021 for the last ten fiscal years (1)
2015 2016 2017 2018 2019 2020 2021
Actuarially Determined Contribution $ 2,526,932 $ 3,262,170 $ 3,595,377 $ 4,766,942 $ 5,046,191 $ 5,386,172 $ 5,836,100 Contribution in Relation to the Actuarially Determined Contribution (2,526,932) (3,262,170) (3,595,377) (4,766,942) (5,046,191) (5,386,172) (15,836,100) Contribution Deficiency (Excess) $ - $ - $ - $ - $ - $ - $ (10,000,000) Covered Payroll $ 7,186,807 $ 7,171,629 $ 7,362,907 $ 7,381,368 $ 9,025,651 $ 7,417,018 $ 7,777,066 Contributions as a Percentage of Covered Payroll 35.2% 45.5% 48.8% 64.6% 55.9% 72.6% 75.0% (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only seven years are shown.

Notes to Schedule:

Valuation Date: June 30, 2018
Methods and assumptions used to determine contribution rates:

Actuarial Cost Method Entry Age Normal Cost Method
Amortization method Level percentage of pay, a summary of the current policy is provided in the table below.

Asset valuation method Direct rate smoothing
Inflation 2.5%
Payroll Growth 2.75%
Projected Salary Increases Varies by Entry Age and Service Investment Rate of Return 7.00% (net of pension plan investment and administrative expenses, includes inflation) Retirement Age All other actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period from 1997 to 2015, including updates to salary increases, mortality and retirement rates. The Experience Study report may be accessed on the CalPERS website at www.calpers.ca.gov under Forms and Publications.

Mortality The mortality table used was developed based on CalPERS' specific data. The table includes 15 years of mortality improvements using 90 percent of Society of Actuaries' Scale 2016.

Investment Non-investment
Amortization Period 20 years 20 years 20 years 20 years 5 years Escalation Rate 0% 0% 0% 0% 0%
Ramp Up 5 0 0 0 0
Ramp Down 0 0 0 0 0
Driver
Source
(Gain)/Loss Assumption /
Method Change
Benefit
Change
Golden
Handshake
Packet Page 77 129
City of Newark
Schedule of Changes in the Net OPEB Liability and Related Ratios As of June 30, 2021 for the last ten fiscal years (1)
2018 2019 2020 2021
Total OPEB Liability
Service cost $ 357,973 $ 339,211 $ 310,710 $ 270,070
Interest on the total OPEB liability 345,706 387,888 463,155 378,535 Actual and expected experience difference - - (1,516,027) - Changes is assumptions (232,385) 103,950 (555,472) -
Benefit payments (205,783) (223,221) (353,760) (322,724) Net change in total OPEB liability 265,511 607,828 (1,651,394) 325,881 Total OPEB liability - beginning 6,978,268 7,243,779 7,851,607 6,200,213 Total OPEB liability - ending (a) 7,243,779 7,851,607 6,200,213 6,526,094 Plan Fiduciary Net Position
Contribution - employer 315,000 354,000 576,617 697,381 Net investment income 161,324 126,130 130,911 91,520
Benefit payments (205,783) (223,221) (353,760) (322,724) Administrative expense (845) (1,002) (472) (1,296)
Investment experience - 23,308 - -
Other expenses - (2,218) - -
Net change plan fiduciary net position 269,696 276,997 353,296 464,881 Total fiduciary net position - beginning 1,406,246 1,675,942 1,952,939 2,306,235 Total fiduciary net position - ending (a) 1,675,942 1,952,939 2,306,235 2,771,116 Net OPEB Liability - ending (a) - (b) $ 5,567,837 $ 5,898,668 $ 3,893,978 $ 3,754,978 Plan fiduciary net position as a percentage of the total OPEB liability 23.14% 24.87% 37.20% 42.46% Covered-employee payroll $ 15,780,296 $ 17,438,452 $ 20,956,996 $ 18,991,910 Net OPEB asset as a percentage of covered-employee payroll 35.28% 33.83% 18.58% 19.77% (1) Historical information is required only for measurement for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation.

Future years' information will be displayed up to 10 years as information becomes available.

Notes to Schedule:

Changes in assumptions: There were no changes in 2021. In 2020, the discount rate was changed from 7.00% to 6.00%. In 2019, the discount rate was changed from 7.25% to 7.00%.

Packet Page 78 130
City of Newark
Schedule of OPEB Contributions
As of June 30, 2021 for the last ten fiscal years (1)
2018 2019 2020 2021
Actuarially Determined Contribution $ 537,000 $ 572,265 $ 588,500 $ 476,313 Contribution in Relation to the Actuarially Determined Contribution (354,000) (576,617) (697,381) (339,677) Contribution Deficiency (Excess) $ 183,000 $ (4,352) $ (108,881) $ 136,636 Covered Payroll $ 17,438,452 $ 20,956,996 $ 18,991,910 $ 18,685,140 Contributions as a Percentage of Covered Payroll 2.03% 2.75% 3.67% 1.82% (1) Historical information is required only for measurement for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation.

Future years' information will be displayed up to 10 years as information becomes available.

Notes to Schedule:
*Actuarial methods and assumptions used to set the actuarially determined contribution for Fiscal Year 2021 were derived from the June 2019 Actuarial Valuation report, based on the plan assets and liabilities projected at the same time that valuation was prepared.

Methods and assumptions used to determine contributions:

Actuarial Cost Method Entry Age Normal
Amortization Valuation Method/Period Level percent of payroll Asset Valuation Method Market value
Discount Rate 6.00%
Inflation 2.50%
Mortality 2014 CalPERS Experience Study
Packet Page 79 131
Packet Page 80 132

SUPPLEMENTARY INFORMATION
Packet Page 81 133
NON‐MAJOR GOVERNMENTAL FUNDS
The following funds are reported in total on the Governmental Fund Financial Statements under the column Other Governmental Funds.

SPECIAL REVENUE FUNDS
Paramedic Tax – Accounts for funds used to support the Fire Department Paramedic Program. This voter‐approved property tax is used to pay for training, supplies and certain personnel costs associated with the program.

Alameda County Fire Fees – Accounts for funds received from the County for emergency medical services.

Police Grants – Accounts for grant funds received for specific law enforcement purposes and to support drug resistance and education programs for community youth.

CARES Act – The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated federal Coronavirus Relief Funds (CRF) to state and local governments for COVID‐19 expenditures incurred between March 1 and December 20, 2020 in response to COVID‐19.

Community Development Act – Accounts for funds received from federal grants administered by the County to fund improvements to low‐income housing and neighborhoods.

Waste Management Augmentation Fund – Accounts for funds collected from 1998 through 2006 as an addition to Franchise Fees for the purpose of offsetting cost increases due to the closure of a local landfill and for unanticipated changes caused by new pass‐through cost or new governmental requirements related to municipal solid waste services.

Recycle AB 939 – Accounts for funds received from Waste Management and Republic Services franchise fees. These funds are used to fund and promote City recycling efforts as required by Assembly Bill 939.

Measure D ‐ Recycling – Accounts for Measure D funds from the Alameda County Waste Reduction Initiative to be used for the continuation and expansion of municipal recycling programs.

Measure B ‐ ACTC – Accounts for Measure B funds from the Alameda County Transportation Commission (ACTC) to be used for the maintaining of local streets and roadways, funding bikes and pedestrian projects, and providing paratransit services to the senior community.

Measure BB ‐ ACTC – Accounts for Measure B funds from the Alameda County Transportation Commission (ACTC) to be used for the maintaining of local streets and roadways, funding bikes and pedestrian projects, and providing paratransit services to the senior community.

Measure F (VRF) ACTC – Accounts for Measure F funds from the Alameda County Vehicle Registration Fees to be used to sustain the County’s transportation network and reduce traffic congestion and vehicle related pollution.

RMRA SB1 Special Revenue Fund – Accounts for Senate Bill 1 that increases gasoline and diesel taxes and vehicle registration fees to fund for basic road maintenance, rehabilitation, and critical safety projects on local streets and roads.

Hazardous Materials Program – Accounts for grant proceeds for specific hazardous materials education and mitigation programs.

Packet Page 82 134
State Senate Bills Fund – Accounts for Senate Bill 1186, State CASp fee which is mandated by California SB1186 and its purpose is to increase disability access and compliance with construction related accessibility requirements. It also accounts for the Building Standards Fee (SB1473) and the California Strong Motion Instrumentation Program (CSMIP).

Auto Break‐in Prevention (AB74) – Accounts for State funding sponsored by Assembly member Kansan Chu, to combat auto burglaries in our region.

State Construction Maintenance Funds – Accounts for funds to be used for various street maintenance and construction projects.

CAPITAL PROJECTS FUNDS
PEG Fees – Accounts for funding used to support PEG activities and the capital costs needed for repair, replacement, and maintenance of equipment used to broadcast Council meetings, or to make technological upgrades to the Council chambers.

Art in Public Places – Accounts for funds collected from developers to be used for the procurement and enhancement of public art.

Other Federal Grants – Accounts for other Federal Grants reimbursements provided by cooperating agencies for capital related expenditures.

Landscape and Lighting District – Accounts for funds collected through special assessments for the maintenance of landscaping and street lighting in the Landscape and Lighting Districts.

Packet Page 83 135
City of Newark
Combining Balance Sheet
Non‐Major Governmental Funds
June 30, 2021
Alameda
Paramedic County Police CARES
Tax Fire Fees Grants Act
ASSETS
Pooled cash and investments $ 932,457 $ 57,885 $ 223,898 $ ‐ Receivables:

Accounts ‐ ‐ ‐ ‐ Taxes ‐ ‐ ‐ ‐ Intergovernmental ‐ ‐ ‐ ‐ Special assessments ‐ ‐ ‐ ‐ Other ‐ ‐ 6,955 ‐ Total assets $ 932,457 $ 57,885 $ 230,853 $ ‐

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable ‐ $ $ ‐ $ 140 $ ‐ Unearned revenues ‐ ‐ ‐ ‐ Refundable deposits ‐ ‐ ‐ ‐ Total liabilities ‐ ‐ 140 ‐

DEFERRED INFLOW OR RESOURCES
Unavailable revenue ‐ ‐ ‐ ‐ Total deferred inflow or resources ‐ ‐ ‐ ‐ Fund Balances:

Restricted 932,457 57,885 230,713 ‐ Committed ‐ ‐ ‐ ‐ Assigned ‐ ‐ ‐ ‐ Total fund balances 932,457 57,885 230,713 ‐ Total liabilities and fund balances $ 932,457 $ 57,885 $ 230,853 $ ‐ Special Revenue Funds
Packet Page 84 136
Community Measure F
Development Waste Recycle Measure D ‐ Measure B ‐ Measure BB (VRF) RMRA Act Augmentation AB939 Waste Mgmt ACTC ACTC ACTC SB1
$ 102,204 $ 18,638 $ 57,164 $ 753,796 $ 1,657,533 $ 1,740,450 $ 303,893 $ 2,471,206 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 76,931 ‐ ‐ ‐ ‐ 203,624 166,957 36,577 88,488 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ $ 102,204 $ 18,638 $ 57,164 $ 753,796 $ 1,861,157 $ 1,907,407 $ 340,470 $ 2,636,625

$ 63,718 $ ‐ $ ‐ $ 12,864 $ 303,911 $ 111,113 $ 8,000 $ 100,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 63,718 ‐ ‐ 12,864 303,911 111,113 8,000 100,000 ‐ ‐ ‐ ‐ 103,694 84,882 ‐ ‐ ‐ ‐ ‐ ‐ 103,694 84,882 ‐ ‐ 38,486 ‐ 57,164 740,932 1,453,552 1,711,412 332,470 2,536,625 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 18,638 ‐ ‐ ‐ ‐ ‐ ‐ 38,486 18,638 57,164 740,932 1,453,552 1,711,412 332,470 2,536,625 $ 102,204 $ 18,638 $ 57,164 $ 753,796 $ 1,861,157 $ 1,907,407 $ 340,470 $ 2,636,625 Special Revenue Funds
Packet Page 85 137
City of Newark
Combining Balance Sheet
Non‐Major Governmental Funds, Continued
June 30, 2021
Hazardous State Auto Break‐in State
Materials Senate Bills Prevention Construction
Program Fund AB74 Maintenance
ASSETS
Pooled cash and investments $ 38,250 $ 971,602 $ 730,419 $ 927,526 Receivables:

Accounts ‐ ‐ ‐ ‐ Taxes ‐ ‐ ‐ ‐ Intergovernmental ‐ ‐ ‐ ‐ Special assessments ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total assets $ 38,250 $ 971,602 $ 730,419 $ 927,526

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable $ 13,183 $ 103 $ 26,312 $ ‐ Unearned revenues ‐ ‐ 704,107 ‐ Refundable deposits ‐ 70,397 ‐ 12,768 Total liabilities 13,183 70,500 730,419 12,768

DEFERRED INFLOW OR RESOURCES
Unavailable revenue ‐ ‐ ‐ ‐ Total deferred inflow or resources ‐ ‐ ‐ ‐ Fund Balances:

Restricted               25,067             901,102                          ‐             914,758 Committed                          ‐                          ‐                          ‐                          ‐ Assigned                          ‐                          ‐                          ‐                          ‐ Total fund balances               25,067             901,102                          ‐             914,758 Total liabilities and fund balances $           38,250 $          971,602 $          730,419 $          927,526 Special Revenue Funds
Packet Page 86 138
Total
Other
Other Landscape Non‐Major
PEG Art in  Public Federal and Lighting Governmental
Fees Places Grants District Funds
$          923,442 $      1,848,984 $                       ‐ $      1,638,113 $         15,397,460 ‐                          ‐                     660                          660 ‐                          ‐                          ‐                          ‐                    76,931 ‐                          ‐                          ‐                          ‐                  495,646 ‐                          ‐                          ‐               85,878                    85,878 18,781                          ‐                          ‐                          ‐                    25,736 $          942,223 $      1,848,984 $                       ‐ $      1,724,651 $         16,082,311 $                       ‐ $                       ‐ $                       ‐ $            11,115 $               650,459 ‐                          ‐                          ‐                          ‐                  704,107 ‐                          ‐                         ‐                          ‐                    83,165 ‐                          ‐                          ‐               11,115               1,437,731 ‐                          ‐                         ‐                         ‐ $               188,576 ‐                          ‐                          ‐                          ‐ $               188,576 942,223                          ‐                          ‐          1,713,536            12,588,382 ‐                          ‐                          ‐                          ‐                               ‐ ‐          1,848,984                          ‐                          ‐               1,867,622 942,223          1,848,984                          ‐          1,713,536            14,456,004 $          942,223 $      1,848,984 $                       ‐ $      1,724,651 $         16,082,311 Capital Projects Funds
Packet Page 87 139
City of Newark
Combined Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the year ended June 30, 2021
Alameda
Paramedic County Police CARES
Tax Fire Fees Grants Act
REVENUES:

Special assessments $ 255,101 $ - $ - $ -
Other governmental agencies - 198,019 - 604,590
Use of money and property - - 119 -
License, permits and fees - 17,600 - -
Other revenues - - - -
Total revenues 255,101 215,738 - 604,590
EXPENDITURES:

Current:

General government - - - -
Public safety:

Fire 4,265 3,100 - -
Police - 190,619 - -
Public works - - - -
Community development - - 565,297 -
Recreation - - - -
Capital outlay - - - -
Total expenditures 4,265 3,100 190,619 565,297

REVENUE OVER
(UNDER) EXPENDITURES 250,836 (3,100) 25,119 39,293
OTHER FINANCING USES:

Transfers out - - (39,293) -
Total other financing uses - - (39,293) -
Net change in fund balances 250,836 (3,100) 25,119 -
FUND BALANCES:

Beginning of year, restated 681,621 60,985 205,594 -
End of year $ 932,457 $ 57,885 $ 230,713 $ -
Special Revenue Funds
Packet Page 88 140
Community Waste Measure F
Development Augmentation Recycle Measure D ‐ Measure B ‐ Measure BB ‐ (VRF) RMRA Act Fund AB 939 Waste Mgmt ACTC ACTC ACTC SB1
$ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ 49,877 ‐ ‐ 72,416 896,088 736,382 214,522 907,758 ‐ ‐ ‐ 2,241 4,927 5,174 903 7,347 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 49,877 ‐ ‐ 74,657 901,015 741,556 215,425 915,105 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 22,484 ‐ 12,863 2,500 ‐ ‐ 30,209 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 123,992 ‐ ‐ ‐ 104,445 ‐ ‐ ‐ 145,300 57,911 ‐ 100,000 104,445 22,484 ‐ 12,863 271,792 57,911 ‐ 130,209 (54,568) (22,484) ‐ 61,794 629,223 683,645 215,425 784,896 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (54,568) (22,484) ‐ 61,794 629,223 683,645 215,425 784,896 93,054 41,122 57,164 679,138 824,329 1,027,767 117,045 1,751,729 $ 38,486 $ 18,638 $ 57,164 $ 740,932 $ 1,453,552 $ 1,711,412 $ 332,470 $ 2,536,625 Special Revenue Funds
Packet Page 89 141
City of Newark
Combined Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the year ended June 30, 2021
Hazardous State Auto Break-in State
Materials Senate Bills Prevention Construction
Program Fund AB74 Maintenance
REVENUES:

Special assessments $ - $ - $ - $ -
Other governmental agencies 9,000 26,349 - -
Use of money and property 115 - - 2,751
License, permits and fees - - - -
Other revenues - - - 3
Total revenues 9,115 26,349 - 2,754
EXPENDITURES:

Current:

General government - - - -
Public safety:

Fire - - -
Police - 26,349 - -
Public works 9,000 9,045 - -
Community development - - -
Recreation - - - -
Capital outlay - - - -
Total expenditures 9,000 9,045 26,349 -

REVENUE OVER
(UNDER) EXPENDITURES 115 (9,045) - 2,754

OTHER FINANCING
Transfers out - - - -
Total other financing uses - - - -
Net change in fund balances 115 (9,045) - 2,754
FUND BALANCES:

Beginning of year, restated 24,952 910,147 912,004 -
End of year $ 25,067 $ 901,102 $ 914,758 - $
Special Revenue Funds
Packet Page 90 142
Total
Other
Other Landscape Non-Major
PEG Art in Federal and Lighting Governmental
Fees Public Places Grants District Funds
$ - $ - $ 399,406 - $ $ 654,507
- 592,000 - 4,307,001 -
2,721 5,497 5,343 - 37,138
61,744 116,855 - 196,199 -
- - - - 3
64,465 122,352 592,000 404,749 5,194,848
- - - - -
- - - - 7,365
- - - 216,968 -
- 79,744 - 145,466 311,311
- - - 565,297 -
- - - 123,992 -
- 512,256 - 919,912 -
- 592,000 - 145,466 2,144,845
64,465 122,352 259,283 - 3,050,003
- - - - (39,293)
- - - - (39,293)
64,465 122,352 259,283 - 3,010,710
877,758 1,726,632 1,454,253 - 11,445,294
$ 942,223 $ 1,848,984 $ 1,713,536 - $ $ 14,456,004
Capital Projects Funds
Packet Page 91 143
Variance with
Original Final Actual Final Budget

EXPENDITURES
Public works $ 498,000 $ 42,631,810 $ 340,721 $ 42,291,089 Capital outlay ‐ 124,000 42,296,896 (42,172,896) Total expenditures 498,000 42,755,810 42,637,617 118,193 Excess (deficiency) of revenues over
expenditures (498,000) (42,755,810) (42,637,617) 118,193

OTHER FINANCING SOURCES (USES)
Transfers in ‐ ‐ 28,539,196 28,539,196 Total other financing sources (uses) ‐ ‐ 28,539,196 28,539,196 Net change in fund balances (498,000) (42,755,810) (14,098,421) 28,657,389 Fund balances ‐ beginning, restated 3,109,127 3,109,127 3,107,373 (1,754) Fund balances ‐ ending $ 2,611,127 $(39,646,683) $(10,991,048) $ 28,655,635 Budgeted Amounts

CITY OF NEWARK

CAPITAL PROJECTS
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual For the Year Ended June 30, 2021
Packet Page 92 144
Variance with
Original Final Actual Final Budget

REVENUES
Special assessments $ 233,000 $ 376,000 $ 255,101 $ (120,899) Total revenues 233,000 376,000 255,101 (120,899)

EXPENDITURES
Fire ‐ 5,000 4,265 735 Total expenditures ‐ 5,000 4,265 735 Excess (deficiency) of revenues over
expenditures 233,000 371,000 250,836 (120,164) Net change in fund balances 233,000 371,000 250,836 (120,164) Fund balances ‐ beginning 681,621 681,621 681,621 ‐ Fund balances ‐ ending $ 914,621 $ 1,052,621 $ 932,457 $ (120,164) Budgeted Amounts

CITY OF NEWARK
Paramedic Tax
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual For the Year Ended June 30, 2021
Packet Page 93 145
Variance with
Original Final Actual Final Budget

EXPENDITURES
Fire $ - $ 4,000 $ 3,100 $ 900
Total expenditures - 4,000 3,100 900
Excess (deficiency) of revenues over
expenditures - (4,000) (3,100) 900
Net change in fund balances - (4,000) (3,100) 900
Fund balances - beginning - 60,985 60,985 -
Fund balances - ending $ - $ 56,985 $ 57,885 $ 900
Budgeted Amounts

CITY OD NEWARK

ALAMEDA COUNTY EMS GRANT (FRALS)
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual For the Year Ended June 30, 2021
Packet Page 94 146
Variance with
Original Final Actual Final Budget

REVENUES
Licenses, permits, and fees $ - $ - $ 17,600 $ 17,600
Intergovernmental 100,000 287,730 198,019 (89,711)
Use of money and property - - 119 119
Total revenues 100,000 287,730 215,738 (71,992)

EXPENDITURES
Police 35,000 226,730 190,619 36,111
Total expenditures 35,000 226,730 190,619 36,111
Excess (deficiency) of revenues over
expenditures 65,000 61,000 25,119 (35,881)
Net change in fund balances 65,000 61,000 25,119 (35,881) Fund balances - beginning 205,593 205,593 205,594 1
Fund balances - ending $ 270,593 $ 266,593 $ 230,713 $ (35,880) Budgeted Amounts

CITY OF NEWARK

POLICE GRANTS
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual For the Year Ended June 30, 2021
Packet Page 95 147
Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental $ - $ 604,590 $ 604,590 $ -
Total revenues - 604,590 604,590 -

EXPENDITURES
Community Development - 604,590 565,297 39,293
Total expenditures - 604,590 565,297 39,293
Excess (deficiency) of revenues over
expenditures - - 39,293 39,293

OTHER FINANCING SOURCES (USES)
Transfers out - - 39,293 39,293
Total other financing sources (uses) - - 39,293 39,293
Net change in fund balances - - - -
Fund balances - beginning - - - -
Fund balances - ending $ - $ - $ - $ -
Budgeted Amounts

CITY OF NEWARK

CARES ACT CRF
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual For the Year Ended June 30, 2021
Packet Page 96 148
Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental $ - $ 432,037 $ 49,877 $ (382,160)
Total revenues - 432,037 49,877 (382,160)

EXPENDITURES
Community Development - 653,537 104,445 549,092
Total expenditures - 653,537 104,445 549,092
Excess (deficiency) of revenues over
expenditures - (221,500) (54,568) 166,932
Net change in fund balances - (221,500) (54,568) 166,932 Fund balances - beginning - 93,054 93,054 -
Fund balances - ending $ - $ (128,446) $ 38,486 $ 166,932 Budgeted Amounts

CITY OF NEWARK

COMMUNITY DEVELOPMENT ACT (HCD)
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual For the Year Ended June 30, 2021
Packet Page 97 149
Variance with
Original Final Actual Final Budget

EXPENDITURES
Public works $ - $ 23,000 $ 22,484 $ 516
Total expenditures - 23,000 22,484 516
Excess (deficiency) of revenues over
expenditures - (23,000) (22,484) 516
Net change in fund balances - (23,000) (22,484) 516
Fund balances - beginning - 41,122 41,122 -
Fund balances - ending $ - $ 18,122 $ 18,638 $ 516
Budgeted Amounts

CITY OF NEWARK

WASTE MANAGEMENT - AUGMENTATION
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual For the Year Ended June 30, 2021
Packet Page 98 150
Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental $ 115,000 $ 115,000 $ 72,416 $ (42,584) Use of money and property - - 2,241 2,241
Total revenues 115,000 115,000 74,657 (40,343)

EXPENDITURES
Public works - 316,500 12,863 303,637
Total expenditures - 316,500 12,863 303,637
Excess (deficiency) of revenues over expenditures 115,000 (201,500) 61,794 263,294 Net change in fund balances 115,000 (201,500) 61,794 263,294 Fund balances - beginning 679,138 679,138 679,138 -
Fund balances - ending $ 794,138 $ 477,638 $ 740,932 $ 263,294 Budgeted Amounts

CITY OF NEWARK

MEASURE D - WASTE MANAGEMENT
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual For the Year Ended June 30, 2021
Packet Page 99 151
Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental $ 849,000 $ 849,000 $ 896,088 $ 47,088 Use of money and property - - 4,927 4,927
Total revenues 849,000 849,000 901,015 52,015

EXPENDITURES
Recreation and community services 220,000 220,000 123,992 96,008 Public works - 474,200 2,500 471,700
Capital outlay - 29,716,150 145,300 29,570,850
Total expenditures 220,000 30,410,350 271,792 30,138,558 Excess (deficiency) of revenues over
expenditures 629,000 (29,561,350) 629,223 30,190,573
Net change in fund balances 629,000 (29,561,350) 629,223 30,190,573 Fund balances - beginning 824,329 824,329 824,329 -
Fund balances - ending $ 1,453,329 $ (28,737,021) $ 1,453,552 $ 30,190,573 Budgeted Amounts

CITY OF NEWARK

MEASURE B (ACTC) - LOCAL ST/RD
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual For the Year Ended June 30, 2021
Packet 100 Page 152
Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental $ 697,000 $ 697,000 $ 736,382 $ 39,382 Use of money and property - - 5,174 5,174
Total revenues 697,000 697,000 741,556 44,556

EXPENDITURES
Recreation and community services 220,000 220,000 - 220,000 Capital outlay - 913,415 57,911 855,504
Total expenditures 220,000 1,133,415 57,911 1,075,504
Excess (deficiency) of revenues over
expenditures 477,000 (436,415) 683,645 1,120,060
Net change in fund balances 477,000 (436,415) 683,645 1,120,060 Fund balances - beginning 1,027,767 1,027,767 1,027,767 - Fund balances - ending $ 1,504,767 $ 591,352 $ 1,711,412 $ 1,120,060 Budgeted Amounts

CITY OF NEWARK

MEASURE BB (ACTC) - LOCAL ST/RD
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual For the Year Ended June 30, 2021
Packet 101 Page 153
Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental $ 180,000 $ 180,000 $ 214,522 $ 34,522 Use of money and property - - 903 903
Total revenues 180,000 180,000 215,425 35,425

EXPENDITURES
Capital outlay - 19,277 - 19,277
Total expenditures - 19,277 - 19,277
Excess (deficiency) of revenues over
expenditures 180,000 160,723 215,425 54,702
Net change in fund balances 180,000 160,723 215,425 54,702 Fund balances - beginning 117,045 117,045 117,045 -
Fund balances - ending $ 297,045 $ 277,768 $ 332,470 $ 54,702 Budgeted Amounts

CITY OF NEWARK

MEASURE F (VRF) - ACTC
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual For the Year Ended June 30, 2021
Packet 102 Page 154
Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental $ 837,000 $ 837,000 $ 907,758 $ 70,758 Use of money and property - - 7,347 7,347
Total revenues 837,000 837,000 915,105 78,105

EXPENDITURES
Public works - 1,529,600 30,209 1,499,391
Capital outlay - - 100,000 (100,000)
Total expenditures - 1,529,600 130,209 1,399,391
Excess (deficiency) of revenues over
expenditures 837,000 (692,600) 784,896 1,477,496
Net change in fund balances 837,000 (692,600) 784,896 1,477,496 Fund balances - beginning 1,751,729 1,751,729 1,751,729 - Fund balances - ending $ 2,588,729 $ 1,059,129 $ 2,536,625 $ 1,477,496 Budgeted Amounts

CITY OF NEWARK
SB1 RMRA-ROAD MAINT & REPAIR
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual For the Year Ended June 30, 2021
Packet 103 Page 155
Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental $ 13,000 $ 13,000 $ 9,000 $ (4,000)
Use of money and property - - 115 115
Total revenues 13,000 13,000 9,115 (3,885)

EXPENDITURES
Public works - - 9,000 (9,000)
Total expenditures - - 9,000 (9,000)
Excess (deficiency) of revenues over
expenditures 13,000 13,000 115 (12,885)
Net change in fund balances 13,000 13,000 115 (12,885)
Fund balances - beginning 24,952 24,952 24,952 -
Fund balances - ending $ 37,952 $ 37,952 $ 25,067 $ (12,885) Budgeted Amounts

CITY OF NEWARK

HAZARDOUS MATERIALS PROGRAM
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual For the Year Ended June 30, 2021
Packet 104 Page 156
Variance with
Original Final Actual Final Budget

EXPENDITURES
Public works $ 10,000 $ 10,000 $ 9,045 $ 955
Total expenditures 10,000 10,000 9,045 955
Excess (deficiency) of revenues over
expenditures (10,000) (10,000) (9,045) 955
Net change in fund balances (10,000) (10,000) (9,045) 955 Fund balances - beginning 910,147 910,147 910,147 -
Fund balances - ending $ 900,147 $ 900,147 $ 901,102 $ 955 Budgeted Amounts

CITY OF NEWARK

STATE SENATE BILLS FUNDS
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual For the Year Ended June 30, 2021
Packet 105 Page 157
Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental $ - $ - $ 26,349 $ 26,349
Total revenues - - 26,349 26,349

EXPENDITURES
Police 146,000 146,000 26,349 119,651
Total expenditures 146,000 146,000 26,349 119,651
Excess (deficiency) of revenues over
expenditures (146,000) (146,000) - 146,000
Net change in fund balances (146,000) (146,000) - 146,000 Fund balances - beginning - - - -
Fund balances - ending $ (146,000) $ (146,000) $ - $ 146,000 Budgeted Amounts

CITY OF NEWARK
Auto Break-in Prevention AB 74
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual For the Year Ended June 30, 2021
Packet 106 Page 158
Variance with
Original Final Actual Final Budget

REVENUES
Use of money and property $ - $ - $ 2,751 $ 2,751
Other - - 3 3
Total revenues - - 2,754 2,754

EXPENDITURES
Public works - 118,100 - 118,100
Total expenditures - 118,100 - 118,100
Excess (deficiency) of revenues over expenditures - (118,100) 2,754 120,854 Net change in fund balances - (118,100) 2,754 120,854
Fund balances - beginning 912,007 912,007 912,004 (3)
Fund balances - ending $ 912,007 $ 793,907 $ 914,758 $ 120,851 Budgeted Amounts

CITY OF NEWARK

STATE CONSTRUCTION MAINTENANCE
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual For the Year Ended June 30, 2021
Packet 107 Page 159
Variance with
Original Final Actual Final Budget

REVENUES
Licenses, permits, and fees $ 50,000 $ 50,000 $ 61,744 $ 11,744 Use of money and property - - 2,721 2,721
Total revenues 50,000 50,000 64,465 14,465
Excess (deficiency) of revenues over
expenditures 50,000 50,000 64,465 14,465
Net change in fund balances 50,000 50,000 64,465 14,465 Fund balances - beginning 877,758 877,758 877,758 -
Fund balances - ending $ 927,758 $ 927,758 $ 942,223 $ 14,465 Budgeted Amounts

CITY OF NEWARK

PEG FEES
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual For the Year Ended June 30, 2021
Packet 108 Page 160
Variance with
Original Final Actual Final Budget

REVENUES
Licenses, permits, and fees $ 90,000 $ 90,000 $ 116,855 $ 26,855 Use of money and property - - 5,497 5,497
Total revenues 90,000 90,000 122,352 32,352
Excess (deficiency) of revenues over expenditures 90,000 90,000 122,352 32,352 Net change in fund balances 90,000 90,000 122,352 32,352 Fund balances - beginning 1,726,632 1,726,632 1,726,632 - Fund balances - ending $ 1,816,632 $ 1,816,632 $ 1,848,984 $ 32,352 Budgeted Amounts

CITY OF NEWARK

ART IN PUBLIC PLACES
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual For the Year Ended June 30, 2021
Packet 109 Page 161
Variance with
Original Final Actual Final Budget

REVENUES
Intergovernmental $ - $ - $ 592,000 $ 592,000
Total revenues - - 592,000 592,000

EXPENDITURES
Public works - - 79,744 (79,744)
Capital outlay - - 512,256 (512,256)
Total expenditures - - 592,000 (592,000)
Excess (deficiency) of revenues over
expenditures - - - -
Net change in fund balances - - - -
Fund balances - beginning - - - -
Fund balances - ending $ - $ - $ - $ -
Budgeted Amounts

CITY OF NEWARK

MISC FEDERAL GRANTS
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual For the Year Ended June 30, 2021
Packet 110 Page 162
Variance with
Original Final Actual Final Budget

REVENUES
Special assessments $ - $ - $ 399,406 $ 399,406
Use of money and property - - 5,343 5,343
Total revenues - - 404,749 404,749

EXPENDITURES
Public works - 73,740 145,466 (71,726)
Total expenditures - 73,740 145,466 (71,726)
Excess (deficiency) of revenues over
expenditures - (73,740) 259,283 333,023
Net change in fund balances - (73,740) 259,283 333,023
Fund balances - beginning - 1,454,253 1,454,253 -
Fund balances - ending $ - $ 1,380,513 $ 1,713,536 $ 333,023 Budgeted Amounts

CITY OF NEWARK
Landscape and Lighting Districts
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual For the Year Ended June 30, 2021
Packet 111 Page 163
Packet 112 Page 164

INTERNAL SERVICE FUNDS
Equipment Replacement – Accounts for funds used to pay for the anticipated replacement of general equipment needs.

Equipment Operations – Accounts for funds used to support the maintenance and operation of general equipment.

Office Support – Accounts for funds used to support general office support needs including office supply purchases.

Building Maintenance –Accounts for funds used for general City-owned building maintenance.

Public Liability Self-Insurance – Accounts for funds used to cover general liability claims against the City and premiums for coverage above the City's risk retention level.

Workers' Compensation Self-Insurance – Accounts for funds used to cover premiums and claims paid related to Workers' Compensation coverage.

Packet 113 Page 165
City of Newark
Combining Statement of Net Position
Internal Service Funds
June 30, 2021
Equipment Equipment Office Building
Replacement Operations Support Maintenance
ASSETS
Current assets:

Cash and investments $ 2,546,604 $ 1,930,857 $ 2,350,622 82,276 $ Receivables 1,454 - 5,574 -
Supplies and other assets 66,904 - 3,000 24,025
Total current assets 2,548,058 1,997,761 85,276 2,380,221 Capital assets, net of accumulated depreciation 3,848,272 - - - Total assets 6,396,330 1,997,761 85,276 2,380,221

LIABILITIES
Current liabilities:

Accounts payable 1,006 63,323 1,206 207,888
Accrued liabilities 19,362 - - -
Capital lease obligation, due within one year 296,263
Claims payable, due within one year - - - -
Total current liabilities 316,631 63,323 1,206 207,888
Noncurrent liabilities:

Capital lease obligation, due in more than one year 1,105,235 - - - Claims payable, due in more than one year - - - -
Total liabilities 1,421,866 63,323 1,206 207,888

NET POSITION
Net investment in capital assets * 2,446,774 - - -
Unrestricted 2,527,690 1,934,438 84,070 2,172,333
Total net position $ 4,974,464 $ 1,934,438 $ 2,172,333 84,070 $ * Net of capital lease
Packet 114 Page 166
Public Workers'
Liability Compensation
Self-Insurance Self-Insurance Total
$ 841,030 $ 3,051,978 $ 10,803,367
435 7,463 -
- 93,929 -
841,465 3,051,978 10,904,759
- 3,848,272 -
841,465 3,051,978 14,753,031
7,007 56,943 337,373
42 19,404 -
296,263
158,140 558,372 716,512
165,189 615,315 1,369,552
- 1,105,235 -
357,433 1,308,344 1,665,777
522,622 1,923,659 4,140,564
- 2,446,774 -
318,843 1,128,319 8,165,693
$ 318,843 $ 1,128,319 $ 10,612,467
Packet 115 Page 167
City of Newark
Combining Statement of Activities and Changes in Net Position Internal Service Funds
For the year ended June 30, 2021
Equipment Equipment Office Building
Replacement Operations Support Maintenance
OPERATING REVENUES:

Charges to departments $ 845,000 $ 1,288,000 $ 134,000 $ 2,222,000 Other revenue 4,241 60,694 - 123,737
Total operating revenues 849,241 1,348,694 134,000 2,345,737 OPERATING EXPENSES:

Personnel services - 557,351 22,962 569,829
Materials and supplies 61,630 252,325 26,066 60,336
Contractual Services - 179,801 57,473 526,752
Utilities - - - 663,685
Insurance claims and premiums - - - -
Depreciation 426,577 - - -
Total operating expenses 488,207 989,477 106,501 1,820,602 OPERATING INCOME (LOSS) 361,034 359,217 27,499 525,135
NONOPERATING REVENUES (EXPENSES):

Interest expense (50,315) - - -
Total nonoperating revenue (expenses) (50,315) - - -
INCOME (LOSS) BEFORE TRANSFERS 310,719 359,217 27,499 525,135 Transfers in - - 12,757 -
Total transfers - - 12,757 -
Change in net position 310,719 359,217 27,499 537,892
NET POSITION:

Beginning of year 4,663,745 1,575,221 56,571 1,634,441
End of year $ 4,974,464 $ 1,934,438 $ 84,070 $ 2,172,333 Packet 116 Page 168
Public Workers'
Liability Compensation
Self-Insurance Self-Insurance Total
$ 844,000 $ 1,322,000 $ 6,655,000
- - 188,672
844,000 1,322,000 6,843,672
16,047 7,920 1,174,109
- - 400,357
- 814,901 1,578,927
- - 663,685
733,175 264,029 997,204
- - 426,577
749,222 1,086,850 5,240,859
94,778 235,150 1,602,813
- (50,315) -
- - (50,315)
94,778 235,150 1,552,498
- 12,757 -
- 12,757 -
94,778 235,150 1,565,255
224,065 893,169 9,047,212
$ 318,843 $ 1,128,319 $ 10,612,467
Packet 117 Page 169
City of Newark
Combining Statement of Cash Flows
Internal Service Funds
For the year ended June 30, 2021
Equipment Equipment Office Building
Replacement Operations Support Maintenance
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from other funds $ 849,241 $ 1,348,694 $ 134,000 $ 2,345,737 Payments to suppliers/other fund (137,586) (441,975) (88,787) (1,216,971) Payments to employees ‐ (557,351) (22,962) (569,829) Claim payments ‐ ‐ ‐ ‐ Net cash provided (used) by operating activities 711,655 349,368 22,251 558,937 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Interfund receipts ‐ ‐ ‐ 12,757 Net cash provided (used) by noncapital financing activities ‐ ‐ ‐ 12,757

CASH FLOWS FROM CAPITAL AND RERLATED FINANCING
ACTIVITIES:

Payments on capital lease        (297,566)                       ‐                       ‐                       ‐ Acquisition of capital assets        (122,056)                       ‐                       ‐                       ‐ Interest paid and fiscal charges           (50,315)                       ‐                       ‐                       ‐ Net cash provided (used) by capital and
related financing activities        (469,937)                       ‐                       ‐                       ‐ Net increase (decrease) in cash
and cash equivalents         241,718          349,368            22,251          571,694 CASH AND CASH EQUIVALENTS:

Beginning of year 2,304,886 1,581,489 60,025 1,778,928 End of year $ 2,546,604 $ 1,930,857 $ 82,276 $ 2,350,622 CASH FLOWS FROM OPERATING ACTIVITIES:

Operating income (loss) $ 361,034 $ 359,217 $ 27,499 $ 525,135 Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:

Depreciation 426,577 ‐ ‐ ‐ Change in assets and liabilities:

Accounts receivable and other assets (456) (24,422) ‐ (21,663) Accounts payable and accrued liabilities (75,500) 14,573 (5,248) 55,465 Total adjustments 350,621 (9,849) (5,248) 33,802 Net cash provided (used) by operating activities $ 711,655 $ 349,368 $ 22,251 $ 558,937 Non‐Cash Investing, Capital, and Financing Activities:

Capital assets aquired through capital lease 1,699,064 0 0 0 Total noncash items $   1,699,064 000
Packet 118 Page 170
Public Workers'
Liability Compensation
Self‐ Self‐ Total
$      844,000 $   1,322,000 $      6,843,672
(110,475)        (300,931)        (2,296,725)
(16,047)             (7,920)        (1,174,109)
(733,175)        (264,029)           (997,204)
(15,697)          749,120         2,375,634
‐                       ‐               12,757
‐                       ‐               12,757
‐                       ‐           (297,566)
‐                       ‐           (122,056)
‐                       ‐             (50,315)
‐                       ‐           (469,937)
(15,697)          749,120         1,918,454
856,727      2,302,858         8,884,913
$      841,030 $   3,051,978 $    10,803,367
$         94,778 $      235,150 $      1,602,813
‐                      ‐            426,577
‐                       ‐             (46,541)
(110,475)          513,970            392,785
(110,475)          513,970            772,821
$       (15,697) $      749,120 $      2,375,634
0 0 1,699,064
0 0 1,699,064 $
Packet 119 Page 171
Packet 120 Page 172
Statistical Section
This section of the City of Newark's comprehensive annual 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 City's overall financial condition.

Contents
Financial Trends
These schedules contain trend information to help the readers understand how the City's financial performance and well-being have changed over time. 1 Net Position by Component
2 Changes in Net Position
3 Fund Balances of Governmental Funds
4 Changes in Fund Balances of Governmental Funds
Revenue Source
These schedules present information to help reader assess the City's property and sales tax revenues. 5 Assessed Value of Taxable Property
6 Property Tax Rates - All Overlapping Government
7 Principal Property Tax Payers
8 Property Tax Levies and Collections
9 Taxable Sales by Category
Debt Capacity
These schedules present information to help reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. 10 Ratio of Outstanding Debt by Type
11 Direct and Overlapping Governmental Activities Debt
12 Legal Bonded Debt Margin Information
Demographic and Economic Information
These schedules present demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. 13 Demographic and Economic Statistics
14 Principal Employers
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and activities it performs.
15 Full-Time Equivalent City Government Employees by Function/Program 16 Operating Indicators by Function/Program
17 Capital Asset Statistics by Function/Program

CITY OF NEWARK
Packet 121 Page 173
City of Newark
Net Position by Component
Last Ten Years
(accrual basis of accounting)
(dollars in thousands)
2012 2013 2014 2015 2016 2017* 2018 2019 2020 2021
Primary government
Governmental activities:

Net Investment in Capital Assets $143,258 $142,709 $142,524 $140,931 $140,414 $140,414 $143,058 $147,511 $153,456 $154,434 Restricted 17,596 13,198 12,806 17,260 26,622 39,483 42,954 31,076 89,447 74,408 Unrestricted 9,806 13,264 17,903 (55,634) (43,711) (37,879) (35,998) (11,034) (66,234) (31,461) Total governmental activities
net position $170,660 $169,171 $173,233 $102,557 $123,325 $142,019 $150,014 $167,553 $176,669 $197,381 * Net Position not restated for the implementation of GASB Statement No. 75 or other restatements discussed in Note 14 Fiscal year ended June 30,
Source: City of Newark Basic Financial Statements
-100
-50
0 50
100
150
200
250
300
2012 2013 2014 2015 2016 2017* 2018 2019 2020 2021
Thousands
Net Investment in Capital Assets Restricted Unrestricted Packet 122 Page 174
City of Newark
Changes in Net Position
Last Ten Years
(accrual basis of accounting)
(dollars in thousands)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Expenses
Governmental activities:

General government $3,891 $3,796 $4,643 $5,986 $4,484 $5,337 $6,159 $6,656 $6,668 $6,827 Public safety:

Fire 8,380 8,669 8,665 9,641 9,805 10,560 11,424 10,821 16,336 11,582 Police 13,598 14,643 15,310 15,565 17,202 19,798 21,728 24,012 22,317 27,257 Public Works 6,065 9,834 6,743 6,082 5,934 6,444 8,648 16,837 14,007 13,283 Community development 3,127 2,749 3,052 3,456 3,930 5,002 6,918 2,173 1,914 2,590 Recreation and community services 4,440 3,839 4,212 4,245 4,291 5,243 7,566 6,017 5,663 5,889 Interest on long‐term debt 601 455 430 406 391 373 350 330 2,430 2,165 Total governmental activities
expenses 40,102 43,985 43,055 45,381 46,036 52,757 62,792 66,845 69,335 69,592 Program revenues
Governmental activities:

Charges for services:

General government 73 45 50 14 15 13 12 11 4,309 190
Public safety:

Fire 94 135 115 113 230 323 270 193 172 158
Police 521 555 563 573 729 990 1,109 1,182 1,224 1,609
Public Works 563 560 530 1,181 2,771 3,388 905 5,367 7,374 9,583 Community development 1,398 1,268 1,858 5,048 13,492 14,269 12,482 7,422 4,105 14,220 Recreation and community services 2,391 1,686 2,432 2,273 2,458 2,801 2,459 5,899 1,883 482 Operating grants and contributions 1,492 1,053 938 615 803 642 543 891 1,051 1,909 Capital grants and contributions 1,625 2,337 2,725 2,055 2,584 2,661 2,844 5,031 4,243 3,820 Total governmental program
revenues 8,157 7,639 9,211 11,872 23,083 25,074 20,625 25,996 24,362 31,971 Net (expense)/revenue
Total governmental activities
net expense (31,945) (36,346) (33,844) (33,509) (22,953) (27,683) (42,168) (40,849) (44,973) (37,621) General revenues and other changes in net position
Governmental activities:

Taxes:

Property taxes 11,843 12,559 13,035 13,987 14,967 16,465 19,193 20,700 22,768 24,417 Sales taxes 8,819 9,631 10,182 10,603 11,092 12,949 16,433 19,041 17,442 20,475 Transient occupancy tax 3,323 3,705 4,320 5,067 5,859 6,094 6,362 6,717 5,450 2,916 Utility uers tax 3,231 3,376 3,644 3,617 3,292 3,527 3,631 3,289 3,480 3,367 Other local taxes 1,117 1,132 1,272 1,488 1,799 1,996 2,346 2,162 2,150 2,497 Franchise fees * 2,538 2,870 2,938 3,076 2,725 3,670 3,833 3,970 ‐ 4,177 Motor vehicle in‐lieu 22 23 19 18 18 20 24 23 39 36 Use of money and property 147 49 70 93 189 446 900 2,045 2,497 948 Gain on sale of assets 423 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Miscellaneous 1,037 1,510 2,562 1,926 2,829 1,206 1,049 686 238 950 General revenues 32,500 34,855 38,042 39,875 42,769 46,373 53,770 58,633 54,063 59,783 Loss on disposal of asset (1,036)
Change in net position
governmental activities $555 ($1,491) $4,198 $6,366 $19,816 $18,690 $11,602 $17,784 $9,090 $21,126 * FY20 Franchise fees were categorized as Charges for services Fiscal year ended June 30,
Source: City of Newark Basic Financial Statements
Packet 123 Page 175
Fund Balances of Governmental Funds
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General Fund
Nonspendable:

Supplies and prepaid assets 134 121 555 152 135 145 153 185 163 145 Due from Successor Redevelopment Agency ‐ ‐ ‐ 404 356 216 184 ‐ 184 ‐ Committed:

Pension/OPEB Reserves ‐ ‐ 150 ‐ ‐ 6,424 7,785 10,789 15,989 6,824 Assigned for:

Fire side fund 363 463 613 ‐ ‐ 440 440 440 440 440 Equipment replacement ‐ 155 405 1,305 1,500 2,700 2,900 3,100 5,800 6,000 Waste disposal fund 972 1,028 817 576 429 429 73 631 ‐ 41 Community development ‐ ‐ 242 187 342 513 743 2,793 1,073 ‐ Unassigned 10,701 13,849 16,776 18,904 27,169 23,246 31,666 34,331 39,548 47,223 Total General Fund $ 12,170 $ 15,616 $ 19,558 $ 21,528 $ 29,930 $ 34,111 $ 43,945 $ 52,454 $ 63,054 $ 60,633 All other governmental funds
Restricted for:

Public safety             212             216             199             197             215             295             403             650          4,744          6,053 Community development                (5)               15               15               15                15                15                92        18,767        27,002        10,766 Transportation facilities        10,832
Housing impact        34,536
Street improvements         4,460         3,053         3,740         4,456          9,608        12,884        14,559          4,164        16,744          9,973 Environmental programs             190             241             313             400             491             580             645             688             736             798 Health and welfare               35               34               35               37                37                46                35                36                25                25 Park improvement             151             116             111             730          2,877          5,726          6,044          4,100             747          3,633 Debt service             675             676             677             681             680             680             687             700        37,116          6,511 Landscape and lighting             623             701             665             738             762             875             981          1,195          1,454          1,714 Other purposes (i.e. PEG, State CASp Fee)               ‐              ‐              ‐              ‐ ‐              ‐                          689             777             878             942 Committed:

Community development ‐ General City Plan 173 152 304 576 1,121 1,907 2,242 2,793 3,700 ‐ Assigned to:

Waste disposal fund ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 19 Art in public places 646 646 673 860 959 1,151 1,451 1,626 1,727 1,849 Capital asset acquisition 10,310 6,858 6,159 9,340 12,770 21,715 21,859 25,105 3,107 ‐ Unassigned ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (1,692) (12,911) Total all other governmental funds $ 17,470 $ 12,708 $ 12,890 $ 18,029 $ 29,535 $ 45,874 $ 49,687 $ 60,601 $ 96,289 $ 74,739 Source: City of Newark Basic Financial Statements
Fiscal year ended June 30,

CITY OF NEWARK
Last Ten Fiscal Years
(modified accrual basis of accounting)
(dollars in thousands)
Packet 124 Page 176

CITY OF NEWARK
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(dollars in thousands)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Revenues
Property taxes $11,843 $12,559 $13,035 $13,988 $14,967 $16,465 $19,193 $20,700 $22,768 $24,417 Other local taxes 19,028 20,558 22,200 23,867 24,655 28,151 33,145 35,179 28,522 29,255 Special assessments 472 473 319 431 460 457 507 529 671 655 Licenses, permits and fees 1,117 939 1,443 2,264 4,173 4,149 3,638 3,638 3,241 29,134 Other governmental agencies 2,996 2,974 4,037 3,093 3,345 3,231 3,399 5,486 4,656 5,765 Charges for services 3,808 3,098 4,604 6,352 14,430 15,738 11,960 15,471 14,797 443 Fines and forfeitures 384 377 362 383 529 822 944 966 1,029 378 Use of money and property 147 49 70 93 189 477 900 1,999 2,497 948 Other 851 985 1,374 1,486 2,982 1,793 1,250 686 238 295 Total revenues 40,645 42,011 47,445 51,955 65,729 71,284 74,935 84,654 78,419 91,290 Expenditures
Current:

General government 3,790 3,722 4,526 6,043 4,643 5,231 5,487 5,774 5,734 6,208 Public safety:

Fire 8,142 8,433 8,460 9,634 9,619 10,373 11,433 10,821 11,152 11,715 Police 13,406 14,433 15,282 15,435 16,741 17,954 19,763 20,970 22,563 33,747 Public works 4,881 7,160 4,350 3,663 3,954 3,877 7,522 13,032 9,150 9,608 Community development 3,085 2,708 3,005 3,512 4,089 4,922 6,158 1,858 1,743 2,368 Recreation 3,914 3,458 3,949 4,000 4,092 4,786 6,582 5,554 5,094 4,644 Capital outlay 20 2,365 2,611 1,483 1,321 2,844 2,957 5,840 38,645 43,511 Debt service:

Principal repayment 633 527 572 589 560 584 542 556 544 525 Interest and fiscal charges 761 450 430 410 388 369 348 330 3,172 2,509 Total expenditures 38,632 43,256 43,185 44,770 45,409 50,940 60,791 64,736 97,798 114,835 Excess (deficiency) of revenues
over (under) expenditures 2,013 (1,244) 4,260 7,185 20,321 20,344 14,144 19,918 (19,378) (23,545) Other financing sources (uses)
Proceeds from sale of property ‐             ‐               ‐               ‐               ‐               ‐               ‐             ‐               ‐               ‐ Transfers in 3,085 1,852 2,212                      4,065           3,773           5,836         6,544           6,402         26,442           28,565 Transfers (out) (3,619) (1,924) (2,504)                  (4,141)         (3,910)         (6,201)        (6,909)          (6,650)        (26,691)         (28,578) Issuance of debt 9,704 ‐               ‐               ‐               ‐               ‐               ‐             ‐               ‐               ‐ Debt refunding (9,700) ‐               ‐               ‐               ‐               ‐               ‐             ‐                       63,345 ‐ Bond premium less payment to refunded bond escrow agent ‐             ‐               ‐               ‐               ‐               ‐               ‐             ‐                         2,571 ‐ Capital lease proceeds ‐             ‐                            157 ‐               ‐               ‐               ‐             ‐               ‐               ‐ Total other financing sources (uses) (529) (72) (136) (76) (138) (366) (366) (249) 65,667 (13) Extraordinary gain
RDA Dissolution 423 ‐               ‐               ‐               ‐               ‐               ‐             ‐               ‐               ‐ Net change in fund balances $1,907 ($1,316) $4,125 $7,109 $20,183 $19,978 $13,779 $19,669 $46,289 ($23,558) Debt service as a percentage of
noncapital expenditures 3.7% 2.4% 2.5% 2.4% 2.2% 2.0% 1.6% 1.5% 6.7% 4.4% Source:  City of Newark Basic Financial Statements
Fiscal year ended June 30,
Packet 125 Page 177
Real Property Total Real Total
Fiscal Residential Commercial Industrial Secured Unsecured Total Direct Year Property Property Property Other Property Property Assessed (a) Tax Rate 2012 $ 3,309,572,447 $ 635,000,800 $ 1,179,565,507 $ 127,692,323 $ 5,251,831,077 $ 270,167,762 $ 5,521,998,839 0.16038% 2013 3,320,387,782 630,964,789 1,424,015,618 150,820,781 5,526,188,970 295,134,158 5,821,323,128 0.16512% 2014 3,497,588,932 640,455,423 1,418,773,918 177,080,719 5,733,898,992 341,285,706 6,075,184,698 0.16432% 2015 3,827,802,794 649,505,241 1,426,042,828 211,620,359 6,114,971,222 409,594,577 6,524,565,799 0.16425% 2016 4,083,212,592 688,882,274 1,106,413,993 221,541,798 6,100,050,657 823,549,996 6,923,600,653 0.16383% 2017 4,381,165,279 714,399,736 1,635,285,953 371,907,937 7,102,758,905 502,466,622 7,605,225,527 0.16292% 2018 4,793,351,401 746,379,514 1,776,301,495 800,737,288 8,116,769,698 625,081,222 8,741,850,920 0.16107% 2019 5,594,411,632 791,514,110 1,793,559,114 673,443,440 8,852,928,296 605,704,087 9,458,632,383 0.17423% 2020 6,430,011,765 985,215,137 1,740,916,896 618,894,036 9,775,037,834 605,044,520 10,380,082,354 0.17314% 2021 7,181,543,724 1,039,834,126 1,745,443,867 652,454,373 10,619,276,090 622,858,588 11,242,134,678 0.17928%

CITY OF NEWARK
Assessed Value of Taxable Property
Last Ten Fiscal Years
Source: Alameda County Assessor 2011/12 - 2020/21 Combined Tax Rolls & Assessed Value of Taxable Property Report, The HdL Companies (a) In 1978 the voters of the State of California passed Proposition 13 which limited taxes to a total maximum rate of 1%, based upon the assessed value of the property being taxed.

Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum of 2%). With few exceptions, property is only reassessed as a result of new construction activity or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of the taxable property and is subject to the limitations described above. $0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Millions Unsecured Property Total Real Secured Property
Packet 126 Page 178

CITY OF NEWARK
Property Tax Rates
All Overlapping Governments
Last Ten Fiscal Years
Basic Alameda Bay East Bay Newark
County County Area County Regional Unified Ohlone
Fiscal Wide Water Rapid Go Park School Community Washington Year Levy District Transit Bond District District College Hospital Total 2012 1.0000 0.0077 0.0041 0.0000 0.0071 0.0935 0.0400 0.0186 1.1710 2013 1.0000 0.0069 0.0043 0.0000 0.0051 0.1298 0.0384 0.0181 1.2026 2014 1.0000 0.0066 0.0075 0.0000 0.0078 0.1280 0.0399 0.0291 1.2189 2015 1.0000 0.0093 0.0045 0.0000 0.0085 0.1159 0.0378 0.0171 1.1931 2016 1.0000 0.0075 0.0026 0.0000 0.0067 0.1103 0.0424 0.0313 1.2008 2017 1.0000 0.0080 0.0080 0.0000 0.0032 0.1046 0.0370 0.0256 1.1864 2018 1.0000 0.0082 0.0084 0.0000 0.0021 0.0922 0.0361 0.0243 1.1713 2019 1.0000 0.0049 0.0070 0.0112 0.0057 0.0936 0.0315 0.0242 1.1781 2020 1.0000 0.0071 0.0120 0.0108 0.0060 0.0823 0.0308 0.0221 1.1711 2021 1.0000 0.0067 0.0139 0.0036 0.0014 0.0855 0.0334 0.0213 1.1658 Source: Alameda County Assessor 2010/12 - 2020/21 Combined Tax Rolls & Assessed Value of Taxable Property Report $0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Per Hundred $ Series6 Series2 Series3 Series4 Series8 Series7 Series1 Series5 Packet 127 Page 179

CITY OF NEWARK
Principal Property Tax Payers
Current Year and Ten Years Ago
Percentage Percentage
of Total of Total
Taxable City Taxable Taxable City Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
BMR Gateway Boulevard LLC $366,645,851 1 3.26% $194,425,637 2 3.52% T5 Silicon Valley LP 203,294,162 2 1.81%
JMB Newpark Associates & GGP 177,459,590 3 1.58% 74,259,718 3 1.34% Lennar Homes California Inc. 100,716,356 4 0.90%
Metropolitan Life Insurance Co 96,579,601 5 0.86%
IPT East Bay DC LP 87,325,314 6 0.78%
Arques Investment Company LLC 79,486,259 7 0.71%
Newark Industrial Partners LLC 75,884,798 8 0.68%
Leslie Salt Company 66,038,046 9 0.59% 43,407,391 5 0.79% Silicon Valley Gateway Technology Center 63,271,165 10 0.56% Apple Computer Inc 213,063,827 1 3.86%
Sycamore Bay LLC 52,498,529 4 0.95%
BRE US Industrial Properties LLC 40,096,951 6 0.73%
DCT Cherry Street California LP 34,298,624 7 0.62%
BRCP Stevenson Point LP 33,446,572 8 0.61%
Milprint Packaging LLC 31,308,948 9 0.57%
Newpark Anchor Acquisition LLC 29,964,621 10 0.54%
Subtotal $1,316,701,142 11.73% $746,770,818 13.53%
Total Net Assessed Valuation:

Fiscal Year 2020/21 $11,242,134,678
Fiscal Year 2011/12 $5,521,998,839
2020/21 2011/12
Source: Alameda County Assessor 2011/12 - 2020/21 Combined Tax Rolls Packet 128 Page 180

CITY OF NEWARK
Property Tax Levies and Collections
Last Ten Fiscal Years
Percent
of Total
Current Percent Delinquent Total Tax
Fiscal Total Tax of Levy Tax Tax Collections
Year Tax Levy Collections Collected Collections (a) Collections to Tax Levy 2012 $ 10,916,957 $ 10,833,299 99.2337% $ 260,623 $ 11,093,922 101.6210% 2013 11,661,505 11,627,668 99.7098% 376,444 12,004,112 102.9379% 2014 12,341,426 12,055,900 97.6864% 104,849 12,160,749 98.5360% 2015 13,167,587 12,981,908 98.5899% 91,303 13,073,211 99.2833% 2016 12,034,774 13,998,852 116.3200% 363,854 14,362,706 119.3434% 2017 12,328,151 15,344,462 124.4669% 514,182 15,858,644 128.6377% 2018 14,011,767 17,900,017 127.7499% 601,908 18,501,925 132.0456% 2019 15,081,236 19,415,489 128.7394% 596,591 20,012,080 132.6952% 2020 16,533,492 21,268,642 128.6397% 641,250 21,909,892 132.5182% 2021 17,810,975 22,987,652 129.0645% 651,798 23,639,450 132.7241% Sources: City of Newark, Alameda County Auditor-Controller Agency (a) Information required by GASB Statement 44 differs from information reported. Delinquent tax collections represent total delinquent amounts received during the fiscal year, regardless of the fiscal year of the tax levy. Data for delinquent tax collections by levy year is not available from the Alameda County Assessor's Office.
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
$18.0
$20.0
$22.0
$24.0
$26.0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Millions Tax Levy Tax Collections
Packet 129 Page 181

CITY OF NEWARK
Taxable Sales by Category
Last Ten Calendar Years
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Apparel Stores $59.4 $62.5 $58.2 $52.1 $53.4 $60.7 $61.6 $60.5 $51.6 $26.0 General Merchandise 91.8 71.7 68.4 66.5 64.1 58.6 51.7 45.0 31.4 17.6 Food Stores 21.4 22.0 22.0 22.5 20.2 18.0 18.0 18.0 18.2 19.7 Eating and Drinking Places 76.4 81.8 87.9 95.4 104.1 113.4 123.3 129.2 137.8 90.0 Building Materials 87.1 90.0 104.4 106.9 126.1 129.9 134.8 146.9 151.6 173.7 Auto Dealers and Supplies 115.7 149.1 196.5 229.9 266.7 266.6 261.4 260.2 248.2 228.0 Service Stations 54.4 59.8 53.6 51.8 49.2 43.6 49.6 55.3 56.1 38.7 Other Retail Stores 190.6 183.3 177.7 176.0 179.1 180.7 179.5 157.3 55.6 39.5 All Other Outlets 206.8 242.8 243.5 274.5 325.7 340.1 383.4 480.1 623.9 737.9 Total 903.6$ 963.0$ 1,012.2$ 1,075.6$ 1,188.6$ 1,211.6$ 1,263.3$ 1,352.5$ 1,374.4$ 1,371.1$ Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HdL Companies Note: Due to confidentiality issues, the names of the largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the City's revenue. Information by fiscal year is not readily available.
$0.0
$200.0
$400.0
$600.0
$800.0
$1,000.0
$1,200.0
$1,400.0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Apparel Stores General Merchandise Food Stores
Eating and Drinking Places Building Materials Auto Dealers and Supplies Service Stations Other Retail Stores All Other Outlets
Packet 130 Page 182

CITY OF NEWARK
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Certificates
of Participation Capital Total Percentage
Fiscal and Bank Bond Lease Outstanding of Personal Per
Year Refinancing Premium Obligation Debt Income (a) Capita (a) 2012 $ 11,398,955.0 - $ 401,777.0 $ 11,800,732.0 0.96% 415 2013 10,963,807 - 309,859 11,273,666 0.91% 393
2014 10,510,717 - 347,209 10,857,926 0.84% 369
2015 10,045,261 - 395,588 10,440,849 0.78% 342
2016 9,562,962 - 276,625 9,839,587 0.71% 317
2017 9,059,605 - 153,695 9,213,300 0.65% 294
2018 8,540,948 - 87,084 8,628,032 0.56% 267
2019 8,007,711 - 19,095 8,026,806 0.49% 239
2020 62,820,000 9,730,628 0 72,550,628 4.01% 1,963
2021 62,295,000 9,289,589 1,401,498 72,986,087 3.66% 1,789 Sources: City of Newark
State of California, Department of Finance (population) U.S. Department of Commerce, Bureau of the Economic Analysis (income) Note: Debt amounts exclude any discounts and other amortization amounts. (a) Personal income and population data are presented in the Schedule of Demographic Statistics. $11,800,732.0 11,273,666 10,857,926 10,440,849 9,839,587 9,213,300 8,628,032 8,026,806 72,550,628 72,986,087
$-
$10,000,000.0
$20,000,000.0
$30,000,000.0
$40,000,000.0
$50,000,000.0
$60,000,000.0
$70,000,000.0
$80,000,000.0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Total Outstanding Debt
Packet 131 Page 183

CITY OF NEWARK
Direct and Overlapping Governmental Activities Debt
June 30, 2021
Debt Oustanding
Percentage
Applicable (1)
Share of
Overlapping Debt

OVERLAPPING TAX AND ASSESSMENT DEBT
Alameda County $191,300,000 3.392% $6,488,896
Bay Area Rapid Transit District 1,871,890,000 1.313% 24,577,916 East Bay Regional Park District 133,170,000 2.100% 2,796,570 Ohlone Community College District 423,445,000 15.976% 67,649,573 Newark Unified School District 79,297,075 100.000% 79,297,075 Washington Township Heathcare District 326,370,000 13.649% 44,546,241 City of Newark 1915 Act Bonds 2,745,368 100.000% 2,745,368 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $ 228,101,639

DIRECT AND OVERLAPPING GENERAL FUND DEBT
Alameda County General Fund Obligations $790,122,500 3.392% $26,800,955 Alameda-Contra Costa Transit District Certificates of Participation 11,655,000 4.016% 468,065 City of Newark General Fund Obligations - Direct Debt 62,295,000 100.000% 62,295,000 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 89,564,020 TOTAL DIRECT DEBT 62,295,000
TOTAL OVERLAPPING DEBT 255,370,659
COMBINED TOTAL DEBT $317,665,659 (2)
Notes:

Source: Avenu Insights & Analytics, California Municipal Statistics, Inc. (1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.

Packet 132 Page 184

CITY OF NEWARK
Legal Bonded Debt Margin Information
Assessed valuation:

Secured property assessed value,
net of exempt real property $11,242,134,678
Bonded debt limit: 3.75% of assessed value (a) 421,580,050 (a) California Government Code, Section 43605 sets the debt limit at 15%. The Code section was enacted prior to the change in being assessed value to full market value when it was previously 25% of market value. Thus the limit shown as 3.75% is one-fourth the limit to account for the adjustment of showing assessed valuation at full cash value.

Amount of debt subject to limit:

Total bonded debt 62,295,000
Less: Certificates of participation and bank
refinancing not subject to limit 62,295,000
Amount of debt subject to limit -
Legal bonded debt margin $421,580,050
Total net debt
Total Net Debt Legal applicable to the limit
Fiscal Debt Applicable to Debt as a percentage
Year Limit Limit Margin of debt limit
2012 196,937,440 196,937,440 - 0.00%
2013 207,225,861 207,225,861 - 0.00%
2014 215,014,987 215,014,987 - 0.00%
2015 229,297,499 229,297,499 - 0.00%
2016 259,635,024 259,635,024 - 0.00%
2017 285,195,957 285,195,957 - 0.00%
2018 327,819,410 327,819,410 - 0.00%
2019 354,698,714 354,698,714 - 0.00%
2020 389,253,088 389,253,088 - 0.00%
2021 421,580,050 421,580,050 - 0.00%
June 30, 2021
Packet 133 Page 185

CITY OF NEWARK
Demographic and Economic Statistics
Last Ten Calendar Years
Total
Personal Per Capita Alameda City
Calendar City Income Personal Unemployment County Population Year Population (In Thousands) Income Rate Population % of County 2010 44,380 $ 1,332,171 27,868 10.5% $ 1,510,271 2.94%
2011 43,041 1,225,205 28,466 9.7% 1,525,655 2.82%
2012 43,342 1,243,179 28,683 6.5% 1,540,490 2.81%
2013 43,856 1,288,928 29,390 5.3% 1,510,271 2.90%
2014 43,821 1,339,696 30,572 5.0% 1,583,979 2.77%
2015 44,733 1,388,647 31,043 4.1% 1,627,865 2.75%
2016 45,422 1,424,360 31,358 3.6% 1,645,359 2.76%
2017 47,467 1,533,235 32,301 2.9% 1,660,202 2.86%
2018 48,712 1,636,312 33,591 2.8% 1,669,301 2.92%
2019 48,966 1,809,734 36,958 2.7% 1,670,834 2.93%
2020 48,859 1,992,967 40,790 8.2% 1,656,591 2.95%
Source: State of California, Department of Finance
State of California Employment Development Department
U.S. Department of Commerce, Bureau of Economic Analysis U.S. Department of Labor, Bureau of Labor Statistics

0.00%

2.50%

5.00%

7.50%

10.00%

12.50%

15.00%
Unemployment Rate

2.00%

2.25%

2.50%

2.75%

3.00%

3.25%

3.50%
City Population % of County
$0
$500
$1,000
$1,500
$2,000
$2,500 Thousands
Total Personal Income
Packet 134 Page 186

CITY OF NEWARK
Principal Employers
Current Year and Nine Years Ago
Percentage Percentage
Number of of Total City Number of of Total City
Employer Employees Rank Employment Employees (2) Rank Employment Logitech Inc 656 1 2.66% 621 2 3.0%
WorldPac 439 2 1.78% 280 3,4 1.4%
Amazon Fulfillment Center 420 3 1.70%
Newark Unified School District* 405 4 1.64% 700 1 3.4%
KNT Manufacturing 400 5 1.62%
Risk Management Solutions 297 6 1.20% 270 5 1.3%
Nordstrom Distribution Center 236 7 0.96%
Smart Modular Technologies 214 8 0.87% 249 6 1.2%
Cargill Salt 207 9 0.84% 182 8 0.9%
City of Newark* 146 10 0.59% 183 9 0.9%
Full Bloom Baking Company 280 3,4 1.4%
Morpho Detection 208 7 1.0%
Valassis Direct Mail Inc 166 10 0.8%
Total 3,420 13.85% 3,139 15.4%
Total City Employment (1) 24,700 20,377
Source: Avenu Insights & Analytics
Source: 2011-12 previously published ACFR. Nine year historical data unavailable Results based on direct correspondence with city's local businesses. * FTE only
(1) Total City Labor Force provided by EDD Labor Force Data. 2020-21 2011-12
Packet 135 Page 187

CITY OF NEWARK
Last Ten Fiscal Years
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Function/Program:

General government 22.19 20.43 22.52 24.24 25.67 25.35 24.75 28.37 31.48 24.24 Public safety
Police 79.19 74.06 79.36 79.14 78.10 72.70 81.01 83.66 84.42 53.97 Streets and parks 19.20 19.89 16.88 18.57 18.23 18.65 21.50 19.70 20.48 19.88 Community development 17.14 19.00 14.58 16.52 16.94 23.80 23.73 25.65 28.04 26.18 Recreation 45.52 39.00 34.53 41.45 38.22 41.62 34.59 39.54 36.75 21.73 Total 183.24 172.38 167.87 179.92 177.16 182.12 185.58 196.92 201.17 146.00 Source: City of Newark
Full-Time Equivalent City Government Employees by Function/Program Fiscal Year

0.00 50.00
100.00
150.00
200.00
250.00 FTEs
General government Police Streets and parks Community development Recreation Packet 136 Page 188

CITY OF NEWARK
Operating Indicators by Function/Program
Last Six Fiscal Years
2016 2017 2018 2019 2020* 2021**
Function/Program
Police
Communication center calls answered 31,654 31,670 38,114 42,556 41,749 Police calls for service 31,654 31,670 38,114 42,556 41,749 Law violations
Part I crimes 1,491 1,726 1,782 1,784 1,779
Traffic violations 3,998 1,996 3,032 3,368 2,013
Parking violations 1,425 1,067 1,406 775 1,526
Public works:

Street resurfacing (miles) 7 6 5 4 4 1
Street lights repaired 485 602 472 482 374 548
Recreation:

Recreation class/program participants 156,814 154,120 152,574 187,088 70,132 38,110 Recreation facilities rentals 1,406 1,486 1,445 1,559 1,112 692 Silliman Activity Center use 131,237 125,761 94,766 101,239 66,265 11,962 Miscellaneous:

Library:

Library visitors 187,965 191,709 183,184 188,060 104,695 5,753 Library materials circulated 254,362 249,197 250,934 246,803 159,662 42,724 Source: City of Newark
Alameda County Library
** Newark Library provided No-Contact Pickup service during FY 2020-2021, including July 2020-March 31, 2021.

The library was completely shut down the remainig three months due to the move to the new building. The reduction in the number of Recreation class/program participants, facilities rentals and Silliman Activity Center use are due to impact of COVID-19 Pandemic.

Fiscal Year
* The reduction in the number of Recreation class/program participants, facilities rentals and Silliman Activity Center use due to impact of COVID-19 Pandemic. The decline in Library visitors and materials circulation is mostly due to limited parking as a result of the construction of new Library and impactsof COVID-19 Pandemic.

Packet 137 Page 189

CITY OF NEWARK
Capital Asset Statistics by Function/Program
Last Six Fiscal Years
2016 2017 2018 2019 2020 2021
Function/Program
Public safety:

Fire stations 3 3 3 3 3 3
Police stations 1 1 1 1 1 1
Police patrol units 20 20 20 21 25 27
Public works:

Miles of streets 105 105 105 105 105 105
Street lights 2,849 2,849 2,849 2,849 2,849 2,849
Traffic signals 44 44 44 44 44 47
Recreation:

Community services:

City parks 14 14 14 14 15 15
City parks acreage 124 124 124 124 127 127
Roadway landscaping acreage 56 56 56 56 56 56
Lake acreage 16 16 16 16 16 16
Community activity centers 2 2 2 2 2 2
Senior center 1 1 1 1 1 1
Aquatic center 1 1 1 1 1 1
Miscellaneous
Library 1 1 1 1 1 1
Source: City of Newark
Fiscal Year
Packet 138 Page 190
Item H. 1.

DATE 02/10/2022
TO Honorable Mayor and City Council Members
FROM David Benoun, City Manager
SUBJECT Closed Session pursuant to Government Code Section 54957, Public Employee Performance Evaluation, Title: City Manager
Packet Page 191

Newark City CouncilFebruary 10, 2022

Newark City Council
February 10, 2022