Newark City Council
January 26, 2023

AGENDA
Thursday, January 26, 2023
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 A FACE COVERING
IS RECOMMENDED BUT NOT REQUIRED.

A. ROLL CALL
B. PRESENTATIONS

1. Proclaiming January 14 - 29, 2023 as Sun Salutation Awareness Period 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 12, 2023, minutes

3. Acceptance of the Annual Comprehensive Financial Report (ACFR) for the period ended June 30, 2022
E. PUBLIC HEARINGS
F. OTHER BUSINESS

1. Adopt resolutions initiation of proceedings for the formation of Area Improvement District No. 35 for Lindsay Tract, providing preliminary approval of the Engineer’s Report, declaring intention to order formation of the assessment district and to levy and collect assessments, establishing Property Owner Assistance Program for City-Sponsored Assessment Districts, and setting a public hearing date of March 23, 2023

2. Adopt a resolution terminating the local emergency due to COVID-19 effective February 28, 2023
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
I. ADJOURNMENT

HYBRID IN-PERSON/VIRTUAL MEETING NOTICE
This meeting is being conducted utilizing teleconferencing and electronic means consistent with Assembly Bill 361 (2021). Members of the public may attend the meeting in person, virtually via Zoom, or watch it via YouTube. If you attend the meeting in person, a face covering is recommended but not required.

Mayor Hannon, Vice Mayor Collazo, and Council Members Jorgens, Bucci, 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/89641994740 From a telephone dial 1- 669-900-9128, Webinar ID Number 896 4199 4740 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.

Packet Page 2
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 01/26/2023
TO Honorable Mayor and City Council Members
FROM Sheila Harrington, City Clerk
SUBJECT    Proclaiming January 14 - 29, 2023 as Sun Salutation Awareness Period Hindu Swayamsevak Sangh (HSS) is a 501(c)(3) voluntary, non-profit, cultural organization that organizes service activities and community outreach projects to promote discipline, self-confidence, teamwork, and the spirit of selflessness. HSS will be holding its' 16th annual "Health for Humanity Yogathon" or "Surya Namaskar Yajna" (SNY) event. This event will begin on January 14, 2023, and end on January 29, 2023, and is considered a Sun Salutation Awareness period to create public awareness about yoga and its health advantages.

Mayor Hannon will present a proclamation for the Sun Salutation Awareness Period to a member of the HSS.

Attachments
Proclamation
Packet Page 4
PROCLAMATION NO. 1884

SURYA NAMASKAR (SUN SALUTATION) AWARENESS PERIOD
JANUARY 14-29, 2023
WHEREAS, Hindu Swayamsevak Sangh (HSS) is a voluntary, non-profit, social and cultural organization, celebrating its annual “Health for Humanity Yogathon” or “Surya Namaskar Yajna” to create awareness about yoga and its advantages for the public; and WHEREAS, Yoga is an ancient process of keeping the human mind and body in good health; and
WHEREAS, spiritual training is considered a part of physical training from ancient times; and
WHEREAS, the Surya Namaskar, also known as Sun Salutation, is a special sequence of Yoga postures that provides the key health benefits of Yoga in a very succinct package; NOW, THEREFORE, I, Michael K. Hannon, Mayor of the City of Newark, on behalf of the Newark City Council, do hereby proclaim January 14-29, 2023, as

SURYA NAMASKAR (SUN SALUTATION) AWARENESS PERIOD
in Newark and encourage all residents to maintain a healthy lifestyle and include Sun Salutations daily during this time as a part of physical activity and/or spiritual training.

IN WITNESS THEREOF, I have hereunto set forth my hand and caused the Official Seal of the City of Newark, State of California, to be affixed this Eleventh Day of January, Two Thousand Twenty-three.

MICHAEL K. HANNON
Mayor
Packet Page 5
Item  D. 1.

DATE 01/26/2023
TO Honorable Mayor and City Council Members
FROM Krysten Lee, Finance Director
SUBJECT    Approval of Audited Demands
Attachments
Approval of Audited Demands
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
Packet Page 15
Packet Page 16
Packet Page 17
Item  D. 2.

DATE 01/26/2023
TO Honorable Mayor and City Council Members
FROM Sheila Harrington, City Clerk
SUBJECT    Approval of January 12, 2023, minutes
Attachments
Minutes
Packet Page 18
City of Newark | Newark City Council
Mayor Michael K. Hannon | Vice Mayor Maria “Sucy” Collazo | Council Members: Luis L. Freitas, Mike Bucci, and Matthew Jorgens Draft Minutes
Thursday, January 12, 2023
7:00 P.M.

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

B. PRESENTATIONS

1. Introduction of employees
Mayor Hannon introduced Diana Cangco, Principal Civil Engineer, Narayan Krishnan, Information Technology Analyst, Peter Fong, Information Technology Analyst, Sheena Raj, Information Technology Analyst, and Kurt Mena, Information Technology Technician II.

2. Presentation from the Alameda County Mosquito Abatement District District Manager Ryan Clausnitzer provided an update on the District's activities. Board Trustee Eric Hentschke was also present. Presentation on file with City Clerk.

C. PUBLIC COMMENT
Mike Marzano thanked Public Works Maintenance Division staff for the quick response to a damaged tree during the recent storm.

D. CONSENT CALENDAR
Council Member Bucci moved, Vice Mayor Collazo seconded, to approve Consent Calendar Items D.1 through D.5, 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
Packet Page 19
Page No. 2
City of Newark City Council Minutes January 12, 2023

2. Approval of December 8 and December 15, 2022 meeting minutes

3. 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 12 Pursuant to AB 361 Resolution No. 11456

4. Adopt a resolution approving the first amendment to the Contractual Services Agreement with Orion Security
Resolution No. 11457
Contract No. 22041

5. Resolution approving and authorizing the City Manager to execute the First Amendment to the Contractual Services Agreement with 4Leaf Inc. to provide temporary professional code enforcement services
Resolution No. 11458
Contract No. 22059
E. PUBLIC HEARINGS
F. OTHER BUSINESS

1. Economic Development Update Informational Report
Economic Development Manager Stedler and Michael Cohen, Spectrum Small Business Services gave the presentation. Presentation on file with City Clerk.

No one from the public requested to speak.

Ms. Stedler noted that Lisa Cazzeli Torres, Morgan Pedersen, and Naz Jalalidin were present and thanked them for their help.

Council Member Bucci stated his concern on the rent moratorium expiring and the impact to renters. He requested that City staff monitor the State’s actions.

This item was informational only.

Packet Page 20
Page No. 3
City of Newark City Council Minutes January 12, 2023
G. CITY COUNCIL MATTERS
Council Member Bucci thanked Eric Hentschke for his work on the Alameda County Mosquito Abatement District. He also thanked the Public Works Maintenance Division and Police Department for their work during the storms.

Council Member Jorgens thanked the Public Works Maintenance Division for their work during the storms
Council Member Freitas thanked the Public Works Maintenance Division for keeping the streets safe during the storms. He requested that a letter be sent to the owner of the vacant Kentucky Fried Chicken building on Thornton Avenue requesting that they maintain the property. He noted that the Church of Christ building has a new sign indicating that it will be a private school. In response to his question about Thornton Avenue, Public Works Director Fajeau stated that staff applied for federal funds to repave Thornton Avenue from Interstate 880 to Olive Street.

Mayor Hannon stated that he presented a Dr. Martin Luther King, Jr. Day proclamation for the Afro-American Cultural and Historical Society’s annual Dr. King commemoration program.

Vice Mayor Collazo thanked City Manager Benoun for his timely updates during the storms. She wished everyone health, wisdom, patience, happiness, and prosperity in the new year. Shop Newark.

H. CLOSED SESSION
I. ADJOURNMENT
Mayor Hannon adjourned the meeting at 8:29 P.M.

Packet Page 21
Item  D. 3.

DATE 01/26/2023
TO Honorable Mayor and City Council Members
FROM Krysten Lee, Finance Director
SUBJECT    Acceptance of the Annual Comprehensive Financial Report (ACFR) for the period ended June 30, 2022
SUMMARY AND RECOMMENDATION
Staff recommends that the City Council, by motion, accept the Annual Comprehensive Financial Report (ACFR) for the period ended June 30, 2022.

BACKGROUND
As part of the year-end closing process, staff presents the audited ACFR for the fiscal year ended June 30, 2022. This report’s financial statements provide information on the City’s year-end financial condition and operational results for FY 2022. Lance, Soll & Lunghard, LLP (LSL) audited the report and issued an unmodified audit opinion.

The City’s financial statements were prepared according to the requirements of the Government Accounting Standards Board (GASB). There are two government-wide financial statements that 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, there is a 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. The objective and general purpose of external financial reporting is accountability and transparency.  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, 2022, and 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 fourth year of engagement.

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 ACFR for the fiscal year ended June 30, 2021. To be awarded a Certificate of Achievement, a government must publish an easily readable Packet Page 22
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. Staff believes that the current ACFR for the fiscal year ended June 30, 2022, continues to meet the Certificate of Achievement for Excellence in Financial Reporting Program's requirement, and was submitted to GFOA to determine its eligibility for another certificate.

DISCUSSION/ANALYSIS
Financial Highlights for FY 2022
Government-wide:
• At June 30, 2022, the assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources by $229.6 million (net position). This is an increase of $32.2 million from the prior fiscal year, resulting from an increase in cash, decrease in long-term liabilities, and increase in deferred inflow of resources from current year activities.
• Government-wide revenues include program revenues of $27.7 million and general revenues of $65.8 million, an increase of $1.6 million total revenues from the prior fiscal year. Overall program revenues were $4.2 million lower than the previous year, as lower impact fees revenue more than offset increases in operating and capital grants and contributions. General revenues were $6.0 million higher due to increases in all revenue categories including property tax, sales tax, transient occupancy tax, utility users tax, and franchise fees.
• Government-wide expenses totaled $61.3 million, a decrease of $8.5 million from the prior year's total of $69.6 million. This decrease reflects a lower pension contribution compared to the prior year and lower operating expenses as City departments continued to spend prudently.

Governmental Funds:
• At the close of FY 2022, the City's governmental funds reported combined fund balances of $148.8 million, an increase of $13.4 million in comparison with the prior fiscal year. This is due to total revenues of $91.4 million exceeding total expenditures of $77.9 million.
• Governmental Fund revenues were $91.4 million in FY 2022 and was relatively flat compared to FY 2021. The combined increase in property tax, sales tax, intergovernmental revenue and current services charges offset decreases in impact fees revenue.
• Governmental Fund expenditures were $77.9 million in FY 2022, a decrease of $36.9 Packet Page 23
million compared to FY 2021, as last fiscal year included large amounts of capital construction costs for the new Civic Center.

A final version of the FY 2022 ACFR will be available on the City’s website.

FISCAL IMPACT
There is no fiscal impact.

REVIEW AND APPROVAL
Prepared by - Michelle Villanueva, Senior Accountant
Reviewed by - Gloria del Rosario, Accounting Manager
Reviewed by - Krysten Lee, Finance Director
Reviewed by - Kristopher J. Kokotaylo, City Attorney
Approved by - David J. Benoun, City Manager
Attachments
ACFR FY 2022
Packet Page 24
City of Newark
Newark, California
Annual Comprehensive Financial Report
For the year ended June 30, 2022
Prepared by:

Finance Department
Krysten Lee
Finance Director
Packet Page 25
Packet Page 26
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 27
City of Newark
Table of Contents
Page
Financial Section, Continued
Required Supplementary Information:

Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual General Fund ....................................................................................................................................................64 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual American Rescue Plan ACT (ARPA)  ..................................................................................................................65 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual Public Safety Impact Fees Fund ........................................................................................................................66 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual Community Service Impact Fees Fund..............................................................................................................67 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual Development Maintenance Impact Fees  .........................................................................................................68 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual Park Impact Fees Fund......................................................................................................................................69 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual Measure B 1986 ACTIA .....................................................................................................................................70 Notes to Required Supplementary Information .....................................................................................................71 Defined Benefit Pension Plan:

Schedule of Changes in Net Pension Liability and Related Ratios – Agent Multiple Employer Plan..........................................................................................................................72 Schedule of Plan Contributions ‐ Agent Multiple Employer Plan.....................................................................73 Schedule of Proportionate Share of the Net Pension Liability – Cost Sharing Plan ..............................................................................................................................................74 Schedule of Plan Contributions – Cost Sharing Plan.........................................................................................75 Other Post Employment Benefit Plan:

Schedule of Changes in Net OPEB Liability and Related Ratios........................................................................76 Schedule of OPEB Contributions.......................................................................................................................77 Packet Page ii 28
City of Newark
Table of Contents
Page
Supplementary Information:

Non‐Major Governmental Funds:

Combining Balance Sheet.................................................................................................................................82 Combining Statement of Revenues, Expenditures
and Changes in Fund Balances...................................................................................................................86 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:

Paramedic Tax Special Revenue Fund ..............................................................................................................90 Alameda County EMS Grant (FRALS)  ...............................................................................................................91 Police Grants Fund............................................................................................................................................92 Community Development Act (HCD) Fund.......................................................................................................93 Measure D – Waste Management Fund...........................................................................................................94 Gas Tax  .............................................................................................................................................................95 Measure B (ACTC) Local Streets and Road Fund ..............................................................................................96 Measure BB (ACTC) Local Streets and Road Fund ............................................................................................97 Measure F (VRF) ACTC Fund .............................................................................................................................98 SB1 RMRA – Road Maintenance and Repair Fund............................................................................................99 Hazardous Materials Program Fund ...............................................................................................................100 State Senate Bills Fund ...................................................................................................................................101 Auto Break‐in Prevention (AB74) Fund ..........................................................................................................102 State Construction Maintenance Fund...........................................................................................................103 PEG Fees Fund ................................................................................................................................................104 Art in Public Places Special Revenue Fund .....................................................................................................105 Miscellaneous State Grants Fund ...................................................................................................................106 Landscape and Lighting District Fund .............................................................................................................107 Internal Service Funds:

Combining Statement of Net Position............................................................................................................110 Combining Statement of Activities and Changes in Net Position...................................................................112 Combining Statement of Cash Flows..............................................................................................................114 Statistical Section
Net Position by Component.........................................................................................................................................118 Changes in Net Position...............................................................................................................................................119 Fund Balances of Governmental Funds.......................................................................................................................120 Changes in Fund Balances of Governmental Funds.....................................................................................................121 Assessed Value and Estimated Actual Value of Taxable Property...............................................................................122 Property Tax Rates.......................................................................................................................................................123 Packet Page iii 29
City of Newark
Table of Contents
Page
Statistical Section, Continued
Principal Property Taxpayers.......................................................................................................................................124 Property Tax Levies and Collections............................................................................................................................125 Taxable Sales by Category ...........................................................................................................................................126 Ratio of Outstanding Debt by Type  .............................................................................................................................127 Direct and Overlapping Governmental Activities Debt ...............................................................................................128 Legal Bonded Debt Margin Information......................................................................................................................129 Demographic and Economic Statistics.........................................................................................................................130 Principal Employers .....................................................................................................................................................131 Full‐Time Equivalent City Government Employees by Function/Program..................................................................132 Operating Indicators by Function/Program.................................................................................................................133 Capital Asset Statistics by Function/Program..............................................................................................................134 Packet Page iv 30
City of Newark
Finance Department
37101 Newark Boulevard
Newark, CA 94560
December 16, 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, 2022. 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 assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal controls the City has established for this purpose. Because the cost of internal controls 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, 2022. 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 is in close proximity to universities and some of California’s largest and fastest growing companies. As of January 1, 2022, the City’s population was estimated by the California Department of Finance at 47,229, 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 this form 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 Packet Page
v 31
members, and hiring both the City’s manager and attorney. The City Manager is responsible for carrying out 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 municipal services to 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 services including 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 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 2022 was much stronger, nearing two years after the pandemic first hit. Property tax revenue, representing the general fund’s largest revenue source, increased slightly. The City’s total property assessment roll was $11.9 billion for fiscal year 2022, marking a 5.56% increase over the prior period. Sales tax revenue, which is the second largest source of revenue and includes the Measure GG ½ cents sales tax, also increased from pre-pandemic levels, along with other revenue categories such as transient occupancy tax, utility users tax, and franchise fees.

The City was allocated a total of $11.8 million of State and Local Fiscal Recovery Funds, provided by the American Rescue Plan Act (ARPA) which was passed by the Federal government on March 11, 2021. The first tranche receipt of the Federal funding was $5.9 million and was received in July 2021. The second tranche was received in July 2022 for the upcoming fiscal year. The Newark City Council held a work session on October 7, 2021 to discuss options to spend the City of Newark’s $11.8 million allocation. The Council provided feedback to City staff and a proposed City of Newark ARPA Recovery Plan was developed. As approved by the City Council on October 28, 2021, this much needed funding allowed the City to hire positions which were frozen at the onset of the pandemic and also funded operating budgets across City departments which were cut in response to the pandemic and resulting decreased revenues.

While 41% of the ARPA funding went to restore positions and one year of department operating budgets, the majority of funding has been earmarked for the Newark community. $1.5 million of the ARPA funding was paid out during fiscal year 2021 as small business grants to 82 business who qualified for the needs-based funding. $1.5 million has been designated for affordable housing and another $1.3 million has been allocated to the Newark Family Resource Center and Bilingual Preschool/Promotores Training and Teen Program. Another $1.2 million is currently designated to improve broadband for the business and residential community. The balance will go to fund recreation program scholarships, non-profit agency grants, and other community projects.

Packet Page vi 32
Over the last two years, the City has observed prudent spending of operating budgets and only recently with improvements in the economy has started to hire new positions to provide for continued services to the public.

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.

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 17.9%. 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 16.8% of the fiscal year 2022 general fund operating expenditures. “Reserves” are the portion of a local government’s fund balance that are available to respond to the unexpected. Reserves provide a government with options to respond to emergencies and flexibility to buffer against shocks and other forms of risk and are integral to financial stability.

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 reassessed using the Government Finance Officers Association (GFOA) risk-based analysis framework to update the Fund Balance Policy during fiscal year 2023.

The Capital Project Reserve was established by the City to fund capital improvement projects. During fiscal year 2022, budgeted transfers of $21.5 million, mainly from Measure GG funds ($10.2 million), Public Safety Facilities Impact Fees ($4.8 million), and Community Service Facilities Impact Fees ($5.7 million) offset the negative fund balance in the Capital Project Fund at the end of fiscal year 2021, which were largely due to capital outlays for the new Civic Center project. Additional funding from the current year transfers will also fund remaining project expenditures.

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 2022, the second additional discretionary payment was paid to CalPERS in the amount of $5.0 million. This is in addition to the $10.0 million payment made to CalPERS in fiscal year 2021. Following the pension and OPEB reserve policy, additional funding to this reserve will be made from salary savings and unallocated fund balance. At the close of fiscal year 2022, the pension and OPEB reserve had a balance of $7.7 million which will be used to offset future pension and OPEB required contributions.

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

Packet Page vii 33
NewPark Place Specific Plan
The vision of this project is to transform the greater NewPark Mall area into a premier, vibrant, urban place which includes modern residential areas, generous retail and dining opportunities, 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.
• Costco - the proposed Costco retail 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 Specific Plan
The Bayside Newark Specific Plan project area includes 233 acres of land that has contained various industrial, manufacturing, chemical processing and salt production facilities since the early twentieth century. The City envisions a transit-oriented community built next to a future Dumbarton Commuter Rail station, which will provide a broad range of new housing, retail and business opportunities in western Newark. Residential neighborhoods will be created that take advantage of transit investments to facilitate alternative commutes, dramatically increase pedestrian mobility, and to take full advantage of its location and surrounding open space resources. Since 2014, the city has approved six development phases, resulting in nearly 1,750 new residential units that have been completed or are under construction.

In 2022, the City Council approved the latest residential phase known as FMC Willow. The FMC Willow project would redevelop a 22.1-acre site near Willow Street and Enterprise Drive into a 370-unit multifamily community including 279 townhouse units, a 1.6-acre mixed-use area with 3,600 square feet of retail, a club room, fitness center, and 90 affordable units, a 5-acre community park (Grand Park), and approximately 1.8 acres set aside for the future transit station.

Old Town Newark Specific Plan
The Old Town Newark Specific Plan aims to bring together over 30 years of planning and analysis to implement long-standing goals for revitalization, including new public spaces, improvements to Thornton Avenue, and opportunities for new multifamily and residential mixed-use development. At the same time, this plan provides steps to maintain the existing housing stock and avoid displacement of existing residents and businesses.

Sanctuary and Sanctuary West
This is an approximately 950-acre site located in southwest Newark and planned uses for this area include a recreational amenity, approximately 400 housing units, 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.

Packet Page viii 34
In addition to the above planning projects, the City is working on the following projects:
• Housing Element Update – The Housing Element is part of Newark’s General Plan and identifies policies and actions to meet the housing needs of the City’s current and future residents at all income levels. The City’s Housing Element update is expected to be completed by Spring 2023, complying with State law that every City and County adopt a Housing Element every eight years.

The Housing Element update will contain components and analysis required by State law, as well as a comprehensive community engagement program.
• Cedar Community Apartments Homekey Project– Homekey is a statewide program to provide housing for low-income households and those who are experiencing homelessness. In January 2022, the City Council authorized staff to apply for a Homekey Round 2 program grant in an amount not to exceed $39 million and assigned $1.5 million from the City’s ARPA Recovery Fund and $4.5 million from the Housing Impact Fee Fund for the conversion of an extended stay hotel into affordable housing. In July 2022, the City received notification of a Homekey grant award in the amount of $38.2 million, the sixth largest award in the state among 108 total Homekey awards and the tenth largest project in terms of total affordable units created. This project award will fund the conversion of 125 hotel suites into permanent supportive and affordable housing apartment units into a community known as Cedar Community Apartments.

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, 2021. 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 35
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
Manager
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 xPage 36
Newark Mayor & City Council
June 30, 2022
Alan L. Nagy
Mayor
Michael K. Hannon
Vice Mayor
Luis L. Freitas
Council Member
Maria “Sucy” Collazo
Council Member
Mike Bucci
Council Member
Packet xiPage 37

CITY STAFF
June 30, 2022

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

HUMAN RESOURCE DIRECTOR
Jennifer Solito
FIRE CHIEF (ALAMEDA CO. FIRE DEPARTMENT)
William McDonald
Packet xiiPage 38
Packet xiPage ii 39
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, 2021
Executive Director/CEO
Packet
xPage iv 40
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, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the financial 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, 2022, 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 41
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, budgetary comparison schedules, and required pension and other postemployment benefits schedules, as listed on the table of contents, 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 42
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 fund financial statements and schedules (supplementary information) 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 supplementary information is fairly stated, in all material respects in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory section 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 December 16, 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
December 16, 2022
Packet Page 3 43
Packet Page 44
City of Newark
Management’s Discussion and Analysis
For the year ended June 30, 2022
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, 2022. 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, 2022, the assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources by $229.6 million (net position). This is an increase of $32.2 million from the prior fiscal year. Of this amount, $88.3 million are restricted, and ($16.2) million represents unrestricted net position.
• Government-wide revenues include program revenues of $27.7 million and general revenues of $65.8 million, an increase of $1.6 million total revenues from the prior fiscal year. • Government-wide expenses totaled $61.3 million, a decrease of $8.5 million from the prior year's total of $69.6 million.

Governmental Funds:
• At the close of fiscal year 2022, the City's governmental funds reported combined fund balances of $148.8 million, an increase of $13.4 million in comparison with the prior fiscal year. • Governmental Fund revenues were $91.4 million in fiscal year 2022 and was relatively flat compared to fiscal year 2021.
• Governmental Fund expenditures were $77.9 million in fiscal year 2022, a decrease of $36.9 million compared to fiscal year 2021.
• Approximately 29.6% of the fund balance ($43.9 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 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 ($81.9 million), 3) committed for specific purposes ($7.7 million), or 4) assigned for specific purposes ($15.2 million).

OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the City's basic financial statements, 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.

Packet Page 5 45
City of Newark
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2022
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. • 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 uses fund 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, American Rescue Plan Act Fund, Public Safety Impact Fees Fund, Community Service Impact Fees Fund, Traffic Impact Impact Fees Fund, Housing Impact Fees Fund, Development Maintenance Impact Fees Fund, Park Impact Fees Fund, Measure B ACTIA 1986 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 Packet Page 6 46
City of Newark
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2022
its Equipment Replacement, Equipment Operations, Office Support, Building Maintenance, Public Liability SelfInsurance, and Workers' Compensation functions. Because these services predominantly benefit governmental activities, they have been included within governmental activities in the Government-wide Financial Statements.

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 a custodian.

These funds are reflected as Custodial Funds in the Statements of Changes in Fiduciary Net Position.

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, American Rescue Plan Act Fund, Public Safety Impact Fees Fund, Community Service Impact Fees Fund, Park Impact Fees Fund, Housing Impact Fees Fund, Measure B ACTIA 1986 Fund, and the funding progress of the City's pension and OPEB 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, 2022 and 2021.

Packet Page 7 47
City of Newark
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2022
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 $229.6 million (net position), which was an increase of $32.2 million from the prior fiscal year. The increase in cash, decrease in long-term liabilities and increase in the deferred inflow of resources contributed to the net increase in net position year over year.

The most significant portion of the City's net position, $157.5 million, reflects its investment in capital assets(e.g., land, buildings, machinery, equipment, and vehicles), less any related outstanding debt used in acquiring those assets (net investment in capital 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 resources required to repay the outstanding debt must be provided from other sources since the capital assets cannot be used to liquidate the debt.

Another portion of the City's net position, $88.3 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 ($16.2) 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.

Assets: 2022 2021
Cash and investments $158.7 $142.7
Capital assets, net 229.1 227.3
Other assets 16.0 15.3
Total assets 403.8 385.3
Deferred outflow of resources 27.0 28.7
Liabilities:

Long-term liabilities 144.6 193.4
Other liabilities 18.6 15.9
Total liabilities 163.2 209.3
Deferred inflow of resources 38.0 7.3
Net Position:

Net investment in capital assets 157.5 154.4
Restricted 88.3 74.4
Unrestricted (16.2) (31.4)
Total net position $229.6 $197.4
Governmental Activities
Comparative Statements of Net Position
June 30, 2022 and 2021
(Amounts in Millions)
Packet Page 8 48
City of Newark
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2022
The following table shows the condensed comparative Statements of Activities and Changes in Net Position for the fiscal years ended June 30, 2022 and 2021.

Revenues: 2022 2021
Program revenues:

Charges forservices $          17.1 $          26.2
Operating grants and contributions                4.2                1.9 Capital grants and contributions                6.4                3.8 Total program revenus             27.7             31.9 General revenues:

Taxes:

Property tax             25.8             24.4
Sales tax             23.7             20.5
Transient occupancy tax                4.2                2.9 Utility users tax                3.7                3.4 Other local taxes                2.8                2.5 Franchise fees                4.7                4.2
Use of money and property               ‐                0.9 Miscellaneous                0.9                1.0
Total general revenues             65.8             59.8 Total revenues             93.5             91.7
Expenses:

General government             10.1                6.8
Public safety:

Fire             12.9             11.6
Police             17.9             27.2
Public works             10.4             13.3
Community development                2.8                2.6 Recreation                5.0                5.9
Interest on long‐term debt                2.2                2.2 Total net position $          61.3 $          69.6
Increase (decrease) in net position             32.2             22.1 Loss on disposal of asset               ‐              (1.0) Net position ‐ beginning, as restated           197.4           176.3 Net position ‐ ending $        229.6 $        197.4
Comparative Statements of Activities and Changes in Net Position June 30, 2022 and 2021
(Amountsin Millions)
Governmental Activities
Packet Page 9 49
City of Newark
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2022
The City's expenses totaled $61.3 million in fiscal year 2022. These expenses were offset by program revenues of $27.7 million and general revenues of $65.8 million, resulting in a $32.2 million increase in the ending net position which was $229.6 million for fiscal year 2022.

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 $9.1 million lower compared to the prior fiscal year and was largely due to the $8.8 million decrease in collective impact fees reflecting lower development activity from the prior fiscal year. Operating grants and contributions were $2.3 million higher and includes the first tranche receipt of State and Local Fiscal Recovery Funds from the American Recovery Plan Act (ARPA). Capital grants and contributions also increased $2.6 million, namely to account for increased funding from Alameda County Transportation Commission (ACTC) Measure B.

General Revenues – The City’s general revenues were $6.0 million more compared to the prior fiscal year. Property tax revenues, representing the largest portion of general revenues were $1.4 million, or 5.8% higher, reflecting the continued increase of assessed value of secured property in the City. Sales tax revenue was $3.2 million, or 15.6% higher, million higher compared to the prior fiscal year, reflecting improving trends in consumer spending coming out of the pandemic. Likewise, travel occupancy tax at $4.2 million was $1.3 million higher compared to the prior fiscal year. The largest decrease in general fund revenues was in interest earnings, which dropped $0.9 million due mainly to negative fair market value adjustments.

Expenses – Expenses decreased by $8.3 million, mainly as the prior year included a $10.0 million additional discretionary payment to CalPERS while the current year included a $5.0 million payment. Putting aside these payments to CalPERS, expenses were $3.5 million lower in the fiscal year as city departments continue to spend prudently coming out of the 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, 2022, the City's governmental funds reported combined fund balances of $148.8 million, an increase of $13.4 million in comparison with the prior fiscal year. Approximately 29.5% of the fund balance amount ($43.9 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 ($81.9 million), 3) committed for specific purposes ($7.6 million), or 4) assigned for specific purposes ($15.2 million). Further details of the fund balances can be found in Note 10 in the disclosures.

Governmental revenues in fiscal year 2022 were $91.4 million, similar to the prior fiscal year. The combined increase in property tax ($1.4 million), sales tax ($5.1 million), intergovernmental revenue ($2.5 million), and current service charges ($0.8 million) largely offset the decrease in licenses, permits which was down due to lower collective impact fees resulting from lower development activity during fiscal year 2022.

Packet 10Page 50
City of Newark
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2022
Governmental expenditures in fiscal year 2022 were $77.9 million, a decrease of $36.9 million from the prior fiscal year. Most of this decrease was due to the drop in the Capital Project fund expenditures as last year included major capital outlays for construction of the new Civic Center. This project was largely completed during fiscal year 2021.

General Fund
The General Fund is the primary operating fund of the City. At June 30, 2022, the spendable assigned and unassigned fund balance of the General Fund was $52.3 million, while total fund balance was $60.2 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 $1.3 million from fiscal year 2021. Overall revenues of $71.7 million were offset by $63.8 million of expenditures and net transfers out of $9.2 million. The General Fund also includes a restatement of the beginning fund balance for $0.8 million which was due from the correction of reported balances between the State Senate Bill Funds and the General Fund from the ERP conversion.

American Rescue Plan Act (ARPA) Fund
The American Rescue Plan Act Fund is new for fiscal year 2022 and reports Federal funds received in response to the COVID-19 pandemic. While the first tranche of $5.9 million was received in July 2021, only $2.8 million is reported as current year income to match the current year use of funds for expenditures and transfers (primarily to the General Fund). The remaining balance of $3.0 million is recognized as unearned revenue on the balance sheet and will be spent during fiscal year 2023.

Public Safety Impact Fees Fund
The Public Safety Impact Fees 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 $0.6 million were added to the fund balance during fiscal year 2022, with no expenditures incurred, but $4.8 million was transferred to the Capital Projects Fund to support the New Civic Center Project expenditures.

Community Service Impact Fees Fund
The Community Service Impact Fees 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 $0.5 million were added to the fund balance during fiscal year 2022 , with no expenditures incurred, but $5.7 million was transferred to the Capital Projects Fund to support the New Civic Center Project expenditures.

Traffic Impact Fees Fund
The Traffic Impact Fees Fund accounts for fees which provide for funding of additional traffic signals or improved traffic operations. Revenues of $1.0 million were added to the fund balance during fiscal year 2022 as no expenditures were incurred.

Packet 11Page 51
City of Newark
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2022
Housing Impact Fee Fund
The Housing Impact Fees 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 Fund reported $6.4 million of revenue, with nominal expenditures. This revenue is considerably less than the prior fiscal year due to the decrease in development activity during fiscal year 2022.

Development Maintenance Impact Fee Fund
The Development Maintenance Impact Fee Fund accounts for fees received from developers and grants to maintain city-owned parks. Revenues over expenditures were $0.2 million in fiscal year 2022.

Park Impact Fee Fund
The Park Impact Fee 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 were $1.8 million in fiscal year 2022, with no expenditures incurred.

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 2022 were from street construction projects.

Capital Projects Fund
The Capital Projects Fund received $21.6 million of transfers, largely to fund capital outlay expenditures related to construction of the New Civic Center from the prior fiscal year and to fund remaining project costs.

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 three fiscal years total $78.4 million.

Proprietary Funds
The City's proprietary funds consist of the Internal Service Funds with a combined total net position of $10.5 million at the end of fiscal year 2022. Total operating expenses of $6.7 million and non-operating interest expense of $0.1 million matched operating revenues of $6.8 million.

Packet 12Page 52
City of Newark
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2022

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

Fiscal year 2022 was the second year of the City's biennial budget, which was adopted on June 25, 2020. The General Fund revenue budget for fiscal year 2022 was amended during the year, increasing it by $11.6 million as the economy improved and negative effects of the pandemic waned. Actual revenues were $3.4 million over the final amended budget and $15.0 million over the original budget. This increase was primarily due to higher property tax assessed valuations, higher than anticipated sales tax revenue, and higher licenses, permits, and fees when the budget was last amended. Actual expenditures, excluding transfers out, for the fiscal year were $10.7 million under the final amended budget and $4.0 million over the original budget.

CAPITAL ASSETS
The City's capital assets include those assets that are used in the performance of the City's services. At June 30, 2022, the City's capital assets used in governmental activities amounted to $229.0 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. 2022 2021
Land $4.4 $4.4
Park land 30.1 30.1
Landscaping 8.8 8.7
Street trees 0.7 0.7
Construction in progress 3.0 2.7
Building and improvements 128.6 125.5
Infrastructure:

Streets 81.6 79.0
Sidewalks, curbs, gutters, and walls 18.3 17.4
Street lights 3.2 3.2
Traffic signals 3.9 3.9
Equipment 15.5 15.1
Less: accumulated depreciation (69.1) (63.5)
Total capital assets $229.0 $227.2
Governmental Activities
Packet 13Page 53
City of Newark
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2022

LONG-TERM OBLIGATIONS
On June 30, 2022, the City had long-term debt outstanding of $71.7 million compared to $73.0 million in the prior year.

The City's long-term debt obligations at June 30, 2022 and 2021 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, 2022, a total of $1.9 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's finances. Questions concerning any information provided in this report or requests for additional information should be addressed to the City of Newark, Finance Department, 37101 Newark Boulevard, Newark, California 94560-3796.
2022 2021
Certificates of participation $70.6 $71.6
Financed purchase obligations 1.1 1.4
Total long-term debt $71.7 $73.0
Governmental Activities
Packet 14Page 54

BASIC FINANCIAL STATEMENTS
Packet Page 55
City of Newark
Statement of Net Position
June 30, 2022
Primary
Government
Governmental
ASSETS Activities
Current assets:

Pooled cash and investments $ 158,734,575
Receivables:

Accounts 141,923
Taxes 5,751,514
Special assessments 87,080
Intergovernmental 3,116,240
Interest 128,162
Other, net 530,751
Supplies and other assets 237,368
Restricted assets:

Cash with fiscal agent 5,968,191
Total current assets 174,695,804
Noncurrent assets:

Capital assets, not being depreciated 47,026,525
Capital assets, net of depreciation 182,043,970
Total noncurrent assets 229,070,495
Total assets 403,766,299

DEFERRED OUTFLOW OF RESOURCES
Pension related amounts 26,213,658
OPEB related amounts 659,587
Deferred charge on refunding 119,167
Total deferred outflow of resources 26,992,412

LIABILITIES
Current liabilities:

Accounts payable 5,406,763
Accrued liabilities 1,435,469
Unearned revenues 3,992,028
Deposits payable 1,989,862
Compensated absences - due within one year 2,162,152
Claims payable - due within one year 521,007
Financed purchased obligations - due within one year 290,145 Bonds payable - due within one year 2,345,000
Total current liabilities 18,142,426
Noncurrent liabilities:

Compensated absences - due in more than one year 21,840 Claims payable - due in more than one year 2,344,901
Financed purchased obligations - due in more than one year 797,866 Long-term debt - due in more than one year 68,253,550
Net pension liability 70,643,192
Net OPEB liability 2,985,922
Total noncurrent liabilities 145,047,271
Total liabilities 163,189,697

DEFERRED INFLOW OF RESOURCES
Pension related amounts 35,833,175
OPEB related amounts 2,123,592
Total deferred inflow of resources 37,956,767

NET POSITION
Net investment in capital assets 157,503,101
Restricted for:

Capital projects 34,804,425
Debt service 3,290,650
Grant-funded projects 2,987,052
Other Projects 47,218,531
Total restricted 88,300,658
Unrestricted (deficit) (16,191,512)
Total net position $ 229,612,247
See accompanying Notes to Basic Financial Statements
Packet 16Page 56
City of Newark
Statement of Activities
For the year ended June 30, 2022
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 $ 10,182,227 $ 83,709 $ 99,044 $ - $ 182,753 $ (9,999,474) Public safety:

Fire 12,850,599 154,899 - - 154,899 (12,695,700)
Police 17,928,108 1,402,598 272,685 - 1,675,283 (16,252,825) Public works 10,400,939 6,629,527 438,448 6,062,396 13,130,371 2,729,432 Community development 2,794,907 7,610,392 3,366,969 - 10,977,361 8,182,454 Recreation 4,964,791 1,188,542 43,871 386,511 1,618,924 (3,345,867) Interest on long-term debt (unallocated) 2,183,441 - - - - (2,183,441) Total governmental activities $ 61,305,012 $ 17,069,667 $ 4,221,017 $ 6,448,907 $ 27,739,591 (33,565,421) General Revenues:

Taxes:

Property tax 25,833,659
Sales tax 23,679,731
Transient occupancy tax 4,152,881
Utility users tax 3,743,689
Other local taxes 2,751,442
Total taxes 60,161,402
Franchise fees 4,732,051
Intergovernmental—motor vehicle in-lieu, unrestricted 56,444 Use of money and property (investment loss) (5,832)
Miscellaneous 866,142
Total general revenues 65,810,207
Change in net position 32,244,786
Net position - beginning of year, as restated 197,367,461 Net position - end of year $ 229,612,247
Program Revenues
See accompanying Notes to Basic Financial Statements
Packet 17Page 57
City of Newark
Balance Sheet
Governmental Funds
June 30, 2022
American Public Community Traffic
General Rescue Plan Safety Service Impact
Fund Act (ARPA) Impact Fees Impact Fees Fees
ASSETS
Pooled cash and investments $   54,962,211 $   3,045,295 $       634,587 $          496,511 $     11,804,611 Receivables:

Accounts 59,561               ‐  ‐  ‐  ‐
Taxes        5,751,514 ‐ ‐  ‐  ‐
Special assessments ‐  ‐  ‐  ‐  ‐
Intergovernmental              42,824 ‐  ‐  ‐  ‐
Interest           124,398 ‐  ‐  ‐  ‐
Other           413,314 ‐  ‐  ‐  ‐
Due from other funds        4,429,661 ‐ ‐  ‐  ‐
Inventories           145,120 ‐  ‐  ‐  ‐
Restricted assets:

Cash and invesmtnets with fiscal agents ‐  ‐  ‐  ‐  ‐
Total assets $   65,928,603 $   3,045,295 $       634,587 $          496,511 $     11,804,611 LIABILITIES AND FUND BALANCES:

Liabilities:

Accounts payable $     2,904,744 $ ‐ $ ‐ $ ‐ $ ‐
Accrued liabilities        1,077,682 ‐ ‐  ‐  ‐
Deposit payable        1,611,387 ‐ ‐  ‐  ‐
Unearned revenues           181,431      3,045,295 ‐ ‐  ‐ Due to other funds ‐  ‐  ‐  ‐  ‐
Total liabilities        5,775,244       ‐ 3,045,295 ‐  ‐

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue ‐  ‐  ‐  ‐  ‐
Total deferred inflows of resources ‐  ‐  ‐  ‐  ‐
Fund Balances (Deficit):

Non‐spendable           145,120 ‐  ‐  ‐  ‐
Restricted ‐  ‐           634,587              496,511        11,804,611 Committed        7,672,442 ‐ ‐  ‐  ‐
Assigned        6,200,000 ‐ ‐  ‐  ‐
Unassigned (deficit)      46,135,797 ‐ ‐  ‐  ‐
Total fund balances (deficit)      60,153,359 ‐          634,587              496,511        11,804,611 Total liabilities, deferred inflows of
resources, and fund balances (deficit) $   65,928,603 $   3,045,295 $       634,587 $          496,511 $     11,804,611 Special Revenue Funds
See accompanying Notes to Basic Financial Statements
Packet 1818Page 58
Capital Projects Debt Service
Fund Fund
Housing Development Park Public Other Total
Impact Maintenance Impact Measure B Capital Projects Financing Governmental Governmental Fees Fees Fees ACTIA 1986 Fund Authority Funds Funds
$ 42,160,905 $ 4,299,810 $ 5,445,118 $ - $ 7,304,837 $ 62,253 $ 17,446,019 $ 147,662,157 - - - - 66,611 - 15,751 141,923
- - - - - - 5,751,514
- - - - - - 87,080 87,080
- 160,000 - 1,720,592 - - 1,192,824 3,116,240
- - - - - 3,764 - 128,162
- - - - 56,678 - 17,148 487,140
- - - - - - - 4,429,661
- - - - - - - 145,120
-
- - - - - 5,968,191 - 5,968,191
$ 42,160,905 $ 4,459,810 $ 5,445,118 1,720,592$ $ 7,428,126 $ 6,034,208 $ 18,758,822 $ 167,917,188 $ 1,272,396 $ 5,637 $ - $ 167,963 $ - $ - $ 822,428 $ 5,173,168 - - - - - - 444 1,078,126
- - - - 316,144 - 62,331 1,989,862
- - - - - - 765,302 3,992,028
- - - 1,966,406 - 2,410,520 52,735 4,429,661
1,272,396 5,637 - 2,134,369 316,144 2,410,520 1,703,240 16,662,845 - 160,000 - 1,720,592 - - 586,696 2,467,288
- 160,000 - 1,720,592 - - 586,696 2,467,288
- - - - - - - 145,120
40,888,509 4,294,173 5,445,118 - 3,623,688 14,663,296 81,850,493 - - - - - - - 7,672,442
- - - - 7,111,982 - 1,934,550 15,246,532
- - - (2,134,369) - (128,960) 43,872,468
40,888,509 4,294,173 5,445,118 (2,134,369) 7,111,982 3,623,688 16,468,886 148,787,055 $ 42,160,905 $ 4,459,810 $ 5,445,118 1,720,592$ $ 7,428,126 $ 6,034,208 $ 18,758,822 $ 167,917,188 Special Revenue Funds
Packet 19Page 59
Packet Page 60
City of Newark
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
Total Fund Balances - Total Governmental Funds $ 148,787,055 Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet. 225,522,030 Long-term debt and compensated absences that have not been included in the governmental fund activity:

Bonds payable (61,750,000)
Unamortized bond premium/discounts (8,848,550)
Unamortized loss on defeasance 119,167
Compensated absences (2,183,992) (72,663,375)
Net pension liability not included in governmental fund activity (70,643,192) Net OPEB liability not included in governmental fund activity (2,985,922) Deferred outflows related to pension items are not included in the governmental activity 26,213,658 Deferred inflows related to pension items are not included in the governmental activity (35,833,175) Deferred outflows related to OPEB items are not included in the governmental activity 659,587 Deferred inflows related to OPEB items are not included in the governmental activity (2,123,592) Deferred inflows related to unavailable revenue are not included in the governmental activity 2,467,288 Accrued interest payable for the current portion of interest due on bonds has not been reported in governmental funds (333,038)
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 11,072,418 - Other receivables 43,611
- Supplies and other assets 92,248
- Capital assets 3,548,465
- Accounts payable and accrued liabilities (257,900)
- Finance purchase obligation (1,088,011)
- Claims payable (2,865,908) 10,544,923
Net Position of Governmental Activities $ 229,612,247
June 30, 2022
Amounts reported for governmental activities in the Statement of Net Position were different because:

See accompanying Notes to Basic Financial Statements
Packet 21Page 61
City of Newark
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2022
American Public Community Traffic
General Rescue Plan Safety Service Impact Fees
Fund Act (ARPA) Impact Fees Impact Fees Fees
REVENUES:

General property taxes $    25,833,659 $ ‐ $ ‐ $ ‐ $   ‐ Other local taxes       34,327,743 ‐  ‐  ‐   ‐
Special assessments ‐  ‐  ‐  ‐   ‐
Licenses, permits and fees         9,393,730 ‐           630,622               492,351            946,061 Other governmental agencies             447,414      2,833,448 ‐  ‐   ‐ Current service charges         1,227,413 ‐  ‐  ‐   ‐
Fines and forfeitures             605,085 ‐  ‐  ‐   ‐
Use of money and property (investment loss)           (335,719) ‐               3,965 4,160               26,309 Other revenue             184,879 ‐ ‐ ‐   ‐
Total revenues       71,684,204      2,833,448          634,587               496,511            972,370 EXPENDITURES:

Current:

General government       11,678,190 ‐  ‐  ‐   ‐
Public safety:

Fire       12,846,532 ‐  ‐  ‐   ‐
Police       23,549,708 ‐  ‐  ‐   ‐
Community development         1,715,202      1,531,812 ‐  ‐   ‐ Recreation         5,218,855 ‐  ‐  ‐   ‐
Public Works         8,774,572 ‐  ‐  ‐   ‐
Capital outlay ‐  ‐  ‐  ‐   ‐
Debt service:

Principal repayment ‐ ‐  ‐  ‐   ‐
Interest and fiscal charges ‐  ‐ ‐ ‐   ‐
Total expenditures       63,783,059      1,531,812 ‐  ‐   ‐ REVENUES OVER (UNDER) EXPENDITURES         7,901,145      1,301,636          634,587               496,511            972,370 OTHER FINANCING SOURCES (USES):

Transfers in         1,249,399 ‐  ‐  ‐   ‐
Transfers out      (10,454,000)     (1,301,636)     (4,831,845)          (5,700,428) ‐ Total other financing sources (uses)        (9,204,601)     (1,301,636)     (4,831,845)          (5,700,428) ‐ Net change in fund balances       (1,303,456) ‐      (4,197,258)          (5,203,917)            972,370 FUND BALANCES (Deficit):

Beginning of year, as restated       61,456,815 ‐       4,831,845            5,700,428       10,832,241 End of year $    60,153,359 $ ‐ $      634,587 $            496,511 $   11,804,611 Special Revenue Funds
See accompanying Notes to Basic Financial Statements
Packet 2222Page 62
Capital Projects Debt Service
Fund Fund
Housing Development Park Other Total
Impact Maintenance Impact Measure B Capital Projects Public Financing Governmental Governmental Fees Impact Fees Fees ACTIA 1986 Fund Authority Funds Funds $ - $ - $ - $ - $ - $ - $ - $ 25,833,659
- - - - - - - 34,327,743
- - - - - - 639,168 639,168
6,278,542 552,932 1,799,853 - - - 160,785 20,254,876
- - - - - - 4,978,218 8,259,080
- - - - - - - 1,227,413
- - - - - - - 605,085
93,076 9,414 11,880 - - 147,337 33,746 (5,832)
- - 694 - 41,401 - - 226,974
6,371,618 562,346 1,812,427 - 41,401 147,337 5,811,917 91,368,166 - - - - - - - 11,678,190
- - - - - - 7,802 12,854,334
- - - - - - 246,144 23,795,852
18,882 356,156 - - - - 149,835 3,771,887
- - - - - 202,241 5,421,096
- - - - 234,546 - 1,138,345 10,147,463
- 37,593 - 214,247 3,336,349 - 3,647,327 7,235,516
- - - - - 545,000 - 545,000
- - - - - 2,489,870 - 2,489,870
18,882 393,749 - 214,247 3,570,895 3,034,870 5,391,694 77,939,208 6,352,736 168,597 1,812,427 (214,247) (3,529,494) (2,887,533) 420,223 13,428,958 - - - - 21,630,769 - - 22,880,168
- - - - - - (592,259) (22,880,168)
- - - - 21,630,769 - (592,259) -
6,352,736 168,597 1,812,427 (214,247) 18,101,275 (2,887,533) (172,036) 13,428,958 34,535,773 4,125,576 3,632,691 (1,920,122) (10,989,293) 6,511,221 16,640,922 135,358,097 $ 40,888,509 $ 4,294,173 5,445,118$ $ (2,134,369) $ 7,111,982 $ 3,623,688 $ 16,468,886 $ 148,787,055 Special Revenue Funds
Packet 23Page 63
Packet Page 64
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, 2022
Net Change in Fund Balances - Total Governmental Funds $ 13,428,958 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 7,408,779
Depreciation (5,263,248)
Loss on asset deletion (46,531) 2,099,000
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 545,000
Amortization of deferred charges (29,183)
Amortization of bond premium 441,039 956,856
Unavailable revenue accrual which is not recognized in the governmental fund activity. 2,003,896 Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period. (2,857)
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. 223,001 Pension expenses recognized in accordance with GASB68 not recognized in the governmental fund activity. 13,052,501
OPEB expenses recognized in accordance with GASB75 not recognized in the governmental fund activity. 550,975
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. (67,544)
Change in Net Position of Governmental Activities $ 32,244,786 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 65
Packet Page 66
City of Newark
Statement of Net Position
Proprietary Funds
June 30, 2022
Governmental
Activities ‐
Internal
Service Funds
ASSETS
Current assets:

Cash and investments $   11,072,418
Other receivables 43,611
Supplies and other assets 92,248
Total current assets      11,208,277
Noncurrent assets:

Capital assets, net of accumulated depreciation        3,548,465 Total assets      14,756,742

LIABILITIES
Current liabilities:

Accounts payable           233,595
Accrued liabilities 24,305
Financed purchased obligations ‐ due within one year           290,145 Claims payable ‐ due within one year           521,007
Total current liabilities       1,069,052
Noncurrent liabilities:

Financed purchased obligations ‐ due in more than one year 797,866 Claims payable ‐ due in more than one year        2,344,901 Total liabilities        4,211,819

NET POSITION
Net investment in capital assets        2,460,454
Unrestricted        8,084,469
Total net position $   10,544,923
See accompanying Notes to Basic Financial Statements
Packet 27Page 67
City of Newark
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the year ended June 30, 2022
Governmental
Activities ‐
Internal
Service Funds
OPERATING REVENUES:

Charges to departments $          6,655,500
Other revenue 96,620
Total operating revenues             6,752,120
OPERATING EXPENSES:

Personnel services             1,197,515
Materials and supplies                639,625
Contractual services             1,961,879
Utilities                850,621
Insurance claims and premiums             1,541,493
Depreciation                525,961
Total operating expenses             6,717,094
OPERATING INCOME (LOSS) 35,026
NONOPERATING REVENUES (EXPENSES):

Interest expense               (102,570)
Total nonoperating revenues (expenses)               (102,570) Change in net position                 (67,544)
NET POSITION:

Beginning of year           10,612,467
End of year $        10,544,923
See accompanying Notes to Basic Financial Statements
Packet 28Page 68
City of Newark
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2022
Governmental
Activities ‐
Internal
Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from other funds $          6,752,120
Payments to suppliers/other fund            (3,107,968) Payments to employees            (1,197,515)
Claims paid            (1,541,493)
Net cash provided by operating activities                905,144 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITES:

Payments on financed purchased obligations               (246,451) Acquisition of capital assets               (287,072)
Interest paid and fiscal charges               (102,570) Net cash provided by capital and related financing activities              (636,093) Net increase in cash and cash equivalents                269,051 CASH AND CASH  EQUIVALENTS:

Beginning of year           10,803,367
End of year $        11,072,418

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

Operating income $               35,026
Adjustments to reconcile operating income to net
cash provided by operating activities:

Depreciation                525,961
Changes in current assets and liabilities:

Other assets                 (34,467)
Accounts payable and accrued liabilities                378,624 Total adjustments                870,118
Net cash provided by operating activities $             905,144 See accompanying Notes to Basic Financial Statements
Packet 29Page 69
City of Newark
Statement of Fiduciary Net Position
Fiduciary Funds
Custodial
Funds
ASSETS:

Pooled cash and investments $   4,561,252
Restricted cash              2,580
Total additions      4,563,832
LIABILITIES:

Assessment debt payable $   1,857,559
Total liabilities      1,857,559

NET POSITION
Restricted for:

Individuals and other      2,706,273
Total net position $   2,706,273
June 30, 2022
See accompanying Notes to Basic Financial Statements
Packet 30Page 70
City of Newark
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2022
Custodial
Funds
ADDITIONS:

Interest income and fair market adjustments $           2,266 Total additions              2,266
DEDUCTIONS:

Administrative expense $           2,486
Individuals (property tax owners)          949,469
Total deductions          951,955
NET INCREASE (DECREASE) IN FIDUCIARY NET POSITION        (949,689) Net Position ‐ beginning, as restated      3,655,962
Net Position ‐ ending $   2,706,273
See accompanying Notes to Basic Financial Statements
Packet 31Page 71
City of Newark
Notes to Basic Financial Statements
For the year ended June 30, 2022

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 theUnited 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 describedbelow.

A. Reporting Entity
The financialstatements of the City of Newark include the financial activities of the City as well asthe financial activities ofits component unit,theNewark Public FinancingAuthority (Authority),which isthe entity forwhich the City isfinancially accountable. The Authority does notissue a separate financialstatement. 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. Its financial 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 RedemptionDebt 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 theCity. Fiduciary activities of the City are not included in these statements.

These Government‐Wide Financial Statements are presented on an “economic resources” measurement focusand 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.

Packet 32Page 72
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2022
The following interfund activities have been eliminated: Due to/from other funds, advances to/from other funds, transfers in/out, and interfund charges.

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.

American Rescue Plan Act Fund – accounts for State and Local Fiscal Recovery Funds, as part of the American Rescue Plan, to support the response and recovery from the COVID‐19 public health emergency.

Public Safety Impact Fees 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 Impact Fees 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.

Traffic Impact Fees 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 Fees Fund – accounts for fees collected into the City's affordable housing fundthat 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.

Development Maintenance Fees 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 Impact Fees Fund – accounts for fees which provide funding for park land and new improvements.

Packet 33Page 73
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2022
Measure B (1986 ACTIA) – This fund was previously reported under the Measure B (ACTC) Fund but was reclassified as its own fund during fiscal year 2020. This fund previously accounted for amounts receivedby ACTA (Alameda County Transportation Authority) as part of a 1986 sales tax measure passed by the voters of Alameda County to finance varioustransportation improvements.However,themeasure expired in 2002 and the City no longer receives sales tax revenues related to the measure. This fund now accountsfor 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,salestax, 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.

Packet 34Page 74
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2022
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:

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 and includes the City’s custodial funds. Custodial funds account for assets held by the City as an agent for individuals, private organizations andother governments. The City’s custodial funds account for the assets held by the City as an agent for the Area  Improvement District. The financial activities of thisfund are excluded from the Government‐ Wide FinancialStatement but are presented in separate Fiduciary Fund Financial Statements.

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 purchase are stated at amortized cost. Market value is used as fair value for those securities for which market quotations are readily available.

Packet 35Page 75
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2022
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’sinvestments 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 76
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2022
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 77
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2022
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. Compensated absences are liquidated by thefund that has recorded the liability. The long‐term portion of governmental activities compensated absencesisliquidated 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.

Financed purchase obligations reflect lease payments where ownership of the asset being financed reverts to the City at the end of the lease.

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 assets that applies to future periods 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 assetsthat applies to future period(s) and so willnot 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 78
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2022
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 is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets.

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 79
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2022
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 constitutesthe 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
For the year ended June 30, 2022,the City reviewedthe requirements ofGovernmental Accounting Standards Board (GASB) Statement No. 87, Leases.  The statement increases the usefulness of governments’ financial statements by required recognition of certain lease assets and liabilities for leases that previously were classified as operating leases.  After careful review of the requirements, it was determined that the City’s various leases were exempt from this statement due to the combination of short‐term and financing lease‐to‐own contract terms of the City’s leases.

Packet 40Page 80
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2022

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, 2022:

At June 30, 2022, the City’s pooled cash and investments, including restricted funds consisted of the following:

The carrying amount of the City’s cash deposit was $61,512,685 at June 30, 2022. Bank balances and petty cash before reconciling items were $60,532,353 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.

City Treasury:

Deposits:

Cash on hand $6,217
Deposits with banks       61,512,685
Total deposits       61,518,902
Investments:

California Local Agency Investment Fund 65,588,931
California Asset Management Program 36,187,994
Total investments     101,776,925
Total City Treasury     163,295,827
Cash and Investments with Fiscal Agents:

Money market funds         5,970,771
Total Restricted Cash and Investments         5,970,771 Total Cash and Investments $169,266,598
Packet 41Page 81
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2022
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.

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
Commercial Paper 270 days None A‐1
Banker Acceptances 180 days 40% None
Collateralized Certificates of Deposit 5 years 50% None Negotiable Certificates of Deposit 5 years 30% None
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 42 Packet Page 82
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2022
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, 2022:

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 collateralsecuritiesthat are in the possession of an outside party. None of the City’sinvestments 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, 2022, 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, orstated 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 purchasersto 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, 2022, the City had $65,588,931 invested in LAIF, which had invested 1.88% 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 .9871414 to the total investments held by LAIF.

Remaining Maturity
(in Months)
Investment Type Totals 12 Months or Less
LAIF $65,588,931 $65,588,931
CAMP 36,187,994       36,187,994
Money market funds 5,970,771        5,970,771
$107,747,696 $107,747,696
Packet 43Page 83
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2022
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, 2022, were as follows and are described on the following page:

General Capital Project
Transfers Out Fund Fund TOTAL
General Fund $                 ‐ $      10,454,000 $     10,454,000 ARPA         1,249,399     52,237          1,301,636
Public Safety Facilities Impact Fees          ‐           4,831,845          4,831,845 Community Service Facility Fees          ‐           5,700,428          5,700,428 Other Governmental Funds          ‐   592,259              592,259 $     1,249,399 $      21,630,769 $     22,880,168
Transfers In
Packet 44Page 84
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2022
 Transfers from the General Fund to the Capital Projects Fund were to support ongoing project expenditures, namely the New Civic Center Project.
 Transfers from the American Rescue Plan Act (ARPA) Fund were to fund certain positions and fund certain operating budgets which were eliminated or reduced during the pandemic.  Transfers from the Public Safety Facilities and Community Service Facilities Impact Fees funds to the Capital Project Fund were to provide for funding for the New Civic Center Project.  Transfers from the Measure D Fund to the Capital Project Fund were to provide for funding for the New Civic Center Project.
 Transfers from the PEG Fees Fund to the Capital Project Fund were to provide for funding for the New Civic Center Project.

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.

Due to other funds General Fund
Measure B ‐ 1986 ACTIA $1,966,406
Public Financing Authority              2,410,520
Other Governmental Funds 52,735
Total $4,429,661
Due from other funds
Packet 45Page 85
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2022

4. CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2022 was as follows:

Depreciation expense was charged to various governmental functions as follows:

General Government $1,324,959
Public Safety 234,490
Public Works 2,758,491
Community Development 38,135
Recreation and Community Services 907,164
Internal Service Funds 525,961
Total Depreciation $5,789,209
Accumulated Depreciation on Deleted Assets ($232,656)
Balance
June 30, 2021
Additions Deletions Transfers Balance
June 30, 2022
Governmental activities
Nondepreciable assets:

Land 4,384,073 $        ‐ $      $        ‐ $        ‐ $       4,384,073 Park land     30,107,749 ‐        ‐        ‐       30,107,749 Landscaping       8,684,784      122,610 ‐        ‐         8,807,394 Street trees          739,733 ‐        ‐        ‐            739,733 Construction in progress       2,702,652      618,507       (333,583)     2,987,576 Total nondepreciable assets     46,618,991      741,117 ‐              (333,583)   47,026,525 Depreciable assets
Building and land improvements   125,497,578       3,092,337 ‐            36,679      128,626,594 Infrastructure:

Streets     79,017,310       2,386,161 ‐          135,000   81,538,471 Sidewalks, curbs, gutters, and walls     17,377,456      771,888 ‐          161,904   18,311,248 Street lights       3,249,607 ‐        ‐        ‐         3,249,607 Traffic signals       3,936,783 ‐        ‐        ‐         3,936,783 Equipment     15,098,437      759,213    (348,438) ‐       15,509,212 Total depreciable assets   244,177,171       7,009,598    (348,438)   333,583      251,171,914 Building and land improvements     16,478,956       2,401,313 ‐        ‐       18,880,269 Infrastructure:

Streets     25,550,764       2,043,572 ‐        ‐       27,594,336 Sidewalks, curbs, gutters, and walls       5,964,871      441,138 ‐        ‐         6,406,009 Street lights       1,810,897      130,161 ‐        ‐         1,941,058 Traffic signals       3,732,070        54,021 ‐        ‐         3,786,091 Equipment       9,987,302      719,004    (186,125) ‐       10,520,181 63,524,860       5,789,209    (186,125) ‐       69,127,944 Net depreciable assets   180,652,311       1,220,389    (162,313)   333,583      182,043,970 TOTAL ASSETS $ 227,271,302 $   1,961,506 $  (162,313) $            ‐ $ 229,070,495 Packet 46Page 86
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2022

5. LONG‐TERM DEBT
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 requisition 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 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.

Financed Purchased Obligations
On September 28, 2018, the City entered into a non‐cancelable lease agreement in the amount of $585,766 with Motorola Solutions, Inc. to acquire a radio communications system that would provide regional interoperability.

Annual lease payments 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.

The City's long‐term debt is comprised of the following at June 30, 2022:

Governmental Activities:

Balance
June 30, 2021 Adjustments Retirements
Balance
June 30, 2022
Amounts Due
Within One
Year
Direct Borrowings:

Certi ficates of Participation 2019 62,295,000 $    ‐ $      $     (545,000) $    61,750,000 $     2,345,000 $63,345,000; 3‐5% due 2042
2019 COPs Premium    9,289,589 ‐     (441,039)   8,848,550   ‐ Financed purchased obligations:

Equipment lease, due 2024    401,079   (33,952)   (116,965)   250,162    122,295 Equipment lease, due 2024    241,155 ‐      (77,790)   163,366    80,357 Equipment lease, due 2029    759,264   (33,084)    (51,696)   674,484    87,493 Total $   72,986,087 $     (67,036) $   (1,232,490) $    71,686,561 $     2,635,145 Packet 47Page 87
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2022
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, 2022, the remaining balance outstanding on these bonds was $1,857,559.

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, 2022 were as follows:

Principal Interest
Year Ending
June 30,
2023 2,635,145 2,508,572
2024 2,766,168 2,374,473
2025 2,678,182 2,245,594
2026 2,816,164 2,113,363
2027 2,954,241 1,974,285
2028-2032 15,178,111 7,685,492
2033-2037 15,500,000 4,488,000
2038-2042 18,310,000 1,680,300
Total $ 25,070,079 62,838,011 $
Governmental Activities
Packet 48Page 88
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2022

7. DEFINED BENEFIT PENSION PLANS
A. Summary of Pension Plan Balances
Pension related balances presented on the Statement of Net Position as of Measurement Date June 30, 2021 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. All safety 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.

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.

Deferred Deferred Net Deferred
Employer Outflows ‐ Pension Inflows ‐ Pension
Contributions Pension Liability Pension Expense
CALPERS Miscellaneous
Agent‐Multiple Employer Plan 9,282,706 $          $         263,765 $     33,763,767 $      9,625,184 $    1,563,797 CALPERS Safety
Cost‐Sharing Plan         5,493,067   11,174,120    36,879,425   26,207,991     160,708 $       14,775,773 $   11,437,885 $     70,643,192 $   35,833,175 $    1,724,505 Packet 49Page 89
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2022
The Plan’s provisions and benefits in effect as of the June 30, 2021 measurement date are summarized asfollows:

Miscellaneous Classic Miscellaneous PEPRA
Hire Date
Benefit vesting schedule
Benefit payment
Prior to January 1, 2013
5 years of service
Monthly for life
On or after January 1, 2013
5 years of service
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% 6.750%
Required employer contribution rates 11.134% 11.134%
Required UAL payment $3,519,520 $0
Safety Classic Safety PEPRA
Hire Date
Benefit vesting schedule
Benefit payment
Prior to January 1, 2013
5 years of service
Monthly for life
On or after January 1, 2013
5 years of service
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% 13.000%
Required employer contribution rates 23.674% 13.044%
Required UAL payment $4,252,683 $9,214
1Members 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 2021‐22, the City also paid $5 million to CalPERS as an additional discretionary payment to paydown the pension liability for the Miscellaneous Plan.

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

Inactive employees or beneficiaries currently receiving benefits 222 Inactive employees entitled to but not yet receiving benefits 215 Active employees 116
Total 553
Packet 50Page 90
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2022
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, 2021, using an annual actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. A summary of principal 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, 2020 actuarial valuations were determined using the following actuarial assumptions:

Valuation Date June 30, 2020
Measurement Date June 30, 2021
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 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 thistable, please refer to the December 2017 experience study report (based on CalPERS demographic data from 1997 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 Packet 51Page 91
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2022
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% 6.00%
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%
(1) In the System's ACFR, 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.
(2) An expected inflation of 2.0% used for this period. (3) An expected inflation of 2.92% used for this period.

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, 2020 (MD) $     127,329,013 $   80,269,596 $      47,059,417 Service cost             1,901,824 ‐             1,901,824 Interest on the total pension liability             8,849,497 ‐             8,849,497 Differences between actual and
expected experience               (891,445) ‐               (891,445) Contribution ‐ employer     ‐        3,874,896           (3,874,896) Contribution ‐ employee     ‐        1,203,390           (1,203,390) Net investment income     ‐      18,157,424        (18,157,424) Benefit payments, including refunds
of employee contributions           (7,238,583)       (7,238,583) ‐ Administrative expenses     ‐            (80,184)                 80,184 Net changes             2,621,293      15,916,943        (13,295,650) Balance at June 30, 2021 (MD) $     129,950,306 $   96,186,539 $      33,763,767 Increase (Decrease)
Packet 52Page 92
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2022
As of June 30, 2021, the City reported a net pension liability of $36,879,425 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:

Proportion ‐ June 30, 2020 1.0322%
Proportion ‐ June 30, 2021 1.0508%
Change ‐ Increase (Decrease) 0.0186%
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, 2022, the City recognized pension expense of $1,563,797 and $160,708, for the Miscellaneous and Safety plans, respectively. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to the pension plan from the following sources:

Deferred Outflows Deferred Inflows
Miscellaneous Plan of Resources of Resources
Pension contributions subsequent to $              9,282,706 $ ‐ measurement date
Differences between actual and expected experience 263,765                486,243 Net differences between projected and actual
earnings on pension plan investments ‐             9,138,941 Total $              9,546,471 $         9,625,184
Packet 53Page 93
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2022
$9,282,706 and $5,493,067 forthe 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 ofthe net pension liability in the year ending June 30, 2023. Other amounts reported as deferred outflows or resources and deferred inflows of resourcesrelated 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), an agent multiple‐employer defined benefit plan, 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, 2021 actuarial valuation, the following current and former employees were covered by the benefit terms under the Retiree Health Plan:

Fiscal Year Miscellaneous Safety
Ending June 30, Plan Plan Total
2023 $    (2,476,718) $     (2,843,055) $     (5,319,773) 2024       (2,203,861)        (2,659,439)         (4,863,300) 2025       (2,180,394)        (3,490,946)         (5,671,340) 2026       (2,500,446)        (6,040,431)         (8,540,877) TOTAL $    (9,361,419) $   (15,033,871) $   (24,395,290) Deferred Outflow/(Inflows) of Resources
Packet 54Page 94
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2022
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 2020‐2021 the City contributed $606,337, including $218,018 in implicit rate subsidy, $235,674 deposit to CERBT, and $152,645 contribution in the form of a direct benefit payment (not reimbursed by trust). The General Fund has been the source of funding to pay down the OPEB liability.

D. Net OPEB Liability/ Actuarial methods and assumptions:

The City’s net OPEB liability was measured as of June 30, 2021 and the total OPEB Liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2021 using the following actuarial methods and assumptions:

Valuation Date June 30, 2021
Measurement Date June 30, 2021
Actuarial Cost Method Entry‐Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 6.00%
Inflation 2.50%
Contribution Policy Contributesfull ADC
Projected Salary Increases 3.00%
Assumed Wage Inflation 3.00%
Investment Rate of Return 6.95%
Mortality MacLeod Watts Scale 2020
Post Retirement Benefit
Increase MacLeod Watts Scale 2020
Healthcare Cost Trend Rate 4.00% to 5.80%
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.

Inactive employees or beneficiaries currently receiving benefits 84 Inactive employees entitled to but not yet receiving benefits 113 Active Employees 169
Total 366
Packet 55Page 95
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2022
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.

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, 2021:

Current
1% Decrease Discount Rate 1% Increase

5.00%     6.00% 7.00%
Net OPEB Liability $   3,835,524 $ 2,985,922 $ 2,283,083 Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
Balance at June 30, 2020 (MD) $         6,526,094 $     2,771,116 $         3,754,978 Service cost 278,172                 ‐                278,172 Interest on the total OPEB liability                398,066 ‐                398,066 Expected Investment Income           191,171
Contribution ‐ employer     ‐           339,677              (339,677) Investment Experience     ‐           570,778              (570,778) Benefit payments, including refunds
of employee contributions               (339,677)          (339,677) ‐ Changes of assumptions               (355,369) ‐  ‐
Difference between expected
and actual experience 10,652 ‐  ‐
Administrative expenses     ‐               (1,049) 1,049 Net changes (8,156)           760,900              (769,056) Balance at June 30, 2021 (MD) $         6,517,938 $     3,532,016 $         2,985,922 Increase (Decrease)
Packet 56Page 96
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2022
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, 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:

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
J. OPEB Expense and Deferred Outflows/ (Inflows) of Resources Related to OPEB For the fiscal year ended June 30 2022, the City recognized OPEB expense of $55,362. For the fiscal year ended June 30 2022, the City reported deferred outflows of resources related to OPEB from the following sources:

Packet 57Page 97
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2022
The $606,337 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2021 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2023. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:

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, 2022, the City paid PLAN JPA $1,192,473 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, 2022, the City contribution was $963,154. Audited financial statements may be obtained from Bickmore Risk Services, 1831 K Street, Sacramento, CA 95814.

Packet 58Page 98
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2022
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 2021 2020
Liability at beginning of fiscal year 515,573 $      $     1,866,716 $2,382,289 $2,039,226 $     2,228,093 Claims and changes in estimates 208,049      674,423    882,471    691,999    216,036 Claims Payments (600) (398,252)   (398,852)   (348,936)   (404,902) Liability at end of fiscal year   723,021    2,142,887   2,865,908   2,382,289   2,039,227 Current Portion $     75,738 $     445,269 $     521,007 $     716,512 $         806,830 2022
Packet 59Page 99
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2022

10. 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, 2022 is as follows:

General Fund
Impact
Fee
Funds
Measure B ‐
1986 ACTIA
Fund
Capital
Projects
Fund
Public
Financing
Authority
Other
Government
Funds
Total
Nonspendable fund balance:

Supplies and other assets 145,120 $         $       ‐ $       ‐ $      ‐ $         ‐ $        ‐ $        145,120 145,120 ‐     ‐   ‐     ‐   ‐         145,120
Restricted fund balance for:

Public safety      ‐    634,587 ‐   ‐     ‐       1,488,641      2,123,228 Community service facilities      ‐    496,511 ‐   ‐     ‐   ‐         496,511 Transportation facilities      ‐      11,804,611 ‐   ‐     ‐   ‐       11,804,611 Housing impact      ‐      40,888,509 ‐   ‐     ‐   ‐       40,888,509 Community development      ‐    4,294,173 ‐   ‐     ‐     63,985      4,358,158 Park improvement      ‐     5,445,118 ‐   ‐     ‐   ‐         5,445,118 Highway and streets      ‐ ‐     ‐   ‐     ‐       9,843,539      9,843,539 Recycling programs      ‐ ‐     ‐   ‐     ‐       687,042      687,042 Health and welfare      ‐ ‐     ‐   ‐     ‐     25,135     25,135 PEG activities   ‐ ‐     ‐       ‐ ‐       649,368      649,368 Debt reserves      ‐ ‐     ‐   ‐        3,623,688 ‐         3,623,688 Landscape and lighting      ‐ ‐     ‐   ‐         1,905,586      1,905,586 ‐      63,563,509 ‐   ‐        3,623,688      14,663,296    81,850,493 Committed fund balance for:

Pension/OPEB Reserves   7,672,442 ‐     ‐   ‐     ‐   ‐         7,672,442 7,672,442 ‐     ‐   ‐     ‐   ‐         7,672,442
Assigned fund balance for:

Equipment replacement   6,200,000 ‐     ‐   ‐     ‐   ‐         6,200,000 Waste disposal program      ‐ ‐     ‐       ‐ ‐     18,638     18,638 Art in public places      ‐ ‐     ‐   ‐     ‐       1,915,912      1,915,912 Capital assets acquisition      ‐ ‐     ‐        7,111,982 ‐   ‐         7,111,982 6,200,000 ‐     ‐        7,111,982 ‐       1,934,550    15,246,532 Unassigned fund balance
Emergency reserves    11,430,299 ‐     ‐   ‐     ‐   ‐       11,430,299 Fiscal uncertainty    10,725,024 ‐     ‐   ‐     ‐   ‐       10,725,024 Measure GG    14,024,535 ‐     ‐   ‐     ‐   ‐       14,024,535 Unallocated (deficit)   9,955,939 ‐         (2,134,369) ‐     ‐      (128,960)      7,692,610 46,135,797 ‐         (2,134,369) ‐     ‐      (128,960)    43,872,468 Total Fund Balances $  60,153,359 $  63,563,509 $   (2,134,369) $  7,111,982 $  3,623,688 $  16,468,886 $   148,787,055 Packet Page 60 100
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2022

11. 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, 2022.

12. DEFICIT FUND BALANCE
The Community Development Act and Miscellaneous State Grants Non‐Major funds of the City reported a deficit fund balance/net position of $118,963 and $9,997, respectively, due to revenue which was reflected as Unavailable Revenue because of the timing of payment receipt.

13. RESTATEMENTS OF NET POSITION AND FUND BALANCE
State Capital
General Senate Bill Project PEG
Fund  Funds Fund Fees
FY21 Fund Balances, as previously reported 60,632,572 $ $      901,102 $  (10,991,048) $      942,223 Reclassification of fees incorrectly reported
from the ERP data conversion     824,243     (837,488) ‐    ‐ PEG Fees late entry not included in FY21   ‐ ‐        1,755    (1,755) FY21 Fund Balances, restated $61,456,815 $        63,614 $  (10,989,293) $      940,468 Packet Page 61 101
Packet Page 102

REQUIRED SUPPLEMENTARY INFORMATION
Packet Page 103
Original Final Actual
Variance with
Final Budget

REVENUES
General property taxes $ 22,962,000 $ 26,250,000 $ 25,833,659 $ (416,341) Other local taxes 19,434,000 30,186,000 34,327,743 4,141,743 Licenses permits and fees 9,015,000 8,370,000 9,393,730 1,023,730 Intergovernmental 185,000 185,000 447,414 262,414
Charges for services 2,629,000 1,224,000 1,227,413 3,413 Fines and forefeitures 875,000 638,000 605,085 (32,915) Use of money and property (investment loss) 1,459,000 1,329,000 (335,719) (1,664,719) Other revenue 120,000 120,000 184,879 64,879
Total revenues 56,679,000 68,302,000 71,684,204 3,382,204

EXPENDITURES
Current:

General government 6,074,000 12,616,000 11,678,190 937,810 Public safety:

Fire 12,274,000 12,844,000 12,846,532 (2,532)
Police 24,935,000 25,024,000 23,549,708 1,474,292
Community development 1,981,000 2,687,200 1,715,202 971,998 Recreation 5,548,000 5,883,723 5,218,855 664,868
Public works 8,974,000 10,218,000 8,774,572 1,443,428
Capital outlay 14,000 14,000 - 14,000
Total expenditures 59,800,000 69,286,923 63,783,059 5,503,865 Revenues over (under) expenditures (3,121,000) (984,923) 7,901,145 8,886,069

OTHER FINANCING SOURCES (USES)
Transfers in - - 1,249,399 1,249,399
Transfers out (4,204,000) (28,730,000) (10,454,000) 18,276,000 Total other financing sources (uses) (4,204,000) (28,730,000) (9,204,601) 19,525,399 Net change in fund balances (7,325,000) (29,714,923) (1,303,456) 28,411,468 Fund balances - beginning, as restated 61,456,815 61,456,815 61,456,815 - Fund balances - ending $ 54,131,815 $ 31,741,892 $ 60,153,359 $ 28,411,468 Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund
For the Year Ended June 30, 2022
Packet Page 64 104
Original Final Actual
Variance with
Final Budget

REVENUES
Intergovernmental $ - $ 5,900,000 $ 2,833,448 $ (3,066,552) Total revenues - 5,900,000 2,833,448 (3,066,552)

EXPENDITURES
Current:

Community development - 1,560,000 1,531,812 28,188
Total expenditures - 1,560,000 1,531,812 28,188
Revenues over (under) expenditures - 4,340,000 1,301,636 (3,038,364)

OTHER FINANCING SOURCES (USES)
Transfers out - (5,900,000) (1,301,636) 4,598,364
Total other financing sources (uses) - (5,900,000) (1,301,636) 4,598,364 Net change in fund balances - (1,560,000) - 1,560,000
Fund balances - beginning - - - -
Fund balances - ending $ - $ (1,560,000) $ - $ 1,560,000 Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual ARPA
For the Year Ended June 30, 2022
Packet Page 65 105
Original Final Actual
Variance with
Final Budget

REVENUES
Licenses permits and fees $ - $ - $ 630,622 $ 630,622
Use of money and property - - 3,965 3,965
Total revenues - - 634,587 634,587
Revenues over (under) expenditures - - 634,587 634,587

OTHER FINANCING SOURCES (USES)
Transfers out - (4,831,845) (4,831,845) -
Total other financing sources (uses) - (4,831,845) (4,831,845) - Net change in fund balances - (4,831,845) (4,197,258) 634,587 Fund balances - beginning - 4,831,845 4,831,845 -
Fund balances - ending $ - $ - $ 634,587 $ 634,587
Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Public Safety Impact Fees
For the Year Ended June 30, 2022
Packet Page 66 106
Original Final Actual
Variance with
Final Budget

REVENUES
Licenses permits and fees $ - $ - $ 492,351 $ 492,351
Use of money and property - - 4,160 4,160
Total revenues - - 496,511 496,511
Revenues over (under) expenditures - - 496,511 496,511

OTHER FINANCING SOURCES (USES)
Transfers out - (5,700,428) (5,700,428) -
Total other financing sources (uses) - (5,700,428) (5,700,428) - Net change in fund balances - (5,700,428) (5,203,917) 496,511 Fund balances - beginning - 5,700,428 5,700,428 -
Fund balances - ending $ - $ - $ 496,511 $ 496,511
Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Community Service Impact Fees
For the Year Ended June 30, 2022
Packet Page 67 107
Original Final Actual
Variance with
Final Budget

REVENUES
Licenses permits and fees $ 563,000 $ 563,000 $ 552,932 $ (10,068) Use of money and property - - 9,414 9,414
Total revenues 563,000 563,000 562,346 (654)

EXPENDITURES
Current:

Community development 430,000 899,374 356,156 543,218
Capital outlay - - 37,593 (37,593)
Total expenditures 430,000 899,374 393,749 505,625
Revenues over (under) expenditures 133,000 (336,374) 168,597 504,971 Net change in fund balances 133,000 (336,374) 168,597 504,971 Fund balances - beginning 4,125,576 4,125,576 4,125,576 - Fund balances - ending $ 4,258,576 $ 3,789,202 $ 4,294,173 $ 504,971 Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Development Maintenance Impact Fees
For the Year Ended June 30, 2022
Packet Page 68 108
Original Final Actual
Variance with
Final Budget
Revenues
Licenses permits and fees $ 2,000,000 $ 2,000,000 $ 1,799,853 $ (200,147) Use of money and property - - 11,880 11,880
Revenue - Other revenue - 110,000 694 (109,306)
Total revenues 2,000,000 2,110,000 1,812,427 (297,573)
Revenues over (under) expenditures 2,000,000 2,110,000 1,812,427 (297,573) Net change in fund balances 2,000,000 2,110,000 1,812,427 (297,573) Fund balances - beginning 3,632,691 3,632,691 3,632,691 - Fund balances - ending $ 5,632,691 $ 5,742,691 $ 5,445,118 $ (297,573) Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Park Impact Fees
For the Year Ended June 30, 2022
Packet Page 69 109
Original Final Actual
Variance with
Final Budget
Expenditures
Current:

Capital outlay - 860,595 214,247 646,348
Total expenditures - 860,595 214,247 646,348
Revenues over (under) expenditures - 860,595 214,247 646,348 Net change in fund balances - (860,595) (214,247) 646,348 Fund balances - beginning (1,920,122) (1,920,122) (1,920,122) - Fund balances - ending $ (1,920,122) $ (2,780,717) $ (2,134,369) $ 646,348 Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Measure B - 1986 ACTIA
For the Year Ended June 30, 2022
Packet Page 70 110

CITY OF NEWARK

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

BUDGETARY ACCOUNTING AND CONTROL
JUNE 30, 2022
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, 2022, the following funds had no adopted annual budgets:

Traffic Impact Fees Fund
Housing Impact Fee Fund
Waste Augmentation Fund
Recycle AB939
b. Expenditures over Appropriations
The following Funds had expenditures over appropriations for the fiscal year ended June 30, 2022:

Fund Budget Actual Excess
General Fund, Public Safety (Fire) $    12,844,000 $   12,846,532 $       2,532 Development Maintenance Fees (Capital Outlay)                     ‐              37,593        37,593 Measure B, 1986 (Capital Outlay)                     ‐            214,427      214,427 Packet Page 71 111
City of Newark
Miscellaneous Plan ‐ Agent Multiple‐Employer
Schedule of Changes in Net Pension Liability and Related Ratios As of June 30, for the Last Ten Fiscal Years (1)
2015 2016 2017 2018 2019 2020 2021 2022
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 $ 1,901,824 Interest 6,903,386 7,153,135 7,430,465 7,606,416 7,893,622 8,282,270 8,658,150 8,849,497 Difference between Expected and Actual Experience ‐ (336,919) (296,888) 98,578 1,112,052 1,745,541 1,582,587 (891,445) 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) (7,238,583) 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 2,621,293 Total Pension Liability ‐ Beginning 93,660,996 97,332,688 98,844,959 102,165,763 112,068,003 116,276,054 121,932,587 127,329,013 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 $ 129,950,306 Plan Fiduciary 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 3,874,896 Contributions ‐ Employee 1,133,861 980,547 1,026,537 1,148,693 1,232,724 1,208,146 1,219,082 1,203,390 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 18,157,424 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) (7,238,583) Administrative Expense ‐ (76,731) (41,512) (97,779) (111,206) (53,848) (110,635) (80,184) 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 15,916,943 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 80,269,596 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 $ 96,186,539 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 $ 33,763,767 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% 74.02%Covered Payroll $ 8,387,860 $ 8,555,244 $ 8,944,772 $ 9,900,873 $ 10,929,418 $ 11,040,727 $ 10,850,808 $ 11,804,200 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% 286.03% (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:

In 2020 and 2019, 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 2018. 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, amount reported were based on the 7.5 percent discount rate.

Packet Page
72 112
City of Newark
Miscellaneous Plan - Agent Multiple-Employer
Schedule of Plan Contributions
As of June 30, for the Last Ten Fiscal Years (1)
2015 2016 2017 2018 2019 2020 2021 2022
Actuarially Determined Contribution 1,773,777$ 2,089,006$ 2,252,317$ 2,937,068$ 3,231,257$ 3,532,994$ $ 3,873,663 $ 4,282,706 Contribution in Relation to the Actuarially Determined Contribution (1,773,777) (2,089,006) (2,252,317) (2,937,068) (3,231,257) (3,532,994) (3,873,663) (9,282,706) Contribution Deficiency (Excess) - - - - - - - (5,000,000) Covered Payroll 8,555,244 8,944,772 9,900,873 10,929,418 11,040,727 10,850,808 10,664,818 11,804,200 Contributions as a Percentage of Covered Payroll 20.73% 23.35% 22.75% 26.87% 29.27% 32.56% 36.32% 36.28% (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.

Packet Page 73 113
City of Newark
Cost‐Sharing Multiple Employer Safety Plan
Schedule of Proportionate Share of the Net Pension LiabilityAs of June 30, for the Last Ten Fiscal Years (1) 2015 2016 2017 2018 2019 2020 2021 2022
Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 Proportion of the Net Pension Liability* 0.64192% 0.66006% 0.62991% 0.61737% 0.64142% 0.63196% 0.63207% 0.68191% 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 $ 36,879,425 Covered Payroll $ 6,720,767 $ 7,186,807 $ 7,171,629 $ 7,362,907 $ 7,381,368 $ 9,025,651 7,417,018 7,777,066 Proportionate Share of the Net Pension Liability
as a Percentage of Covered Payroll 594.3% 630.4% 760.0% 831.5% 837.4% 717.5% 927.2% 474.2%Plan Fiduciary Net Position as a Percentage of theTotal Pension Liability 74.57% 78.40% 74.06% 65.64% 66.76% 66.82% 66.03% 82.29% * 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 years for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only seven years are shown.Notes to Schedules:

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, 2018 valuation date. This applies for voluntary benefit changes as well as any offers of the Two Years Additional Service Credit (a.k.a. Golden Handshakes).Changes of Assumptions:

In 2019, there were no changes. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of the Actuarial Assumptions December 2017. There were not changes in the discount rate in 2018. In 2017, the accounting discount rate reduced from 7.65 percent (net of administrative expense) to 7.65 (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.

Packet Page
74 114
City of Newark
Cost‐Sharing Multiple Employer Safety Plan
Schedule of Plan Contributions
As of June 30, for the Last Ten Fiscal Years (1)
2015 2016 2017 2018 2019 2020 2021 2022
Actuarially Determined Contribution $ 2,526,932 $ 3,262,170 $ 3,595,377 $ 4,766,942 $ 5,046,191 $ 5,386,172 $ 5,836,100 $ 5,493,067 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) (5,493,067) 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 7,740,113 Contributions as a Percentage of Covered Payroll 35.2% 45.5% 48.8% 64.6% 55.9% 72.6% 75.0% 71.0% (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.

Packet Page
75 115
City of Newark
Schedule of Changes in the Net OPEB Liability and Related Ratios As of June 30, for the Last Ten Fiscal Years (1)
2018 2019 2020 2021 2022
Total OPEB Liability
Service cost $           357,973 $           339,211 $           310,710 $           270,070 $           278,172 Interest on the total OPEB liability               345,706               387,888               463,155               378,535               398,066 Actual and expected experience difference                       ‐                       ‐          (1,516,027)                       ‐                 10,652 Changes in assumptions             (232,385)               103,950             (555,472)                       ‐             (355,369) Benefit payments             (205,783)             (223,221)             (353,760)             (322,724)             (339,677) Net change in total OPEB liability              265,511              607,828          (1,651,394)              325,881                  (8,156) Total OPEB liability ‐ beginning           6,978,268           7,243,779           7,851,607           6,200,213           6,526,094 Total OPEB liability ‐ ending (a)           7,243,779           7,851,607           6,200,213           6,526,094           6,517,938 Plan Fiduciary Net Position
Contribution ‐ employer               315,000               354,000               576,617               697,381               339,677 Net investment income               161,324               126,130               130,911                 91,520               761,949 Benefit payments             (205,783)             (223,221)             (353,760)             (322,724)             (339,677) Administrative expense                     (845)                  (1,002)                     (472)                  (1,296)                  (1,049) Investment experience                       ‐                 23,308                       ‐                       ‐                       ‐ Other expenses                       ‐                  (2,218)                       ‐                       ‐                       ‐ Net change in plan fiduciary net position              269,696              276,997              353,296              464,881              760,900 Plan fiduciary net position ‐ beginning           1,406,246           1,675,942          1,952,939           2,306,235           2,771,116 Plan fiduciary net position ‐ ending (b)           1,675,942           1,952,939           2,306,235           2,771,116           3,532,016 Net OPEB Liability ‐ ending (a) ‐ (b) $        5,567,837 $        5,898,668 $        3,893,978 $        3,754,978 $        2,985,922 Plan fiduciary net position as a percentage of the total OPEB liability 23.14% 24.87% 37.20% 42.46% 54.19% Covered‐employee payroll         15,780,296         17,438,452         20,956,996         18,991,910         18,685,140 Net OPEB liability as a percentage of covered‐employee payroll 35.28% 33.83% 18.58% 19.77% 15.98% (1) Historical information is required only for the measurement periods 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: In 2021, no changes were made.  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 76 116
City of Newark
Schedule of OPEB Contributions
As of June 30, for the Last Ten Fiscal Years (1)
2018 2019 2020 2021 2022
Actuarially Determined Contribution $        537,000 $        572,265 $        588,500 $        476,313 $        490,602 Contribution in Relation to the Actuarially Determined Contributions (354,000)                    (576,617)          (697,381)          (339,677)          (606,337) Contribution Deficiency (Excess) $        183,000 $           (4,352) $      (108,881) $        136,636 $      (115,735) Covered‐employee payroll $  17,438,452 $  20,856,996 $  18,991,910 $  18,685,140 $  19,245,694 Contributions as a percentage of covered‐employee payroll 2.03% 2.76% 3.67% 1.82% 3.15% (1) Historical information is required only for the measurement periods 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 CalPERS 2014
Packet Page 77 117
Packet Page 118

SUPPLEMENTARY INFORMATION
Packet Page 119

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.

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 waste hauler surcharge fees to be used for offsetting recycling and transfer station payments
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.

Gas Tax Funds – Accounts for gas tax funds received from the State to be used for various street construction and maintenance projects.

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.

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).

Packet Page 80 120
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.

Miscellaneous State Grants – Accounts for State 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 81 121
City of Newark
Combining Balance Sheet
Non‐Major Governmental Funds
June 30, 2022
Alameda Community
Paramedic County Police Development
Tax Fire Fees Grants Act (HCD)
ASSETS
Pooled cash and investments $      1,186,664 $            54,385 $          243,287 $                    ‐ Receivables:

Accounts                          ‐                          ‐                          ‐                       ‐ Intergovernmental                          ‐                          ‐                 6,181          149,835 Special assessments                          ‐                          ‐                          ‐                       ‐ Other ‐                                                    ‐                     400                       ‐ Total assets $      1,186,664 $            54,385 $          249,868 $       149,835

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable ‐ $                        $                       ‐ $              1,832 $         66,228 Accrued liabilities                          ‐                          ‐                     444                       ‐ Unearned revenues                          ‐                          ‐                          ‐                       ‐ Refundable deposits                          ‐                          ‐                          ‐                       ‐ Due to other funds                          ‐                          ‐                          ‐            52,735 Total liabilities                          ‐                          ‐                 2,276          118,963

DEFERRED INFLOW OR RESOURCES
Unavailable revenue                          ‐                          ‐                          ‐          149,835 Total deferred inflow or resources                          ‐                          ‐                          ‐          149,835 Fund Balances (Deficit):

Restricted          1,186,664               54,385             247,592                       ‐ Assigned                          ‐                          ‐                          ‐                       ‐ Unassigned (deficit)                          ‐                          ‐                          ‐         (118,963) Total fund balances (deficit)         1,186,664               54,385             247,592        (118,963) Total liabilities and fund balances (deficits) $      1,186,664 $            54,385 $          249,868 $       149,835 Special Revenue Funds
Packet Page 82 122
Measure F
Waste Recycle Measure D ‐  Gas Tax Measure B ‐  Measure BB (VRF) RMRA Augmentation AB939 Waste Mgmt Funds ACTC ACTC ACTC SB1
$         18,638 $         57,164 $      624,439 $    2,914,022 $     1,920,244 $     1,529,757 $       204,651 $     2,481,970 ‐                       ‐                      ‐                       ‐                         ‐                         ‐                       ‐                        ‐ ‐                       ‐           67,253            87,623              11,997            474,992            35,410           165,001 ‐                       ‐                      ‐                       ‐                         ‐                         ‐                       ‐                        ‐ ‐                       ‐                      ‐                       ‐                         ‐                         ‐                       ‐                        ‐ $         18,638 $         57,164 $      691,692 $   3,001,645 $    1,932,241 $     2,004,749 $       240,061 $     2,646,971

$                    ‐ $                    ‐ $        28,260 $       143,222 $        309,346 $           53,140 $                    ‐ $                     ‐ ‐                       ‐                      ‐                       ‐                         ‐                         ‐                       ‐                        ‐ ‐                       ‐                      ‐                       ‐                         ‐                         ‐                       ‐                        ‐ ‐                       ‐                      ‐                       ‐                         ‐                         ‐                       ‐                        ‐ ‐                       ‐                      ‐                       ‐                         ‐                         ‐                       ‐                        ‐ ‐                       ‐           28,260          143,222            309,346              53,140                       ‐                        ‐ ‐                       ‐           33,554                       ‐                6,319            202,456                       ‐                        ‐ ‐                       ‐           33,554                       ‐                6,319            202,456                       ‐                        ‐ ‐            57,164         629,878       2,858,423        1,616,576        1,749,153          240,061        2,646,971 18,638                       ‐                      ‐                       ‐                         ‐                         ‐                       ‐                        ‐ ‐                       ‐                      ‐                       ‐                         ‐                         ‐                       ‐                        ‐ 18,638            57,164         629,878       2,858,423        1,616,576        1,749,153          240,061        2,646,971 $         18,638 $         57,164 $      691,692 $    3,001,645 $     1,932,241 $     2,004,749 $       240,061 $     2,646,971 Special Revenue Funds
Packet Page 83 123
City of Newark
Combining Balance Sheet
Non‐Major Governmental Funds, Continued
June 30, 2022
Hazardous State Auto Break‐in State
Materials Senate Bills Prevention Construction
Program Fund AB74 Maintenance
ASSETS
Pooled cash and investments $            32,193 $          126,641 $          688,358 $          932,369 Receivables:

Accounts                          ‐                          ‐                          ‐                          ‐ Intergovernmental                          ‐                          ‐                          ‐             184,535 Special assessments                          ‐                          ‐                          ‐                          ‐ ‐                          ‐                          ‐                          ‐ Total assets $            32,193 $          126,641 $          688,358 $      1,116,904

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable ‐ $                        $            13,094 $                       ‐ $          187,245 Accrued liabilities                          ‐                          ‐                          ‐                          ‐ Unearned revenues                 7,058                          ‐             688,358                          ‐ Refundable deposits                          ‐               49,562                          ‐               12,769 Due to other funds                          ‐ ‐                                               ‐                          ‐ Total liabilities                 7,058               62,656             688,358             200,014

DEFERRED INFLOW OR RESOURCES
Unavailable revenue                          ‐                          ‐                          ‐             184,535 Total deferred inflow or resources                          ‐                          ‐                          ‐             184,535 Fund Balances:

Restricted               25,135               63,985                          ‐             732,355 Assigned                          ‐                          ‐                          ‐                          ‐ Unassigned                          ‐                          ‐                          ‐                          ‐ Total fund balances               25,135               63,985                          ‐             732,355 Total liabilities and fund balances $            32,193 $          126,641 $          688,358 $      1,116,904 Special Revenue Funds
Packet Page 84 124
Total
Other
Misc. Landscape Non‐Major
PEG Art in  Public State and Lighting Governmental
Fees Places Grants District Funds
$          632,620 $      1,915,912 $            65,041 $      1,817,664 $         17,446,019 ‐                          ‐               15,751                    15,751 ‐                          ‐                 9,997                          ‐               1,192,824 ‐                          ‐                          ‐               87,080                    87,080 16,748                          ‐                          ‐                          ‐                    17,148 $          649,368 $      1,915,912 $            75,038 $      1,920,495 $         18,758,822 $                       ‐ $                       ‐ $              5,152 $            14,909 $               822,428 ‐                          ‐                          ‐                          ‐                          444 ‐                          ‐               69,886                          ‐                 765,302 ‐                          ‐                          ‐                          ‐                    62,331 ‐                          ‐                          ‐                          ‐                    52,735 ‐                          ‐               75,038               14,909               1,703,240 ‐                          ‐                 9,997                          ‐                  586,696 ‐                          ‐                 9,997                          ‐                  586,696 649,368                          ‐                          ‐          1,905,586            14,663,296 ‐          1,915,912                          ‐                          ‐               1,934,550 ‐                          ‐                (9,997)                          ‐                 (128,960) 649,368          1,915,912                (9,997)          1,905,586            16,468,886 $          649,368 $      1,915,912 $            75,038 $      1,920,495 $         18,758,822 Capital Projects Funds
Packet Page 85 125
City of Newark
Combined Statement of Revenues, Expenditures and Changes in Fund Balances Non‐Major Governmental Funds
For the year ended June 30, 2022
Alameda Community
Paramedic County Police Development
Tax Fire Fees Grants Act (HCD)
REVENUES:

Special assessments $         258,509 $                       ‐ $                       ‐ $                       ‐ Other governmental agencies                           ‐                           ‐             224,151             223,686 Use of money and property                           ‐                           ‐                    323                           ‐ License, permits and fees                           ‐                           ‐               22,800                           ‐ Total revenues             258,509                           ‐             247,274             223,686 EXPENDITURES:

Current:

Public safety:

Fire                 4,302                 3,500                           ‐                           ‐ Police                           ‐                           ‐             230,395                           ‐ Public works                           ‐                           ‐                           ‐                           ‐ Community development                           ‐                         ‐                           ‐            149,835 Recreation                         ‐                           ‐                           ‐                           ‐ Capital outlay                           ‐                           ‐                           ‐             231,300 Total expenditures                 4,302                 3,500             230,395             381,135

REVENUE OVER
(UNDER) EXPENDITURES             254,207                (3,500)               16,879           (157,449) OTHER FINANCING USES:

Transfers out                           ‐                           ‐                           ‐                           ‐ Total other financing uses                           ‐                           ‐                           ‐                           ‐ Net change in fund balances             254,207                (3,500)               16,879           (157,449) FUND BALANCES (Deficit):

Beginning of year, restated             932,457               57,885            230,713               38,486 End of year $      1,186,664 $            54,385 $         247,592 $        (118,963) Special Revenue Funds
Packet Page 86 126
Waste Measure F
Augmentation Recycle Measure D ‐  Gas Tax Measure B ‐  Measure BB ‐  (VRF) RMRA Fund AB 939 Waste Mgmt Funds ACTC ACTC ACTC SB1
$                    ‐ $                    ‐ $                    ‐ $                    ‐ $                    ‐ $                    ‐ $                    ‐ $                    ‐ ‐                        ‐          179,627       1,142,847          968,987       1,039,414          207,179          976,578 ‐                        ‐              1,595              6,446              4,193              3,245                 412              5,368 ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐ ‐                        ‐          181,222       1,149,293          973,180       1,042,659          207,591          981,946 ‐                        ‐                        ‐                        ‐                        ‐                        ‐                       ‐                        ‐ ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐ ‐                        ‐            65,904          823,217              2,499            42,221                        ‐                        ‐ ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐                        ‐ ‐                        ‐                        ‐                        ‐          195,241              7,000                        ‐                        ‐ ‐                        ‐                        ‐          491,814          612,416          955,697          300,000          871,600 ‐                        ‐            65,904       1,315,031          810,156       1,004,918          300,000          871,600 ‐                        ‐          115,318        (165,738)          163,024            37,741           (92,409)          110,346 ‐                        ‐        (226,372)                        ‐                        ‐                        ‐                        ‐                        ‐ ‐                        ‐        (226,372)                       ‐                        ‐                        ‐                        ‐                        ‐ ‐                        ‐        (111,054)        (165,738)          163,024            37,741           (92,409)          110,346 18,638            57,164          740,932       3,024,161       1,453,552       1,711,412          332,470       2,536,625 $         18,638 $         57,164 $       629,878 $   2,858,423 $   1,616,576 $   1,749,153 $       240,061 $   2,646,971 Special Revenue Funds
Packet Page 87 127
City of Newark
Combined Statement of Revenues, Expenditures and Changes in Fund Balances Non‐Major Governmental Funds
For the year ended June 30, 2022
Hazardous State Auto Break‐in State
Materials Senate Bills Prevention Construction
Program Fund AB74 Maintenance
REVENUES:

Special assessments $                       ‐ $                       ‐ $                       ‐ $                       ‐ Other governmental agencies                           ‐                           ‐               15,749                           ‐ Use of money and property                      68                           ‐                           ‐                 2,097 License, permits and fees                           ‐                 2,168                           ‐                           ‐ Total revenues                      68                 2,168               15,749                 2,097 EXPENDITURES:

Current:

Public safety:

Fire ‐                                                      ‐                           ‐ Police                           ‐                           ‐               15,749                           ‐ Public works                           ‐                 1,797                           ‐                           ‐ Community development                         ‐                           ‐                         ‐ Recreation                         ‐                           ‐                           ‐                           ‐ Capital outlay                           ‐                           ‐                           ‐             184,500 Total expenditures                           ‐                 1,797               15,749             184,500

REVENUE OVER
(UNDER) EXPENDITURES                      68                    371                           ‐           (182,403)

OTHER FINANCING
Transfers out                           ‐                           ‐                           ‐                           ‐ Total other financing uses                           ‐                           ‐                           ‐                           ‐ Net change in fund balances                      68                    371                           ‐           (182,403) FUND BALANCES:

Beginning of year, restated               25,067               63,614                           ‐             914,758 End of year $           25,135 $            63,985 $                       ‐ $         732,355 Special Revenue Funds
Packet Page 88 128
Total
Other
Misc. Landscape Non‐Major
PEG Art in State and Lighting Governmental
Fees Public Places Grants District Funds
$                       ‐ $                    ‐ $                    ‐ $       380,659 $            639,168 ‐                        ‐                        ‐                        ‐            4,978,218 1,605              4,293                        ‐              4,101                 33,746 73,182            62,635                        ‐                        ‐               160,785 74,787            66,928                        ‐          384,760            5,811,917 ‐                        ‐                        ‐                        ‐                    7,802 ‐                        ‐                        ‐                        ‐               246,144 ‐                        ‐              9,997          192,710            1,138,345 ‐                        ‐                        ‐                        ‐               149,835 ‐                        ‐                        ‐                        ‐               202,241 ‐                        ‐                        ‐                        ‐            3,647,327 ‐                        ‐              9,997          192,710            5,391,694 74,787            66,928             (9,997)          192,050               420,223 (365,887)                        ‐                        ‐                        ‐              (592,259) (365,887)                        ‐                        ‐                        ‐              (592,259) (291,100)            66,928             (9,997)          192,050              (172,036) 940,468       1,848,984                        ‐       1,713,536          16,640,922 $         649,368 $   1,915,912 $          (9,997) $   1,905,586 $       16,468,886 Capital Projects Funds
Packet Page 89 129
Original Final Actual
Variance with
Final Budget

REVENUES
Special assessments $ 233,000 $ 233,000 $ 258,509 $ 25,509 Total revenues 233,000 233,000 258,509 25,509

EXPENDITURES
Current:

Public Safety - Fire - - 4,302 (4,302)
Total expenditures - - 4,302 (4,302)
Revenues over (under) expenditures 233,000 233,000 254,207 21,207 Net change in fund balances 233,000 233,000 254,207 21,207 Fund balances - beginning 932,457 932,457 932,457 -
Fund balances - ending $ 1,165,457 $ 1,165,457 $ 1,186,664 $ 21,207 Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Paramedic Tax
For the Year Ended June 30, 2022
Packet Page 90 130
Original Final Actual
Variance with
Final Budget

EXPENDITURES
Current:

Public Safety - Fire $ - $ 4,000 $ 3,500 $ 500
Total expenditures - 4,000 3,500 500
Revenues over (under) expenditures - 4,000 3,500 500
Net change in fund balances - (4,000) (3,500) 500
Fund balances - beginning - 57,885 57,885 -
Fund balances - ending $ - $ 53,885 $ 54,385 $ 500
Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Alameda County EMS Grant (FRALS)
For the Year Ended June 30, 2022
Packet Page 91 131
Original Final Actual
Variance with
Final Budget

REVENUES
Licenses permits and fees $ - $ - $ 22,800 $ 22,800
Intergovernmental 100,000 170,000 224,151 54,151
Use of money and property - - 323 323
Total revenues 100,000 170,000 247,274 77,274

EXPENDITURES
Current:

Public safety - Police 35,000 164,000 230,395 (66,395)
Total expenditures 35,000 164,000 230,395 (66,395)
Revenues over (under) expenditures 65,000 6,000 16,879 10,879 Net change in fund balances 65,000 6,000 16,879 10,879
Fund balances - beginning 230,713 230,713 230,713 -
Fund balances - ending $ 295,713 $ 236,713 $ 247,592 $ 10,879 Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Police Grants
For the Year Ended June 30, 2022
Packet Page 92 132
Original Final Actual
Variance with
Final Budget

REVENUES
Intergovernmental $ - $ 150,000 $ 223,686 $ 73,686
Total revenues - 150,000 223,686 73,686

EXPENDITURES
Current:

Community development - 150,000 149,835 165
Capital outlay - 232,485 231,300 1,185
Total expenditures - 382,485 381,135 1,350
Revenues over (under) expenditures - (232,485) (157,449) 75,036 Net change in fund balances - (232,485) (157,449) 75,036 Fund balances - beginning - 38,486 38,486 -
Fund balances (deficit) - ending $ - $ (193,999) $ (118,963) $ 75,036 Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Community Development Act (HCD)
For the Year Ended June 30, 2022
Packet Page 93 133
Original Final Actual
Variance with
Final Budget

REVENUES
Intergovernmental $           125,000 $           125,000 $           179,627 $             54,627 Use of money and property ‐  ‐                   1,595                  1,595 Total revenues             125,000             125,000             181,222               56,222

EXPENDITURES
Current:

Public works ‐              478,000               65,904             412,096 Total expenditures ‐              478,000               65,904             412,096 Revenues over (under) expenditures             125,000            (353,000)             115,318             468,318

OTHER FINANCING SOURCES (USES)
Transfers out ‐             (227,000)            (226,372) 628 Total other financing sources (uses) ‐             (227,000)            (226,372) 628 Net change in fund balances             125,000            (580,000)            (111,054)             468,946 Fund balances ‐ beginning $           740,932 $           740,932 $           740,932 $ ‐ Fund balances ‐ ending $           865,932 $           160,932 $           629,878 $           468,946 Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances ‐ Budget and Actual Measure D ‐ Waste Management
For the Year Ended June 30, 2022
Packet Page 94 134
Original Final Actual
Variance with
Final Budget

REVENUES
Intergovernmental $ 1,213,000 $ 1,213,000 $ 1,142,847 $ (70,153) Use of money and property - - 6,446 6,446
Total revenues 1,213,000 1,213,000 1,149,293 (63,707)

EXPENDITURES
Current:

Public works 3,230,000 6,851,003 823,217 6,027,786
Capital outlay - - 491,814 (491,814)
Total expenditures 3,230,000 6,851,003 1,315,031 5,535,972 Revenues over (under) expenditures (2,017,000) (5,638,003) (165,738) 5,472,265 Net change in fund balances (2,017,000) (5,638,003) (165,738) 5,472,265 Fund balances - beginning 3,024,161 3,024,161 3,024,161 - Fund balances - ending $ 1,007,161 $ (2,613,842) $ 2,858,423 $ 5,472,265 Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Gas Tax
For the Year Ended June 30, 2022
Packet Page 95 135
Original Final Actual
Variance with
Final Budget

REVENUES
Intergovernmental $           915,000 $           899,000 $           968,987 $             69,987 Use of money and property ‐  ‐                   4,193                  4,193 Total revenues             915,000             899,000             973,180               74,180

EXPENDITURES
Current:

Public works ‐  ‐                   2,499                (2,499) Recreation             220,000             220,000             195,241               24,759 Capital outlay ‐         30,427,050             612,416        29,814,634 Total expenditures             220,000        30,647,050             810,156        29,836,894 Revenues over (under) expenditures             695,000      (29,748,050)             163,024       29,911,074 Net change in fund balances             695,000      (29,748,050)             163,024        29,911,074 Fund balances ‐ beginning          1,453,552          1,453,552          1,453,552 ‐ Fund balances ‐ ending $        2,148,552 $    (28,294,498) $        1,616,576 $     29,911,074 Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances ‐ Budget and Actual Measure B (ACTC)
For the Year Ended June 30, 2022
Packet Page 96 136
Original Final Actual
Variance with
Final Budget

REVENUES
Intergovernmental $ 755,000 $ 721,000 $ 1,039,414 $ 318,414 Use of money and property - - 3,245 3,245
Total revenues 755,000 721,000 1,042,659 321,659

EXPENDITURES
Current:

Public Works - 137,887 42,221 95,666
Recreation 220,000 220,000 7,000 213,000
Capital outlay - 1,010,000 955,697 54,303
Total expenditures 220,000 1,367,887 1,004,918 362,969
Revenues over (under) expenditures 535,000 (646,887) 37,741 684,628 Net change in fund balances 535,000 (646,887) 37,741 684,628 Fund balances - beginning 1,711,412 1,711,412 1,711,412 - Fund balances - ending $ 2,246,412 $ 1,064,525 $ 1,749,153 $ 684,628 Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Measure BB (ACTC)
For the Year Ended June 30, 2022
Packet Page 97 137
Original Final Actual
Variance with
Final Budget

REVENUES
Intergovernmental $ 190,000 $ 190,000 $ 207,179 $ 17,179 Use of money and property - - 412 412
Total revenues 190,000 190,000 207,591 17,591

EXPENDITURES
Current:

Capital Outlay - 300,000 300,000 -
Total expenditures - 300,000 300,000 -
Revenues over (under) expenditures 190,000 (110,000) (92,409) 17,591 Net change in fund balances 190,000 (110,000) (92,409) 17,591 Fund balances - beginning 332,470 332,470 332,470 -
Fund balances - ending $ 522,470 $ 222,470 $ 240,061 $ 17,591 Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Measure F (VRF) - ACTC
For the Year Ended June 30, 2022
Packet Page 98 138
Original Final Actual
Variance with
Final Budget

REVENUES
Intergovernmental $           897,000 $        1,012,000 $           976,578 $            (35,422) Use of money and property ‐  ‐                   5,368                  5,368 Total revenues             897,000          1,012,000             981,946              (30,054)

EXPENDITURES
Current:

Capital outlay ‐           1,529,600             871,600             658,000 Total expenditures ‐           1,529,600             871,600             658,000 Revenues over (under) expenditures             897,000            (517,600)             110,346             627,946 Net change in fund balances             897,000            (517,600)             110,346             627,946 Fund balances ‐ beginning ‐          2,536,626          2,536,625 (1) Fund balances ‐ ending $        3,433,626 $        2,019,026 $        2,646,971 $          627,945 Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances ‐ Budget and Actual RMRA SB1
For the Year Ended June 30, 2022
Packet Page 99 139
Original Final Actual
Variance with
Final Budget

REVENUES
Intergovernmental $ 13,000 $ 13,000 $ - $ (13,000)
Use of money and property - - 68 68
Total revenues 13,000 13,000 68 (12,932)
Revenues over (under) expenditures 13,000 13,000 68 (12,932) Net change in fund balances 13,000 13,000 68 (12,932)
Fund balances - beginning 25,067 25,067 25,067 -
Fund balances - ending $ 38,067 $ 38,067 $ 25,135 $ (12,932) Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Hazardous Materials Program
For the Year Ended June 30, 2022
Packet 100 Page 140
Original Final Actual
Variance with
Final Budget

REVENUES
Licenses permits and fees $ - $ - $ 2,168 $ 2,168
Total revenues - - 2,168 2,168

EXPENDITURES
Current:

Public works 10,000 10,000 1,797 8,203
Total expenditures 10,000 10,000 1,797 8,203
Revenues over (under) expenditures (10,000) (10,000) 371 10,371 Net change in fund balances (10,000) (10,000) 371 10,371 Fund balances - beginning, restated 63,614 63,614 63,614 - Fund balances - ending $ 53,614 $ 53,614 $ 63,985 $ 10,371 Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual State Senate Bills Funds
For the Year Ended June 30, 2022
Packet 101 Page 141
Original Final Actual
Variance with
Final Budget

REVENUES
Intergovernmental $ - $ - $ 15,749 $ 15,749
Total revenues - - 15,749 15,749

EXPENDITURES
Current:

Public safety - Police 146,000 146,000 15,749 130,251
Total expenditures 146,000 146,000 15,749 130,251
Revenues over (under) 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
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Auto Break-in Prevention AB 74
For the Year Ended June 30, 2022
Packet 102 Page 142
Original Final Actual
Variance with
Final Budget

REVENUES
Intergovernmental $ - $ - $ 2,097 $ 2,097
Total revenues - - 2,097 2,097

EXPENDITURES
Current:

Public Works - 38,100 - 38,100
Capital Outlay - 40,000 184,500 (144,500)
Total expenditures - 78,100 184,500 (106,400)
Revenues over (under) expenditures - (78,100) (182,403) (104,303) Net change in fund balances - (78,100) (182,403) (104,303) Fund balances - beginning - 914,758 914,758 -
Fund balances - ending $ - $ 836,658 $ 732,355 $ (104,303) Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual State Construction Maintenance
For the Year Ended June 30, 2022
Packet 103 Page 143
Original Final Actual
Variance with
Final Budget
Revenues
Licenses permits and fees $ 50,000 $ 50,000 $ 73,182 $ 23,182 Use of money and property - - 1,605 1,605
Total revenues 50,000 50,000 74,787 24,787
Revenues over (under) expenditures 50,000 50,000 74,787 24,787 Other Financing Sources (Uses)
Transfers out - (366,000) (365,887) 113
Total other financing sources (uses) - (366,000) (365,887) 113 Net change in fund balances 50,000 (316,000) (291,100) 24,900 Fund balances - beginning, restated 940,468 940,468 940,468 - Fund balances - ending $ 990,468 $ 624,468 $ 649,368 $ 24,900 Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual PEG Fees
For the Year Ended June 30, 2022
Packet 104 Page 144
Original Final Actual
Variance with
Final Budget

REVENUES
Licenses permits and fees $ 70,000 $ 70,000 $ 62,635 $ (7,365) Use of money and property - - 4,293 4,293
Total revenues 70,000 70,000 66,928 (3,072)
Revenues over (under) expenditures 70,000 70,000 66,928 (3,072) Net change in fund balances 70,000 70,000 66,928 (3,072) Fund balances - beginning 1,848,984 1,848,984 1,848,984 - Fund balances - ending $ 1,918,984 $ 1,918,984 $ 1,915,912 $ (3,072) Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Art in Public Places
For the Year Ended June 30, 2022
Packet 105 Page 145
Original Final Actual
Variance with
Final Budget

REVENUES
Other governmental agencies $ - $ 65,104 $ - $ (65,104) Total revenues - 65,104 - (65,104)

EXPENDITURES
Current:

Public works - 65,104 9,997 55,107
Total expenditures - 65,104 9,997 55,107
Revenues over (under) expenditures - - (9,997) (9,997)
Net change in fund balances - - (9,997) (9,997)
Fund balances - beginning - - - -
Fund balances - ending $ - $ - $ (9,997) $ (9,997)
Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Misc. State Grants
For the Year Ended June 30, 2022
Packet 106 Page 146
Original Final Actual
Variance with
Final Budget

REVENUES
Special assessments $ - $ - $ 380,659 $ 380,659
Use of money and property - - 4,101 4,101
Total revenues - - 384,760 384,760

EXPENDITURES
Current:

Public works - 131,000 192,710 (61,710)
Total expenditures - 131,000 192,710 (61,710)
Revenues over (under) expenditures - (131,000) 192,050 323,050 Net change in fund balances - (131,000) 192,050 323,050 Fund balances - beginning - 1,713,535 1,713,536 1
Fund balances - ending $ - $ 1,582,535 $ 1,905,586 $ 323,051 Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Landscape and Lighting Districts
For the Year Ended June 30, 2022
Packet 107 Page 147
Packet Page 148

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 109 Page 149
City of Newark
Combining Statement of Net Position
Internal Service Funds
June 30, 2022
Equipment Equipment Office
Replacement Operations Support
ASSETS
Current assets:

Cash and investments $   2,609,009 $   2,027,973 $         98,857 Receivables                  480                       ‐                       ‐ Supplies and other assets                       ‐            66,591              3,000 Total current assets      2,609,489      2,094,564          101,857 Capital assets, net of accumulated depreciation      3,548,465                       ‐                       ‐ Total assets      6,157,954      2,094,564          101,857

LIABILITIES
Current liabilities:

Accounts payable                  892            35,590              3,093 Accrued liabilities            24,263                       ‐                       ‐ Financed purchase obligations, due within one year          290,145                      ‐                      ‐ Claims payable, due within one year                       ‐                       ‐                       ‐ Total current liabilities          315,300            35,590              3,093 Noncurrent liabilities:

Financed purchase obligations, due in more than one year 797,866                                 ‐                       ‐ Claims payable, due in more than one year                       ‐                       ‐                       ‐ Total liabilities      1,113,166            35,590              3,093

NET POSITION
Net investment in capital assets *      2,460,454                       ‐                       ‐ Unrestricted (deficit)      2,584,334      2,058,974           98,764 Total net position (deficit) $   5,044,788 $   2,058,974 $         98,764 * Net of financed purchased obligations
Packet 110 Page 150

Public Workers'
Building Liability Compensation
Maintenance Self‐Insurance Self‐Insurance Total
$   2,386,547 $      393,005 $   3,557,027 $   11,072,418 42,696                  435                       ‐              43,611 22,657                       ‐                       ‐              92,248 2,451,900          393,440      3,557,027      11,208,277 ‐                       ‐                       ‐        3,548,465 2,451,900          393,440      3,557,027      14,756,742 164,655              2,037            27,328           233,595 ‐                    42                       ‐              24,305 ‐                       ‐                       ‐           290,145 ‐            75,738          445,269           521,007
164,655            77,817          472,597        1,069,052 ‐                       ‐                       ‐           797,866 ‐          647,283      1,697,618        2,344,901
164,655         725,100      2,170,215        4,211,819 ‐                       ‐                       ‐        2,460,454 2,287,245        (331,660)      1,386,812        8,084,469 $   2,287,245 $     (331,660) $   1,386,812 $   10,544,923 Packet 111 Page 151
City of Newark
Combining Statement of Activities and Changes in Net Position Internal Service Funds
For the year ended June 30, 2022
Equipment Equipment Office Building
Replacement Operations Support Maintenance
OPERATING REVENUES:

Charges to departments $      845,000 $   1,288,000 $      134,000 $   2,221,000 Other revenue              1,887 ‐  ‐             91,084 Total operating revenues          846,887      1,288,000          134,000      2,312,084 OPERATING EXPENSES:

Personnel services ‐           575,037            12,702          538,336 Materials and supplies          148,032          375,567            25,576            86,801 Contractual services ‐           212,860            81,028          721,414 Utilities ‐  ‐  ‐           850,621
Insurance claims and premiums ‐  ‐  ‐  ‐
Depreciation          525,961 ‐  ‐  ‐
Total operating expenses          673,993      1,163,464          119,306      2,197,172 OPERATING INCOME (LOSS)         172,894          124,536            14,694          114,912 NONOPERATING REVENUES (EXPENSES):

Interest expense        (102,570) ‐  ‐  ‐
Total nonoperating revenue (expenses)        (102,570) ‐  ‐  ‐ Change in net position            70,324          124,536            14,694          114,912 NET POSITION:

Beginning of year      4,974,464      1,934,438            84,070      2,172,333 End of year $   5,044,788 $   2,058,974 $         98,764 $   2,287,245 Packet 112 Page 152
Public Workers'
Liability Compensation
Self‐Insurance Self‐Insurance Total
$        845,500 $     1,322,000 $      6,655,500
3,649 ‐                96,620
849,149         1,322,000         6,752,120
31,358              40,082         1,197,515
3,649 ‐              639,625
208,049            738,528         1,961,879
‐  ‐              850,621
1,256,596            284,897         1,541,493
‐  ‐              525,961
1,499,652         1,063,507         6,717,094
(650,503)            258,493               35,026
‐  ‐  (102,570)
‐  ‐  (102,570)
(650,503)            258,493              (67,544)
318,843         1,128,319       10,612,467
$      (331,660) $     1,386,812 $   10,544,923
Packet 113 Page 153
City of Newark
Combining Statement of Cash Flows
Internal Service Funds
For the year ended June 30, 2022
Equipment Equipment Office
Replacement Operations Support
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from other funds $      846,887 $   1,288,000 $      134,000 Payments to suppliers/other fund        (148,389)        (615,847)        (104,717) Payments to employees ‐         (575,037)           (12,702) Claim payments ‐  ‐  ‐
Net cash provided (used) by operating activities          698,498            97,116            16,581

CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES:

Payments on capital lease        (246,451) ‐  ‐
Acquisition of capital assets        (287,072) ‐  ‐
Interest paid and fiscal charges        (102,570) ‐  ‐
Net cash provided (used) by capital and
related financing activities        (636,093) ‐  ‐
Net increase (decrease) in cash
and cash equivalents            62,405            97,116            16,581 CASH AND CASH EQUIVALENTS:

Beginning of year      2,546,604      1,930,857            82,276 End of year $   2,609,009 $   2,027,973 $         98,857 CASH FLOWS FROM OPERATING ACTIVITIES:

Operating income (loss) $      172,894 $      124,536 $         14,694 Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:

Depreciation          525,961 ‐  ‐
Change in assets and liabilities:

Accounts receivable and other assets 974 313 ‐
Accounts payable and accrued liabilities             (1,331)           (27,733)              1,887 Total adjustments          525,604           (27,420)              1,887 Net cash provided (used) by operating activities $      698,498 $         97,116 $         16,581 Packet 114 Page 154
Public Workers'
Building Liability Compensation
Maintenance Self‐Insurance Self‐Insurance Total
$   2,312,084 $      849,149 $   1,322,000 $      6,752,120 (1,737,823)             (9,220)        (491,972)        (3,107,968) (538,336)           (31,358)           (40,082)        (1,197,515) ‐      (1,256,596)        (284,897)        (1,541,493)
35,925        (448,025)          505,049 905,144
‐  ‐  ‐            (246,451)
‐  ‐  ‐            (287,072)
‐  ‐  ‐            (102,570)
‐  ‐  ‐            (636,093)
35,925        (448,025)          505,049 269,051
2,350,622          841,030      3,051,978       10,803,367 $   2,386,547 $      393,005 $   3,557,027 $   11,072,418 $      114,912 $     (650,503) $      258,493 $           35,026 ‐  ‐ ‐ 525,961
(35,754) ‐  ‐  (34,467)
(43,233)          202,478          246,556 378,624
(78,987)          202,478          246,556 870,118
$         35,925 $     (448,025) $      505,049 $         905,144 Packet 115 Page 155
Packet Page 156
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 117 Page 157
City of Newark
Net Position by Component
Last Ten Years
(accrual basis of accounting)
(dollars in thousands)
2013 2014 2015 2016 2017* 2018 2019 2020 2021 2022
Primary government
Governmental activities:

Net Investment in Capital Assets $142,709 $142,524 $140,931 $140,414 $140,414 $143,058 $147,511 $153,456 $154,434 $157,503 Restricted 13,198 12,806 17,260 26,622 39,483 42,954 31,076 89,447 74,408 88,301 Unrestricted 13,264 17,903 (55,634) (43,711) (37,879) (35,998) (11,034) (66,234) (31,461) (16,192) Total governmental activities
net position $169,171 $173,233 $102,557 $123,325 $142,019 $150,014 $167,553 $176,669 $197,381 $229,612 * Net Position not restated for the implementation of GASB Statement No. 75 or other restatements discussed in Note 14 Source:  City of Newark Basic Financial Statements
Fiscal year ended June 30,
-100
-50
0 50
100
150
200
250
300
Thousands
Net Investment in Capital Assets Restricted Unrestricted Packet 118 Page 158
City of Newark
Changes in Net Position
Last Ten Years
(accrual basis of accounting)
(dollars in thousands)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Expenses
Governmental activities:

General government $3,796 $4,643 $5,986 $4,484 $5,337 $6,159 $6,656 $6,668 $6,827 $10,182 Public safety:

Fire 8,669 8,665 9,641 9,805 10,560 11,424 10,821 16,336 11,582 12,851 Police 14,643 15,310 15,565 17,202 19,798 21,728 24,012 22,317 27,257 17,928 Public Works 9,834 6,743 6,082 5,934 6,444 8,648 16,837 14,007 13,283 10,401 Community development 2,749 3,052 3,456 3,930 5,002 6,918 2,173 1,914 2,590 2,795 Recreation and community services 3,839 4,212 4,245 4,291 5,243 7,566 6,017 5,663 5,889 4,965 Interest on long‐term debt 455 430 406 391 373 350 330 2,430 2,165 2,183 Total governmental activities
expenses 43,985 43,055 45,381 46,036 52,757 62,792 66,845 69,335 69,592 61,305 Program revenues
Governmental activities:

Charges for services:

General government 45 50 14 15 13 12 11 4,309 190 84
Public safety:

Fire 135 115 113 230 323 270 193 172 158 155
Police 555 563 573 729 990 1,109 1,182 1,224 1,609 1,403 Public Works 560 530 1,181 2,771 3,388 905 5,367 7,374 9,583 6,630 Community development 1,268 1,858 5,048 13,492 14,269 12,482 7,422 4,105 14,220 7,610 Recreation and community services 1,686 2,432 2,273 2,458 2,801 2,459 5,899 1,883 482 1,189 Operating grants and contributions 1,053 938 615 803 642 543 891 1,051 1,909 4,221 Capital grants and contributions 2,337 2,725 2,055 2,584 2,661 2,844 5,031 4,243 3,820 6,449 Total governmental program
revenues 7,639 9,211 11,872 23,083 25,074 20,625 25,996 24,362 31,971 27,740 Net (expense)/revenue
Total governmental activities
net expense (36,346) (33,844) (33,509) (22,953) (27,683) (42,168) (40,849) (44,973) (37,621) (33,565) General revenues and other changes in net position
Governmental activities:

Taxes:

Property taxes 12,559 13,035 13,987 14,967 16,465 19,193 20,700 22,768 24,417        25,834 Sales taxes 9,631 10,182 10,603 11,092 12,949 16,433 19,041 17,442 20,475        23,680 Transient occupancy tax 3,705 4,320 5,067 5,859 6,094 6,362 6,717 5,450 2,916          4,153 Utility uers tax          3,376          3,644          3,617          3,292           3,527         3,631         3,289         3,480         3,367         3,744 Other local taxes          1,132          1,272          1,488          1,799           1,996         2,346         2,162         2,150         2,497         2,751 Franchise fees * 2,870 2,938 3,076 2,725 3,670 3,833 3,970 ‐                      4,177 4,732 Motor vehicle in‐lieu               23                19               18               18                20               24               23               39               36               56 Use of money and property                49                70                93              189              446             900         2,045         2,497             948                (6) Miscellaneous 1,510 2,562 1,926 2,829 1,206 1,049 686 238 950              866 General revenues 34,855 38,042 39,875 42,769 46,373 53,770 58,633 54,063 59,783 65,810 Loss on disposal of asset ‐              ‐              ‐              ‐              ‐               ‐              ‐              ‐              (1,036) ‐ Change in net position
governmental activities ($1,491) $4,198 $6,366 $19,816 $18,690 $11,602 $17,784 $9,090 $21,126 $32,245 * FY20 Franchise fees were categorized as Charges for services Source:  City of Newark Basic Financial Statements
Fiscal year ended June 30,
Packet 119 Page 159
Fund Balances of Governmental Funds
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General Fund
Nonspendable:

Supplies and prepaid assets          121$          555$          152$          135$          145$          153$          185$          163$            145$            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           7,672 Assigned for:

Fire side fund            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           6,200 Waste disposal fund         1,028            817            576             429             429               73             631              41 ‐                            ‐ Community development ‐                        242            187             342             513             743         2,793         1,073 ‐               ‐ Unassigned      13,849      16,776      18,904       27,169       23,246       31,666       34,331       39,548         47,223         46,136 Total General Fund    15,616$    19,558$    21,528$     29,930$     34,111$     43,945$     52,454$     63,054$      60,633$      60,153$ All other governmental funds
Restricted for:

Public safety            216            199            197             215             295             403             650        4,744          6,053           2,123 Community development              15              15              15               15               15               92       18,767       27,002         10,766           4,855 Transportation facilities ‐             ‐             ‐             ‐              ‐              ‐              ‐              ‐                      10,832         11,805 Housing impact ‐             ‐             ‐             ‐              ‐              ‐              ‐              ‐                      34,536         40,889 Street improvements         3,053         3,740         4,456         9,608       12,884       14,559         4,164       16,744           9,973           9,844 Environmental programs            241            313            400             491             580             645            688             736             798             687 Health and welfare              34              35              37               37               46               35               36               25                 25                 25 Park improvement            116            111            730         2,877         5,726         6,044         4,100             747           3,633           5,445 Debt service            676            677            681             680             680             687             700       37,116           6,511           3,624 Landscape and lighting            701            665            738             762             875             981         1,195         1,454           1,714           1,906 Other purposes (i.e. PEG, State CASp Fee)   ‐ ‐                         ‐             ‐              ‐                          689             777             878              942              649 Committed:

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

Waste disposal fund ‐             ‐             ‐             ‐              ‐              ‐              ‐              ‐                              19                 19 Art in public places            646            673            860             959         1,151         1,451         1,626         1,727           1,849           1,916 Capital asset acquisition         6,858        6,159        9,340       12,770       21,715       21,859       25,105         3,107 ‐                         7,112 Unassigned ‐             ‐             ‐             ‐              ‐              ‐              ‐                     (1,692)       (12,911)          (2,263) Total all other governmental funds    12,708$    12,890$    18,029$     29,535$     45,874$     49,687$     60,601$     96,289$      74,739$      88,634$ Source:  City of Newark Basic Financial Statements

CITY OF NEWARK
Last Ten Fiscal Years
(modified accrual basis of accounting)
(dollars in thousands)
Fiscal year ended June 30,
Packet 120 Page 160

CITY OF NEWARK
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(dollars in thousands)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Revenues
Property taxes $12,559 $13,035 $13,988 $14,967 $16,465 $19,193 $20,700 $22,768 $24,417 $25,834 Other local taxes 20,558 22,200 23,867 24,655 28,151 33,145 35,179 28,522 29,255 34,328 Special assessments 473 319 431 460 457 507 529 671 655 639 Licenses, permits and fees 939 1,443 2,264 4,173 4,149 3,638 3,638 3,241 29,134 20,255 Other governmental agencies 2,974 4,037 3,093 3,345 3,231 3,399 5,486 4,656 5,765 8,259 Charges for services 3,098 4,604 6,352 14,430 15,738 11,960 15,471 14,797 443               1,227 Fines and forfeitures 377 362 383 529 822 944 966 1,029 378 605 Use of money and property 49 70 93 189 477 900 1,999 2,497 948 (6) Other 985 1,374 1,486 2,982 1,793 1,250 686 238 295 227 Total revenues 42,011 47,445 51,955 65,729 71,284 74,935 84,654 78,419 91,290 91,368 Expenditures
Current:

General government 3,722 4,526 6,043 4,643 5,231 5,487 5,774 5,734 6,208 11,678 Public safety:

Fire 8,433 8,460 9,634 9,619 10,373 11,433 10,821 11,152 11,715 12,854 Police 14,433 15,282 15,435 16,741 17,954 19,763 20,970 22,563 33,747 23,796 Public works 7,160 4,350 3,663 3,954 3,877 7,522 13,032 9,150 9,608 10,147 Community development 2,708 3,005 3,512 4,089 4,922 6,158 1,858 1,743 2,368 3,772 Recreation 3,458 3,949 4,000 4,092 4,786 6,582 5,554 5,094 4,644 5,421 Capital outlay 2,365 2,611 1,483 1,321 2,844 2,957 5,840 38,645 43,511 7,236 Debt service:

Principal repayment 527 572 589 560 584 542 556 544 525 545 Interest and fiscal charges 450 430 410 388 369 348 330 3,172 2,509 2,490 Total expenditures 43,256 43,185 44,770 45,409 50,940 60,791 64,736 97,798 114,835 77,939 Excess (deficiency) of revenues
over (under) expenditures (1,244) 4,260 7,185 20,321 20,344 14,144 19,918 (19,378) (23,545) 13,429 Other financing sources (uses)
Transfers in 1,852 2,212                    4,065          3,773          5,836         6,544           6,402         26,442         28,565         22,880 Transfers (out) (1,924) (2,504)                  (4,141)         (3,910)         (6,201)        (6,909)         (6,650)       (26,691)       (28,578)       (22,880) Debt refunding ‐               ‐               ‐               ‐               ‐               ‐             ‐                       63,345 ‐               ‐ Bond premium less payment to refunded bond escrow agent ‐               ‐               ‐               ‐               ‐               ‐             ‐                         2,571 ‐               ‐ Capital lease proceeds ‐                            157 ‐               ‐               ‐               ‐             ‐               ‐               ‐               ‐ Total other financing sources (uses) (72) (136) (76) (138) (366) (366) (249) 65,667 (13) ‐ Net change in fund balances ($1,316) $4,125 $7,109 $20,183 $19,978 $13,779 $19,669 $46,289 ($23,558) $13,429 Debt service as a percentage of
noncapital expenditures 2.4% 2.5% 2.4% 2.2% 2.0% 1.6% 1.5% 6.7% 4.4% 4.5% Source:  City of Newark Basic Financial Statements
Fiscal year ended June 30,
Packet 121 Page 161
Real Property Total Real Total
Fiscal Residential Commercial Industrial Secured Unsecured Total Direct Year Property Property Property Other Property Property Assessed (a) Tax Rate 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% 2022 7,720,849,778 1,019,207,250 1,855,450,304 517,864,428 11,113,371,760 751,064,642 11,864,436,402 0.16523%

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
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Millions
Unsecured Property Total Real Secured Property
Packet 122 Page 162

CITY OF NEWARK
Property Tax Rates
All Overlapping Governments
Last Ten Fiscal Years
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 2022 1.0000 0.0072 0.0060 0.0041 0.0020 0.0838 0.0309 0.0203 1.1543 https://acgov.org/auditor/tax/districtRpts23/51427CAFunds.txt Total
Source:  Alameda County Assessor  2012/13 ‐ 2021/22 Combined Tax Rolls & Assessed Value of Taxable Property Report Fiscal Year
Basic County
Wide Levy
Alameda
County
Water
District
Bay Area
Rapid Transit
County Go
Bond
East Bay
Regional Park
District
Newark
Unified
School
District
Ohlone
Community
College
Washington
Hospital
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Per Hundred $
Ohlone Community College East Bay Regional Park District Bay Area Rapid Transit Alameda County Water District County Go Bond Washington Hospital Newark Unified School District Basic County Wide Levy Packet 123 Page 163

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 $370,442,990 1 3.12% $216,422,143 2 3.72% Lennar Homes California Inc. 190,629,068 2 1.61%
JMB Newpark Associates & GGP 179,497,389 3 1.51% 75,675,329 3 1.30% T5 Silicon Valley LP 126,532,700 4 1.07%
Newark Industrial Partners LLC 104,722,934 5 0.88%
Metropolitan Life Insurance Company 98,009,654 6 0.83%
Silicon Valley Gateway Technology Center 97,083,184 7 0.82% IPT East Bay DC LP 88,229,691 8 0.74%
Apple Inc 75,542,276 9 0.64%
Leslie Salt Company 69,796,061 10 0.59% 65,951,177 4 1.13% Apple Computer Inc 389,496,031 1 6.69%
Evergreen Oil Inc. 55,494,350 5 0.95%
Sycamore Bay LLC 53,484,231 6 0.92%
SI XVIII LLC 44,792,280 7 0.77%
BRCP Stevenson Point LLC 34,115,348 8 0.59%
BRE US Industrial Properties 40,898,890 9 0.70%
DCT Cherry Street California LP 34,000,000 10 0.58%
Subtotal $1,400,485,947 11.81% $1,010,329,779 17.35%
Total Net Assessed Valuation:

Fiscal Year 2021/22 $11,864,436,402
Fiscal Year 2012/13 $5,821,323,128
2021/22 2012/13
Source:  Alameda County Assessor 2011/12 ‐ 2020/21 Combined Tax Rolls. HDL Packet 124 Page 164

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 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% 2022 18,668,120 24,401,540 130.7124% 640,977 25,042,516 134.1459% 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
$28.0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Millions
Tax Levy Tax Collections
Packet 125 Page 165

CITY OF NEWARK
Taxable Sales by Category
Last Ten Calendar Years
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Apparel Stores $62.5 $58.2 $52.1 $53.4 $60.7 $61.6 $60.5 $51.6 $26.0 $33.6 General Merchandise 71.7 68.4 66.5 64.1 58.6 51.7 45.0 31.4 17.6 25.4 Food Stores 22.0 22.0 22.5 20.2 18.0 18.0 18.0 18.2 19.7 18.7 Eating and Drinking Places 81.8 87.9 95.4 104.1 113.4 123.3 129.2 137.8 90.0 123.1 Building Materials 90.0 104.4 106.9 126.1 129.9 134.8 146.9 151.6 173.7 219.7 Auto Dealers and Supplies 149.1 196.5 229.9 266.7 266.6 261.4 260.2 248.2 228.0 306.7 Service Stations 59.8 53.6 51.8 49.2 43.6 49.6 55.3 56.1 38.7 50.7 Other Retail Stores 183.3 177.7 176.0 179.1 180.7 179.5 157.3 55.6 39.5 56.2 All Other Outlets 242.8 243.5 274.5 325.7 340.1 383.4 480.1 623.9 737.9 740.8 Total $       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 $       1,574.9 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
$1,600.0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
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 126 Page 166

CITY OF NEWARK
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Certificates
of Participation Financed Total Percentage
Fiscal and Bank Bond Purchase Outstanding of Personal Per Year Refinancing Premium Obligations Debt Income (a) Capita (a) 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 2022 61,750,000 8,848,550              1,088,011 71,686,561 3.16% 1,492 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. $11,273,666 10,857,926 10,440,849 9,839,587 9,213,300 8,628,032 8,026,806 72,550,628 72,986,087 71,686,561
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Total Outstanding Debt
Packet 127 Page 167

CITY OF NEWARK
Direct and Overlapping Governmental Activities Debt
June 30, 2022
Debt Oustanding
Percentage
Applicable (1)
Share of
Overlapping Debt

OVERLAPPING TAX AND ASSESSMENT DEBT
Alameda County $183,745,000 3.423% $6,289,591
Bay Area Rapid Transit District 2,521,570,000 1.333% 33,612,528 East Bay Regional Park District 184,590,000 2.129% 3,929,921 Ohlone Community College District 412,995,000 16.047% 66,273,308 Newark Unified School District 75,704,769 100.000% 75,704,769 Washington Township Heathcare District 343,045,000 13.766% 47,223,575 City of Newark 1915 Act Bonds 1,857,559 100.000% 1,857,559 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $     234,891,251

DIRECT AND OVERLAPPING GENERAL FUND DEBT
Alameda County General Fund Obligations $742,688,000 3.423% $25,422,210 Alameda‐Contra Costa Transit District Certificates of Participation 11,655,000 4.053% 472,377 City of Newark General Fund Obligations ‐ Direct Debt 70,598,550 100.000% 70,598,550 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $        96,493,137 City of Newark Financed Purchased Obligations 1,088,011 100.000% 1,088,011 TOTAL DIRECT DEBT 71,686,561
TOTAL OVERLAPPING DEBT 259,697,827
COMBINED TOTAL DEBT $331,384,388 (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 128 Page 168

CITY OF NEWARK
Legal Bonded Debt Margin Information
Assessed valuation:

Secured property assessed value,
net of  exempt real property $11,864,436,402
Bonded debt limit: 3.75% of assessed value (a) 444,916,365 (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 61,750,000
Less: Certificates of participation and bank
refinancing not subject to limit 61,750,000
Amount of debt subject to limit                             ‐ Legal bonded debt margin $444,916,365
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
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 105,395,013                                ‐ 105,395,013 0.00% 2022 111,229,091                                ‐ 111,229,091 0.00% June 30, 2022
Packet 129 Page 169

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 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% 2021 47,229          2,269,518 48,053 5.5% 1,651,979 2.86% 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 130 Page 170

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 635 1 2.49% 689 2 3.2%
WorldPac 454 3 1.78% 280 3,4 1.3%
Amazon Fulfillment Center 563 2 2.21%
Newark Unified School District 396 4 1.55% 700 1 3.3%
KNT Manufacturing 368 5 1.44%
Risk Management Solutions 282 6 1.11% 270 5 1.3%
Nordstrom Distribution Center* 236 7 0.93%
Smart Modular Technologies 220 8 0.86% 249 6 1.2%
Cargill Salt 203 9 0.80% 182 8 0.9%
City of Newark 185 10 0.73% 176 9 0.8%
Aryzta,LLC (formerly Fullbloom Baking Co. 280 3,4 1.3%
Morpho Detection 208 7 1.0%
Valassis (formerly ADVO) 166 10 0.8%
Total 3,542 13.89% 3,034 15.0%
Total City Employment (1) 25,500 21,400
Source:  MuniServices an Avenu Insights and Analytics Company Source: City of Newark Comprehensive Annual Financial Report for the Year Ended June 30th, 2017 Note: Nine Year Historical Data Not Available.

Results based on direct correspondence with city's local businesses. (1) Employment Development Department.
*No response from business, previous year's count applied. 2021‐22 2012‐13
Packet 131 Page 171

CITY OF NEWARK
Last Ten Fiscal Years
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Function/Program:

General government 20.43 22.52 24.24 25.67 25.35 24.75 28.37 31.48 24.24 25.33 Public safety
Police 74.06 79.36 79.14 78.10 72.70 81.01 83.66 84.42 53.97 77.71 Streets and parks 19.89 16.88 18.57 18.23 18.65 21.50 19.70 20.48 19.88 21.41 Community development 19.00 14.58 16.52 16.94 23.80 23.73 25.65 28.04 26.18 22.74 Recreation 39.00 34.53 41.45 38.22 41.62 34.59 39.54 36.75 21.73 38.06 Total 172.38 167.87 179.92 177.16 182.12 185.58 196.92 201.17 146.00 185.25 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
Recreation Community development Streets and parks Police General government Packet 132 Page 172

CITY OF NEWARK
Operating Indicators by Function/Program
Last Six Fiscal Years
2017 2018 2019 2020* 2021** 2022***
Function/Program
Public safety:

Fire
Fire calls for service 3,308 3,296 3,239 3,423 3,550 3,772 Primary fire inspections conducted 2,194 1,671 1,797 1,940 2,291 2,494 Environmental safety inspections conducted 696 875 1,115 177 157 825 Police
Communication center calls answered 31,670 38,114 42,556 41,749 20,399 46,880 Police calls for service 31,670 38,114 42,556 41,749 20,399 23,656 Law violations
Part I crimes 1,726 1,782 1,784 1,779 1,901 2,358
Traffic violations 1,996 3,032 3,368 2,013 1,308 1,244
Parking violations 1,067 1,406 775 1,526 981 995
Public works:

Street resurfacing (miles) 6 5 4 4 1 8
Street lights repaired 602 472 482 374 548 594
Recreation:

Recreation class/program participants 154,120 152,574 187,088 70,132 38,110 48,373 Recreation facilities rentals 1,486 1,445 1,559 1,112 692 1,862 Silliman Activity Center use 125,761 94,766 101,239 66,265 11,962 44,962 Miscellaneous:

Library:

Library visitors 191,709 183,184 188,060 104,695 5,753 73,442 Library materials circulated 249,197 250,934 246,803 159,662 42,724 212,066 Source:  City of Newark
Alameda County Library
***Increase in Part I Crimes is due to a change in reporting from Uniform Crime Reporting (hierarchy rule) to California Incident Based Reporting System (all offenses).

Fiscal Year
** 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. * 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 133 Page 173

CITY OF NEWARK
Capital Asset Statistics by Function/Program
Last Six Fiscal Years
2017 2018 2019 2020 2021 2022
Function/Program
Public safety:

Fire stations 3 33333
Police stations 1 11111
Police patrol units 20 20 21 25 27 23
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 47 47
Recreation:

Community services:

City parks 14 14 14 15 15 15
City parks acreage 124 124 124 127 127 127
Roadway landscaping acreage 56 56 56 56 56 56
Lake acreage 16 16 16 16 16 16
Community activity centers 2 22222
Senior center 111111
Aquatic center 111111
Miscellaneous
Library 1 11111
Source: City of Newark
Fiscal Year
Packet 134 Page 174
Item  F. 1.

DATE 01/26/2023
TO Honorable Mayor and City Council Members
FROM Jayson Imai, Assistant City Engineer
SUBJECT    Adopt resolutions initiation of proceedings for the formation of Area Improvement District No. 35 for Lindsay Tract, providing preliminary approval of the Engineer’s Report, declaring intention to order formation of the assessment district and to levy and collect assessments, establishing Property Owner Assistance Program for City-Sponsored Assessment Districts, and setting a public hearing date of March 23, 2023 SUMMARY AND RECOMMENDATION
In the late 1990s the City secured property owner participation and support to form multiple Area Improvement Districts throughout the Old Town neighborhoods to help fund the construction of public sidewalk, drainage and roadway improvements.

Similarly, staff recommends that City Council initiate proceedings to form Area Improvement District No. 35 to partially fund the construction of the Lindsay Tract Roadway and Green Infrastructure Improvements Project (Lindsay Tract Project).  The Lindsay Tract Project would install and perform much needed pavement rehabilitation, sidewalk, drainage, water line and green infrastructure improvements within the Lindsay Tract neighborhood, which includes portions of George Avenue, Magnolia Street, Olive Street and Mulberry Street.

If the City Council approves a Resolution of Intention, the formation of Area Improvement District No. 35 and the levy and collection of assessments to finance the construction of curb, gutter, driveway, and sidewalk improvements with the Lindsay Tract Project will be considered by the City Council at a Public Hearing scheduled for March 23, 2023.  If, at the Public Hearing, Area Improvement District No. 35 is approved, the total amount that would be assessed to property owners within the District is $2,864,355.  This would equate to an average annual assessment per parcel of approximately $1,400 each year for 30 years.  The City will be responsible for $38,915.03 of general benefit received from construction of new curb, gutter, sidewalk, and driveway improvements in addition to approximately $3.6 million to construct additional roadway, storm drain, and green infrastructure improvements not included in the property owner assessments.

To help alleviate the burden caused by the assessments for certain qualified owner-occupied parcels, staff recommends establishing a Property Owner Assistance Program.  Similar to the Property Owner Assistance Programs established in the late 1990s in conjunction with Area Improvement Districts formed throughout the Old Town neighborhoods, the Program would allow senior, disabled and low-income applicants to Packet Page 175
defer payment of their assessment interest-free until they sell or transfer their property.

The City would be obligated to pay up-front, any property owner assessments that are deferred through the Program.  This could amount to upwards of an additional $1.45 million of City project cost.

Staff recommends that the City Council initiate proceedings for the formation of Area Improvement District No. 35 for Lindsay Tract, and by resolutions: (1) preliminarily approve the Engineer’s Report, (2) declare the intention to order the formation of the assessment district and to levy and collect assessments, (3) establish a Property Owner Assistance Program for City-Sponsored Assessment Districts, and (4) set the Public Hearing date on March 23, 2023.

BACKGROUND
The Lindsay Tract Roadway and Green Infrastructure Improvements Project (Lindsay Tract Project) would install and perform much needed pavement rehabilitation, sidewalk, drainage, water line and green infrastructure improvements within the Lindsay Tract area, which includes portions of George Avenue, Magnolia Street, Olive Street and Mulberry Street.   The cost to construct all project improvements is currently estimated at $9.86 million.  Of this, $3.01 million is attributable to the replacement of ACWD’s existing asbestos cement water mains and will be paid for in full by ACWD per a cooperative Cost Sharing Agreement approved by City Council in February 2021.

This results in $6.85 million of City project construction costs.  Similar to what was previously done in the late 1990s to help fund construction of roadway and sidewalk improvements throughout the Old Town neighborhoods, funding for the construction of improvements associated with the Lindsay Tract Project will be subject to property owner participation and support.  In response, City Council approved a Contractual Services Agreement with Francisco & Associates in July 2021 to evaluate the feasibility of forming an Area Improvement District to authorize assessments and bonding to finance the construction of curb, gutter, driveway, and sidewalk improvements within the Lindsay Tract neighborhood.

Francisco & Associates has prepared a Preliminary Engineer’s Report for the establishment of Area Improvement District No. 35 which, if approved, is required to partially fund the construction of the Lindsay Tract Project improvements using assessments.  Approval of the Preliminary Engineer’s Report and adoption of a Resolution of Intention to establish assessments will authorize staff to mail the required notices and ballots to affected property owners, initiating the 45-day noticing period, in accordance with Proposition 218. The formation of Area Improvement District No. 35 and the levy and collection of assessments to finance a portion of the improvements will be considered by the City Council at a Public Hearing scheduled for March 23, 2023.

DISCUSSION/ANALYSIS
Section 10100 of the Municipal Improvements Act of 1913 allows local government to Packet Page 176
Section 10100 of the Municipal Improvements Act of 1913 allows local government to finance the costs and expenses of certain capital facilities within or along its streets or any public right of way or easement. The formation of Area Improvement District No. 35 will provide for:

1. Removal of existing curb, gutter, and sidewalk

2. Installation of new concrete curb, gutter, and sidewalk

3. Removal of existing driveway and walkway sections

4. Installation of new concrete driveway and walkway conform sections

5. Payment of assessment administration, bonding and related costs Pursuant to the Municipal Improvement Act of 1913 and Article XIIID of the State Constitution (Proposition 218), a parcel’s assessment for any certain improvement shall be based on the special benefit that the property receives from the proposed improvements. Proposition 218 further states that a parcel's assessment may not exceed the reasonable cost attributed to the proportional special benefit conferred upon that parcel.  The local agency levying the assessment must separate the general benefits to the public at large from the special benefits, and only the special benefits are assessable.

As discussed in the Engineer’s Report, the Lindsay Tract Project improvements provide special benefit to parcels within the boundaries of the proposed Area Improvement District No. 35 (the “District”) that is not realized by other parcels outside of the District or the general public.  These special benefits are further described as “Primary Benefits” and “Enhanced Benefits.”  Primary Benefits are those that will be realized by all properties within the District as a result of improved drainage throughout the neighborhood, the reconstruction and resultant prolonged lifespan of roadway pavement, and improved walkability.  In addition, certain properties within the District will experience Enhanced Benefits above and beyond the Primary Benefits resulting from the construction of new curb, gutter, driveway, and sidewalk directly fronting their parcels, and conform work to match these new improvements to existing walkway and driveway improvements on their parcels.  The total assessment of each single-family home parcel within the District is the sum of Primary Benefit and Enhanced Benefit assessments, plus their share of incidental expenses and financing costs associated with establishment of the District.  Assessments per parcel would range between $9,581 and $54,074 with an average per-parcel assessment of $19,354.  The total principal amount that would be assessed to property owners within the District, including incidental and financing costs, is $2,864,355.   For assessments that are not paid upfront, the annual assessments per parcel to be placed on the Alameda County property tax bills are estimated to range between $700 and $4,000, with an average annual assessment of approximately $1,400.

In accordance with Proposition 218, a parcel’s assessment for any certain improvement shall be based on the proportional special benefit conferred on that parcel by that improvement.  As discussed in the Engineer’s Report, benefits realized from the Lindsay Tract Project improvements are generally limited to the residents living within the District boundaries, as it is highly unlikely that drivers from points outside the Lindsay Tract neighborhood would traverse through the Lindsay Tract neighborhood to Packet Page 177
Lindsay Tract neighborhood would traverse through the Lindsay Tract neighborhood to reach a destination also located outside of the Lindsay Tract neighborhood.  However, to acknowledge the incidental occasion when this may occur, general benefit received from construction of new curb, gutter, sidewalk, and driveway improvements within the boundaries of the District was estimated at 2% of the costs of the improvements or $38,915.03 and will be paid for by the City.

If, after the close of the Public Hearing on March 23, 2023, a majority (weighted by proposed assessment amount) protest does not exist and the City Council orders the levying of the first annual assessments for Area Improvement District No. 35, property owners would have a 30-day period in which to elect to pay the entire principal assessment amount upfront and avoid added financing and administration costs associated with the issuance of bonds.  In accordance with Division 10 of the Streets and Highways Code of the State of California (the “Improvement Bond Act of 1915”), bonds will be issued to cover all unpaid assessments.  Bonds would be financed over a thirty (30) year term and paid annually through assessments placed on the Alameda County property tax bills.

Property Owner Assistance Program for City-Sponsored Assessment Districts Similar to Area Improvement Districts formed in the late 1990s within the Old Town neighborhoods, City staff recommends establishing a Property Owner Assistance Program to help alleviate the burden caused by the assessments for certain qualified owner-occupied parcels.  For qualifying applicants, payment of their applicable assessment can be deferred interest-free to the time of the next sale or transfer of the property for which their application was submitted.  To qualify for the deferment program, property owners must submit an application to the City with evidence of eligibility in accordance with at least one of the criteria described below.

For an applicant to qualify for full deferment of the assessment assigned, the City must determine the property is owner-occupied and supporting documentation demonstrates proof of at least one of the following:

At least one property owner on title is 65 years of age or older on or before April 24, 2023.

At least one property owner on title is permanently disabled and receiving disability benefits from Social Security, Workers Compensation, or an equivalent.

For calendar year 2022, household income earned for the property for which the application is submitted must be low income or below, pursuant to the income limits for Alameda County published by the California State Department of Housing and Community Development.

Number
of persons 1 2 3 4 5 6
Low
Income
Household
$76,750 $87,700 $98,650 $109,600 $118,400 $127,150
Packet Page 178
For an applicant to qualify for partial deferment of the assessment assigned, the City must determine the property is owner-occupied and the following is true:

The property for which the application is submitted must have a total assigned assessment of at least 25% above the average assessment of $19,353.75 for Area Improvement District No. 35, i.e., the total assigned assessment must be $24,192.19 or higher. For qualifying properties, the portion of the total assigned assessment above the average assessment can be deferred to the time of next sale or transfer of property.

FISCAL IMPACT
As discussed earlier in this report, if a majority (weighted by proposed assessment amounts) protest does not exist and the City Council orders the levying of the first annual assessments for Area Improvement District No. 35, the City will be responsible for $38,915.03 of general benefit received from construction of new curb, gutter, sidewalk, and driveway improvements within the boundaries of the District.

If the Property Owner Assistance Program is approved, the City would also be obligated to pay up-front, any property owner assessments that are deferred.  Based on census data for the Lindsay Tract neighborhood, staff estimates that approximately 30%-40% of property owners within the boundaries of the District may qualify for full deferment of their assessment.  This could amount to upwards of $1,146,000.  In addition, if every property owner that qualifies for a partial deferral of their assessment through the Partial Assessment Deferment Program, a) takes advantage of program; and b) does not already qualify for full deferment, the City would have to pay as much as an additional $306,000.

The 2022-2024 Biennial Budget and Capital Improvement Plan includes sufficient funding for Lindsay Tract Roadway and Green Infrastructure Improvements, Project 1238 to pay for the City’s potential obligations that may result from the formation of Area Improvement District No. 35 and approval of the Property Owner Assistance Program 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.

REVIEW AND APPROVAL
Prepared by - Jayson Imai, Assistant City Engineer
Reviewed by - Soren Fajeau, Public Works Director
Reviewed by - Krysten Lee, Finance Director
Reviewed by - Kristopher J. Kokotaylo, City Attorney
Approved by - David J. Benoun, City Manager
Attachments
Packet Page 179
Resolution 1 - Intention
Resolution 2 - Preliminary Approval
Preliminary Engineer's Report
Resolution 3 - Property Owner Assistance Program
Property Owner Assistance Program
Presentation
Packet Page 180
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK OF INTENTION TO MAKE ACQUISITIONS AND

IMPROVEMENTS FOR THE PROPOSED AREA
IMPROVEMENT DISTRICT NO. 35 (LINDSAY TRACT)
WHEREAS, the City of Newark (the “City”), County of Alameda (the “County”), State of California, is a general law city under the laws of the State of California and is authorized to take actions pursuant to the Municipal Improvement Act of 1913, Division 12 of the Streets and Highways Code of California (the “Act”); and
WHEREAS, the City Council (the “Council”) of the City had determined a need for improved drainage throughout the Lindsay Tract neighborhood in the City (the “neighborhood”), prolonging lifespan of the pavement and ancillary improvements associated with the neighborhood streets, and improvement of walkability throughout the neighborhood, and therefore desires to commence and conduct proceedings pursuant to the Act in and for the establishment of an assessment district within the City to be known as “Area Improvement District No. 35 (Lindsay Tract)” (the “Assessment District”).

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Newark hereby resolves the following:

1. Each of the above recitals is true and correct and is adopted by the City Council of the City of Newark.

2. The public interest, convenience and necessity require, and the City intends to order the making of, the acquisitions and improvements described in Exhibit “A” (the “Improvements”) attached hereto and made a part hereof in and for the proposed Assessment District.

3. Except as herein otherwise provided for the issuance of bonds, all of the work shall be done as provided in the Act.

4. Serial and/or term improvement bonds (the “Bonds”) to represent unpaid assessments levied under the Act for the Assessment District will be issued under the Improvement Bond Act of 1915, Division 10 of the California Streets and Highways Code (the “Bond Law”). The Bonds shall be issued in such series and shall mature in such principal amounts and at such times (not to exceed 39 years after the September 2 next succeeding their date) and at such rate or rates of interest (not to exceed the maximum rate permitted by applicable law) as may be determined by this Council at the time of the issuance and sale of the Bonds.

The provisions of Part 11.1 of the Bond Law shall apply to the calling of the Bonds. It is the intention of this Council to create a special reserve fund for the Bonds under Part 16 of the Bond Law. The City will not advance available surplus funds from the City treasury to cure any deficiency in the redemption fund to be created with respect to the Bonds; Packet Page 181
provided, however, that this determination shall not prevent the City from, in its sole discretion, so advancing funds. The Bonds may be refunded under Division 11.5 of the California Streets and Highways Code or other applicable laws permitting refunding of the Bonds, upon the conditions specified by and at the determination of the Council.

5. In the opinion of this Council, the Improvements are of more than general or ordinary public benefit, and are of special benefit to the lands within the Assessment District. The costs and expenses of the Improvements are chargeable upon the Assessment District, the exterior boundaries of which are shown on a map thereof on file in the office of the City Clerk, to which reference is hereby made for further particulars. The map indicates by a boundary line the extent of the territory proposed to be included in Assessment District and, except as modified, shall describe the extent of the Assessment District.

6. This Council declares that all public streets, highways, lanes and alleys, and properties owned by any public agency or department of the United States of America, the State of California, the County, any city or special district, in the Assessment District and used for a public function shall be omitted from the assessment unless and to the extent found to be specially benefited by the Improvements.

7. The Improvements are hereby referred to Francisco & Associates, Carlsbad, California, being a competent firm employed for the purpose hereof as Engineer of Work for the Assessment District (the “Engineer of Work”), and the Engineer of Work is hereby directed to make and file with the City Clerk a report in writing (the “Engineer's Report”), presenting the following:
a. Maps and descriptions of the lands and easements to be acquired, if any. b. Plans and specifications of the Improvements, if not already installed, which need not be detailed and are sufficient if they show or describe the general nature, location, and extent of the Improvements. If the Assessment District is divided into zones, the plans and specifications shall indicate the class and the type of Improvements to be provided for each zone. The plans or specifications may be prepared as separate documents, or either or both may be incorporated in the Engineer’s Report as a combined document. c. A general description of works or appliances already installed and any other property necessary or convenient for the operation of the Improvements, if the works, appliances, or property are to be acquired as part of the Improvements. d. An estimate of the cost of the Improvements including the cost of lands, rights-of-way, easements, and incidental expenses in connection with the Improvements, including any cost of issuing, selling and delivering the Bonds.
e. A diagram showing, as they existed at the time of the passage of this Resolution, all of the following:
i. The exterior boundaries of the Assessment District.

Packet Page 182
ii. The boundaries of any zones within the Assessment District. iii. The lines and dimensions of each parcel of land within the Assessment District.

The diagram may refer to the county assessor’s maps for a detailed description of the lines and dimensions of any parcels, in which case those maps shall govern for all details concerning the lines and dimensions of the parcels. Each parcel shall be given a separate number upon the diagram.
f. A proposed assessment of the total amount of the cost and expenses of the Improvements upon the parcels or subdivisions of land in the Assessment District in proportion to the estimated special benefits to be received by each subdivision, respectively, from the Improvements. The assessment shall refer to the subdivisions by their respective numbers as assigned pursuant to subdivision (e). When any portion of the costs of the Improvements is to be paid from sources other than assessments, the amount of such portion shall first be deducted from the total estimated cost of the Improvements and the assessment shall include only the remainder of the estimated cost. The Engineer’s Report shall specify that property owners may apply with the City for a full or partial deferment of their total assessment for their respective parcel(s) by providing evidence of eligibility per the City’s Property Owner Assistance Program. g. A proposed maximum annual assessment upon each of the several subdivisions of land in the Assessment District to pay cost incurred by the City and not otherwise reimbursed resulting from the administration and collection of assessments or from administration or registration of any associated bonds and reserve or other related funds.

8. This Council will comply with Division 4 of the Streets and Highways Code of California under Part 7.5 of it. The Engineer of Work shall include in the Engineer’s Report the information required under Part 7.5, and for which the total true value shall be estimated as the full cash value of the parcels of land in the Assessment District as shown on the last equalized assessment roll of the County, or alternatively, by means of a current appraisal on such terms as may be prescribed by this Council.

9. Any excess realized from the assessment, including the proceeds of the Bonds, shall be used, in such amounts as this Council may determine, in accordance with the applicable provisions of the Act.

10. The City will enter into agreement(s) with public agency(ies) or public utility(ies) under Chapter 2 (commencing with Section 10100) of the Act for the Improvements, to provide for the construction, ownership, operation and/or maintenance by such agency or utility of the Improvements, and for the providing of service to the properties in the Assessment District by such agency or utility in accordance with its rates, rules and regulations, and that such agreement shall become effective after proceedings have been taken for the levy of the assessments and sale of bonds and funds are available to carry out the terms of any such agreement. This Council determines that the public interest will not be served by Packet Page 183
allowing the property owners in the Assessment District to take any contract for the construction of the improvements and therefore that, under Section 20487 of the California Public Contract Code, no notice of award of contract shall be published.

11. All of the Improvements are to be constructed at the places and in the particular locations, of the forms, sizes, dimensions and materials, and at the lines, grades and elevations, as shown and delineated upon the plans, profiles and specifications to be made therefore and approved by the City. This Council does hereby adopt and establish as the official grades for the Improvements the grades and elevations to be shown upon the plans, profiles and specifications. All such grades and elevations are to be in feet and decimals thereof with reference to the datum plane of this City. Notice is hereby given of the fact that if the Improvements will result in a grade different from that formerly existing, the grades are hereby changed and the Improvements will be done to the changed grades.

12. In cases where there is any disparity in level or size between the Improvements and private property and where it is more economical to eliminate such disparity by work on the private property than by adjustment of the work on public property, it is hereby determined that it is in the public interest and more economical to do such work on private property to eliminate such disparity. In such cases, the work on private property shall, with the written consent of the owner of the property, be done and the actual cost thereof may be added to the proposed assessment of the lot on which the work is to be done.

13. The descriptions of the Improvements and the termini of the work for them are general in nature. All items of work do not necessarily extend for the full length of the description thereof. The plans and profiles of the Improvements and maps and descriptions referenced in the Engineer’s Report, hereinafter directed to be made and filed, shall be controlling as to the correct and detailed description thereof.

14. The City hereby confirms the appointment of Jones Hall, A Professional Law Corporation, San Francisco, California, as bond counsel.

15. Jayson Imai, Assistant City Engineer, is hereby designated as the person to answer inquiries regarding the assessment proceedings to be had herein, and may be contacted during regular office hours at City Hall, 37101 Newark Boulevard, Newark, California, 94560; telephone: (510) 578-4671; e-mail: [email protected].

16. This Resolution shall take effect from and after the date of its passage and adoption.

Packet Page 184

EXHIBIT A

CITY OF NEWARK
AREA IMPROVEMENT DISTRICT NO. 35
(LINDSAY TRACT)

DESCRIPTION OF IMPROVEMENTS
Section 10100 of the Municipal Improvements Act of 1913 provides for the legislative body of any municipality to finance certain capital facilities and services within or along its streets or any public right of way or easement. The following is the list of Area Improvement District No. 35 improvements specifically benefitting properties within the boundaries of the Assessment District and allowed to be installed or improved under the provisions of the Municipal Improvements Act of 1913.
• Removal of existing curb, gutter, and sidewalk.
• Installation of new concrete curb, gutter, and sidewalk. • Removal of existing driveway and walkway sections.
• Installation of new concrete driveway and walkway conform sections.

Plans and specifications for the Assessment District improvements listed above have been prepared for the City by BKF Engineers and are on file in the office of the City Engineer.

Packet Page 185
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWARK APPROVING PRELIMINARY ENGINEER’S

REPORT AND DIRECTING RELATED ACTIONS FOR THE
PROPOSED AREA IMPROVEMENT DISTRICT NO. 35
(LINDSAY TRACT)
WHEREAS, on January 26, 2023, the City Council (the “Council”) of the City of Newark (the “City”), County of Alameda (the “County”), State of California, adopted its resolution entitled “A Resolution of the City Council of the City of Newark of Intention to Make Acquisitions and Improvements for the proposed Area Improvement District No. 35 (Lindsay Tract)” (the “Resolution of Intention”) under the Municipal Improvement Act of 1913, Division 12 of the Streets and Highways Code of California (the “Act”) to initiate proceedings under the Act in and for the City’s proposed Area Improvement District No. 35 (Lindsay Tract) (the “Assessment District”) for the making of certain public improvements (the “Improvements”) as described in the Resolution of Intention; and
WHEREAS, the Resolution of Intention referred the acquisitions and improvements described therein to the person designated therein as the Engineer of Work and directed the Engineer of Work to prepare and file with the City Clerk a report (the “Engineer’s Report”) pursuant to the Act and containing information set forth in the Resolution of Intention, to which reference is hereby made for further particulars.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Newark hereby resolves the following:

1. Each of the above recitals is true and correct and is adopted by the City Council of the City of Newark.

2. The Engineer of Work has prepared and filed the Engineer’s Report with the City Clerk, and this Council with the aid of City staff has reviewed the Engineer’s Report, and hereby finds it to be sufficient for, and that it shall stand for purposes of subsequent proceedings for the Assessment District and the preliminary Engineer’s Report is hereby approved.

3. Pursuant to the Act, this Council hereby orders that a public hearing be held before this Council, in the regular meeting place thereof, City Hall Council Chambers, David W.

Smith City Hall, 37101 Newark Boulevard, 1st Floor, Newark, California, on Thursday, March 23, 2023, at the hour of 7:00 o’clock p.m., for the purposes of this Council’s determination whether the public interest, convenience and necessity require the Improvements, whether the properties in the Assessment District are specially benefited by the Improvements, the tabulation of special assessment ballots and the determination of the existence of any majority protest and this Council’s final action upon the Engineer’s Report Packet Page 186
and the assessments therein. The public hearing may be continued from time to time as determined by the Council.

4. The City Clerk is hereby authorized and directed to cause notice of the hearing ordered under Section 3 hereof to be given to the record owner of each parcel in the Assessment District by mailing, postage prepaid, in the United States mail, and such notice shall be deemed to have been given when so deposited in such mail. On the face of the envelope mailed to the record owner, in which the notice and ballot are enclosed, there shall appear in no smaller than 16-point bold type the words "OFFICIAL BALLOT ENCLOSED," together with the name of the City and the return address of the City Clerk as the sender.

The mailed notice shall be given to all owners of property proposed to be assessed within the Assessment District as shown in the Engineer’s Report by such mailing by name to those persons whose names and addresses appear on the last equalized assessment roll of the County or the State Board of Equalization assessment roll, as the case may be. The notice shall be mailed not less than 45 days before the date of the public hearing ordered under Section 3 hereof.

The amount of the proposed assessment for each parcel shall be calculated and the record owner of each parcel shall be given written notice by mail of the proposed assessment, the total amount thereof chargeable to the entire Assessment District, the amount chargeable to the owner’s particular parcel, the anticipated duration of payments for the assessment if bonded, the reason for such assessment and the basis upon which the amount of the proposed assessment was calculated. Each such mailed notice to owners shall contain a ballot which includes the property owner’s name, identification of the parcel and support or opposition to the proposed assessment.

Each notice shall include, in a conspicuous place, a summary of the procedures applicable to the completion, return and tabulation of ballots, including a disclosure that the existence of a majority protest (whereby ballots submitted in opposition exceed those submitted in favor of the assessment, with ballots weighted according to proportional financial obligation of the affected property) will result in the assessment not being imposed. Each mailed ballot shall include a sealable return envelope with the City’s address for receipt of the completed ballot.

5. The City Clerk is hereby designated as the impartial person, without a vested interest in the outcome of the assessment, responsible for the tabulation of the ballots, and is hereby authorized to engage a consultant to assist in the tabulation of the ballots in accordance with Government Code section 53753(e). The City Clerk shall maintain a separate and secure file for the safekeeping of the assessment ballots as they are received and pending tabulation. Ballots shall be received up to the time of the close of the public hearing.

Ballots shall remain sealed until the close of the public hearing and the beginning of the tabulation, provided that ballots may be submitted, or changed, or withdrawn by the person submitting the ballot prior to the conclusion of the public hearing. During and after tabulation, the ballots shall be disclosable public records under Section 6252 of the California Government Code.

Packet Page 187

6. The proposed boundaries of the proposed Assessment District are hereby described as shown on a map thereof on file in the office of the City Clerk (the “Boundary Map”), which indicates by a boundary line the extent of the territory to be included in the proposed Assessment District; the Boundary Map shall govern for all details for further purposes of the proceedings for the Assessment District and reference is hereby made to the Boundary Map for further particulars. The City Clerk is hereby authorized and directed to endorse upon the original and at least one copy of the Boundary Map the date of the filing thereof and date and adoption of this resolution and to cause a copy of the Boundary Map to be filed with the County Recorder of the County within 15 days after the adoption of this resolution, but in no event later than 15 days before the date of the public hearing ordered under Section 3 hereof. The County Recorder shall endorse upon the Boundary Map the time and date of filing and shall fasten the same securely in a book of maps of assessment and community facilities districts which the County Recorder maintains. The County Recorder shall index the Boundary Map by the name of the City and by the distinctive designation of the proposed Assessment District.

7. This Resolution shall take effect from and after the date of its passage and adoption.

Packet Page 188
Area Improvement District No. 35
(Lindsay Tract)
Preliminary Engineer’s Report
January 26, 2023
Packet Page 189
City of Newark
Area Improvement District No. 35 TABLE OF CONTENTS
i
Page No.

Introduction and Certifications .................................................................................... 1 PART I – Description of Project, Plans, and Specifications ......................................... 3 PART II – Estimate of Cost ......................................................................................... 4 PART III – Assessment Diagram ................................................................................. 5 PART IV – Method of Assessment .............................................................................. 7 PART V – Annual Administrative Assessment .......................................................... 13 PART VI – Bonds and Debt Limit Valuation .............................................................. 14

APPENDICES
APPENDIX A – Benefit Boundary and Improvement Diagram
APPENDIX B – Right-of-Way Certificate
APPENDIX C – Assessment Roll
APPENDIX D – Property Owner Assistance Program
Packet Page 190
City of Newark
Area Improvement District No. 35 INTRODUCTION AND CERTIFICATIONS 1 CITY OF NEWARK
AREA IMPROVEMENT DISTRICT NO. 35
(LINDSAY TRACT)
ENGINEER’S REPORT PURSUANT TO THE
PROVISIONS OF SECTIONS 2960 AND 10200

OF THE STREETS AND HIGHWAYS CODE
This Engineer’s Report (the “Report”) is presented to the City Council of the City of Newark (the “City”) in connection with the proceeding to establish Area Improvement District No. 35 (Lindsay Tract) (the “District”). The District will provide financing for the installation of new curb, gutter, sidewalk, driveway, and walkway improvements (the “District Improvements”) associated with the Lindsay Tract Roadway and Green Infrastructure Improvement Project within the Lindsay Tract neighborhood of the City. The Lindsay Tract neighborhood is bound by Cherry Street, Dairy Avenue, Sycamore Street, and the Newark slough running along the northwest end of Olive Street and Mulberry Street. The District Improvements are proposed to be constructed to City standards and will enhance aesthetics, ingress/egress, safety, and walkability for the Lindsay Tract neighborhood.

Pursuant to the provisions of Article XIIID of the State Constitution, Part 7.5 of the “Special Assessment Investigation, Limitation and Majority Protest Act of 1931”, being Division 4 of the Streets and Highways Code of the State of California, and the “Municipal Improvement Act of 1913”, being Division 12 of said Code, and the Resolution of Intention, adopted by the City Council of the City of Newark, State of California, in connection with the proceedings to establish the District, I, Eduardo Espinoza, P.E., a Registered Professional Engineer and authorized representative of Francisco & Associates, the duly appointed Engineer of Work, herewith submit this Report for Area Improvement District No. 35 (Lindsay Tract), consisting of six (6) parts as outlined below.

PART I – DESCRIPTION OF PROJECT, PLANS, AND SPECIFICATIONS This part contains the description of project, plans, and specifications which describe the general nature, location, and extent for the District Improvements to be constructed and are filed herewith and made a part hereof. Said plans and specifications are on file in the office of the City Engineer, who is acting as the Superintendent of Streets (the “Superintendent of Streets”).

PART II – ESTIMATE OF COST
This part contains an estimate of the cost of the District Improvements, including capitalized interest, if any, incidental costs and expenses in connection therewith as set forth herein and attached hereto.

Packet Page 191
City of Newark
Area Improvement District No. 35 INTRODUCTION AND CERTIFICATIONS 2 PART III – ASSESSMENT DIAGRAM
This part contains a diagram showing the boundaries of the District, the boundaries and the dimensions of parcels of land within said District, and those boundaries and dimensions are the same as existed at the time of the passage of the Resolution of Intention. The Boundary Map and Assessment Diagram are filed herewith and made a part hereof, and part of the assessment.

PART IV – METHOD OF ASSESSMENT
This part consists of the proposed assessment for the total amount of costs and expenses of the District Improvements upon the parcels of land within the District, in proportion to the special benefits to be received by such parcels of land from said District Improvements, which is set forth upon the assessment roll filed herewith and made a part hereof.

PART V – ANNUAL ADMINISTRATIVE ASSESSMENT
This part contains the proposed maximum annual administrative assessment to be levied within the District and upon each parcel of land within the District to pay the costs incurred by the City, resulting from the administration and collection of assessments, from the administration and registration of any associated bonds and reserve or other related funds, or both.

PART VI – BONDS AND DEBT LIMIT VALUATION
This part contains the information related to limitations for bonds issued in accordance with Division 10 of the Streets and Highways Code of the State of California (the “Improvement Bond Act of 1915”), and to demonstrate compliance with Section 2960 of the “Special Assessment Investigation, Limitation, and Majority Protest Act of 1931” related to value to lien against the total area proposed to be assessed on a per parcel basis and for the District.

This Report is submitted on January 26, 2023.

FRANCISCO AND ASSOCIATES
__________________________
EDUARDO ESPINOZA, P.E.

R.C.E. No. 83709

ENGINEER OF WORK

CITY OF NEWARK

STATE OF CALIFORNIA
Packet Page 192
City of Newark
Area Improvement District No. 35 PART I
3 PART I

DESCRIPTION OF PROJECT, PLANS, AND SPECIFICATIONS
Description of Project
Section 10100 of the Municipal Improvements Act of 1913 provides for the legislative body of any municipality to finance certain capital facilities and services within or along its streets or any public right of way or easement. The following is the list of District Improvements specifically benefitting properties within the boundaries of the District and allowed to be installed or improved under the provisions of the Municipal Improvements Act of 1913.
 Removal of existing curb, gutter, and sidewalk.
 Installation of new concrete curb, gutter, and sidewalk.  Removal of existing driveway and walkway sections.
 Installation of new concrete driveway and walkway conform sections.

The City will also complete pavement rehabilitation, storm drain improvements, and green infrastructure improvements within the Lindsay Tract neighborhood in conjunction with the District Improvements listed above. These other City improvements will be paid for by the City utilizing alternative funding sources and are not included in the proposed assessment for the District. Additionally, the District Improvements and other City roadway, storm drain, and green infrastructure improvements for the Lindsay Tract are intended to be constructed concurrently with the planned water main replacement project of the Alameda County Water District.

Plans and Specifications
The plans and specifications to construct the District Improvements benefitting properties within the District, and any ancillary improvements thereof, describe the general nature, location and extent of the improvements are referenced herein and incorporated as if attached and a part of this Report. Plans and specifications have been prepared for the City by BKF Engineers and are on file in the office of the Superintendent of Streets.

Appendix A (Benefit Boundary and Improvement Diagram) included in this Report depicts the location of the District Improvements.

Packet Page 193
City of Newark
Area Improvement District No. 35 PART II
4 PART II

ESTIMATE OF COST
Below is an Estimate of Cost for the District Improvements based on the Plans and Specifications prepared for the City. As described in Part I of this Report, the City will also complete pavement rehabilitation, storm drain, and green infrastructure improvements within the Lindsay Tract neighborhood in conjunction with the District Improvements. The estimate of cost for these other City improvements is approximately $4.27 million and will be paid by the City utilizing non-District funding sources.

District Cost
Description
Cost
Estimate
Curb and Gutter District Improvements
Remove Existing Curb and Gutter $256,200
Remove Existing Storm Drain Inlets $30,000
Installation of New Curb and Gutter $93,650
Installation of New Rolled Curb $302,050
Installation of Curb Drain $30,000
Subtotal: $711,900
Sidewalk (including Driveway portions) District Improvements Remove Existing Sidewalk and Driveway $244,520
Curb Ramps $120,000
Concrete Sidewalk $417,571
Concrete Driveway $197,967
Subtotal: $980,058
15% Contingency: $253,794
Total Cost Estimate for Curb, Gutter, and Sidewalk District Improvements: $1,945,751.70 2% Attributed to General Benefit (Paid by City): ($38,915.03) Total Special Benefit Attributed to Curb and Sidewalk District Improvements $1,906,837 Driveway/Walkway Conform District Improvements
Installation of 4 foot and/or 10 foot Driveway and Walkway Conforms $366,821 15% Contingency: $55,023
Total Cost Estimate for Driveway/Walkway Conform District Improvements: $421,844 0% Attributed to General Benefit (Paid by City): $0
Total Special Benefit Attributed to Driveway/Walkway Conform District Improvements: $421,844 Incidental Expenses
Assessment Engineering $50,000
Bond Counsel $35,000
Financial Advisor $25,000
Filing Recording Fees $5,000
Total Cost Estimate for Incidental Expenses: $115,000
Financing Costs
Debt Service Reserve Fund $123,348
Capitalized Interest $95,000
Bond Counsel (Issuance) $32,500
City Administration $58,217
Disclosure Counsel $20,000
Financial Advisor (Issuance) $47,500
Underwriter $29,109
Paying Agent $5,000
Miscellaneous $10,000
Total Cost Estimate for Financing Costs: $420,674
Total Amount of Assessment: $2,864,355
Packet Page 194
City of Newark
Area Improvement District No. 35 PART III
5 PART III

ASSESSMENT DIAGRAM
A reduced copy of the Assessment Diagram is attached hereto. Full-sized copies of the Boundary Map and Assessment Diagram are on file in the Office of the City Clerk, of the City of Newark.

As required by the Municipal Improvement Act of 1913, the Assessment Diagram shows the exterior boundaries of the District and the assessment number assigned to each parcel of land corresponding to its number as it appears in the Assessment Roll contained in Appendix C of this Report. The Assessor’s Parcel Number is also shown for each parcel as they existed at the time of the passage of the Resolution of Intention and reference is hereby made to the Assessor’s Parcel Maps of the County of Alameda for the boundaries and dimensions of each parcel of land.

Packet Page 195
Cherry St
Magnolia St
George Ave
Mulberry St
Sycamore St
Dairy Ave
Olive St
8 7
6 5
4 3
2 1
9 10
11 12
13 14
15 135
134
133
132
144
143
142
141 140139
138
17 18
19 20
21 22
23 36 37
38 24
25 26
27 28
29 30
31 32
108
107
106
109
110
111
112
113
114
115 116
117
118
137
136
33 16
34 39 40
35 41
42 43
44 45
46 47
48 49 50
51 52
53 54
55 62
61 60
59 58
57 56
131
130
129
128
127
126 125
124
123
122
121
120
119
94 93 92 91
90 89
88 87
86 85
84 83
82 105
104
103
102 101
100
99 98
97 96
95 81
80 79
78 77
76 75
74 73
72 71
70 69
68 67
65 66
64 63

ASSESSMENT DIAGRAM
AREA IMPROVEMENT DISTRICT No. 35

CITY OF NEWARK

COUNTY OF ALAMEDA

STATE OF CALIFORNIA
± 200 0 200 400 600 800Feet