Agenda packet — Newark City Council, January 11, 2024

AGENDA
Thursday, January 11, 2024
7:00 P.M.

A. ROLL CALL
B. PRESENTATIONS

1. Proclaiming January 13 - 28, 2024 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 December 14, 2023 minutes

3. Acceptance of the Annual Comprehensive Financial Report (ACFR) for the period ended June 30, 2023

4. Adopt a resolution: (1) amending the Employee Classification Plan to delete and add multiple classifications due to title changes and new position of Deputy Finance Director; (2) amending the Compensation and Benefit Plan for the Management, Supervisory, and Professional Employees Group; (3) amending the City's Salary Schedule; (4) amending the 2022-2024 Biennial Budget and Capital Improvement Plan; and (5) approving a letter of understanding with Newark Association of Miscellaneous Employees (NAME) E. PUBLIC HEARINGS
F. OTHER BUSINESS

1. Presentation: "Resilient East Bay" Industrial Lands Analysis

2. Adoption of an ordinance adding Chapter 17.15 to the Newark Municipal Code to establish the By Right Housing (-BRH) Overlay District, amending the Newark Zoning Map by applying the -BRH Overlay District to specific parcels, and making related miscellaneous amendments to Title 17, Zoning, of the Newark Municipal Code 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. CITY MANAGER UPDATES
I. CLOSED SESSION
J. ADJOURNMENT

MEETING INFORMATION
Members of the public may attend the meeting in person, watch online, or watch on Cable Channel 26. The ability to observe online or Cable Channel 26 is predicated on those technologies being available and functioning without technical difficulties. Should those platforms not be available, or become non-functioning, or should the City Council otherwise encounter technical difficulties that make those platforms unavailable, the City Council will proceed with business in person unless otherwise prohibited by law.

How to view the meeting remotely:

Livestream online at YouTube: https://www.youtube.com/@cityofnewark3077/streams Copy/paste the YouTube URL into your browser if the link does not automatically open.

Cable Channel 26 - if the meeting does not broadcast live, please contact your service provider and request the City of Newark channel lineup.

Zoom will no longer be available for public participation unless required by Assembly Bill 2449. Should a Council Member or the Mayor attend the meeting via Zoom pursuant to Assembly Bill 2249, then the Webinar ID https://us06web.zoom.us/j/87685524341 will be activated. The Mayor will make an announcement at the beginning of the meeting that the City will be allowing public comment via Zoom. Raise your virtual hand to notify the City Clerk that you would like to speak during the item that you wish to speak on.

How to submit written Public Comment:

Send an email to City Clerk by 3:00 p.m. the day of the meeting. Please identify the agenda item number in the subject line of your email. Emails will be compiled into one file and will be distributed to the City Council before the meeting.

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

Council Meeting Access/Materials:

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

Pursuant to Government Code 54957.5, supplemental materials distributed less than 72 hours before this meeting, to a majority of the City Council, will be made available for public inspection at this meeting and will be posted at https://www.newark.org/departments/city-manager-s-office/agendas-minutes and will concurrently be made available for public inspection during regular business hours at the David W. Smith City Hall, 37101 Newark Boulevard, Newark CA. 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.

Item B. 1.

DATE 01/11/2024
TO Honorable Mayor and City Council Members
FROM Sheila Harrington, City Clerk
SUBJECT Proclaiming January 13 - 28, 2024 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' annual "Health for Humanity Yogathon" or "Surya Namaskar Yajna" (SNY) event. This event will begin on January 13, 2024, and end on January 28, 2024, 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
PROCLAMATION NO. 1906

SURYA NAMASKAR (SUN SALUTATION) AWARENESS PERIOD
JANUARY 13-28, 2024
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 13-28, 2024, 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-four.

MICHAEL K. HANNON
Mayor
Item D. 1.

DATE 01/11/2024
TO Honorable Mayor and City Council Members
FROM Krysten Lee, Finance Director
SUBJECT Approval of Audited Demands
Attachments
Audited Demands 11.30.23
Audited Demands 12.07.23
Audited Demands 12.14.23

!"
#
$
%&'() '
*+,- ./0-1234-567258-9/+-1/3- :;*</=>?@872=0
*5/=A80B7=
@372=0
</=>@872=0CDEFGHD I JKLMNEDO HPQ
IRSTU VWXYZ X[[\DT]^_`aEbcdeSfQDPMfDLgfKhDLiQNJKiIQ
IQLM ijkLI
Z\lmno
k_p]qTSgb`SgSaTrqs`]_IRSTUN]r`I tS
Du]^_`
QYXoZvZVVWYZ XQhEPJOQ DN kMDL EiJwiDhxQDEyFgQI hH iZYX Z\lmno
IRSTU VWXYZ X[[vDT]^_`aEbcdeSDPEkLQDzDigNkLI
ZjnYvmX
k_p]qTSgb`SgSaTrqs`]_IRSTUN]r`I tS
Du]^_`
oVYvZlVVWYnZ XNMD{ NfkiMN
ZjnYvmX
IRSTU VWXYZ X[[oDT]^_`aEbcdeSDhQikIDLP wKDwQNQi|kIQN Vj\ovmn
k_p]qTSgb`SgSaTrqs`]_IRSTUN]r`I tS
Du]^_`
looVVWYnZ XMiLNP}kLMQiEN|I FJPgMJzLF~JHVYZXFY hN
VlomXv
lovVVWYnZ XMiLNP}kLMQiEN|I FJPgMJzLF~JHVYZXFYVhN
ZoYmV
l XXVVWYXZ XMiLNP}kLMQiEN|I FJPgMJzLFVWXZzJiNfJE
VjYZ[mXY
IRSTU VWXYZ X[[lDT]^_`aEbcdeSDhNmLQM
vlmZ
k_p]qTSgb`SgSaTrqs`]_IRSTUN]r`I tS
Du]^_`
Yo[VVVVWYoZ XNQLkJiIQLM izDE
vlmZ
IRSTU VWXYZ X[[nDT]^_`aEbcdeSHDM QiON MQhNkLI
V[mY
k_p]qTSgb`SgSaTrqs`]_IRSTUN]r`I tS
Du]^_`
XvV YZX vZVVWYZ XHDM QikN
V[mY
IRSTU VWXYZ X[[[DT]^_`aEbcdeSHDOIQLMiDPEikLM w
onm[o
k_p]qTSgb`SgSaTrqs`]_IRSTUN]r`I tS
Du]^_`
V[lnYVVWYXZ XfIgiD{MfJKNkLwQP hQLMhD QikDP
\[omV
V[lZYXVVWYlZ XHKNkLQ IDigkhEiLM wFDmNMQgP i}kLMQiLN V[ZmnY
IRSTU VWXYZ XVY YDT]^_`aEbcdeSIDPk{JiLkDN JIkDMJLJ{fJNMDwQ LQwJMkDMJiN
ZnYm
k_p]qTSgb`SgSaTrqs`]_IRSTUN]r`I tS
Du]^_`
ZYXhQhYYVoVVWlZYXgKQNF
NkhJLjzDi QLjI i|DLMQNjLJi|QPjzDOHikwfMjPJhQPkjhIIKkL
{OZ\
ZnYm
IRSTUVVWXYZ XVY VDT]^_`aEbcdeSIkMOJ{KLkJLIkMO
Vvj m[n

!"#$#%&#'(#%)#!!%'*!%+ %(,&,*
-.- /0
0-

!"#$#%&#'(#%)#!!%'*!%+ %(1,+(
-.- /0

2 345!$*

*#+ )!'72,8+9" #
0

2 345,*!$9%.'/

.
-/

6
6
9%# , *!$2+:,#

.
-/

2 345+(1!,%'+!%2 *!'
/

8 -6

,$$%(!"'!%' #2,8+;#

6/
8 -
-

2,8+;,8)!'!%' #

2 345+;$8%

-
6

9*#% )#

2 345,<# + !'

/

-0
0
8%!*'*%#$ .2 '$#,%#&&$*&
'!)#$8 %

2 345#2+,*#;'!+!&(.'/
.-0/

)-6

)%!'2%!"# !'+#%)# +2!'*%*0- 0:
.-0/

2 345"%!*#;'!+!&#.'/
-.6/

0-6

-
*%'2!"!%!
-.6/

2 345"# =
0/-

2< &##+) %(

0/-

2 345"%' !7 !*#'

.6/-

+'2#'+&;*'&*% $'*% !''
2%# % *!'

.6/-

2 345<%+" #*%!$
.6-
/6

6

#=2

!""#!"*%" "#*(,$$*#=2%#$8,%#$#'*
6

.6-
/6

2 345 &%'&#%
6/

0 -
6

+<#;!%#2%<+&;*
/-
0 06

*(;+'"+!!%*;#%$!* $='&)+#

/
0 0

+ $'8,+ '2'

! "
#
! $
%

&'( )
*
#+,-

.

./

0*,+#
0+
#1

! "
#
! $

&2
3

,-
# 2
-

4&(
5,-
6,#
(

./

0*,+#
0+
#

'

! "
#
! $

,
#
2*,+) 3') (&
(

)

7 &&

,
#
2*,+) 3')
( &
(

7 &

7 &

,
#
2*,+) 3')
( &
(

'

'

0-+#8

'

! "
#
! $

57'&7 3
., +-

+,

'

7

*
,0+9,
+-,1
1&

! "
#
! $

,
&7
7 +,
*/06
-.#9
#( 7

*,2,-#
5,

17 3

! "
#
! $

-
4,#

#,-5,#- - +9-
069
+
/,-1

'
3

-
4,#

#,-5,#- - +9-
069
+
/,-1

1)3
'

-
4,#

#,-5,#- - +9-
069
+
/,-1

1
7 &

-
4,#

#,-5,#- - +9-
069
+
/,-1

1 7

-
4,#

#,-5,#- - +9-
069
+
/,-1

71

-
4,#

#,-5,#- - +9-
069
+
/,-1

1)3

-
4,#

#,-5,#- - +9-
069
+
/,-1

1

-
4,#

#,-5,#- - +9-
069
+
/,-1

'13
7
)

+

+8#0-5,26#,-5,#

! "
#
! $

( 3
3
+-
4 #0-5,2(
:

(37

#/
-,0*/,-
*
21

! "
#
! $

&37' '
/60*/,-

4 6
#8, +-
713
)
'

! "
#
! $

73'(

0
, +- +24
-#+-, +-
4 69+# 7(

'
37( 7
7

0
, +- +24
-#+-, +-
4 69+# )
(

7 )
'(

0
, +- +24
-#+-, +-
4 69+# )
3(
)
'

3&)(

0
, +- +24
-#+-, +-
4 69+# )
3(
)
1

7 7
' (

3
0
, +- +24
-#+-, +-
4 69+# )
'(
& 1

7

4
44,
0+
*
+

7)

! "
#
! $
%

!"#$% &'()

*
*+*

,#-!.
/&$
/
%0.1$!#

!0$
2 3!"#$

4,

**5,

6

4,
,
,
6

4,
,
,
6

!"#$% &'()

* */,

+

5 7,

7
,#-!.
/&$
/
%0.1$!#

!0$
2 3!"#$

*

*/
,

7

!"#$% &'()

7
,#-!.
/&$
/
%0.1$!#

!0$
2 3!"#$

+

,8
*,5*

8

7

!"#$% &'()
95/,
,+57,

7
,#-!.
/&$
/
%0.1$!#

!0$
2 3!"#$ 9

/,+*
,

7

!"#$% &'()

5 ,

5:
7
,#-!.
/&$
/
%0.1$!#

!0$
2 3!"#$
,

; 8,

7
5,,

;
7

!"#$% &'()

;
,;
4,
+

5 7,

/+<,
;
*
7
,#-!.
/&$
/
%0.1$!#

!0$
2 3!"#$
<

;

* ,

,*
7

!"#$% &'()
,8
:*

,#-!.
/&$
/
%0.1$!#

!0$
2 3!"#$
;

, +

!"#$% &'()

7
,#-!.
/&$
/
%0.1$!#

!0$
2 3!"#$

,+

7

!"#$% &'()
*
,=

,#-!.
/&$
/
%0.1$!#

!0$
2 3!"#$
= =
,*85
*

!"#$% &'()
<

,#-!.
/&$
/
%0.1$!#

!0$
2 3!"#$
=
;
,
5

=
,*85
*

!"#$% &'()
>*
5/
7
,#-!.
/&$
/
%0.1$!#

!0$
2 3!"#$
/

+
*/5
,+
5

,+
7

!"#$% &'()
58;

*
*
7
,#-!.
/&$
/
%0.1$!#

!0$
2 3!"#$

!"#$
$ %
&'%"

$
(
#)*+

+
,*-

,
.
/

%0
1$
2%
34%'5

'%0#+'
6%01
(

! 4
2#&%
2%
#
$

#)*+

+
,*-

,
.

6
+$7 $
7
% %7'

! %'#%
"'#

(8
#)*+

+
,*-

,
.

9 "
'+
"#:%'+
"'#
&"
'+

6(

( "
'+
"#:%'+
"'#
&"
'+

6
(8
("
'+
"#:%'+
"'#
&"
'+

68
8
8 "
'+
"#:%'+
"'#
&"
'+

6

8"
'+
"#:%'+
"'#
&"
'+
9
6

"
'+
"#:%'+
"'#
&"
'+

6
(
( "
'+
"#:%'+
"'#
&"
'+

6

98 "
'+
"#:%'+
"'#
&"
'+

6
(9
9 "
'+
"#:%'+
"'#
&"
'+

69

(

! %#0

%::
'%
'
9
#)*+

+
,*-

,
.

8
4 '+
' %

9
9

! '
0 $2%

#

#)*+

+
,*-

,
.

6
6(
':+

8

!2"#

#

#)*+

+
,*-

,
.

6
6 8
':+

: 99

!
;'%
2%$+#&
$ 8
9

#)*+

+
,*-

,
.

(( #'

%:4
'

'0#
6(
6 8

: (

! &%0
% #%
<
2=
(
9
#)*+

+
,*-

,
.

8((
+

>" #
'
$

%
"'
686
9

?7
%"

!
@,

*
@
89 A(

@8A 9(
:
@ A(

!"
#
$
%&'() *
+,-. /01.2345.678369.:0,.204. ;<+=0>?@A983>1
+60>B91C8>
A483>1
=0>?A983>1DEFGHIE J KLMNOFEP IQR
JSTUV WXYZ[ \WZ]WEU^_`abFcdefTEIEJLOFgKhLJNOiMJ
WjZXklW
i`m^nUThcaThTbUonpa^`JSTUVO^oaJ qT
Er^_`a
I[\stkWWYkXZ\JiNPQRN gu EghviMhKvRMw QKFROGWY]X\
[sWlkx
I[\st[WWYkXZ\JiNPQRN gu EghRyLQEgRMw QKFROGWY]X\
X]ltk
JSTUV WXYZ[ \WZ]XEU^_`abFcdefTROiyMyRMiR
xjZ l
i`m^nUThcaThTbUonpa^`JSTUVO^oaJ qT
Er^_`a
ROiyMW\]XWWYZkX \WPREgOLI JgiFNKMzR OiyMyRMiRWYX\GWYX] xjZ l
JSTUV WXYZ[ \WZ]\EU^_`abFcdefTEhiNPEI L
]k[lxZ
i`m^nUThcaThTbUonpa^`JSTUVO^oaJ qT
Er^_`a
WZXG kX\WWYX Z\wKQQRPIEQJ EO R WYXG kX\
]k[lxZ
JSTUV WXYZ[ \WZ]]EU^_`abFcdefTEzQEJ
[tl\s
i`m^nUThcaThTbUonpa^`JSTUVO^oaJ qT
Er^_`a
tW]XWWWY\ZX \EzQEJGMKwR{I gXZ\FgR{iL{O
[tl\s
JSTUV WXYZ[ \WZ]xEU^_`abFcdefTEQE{RhEJKLMNPzigRh FEgN{RMN WjZt\XZl
i`m^nUThcaThTbUonpa^`JSTUVO^oaJ qT
Er^_`a
XZ\G]WtWWY\XZ\JKMNgEJNzigRO gwiJROGWYX\
WjZt\XZl
JSTUV WXYZ[ \WZ]kEU^_`abFcdefTE|LENiJuEgwRONiMy
WXj]tlZ
i`m^nUThcaThTbUonpa^`JSTUVO^oaJ qT
Er^_`a
XZx[kZ[YZsX \QE}RuEgwRONiMy[YsX\
WXj]tlZ
JSTUV WXYZ[ \WZ][EU^_`abFcdefTEN~
sWl]\
i`m^nUThcaThTbUonpa^`JSTUVO^oaJ qT
Er^_`a
X\ZGW X \WWYZ X \JEFNiKMQiONMyGWYZG Y\ZX \
sWl]\
JSTUV WXYZ[ \WZ]sEU^_`abFcdefTIEwJK
t\lk
i`m^nUThcaThTbUonpa^`JSTUVO^oaJ qT
Er^_`a
X]x[kXWWYxXZ\IEJ}zQKvOLF QiROGgI RFEig}N
t\lk
JSTUV WXYZ[ \WZ]tEU^_`abFcdefTIEigh giO}RQJK{{LMiNP FQEM iy
W]jx[WlXx
i`m^nUThcaThTbUonpa^`JSTUVO^oaJ qTEr^_`aWxXZtYW\XZ\uKLOiMyRQ {RMNLFhENRFg Eg NiKMGOwJ sYWX\GsW[X\WWjk\lXx Wx][ZtYZsX \ KMJEQF EM iyORgwiJROG[Y\XGs WX
Xjt]Zl

#
$%&%'
& (
)

*+, -

!!
"
.! -

/+"

.
,+
! -
*+, -0

12
"

3+* -

-

4#
$%&%'
& (

)
4
3

4
+"

1-+

1,+
"*5
6
3 76

" !

6 #
$%&%'
& (

)

468 4

3 8,+,+-
12+

6 #

1
.

! -

9 #
$%&%'
& (

)

2 "
.
"-

.
+-*+
3

9 #

8
"1
,#/-
497 #
$%&%'
& (

)

6

.-
1"+

.
+-*+
36
34

497 #

: 2-

-
"

87 #

$%&%'
& (

)

6 8
8

1
"+3 " 2

3-.1"1 2

.7

87 #

+1
-;
-+
8 #4
$%&%'
& (

)

+
2
+

8 #4

+
"
+
"

! -

9 #8
$%&%'
& (

)
+
7 44

+
"
3+ , -
-+,2,

9 #8

7 +
"
+
"

+ ,

4
#6
$%&%'
& (

)
+

4

+
"
-+3 , -
-+,2,

4
#6

4 +
-",+
" !"-

9
#7
$%&%'
& (

)

8 676

1 -+
"
! -"-
!
.

<:2

3 +"
=
9
#7

6
+

"

;
, ;+-
98
#
6 $%&%'
& (

)

4 8

+>2,+
"
-"
3
+
6 #

4 6 8

+>2,+
"
-"
31

68#

7
8 74

+>2,+
"
-"
3 -
2"
7#

+>2,+
"

7 #

+>2,+
"3

1+.+-

6 #

+>2,+
"

8 #6

6
+>2!
?
! -,
"

*

#8
$%&%'
& (
)

!"#$%&'(

)*+
+*

*

", -

$
.-/# "

.#
0 1 !"#

2 3
*

+* 3

4 5
3

!"#$%&'(

*
*

5 6

7
", -

$
.-/# "

.#
0 1 !"#

5 6

66
7

!"#$%&'(
+
4*3 *

6*+
6 *7
*

7
", -

$
.-/# "

.#
0 1 !"#

33
4

683
7

33
6*3

+*

6*4*+

33

3 *
7

33
6*3

)3)
7

33

3 *
7

!"#$%&'(

", -

$
.-/# "

.#
0 1 !"#

9
)
*

!"#$%&'(
+4
*

7
", -

$
.-/# "

.#
0 1 !"#
2

**
)
2:
;*
<4
+4 =

2

*6)
58

4 5

<4
+4
=
7
*
3

*+

<4
+4
7

!"#$%&'(
+
*+

", -

$
.-/# "

.#
0 1 !"#
3
4

2+38

3 6*

6

!"#$%&'(

4

2
", -

$
.-/# "

.#
0 1 !"#
*
)3

)
*

!"#$%&'(
4 3)

7
", -

$
.-/# "

.#
0 1 !"#
*

7
*

!"#$%&'(

4

*

", -

$
.-/# "

.#
0 1 !"#

!"#$%&'()*+

,-
". /

&#
$
0/1# "

0# 2 3 !"#
-

-
*

4
,-

!"#$%&'()

%

,
". /

&#
$
0/1# "

0# 2
3 !"#

56

!"#$%&'()
*

,
". /

&#
$
0/1# "

0# 2
3 !"#

8
!"#$%&'() 9
% *

,8
". /

&#
$
0/1# "

0# 2
3 !"#
*8

9
%
4

59
4
8

,
*89

9
%
4

*:
5 :
8

!"#$%&'()
*

,
". /

&#
$
0/1# "

0# 2
3 !"#

*
;

<*
%

8
*
;
*
%

-
!"#$%&'()
4 *% 49
4% *+,

". /

&#
$
0/1# "

0# 2
3 !"#

%
5 4 9 :

!"#$%&'():9

*4

,*
,8
". /

&#
$
0/1# "

0# 2
3 !"#
+
8

**

4

8 +
8

%*
+

5

,
-

!"#$%&'()*
*% $
8,

". /

&#
$
0/1# "

0# 2
3 !"#

4

5
4

%

9*
8,

!"#$%&'()

9 +
5

". /

&#
$
0/1# "

0# 2
3 !"#

-

!"#$%&'()
5

*
+
4%,
*
,8
". /

&#
$
0/1# "

0# 2
3 !"#

%*

+%
=

,8

!"#$%&'()*

". /

&#
$
0/1# "

0# 2
3 !"#

!"#$%&'()*+ % 5 +
% +

8
". /

&#
$
0/1# "

0# 2 3 !"#

!"#$%&'(

)

*

+,

!-.
%"#
/.0"!

/" 1
2 !"
3+4
*5

*

3
,+
3
4
*5

*

+3
,
34
*5

*

3
,

!"#$%&'(

*

,+
!-.
%"#
/.0"!

/" 1

2 !"

+
3
6$5467
5

$

,+

+
3
6$5467
5

$

,

!"#$%&'(56

4
)
,+
!-.
%"#
/.0"!

/" 1

2 !"
5
8

,+

!"#$%&'(96

,+

!-.
%"#
/.0"!

/" 1

2 !"

396

6

3
,+

!"#$%&'( 4

65
4
$

),

!-.
%"#
/.0"!

/" 1

2 !"

++ 46*5
4

!"#$%&'(5

: 5
,6$
+
!-.
%"#
/.0"!

/" 1

2 !"

;
3 85
+

!"#$%&'($5
,

!-.
%"#
/.0"!

/" 1

2 !"
+
$5

<+

+ $5

<
+
,+

!"#$%&'(

)
,
!-.
%"#
/.0"!

/" 1

2 !"
46
*3

$6)
6
5

:

*
$

5
3

4

3

4 $

5

,

!"#$%&'(
$6

,+
!-.
%"#
/.0"!

/" 1

2 !"

5$ 6
3
,+

!"#$%&'(5
7

6
5

+
!-.
%"#
/.0"!

/" 1

2 !"

5 $
6
7
$

= 3 >
+

!"#$%&'( 8
*)

:54

$

)
,

!-.
%"#
/.0"!

/" 1
2 !"

3

!"#$%&'()

)*
)
* +
,

-
.# !/.0

/ 1

2 )3

++4
'"(

!"#$%& 5

4 )

-
.# !/.0

/ 1

'
+
3 6

!"#$%& 5"(
)3

)+)7
)*

(
)

-
.# !/.0

/ 1

2

+()"
6

+5

)"
)
3'

(8'

!"#$%&

)
*

9

-
.# !/.0

/ 1

2
(
(6 ,(

:
*()

!"#$%&"
(++
64()
3
6

-
.# !/.0

/ 1

"

+
64() ("
6
5)"

6

+4( "

(4
)

"
8++8+7
++)8

!"#$%&

)'

)

)
;
'<

-
.# !/.0

/ 1

2

8
'
35
)'

4635)'+;5
,+

9<"
=

!"#$%& >(
)*
(
)

-
.# !/.0

/ 1

2 "?

"

8"?

?

"

8
?

)
3?

"

8)
3?

!"#$%&8596
++
)
8+)

3)

-
.# !/.0

/ 1

2 *

5 9

+")

)6
+

*

!"#$%&
)
)(6)8
3)
;
'<

-
.# !/.0

/ 1

2

)(6)8*

+
5 ,36
8"
="
)8

"@4

()"
, 46
#&!A/#! .
!A
B

!AB

*!A B

!"
#
$
%&'( )*
+,-. /01.2345.678369.:0,.204. ;<+=0>?@A983>1
+60>B91C8>
A483>1
=0>?A983>1DEFGHIE J KLMNOFEP IQR
JSTUV WXYZ [\W[]^EU_`abcFdefgTEI RhEO KJiENROQJ
W^jkZl^[
iam_nUTodbToTcUpnqb_aJSTUVO_pbJ rT
Es_`ab
MGXZWXYW [\tRJP QiMuYKtuEMiJOKMOLQNEM vwtKLuwWYxX\y
W^jkZl^[
JSTUV WXYZ [\W[]]EU_`abcFdefgTEitRzJwEMuRiMJ
W\[lxW
iam_nUTodbToTcUpnqb_aJSTUVO_pbJ rT
Es_`ab
]W{[xXX[]YW X[\|itRONE iKMX]FQP}K~RMN]YW X\
W\[lxW
JSTUV WXYZ [\W[W[EU_`abcFdefgTEituEOL EjQJ
x\lX
iam_nUTodbToTcUpnqb_aJSTUVO_pbJ rT
Es_`ab
]WZ\^kx^WWY[kX \|QR NKKQGtEo{Z[\ ^
x\lX
JSTUV WXYZ [\W[WWEU_`abcFdefgTEQE}RoEJKLMNPENRtoiONtJ XjZ lx]
iam_nUTodbToTcUpnqb_aJSTUVO_pbJ rT
Es_`ab
[]\GW X\WXY[W \EJowPotEMN[]Y\GWY\[X
XjZ lx]
JSTUV WXYZ [\W[WXEU_`abcFdefgTEQJiNP}EMEuR}RMNORt~iJROjiMJl ^jX\lW
iam_nUTodbToTcUpnqb_aJSTUVO_pbJ rT
Es_`ab
^ XZWWY[ X \OJwKKQJtKOOiMuuLEtoO~J W[YxG[YX^ \
^jX\lW
JSTUV WXYZ [\W[W\EU_`abcFdefgT uiME oRtOKM
WkxlZ\
iam_nUTodbToTcUpnqb_aJSTUVO_pbJ rT
Es_`ab
W[\G[kX\RzFWXY[x \iEJFRz tRi}ILtOR}RMNW[Y\G[YkX\
WkxlZ\
JSTUV WXYZ [\W[WZEU_`abcFdefgTIEiQRP| MJ K}FEMPiJ
XjZ[l
iam_nUTodbToTcUpnqb_aJSTUVO_pbJ rT
Es_`ab
^x[[[]YW X[\IKQQEtoiMONEQ NiKM]YW X\
XjZ[l
JSTUV WXYZ [\W[WxEU_`abcFdefgTIEN RtPO NR}OiMJ
^Zl{\
iam_nUTodbToTcUpnqb_aJSTUVO_pbJ rT
Es_`ab
X^{]W kX\[xXWWYX [\IEN RtiO
X^lW
\xWX [^kWWYX [\IEN RtiO
x{lZX
JSTUV WXYZ [\W[W{EU_`abcFdefgTRt }PIRJ
Wj^\{l
iam_nUTodbToTcUpnqb_aJSTUVO_pbJ rTEs_`abW[{G [X\RzFWWYXk [\JQREtOR}iMEtWY[{G Y[X\ Wj^\{l
JSTUVWXYWZ [\W[WkEU_`abcFdefgTEFtKQJ
]xl[

!"

# $

% &'()
*
* +)
+ $"!

, ,

)
*-. /- *
0 "
,#$0
0
,
)
*-. /- *
! "!

#

% &'(1)
2
3-%+
#"!

0#
%
34* 35)*
1*
5
/
3-23/3.*
+
#"!

#

% &'()6*3-5/7543
6/35
/*53)327*%
/6*5/
!+0"

,

* 4* 3/3.*

+0"!
0 !$

* 4* 8-)7
+#"!

#

% &'(4* 9
!",

$ !,
# %: 2**)1
7
!
0"$
$ $ #
%: 2**)1
7
$
0"$

#

% &'(43)2*
2 %+5
+,"

0$!
%3/
43

5/*
2-*
+,"

#

% &'(%*/
4352
+, "

$ *9%
,
635*9% 5

6.-
*6*5/
$

+, "

# #

% &'( 2
52*

+,$ "

$,!$
, %-.
3 :
/
"#,
$, !,
, *
1* 5/

1*)355*/3

$"!,
$0 ,#
0 .
2
31*%
:3/
3)
*/
336
*%

!"#
$ ,!
$ *
1* 5/
%-.-/ 35)3:
$0"#
#$#
*
1* 5/
%-.-/ 35)3:
0!"

# !

% &'( 2
* 5)37 /*6
+# "

#!

/*
:52"363/52;635/)765/

#
+# "

# ,

% &'(/*/ /
*4/3
7 #+,"

$0
/*/
4/3
7) * 43
$
0

#+,"

# 0

% &'(5% -/3%
/
$0"

531<
5% 4)* /-% )*531*6.

$0"

# $

% &'(:53

7 /*65/*
5/35)
+ ,"!

!" #$%&' (%

)
*

++
!"(,, '%&'+

-*+

+
!". /'%$ /'!% (%

-) *

( 012 *"3%/4 ,"

*

"&+

%,(,35'

*

( 012 '6 %/ $75/!,%'
-
*

)

(%,.' ," '%&'% " % /5%,385,/,6'%-
-
*

( 012 !"3' . %" '#,"/%3/,"
)-*

!" '"5%"("'

-
*

+

!"(,, (%'( '!'"/

-)*

( 012 !9'$,%9"&'/8 ,"

-)*

:
698%,3"&'/8 ,"

:

-)+*
:)
698%,3"&'/8 ,"
:

-)*
:

698%,3"&'/8 ,"
+:

*
:

698%,3"&'/8 ,"
:

-*

( 012 ! ," "' 3( $:3".,%!
-) *

",&;
3".,%!
!/",&'!6 %
-) *

( 012 ,7'"'<3(!'"/,!("$

+-)*

+

&/,%(3%5'

+-)*

)

( 012 !,%8"(' % "

'=(
!/'% /,',%/' '(/*5%/!7%'/5

( 012('%.,%!"'( /!"8'!'"/
-)*

+
)
('/'%&':/$5 >

+)*
+

('/'%&':(>

*
+

('/'%&': 6% $>
)

+)*
+)
('/'%&':/$5 >

+*
+
('/'%&': '%&' "/ %>+

)*
+
('/'%&':&, 6 $/5'>+

*
+)
('/'%&':.%'/ ,">+

*
+

('/'%&': !">+

-*

+

( 012/*'7%5,,
)- *

!"

#!$%&'()*+, --.

#
/
&0$1! )' (!213'$& !"
$2' 4 5$%&'

-
6/

-7
-

#
/
!"

!$%&'()*+,

6#
&0$1! )' (!213'$& !"
$2' 4
5$%&'

/

/

-

6
#

/

-

#
6

!"

!$%&'()*+,

9

#

&0$1! )' (!213'$& !"
$2' 4
5$%&'
/##
6
9
-

:/

!"

!$%&'()*+, 9-

&0$1! )' (!213'$& !"
$2' 4
5$%&'

#
#

;

#

!"

!$%&'()*+, <

&0$1! )' (!213'$& !"
$2' 4
5$%&'

=

-

9

!"

!$%&'()*+, 9

&0$1! )' (!213'$& !"
$2' 4
5$%&'

;

;>
/

!"

!$%&'()*+,

6

6
&0$1! )' (!213'$& !"
$2' 4
5$%&'

;

6

6
!"

!$%&'()*+,

9

/

&0$1! )' (!213'$& !"
$2' 4
5$%&'

/

?9
9-
$'),(@2)&(!'1$&(@#
A#

6#
/
!"(@#A#

6#
/
Item D. 2.

DATE 01/11/2024
TO Honorable Mayor and City Council Members
FROM Kathy Slafter, Deputy City Clerk
SUBJECT Approval of December 14, 2023 minutes
Attachments
Minutes
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

Minutes
Thursday, December 14, 2023

A. ROLL CALL
Mayor Hannon called the meeting to order at 7:04 p.m. Vice Mayor Collazo, Council Members Bucci, Freitas, and Jorgens were present.

Mayor Hannon shared the unfortunate news that Street Maintenance Worker Luis Bailon unexpectedly passed away on November 16, 2023, and asked for a moment of silence in his memory.

B. PRESENTATIONS

1. Commending Beverly Ryans on her retirement
Mayor Hannon presented Administrative Support Specialist II Beverly Ryans with a commendation on her retirement after 21 years of service.

2. Introduction of employee(s)
Mayor Hannon introduced new police officers Michael Orozco, Taryn Stevenson, Christian Lara, and Vincent Townsend.

3. Commending the Lee family
Mayor Hannon presented the Lee family, owners of The Jade Palace restaurant, with a commendation for their retirement after 54 years of business in Newark.

Page No. 2
City of Newark City Council Minutes December 14, 2023

4. Adopt a resolution confirming the Mayor’s appointment to the Planning Commission and administration of the Oath of Office
Mayor Hannon appointed Julie Del Catancio to serve on the Planning Commission.

No one requested to speak.

Council Member Bucci moved, Council Member Freitas seconded, to approve a resolution confirming the appointment of Julie Del Catancio to the Planning Commission, and that reading of the title suffices for adoption. The motion passed, 5 AYES.

RESOLUTION NO. 11591
The Oath of Office was administered.

C. PUBLIC COMMENT
Caroline Harris, Tri City Ecology Center; Jasper Jackson, Newark resident; and Liz Ames, Tri City Ecology Center and BART Director, spoke in opposition to the Mowry Village Project.

D. CONSENT CALENDAR

Council Member Bucci requested the removal of Item D.15, Vice Mayor Collazo requested the removal of Item D.12, and Mayor Hannon requested the removal of D.9.

Vice Mayor Collazo moved, Council Member Jorgens seconded, to approve Consent Calendar Items D.1 through D.15, excluding D.9, D.12 and D.15, that the resolutions be numbered consecutively, and that reading of the titles suffice for adoption. The motion passed, 5 AYES.

1. Approval of Audited Demands

2. Approval of November 9, 2023, minutes

3. Motion approving the 2024 Local Appointments List and distribution

4. Adopt a resolution authorizing the City Manager to execute a Contractual Services Agreement with MNS Engineers, Inc., for Construction Management Services for Central Avenue Overpass, Project 1014 and approving an amendment to the 2022-2024 Biennial Budget and Capital Improvement Plan for Fiscal Year 2024 RESOLUTION NO. 11592
CONTRACT NO. C23089
Page No. 3
City of Newark City Council Minutes December 14, 2023

5. Adopt a resolution to approve an agreement with Forensic Logic LLC, a SoundThinking Company for CrimeTracer software, and approve an amendment to the 2022-2024 Biennial budget and Capital Improvement Plan for Fiscal Year 2024 RESOLUTION NO. 11593
CONTRACT NO. C23090

6. Adopt a resolution approving the Second Amendment to the Contractual Services Agreement with ClientFirst Consulting Group, LLC for technology consulting services RESOLUTION NO. 11594
CONTRACT NO. C22012

7. Adopt a resolution approving Amendment No. 2 to the Contractual Services Agreement with West Coast Arborists, Inc. for tree maintenance services RESOLUTION NO. 11595
CONTRACT NO. C19016

8. Adopt a resolution approving a side letter agreement to the Memorandum of Understanding between the City of Newark and the Newark Police Management Association to provide for compensation to Police Lieutenants for certain overtime work associated with the Selective Traffic Enforcement Program grant RESOLUTION NO. 11596

9. Pulled - Adopt a resolution to accept the Annual and Five-Year Mitigation Fee Report for fiscal year ended June 30, 2,023, and approve findings for each development impact fee that the City of Newark imposes on development projects

10. Adopt a resolution approving a side letter with the Newark Police Association to provide temporary benefits relating to the temporary critical staffing schedule; and approve an amendment to the 2022-2024 Biennial Budget and Capital Improvement Plan RESOLUTION NO. 11597
CONTRACT NO.

11. Adopt a resolution authorizing the deletion of one full-time equivalent Lead Public Safety Dispatcher and the addition of one full-time equivalent Public Safety Dispatch Supervisor to the 2022-2024 Biennial Budget and Capital Improvement Plan for Fiscal Year 2024; amending Resolution No. 2505, Employee Classification Plan to include the Public Safety Dispatch Supervisor classification; approving a Side Letter with the Newark Police Association (NPA) to add the classification of Public Safety Dispatch Supervisor and assign salary steps; and approve an amendment to the City’s salary schedule in conformance with California Code of Regulations, Title 2, Section 570.5 RESOLUTION NO. 11598
Page No. 4
City of Newark City Council Minutes December 14, 2023

12. Pulled - Adopt a resolution approving a Contractual Services Agreement with ICS Integrated Communication Systems for audio/video equipment and services and approving an amendment to the 2022-2024 Biennial Budget and Capital Improvement Plan

13. Adopt a resolution authorizing the purchase of two dump trucks for the Public Works Department Maintenance Division directly from an auto dealership and amending the 2022-2024 Biennial Budget and Capital Improvement Plan for Fiscal Year 2024 RESOLUTION NO. 11599

14. Adopt a resolution authorizing the City Manager to execute the second amendment to the Contractual Services Agreements with Community Planning Collaborative and authorizing amendment of the 2022-2024 Biennial Budget and Capital Improvement Plan for Fiscal Year 2024 to provide funding for consultant services related to the 2023-2031 Housing Element
RESOLUTION NO. 11600
CONTRACT NO. C22011

15. Pulled – Adopt a resolution approving reappointment of Eric Hentschke to the Alameda County Mosquito Abatement District

NON CONSENT

15. Adopt a resolution approving reappointment of Eric Hentschke to the Alameda County Mosquito Abatement District
No one from the public requested to speak.

Council Member Bucci stated that Eric Hentschke has done an outstanding job for the City of Newark and thanked him for his service.

Council Member Bucci moved, Mayor Hannon seconded, to adopt a resolution approving reappointment of Eric Hentschke to the Alameda County Mosquito Abatement District, and that reading of the title suffices for adoption. The motion passed, 5 AYES.

RESOLUTION NO. 11601

12. Adopt a resolution approving a Contractual Services Agreement with ICS Integrated Communication Systems for audio/video equipment and services and approving an amendment to the 2022-2024 Biennial Budget and Capital Improvement Plan Page No. 5
City of Newark City Council Minutes December 14, 2023
Vice Mayor Collazo stated that she hoped the updated AV equipment would resolve the sound system issues in the Council Chambers.

No one from the public requested to speak.

Vice Mayor Collazo moved, Council Member Freitas seconded to adopt the resolution approving a Contractual Services Agreement with ICS Integrated Communication Systems for audio/video equipment and services and approving an amendment to the 2022-2024 Biennial Budget and Capital Improvement Plan and that reading of the title suffices for adoption. The motion passed, 5 AYES.

RESOLUTION NO. 11602
CONTRACT NO. C23091

9. Adopt a resolution to accept the Annual and Five-Year Mitigation Fee Report for fiscal year ended June 30, 2,023, and approve findings for each development impact fee that the City of Newark imposes on development projects
Mayor Hannon complimented City staff on their reporting of dispersion of funds in compliance with state law.

No one from the public requested to speak.

Vice Mayor Collazo moved, Council Member Bucci seconded, to adopt a resolution to accept the Annual and Five-Year Mitigation Fee Report for fiscal year ended June 30, 2023, and approve findings for each development impact fee that the City of Newark imposes on development projects and that reading of the title suffices for adoption.

The motion passed, 5 AYES.

RESOLUTION NO. 11603

E. PUBLIC HEARINGS

1. Public Hearing to consider introducing an ordinance adding Chapter 17.15 to the Newark Municipal Code to establish the By Right Housing (-BRH) Overlay District, amending the Newark Zoning Map by applying the -BRH Overlay District to specific parcels, and making related miscellaneous amendments to Title 17, Zoning, of the Newark Municipal Code

INTRODUCTION OF ORDINANCE

Vice Mayor Collazo stated she would need to recuse herself due to real property, business interests, and source of income in Mexico Tortilla Factory at 7015 Thornton Avenue and rental properties at 7155, 7167, 7179 Thornton Avenue and 36805 Magnolia Street.

Vice Mayor Collazo exited the City Council Chambers.

Page No. 6
City of Newark City Council Minutes December 14, 2023
Council Member Freitas stated he would need to recuse himself due to real property/business interests in 37220 Magnolia Street.

Council Member Freitas exited the City Council Chambers.

City Manager Benoun stated that after the agenda was posted the need for some last-minute additions came to staff’s attention. The City Council received a memo prior to the meeting outlining these additions, and Community Development Director Turner would include them in his presentation.

Community Development Director Turner gave the staff report and Planning Commission’s recommendation for the By Right Housing Overlay District and Parcel Rezoning which included an overview of the Housing Element, “By-Right” Housing Requirements, sites proposed for rezoning, zoning ordinance amendments, Findings/Notice/Environmental Review.

In response to Mayor Hannon’s question, Community Development Director Turner stated that next year staff would be bringing forth another project to look into an inclusionary housing requirement. At that time the City Council could consider additional percentages of affordable housing requirements or their affordability levels.

Mayor Hannon requested that staff remind the City Council they may want to revisit the ratios.

Mayor Hannon opened the public hearing at 7:48 pm. There was no public comment.

Mayor Hannon closed the public hearing at 7:48 pm.

Council Member Bucci moved, Council Member Jorgens seconded, to introduce an ordinance adding Chapter 17.15 to the Newark Municipal Code to establish the By Right Housing (-BRH) Overlay District, amending the Newark Zoning Map by applying the -BRH Overlay District to specific parcels, and making related miscellaneous amendments to Title 17, Zoning, of the Newark Municipal Code and to amend the ordinance as follows:
1) In the proposed Chapter 17.15 revise “District” to “Zoning District” throughout the Proposed chapter, and 2) In the proposed Chapter 17.15.020, the reference to “-AH” should be revised to “-BRH”. The motion passed, 3 AYES, 2 RECUSED (Collazo/Freitas).

Vice Mayor Collazo and Council Member Freitas returned to the City Council Chambers.

F. OTHER BUSINESS

1. Adopt a resolution authorizing the City Manager to execute a Contractual Services Agreement, in a form approved by the City Attorney, with Ascent Environmental, Inc. for an update to the City's Climate Action Plan and amend the 2022-2024 Biennial Budget and Capital Improvement Plan
RESOLUTION NO. 11604
CONTRACT NO. C23092
Page No. 7
City of Newark City Council Minutes December 14, 2023
City Manager Benoun stated the City’s Climate Action Plan was created over 10 years ago.

Circumstances and state law have changed since then, and it is time for an update.

Environmental Services Manager Scanlin gave the staff report recommending adopting a resolution authorizing the City Manager to execute an agreement with Ascent Environmental, Inc. to assist with an update to the City’s Climate Action Plan and amend the 2022-2024 Biennial Budget and Capital Improvement Plan.

There was no public comment.

The City Council questioned if the City of Newark was behind in reaching the state targets for greenhouse gas emissions reduction to 1990 levels and commented on the impact of zoning decisions on greenhouse gas reduction, sea level rise, and possibly transitioning over to renewable energy for commercial and industrial use.

Vice Mayor Collazo moved, Council Member Jorgens seconded, to adopt a resolution authorizing the City Manager to execute a Contractual Services Agreement with Ascent Environmental, Inc. for an update to the City’s Climate Action Plan and amend the 2022- 2024 Biennial Budget and Capital Improvement Plan and that reading of the title suffices for adoption. The motion passed, 5 AYES.

2. Adopt a resolution to approve an exception to the 180-Day waiting period for post-retirement employment and approve an employment agreement with Gina Anderson to serve as Interim Police Chief pursuant to Government Code sections 7522.56 and 21221(h)
RESOLUTION NO. 11605
City Manager Benoun gave the staff report. After the agenda was posted CalPERS requested certain amendments be made to the resolution. The City Council received a memo before the meeting explaining that CalPERS requested that the proposed resolution include two additional items: 1) The start date for Chief Anderson to serve as the Newark Police Chief to be December 30, 2023, and 2) The end date for the interim appointment to be July 19, 2024, in case the recruitment went longer than anticipated.

There was no public comment.

Council Member Freitas moved, Council Member Bucci seconded, to adopt a resolution to approve an exception to the 180-Day waiting period for post-retirement employment and approve an employment agreement with Gina Anderson to serve as Interim Police Chief pursuant to Government Code sections 7522.56 and 21221(h), to amend the resolution to include the start date for Chief Anderson to serve as the Newark Police Chief to be December 30, 2023, and the end date for the interim appointment to be July 19, 2024, and that reading of the title suffices for adoption. The motion passed, 5 AYES.

Page No. 8
City of Newark City Council Minutes December 14, 2023
G. CITY COUNCIL MATTERS

1. Approval of motion appointing Vice Mayor and resolution authorizing the Vice Mayor to execute financial documents
RESOLUTION NO. 11606
Mayor Hannon announced the appointment of Council Member Freitas as vice mayor.

Council Member Freitas accepted the appointment.

Council Member Bucci moved, Vice Mayor Collazo seconded, to approve the motion appointing the Vice Mayor and the resolution authorizing the Vice Mayor to execute financial documents and that reading of the title suffices for adoption. The motion passed, 5 AYES.

2. Adopt a resolution confirming the Mayor's appointments to various agencies, boards, commissions, and committees
RESOLUTION NO. 11607
None of the City Council Members requested changes the assignments.

Council Member Collazo moved, Council Member Bucci seconded, to approve the resolution confirming the Mayor’s appointments to various agencies, boards, commissions, and committees and that reading of the title suffices for adoption. The motion passed, 5 AYES.

Council Member Bucci thanked Recreation staff for another great tree-lighting event. He congratulated City Attorney Kokotaylo on the birth of his daughter and wished everyone happy holidays.

Council Member Collazo stated that she enjoyed serving as vice mayor this past year. She mentioned the recent library report and congratulated Newark Library Branch Manager Joe Stoner for the various projects and activities he provides for children. She wished everyone happy holidays and a very prosperous, happy, and healthy new year. Shop Newark!. Stay safe, and Feliz Navidad!
Council Member Jorgens also thanked Recreation staff. The tree lighting was fantastic and a terrific way to start the holiday season. He wished everyone happy holidays and encouraged all that are able to find opportunities to give back to the community during the holiday season.

Vice Mayor Freitas also thanked Recreation staff. He wished Beverly Ryans and Police Chief Anderson a happy retirement. He thanked Eric Hentschke for his service and is looking forward to working with him during his next term. Vice Mayor Freitas commented that the recent library report was very impressive and praised Library Branch Manager Joe Stoner.

He wished the City Council and their families, City staff and the community happy and safe holidays.

Page No. 9
City of Newark City Council Minutes December 14, 2023
Mayor Hannon stated that he would adjourn the meeting in honor of former Luis Bailon; Fremont Mayor Gus Morrison; long-time Newark resident Camilla Chinn; CERT volunteer Bob Hastings; and long-time resident Richard Durand.

Vice Mayor Freitas congratulated Mayor Hannon on his choice for planning commissioner.

Council Members expressed their condolences to the families.

Mayor Hannon thanked City Manager Benoun a nd City staff for the successful tree-lighting event. He thanked Chief Anderson and the Police Department for their service to. He wished everyone a safe, happy, and healthy holiday season and a happy new year.

H. CITY MANAGER UPDATES
City Manager Benoun thanked the City Council for their positive comments on the Tree Lighting event and would convey them to staff.

The Newark Police Department is hosting a toy drive to benefit children and families of CALICO (Child Abuse Listening Interviewing and Coordination Center) and SAVE (Safe Alternatives to Violent Environments).

The Alameda County Fire Department is also hosting a holiday toy drive on December 16.

Mayor Hannon stated that the Newark Symphonic Winds will be doing their annual Christmas show at Newark Memorial High School on December 16.

The Newark Memorial High School band choir will have their Christmas concert Friday, December 15 at the high school.

Mayor Hannon encouraged support of these local events.

I. CLOSED SESSION
J. ADJOURNMENT
Mayor Hannon adjourned the meeting at 8:40 p.m. in memory of Gus Morrison, Camilla Chinn, Bob Hastings, Luis Bailon, and Richard Durand.

Item D. 3.

DATE 01/11/2024
TO Honorable Mayor and City Council Members
FROM Michelle Villanueva, Senior Accountant
SUBJECT Acceptance of the Annual Comprehensive Financial Report (ACFR) for the period ended June 30, 2023
SUMMARY AND RECOMMENDATION
Staff recommends that the City Council, by motion, accept the Annual Comprehensive Financial Report (ACFR) for the period ended June 30, 2023.

BACKGROUND
As part of the year-end closing process, staff presents the audited ACFR for the fiscal year ended June 30, 2023. This report's financial statements provide information on the City's year-end financial condition and operational results for FY 2023. 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). The two government-wide financial statements provide a broad view of the City's financial position and activities in a manner similar to private sector business reporting. The Statement of Net Position provides information regarding the City's financial position, including all assets and liabilities, and the Statement of Activities provides information regarding the City's revenues and expenses. In the Transmittal Letter and Management Discussion and Analysis, a narrative overview and analysis of the City's financial activities and performance during the fiscal year is provided.

Following the close of each fiscal year, the City's external auditors conduct an audit of the City's financial records. The objective of general purpose 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, 2023, 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 fifth 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, 2022. To be the City of Newark for its ACFR for the fiscal year ended June 30, 2022. 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. Staff believes that our current ACFR for the fiscal year ended June 30, 2023, continues to meet the Certificate of Achievement for Excellence in Financial Reporting Program's requirements, and was submitted to GFOA to determine its eligibility for another award this reporting period.

DISCUSSION/ANALYSIS
Financial Highlights for FY 2023
Government-wide:
• At June 30, 2023, the assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources by $247.0 million (net position). This is an increase of $17.4 million from the prior fiscal year. Of this amount, $101.6 million is restricted, and ($12.1) million represents unrestricted net position. • Government-wide revenues include program revenues of $18.5 million and general revenues of $75.2 million, an increase of $0.2 million total revenues from the prior fiscal year.
• Government-wide expenses totaled $76.3 million, an increase of $15.0 million from the prior year's total of $61.3 million.

Governmental Funds:
•    At the close of fiscal year 2023, the City's governmental funds reported combined fund balances of $167.1 million, an increase of $18.5 million in comparison with the prior fiscal year.
•    Governmental Fund revenues were $93.7 million in fiscal year 2023, which was a $2.3 million increase compared to fiscal year 2022.
•    Governmental Fund expenditures were $75.9 million in fiscal year 2023, a decrease of $2.0 million compared to fiscal year 2022.
•    Approximately 19.0% of the fund balance ($31.7 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 ($0.2 million), 2) restricted for specific purposes ($88.9 million), 3) committed for specific purposes ($12.4 million), or 4) assigned for specific purposes ($33.9 million).

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 FY23
Memo ACFR Update
City of Newark
Newark, California
Annual Comprehensive Financial Report
For the year ended June 30, 2023
Prepared by:

Finance Department
Krysten Lee
Finance Director

City of Newark
Table of Contents
Page
Introductory Section
Table of Contents.............................................................................................................................................................. i Letter of Transmittal........................................................................................................................................................ v Organization Chart.......................................................................................................................................................... xi Newark Mayor and City Council ................................................................................................................................... xiii List of City Officials........................................................................................................................................................ xiv Map of City’s Location ................................................................................................................................................... xv Certificate of Achievement for Excellence in Financial Reporting - Government Finance Officers Association............................................................................................................. xvi Financial Section
Independent Auditors’ Report........................................................................................................................................ 1 Management’s Discussion and Analysis......................................................................................................................... 5 Basic Financial Statements:

Government-Wide 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 ................................................................................................................................ 26 Statement of Activities ..................................................................................................................................... 27 Statement of Cash Flows.................................................................................................................................. 28 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position.................................................................................................................29 Statement of Changes in Fiduciary Net Position .............................................................................................. 30 Notes to Basic Financial Statements....................................................................................................................... 31 i
Page
Financial Section, Continued
Required Supplementary Information:

Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual General Fund .................................................................................................................................................... 66 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual American Rescue Plan ACT (ARPA) .................................................................................................................. 67 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual Public Safety Impact Fees Fund ........................................................................................................................ 68 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual Community Service Impact Fees Fund ............................................................................................................. 69 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual Traffic Impact Fees Fund...................................................................................................................................70 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual Housing Impact Fees Fund................................................................................................................................ 71 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual Development Maintenance Impact Fees .........................................................................................................72 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual Park Impact Fees Fund......................................................................................................................................73 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual Measure B 1986 ACTIA ..................................................................................................................................... 74 Notes to Required Supplementary Information ..................................................................................................... 75

Defined Benefit Pension Plan:

Schedule of Changes in Net Pension Liability and Related Ratios – Agent Multiple Employer Plan .......................................................................................................................... 76 Schedule of Plan Contributions - Agent Multiple Employer Plan ..................................................................... 77 Schedule of Proportionate Share of the Net Pension Liability – Cost Sharing Plan .............................................................................................................................................. 78 Schedule of Plan Contributions – Cost Sharing Plan......................................................................................... 79 Other Post Employment Benefit Plan:

Schedule of Changes in Net OPEB Liability and Related Ratios ........................................................................80 Schedule of OPEB Contributions.......................................................................................................................81 ii
Page
Supplementary Information:

Non-Major Governmental Funds:

Combining Balance Sheet................................................................................................................................. 86 Combining Statement of Revenues, Expenditures
and Changes in Fund Balances...................................................................................................................90 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:

Paramedic Tax Special Revenue Fund .............................................................................................................. 94 Alameda County EMS Grant (FRALS) ............................................................................................................... 95 Police Grants Fund............................................................................................................................................ 96 Community Development Act (HCD) Fund....................................................................................................... 97 Measure D – Waste Management Fund........................................................................................................... 98 Gas Tax ............................................................................................................................................................. 99 Miscellaneous State Grants ………………………………………………………………………………………………………………………100 Measure B (ACTC) Local Streets and Road Fund……………………………………………………………………………………… . 101 Measure BB (ACTC) Local Streets and Road Fund ................................................................................... …....102 Measure F (VRF) ACTC Fund ...........................................................................................................................103 SB1 RMRA – Road Maintenance and Repair Fund..........................................................................................104 Hazardous Materials Program Fund...............................................................................................................105 State Senate Bills Fund ...................................................................................................................................106 Auto Break-in Prevention (AB74) Fund ..........................................................................................................107 State Construction Maintenance Fund...........................................................................................................108 PEG Fees Fund ................................................................................................................................................109

Internal Service Funds:

Combining Statement of Net Position............................................................................................................ 112 Combining Statement of Activities.................................................................................................................114 Combining Statement of Cash Flows.............................................................................................................. 116 Statistical Section
Net Position by Component......................................................................................................................................... 120 Changes in Net Position............................................................................................................................................... 121 Fund Balances of Governmental Funds....................................................................................................................... 122 Changes in Fund Balances of Governmental Funds..................................................................................................... 123 Assessed Value and Estimated Actual Value of Taxable Property............................................................................... 124 Property Tax Rates....................................................................................................................................................... 125 Principal Property Taxpayers....................................................................................................................................... 126 Property Tax Levies and Collections............................................................................................................................ 127 Taxable Sales by Category ........................................................................................................................................... 128 Ratio of Outstanding Debt by Type ............................................................................................................................. 129 Direct and Overlapping Governmental Activities Debt ............................................................................................... 130 Legal Bonded Debt Margin Information...................................................................................................................... 131 Demographic and Economic Statistics......................................................................................................................... 132 Principal Employers ..................................................................................................................................................... 133 Full-Time Equivalent City Government Employees by Function/Program .................................................................. 134 Operating Indicators by Function/Program................................................................................................................. 135 Capital Asset Statistics by Function/Program.............................................................................................................. 136 iii

City of Newark
Finance Department
37101 Newark Boulevard
Newark, CA 94560
December 15, 2023
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, 2023. 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, 2023. 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, 2023, the City’s population was estimated by the California Department of Finance at 47,459, 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 members, and hiring both the City Manager and City Attorney. The City Manager is responsible for carrying v
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 2023 remains strong. Property tax revenue, representing the general fund’s largest revenue source, increased 10.9%. The City’s total property assessment roll was $13.1 billion for fiscal year 2023, marking a 10.4% increase over the prior period, which is one of the largest increases in the County. Sales tax revenue, which is the second largest source of revenue and includes the Measure GG ½ cents sales tax, also increased from the prior fiscal year, along with other revenue categories such as transient occupancy tax, utility users tax, and most notably use of money and property which increased by $3.6 million due to positive investment earnings generated by an increase in both interest rates and cash balances.

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. 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 fiscal year 2022 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. During fiscal year 2022, $1.5 million of the ARPA funding was paid out as small business grants to 82 business who qualified for the needs-based funding. During fiscal year 2023, $1.5 million was transferred to the Housing Impact Fees Fund for affordable housing. Another $1.3 million has been allocated to the Newark Family Resource Center and Bilingual Preschool/Promotores Training and Teen Program. $1.2 million is currently designated to improve broadband for the business and residential community. The balance will go to fund recreation program scholarships, nonprofit agency grants, and other community projects. vi
The City has observed prudent spending of operating budgets and with improvements in the economy and revenue streams, 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 and closely monitor impacted revenue and maintain sufficient reserves to help mitigate the City’s budget should another recession scenario occur.

Long-Term Financial Planning and Relevant Financial Policies In June 2023, the City updated its fund balance and reserve policy based on the Government Finance Officers Association (GFOA) risk-based analysis framework. This analysis resulted in a combined minimum reserve target of 30% of final General Fund operating and debt service expenditures for fiscal stability, cash flow needs, contingencies, and strategic opportunities. The reserve, called the Emergency and Fiscal Uncertainty Reserve, is intended to help the City mitigate risks and respond to financial challenges during economic downturns, emergencies, or cyclical deficits when annual expenditures exceed revenues. As of June 30, 2023, the reserve totaled $22.2 million, which was 33.6% of final General Fund operating and debt service expenditures. 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 Capital Project Fund was established by the City to fund capital improvement projects and had an ending balance of $16.1 million at the end of fiscal year 2023. During fiscal year 2023, budgeted transfers of $9.4 million from Measure GG funds ($4.5 million) and the Public Financing Authority ($4.7 million) provided for reimbursements to the Capital Outlay fund for project expenditures related to the New Civic Center project.

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 funding transfers, in part made available by salary savings, were added to this reserve after the initial deposit, and in fiscal years 2021 and 2022, additional discretionary payments were paid to CalPERS for $10.0 million (Safety) and $5.0 million (Miscellaneous), respectively. At the close of fiscal year 2023, the pension and OPEB reserve had a balance of $12.4 million which will be used during fiscal year 2024 to fund a pension trust, another CalPERS discretionary payment, and offset future pension and OPEB required contributions.

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

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 includesthese two projects:
• Costco – in late November 2023, the new 161,000 square foot Costco retail warehouse and 32-pump retail fuel facility opened to the public.
vii
• 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.

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.

The City was recently awarded $5.1 million from the third round of the One Bay Area Grant (OBAG3) program to be used towards the Old Town Streetscape and Complete Street Improvements Project, developed with the Old Town Specific Plan. The goal of this project is to improve access, safety, and connections for pedestrians, bicyclists, and transit users, while also serving as a catalyst for private investment in buildings and uses. To receive OBAG3 funding, the City must meet certain requirements to conform with State housing laws and is currently finalizing the General Plan Housing Element 2023-2031, as discussed further below.

Planning Areas 3 and 4
This is an approximately 950-acre site located in southwest Newark and is generally bounded by Mowry Avenue on the north, Cherry Street on the east, Stevenson Boulevard on the south, and salt flats on the west.

Planned uses for this area include an 18-hole golf course, approximately 1,200 housing units of various densities, and elementary school, open space wetland mitigation areas, as well as retention of existing light industrial, institutional, and City Fire Station, park, and community center uses. viii
In addition to these 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. On April 12, 2023, the City submitted the Housing Element Update to the California Department of Housing and Community Development (HCD). The City’s Housing Element update is expected to be completed by Spring 2024, 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.
• Cedar Community Apartments Homekey Project – Homekey is a statewide program to provide housing for low-income households and those who are experiencing homelessness. 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. $1.5 million from the City’s ARPA Recovery Fund and $4.5 million from the Housing Impact Fee Fund were also added as funding for this project to convert 125 hotel suites into permanent supportive and affordable housing apartment, known as Cedar Community Apartments.
• Thornton Avenue Apartments – In June 2022, the City released a notice of funding availability for multi-family affordable housing rental projects, inviting developers of deed-restricted affordable new-construction multi-family rental housing projects in the Bay Area to apply for funding assistance. Thornton LP, submitted a proposal and was approved for the City’s provision of financial assistance to acquire three parcels of real property located at 6347, 6361, and 6375 Thornton Avenue for the construction and operation of a 57-unit affordable multi-family housing development thereon.

Budget Act of 2022 and City Allocated Funding
Under the leadership of Assemblymember Alex Lee, Assembly Bil 179 (Budget Act of 2022) included funding for City requested projects including Quite Zone safety improvements and for the Broadband Master Plan and implementation.

The allocation of $2 million towards implementation of Quiet Zones in Newark will address an item of significant concern for members of the community – namely the loud horns that emanate from train traffic throughout the night. With this funding, City staff will begin the process of designing the improvements and coordinating with the Federal Railroad Administration and California Public Utilities Commission. The allocation of $1.8 million towards the Broadband Infrastructure Project will help the City identify and address fiber option infrastructure gaps.
ix
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, 2022. 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
x
EĞǁĂƌŬ
ZĞƐŝĚĞŶƚƐ
DĂǇŽƌΘ
ŝƚǇŽƵŶĐŝů
ĚǀŝƐŽƌǇ
ŽŵŵŝƚƚĞĞƐ
ŝƚǇDĂŶĂŐĞƌ
ƐƐŝƐƚĂŶƚŝƚǇ
DĂŶĂŐĞƌ
&ŝŶĂŶĐĞ
ŝƌĞĐƚŽƌ
ŽŵŵƵŶŝƚǇ
ĞǀĞůŽƉŵĞŶƚ
ŝƌĞĐƚŽƌ
WŽůŝĐĞŚŝĞĨ ůĂŵĞĚĂŽƵŶƚǇ
&ŝƌĞ^ĞƌǀŝĐĞƐ
WĂƌŬƐΘWƵďůŝĐ
tŽƌŬƐŝƌĞĐƚŽƌ
ZĞĐƌĞĂƚŝŽŶΘ
ŽŵŵƵŶŝƚǇ
^ĞƌǀŝĐĞƐŝƌĞĐƚŽƌ
ŝƚǇ
ŽŵŵŝƐƐŝŽŶƐ
ŝƚǇůĞƌŬ
,ƵŵĂŶ
ZĞƐŽƵƌĐĞƐ
/ŶĨŽƌŵĂƚŝŽŶ
dĞĐŚŶŽůŽŐǇ
^ǇƐƚĞŵƐ
ƵĚŐĞƚΘ
ĐĐŽƵŶƚŝŶŐ
dƌĞĂƐƵƌǇΘ
Ğďƚ
ĚŵŝŶŝƐƚƌĂƚŝŽŶ
&ŝƐĐĂů
ŽŵƉůŝĂŶĐĞ
ŶŝŵĂůΘ
ƵƐŝŶĞƐƐ
>ŝĐĞŶƐĞ
WŽůŝĐĞ
ĚŵŝŶŝƐƚƌĂƚŝŽŶ
WŽůŝĐĞ
KƉĞƌĂƚŝŽŶƐ
ŽŵŵƵŶŝƚǇ
WƌĞƐĞƌǀĂƚŝŽŶ
WůĂŶŶŝŶŐ

ĐŽŶŽŵŝĐ
ĞǀĞůŽƉŵĞŶƚ
^ƵĐĐĞƐƐŽƌŐĞŶĐǇƚŽ
ƚŚĞZĞĚĞǀĞůŽƉŵĞŶƚ
ŐĞŶĐǇ
WĂƌŬƐ
DĂŝŶƚĞŶĂŶĐĞ
ƵŝůĚŝŶŐ
/ŶƐƉĞĐƚŝŽŶ

ŶŐŝŶĞĞƌŝŶŐ
'ĞŶĞƌĂů
ZĞĐƌĞĂƚŝŽŶ
^ĞƌǀŝĐĞƐ
^ĞŶŝŽƌ
^ĞƌǀŝĐĞƐ
ŽŵŵƵŶŝƚǇ
^ĞƌǀŝĐĞƐ
&ŝƌĞ
KƉĞƌĂƚŝŽŶƐ
&ŝƌĞ
WƌĞǀĞŶƚŝŽŶ
ŝƚǇƚƚŽƌŶĞǇ
xi
x

Newark Mayor & City Council
June 30, 2023
Michael K. Hannon
Mayor
Maria “Sucy” Collazo
Vice Mayor
Luis L. Freitas
Council Member
Matthew Jorgens
Council Member
Mike Bucci
Council Member
xiii

CITY STAFF
June 30, 2023

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

INFORMATION TECHNOLOGY DIRECTOR
Ed Miranda
FIRE CHIEF (ALAMEDA CO. FIRE

DEPARTMENT)
William McDonald
xiv
xv
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, 2022
Executive Director/CEO
xvi
1611 E. Fourth Street, Suite 200
Santa Ana, CA 92701
(714) 569-1000
203 N. Brea Blvd, Suite 203
Brea, CA 92821
(714) 672-0022
21 Waterway Avenue, Suite 30089
The Woodlands, TX 77380
(936) 828-4587
2151 River Plaza Dr., Suite 150
Sacramento, CA 95833
(916) 503-9691
24422 Avenida de la Carlota, Suite 275
Laguna Hills, CA 92653
(949) 829-8299
www.lslcpas.com
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the City Council
City of Newark, California
Report on the Audit of 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 the City of Newark, California (the “City”), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our 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, as of June 30, 2023, and the respective changes in financial position, and cash flows thereof, and the respective budgetary comparison for the General Fund and the major special revenue funds, as listed in the table of contents, 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 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 audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of Matter
Change in Accounting Principle
As described in Note 1 to the financial statements, in 2023, the City adopted new accounting guidance, Statement No. 96, Subscription Based Information Technology Arrangements. Our opinion is not modified with respect to this matter.

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

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

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material 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.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison schedules for the General Fund and major special revenue funds, and the required pension and other postemployment benefits schedules, as listed on the table of contents, 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. 2 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 accompanying 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 basic financial statements.

The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the 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 and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 15, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.

Sacramento, California
December 15, 2023
3 444
City of Newark
Management’s Discussion and Analysis
For the year ended June 30, 2023
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, 2023. 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, 2023, the assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources by $247.0 million (net position). This is an increase of $17.4 million from the prior fiscal year. Of this amount, $101.6 million is restricted, and ($12.1) million represents unrestricted net position.
• Government-wide revenues include program revenues of $18.5 million and general revenues of $75.2 million, an increase of $0.2 million total revenues from the prior fiscal year. • Government-wide expenses totaled $76.3 million, an increase of $15.0 million from the prior year's total of $61.3 million.

Governmental Funds:
• At the close of fiscal year 2023, the City's governmental funds reported combined fund balances of $167.1 million, an increase of $18.5 million in comparison with the prior fiscal year. • Governmental Fund revenues were $93.7 million in fiscal year 2023, which was a $2.3 million increase compared to fiscal year 2022.
• Governmental Fund expenditures were $75.9 million in fiscal year 2023, a decrease of $2.0 million compared to fiscal year 2022.
• Approximately 19.0% of the fund balance ($31.7 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 ($0.2 million), 2) restricted for specific purposes ($88.9 million), 3) committed for specific purposes ($12.4 million), or 4) assigned for specific purposes ($33.9 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.
5 City of Newark
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2023
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 32 governmental funds. The 12 major governmental funds are the General Fund, American Rescue Plan Act Fund, Public Safety Impact Fees Fund, Community Service Impact Fees Fund, Traffic Impact Fees Fund, Housing Impact Fees Fund, Development Maintenance Impact Fees Fund, Park Impact Fees Fund, Measure B 1986 ACTIA Fund, Art in Public Places 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.
6 City of Newark
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2023
Proprietary funds of the City consist of the internal service funds. The internal service funds are used to accumulate and allocate costs internally among the City's various functions. The City uses internal service funds to account for its Equipment Replacement, Equipment Operations, Office Support, Building Maintenance, Public Liability 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, Traffic Impact Fees Fund, Housing Impact Fees Fund, Development Maintenance Impact Fees Fund, Park 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, 2023 and 2022.
7 City of Newark
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2023
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 $247.0 million (net position), which was an increase of $17.4 million from the prior fiscal 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, vehicles, leases and subscription-based information technology arrangements), 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, $101.6 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 ($12.1) million represents the unrestricted net position, which, if this was a positive amount, may be used to finance daily operations without constraints established by debt covenants or other legal requirements.

Assets: 2023 2022
Cash and investments $178.8 $158.7
Capital assets, net 226.6 229.1
Other assets 19.5 16.0
Total assets 424.9 403.8
Deferred outflow of resources 40.9 27.0
Liabilities:

Long-term liabilities 182.3 144.6
Other liabilities 22.6 18.6
Total liabilities 204.9 163.2
Deferred inflow of resources 14.0 38.0
Net Position:

Net investment in capital assets 157.5 157.5
Restricted 101.6 88.3
Unrestricted (12.1) (16.2)
Total net position $247.0 $229.6
Governmental Activities
Comparative Statements of Net Position
June 30, 2023 and 2022
(Amounts in Millions)
8 City of Newark
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2023
The following table shows the condensed comparative Statements of Activities for the fiscal years ended June 30, 2023 and 2022.

Revenues: 2023 2022
Program revenues:

Charges for services $ 9.8 $ 17.1
Operating grants and contributions 4.1 4.2
Capital grants and contributions 4.6 6.4
Total program revenus 18.5 27.7
General revenues:

Taxes:

Property tax 28.6 25.8
Sales tax 25.5 23.7
Transient occupancy tax 4.9 4.2
Franchise fees 4.7 4.7
Utility users tax 4.2 3.7
Other local taxes 2.7 2.8
Use of money and property 3.6 -
Miscellaneous 1.0 0.9
Total general revenues 75.2 65.8
Total revenues 93.7 93.5
Expenses:

General government 11.1 10.1
Public safety:

Fire 12.2 12.9
Police 27.5 17.9
Public works 13.9 10.4
Community development 3.5 2.8
Recreation 5.9 5.0
Interest on long-term debt 2.2 2.2
Total net position $ 76.3 $ 61.3
Increase (decrease) in net position 17.4 32.2
Net position - beginning, as restated 229.6 197.4
Net position - ending $ 247.0 $ 229.6
Comparative Statements of Activities
June 30, 2023 and 2022
(Amounts in Millions)
Governmental Activities
9 City of Newark
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2023
The City's expenses totaled $76.3 million in fiscal year 2023. These expenses were offset by program revenues of $18.5 million and general revenues of $75.2 million, resulting in a $17.4 million increase in the ending net position which was $247.0 million for fiscal year 2023.

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 $7.3 million lower compared to the prior fiscal year and was largely due to the $7.2 million decrease in collective impact fees reflecting lower development activity from the prior fiscal year. In addition, in-lieu of impact fees paid by developers to the City, certain agreements allowed for developers to retain funds in an escrow account to be used for certain projects. Operating grants and contributions at $4.2 million was flat compared to the prior fiscal year. Capital grants and contributions decreased $1.9 million, namely to account for the last year of Measure B distribution payments during fiscal year 2022.

General Revenues – The City’s general revenues were $9.4 million more compared to the prior fiscal year. Property tax revenue, representing the largest portion of general revenues was $2.8 million, or 10.85% higher, reflecting the continued increase of assessed value of secured property in the City. Sales tax revenue was $1.8 million, or 7.6% higher compared to the prior fiscal year, reflecting continued strength in consumer spending post-pandemic. Transient occupancy tax at $4.9 million was slightly higher compared to the prior fiscal year as was Utility Users Tax which was $4.2 million. The largest increase in general fund revenues was in interest earnings, which was $3.6 million at the close of fiscal year 2023, reflecting both an increase in cash and investment yields year over year.

Expenses – Expenses increased by $15.0 million, namely in the Police and Public Works departments. Police expenses were $10.6 million higher due largely to changes in the actuarial estimates for the CalPERS Safety plan, while Public Works expenses reflects a $3.5 million increase compared to fiscal year 2022. Last year’s CalPERS actuarial adjustments reflected a cost decrease due to favorable investment earnings which was not the case for fiscal year 2023.

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, 2023, the City's governmental funds reported combined fund balances of $167.1 million, an increase of $18.5 million in comparison with the prior fiscal year. Approximately 19.0% of the fund balance amount ($31.7 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 ($0.2 million), 2) restricted for specific purposes ($88.9 million), 3) committed for specific purposes ($12.4 million), or 4) assigned for specific purposes ($33.9 million). Further details of the fund balances can be found in Note 10 in the disclosures.

Governmental revenues in fiscal year 2023 were $93.7 million, an increase of $2.3 million over the prior fiscal year.

The combined increase in property tax ($2.8 million), sales tax ($1.8 million), use of money and property ($3.6 million), and transient occupancy tax ($0.7 million) largely offset the decrease in licenses, permits which was down due to lower 10 City of Newark
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2023
collective impact fees resulting from lower development activity during fiscal year 2023 and developers holding funds in escrow accounts to fund projects instead of remitting impact fees to the City.

Governmental expenditures in fiscal year 2023 were $75.9 million, a decrease of $2.0 million from the prior fiscal year.

Most of this decrease was due to the drop in the Capital Project fund expenditures.

General Fund
The General Fund is the primary operating fund of the City. At June 30, 2023, the spendable assigned and unassigned fund balance of the General Fund was $52.7 million, while total fund balance was $65.2 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 Measure GG and assigned use for equipment replacement.

The fund balance of the City's General Fund increased by $5.1 million from fiscal year 2022. Overall revenues of $79.6 million were offset by $66.0 million of expenditures and net transfers out of $8.5 million.

American Rescue Plan Act (ARPA) Fund
The American Rescue Plan Act Fund reports Federal funds received in response to the COVID-19 pandemic. While the second tranche of $5.9 million was received in July 2022, only $3.0 million is reported as current year income to match the current year use of funds for expenditures and transfers. The remaining balance of $6.0 million is recognized as unearned revenue on the balance sheet and will be spent during fiscal year 2024.

Public Safety Impact Fees Fund
The Public Safety Impact Fees Fund accounts for fees which provide funding for additional or improved police and fire services whose need is generated by new development within the City. Revenues of $0.3 million were added to the fund balance during fiscal year 2023, with no expenditures incurred.

Community Service Impact Fees Fund
The Community Service Impact Fees Fund accounts for fees which provide funding for additional or improved governmental, social, and cultural facilities and are generated by new development within the City. Revenues of $0.2 million were added to the fund balance during fiscal year 2023, with no expenditures incurred.

Traffic Impact Fees Fund
The Traffic Impact Fees Fund accounts for fees which provide funding for additional traffic signals or improved traffic operations. Revenues of $0.8 million were added to the fund balance during fiscal year 2023 and $16.9 thousand of expenditures were incurred.

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 11 City of Newark
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2023
Fee Fund reported $2.3 million of revenue and $66.7 thousand of expenditures. This revenue is considerably less than the prior fiscal year due to the decrease in development activity during fiscal year 2023. During the fiscal year, two affordable housing projects were initiated, resulting in new affordable housing loans. The first loan was for the Cedar Community Apartment project, with a loan issued for $2.7 million. The second loan was for the Thornton Avenue Apartments project for $3.5 million. More information can be found in Note 5 regarding these loans.

Development Maintenance Impact Fee Fund
The Development Maintenance Impact Fee Fund accounts for fees which provide funding to update and implement the Newark General Plan and zoning ordinance. Revenues were $0.8 million and expenditures were $0.9 million in fiscal year 2023.

Park Impact Fee Fund
The Park Impact Fee Fund accounts for fees which provide funding for park land and new improvements. Revenues were $0.4 million in fiscal year 2023, with no expenditures incurred.

Art in Public Places Fund
The Art in Public Places Fund accounts for fees collected from developers to be used for the procurement and enhancement of public art. Revenues were $62.0 thousand in fiscal year 2023, and expenditures incurred were $34.8 thousand.

Capital Projects Fund
The Capital Projects Fund received $9.4 million of transfers, as reimbursement for capital outlay expenditures related to construction of the New Civic Center from the prior fiscal year and to fund remaining project costs.

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 current receivable reflects project reimbursements due to the City. The expenditures in this fund during fiscal year 2023 were from street construction projects.

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. Debt service of $4.9 million was paid out during fiscal year 2023.

Proprietary Funds
The City's proprietary funds consist of the Internal Service Funds with a combined total net position of $11.1 million at the end of fiscal year 2023. Total operating revenue of $7.9 million offset expenses of $7.3 million, resulting in a change of net position of $0.6 million for the fiscal year.

12 City of Newark
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2023

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

Fiscal year 2023 was the first year of the City's biennial budget, which was adopted on June 22, 2022. The General Fund revenue budget for fiscal year 2023 was amended during the year, increasing it by $6.2 million. Actual revenues were $4.4 million over the final amended budget and $10.6 million over the original budget. This increase was primarily due to higher than anticipated sales tax revenue and investment earnings when the budget was last amended. Actual expenditures, excluding transfers out, for the fiscal year were $3.9 million under the final amended budget and $2.0 million less than 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, 2023, the City's capital assets used in governmental activities amounted to $226.6 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. 2023 2022
Land $4.4 $4.4
Park land 30.1 30.1
Landscaping 8.8 8.8
Street trees 0.7 0.7
Construction in progress 4.3 3.0
Building and improvements 128.8 128.6
Infrastructure:

Streets 81.7 81.6
Sidewalks, curbs, gutters, and walls 18.9 18.3
Street lights 3.3 3.2
Traffic signals 3.9 3.9
Equipment 16.1 15.5
Less: accumulated depreciation (75.0) (69.1)
Subscription assets, net of amortization 0.6 0.0
Total capital assets $226.6 $229.0
Governmental Activities
13 City of Newark
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2023

LONG-TERM OBLIGATIONS
On June 30, 2023, the City had long-term debt outstanding of $68.6 million compared to $71.7 million in the prior year.

The City's long-term debt obligations at June 30, 2023 and 2022 were as follows (amounts in millions):

Governmental Activities
2023 2022
Certificates of participation $67.8 $70.6
Financed purchase obligations 0.8 1.1
Total long-term debt $68.6 $71.7
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, 2023, a total of $0.9 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 7 to the Basic Financial Statements.

ECONOMIC FACTORS AND CURRENT BIENNIAL BUDGET
The City's adopted biennial budget for 2022-2024 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.
14 BASIC FINANCIAL STATEMENTS
15151515
City of Newark
Statement of Net Position
June 30, 2023
Primary Government
Governmental
ASSETS Activities
Current assets:

Pooled cash and investments $178,805,924
Receivables:

Accounts 2,147,979
Taxes 6,561,009
Intergovernmental 2,991,816
Interest 530,729
Loans 6,210,303
Other, net 827,728
Supplies and other assets 236,981
Restricted assets:

Cash with fiscal agent 24,172
Total current assets 198,336,641
Noncurrent assets:

Subscription asset, net of amortization 573,203
Capital assets, not being depreciated 48,380,293
Capital assets, net of depreciation 177,613,060
Total noncurrent assets 226,566,556
Total assets 424,903,197

DEFERRED OUTFLOW OF RESOURCES
Pension related amounts 39,641,330
OPEB related amounts 1,134,846
Deferred charge on refunding 89,984
Total deferred outflow of resources 40,866,160

LIABILITIES
Current liabilities:

Accounts payable 6,063,044
Accrued liabilities 1,091,574
Unearned revenues 8,588,608
Deposits payable 1,681,556
Compensated absences - due within one year 1,872,232
Claims payable - due within one year 302,247
Subscription liability - due within one year 201,559
Financed purchased obligations - due within one year 301,168 Bonds payable - due within one year 2,465,000
Total current liabilities 22,566,988
Noncurrent liabilities:

Compensated absences - due in more than one year 18,911 Claims payable - due in more than one year 2,764,557
Subscription liability - due in more than one year 345,659 Financed purchased obligations - due in more than one year 496,698 Long-term debt - due in more than one year 65,347,511
Net pension liability 109,719,460
Net OPEB liability 3,568,567
Total noncurrent liabilities 182,261,363
Total liabilities 204,828,351

DEFERRED INFLOW OF RESOURCES
Pension related amounts 12,606,828
OPEB related amounts 1,375,067
Total deferred inflow of resources 13,981,895

NET POSITION
Net investment in capital assets 157,498,945
Restricted for:

Capital projects 47,855,744
Grant-funded projects 3,185,850
Other Projects 50,565,514
Total restricted 101,607,108
Unrestricted (deficit) (12,146,942)
Total net position $246,959,111
See accompanying Notes to Basic Financial Statements
1616
City of Newark
Statement of Activities
For the year ended June 30, 2023
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 $ 11,148,276 $ 76,335 $ 128,920 $ - $ 205,255 $ (10,943,021) Public safety:

Fire 12,211,913 110,335 - - 110,335 (12,101,578)
Police 27,482,682 1,039,865 381,284 - 1,421,149 (26,061,533) Public works 13,895,506 4,180,452 262,632 4,223,883 8,666,967 (5,228,539) Community development 3,484,526 2,640,093 3,379,030 - 6,019,123 2,534,597 Recreation 5,891,006 1,726,821 2,884 331,258 2,060,963 (3,830,043) Interest on long-term debt (unallocated) 2,207,274 - - - - (2,207,274) Total governmental activities $ 76,321,183 $ 9,773,901 $ 4,154,750 $ 4,555,141 $ 18,483,792 (57,837,391) General Revenues:

Taxes:

Property tax 28,563,981
Sales tax 25,515,261
Transient occupancy tax 4,931,769
Franchise Fees 4,730,784
Utility users tax 4,219,023
Other local taxes 2,651,296
Total taxes 70,612,114
Intergovernmental—motor vehicle in-lieu, unrestricted 48,600 Use of money and property (investment loss) 3,566,534
Miscellaneous 957,007
Total general revenues 75,184,255
Change in net position 17,346,864
Net position - beginning of year, as restated 229,612,247 Net position - end of year $ 246,959,111
Program Revenues
See accompanying Notes to Basic Financial Statements
17171717
City of Newark
Balance Sheet
Governmental Funds
June 30, 2023
American Public Community Traffic Housing
General Rescue Plan Safety Service Impact Impact
Fund Act (ARPA) Impact Fees Impact Fees Fees Fees
ASSETS
Pooled cash and investments $ 60,712,877 $ 5,982,502 $ 948,791 $ 722,460 $ 12,604,200 $ 38,442,769 Receivables:

Accounts 265,122 - - - - -
Taxes 6,561,009 - - - - -
Intergovernmental 45,669 - - - - -
Interest 530,729 - - - - -
Loans 3,551 - - - - 6,206,752
Other 764,301 - - - - -
Due from other funds 2,724,135 - - - - -
Inventories 151,513 - - - - -
Restricted assets:

Cash and investments with fiscal agents - - - - - -
Total assets $ 71,758,906 $ 5,982,502 $ 948,791 $ 722,460 $ 12,604,200 $ 44,649,521 LIABILITIES AND FUND BALANCES:

Liabilities:

Accounts payable $ 4,472,078 $ 26,297 $ - $ - $ 3,576 $ 53,615 Accrued liabilities 515,946 - - - - 3,020
Deposit payable 1,385,884 - - - - -
Unearned revenues 168,608 5,956,205 - - - -
Due to other funds - - - - - -
Total liabilities 6,542,516 5,982,502 - - 3,576 56,635

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

Non-spendable 155,064 - - - - -
Restricted - - 948,791 722,460 12,600,624 44,592,886
Committed 12,388,488 - - - - -
Assigned 17,831,072 - - - - -
Unassigned (deficit) 34,841,766 - - - - -
Total fund balances 65,216,390 - 948,791 722,460 12,600,624 44,592,886 Total liabilities, deferred inflows of
resources, and fund balances $ 71,758,906 $ 5,982,502 $ 948,791 $ 722,460 $ 12,604,200 $ 44,649,521 Special Revenue Funds
See accompanying Notes to Basic Financial Statements
1818
Debt Service
Fund
Development Park Art Capital Public Other Total
Maintenance Impact Measure B - in Public Projects Financing Governmental Governmental Fees Fees 1986 ACTIA Places Fund Authority Funds Funds
$ 4,339,346 $ 5,806,206 $ - $ 1,943,167 $ 16,482,318 $ 62,253 $ 18,750,468 $ 166,797,357 33,321 - - - - - 1,849,536 2,147,979
- - - - - - - 6,561,009
- - 1,720,592 - - - 1,225,555 2,991,816
- - - - - - - 530,729
- - - - - - - 6,210,303
- - - - - - 16,936 781,237
- - - - - - - 2,724,135
- - - - - - - 151,513
-
- - - - - 24,172 - 24,172
$ 4,372,667 $ 5,806,206 $ 1,720,592 $ 1,943,167 $ 16,482,318 $ 86,425 $ 21,842,495 $ 188,920,250 $ 92,410 $ - $ 166,166 $ - $ 132,536 $ - $ 610,592 $ 5,557,270 44,292 - - - - - 192,749 756,007
- - - - 234,271 - 61,401 1,681,556
- - - - - 2,463,795 8,588,608
- - 2,393,393 - - - 330,742 2,724,135
136,702 - 2,559,559 - 366,807 - 3,659,279 19,307,576
33,321 - 1,720,592 - - - 724,741 2,478,654
33,321 - 1,720,592 - - - 724,741 2,478,654
- - - - - - - 155,064
4,202,644 5,806,206 - 1,943,167 - 86,425 18,003,365 88,906,568 - - - - - - - 12,388,488
- - - - 16,115,511 - - 33,946,583
- - (2,559,559) - - (544,890) 31,737,317
4,202,644 5,806,206 (2,559,559) 1,943,167 16,115,511 86,425 17,458,475 167,134,020 $ 4,372,667 $ 5,806,206 $ 1,720,592 $ 1,943,167 $ 16,482,318 $ 86,425 $ 21,842,495 $ 188,920,250 Special Revenue Funds Capital Projects Funds
1919
20202020
City of Newark
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
Total Fund Balances - Total Governmental Funds $ 167,134,020 Subscription assets used in governmental activities were not current financial resources. 573,203 Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet. 222,590,404 Long-term debt and compensated absences that have not been included in the governmental fund activity:

Subscription payable (547,218)
Bonds payable (59,405,000)
Unamortized bond premium/discounts (8,407,511)
Unamortized loss on defeasance 89,984
Compensated absences (1,891,143) (70,160,888)
Net pension liability not included in governmental fund activity (109,719,460) Net OPEB liability not included in governmental fund activity (3,568,567) Deferred outflows related to pension items are not included in the governmental activity 39,641,330 Deferred inflows related to pension items are not included in the governmental activity (12,606,828) Deferred outflows related to OPEB items are not included in the governmental activity 1,134,846 Deferred inflows related to OPEB items are not included in the governmental activity (1,375,067) Deferred inflows related to unavailable revenue are not included in the governmental activity 2,478,654 Accrued interest payable for the current portion of interest due on bonds has not been reported in governmental funds (310,522)
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 12,008,567 - Other receivables 46,491
- Supplies and other assets 85,468
- Capital assets 3,402,949
- Accounts payable and accrued liabilities (530,819)
- Finance purchase obligation (797,866)
- Claims payable (3,066,804) 11,147,986
Net Position of Governmental Activities $ 246,959,111
June 30, 2023
Amounts reported for governmental activities in the Statement of Net Position were different because:

See accompanying Notes to Basic Financial Statements
21212121
City of Newark
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2023
American Public Community Traffic Housing
General Rescue Plan Safety Service Impact Fees Impact
Fund Act (ARPA) Impact Fees Impact Fees Fees Fees
REVENUES:

General property taxes $ 28,563,981 $ - $ - $ - $ - $ - Other local taxes 42,048,133 - - - - -
Special assessments - - - - - -
Licenses, permits and fees 4,022,058 - 298,307 213,806 596,629 1,561,670 Other governmental agencies 315,286 2,967,833 - - - -
Current service charges 1,726,821 - - - - -
Fines and forfeitures 541,144 - - - - -
Use of money and property 2,025,059 - 15,897 12,143 216,272 709,383 Other revenue 378,359 - - - - -
Total revenues 79,620,841 2,967,833 314,204 225,949 812,901 2,271,053 EXPENDITURES:

Current:

General government 9,854,487 44,998 - - - -
Public safety:

Fire 11,826,858 - - - - -
Police 25,010,516 - - - - -
Community development 2,483,594 45,627 - - - 66,676
Recreation 5,119,440 - - - - -
Public Works 10,655,287 93,259 - - 603 -
Capital outlay - subscriptions 718,619 - - - - -
Capital outlay 121,584 - - - 16,285 -
Debt service:

Principal repayment - subscriptions 208,906
Interest and fiscal charges - subscriptions 6,077
Principal repayment - - - - - -
Interest and fiscal charges - - - - - -
Total expenditures 66,005,368 183,884 - - 16,888 66,676 REVENUES OVER (UNDER) EXPENDITURES 13,615,473 2,783,949 314,204 225,949 796,013 2,204,377 OTHER FINANCING SOURCES (USES):

Other financing source (subscriptions) 718,619 - - - - - Transfers in 1,283,949 - - - - 1,500,000
Transfers out (10,555,010) (2,783,949) - - - -
Total other financing sources (uses) (8,552,442) (2,783,949) - - - 1,500,000 Net change in fund balances 5,063,031 - 314,204 225,949 796,013 3,704,377 Beginning of year, as restated 60,153,359 - 634,587 496,511 11,804,611 40,888,509 End of year $ 65,216,390 $ - $ 948,791 $ 722,460 $ 12,600,624 $ 44,592,886 Special Revenue Funds
See accompanying Notes to Basic Financial Statements
22 Debt Service
Fund
Development Park Art Capital Public Other Total
Maintenance Impact Measure B - in Public Projects Financing Governmental Governmental Impact Fees Fees 1986 ACTIA Places Fund Authority Funds Funds $ - $ - $ - $ - $ - $ - $ - $ 28,563,981
- - - - - - - 42,048,133
- - - - - - 567,645 567,645
551,689 261,100 - 28,350 - - 99,006 7,632,615
160,000 - - - - - 5,177,327 8,620,446
- - - - - - - 1,726,821
- - - - - - - 541,144
75,557 99,988 - 33,655 - 96,699 281,881 3,566,534
- - - - - - 11,003 389,362
787,246 361,088 - 62,005 - 96,699 6,136,862 93,656,681
- - - - - - - 9,899,485
- - - - - - 4,409 11,831,267
- - - - - - 338,771 25,349,287
877,605 - - - - - 52,400 3,525,902
- - 34,750 - - 186,593 5,340,783
- - - - 86,568 - 866,651 11,702,368
- - - - 46,643 - - 765,262
1,170 - 455,399 - 90,559 - 1,602,328 2,287,325
-
9,139 - 218,045
205 - 6,282
- - - - - 2,345,000 - 2,345,000
- - - - - 2,604,851 - 2,604,851
878,775 - 455,399 34,750 233,114 4,949,851 3,051,152 75,875,857 (91,529) 361,088 (455,399) 27,255 (233,114) (4,853,152) 3,085,710 17,780,824 - - - - 46,643 - - 765,262
- - - - 9,389,121 6,051,889 - 18,224,958
- - - - - (4,736,000) (150,000) (18,224,958)
- - - - 9,435,764 1,315,889 (150,000) 765,262
(91,529) 361,088 (455,399) 27,255 9,202,650 (3,537,263) 2,935,710 18,546,086 4,294,173 5,445,118 (2,104,160) 1,915,912 6,912,861 3,623,688 14,522,765 148,587,934 $ 4,202,644 $ 5,806,206 $ (2,559,559) 1,943,167$ $ 16,115,511 $ 86,425 $ 17,458,475 $ 167,134,020 Special Revenue Funds Capital Projects Funds
23232323
24242424
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, 2023
Net Change in Fund Balances - Total Governmental Funds $ 18,546,086

Governmental funds report software subscriptions and capital outlays as expenditures.

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

Subscriptions outlay 765,262
Subscriptions amortization (192,060)
Capital outlay 2,287,325
Depreciation (5,418,072) (2,557,545)
Repayment of subscription and bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position.

Principal repayments on subscriptions 218,045
Other financing source (subscriptions) (765,262)
Principal repayments 2,345,000
Amortization of deferred charges (29,183)
Amortization of bond premium 441,039 2,209,639
Unavailable revenue accrual which is not recognized in the governmental fund activity. 11,366 Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period. 22,516
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. 292,849
Pension expenses recognized in accordance with GASB68 not recognized in the governmental fund activity. (2,422,249)
OPEB expenses recognized in accordance with GASB75 not recognized in the governmental fund activity. 641,139
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. 603,063

Change in Net Position of Governmental Activities $ 17,346,864 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
25 City of Newark
Statement of Net Position
Proprietary Funds
June 30, 2023
Governmental
Activities -
Internal
Service Funds
ASSETS
Current assets:

Cash and investments $ 12,008,567
Other receivables 46,491
Supplies and other assets 85,468
Total current assets 12,140,526
Noncurrent assets:

Capital assets, net of accumulated depreciation 3,402,949 Total assets 15,543,475

LIABILITIES
Current liabilities:

Accounts payable 505,774
Accrued liabilities 25,045
Financed purchased obligations - due within one year 301,168 Claims payable - due within one year 302,247
Total current liabilities 1,134,234
Noncurrent liabilities:

Financed purchased obligations - due in more than one year 496,698 Claims payable - due in more than one year 2,764,557
Total non-current liabilities 3,261,255
Total liabilities 4,395,489

NET POSITION
Net investment in capital assets 2,605,083
Unrestricted 8,542,903
Total net position $ 11,147,986
See accompanying Notes to Basic Financial Statements
26 City of Newark
Statement of Activities
Proprietary Funds
For the year ended June 30, 2023
Governmental
Activities -
Internal
Service Funds
OPERATING REVENUES:

Charges to departments $ 7,800,000
Other revenue 110,536
Total operating revenues 7,910,536
OPERATING EXPENSES:

Personnel services 1,384,757
Materials and supplies 581,640
Contractual services 2,016,019
Utilities 929,485
Insurance claims and premiums 1,826,525
Depreciation 538,534
Total operating expenses 7,276,960
OPERATING INCOME (LOSS) 633,576
NONOPERATING REVENUES (EXPENSES):

Interest expense (30,513)
Total nonoperating revenues (expenses) (30,513)
Change in net position 603,063
NET POSITION:

Beginning of year 10,544,923
End of year $ 11,147,986
See accompanying Notes to Basic Financial Statements
27272727
City of Newark
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2023
Governmental
Activities -
Internal
Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from other funds $ 7,952,680
Payments to suppliers/other fund (3,049,429)
Payments to employees (1,384,757)
Claims paid (1,826,525)
Net cash provided by operating activities 1,691,969
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITES:

Payments on financed purchased obligations (290,145)
Acquisition of capital assets (435,162)
Interest paid and fiscal charges (30,513)
Net cash provided by capital and related financing activities (755,820) Net increase in cash and cash equivalents 936,149
CASH AND CASH EQUIVALENTS:

Beginning of year 11,072,418
End of year $ 12,008,567

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

Operating income $ 675,720
Adjustments to reconcile operating income to net
cash provided by operating activities:

Depreciation 538,534
Changes in current assets and liabilities:

Other assets 3,900
Accounts payable and accrued liabilities 473,815
Total adjustments 1,016,249
Net cash provided by operating activities $ 1,691,969
See accompanying Notes to Basic Financial Statements
28 City of Newark
Statement of Fiduciary Net Position
Fiduciary Funds
Custodial
Funds
ASSETS:

Pooled cash and investments $ 3,611,227
Restricted cash 2,791
Total additions 3,614,018
LIABILITIES:

Due to bondholders $ 941,678
Due to assessment districts 2,672,340
Total liabilities 3,614,018

NET POSITION
Restricted for:

Individuals and other -
Total net position $ -
June 30, 2023
See accompanying Notes to Basic Financial Statements
29 City of Newark
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2023
Custodial
Funds
ADDITIONS:

Interest income and fair market adjustments $ 211
Special assessments 943,272
Total additions 943,483
DEDUCTIONS:

Administrative expense $ 1,805
External debt service expense 941,678
Total deductions 943,483

NET INCREASE (DECREASE) IN FIDUCIARY NET POSITION -
Net Position - beginning, as restated -
Net Position - ending $ -
See accompanying Notes to Basic Financial Statements
30 City of Newark
Notes to Basic Financial Statements
For the year ended June 30, 2023

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

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

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

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

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

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

The following interfund activities have been eliminated: Due to/from other funds, advances to/from other funds, transfers in/out, and interfund charges.
31 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2023
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:

General Fund – isthe general operating fund ofthe City. Itis used to accountfor all financialresourcesexcept 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 chargesfor 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.

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 Impact 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.

Measure B (1986 ACTIA) – accounts for amounts previously received by ACTA (Alameda County Transportation Authority) as part of a 1986 sales tax measure passed by the voters of Alameda County to finance various transportation improvements. However, the measure expired in 2002 and the City no longer receives sales tax revenue related to the measure. This fund now accounts for Measure B grant funding.
32 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2023
Art in Public Places Impact Fees Fund – accounts for funds collected from developers to be used for the procurement and enhancement of public art.

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

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 yearend) 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 othertaxes. Expenditures are recorded in the accounting period in which the related fund liability is incurred.

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

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

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

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

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

Internal service fund balances and activities have been combined with governmental activities in the Government-Wide Financial Statements, and are comprised of the following funds:
33 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2023
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 a custodian 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 ofthis fund are excluded from the GovernmentWide Financial Statement 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.
34 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2023
The City participates in an investment pool managed by the State of California titled Local Agency Investment Fund (LAIF) which has invested a portion of the pooled funds in Structured Notes and Asset-Backed Securities.

LAIF’s investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and Asset-Backed Securities are subject to market risk as to changes 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.

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. 35 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2023
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/amortization 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/amortized. The purpose of depreciation/amortization is to spread the cost of capital assets equitably among all users over the life of these assets. The amount charged to depreciation/amortization 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
Subscription assets 3-5 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.

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 absences isliquidated primarily by the General Fund.
36 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2023
J. Subscription-Based Information Technology Arrangements The City of Newark is a subscriber for noncancellable subscriptions of information technology services. The City of Newark recognizes subscription liability and an intangible right‐to‐use subscription asset (subscription asset) in the government‐wide financial statements.

At the commencement of a subscription, the City of Newark initially measures the subscription liability at the present value of payments expected to be made during the subscription term. Subsequently, the subscription liability is reduced by the principal portion of subscription payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for subscription payments made at or before the subscription commencement date, plus certain initial direct costs. Subsequently, the subscription asset is amortized on a straight‐line basis over its useful life. Key estimates and judgments related to subscriptions include how the City of Newark determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) lease term, and (3) subscription payments. • The City of Newark uses the interest rate charged by the vendor as the discount rate. When the interest rate charged by the vendor is not provided, the City of Newark generally uses its estimated incremental borrowing rate as the discount rate for subscriptions. • The subscription term includes the noncancellable period of the subscription. Subscription payments included in the measurement of the subscription liability are composed of fixed payments that the City of Newark is reasonably certain to exercise.

The City of Newark monitors changes in circumstances that would require a remeasurement of its subscriptions and will remeasure the subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability.

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

K. 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 theapplicable 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 areshown in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position.
37 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2023
Bond premiums and discounts are recognized during the current period as other financing sources or uses.

Bondproceeds are reported as other financing sources. Issuance costs are recognized during the current period as expenditures.

L. 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 appliesto future period(s) and so willnot be recognized as an inflow of resources (revenue) until that time.

M. 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 itsliabilities, regardless of fund. Net Position is divided into three captions under GASB Statement 34.

These captions apply only to Net Position, which is determined only at the government-wide level and are described below.

Net Investment in Capital Assets – Describes the portion of Net Position which is represented by the currentnet 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
GASB54 establishedFundBalance classifications basedlargely uponthe extenttowhich a governmentis 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 notesreceivable.
38 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2023
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 effectivelybe 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 orliftedonly by the City Counciltaking the same formal action thatimposed 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 the City Council or an official to which the City Councilhas delegated the authority to assign amounts to be used forspecific purposes.

Unassigned Fund Balance – is the residual classification for the General Fund and includes all amounts notcontained 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.

The City established the following policies relating to its fund balance classifications:

Committed Fund Balances
• Highest Level of Decision-Making Authority – The City Council is the highest level of decision-making authority in terms of established fund balance classifications and creating Committed Fund Balances. • Formal Action Required – Ordinances are the highest-level action taken by City Council that constitutes themost 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 resourcesto specific purposesin 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 is incurred for purposes for which both Restrictedand 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.
39 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2023
• Committed, Assigned or Unassigned Funds – when an expenditure is incurred where there are no RestrictedFunds 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 listingof all Fund Balances and their classifications.

N. New Pronouncements
The following Government Accounting Standards Board (GASB) pronouncements were effective for and/or early implemented for the fiscal year ended June 30, 2023:
a. GASB Statement No. 91, Conduit Debt Obligations
The requirements of this Statement will improve financial reporting by eliminating the existing option for issuers to report conduit debt obligations as their own liabilities, thereby ending significant diversity in practice. The clarified definition will resolve stakeholders’ uncertainty as to whether a given financing is, in fact, a conduit debt obligation. Requiring issuers to recognize liabilities associated with additional commitments extended by issuers and to recognize assets and deferred inflows of resources related to certain arrangements associated with conduit debt obligations also will eliminate diversity, thereby improving comparability in reporting by issuers. Revised disclosure requirements will provide financial statement users with better information regarding the commitments issuers extend and the likelihood that they will fulfill those commitments. That information will inform users of the potential impact of such commitments on the financial resources of issuers and help users assess issuers’ roles in conduit debt obligations. b. GASB Statement No. 96, Subscription-Based Information Technology Arrangements The requirements of this Statement will improve financial reporting by establishing a definition for SBITAs and providing uniform guidance for accounting and financial reporting for transactions that meet that definition. That definition and uniform guidance will result in greater consistency in practice. Establishing the capitalization criteria for implementation costs also will reduce diversity and improve comparability in financial reporting by governments. This Statement also will enhance the relevance and reliability of a government’s financial statements by requiring a government to report a subscription asset and subscription liability for a SBITA and to disclose essential information about the arrangement. The disclosures will allow users to understand the scale and important aspects of a government’s SBITA activities and evaluate a government’s obligations and assets resulting from SBITAs.
40 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2023

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, 2023:

At June 30, 2023, the City’s pooled cash and investments, including restricted funds consisted of the following:

The carrying amount of the City’s cash deposit was $51,910,818 at June 30, 2023. Bank balances and petty cash before reconciling items were $51,728,350 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 institutionsto 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.

Government-Wide
Statement of Net
Position
Governmental
Activities
Fiduciary Funds
Statement of
Net Position Total
Cash and investments $178,805,924 $3,611,227 $182,417,151 Restricted cash and investments 24,172 2,791 26,963
Total $178,830,096 $3,614,018 $182,444,114
Deposits:

Cash on hand $5,100
Deposits with banks 51,911,818
Total deposits 51,916,918
Investments:

California Local Agency Investment Fund 66,571,215
California Asset Management Program 63,929,018
Total investments 130,500,233
Total City Treasury 182,417,151
Cash and Investments with Fiscal Agents:

Money market funds 26,963
Total Restricted Cash and Investments 26,963
Total Cash and Investments $182,444,114
41 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2023
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 investments 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 heldby 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 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2023
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 ratesis 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, 2023:

Credit Risk – Credit risk isthe risk of loss of value of a security or investment due to downgrade of itsrating due to a change in the ability ofthe 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 isthe risk that in the event of the failure ofthe counter party,the City will not be able to recoverthe value of itsinvestments 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, 2023, 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 receivea 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, 2023, the City had $66,571,215 invested in LAIF, which had invested 2.78% 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 isthe same as the value of the poolshare. The fair value of LAIF was calculated by applying a factor of .984828 to the total investments held by LAIF.

Remaining Maturity
(in Months)
Investment Type Totals 12 Months or Less
LAIF $66,571,215 $66,571,215
CAMP 63,929,018 63,929,018
Money market funds 26,963 26,963
$130,527,196 $130,527,196
43 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2023
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, 2023, were as follows:
• The transfer from the General Fund to the Capital Projects Fund was for project cost reimbursements for the New Civic Center Project; the transfer to the Public Financing Authority was for reimbursements for current and prior years’ debt service payments.

General Housing Impact Capital Project Public Financing Transfers Out Fund Fees Fund Fund Authority TOTAL
General Fund $ - $ - $ 4,503,121 $ 6,051,889 $ 10,555,010 ARPA 1,283,949 1,500,000 - - 2,783,949
Public Financing Authority - - 4,736,000 - 4,736,000
Non-Major Fund:

Measure D - - 150,000 - 150,000
$ 1,283,949 $ 1,500,000 $ 9,389,121 $ 6,051,889 $ 18,224,959 44 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2023
• The transfer from the American Rescue Plan Act (ARPA) Fund to the General Fund was to fund positions previously frozen as a result of the pandemic; the transfer to the Housing Impact Fees Fund represents the approved allocation for affordable housing. • The transfer from the Public Financing Authority to the Capital Project Fund represents the use of the remaining debt reserve to be applied towards costs for the New Civic Center Project. In lieu of a reserve, the City obtained an insurance policy.
• The transfers from the Measure D Fund to the Capital Project Fund was for project cost reimbursement for the 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 $2,393,393
Non-Major Funds 330,742
Total $2,724,135
Due from other funds
45 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2023

4. CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2023 was as follows:

Depreciation/amortization expense was charged to various governmental functions as follows:

General Government $1,509,078
Public Safety 316,260
Public Works 2,837,768
Community Development 38,135
Recreation and Community Services 908,891
Internal Service Funds 538,534
Total Depreciation $6,148,666
Balance
June 30, 2022
Prior Period
Adjustment Additions Deletions Balance June 30, 2023
Governmental activities
Nondepreciable assets:

Land $ 4,384,073 $ - $ - - $ $ 4,384,073
Park land 30,107,749 - - - 30,107,749
Landscaping 8,807,394 - - - 8,807,394
Street trees 739,733 - - - 739,733
Construction in progress 2,987,576 - 1,353,768 - 4,341,344 Total nondepreciable assets 47,026,525 - 1,353,768 - 48,380,293 Depreciable assets
Building and land improvements 128,626,594 199,121 10,752 - 128,836,467 Infrastructure:

Streets 81,538,471 - 127,691 - 81,666,162
Sidewalks, curbs, gutters, and walls 18,311,247 - 593,723 - 18,904,970 Street lights 3,249,607 - - - 3,249,607
Traffic signals 3,936,783 - - - 3,936,783
Equipment 15,509,212 - 636,554 (94,772) 16,050,994
Subscription-based assets - - 765,262 - 765,262
Total depreciable assets 251,171,914 199,121 2,133,982 (94,772) 253,410,245 Building and land improvements 18,880,269 - 2,454,660 - 21,334,929 Infrastructure:

Streets 27,594,336 - 2,103,326 - 29,697,662
Sidewalks, curbs, gutters, and walls 6,406,009 - 463,588 - 6,869,597 Street lights 1,941,058 - 130,161 - 2,071,219
Traffic signals 3,786,091 - 54,021 - 3,840,112
Equipment 10,520,181 - 750,850 (52,628) 11,218,403
Subscription-based assets amortization - - 192,060 - 192,060 Accumulated depreciation/amortization 69,127,944 - 6,148,666 (52,628) 75,223,982 Net depreciable assets 182,043,970 199,121 (4,014,684) (42,144) 178,186,263 TOTAL ASSETS $ 229,070,495 $ 199,121 $ (2,660,916) $ (42,144) $ 226,566,556 46 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2023

5. AFFORDABLE HOUSING LOAN RECEIVABLE
In May 2021, the City Council approved an affordable housing work plan that includes activities for the preparation of new affordable housing requirements, policies, and actions intended to significantly incentivize the production of affordable housing within the City, particularly at the very-low and low-income levels.

Two projects were embarked, and the City issued housing loans from the Housing Impact Fees Fund, consisting of the following two projects:

Cedar Community Apartments
In September 2021, the California Department of Housing and Community Development issued a notice of funding availability for the HomeKey Program, pursuant to the Health and Safety Code section 50675.1.3. In January 2022, the City Council adopted a Resolution authorizing the City Manager to apply for Homekey grant funds in an amount not-to-exceed $39 million from the Department. The City, together with Allied Housing, Inc. as it’s co-applicant submitted an application for Homekey grant funds to enable the purchase, renovation, and provision of resident services at the Towne Place Suites Extended Stay Hotel located at 39802 Cedar Boulevard for permanent supportive housing. Towne Place Suites Extended Stay Hotel was an existing 125- room hotel, consisting of 57 studios, 38 one-bedroom, and 30 two-bedroom suits and was planned to be converted into affordable housing residential units for households at risk of homelessness. On July 25, 2022, the City received notice of the Department’s award of $38.2 million to the City.

In addition to the grant funding, the City Council approved $1.5 million from ARPA funds and $4.5 million from the Affordable Housing Impact Fees Funds to be allocated to the project. In total, the City has agreed to provide a total loan of $44.2 million to Allied Housing, Inc., with interest of 3% to be accrued on the outstanding principal balance of the City loan (no interest shall accrue upon the HomeKey Grant portion of the loan). As of June 30, 2023, $2.7 million has been spent on project costs, representing the housing loan receivable payable by Allied Housing, Inc., with an additional $44,589 as accrued interest.

Thornton Avenue Apartments
In June 2022, the City released a notice of funding availability for multi-family affordable housing rental projects, inviting developers of deed-restricted affordable new-construction multi-family rental housing projects in the Bay Area to apply for funding assistance. Thornton LP, submitted a proposal for the City’s provision of financial assistance to acquire three parcels of real property located at 6347, 6361, and 6375 Thornton Avenue for the construction and operation of a 57-unit affordable multi-family housing development thereon. Thornton LP was approved for a $12 million loan, with interest of 3% to be accrued on the outstanding principal balance of the City loan. As of June 30, 2023, $3.5 million has been spent on project costs, representing the housing loan receivable payable by Thornton LP, with an additional $18,058 as accrued interest.

DESCRIPTION AMOUNT
Cedar Community Apartments $ 2,731,471
Thornton Avenue Apartments 3,475,281
$ 6,206,752
47 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2023

6. SUBSCRIPTION BASED INFORMATION TECHNOLOGY ARRANGEMENTS (SBITAs) The City of Newark has entered into various SBITAs as the subscriber for the use of software as a service. An initial subscription liability was recorded in the amount of $591,357 during the current fiscal year. The terms of these subscriptions range from 24 to 60 months. As of June 30, 2023, the total value of the subscription liability was $547,218. The City of Newark is required to make monthly principal and interest payments of ranging from $9,344 to $100,000. The subscriptions have interest rates ranging from 2.643% to 3.918%.

Information on the subscription assets as of June 30, 2023 are as follows:

Amount of Subscription Assets by Major Classes of Underlying Asset Asset Class
Subscription Asset
Value
Accumulated
Amortization
Software $765,262 $192,060
Total Subscriptions $765,262 $192,060
As of Fiscal Year-End June 30, 2023
Software Subscription asset activity for the year ended June 30, 2023 was as follows:

Balance as of Balance as of
Governmental activities: July 1, 2022 Additions Reductions June 30, 2023 Total Software Subscription Assets $ 591,357 $ 173,905 $ - $ 765,262 Total Software Subscription Accumulated Amortization - - (192,060) (192,060) Total Governmental Subscription Assets, Net $ 591,357 $ 173,905 $ (192,060) $ 573,202 Fiscal Year Principal Payments Interest Payments Total Payments 2024 $201,559 $15,647 $217,206
2025 $187,063 $9,649 $196,712
2026 $72,482 $4,274 $76,756
2027 $86,114 $2,200 $88,314
$547,218 $31,770 $578,988
Governmental Activities
Principal and Interest Requirements to Maturity
48 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2023

7. 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 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 agreement in the amount of $585,766 with Motorola Solutions, Inc. to acquire a radio communications system that would provide regional interoperability.

Annual payments are due on October 1 until 2023. Ownership of the radio system reverts to the City at the end of the agreement period.

On January 23, 2020, the City entered into a non-cancelable agreement in the amount of $320,727 with PNC Equipment Finance, LLC to acquire a streetsweeper. Annual payments are due on August 23 until 2023. Ownership of the street sweeper reverts to the City at the end of the agreement period.

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

Ownership of the fire pumper reverts to the City at the end of the agreement period.

The City's long-term debt is comprised of the following at June 30, 2023:

Governmental Activities:

Balance
June 30, 2022 Additions Retirements
Balance
June 30, 2023
Amounts Due
Within One
Year
Direct Borrowings:

Certificates of Participation 2019 $ 61,750,000 $ - $ (2,345,000) $ 59,405,000 $ 2,465,000 $63,345,000; 3-5% due 2042
2019 COPs Premium 8,848,550 - (441,039) 8,407,511 -
Financed purchased obligations:

Equipment lease, due 2024 250,162 - (122,295) 127,867 127,867 Equipment lease, due 2024 163,365 - (80,357) 83,008 83,009 Equipment lease, due 2029 674,484 - (87,493) 586,991 90,292 Total $ 71,686,561 $ - $ (3,076,184) $ 68,610,377 $ 2,766,168 49 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2023
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, 2023, the remaining balance outstanding on these bonds was $941,678.

8. 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, 2023 were as follows:

Principal Interest
Year Ending
June 30,
2024 2,766,168 2,380,299
2025 2,678,182 2,245,594
2026 2,816,164 2,113,363
2027 2,954,241 1,974,285
2028 3,102,417 1,828,360
2029-2033 14,935,694 6,992,932
2034-2038 16,090,000 3,901,500
2039-2042 14,860,000 1,131,000
Total $ 60,202,866 $ 22,567,333
Governmental Activities
Balance
June 30, 2022 Accrued Used
Balance
June 30, 2023
Due Within
One Year
Due in More
than One Year
Governmental Activites $ 2,183,992 $ 1,424,920 $ (1,717,769) $ 1,891,143 $ 1,872,232 $ 18,911 50 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2023

9. DEFINED BENEFIT PENSION PLANS
A. Summary of Pension Plan Benefits
Pension related balances presented on the Statement of Net Position as of Measurement Date June 30, 2022 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 totalservice 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 $ 4,284,268 $ 6,318,177 $ 43,083,986 $ 1,159,180 $ 4,082,533 CALPERS Safety
Cost-Sharing Plan 5,971,166 23,067,719 66,635,474 11,447,648 8,595,174 $ 10,255,434 $ 29,385,896 $ 109,719,460 $ 12,606,828 $ 12,677,707 51 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2023
The Plan’s provisions and benefitsin effect as of the June 30, 2022 measurement date are summarized asfollows:
1 Members with five or more years of PERS service are eligible to retire at age 50 with statutorily reduced benefits (age 52 for Miscellaneous PEPRA members).

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 228 Inactive employees entitled to but not yet receiving benefits 214 Active employees 117
Total 559
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 an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

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, 2022, using an annual actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown on the following page.

Miscellaneous Classic Miscellaneous PEPRA
Hire Date Prior to January 1, 2013 On or after January 1, 2013 Benefit vesting schedule 5 years of service 5 years of service Benefit payment Monthly for life Monthly for life
Retirement age 1 50 52
Monthly benefits, as a % of annual salary 2.5% at age 55 2.0% at age 62 Required employee contribution rates 8.000% 6.750%
Required employer contribution rates 10.240% 10.240%
Required UAL payment $3,476,067 $0
Safety Classic Safety PEPRA
Hire Date Prior to January 1, 2013 On or after January 1, 2013 Benefit vesting schedule 5 years of service 5 years of service Benefit payment Monthly for life Monthly for life
Retirement age 1 50 52
Monthly benefits, as a % of annual salary 3.0% at age 50 2.7% at age 57 Required employee contribution rates 9.000% 13.000%
Required employer contribution rates 32.740% 12.780%
Required UAL payment $4,832,528 $11,545
52 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2023
Actuarial Assumptions – The total pension liabilities in the June 30, 2021 actuarial valuations were determined using the following actuarial assumptions:

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

Discount Rate 6.90%
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 6.90 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 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.
53 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2023
The expected real rates of return by asset class are as followed:

Asset Class
Assumed
Asset
Allocation
Real Return
Years 1-101.2
Global Equity 30.00% 4.45%
Global Equity Non-Cap Weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-Backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
Total 100.00%
• An expected inflation of 2.30% used for this period.
• Figures are based on the 2021-2022 Asset Liability Management Study.

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

As of June 30, 2022, the City reported a net pension liability of $66,635,474 for its proportionate share of the net pension liability of the safety plan.

Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2021 (MD) $ 129,950,306 $ 96,186,539 $ 33,763,767 Service cost 2,119,396 - 2,119,396
Interest on the total pension liability 8,888,163 - 8,888,163 Changes of Assumptions 3,418,942 3,418,942
Differences between actual and
expected experience (1,907,477) - (1,907,477)
Contribution - employer - 9,282,730 (9,282,730)
Contribution - employee - 1,224,304 (1,224,304)
Net investment income - (7,248,311) 7,248,311
Benefit payments, including refunds
of employee contributions (7,415,003) (7,415,003) -
Administrative expenses - (59,918) 59,918
Net changes 5,104,021 (4,216,198) 9,320,219
Balance at June 30, 2022 (MD) $ 135,054,327 $ 91,970,341 $ 43,083,986 Increase (Decrease)
54 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2023
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, 2021 and 2022 were as follows:

Proportion - June 30, 2021 1.0508%
Proportion - June 30, 2022 .9697%
Change - Increase (Decrease) 0.0811%
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, 2023, the City recognized pension expense of $4,082,533 and $8,595,174, for the Miscellaneous and Safety plans, respectively. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to the pension plan from the following sources:

Miscellaneous Plan Safety Plan
1% Decrease
Net Pension Liability $60,038,650 $96,990,949
Current Discount Rate
Net Pension Liability $43,083,986 $66,635,474
1% Increase
Net Pension Liability $29,031,626 $41,826,732

5.90%

6.90%

7.90%
Deferred Outflows Deferred Inflows
Miscellaneous Plan of Resources of Resources
Pension contributions subsequent to $ 4,284,268 $ -
measurement date
Differences between actual and expected experience - 1,159,180 Changes in assumptions 1,932,445 -
Net differences between projected and actual
earnings on pension plan investments 4,385,732 -
Total $ 10,602,445 $ 1,159,180
55 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2023
The $4,284,268 and $5,971,166 for the Miscellaneous and Safety plans, respectively, reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2024. Other amounts reported as deferred outflows or resources and deferred inflows of resources related to the pension plan will be recognized as pension expense as follows:

10. 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, 2022 actuarial valuation, the following current and former employees were covered by the benefit terms under the Retiree Health Plan:

Deferred Outflows Deferred Inflows
Safety Plan of Resources of Resources
Pension contributions subsequent to $ 5,971,166 $ -
measurement date
Differences between actual and expected experience 2,757,799 723,609 Changes in assumptions 6,718,873 -
Net differences between projected and actual
earnings on pension plan investments 10,522,672
Differences in proportions - 6,952,608
Differences between actual and proportionate
share of contributions 3,068,375 3,771,431
Total $ 29,038,885 $ 11,447,648
TOTAL ALL PLANS $ 39,641,330 $ 12,606,828
Fiscal Year Miscellaneous Safety
Ending June 30, Plan Plan Total
2024 $ 1,250,646 $ 2,916,496 $ 4,167,142
2025 814,101 2,192,120 3,006,221
2026 296,902 92,491 389,393
2027 2,797,348 6,418,964 9,216,312
TOTAL $ 5,158,997 $ 11,620,071 $ 16,779,068
Deferred Outflow/(Inflows) of Resources
56 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2023
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 2021-2022 the City contributed $807,273, including $198,343 in implicit rate subsidy, $446,634 deposit to CERBT, and $162,296 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, 2022 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, 2022
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 6.15%
Mortality MacLeod Watts Scale 2022
Post Retirement Benefit
Increase MacLeod Watts Scale 2022
Healthcare Cost Trend Rate 5.80% to 4.00%
Inactive employees or beneficiaries currently receiving benefits 84 Inactive employees entitled to but not yet receiving benefits 113 Active Employees 169
Total 366
57 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2023
E. Discount Rate
The discount rate used to measure the total OPEB liability was 6.00%. The projection of cash flows was used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determine contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries.

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

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, 2022:

Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
Balance at June 30, 2021 (MD) $ 6,517,938 $ 3,532,016 $ 2,985,922 Service cost 290,340 - 290,340
Interest on the total OPEB liability 397,377 - 397,377
Expected Investment Income 253,633
Contribution - employer - 606,337 (606,337)
Investment Experience - (753,979) 753,979
Benefit payments, including refunds
of employee contributions (370,663) (370,663) -
Administrative expenses - (919) 919
Net changes 317,054 (265,591) 582,645
Balance at June 30, 2022 (MD) $ 6,834,992 $ 3,266,425 $ 3,568,567 Increase (Decrease)
Current
1% Decrease Discount Rate 1% Increase

5.00% 6.00% 7.00%
Net OPEB Liability $ 4,469,482 $ 3,568,567 $ 2,823,561
58 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2023
H. Sensitivity of the Net OPEB Liability to Changes in Health Care Cost Trend Rates The following presentsthe net OPEB liability of the City if it were calculated using heath care cost trend ratesthat 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, 2022:

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 2023, the City recognized OPEB expense of $166,134. For the fiscal year ended June 30 2023, the City reported deferred outflows of resources related to OPEB from the following sources:

Deferred Deferred
Outflows of Inflows of
Resources Resources
OPEB contributions subsequent to $ 807,273 $ -
measurement date
Differences between actual and expected
experience 7,948 752,287
Changes in assumptions 28,950 622,780
Net differences between projected and actual
earnings on investments 290,675 -
Total $ 1,134,846 $ 1,375,067
59 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2023
The $807,273 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2022 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2024. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:

11. 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 disasters. 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, 2023, the City paid PLAN JPA $1,430,134 in premiums.

PLAN JPA has not determined 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, 2023, the City contribution was $1,064,725. Audited financial statements may be obtained from Bickmore Risk Services, 1831 K Street, Sacramento, CA 95814.

The City’s risk management activities are recorded in the Public Liability Self-Insurance and Workers’ Compensation Self-Insurance Internal Service Funds. Estimated liabilities are recorded when a loss is deemed probable and the amount of the loss can be reasonably estimated. Claims that have been incurred but not reported (IBNRs) are also included in the liability estimates. As discussed above, the City has coverage for such claims, but it has retained the risk for the deductible or uninsured portion of these claims. 60 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2023
The following is a summary of the changes in general liability claims and workers’ compensation liabilities for the past three fiscal years:

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

The City had no significant encumbrances outstanding as of June 30, 2023.

13. DEFICIT FUND BALANCE
The following funds reported a deficit fund balance at the end of the fiscal year, resulting from unavailable revenue due to the timing of payment receipts: Measure B-1986 ACTIA ($2,559,559), Community Development Act ($341,075), Miscellaneous State Grants ($45,000), and ACTC Discretionary Funds ($158,815).

General Liability
Claims
Workers'
Compensation
Claims Total 2022 2021
Liability at beginning of fiscal year $ 723,021 $ 2,142,887 2,865,908$ 2,382,289$ $ 2,039,226 Claims and changes in estimates 157,759 (112,759) 45,000 882,471 691,999 Claims Payments 206,451 (50,555) 155,896 (398,852) (348,936) Liability at end of fiscal year 1,087,231 1,979,573 3,066,804 2,865,908 2,382,289 Current Portion $ 10,052 $ 292,195 $ 302,247 $ 521,007 $ 716,512 2023
Project
Authorizations Expenditures
Unexpended
Authorizations
Central Avenue RR Design $ 2,754,000 $ 2,112,107 $ 641,893 Central Avenue Railroad Overpass Construction 29,000,000 - 29,000,000 New Civic Center 88,705,207 82,655,799 6,049,408
Thornton Avenue Overlay 992,514 755,319 237,195
Lindsay Tract Storm Drainage Improvements 2,287,630 518,638 1,768,992 Street Rubberized Capseal 1,400,000 478 1,399,522
LED Street Light Upgrade 1,793,424 - 1,793,424
61 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2023

14. 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, 2023 is as follows:

General Fund
Public
Safety
Impact Fees
Community
Service
Impact Fees
Traffic
Impact Fees
Housing
Impact Fees
Development
Maintenance
Fees
Park Impact
Fees
Nonspendable fund balance:

Supplies and other assets $ 155,064 $ - $ - $ - $ - $ - $ - 155,064 -
Restricted fund balance for:

Public safety - 948,791 - - - - -
Impact fees - - 722,460 12,600,624 44,592,886 4,202,644 5,806,206 Highway and streets - - - - - - -
Waste disposal program - - - - - - -
Recycling programs - - - - - - -
Health and welfare - - - - - - -
PEG activities - - - - - - -
Debt reserves - - - - - - -
Landscape and lighting - - - - - - -
- 948,791 722,460 12,600,624 44,592,886 4,202,644 5,806,206 Committed fund balance for:

Pension/OPEB Reserves 12,388,488 - - - - - -
12,388,488 - - - - - -
Assigned fund balance for:

Measure GG 11,631,072 - - - - - -
Equipment replacement 6,200,000 - - - - - -
Capital assets acquisition - - - - - - -
17,831,072 - - - - - -
Unassigned fund balance
Emergency reserves 11,430,299 - - - - - -
Fiscal uncertainty 10,725,024 - - - - - -
Unallocated (deficit) 12,686,443 - - - - - -
34,841,766 - - - - - -
Total Fund Balances $ 65,216,390 $ 948,791 $ 722,460 $ 12,600,624 $ 44,592,886 $ 4,202,644 $ 5,806,206 62 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2023
Measure B -
1986 ACTIA
Fund
Art in Public
Places
Capital
Projects
Fund
Public
Financing
Authority
Other
Government
Funds Total
$ - $ - $ - $ - $ 155,064
- - - - 155,064
- - - - 1,768,058 2,716,849
- 1,943,167 - - - 69,867,987
- - - - 12,940,212 12,940,212
- - - - 18,638 18,638
- - - - 381,377 381,377
- - - - 91,816 91,816
- - - - 729,596 729,596
- - - 86,425 - 86,425
- - - - 2,073,668 2,073,668
- 1,943,167 - 86,425 18,003,365 88,906,568
- - - - - 12,388,488
- - - - - 12,388,488
- - - - - 11,631,072
- - - - - 6,200,000
- - 16,115,511 - - 16,115,511
- - 16,115,511 - - 33,946,583
- - - - 11,430,299
- - - - 10,725,024
(2,559,559) - - (544,890) 9,581,994
(2,559,559) - - (544,890) 31,737,317
$ (2,559,559) $ 1,943,167 $ 16,115,511 $ 86,425 $ 17,458,475 $ 167,134,020 63 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2023

15. RESTATEMENTS OF NET POSITION AND FUND BALANCE
Fiduciary Fund
Measure B Measure B Capital
1986 ACTIA ACTC Project Custodial
Fund (1) Fund (2) Fund (3) Fund (4)
FY22 Fund Balances/Net Position, as previously reported $ (2,134,369) $ 1,616,576 $ 7,111,982 $ 2,706,273 Reclassification of revene incorrectly reported in prior fiscal year 30,209 (30,209) - Retention payment not expensed in the prior fiscal year - - (199,121) - Accounting standard change and compliance with GASB84 - - - (2,706,273) FY22 Fund Balances/Net Position, restated $ (2,104,160) $ 1,586,367 $ 6,912,861 $ - (1) Revenue received from ACTC should have been applied to this fund but was instead credited to the Measure B ACTC fund.

The revenue was for a prior year COVID 19 Rapid Response Bicycle and Pedestrian Grant Program. (2) Revenue received from ACTC was inadvertantly credited to the Measure B ACTC fund when it should be been applied to the Measure B 1986 ACTIA fund. The revenue was for a prior year COVID 19 Rapid Response Bicycle and Pedestrian Grant Program. (3) In the prior fiscal year, a retention payment for the New Civic Center Project was not recognized as an expense, and instead charged to a retention liability account.
(4) To comply with GASB84, this adjustment is being made to unrecognize a fiduciary ending net position from the prior fiscal year.

Governmental Funds
64 REQUIRED SUPPLEMENTARY INFORMATION
656565
Original Final Actual
Variance with
Final Budget

REVENUES
General property taxes $ 27,289,000 $ 28,909,000 $ 28,563,981 $ (345,019) Other local taxes 30,056,000 34,669,000 42,048,133 7,379,133 Licenses permits and fees 8,519,000 8,519,000 4,022,058 (4,496,942) Intergovernmental 433,000 433,000 315,286 (117,714)
Charges for services 1,448,000 1,448,000 1,726,821 278,821 Fines and forefeitures 634,000 634,000 541,144 (92,856) Use of money and property 488,000 488,000 2,025,059 1,537,059 Other revenue 116,000 116,000 378,359 262,359
Total revenues 68,983,000 75,216,000 79,620,841 4,404,841

EXPENDITURES
Current:

General government 9,693,000 10,401,354 9,854,487 546,867 Public safety:

Fire 11,904,000 11,904,000 11,826,858 77,142
Police 26,877,000 26,894,080 25,010,516 1,883,564
Community development 2,785,000 3,065,526 2,483,594 581,932 Recreation 5,509,000 5,569,000 5,119,440 449,560
Public works 11,210,000 12,043,709 10,655,287 1,388,422 Capital outlay - subscriptions - - 718,619 (718,619)
Capital outlay - (1,746) 121,584 (123,330)
Debt Service:

Principal repayment - subscriptions - - 208,906 (208,906) Interest and fiscal charges - subscriptions - - 6,077 (6,077) Total current 67,978,000 69,875,923 66,005,368 3,870,555 Total expenditures 67,978,000 69,875,923 66,005,368 3,870,555 Revenues over (under) expenditures 1,005,000 5,340,077 13,615,473 8,275,396

OTHER FINANCING SOURCES (USES)
Other financing sources (subscriptions) - - 718,619 718,619 Transfers in 1,822,000 6,538,046 1,283,949 (5,254,097)
Transfers out (5,651,000) (14,671,046) (10,555,010) 4,116,036 Total other financing sources (uses) (3,829,000) (8,133,000) (8,552,442) (419,442) Net change in fund balances (2,824,000) (2,792,923) 5,063,031 7,855,954 Fund balances - beginning 60,153,359 60,153,359 60,153,359 - Fund balances - ending $ 57,329,359 $ 57,360,436 $ 65,216,390 $ 7,855,954 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, 2023
66 Original Final Actual
Variance with
Final Budget

REVENUES
Intergovernmental $ 5,900,000 $ 5,900,000 $ 2,967,833 $ (2,932,167) Total revenues 5,900,000 5,900,000 2,967,833 (2,932,167)

EXPENDITURES
Current:

General government - 44,998 44,998 -
Community development - 327,500 45,627 281,873
Recreation - 300,000 93,259 206,741
Total current - 672,498 183,884 488,614
Total expenditures - 672,498 183,884 488,614
Revenues over (under) expenditures 5,900,000 5,227,502 2,783,949 (2,443,553)

OTHER FINANCING SOURCES (USES)
Transfers out (2,129,000) (3,629,000) (2,783,949) 845,051 Total other financing sources (uses) (2,129,000) (3,629,000) (2,783,949) 845,051 Net change in fund balances 3,771,000 1,598,502 - (1,598,502) Fund balances - beginning - - - -
Fund balances - ending $ 3,771,000 $ 1,598,502 $ - $ (1,598,502) Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual ARPA
For the Year Ended June 30, 2023
676767
Original Final Actual
Variance with
Final Budget

REVENUES
Licenses permits and fees $ 1,944,000 $ 1,944,000 $ 298,307 $ (1,645,693) Use of money and property - - 15,897 15,897
Total revenues 1,944,000 1,944,000 314,204 (1,629,796)
Revenues over (under) expenditures 1,944,000 1,944,000 314,204 (1,629,796) Net change in fund balances 1,944,000 1,944,000 314,204 (1,629,796) Fund balances - beginning $ 634,587 $ 634,587 $ 634,587 $ - Fund balances - ending $ 2,578,587 $ 2,578,587 $ 948,791 $ (1,629,796) 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, 2023
686868
Original Final Actual
Variance with
Final Budget

REVENUES
Licenses permits and fees $ 1,158,000 $ 1,158,000 $ 213,806 $ (944,194) Use of money and property - - 12,143 12,143
Total revenues 1,158,000 1,158,000 225,949 (932,051)

EXPENDITURES
Current:

Public works 490,000 490,000 - 490,000
Total current 490,000 490,000 - 490,000
Total expenditures 490,000 490,000 - 490,000
Revenues over (under) expenditures 668,000 668,000 225,949 (442,051) Net change in fund balances 668,000 668,000 225,949 (442,051) Fund balances - beginning 496,511 496,511 496,511 -
Fund balances - ending $ 1,164,511 $ 1,164,511 $ 722,460 $ (442,051) 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, 2023
696969
Original Final Actual
Variance with
Final Budget

REVENUES
Licenses permits and fees 2,863,000 $ 2,863,000 $ 596,629 $ (2,266,371) $ Use of money and property - - 216,272 216,272
Total revenues 2,863,000 2,863,000 812,901 (2,050,099)

EXPENDITURES
Current:

Public works - 1,000,000 603 999,397
Capital outlay - - 16,285 (16,285)
Total current - 1,000,000 16,888 983,112
Total expenditures - 1,000,000 16,888 983,112
Revenues over (under) expenditures 2,863,000 1,863,000 796,013 (1,066,987) Net change in fund balances 2,863,000 1,863,000 796,013 (1,066,987) Fund balances - beginning $ 11,804,610 11,804,610 $ 11,804,611 $ - $ Fund balances - ending $ 13,667,610 14,667,610 $ 12,600,624 $ (1,066,986) $ Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Traffic Impact Fees
For the Year Ended June 30, 2023
70 Original Final Actual
Variance with
Final Budget

REVENUES
Licenses permits and fees $ 3,341,000 $ 3,341,000 $ 1,561,670 $ (1,779,330) Use of money and property - - 709,383 709,383
Total revenues 3,341,000 3,341,000 2,271,053 (1,069,947)

EXPENDITURES
Current:

Community development 141,000 141,000 66,676 74,324
Total current 141,000 141,000 66,676 74,324
Total expenditures 141,000 141,000 66,676 74,324
Revenues over (under) expenditures 3,200,000 3,200,000 2,204,377 (995,623)

OTHER FINANCING SOURCES (USES)
Transfers in - 1,500,000 1,500,000 -
Total other financing sources (uses) - 1,500,000 1,500,000 - Net change in fund balances 3,200,000 4,700,000 3,704,377 (995,623) Fund balances - beginning 40,888,509 40,888,509 40,888,509 - Fund balances - ending $ 44,088,509 $ 45,588,509 $ 44,592,886 $ (995,623) Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Housing Impact Fee
For the Year Ended June 30, 2023
717171
Original Final Actual
Variance with
Final Budget

REVENUES
Licenses permits and fees $ 54,000 $ 54,000 $ 551,689 $ 497,689 Use of money and property - - 75,557 75,557
Intergovernmental - - 160,000 160,000
Total revenues 54,000 54,000 787,246 733,246

EXPENDITURES
Current:

Community development 645,000 1,020,931 877,605 143,326 Capital outlay - - 1,170 (1,170)
Total current 645,000 1,020,931 878,775 142,156
Total expenditures 645,000 1,020,931 878,775 142,156
Revenues over (under) expenditures (591,000) (966,931) (91,529) 875,402 Net change in fund balances (591,000) (966,931) (91,529) 875,402 Fund balances - beginning 4,294,173 4,294,173 4,294,173 - Fund balances - ending $ 3,703,173 $ 3,327,242 $ 4,202,644 $ 875,402 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, 2023
72 Original Final Actual
Variance with
Final Budget

REVENUES
Licenses permits and fees $ 3,406,000 $ 3,406,000 $ 261,100 $ (3,144,900) Use of money and property - - 99,988 99,988
Total revenues 3,406,000 3,406,000 361,088 (3,044,912)

EXPENDITURES
Current:

Public works 2,578,600 2,836,875 - 2,836,875
Total current 2,578,600 2,836,875 - 2,836,875
Total expenditures 2,578,600 2,836,875 - 2,836,875
Revenues over (under) expenditures 827,400 569,125 361,088 (208,037) Net change in fund balances 827,400 569,125 361,088 (208,037) Fund balances - beginning 5,445,118 5,445,118 5,445,118 - Fund balances - ending $ 6,272,518 $ 6,014,243 $ 5,806,206 $ (208,037) 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, 2023
737373
Original Final Actual
Variance with
Final Budget

EXPENDITURES
Capital outlay - 474,874 455,399 19,475
Total expenditures - 474,874 455,399 19,475
Revenues over (under) expenditures - 474,874 455,399 19,475 Net change in fund balances - (474,874) (455,399) 19,475 Fund balances - beginning, as restated (2,104,160) (2,104,160) (2,104,160) - Fund balances - ending $ (2,104,160) $ (2,579,034) $ (2,559,559) $ 19,475 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, 2023
74 CITY OF NEWARK

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

BUDGETARY ACCOUNTING AND CONTROL
JUNE 30, 2023
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 submits to 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, 2023, the following funds had no adopted annual budgets:

Measure B 1986 ACTIA
Waste Augmentation Fund
Recycle AB939
ACTC Discretionary Funds
Landscape and Lighting Districts
b. Expenditures over Appropriations
The following Funds had expenditures over appropriations for the fiscal year ended June 30, 2023:

Fund Budget Actual Excess
Paramedic Tax - $ 4,409 $ 4,409
State Senate Bills - 10,197 10,197
75 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)
2016 2017 2018 2019 2020 2021 2022 2023
Total Pension Liability
Service Cost $ 1,428,480 $ 1,526,903 $ 1,741,959 $ 1,958,908 $ 2,015,761 $ 1,935,397 $ 1,901,824 $ 2,119,396 Interest 7,153,135 7,430,465 7,606,416 7,893,622 8,282,270 8,658,150 8,849,497 8,888,163 Difference between Expected and Actual Experience (336,919) (296,888) 98,578 1,112,052 1,745,541 1,582,587 (891,445) (1,907,477) Changes in Assumptions (1,677,534) - 6,040,949 (761,857) - - - 3,418,942 Benefit Payments, Including
Refunds of Employee Contributions (5,054,891) (5,339,676) (5,585,662) (5,994,674) (6,387,039) (6,779,708) (7,238,583) (7,415,003) Net Change in Total Pension Liability 1,512,271 3,320,804 9,902,240 4,208,051 5,656,533 5,396,426 2,621,293 5,104,021 Total Pension Liability - Beginning 97,332,688 98,844,959 102,165,763 112,068,003 116,276,054 121,932,587 127,329,013 129,950,306 Total Pension Liability - Ending (a) $ 98,844,959 $ 102,165,763 $ 112,068,003 $ 116,276,054 $ 121,932,587 $ 127,329,013 $ 129,950,306 $ 135,054,327 Plan Fiduciary Net Position
Contributions - Employer 1,771,614 2,089,006 2,252,015 3,091,582 3,224,109 3,532,890 3,874,896 9,282,730 Contributions - Employee 980,547 1,026,537 1,148,693 1,232,724 1,208,146 1,219,082 1,203,390 1,224,304 Plan to Plan Resource Movement - - - (176) - - - -
Net Investment Income 1,509,133 377,065 7,421,654 6,085,231 5,029,454 3,929,919 18,157,424 (7,248,311) Benefit Payments, Including
Refunds of Employee Contributions (5,054,891) (5,339,676) (5,585,662) (5,994,674) (6,387,039) (6,779,708) (7,238,583) (7,415,003) Administrative Expense (76,731) (41,512) (97,779) (111,206) (53,848) (110,635) (80,184) (59,918) Other Miscellaneous Income/(Expense) 95 - (401) (211,182) 176 - - - Net Change in Fiduciary Net Position (870,233) (1,888,580) 5,138,520 4,092,299 3,020,998 1,791,548 15,916,943 (4,216,198) Plan Fiduciary Net Position - Beginning 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 Fiduciary Net Position - Ending (b) $ 68,114,811 $ 66,226,231 $ 71,364,751 $ 75,457,050 $ 78,478,048 $ 80,269,596 $ 96,186,539 $ 91,970,341 Plan Net Pension Liability/(Assets) - Ending (a) - (b) $ 30,730,148 $ 35,939,532 $ 40,703,252 $ 40,819,004 $ 43,454,539 $ 47,059,417 $ 33,763,767 $ 43,083,986 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 68.91% 64.82% 63.68% 64.89% 64.36% 63.04% 74.02% 68.10% Covered Payroll $ 8,581,003 $ 9,334,103 $ 9,888,505 $ 10,925,309 $ 1,151,586 $ 11,180,800 $ 11,037,862 $ 11,297,419 Plan Net Pension Liability/(Asset) as a Percentage of
Covered Payroll 358.12% 385.03% 411.62% 373.62% 3773.45% 420.89% 305.89% 381.36% (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 eight 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:

Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rates used to discount liabilities was formed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measure dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014.
76 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 2023
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 $ 4,284,268 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) (4,284,268) Contribution Deficiency (Excess) - - - - - - - (5,000,000) - Covered Payroll 8,581,003 9,334,103 9,888,505 10,925,309 11,151,586 11,180,801 11,037,862 11,297,419 11,653,292 Contributions as a Percentage of Covered Payroll 20.67% 22.38% 22.78% 26.88% 28.98% 31.60% 35.09% 37.91% 36.76% (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 eight years are shown. 77 City of Newark
Cost-Sharing Multiple Employer Safety Plan
Schedule of Proportionate Share of the Net Pension Liability As of June 30, for the Last Ten Fiscal Years (1)
2016 2017 2018 2019 2020 2021 2022 2023
Measurement Date 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 Proportion of the Net Pension Liability* 0.66006% 0.62991% 0.61737% 0.64142% 0.63196% 0.63207% 0.68191% 57.68900% Proportionate Share of the Net Pension Liability $ 45,305,899 $ 54,506,282 $ 61,226,071 $ 61,809,192 $ 64,757,434 $ 68,772,104 $ 36,879,425 $ 66,635,474 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 Proportionate Share of the Net Pension Liability
as a Percentage of Covered Payroll 630.4% 760.0% 831.5% 837.4% 717.5% 927.2% 474.2% 860.9% Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 78.40% 74.06% 65.64% 66.76% 66.82% 66.03% 82.29% 69.69% * 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 eight 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:

Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rates used to discount liabilities was formed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measure dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014.
78 City of Newark
Cost-Sharing Multiple Employer Safety Plan
Schedule of Plan Contributions
As of June 30, for the Last Ten Fiscal Years (1)
2016 2017 2018 2019 2020 2021 2022 2023
Actuarially Determined Contribution $ 3,262,170 $ 3,595,377 $ 4,766,942 $ 5,046,191 $ 5,386,172 $ 5,836,100 $ 5,493,067 $ 5,971,166 Contribution in Relation to the Actuarially Determined Contribution (3,262,170) (3,595,377) (4,766,942) (5,046,191) (5,386,172) (15,836,100) (5,493,067) (5,971,166) Contribution Deficiency (Excess) - - - - - (10,000,000) - - Covered Payroll 7,171,629 7,362,907 7,381,368 9,025,651 7,417,018 7,777,066 7,740,113 7,096,538 Contributions as a Percentage of Covered Payroll 45.5% 48.8% 64.6% 55.9% 72.6% 75.0% 71.0% 84.1% (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 eight years as shown. 79 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)
2019 2020 2021 2022 2023
Total OPEB Liability
Service cost $ 339,211 $ 310,710 $ 270,070 $ 278,172 $ 290,340 Interest on the total OPEB liability 387,888 463,155 378,535 398,066 397,377 Actual and expected experience difference - (1,516,027) - 10,652 - Changes in assumptions 103,950 (555,472) - (355,369) -
Benefit payments (223,221) (353,760) (322,724) (339,677) (370,663) Net change in total OPEB liability 607,828 (1,651,394) 325,881 (8,156) 317,054 Total OPEB liability - beginning 7,243,779 7,851,607 6,200,213 6,526,094 6,517,938 Total OPEB liability - ending (a) 7,851,607 6,200,213 6,526,094 6,517,938 6,834,992 Plan Fiduciary Net Position
Contribution - employer 354,000 576,617 697,381 339,677 606,337 Net investment income 126,130 130,911 91,520 761,949 (500,346) Benefit payments (223,221) (353,760) (322,724) (339,677) (370,663) Administrative expense (1,002) (472) (1,296) (1,049) (919) Investment experience 23,308 - - - -
Other expenses (2,218) - - - -
Net change in plan fiduciary net position 276,997 353,296 464,881 760,900 (265,591) Plan fiduciary net position - beginning 1,675,942 1,952,939 2,306,235 2,771,116 3,532,016 Plan fiduciary net position - ending (b) 1,952,939 2,306,235 2,771,116 3,532,016 3,266,425 Net OPEB Liability - ending (a) - (b) $ 5,898,668 $ 3,893,978 $ 3,754,978 $ 2,985,922 $ 3,568,567 Plan fiduciary net position as a percentage of the total OPEB liability 24.87% 37.20% 42.46% 54.19% 47.79% Covered-employee payroll 17,438,452 20,956,996 18,991,910 18,685,140 19,245,694 Net OPEB liability as a percentage of covered-employee payroll 33.83% 18.58% 19.77% 15.98% 18.54% (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 2023, 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%. 8080
City of Newark
Schedule of OPEB Contributions
As of June 30, for the Last Ten Fiscal Years (1)
2019 2020 2021 2022 2023
Actuarially Determined Contribution $ 572,265 $ 588,500 $ 476,313 $ 490,602 $ 446,634 Contribution in Relation to the Actuarially Determined Contributions (576,617) (697,381) (339,677) (606,337) (807,273) Contribution Deficiency (Excess) $ (4,352) $ (108,881) $ 136,636 $ (115,735) $ (360,639) Covered-employee payroll $ 20,856,996 $ 18,991,910 $ 18,685,140 $ 19,245,694 $ 21,684,866 Contributions as a percentage of covered-employee payroll 2.76% 3.67% 1.82% 3.15% 3.72% (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 2023 were derived from the June 2021 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 2022
8181
8282

SUPPLEMENTARY INFORMATION
8383

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.

ACTC Discretionary Funds – Accounts for funding from the Alameda County Transportation Commission for projects and programs that benefit the Alameda County transportation system.

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.
8484
State Senate Bills Fund – Accounts for Senate Bill 1186, State CASp fee which is mandated by California SB1186 and its purpose is to increase disability access and compliance with construction related accessibility requirements. It also accounts for the Building Standards Fee (SB1473) and the California Strong Motion Instrumentation Program (CSMIP).

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

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

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

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. 85 City of Newark
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2023
Alameda Community
Paramedic County Police Development Waste
Tax Fire Fees Grants Act (HCD) Augmentation
ASSETS
Pooled cash and investments $ 1,447,865 $ 54,385 $ 247,321 $ - $ 18,638 Receivables:

Accounts - - - - -
Intergovernmental - - 11,719 353,984 -
Other - - - - -
Total assets $ 1,447,865 $ 54,385 $ 259,040 $ 353,984 $ 18,638

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable $ - $ - $ 746 $ 10,736 $ -
Accrued liabilities - - 444 - -
Unearned revenues - - - - -
Refundable deposits - - - - -
Due to other funds - - - 330,339 -
Total liabilities - - 1,190 341,075 -

DEFERRED INFLOW OR RESOURCES
Unavailable revenue - - - 353,984 -
Total deferred inflow or resources - - - 353,984 -
Fund Balances (Deficit):

Restricted 1,447,865 54,385 257,850 - 18,638
Unassigned (deficit) - - - (341,075) -
Total fund balances (deficit) 1,447,865 54,385 257,850 (341,075) 18,638 Total liabilities and fund balances (deficits) $ 1,447,865 $ 54,385 $ 259,040 $ 353,984 $ 18,638 Special Revenue Funds
86 Measure F ACTC
Recycle Measure D - Gas Tax Measure B - Measure BB (VRF) Discretionary RMRA AB939 Waste Mgmt Funds ACTC ACTC ACTC Funds SB1
$ 57,164 $ 310,160 $ 3,239,942 $ 1,549,356 $ 3,283,343 $ 420,724 $ - $ 3,578,205 - - - - - - - -
- 35,258 103,773 - 345,311 39,215 150,874 185,421
- - - - - - - -
$ 57,164 $ 345,418 $ 3,343,715 $ 1,549,356 $ 3,628,654 $ 459,939 $ 150,874 $ 3,763,626 $ - $ 15,494 $ 74,640 $ 56,647 $ 139,643 $ - $ 158,815 $ 105,876 - 5,711 - - 186,594 - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- 21,205 74,640 56,647 326,237 - 158,815 105,876
- - - - 174,883 - 150,874 -
- - - - 174,883 - 150,874 -
57,164 324,213 3,269,075 1,492,709 3,127,534 459,939 - 3,657,750 - - - - - - (158,815) -
57,164 324,213 3,269,075 1,492,709 3,127,534 459,939 (158,815) 3,657,750 $ 57,164 $ 345,418 $ 3,343,715 $ 1,549,356 $ 3,628,654 $ 459,939 $ 150,874 $ 3,763,626 Special Revenue Funds
87 City of Newark
Combining Balance Sheet
Non-Major Governmental Funds, Continued
June 30, 2023
Capital Projects
Fund
Hazardous State Auto Break-in State
Materials Senate Bills Prevention Construction PEG
Program Fund AB74 Maintenance Fees
ASSETS
Pooled cash and investments $ 25,576 $ 120,492 $ 628,117 $ 949,122 $ 712,660 Receivables:

Accounts - - - -
Intergovernmental - - - - -
Other - - - - 16,936
Total assets $ 25,576 $ 120,492 $ 628,117 $ 949,122 $ 729,596

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable $ - $ 5,620 $ 26,250 $ 2,745 $ -
Accrued liabilities - - - - -
Unearned revenues - - 593,909 - -
Refundable deposits - 48,632 - 12,769 -
Due to other funds - - - 403 -
Total liabilities - 54,252 620,159 15,917 -

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

Restricted 25,576 66,240 7,958 933,205 729,596
Unassigned - - - - -
Total fund balances 25,576 66,240 7,958 933,205 729,596 Total liabilities and fund balances $ 25,576 $ 120,492 $ 628,117 $ 949,122 $ 729,596 Special Revenue Funds
88 Total
Misc. Landscape Non-Major
State and Lighting Governmental
Grants District Funds
$ 24,886 $ 2,082,512 $ 18,750,468
1,845,000 4,536 1,849,536
- - 1,225,555
- - 16,936
$ 1,869,886 $ 2,087,048 $ 21,842,495
$ - $ 13,380 $ 610,592
- - 192,749
1,869,886 - 2,463,795
- - 61,401
- - 330,742
1,869,886 13,380 3,659,279
45,000 - $ 724,741
45,000 - $ 724,741
- 2,073,668 18,003,365
(45,000) - (544,890)
(45,000) 2,073,668 17,458,475
$ 1,869,886 $ 2,087,048 $ 21,842,495
Capital Projects Funds
89 City of Newark
Combined Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the year ended June 30, 2023
Alameda Community Waste
Paramedic County Police Development Augmentation
Tax Fire Fees Grants Act (HCD) Fund
REVENUES:

Special assessments $ 265,610 $ - $ - $ - $ -
Other governmental agencies - - 199,423 45,600 -
Use of money and property - - 2,355 - -
License, permits and fees - - 18,400 - -
Other revenues - - - - -
Total revenues 265,610 - 220,178 45,600 -
EXPENDITURES:

Current:

Public safety:

Fire 4,409 - - - -
Police - - 209,920 - -
Public works - - - - -
Community development - - - 52,400 -
Recreation - - - - -
Capital outlay - - - 215,312 -
Total expenditures 4,409 - 209,920 267,712 -

REVENUE OVER
(UNDER) EXPENDITURES 261,201 - 10,258 (222,112) -
OTHER FINANCING USES:

Transfers out - - - - -
Total other financing uses - - - - -
Net change in fund balances 261,201 - 10,258 (222,112) - FUND BALANCES (Deficit):

Beginning of year, restated 1,186,664 54,385 247,592 (118,963) 18,638 End of year $ 1,447,865 $ 54,385 $ 257,850 $ (341,075) $ 18,638 Special Revenue Funds
90 Measure F ACTC
Recycle Measure D - Gas Tax Measure B - Measure BB - (VRF) Discretionary RMRA AB 939 Waste Mgmt Funds ACTC ACTC ACTC Funds SB1
$ - $ - $ - $ - $ - $ - $ - $ -
- 173,701 1,185,421 6,318 1,974,958 213,335 - 1,058,162 - 7,587 55,443 27,549 51,681 6,543 - 58,493
- - - - - - - -
- - 11,000 - - - - -
- 181,288 1,251,864 33,867 2,026,639 219,878 - 1,116,655 - - - - - - - -
- - - - - - - -
- 336,953 305,577 2,500 - - - -
- - - - - - - -
- - - - 186,593 - - -
- - 535,635 125,025 461,665 - 158,815 105,876
- 336,953 841,212 127,525 648,258 - 158,815 105,876
- (155,665) 410,652 (93,658) 1,378,381 219,878 (158,815) 1,010,779 - (150,000) - - - - - -
- (150,000) - - - - - -
- (305,665) 410,652 (93,658) 1,378,381 219,878 (158,815) 1,010,779 57,164 629,878 2,858,423 1,586,367 1,749,153 240,061 - 2,646,971 $ 57,164 $ 324,213 $ 3,269,075 $ 1,492,709 $ 3,127,534 $ 459,939 $ (158,815) $ 3,657,750 Special Revenue Funds
91 City of Newark
Combined Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds, Continued
For the year ended June 30, 2023
Capital Projects
Fund
Hazardous State Auto Break-in State
Materials Senate Bills Prevention Construction PEG
Program Fund AB74 Maintenance Fees
REVENUES:

Special assessments $ - $ - $ - $ - $ -
Other governmental agencies 7,058 - 128,851 184,500 -
Use of money and property 441 - 7,958 16,350 12,070
License, permits and fees - 12,448 - - 68,158
Other revenues - 3 - - -
Total revenues 7,499 12,451 136,809 200,850 80,228
EXPENDITURES:

Current:

Public safety:

Fire - - - -
Police - - 128,851 - -
Public works 7,058 10,196 - - -
Community development - - - -
Recreation - - - - -
Capital outlay - - - - -
Total expenditures 7,058 10,196 128,851 - -

REVENUE OVER
(UNDER) EXPENDITURES 441 2,255 7,958 200,850 80,228

OTHER FINANCING
Transfers out - - - - -
Total other financing uses - - - - -
Net change in fund balances 441 2,255 7,958 200,850 80,228 FUND BALANCES:

Beginning of year, restated 25,135 63,985 - 732,355 649,368 End of year $ 25,576 $ 66,240 $ 7,958 $ 933,205 $ 729,596 Special Revenue Funds
92 Total
Misc. Landscape Non-Major
State and Lighting Governmental
Grants District Funds
$ - $ 302,035 $ 567,645
- - 5,177,327
- 35,411 281,881
- - 99,006
- - 11,003
- 337,446 6,136,862
- - 4,409
- - 338,771
35,003 169,364 866,651
- - 52,400
- - 186,593
- - 1,602,328
35,003 169,364 3,051,152
(35,003) 168,082 3,085,710
- - (150,000)
- - (150,000)
(35,003) 168,082 2,935,710
(9,997) 1,905,586 14,522,765
$ (45,000) $ 2,073,668 $ 17,458,475
Capital Projects Funds
93 Original Final Actual
Variance with
Final Budget

REVENUES
Special assessments $ 233,000 $ 233,000 $ 265,610 $ 32,610 Total revenues 233,000 233,000 265,610 32,610

EXPENDITURES
Current:

Public Safety:

Fire - - 4,409 (4,409)
Total current - - 4,409 (4,409)
Total expenditures - - 4,409 (4,409)
Net change in fund balances 233,000 233,000 261,201 28,201 Fund balances - beginning 1,186,664 1,186,664 1,186,664 - Fund balances - ending $ 1,419,664 $ 1,419,664 $ 1,447,865 $ 28,201 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, 2023
94 Original Final Actual
Variance with
Final Budget

EXPENDITURES
Current:

Public Safety:

Fire 4,000 4,000 - 4,000
Total current 4,000 4,000 - 4,000
Total expenditures 4,000 4,000 - 4,000
Net change in fund balances (4,000) (4,000) - 4,000
Fund balances - beginning 54,385 54,385 54,385 -
Fund balances - ending $ 50,385 $ 50,385 $ 54,385 $ 4,000 Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Alameda County Fire Fees
For the Year Ended June 30, 2023
95 Original Final Actual
Variance with
Final Budget

REVENUES
Licenses permits and fees $ - $ 18,000 $ 18,400 $ 400
Intergovernmental 170,000 318,000 199,423 (118,577)
Use of money and property - - 2,355 2,355
Total revenues 170,000 336,000 220,178 (115,822)

EXPENDITURES
Current:

Public Safety:

Police 35,000 254,000 209,920 44,080
Recreation - 37,404 - 37,404
Total current 35,000 291,404 209,920 81,484
Total expenditures 35,000 291,404 209,920 81,484
Net change in fund balances 135,000 44,596 10,258 (34,338) Fund balances - beginning 247,592 247,592 247,592 -
Fund balances - ending $ 382,592 $ 292,188 $ 257,850 $ (34,338) 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, 2023
96 Original Final Actual
Variance with
Final Budget

REVENUES
Other governmental agencies $ 235,000 138,000 $ 45,600$ $ (189,400) Total revenues 138,000 235,000 45,600 (189,400)

EXPENDITURES
Current:

Community development - 600,406 52,400 548,006
Total current - 600,406 52,400 548,006
Capital outlay - 215,312 - (215,312)
Total expenditures - 600,406 267,712 332,694
Net change in fund balances 138,000 (365,406) (222,112) 143,294 Fund balances - beginning (118,963) (118,963) (118,963) - Fund balances (deficit) - ending $ 19,037 $ (484,369) $ 143,294 (341,075) $ 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, 2023
97 Original Final Actual
Variance with
Final Budget

REVENUES
Intergovernmental 125,000 $ 125,000$ 173,701 $ 48,701 $ Use of money and property - - 7,587 7,587
Total revenues 125,000 125,000 181,288 56,288

EXPENDITURES
Current:

Public works 45,000 566,553 336,953 229,600
Total expenditures 45,000 566,553 336,953 229,600
Revenues over (under) expenditures 80,000 (441,553) (155,665) 285,888

OTHER FINANCING SOURCES (USES)
Transfers out - - (150,000) (150,000)
Total other financing sources (uses) - - (150,000) (150,000) Net change in fund balances 80,000 (441,553) (305,665) 135,888 Fund balances - beginning 629,878 629,878 629,878 -
Fund balances - ending $ 188,325$ 324,213 709,878 $ 135,888 $ 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, 2023
98 Original Final Actual
Variance with
Final Budget

REVENUES
Intergovernmental $ 1,413,000 $ 1,413,000 $ 1,185,421 $ (227,579) Use of money and property - - 55,443 55,443
Other revenue - - 11,000 11,000
Total revenues 1,413,000 1,413,000 1,251,864 (161,136)

EXPENDITURES
Current:

Public works 3,150,000 1,428,871 305,577 1,123,294
Total current 3,150,000 1,428,871 305,577 1,123,294
Capital outlay - - 535,635 (535,635)
Total expenditures 3,150,000 1,428,871 841,212 587,659
Net change in fund balances (1,737,000) (15,871) 410,652 426,523 Fund balances - beginning 2,858,423 2,858,423 2,858,423 - Fund balances - ending $ 1,121,423 $ 2,842,552 $ 3,269,075 $ 426,523 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, 2023
9999
Original Final Actual
Variance with
Final Budget

EXPENDITURES
Current:

Public works - (25,073) 35,003 (60,076)
Total current - (25,073) 35,003 (60,076)
Total expenditures - (25,073) 35,003 (60,076)
Net change in fund balances - 25,073 (35,003) (60,076)
Fund balances - beginning $ (9,997) $ (9,997) $ (9,997) $ - Fund balances - ending $ (9,997) $ 15,076 $ (45,000) $ (60,076) 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, 2023
100
Original Final Actual
Variance with
Final Budget

REVENUES
Intergovernmental $ - $ - $ 6,318 $ 6,318
Use of money and property - - 27,549 27,549
Total revenues - - 33,867 33,867

EXPENDITURES
Current:

Public works - - 2,500 (2,500)
Total current - - 2,500 (2,500)
Capital outlay - 61,900 125,025 (63,125)
Total expenditures - 61,900 127,525 (65,625)
Net change in fund balances - (61,900) (93,658) (31,758) Fund balances - beginning, as restated 1,586,367 1,586,367 1,586,367 - Fund balances - ending $ 1,586,367 $ 1,524,467 $ 1,492,709 $ (31,758) 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, 2023
101
Original Final Actual
Variance with
Final Budget

REVENUES
Intergovernmental $ 1,619,000 $ 1,619,000 $ 1,974,958 $ 355,958 Use of money and property - - 51,681 51,681
Total revenues 1,619,000 1,619,000 2,026,639 407,639

EXPENDITURES
Current:

Recreation 220,000 220,000 186,593 33,407
Total current 220,000 220,000 186,593 33,407
Capital outlay 350,000 461,718 461,665 53
Total expenditures 570,000 681,718 648,258 33,460
Net change in fund balances 1,049,000 937,282 1,378,381 441,099 Fund balances - beginning 1,749,154 1,749,154 1,749,153 - Fund balances - ending $ 2,798,154 $ 2,686,436 $ 3,127,534 $ 441,099 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, 2023
102
Original Final Actual
Variance with
Final Budget

REVENUES
Intergovernmental $ 195,000 $ 195,000 $ 213,335 $ 18,335 Use of money and property - - 6,543 6,543
Total revenues 195,000 195,000 219,878 24,878

EXPENDITURES
Current:

Public works 80,000 80,000 - 80,000
Total expenditures 80,000 80,000 - 80,000
Net change in fund balances 115,000 115,000 219,878 104,878 Fund balances - beginning 240,061 240,061 240,061 -
Fund balances - ending $ 355,061 $ 355,061 $ 459,939 $ 104,878 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, 2023
103
Original Final Actual
Variance with
Final Budget

REVENUES
Intergovernmental $ 1,114,000 $ 1,114,000 $ 1,058,162 $ (55,838) Use of money and property - - 58,493 58,493
Total revenues 1,114,000 1,114,000 1,116,655 2,655

EXPENDITURES
Capital outlay 500,000 453,876 105,876 348,000
Total expenditures 500,000 453,876 105,876 348,000
Net change in fund balances 660,124 614,000 1,010,779 350,655 Fund balances - beginning 2,646,971 2,646,971 2,646,971 - Fund balances - ending $ 3,307,095 3,260,971 $ 3,657,750 $ 350,655 $ 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, 2023
104
Original Final Actual
Variance with
Final Budget

REVENUES
Intergovernmental $ 13,000 $ 13,000 $ 7,058 $ (5,942)
Use of money and property - - 441 441
Total revenues 13,000 13,000 7,499 (5,501)

EXPENDITURES
Current:

Public works 13,000 13,000 7,058 5,942
Total current 13,000 13,000 7,058 5,942
Total expenditures 13,000 13,000 7,058 5,942
Net change in fund balances - - 441 441
Fund balances - beginning 25,135 25,135 25,135 -
Fund balances - ending $ 25,135 $ 25,135 $ 25,576 $ 441 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, 2023
105
Original Final Actual
Variance with
Final Budget

REVENUES
Licenses permits and fees $ - $ - $ 12,448 $ 12,448
Revenue - Other revenue - - 3 3
Total revenues - - 12,451 12,451

EXPENDITURES
Current:

Public works - - 10,196 (10,196)
Total expenditures - - 10,196 (10,196)
Net change in fund balances - - 2,255 2,255
Fund balances - beginning, restated 63,985 63,985 63,985 - Fund balances - ending $ 63,985 $ 63,985 $ 66,240 $ 2,255 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, 2023
106
Original Final Actual
Variance with
Final Budget

REVENUES
Intergovernmental $ - $ 34,402 $ 128,851 $ 94,449
Use of money and property - - 7,958 7,958
Total revenues - 34,402 136,809 102,407

EXPENDITURES
Current:

Police 146,000 180,402 128,851 51,551
Total current 146,000 180,402 128,851 51,551
Total expenditures 146,000 180,402 128,851 51,551
Net change in fund balances (146,000) (146,000) 7,958 153,958 Fund balances - beginning - - - -
Fund balances - ending $ (146,000) (146,000) $ 7,958 $ 153,958 $ 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, 2023
107
Original Final Actual
Variance with
Final Budget

REVENUES
Intergovernmental $ 185,000 - $ $ 184,500 $ (500)
Use of money and property - - 16,350 16,350
Total revenues - 185,000 200,850 15,850
Net change in fund balances - 185,000 200,850 15,850
Fund balances - beginning 732,355 732,355 732,355 -
Fund balances - ending $ 732,355 $ 917,355 $ 933,205 $ 15,850 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, 2023
108
Original Final Actual
Variance with
Final Budget

REVENUES
Licenses permits and fees $ 50,000 $ 50,000 $ 68,158 $ 18,158 Use of money and property - - 12,070 12,070
Total revenues 50,000 50,000 80,228 30,228
Net change in fund balances 50,000 50,000 80,228 30,228 Fund balances - beginning 649,368 649,368 649,368 -
Fund balances - ending $ 699,368 $ 699,368 $ 729,596 $ 30,228 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, 2023
109
110

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.
111
City of Newark
Combining Statement of Net Position
Internal Service Funds
June 30, 2023
Equipment Equipment Office
Replacement Operations Support
ASSETS
Current assets:

Cash and investments $ 2,703,261 $ 1,301,227 $ 80,517
Receivables 2,126 - -
Supplies and other assets - 52,575 -
Total current assets 2,705,387 1,353,802 80,517
Capital assets, net of accumulated depreciation 3,402,949 - - Total assets 6,108,336 1,353,802 80,517

LIABILITIES
Current liabilities:

Accounts payable 102,077 74,507 25,104
Accrued liabilities 16,403 - -
Financed purchase obligations, due within one year 301,168 - - Claims payable, due within one year - - -
Total current liabilities 419,648 74,507 25,104
Noncurrent liabilities:

Financed purchase obligations, due in more than one year 496,698 - - Claims payable, due in more than one year - - -
Total non-current liabilities 496,698 - -
Total liabilities 916,346 74,507 25,104

NET POSITION
Net investment in capital assets 2,605,083 - -
Unrestricted (deficit) 2,586,907 1,279,295 55,413
Total net position (deficit) $ 5,191,990 $ 1,279,295 $ 55,413 112
Public Workers'
Building Liability Compensation
Maintenance Self-Insurance Self-Insurance Total
$ 2,634,596 $ 1,650,028 $ 3,638,938 $ 12,008,567
43,930 435 - 46,491
32,893 - - 85,468
2,711,419 1,650,463 3,638,938 12,140,526
- - - 3,402,949
2,711,419 1,650,463 3,638,938 15,543,475
258,980 13,966 31,140 505,774
- 206 8,436 25,045
- - - 301,168
- 10,052 292,195 302,247
258,980 24,224 331,771 1,134,234
- - - 496,698
- 1,077,180 1,687,377 2,764,557
- 1,077,180 1,687,377 3,261,255
258,980 1,101,404 2,019,148 4,395,489
- - - 2,605,083
2,452,439 549,059 1,619,790 8,542,903
$ 2,452,439 $ 549,059 $ 1,619,790 $ 11,147,986
113
City of Newark
Combining Statement of Activities
Internal Service Funds
For the year ended June 30, 2023
Equipment Equipment Office
Replacement Operations Support
OPERATING REVENUES:

Charges to departments $ 700,000 $ 600,000 $ 100,000
Other revenue 16,315 - -
Total operating revenues 716,315 600,000 100,000
OPERATING EXPENSES:

Personnel services - 667,087 -
Materials and supplies 66 420,329 27,921
Contractual services - 292,263 115,430
Utilities - - -
Insurance claims and premiums - - -
Depreciation 538,534 - -
Total operating expenses 538,600 1,379,679 143,351
OPERATING INCOME (LOSS) 177,715 (779,679) (43,351)
NONOPERATING REVENUES (EXPENSES):

Interest expense (30,513) - -
Total nonoperating revenue (expenses) (30,513) - -
Change in net position 147,202 (779,679) (43,351)
NET POSITION:

Beginning of year 5,044,788 2,058,974 98,764
End of year $ 5,191,990 $ 1,279,295 $ 55,413
114
Public Workers'
Building Liability Compensation
Maintenance Self-Insurance Self-Insurance Total
$ 2,800,000 $ 2,800,000 $ 800,000 $ 7,800,000
94,221 - - 110,536
2,894,221 2,800,000 800,000 7,910,536
644,178 36,932 36,560 1,384,757
133,324 - - 581,640
1,022,040 365,211 221,075 2,016,019
929,485 - - 929,485
- 1,517,138 309,387 1,826,525
- - - 538,534
2,729,027 1,919,281 567,022 7,276,960
165,194 880,719 232,978 633,576
- - - (30,513)
- - - (30,513)
165,194 880,719 232,978 603,063
2,287,245 (331,660) 1,386,812 10,544,923
$ 2,452,439 $ 549,059 $ 1,619,790 $ 11,147,986
115
City of Newark
Combining Statement of Cash Flows
Internal Service Funds
For the year ended June 30, 2023
Equipment Equipment Office
Replacement Operations Support
CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from other funds $ 716,315 $ 600,000 $ 100,000 Payments (to) from suppliers and other funds 102,636 (659,659) (118,340) Payments to employees - (667,087) -
Claim payments - - -
Net cash provided (used) by operating activities 818,951 (726,746) (18,340)

CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES:

Payments on financed purchased obligation (290,145) - - Acquisition of capital assets (404,041) - -
Interest paid and fiscal charges (30,513) - -
Net cash provided (used) by capital and
related financing activities (724,699) - -
Net increase (decrease) in cash
and cash equivalents 94,252 (726,746) (18,340)
CASH AND CASH EQUIVALENTS:

Beginning of year 2,609,009 2,027,973 98,857
End of year $ 2,703,261 $ 1,301,227 $ 80,517
CASH FLOWS FROM OPERATING ACTIVITIES:

Operating income (loss) $ 177,715 $ (779,679) $ (43,351) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:

Depreciation 538,534 - -
Change in assets and liabilities:

Accounts receivable and other assets (1,646) 14,016 3,000 Accounts payable and accrued liabilities 104,348 38,917 22,011 Total adjustments 641,236 52,933 25,011
Net cash provided (used) by operating activities $ 818,951 $ (726,746) $ (18,340) 116
Public Workers'
Building Liability Compensation
Maintenance Self-Insurance Self-Insurance Total
$ 2,894,221 $ 2,800,000 $ 800,000 $ 7,910,536
(2,001,994) 11,093 (372,142) (3,038,406)
(644,178) (36,932) (36,560) (1,384,757)
- (1,517,138) (309,387) (1,826,525)
248,049 1,257,023 81,911 1,660,848
- - - (290,145)
- - - (404,041)
- - - (30,513)
- - - (724,699)
248,049 1,257,023 81,911 936,149
2,386,547 393,005 3,557,027 11,072,418
$ 2,634,596 $ 1,650,028 $ 3,638,938 $ 12,008,567
$ 165,194 $ 880,719 $ 232,978 $ 633,576
- - - 538,534
(11,470) - - 3,900
94,325 376,304 (151,067) 484,838
82,855 376,304 (151,067) 1,027,272
$ 248,049 $ 1,257,023 $ 81,911 $ 1,660,848
117
118
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
119
City of Newark
Net Position by Component
Last Ten Years
(accrual basis of accounting)
(dollars in thousands)
2014 2015 2016 2017* 2018 2019 2020 2021 2022 2023
Primary government
Governmental activities:

Net Investment in Capital Assets $142,524 $140,931 $140,414 $140,414 $143,058 $147,511 $153,456 $154,434 $157,503 $157,499 Restricted 12,806 17,260 26,622 39,483 42,954 31,076 89,447 74,408 88,301 101,607 Unrestricted 17,903 (55,634) (43,711) (37,879) (35,998) (11,034) (66,234) (31,461) (16,192) (12,147) Total governmental activities
net position $173,233 $102,557 $123,325 $142,019 $150,014 $167,553 $176,669 $197,381 $229,612 $246,959 * 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 120
City of Newark
Changes in Net Position
Last Ten Years
(accrual basis of accounting)
(dollars in thousands)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Expenses
Governmental activities:

General government $4,643 $5,986 $4,484 $5,337 $6,159 $6,656 $6,668 $6,827 $10,182 $11,148 Public safety:

Fire 8,665 9,641 9,805 10,560 11,424 10,821 16,336 11,582 12,851 12,212 Police 15,310 15,565 17,202 19,798 21,728 24,012 22,317 27,257 17,928 27,483 Public Works 6,743 6,082 5,934 6,444 8,648 16,837 14,007 13,283 10,401 13,895 Community development 3,052 3,456 3,930 5,002 6,918 2,173 1,914 2,590 2,795 3,485 Recreation and community services 4,212 4,245 4,291 5,243 7,566 6,017 5,663 5,889 4,965 5,891 Interest on long-term debt 430 406 391 373 350 330 2,430 2,165 2,183 2,207 Total governmental activities
expenses 43,055 45,381 46,036 52,757 62,792 66,845 69,335 69,592 61,305 76,321 Program revenues
Governmental activities:

Charges for services:

General government 50 14 15 13 12 11 4,309 190 84 76
Public safety:

Fire 115 113 230 323 270 193 172 158 155 110
Police 563 573 729 990 1,109 1,182 1,224 1,609 1,403 1,040 Public Works 530 1,181 2,771 3,388 905 5,367 7,374 9,583 6,630 4,180 Community development 1,858 5,048 13,492 14,269 12,482 7,422 4,105 14,220 7,610 2,641 Recreation and community services 2,432 2,273 2,458 2,801 2,459 5,899 1,883 482 1,189 1,727 Operating grants and contributions 938 615 803 642 543 891 1,051 1,909 4,221 4,155 Capital grants and contributions 2,725 2,055 2,584 2,661 2,844 5,031 4,243 3,820 6,449 4,555 Total governmental program
revenues 9,211 11,872 23,083 25,074 20,625 25,996 24,362 31,971 27,740 18,484 Net (expense)/revenue
Total governmental activities
net expense (33,844) (33,509) (22,953) (27,683) (42,168) (40,849) (44,973) (37,621) (33,565) (57,837) General revenues and other changes in net position
Governmental activities:

Taxes:

Property taxes 13,035 13,987 14,967 16,465 19,193 20,700 22,768 24,417 25,834 28,564 Sales taxes 10,182 10,603 11,092 12,949 16,433 19,041 17,442 20,475 23,680 25,515 Transient occupancy tax 4,320 5,067 5,859 6,094 6,362 6,717 5,450 2,916 4,153 4,932 Franchise fees * 2,938 3,076 2,725 3,670 3,833 3,970 0 4,177 4,732 4,731 Utility uers tax 3,644 3,617 3,292 3,527 3,631 3,289 3,480 3,367 3,744 4,219 Other local taxes 1,272 1,488 1,799 1,996 2,346 2,162 2,150 2,497 2,751 2,651 Motor vehicle in-lieu 19 18 18 20 24 23 39 36 56 48
Use of money and property 70 93 189 446 900 2,045 2,497 948 -6 3,567 Miscellaneous 2,562 1,926 2,829 1,206 1,049 686 238 950 866 957 General revenues 38,042 39,875 42,769 46,373 53,770 58,633 54,063 59,783 65,810 75,184 Loss on disposal of asset - - - - - - - (1,036) - -
Change in net position
governmental activities $4,198 $6,366 $19,816 $18,690 $11,602 $17,784 $9,090 $21,126 $32,245 $17,347 * FY20 Franchise fees were categorized as Charges for services Source: City of Newark Basic Financial Statements
Fiscal year ended June 30,
121
Fund Balances of Governmental Funds
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
General Fund
Nonspendable:

Supplies and prepaid assets 555$ 152$ 135$ 145$ 153$ 185$ 163$ 145$ 145$ 155$ Due from Successor Redevelopment Agency - 404 356 216 184 184 - - - - Committed:

Pension/OPEB Reserves 150 - - 6,42 4 7,785 10,789 15,989 6,824 7,672 12,388 Assigned for:

Measure GG - - - - - - - - - 11,631
Fire side fund 613 - - 440 440 440 440 440 - -
Equipment replacement 405 1,305 1,500 2,700 2,900 3,100 5,800 6,000 6,200 6,200 Waste disposal fund 817 576 429 429 73 631 41 - - -
Community development 242 187 342 513 743 2,793 1,073 - - - Unassigned 18,90 16,776 4 27,169 23,246 31,666 34,331 39,548 47,223 46,136 34,842 Total General Fund 19,558$ 21,528$ 29,930$ 34,111$ 43,945$ 52,454$ 63,054$ 60,633$ 60,153$ 65,216$ All other governmental funds
Restricted for:

Public safety 199 197 215 295 403 650 4,74 4 6,053 2,123 2,717 Community development 15 15 15 15 92 18,767 27,002 10,766 4,855 4,925 Transportation facilities - - - - - - - 10,832 11,805 12,601 Housing impact - - - - - - - 34,53 6 40,889 44,593
Park improvement 111 730 2,877 5,726 6,044 4,100 747 3,633 5,445 5,806 Art in public places - - - - - - - - - 1,943
Street improvements 4,456 3,740 9,608 12,88 4 14,559 16,74 4,164 4 9,973 9,844 12,940 Environmental programs 313 400 491 580 645 688 736 798 687 381 Health and welfare 35 37 37 46 35 36 25 25 25 26
Debt service 677 681 680 680 687 700 37,11 6 6,511 3,624 86 Landscape and lighting 665 738 762 875 981 1,195 1,454 1,714 1,906 2,074 Other purposes (i.e. PEG, State CASp Fee) - - - - 689 777 878 942 649 796 Committed:

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

Waste disposal fund - - - - - - - 19 19 19
Art in public places 673 860 959 1,151 1,451 1,626 1,727 1,849 1,916 - Capital asset acquisition 6,159 9,34 12,77 0 0 21,715 21,859 25,105 3,107 - 7,112 16,116 Unassigned - - - - - - (1,692) (12,911) (2,263) (3,104) Total all other governmental funds 12,890$ 18,029$ 29,535$ 45,874$ 49,687$ 60,601$ 96,289$ 74,739$ 88,634$ 101,918$ 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,
122

CITY OF NEWARK
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(dollars in thousands)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Revenues
Property taxes $13,035 $13,988 $14,967 $16,465 $19,193 $20,700 $22,768 $24,417 $25,834 $28,564 Other local taxes 22,200 23,867 24,655 28,151 33,145 35,179 28,522 29,255 34,328 42,048 Special assessments 319 431 460 457 507 529 671 655 639 568 Licenses, permits and fees 1,443 2,264 4,173 4,149 3,638 3,638 3,241 29,134 20,255 7,633 Other governmental agencies 4,037 3,093 3,345 3,231 3,399 5,486 4,656 5,765 8,259 8,620 Charges for services 4,604 6,352 14,430 15,738 11,960 15,471 14,797 443 1,227 1,727 Fines and forfeitures 362 383 529 822 944 966 1,029 378 605 541 Use of money and property 70 93 189 477 900 1,999 2,497 948 (6) 3,567 Other 1,374 1,486 2,982 1,793 1,250 686 238 295 227 389 Total revenues 47,445 51,955 65,729 71,284 74,935 84,654 78,419 91,290 91,368 93,657 Expenditures
Current:

General government 4,526 6,043 4,643 5,231 5,487 5,774 5,734 6,208 11,678 9,899 Public safety:

Fire 8,460 9,634 9,619 10,373 11,433 10,821 11,152 11,715 12,854 11,831 Police 15,282 15,435 16,741 17,954 19,763 20,970 22,563 33,747 23,796 25,349 Community development 3,005 3,512 4,089 4,922 6,158 1,858 1,743 2,368 3,772 3,526 Recreation 3,949 4,000 4,092 4,786 6,582 5,554 5,094 4,644 5,421 5,341 Public works 4,350 3,663 3,954 3,877 7,522 13,032 9,150 9,608 10,147 11,702 Subscriptions outlay * - - - - - - - - - 765
Capital outlay 2,611 1,483 1,321 2,844 2,957 5,840 38,645 43,511 7,236 2,287 Debt service:

Principal repayment - subscriptions * - - - - - - - - - 218 Interest and fiscal charges - subscriptions * - - - - - - - - - 6 Principal repayment 572 589 560 584 542 556 544 525 545 2,345 Interest and fiscal charges 430 410 388 369 348 330 3,172 2,509 2,490 2,605 Total expenditures 43,185 44,770 45,409 50,940 60,791 64,736 97,798 114,835 77,939 75,876 Excess (deficiency) of revenues
over (under) expenditures 4,260 7,185 20,321 20,344 14,144 19,918 (19,378) (23,545) 13,429 17,781 Other financing sources (uses)
Other financing source (subscriptions) * - - - - - - - - - 765 Transfers in 2,212 4,065 3,773 5,836 6,544 6,402 26,442 28,565 22,880 18,225 Transfers (out) (2,504) (4,141) (3,910) (6,201) (6,909) (6,650) (26,691) (28,578) (22,880) (18,225) Debt refunding - - - - - - 63,345 - - -
Bond premium less payment to refunded bond escrow agent - - - - - - 2,571 - - - Capital lease proceeds 157 - - - - - - - - -
Total other financing sources (uses) (136) (76) (138) (366) (366) (249) 65,667 (13) - 765 Net change in fund balances $4,125 $7,109 $20,183 $19,978 $13,779 $19,669 $46,289 ($23,558) $13,429 $18,546 Debt service as a percentage of
noncapital expenditures 2.5% 2.4% 2.2% 2.0% 1.6% 1.5% 6.7% 4.4% 4.5% 7.6% * FY23 GASB 96 Implementation for Subscription Based Information Technology Arrangements (SBITAs) Source: City of Newark Basic Financial Statements
Fiscal year ended June 30,
123
Real Property Total Real Total
Fiscal Residential Commercial Industrial Secured Unsecured Total Direct Year Property Property Property Other Property Property Assessed (a) Tax Rate 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% 2023 8,630,708,616 1,067,690,476 2,067,121,969 501,876,271 12,267,397,332 835,449,984 13,102,847,316 0.16746%

CITY OF NEWARK
Assessed Value of Taxable Property
Last Ten Fiscal Years
Source: Alameda County Assessor 2013/14 - 2022/23 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
$14,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Millions
Unsecured Property Total Real Secured Property
124

CITY OF NEWARK
Property Tax Rates
All Overlapping Governments
Last Ten Fiscal Years
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 2023 1.0000 0.0065 0.0140 0.0103 0.0058 0.0761 0.0294 0.0197 1.1618 https://acgov.org/auditor/tax/districtRpts23/51427CAFunds.txt Total
Source: Alameda County Assessor 2013/14 - 2022/23 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
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
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 125

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 $391,700,652 1 2.99% $200,189,671 2 3.30% JMB Newpark Associates & GGP 183,086,703 2 1.40% 77,117,972 3 1.27% Silicon Valley Gateway Technology Center 172,394,348 3 1.32% Newark Industrial Partners LLC 166,007,068 4 1.27%
T5 Silicon Valley LP 122,592,200 5 0.94%
Lennar Homes California INC 108,545,415 6 0.83%
Metropolitan Life Insurance Company 99,969,317 7 0.76%
IPT East Bay DC LP 89,994,076 8 0.69%
Lennar Homes of California INC 87,324,014 9 0.67%
Meta Platforms INC 83,794,802 10 0.64%
Apple Computer INC 411,561,741 1 6.77%
Leslie Salt Company 65,384,781 4 1.08%
Evergreen Oil INC 55,788,776 5 0.92%
Sycamore Bay LLC 54,495,092 6 0.90%
SI XVIII LLC 45,688,123 7 0.75%
BRE US Industrial Properties LLC 41,716,866 8 0.69%
BRCP Stevenson Point LLC 34,797,561 9 0.57%
DCT Cherry Street California LP 34,000,000 10 0.56%
Subtotal $1,505,408,595 11.49% $1,020,740,583 16.80%
Total Net Assessed Valuation:

Fiscal Year 2022/23 $1,505,408,595
Fiscal Year 2013/14 $1,020,740,583
2022/23 2013/14
Source: Alameda County Assessor 2013/14 - 2022/23 Combined Tax Rolls. HDL 126

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 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% 2023 20,241,114 27,056,855 133.6728% 608,729 27,665,584 136.6801% 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
$30.0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Millions
Tax Levy Tax Collections
127

CITY OF NEWARK
Taxable Sales by Category
Last Ten Calendar Years
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Apparel Stores $58.2 $52.1 $53.4 $60.7 $61.6 $60.5 $51.6 $26.0 $33.6 $28.3 General Merchandise 68.4 66.5 64.1 58.6 51.7 45.0 31.4 17.6 25.4 22.8 Food Stores 22.0 22.5 20.2 18.0 18.0 18.0 18.2 19.7 18.7 20.5 Eating and Drinking Places 87.9 95.4 104.1 113.4 123.3 129.2 137.8 90.0 123.1 141.1 Building Materials 104.4 106.9 126.1 129.9 134.8 146.9 151.6 173.7 219.7 265.7 Auto Dealers and Supplies 196.5 229.9 266.7 266.6 261.4 260.2 248.2 228.0 306.7 524.5 Service Stations 53.6 51.8 49.2 43.6 49.6 55.3 56.1 38.7 50.7 64.7 Other Retail Stores 177.7 176.0 179.1 180.7 179.5 157.3 55.6 39.5 56.2 49.9 All Other Outlets 243.5 274.5 325.7 340.1 383.4 480.1 623.9 737.9 740.8 841.1 Total 1,012.2$ 1,075.6$ 1,188.6$ 1,211.6$ 1,263.3$ 1,352.5$ 1,374.4$ 1,371.1$ 1,574.9$ 1,958.6$ 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
$1,800.0
$2,000.0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Apparel Stores General Merchandise Food Stores
Eating and Drinking Places Building Materials Auto Dealers and Supplies Service Stations Other Retail Stores All Other Outlets
128

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) 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 2023 59,405,000 8,407,511 797,866 68,610,377 2.70% 1,280 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. $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
68,610,377
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Total Outstanding Debt
129

CITY OF NEWARK
Direct and Overlapping Governmental Activities Debt
June 30, 2023
Debt Oustanding
Percentage
Applicable (1)
Share of
Overlapping Debt

OVERLAPPING TAX AND ASSESSMENT DEBT
Alameda County $515,890,000 3.496% $18,035,514
Bay Area Rapid Transit District 2,484,285,000 1.376% 34,183,762 East Bay Regional Park District 175,955,000 2.178% 3,832,300 Ohlone Community College District 403,275,000 16.229% 65,447,500 Newark Unified School District 69,996,810 100.000% 69,996,810 Washington Township Heathcare District 340,195,000 13.958% 47,484,418 City of Newark 1915 Act Bonds 941,678 100.000% 941,678
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $ 239,921,982

DIRECT AND OVERLAPPING GENERAL FUND DEBT
Alameda County General Fund Obligations $706,903,500 3.496% $24,713,346 Alameda-Contra Costa Transit District Certificates of Participation 11,220,000 4.127% 463,049 Ohlone Community College District General Fund Obligations 200,000,000 16.229% 32,458,000 City of Newark General Fund Obligations - Direct Debt 59,405,000 100.000% 59,405,000 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 117,039,396 TOTAL DIRECT DEBT 59,405,000
TOTAL OVERLAPPING DEBT 297,556,378
COMBINED TOTAL DEBT $356,961,378 (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. 130

CITY OF NEWARK
Legal Bonded Debt Margin Information
Assessed valuation:

Secured property assessed value,
net of exempt real property $13,102,847,316
Bonded debt limit: 3.75% of assessed value (a) 491,356,774 (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 59,405,000
Less: Certificates of participation and bank
refinancing not subject to limit 59,405,000
Amount of debt subject to limit -
Legal bonded debt margin $491,356,774
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%
2023 122,839,194 - 122,839,194 0.00%
Source: Alameda County Assessor 2013/14 - 2022/23 Combined Tax Rolls June 30, 2023
131

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 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%
2022 47,459 2,543,399 53,591 3.1% 1,636,194 2.90%
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
$3,000
Thousands
Total Personal Income
132

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 Amazon Fulfillment Center 592 1 2.31%
WorldPac 521 2 2.04% 280 3, 4 1.3%
Logitech 519 3 2.03% 689 2 3.1%
Newark Unified School District 470 4 1.84% 700 1 3.2%
RSM - Risk Management Solutions* 282 5 1.10% 270 5 1.2% City of Newark 239 6 0.93% 174 9
Nordstrom Distribution Center* 236 7 0.92%
Cargill Salt 210 8 0.82% 182 8 0.8%
KNT Manufacturing 182 9 0.71%
SMART Modular Technologies 136 10 0.53% 249 6 1.1%
Aryzta, LLC (formerly Fullbloom Baking Co.) 280 3, 4 1.3% Morpho Detection 208 7 0.9%
Valassis (formerly ADVO) 166 10 0.8%
Total 3,387 13.23% 3,198 13.7%
Total City Employment (1) 25,600 22,100
*No response from business for FY23 count, previous year's count applied.

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. 2022-23 2013-14
133

CITY OF NEWARK
Last Ten Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function/Program:

General government 22.52 24.24 25.67 25.35 24.75 28.37 31.48 24.24 25.33 31.66 Public safety
Police 79.36 79.14 78.10 72.70 81.01 83.66 84.42 53.97 77.71 98.83 Streets and parks 16.88 18.57 18.23 18.65 21.50 19.70 20.48 19.88 21.41 51.70 Community development 14.58 16.52 16.94 23.80 23.73 25.65 28.04 26.18 22.74 11.20 Recreation 34.53 41.45 38.22 41.62 34.59 39.54 36.75 21.73 38.06 45.31 Total 167.87 179.92 177.16 182.12 185.58 196.92 201.17 146.00 185.25 238.70 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 134

CITY OF NEWARK
Operating Indicators by Function/Program
Last Six Fiscal Years
2018 2019 2020* 2021** 2022*** 2023
Function/Program
Public safety:

Fire
Fire calls for service 3,296 3,239 3,423 3,550 3,772 4,069 Primary fire inspections conducted 1,671 1,797 1,940 2,291 2,494 2,029 Environmental safety inspections conducted 875 1,115 177 157 825 869 Police
Communication center calls answered 38,114 42,556 41,749 20,399 46,880 34,260 Police calls for service 38,114 42,556 41,749 20,399 23,656 34,260 Law violations
Part I crimes 1,782 1,784 1,779 1,901 2,358 2,062
Traffic violations 3,032 3,368 2,013 1,308 1,244 1,469
Parking violations 1,406 775 1,526 981 995 702
Public works:

Street resurfacing (miles) 5 4 4 1 8 8
Street lights repaired 472 482 374 548 594 677
Recreation:

Recreation class/program participants 152,574 187,088 70,132 38,110 48,373 166,046 Recreation facilities rentals 1,445 1,559 1,112 692 1,862 2,185 Silliman Activity Center use 94,766 101,239 66,265 11,962 44,962 56,714 Miscellaneous:

Library:

Library visitors 183,184 188,060 104,695 5,753 73,442 105,215 Library materials circulated 250,934 246,803 159,662 42,724 212,066 269,101 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.
135

CITY OF NEWARK
Capital Asset Statistics by Function/Program
Last Six Fiscal Years
2018 2019 2020 2021 2022 2023
Function/Program
Public works:

Miles of streets 105 105 105 105 105 109
Street lights 2,849 2,849 2,849 2,849 2,849 3,001
Traffic signals 44 44 44 47 47 47
Recreation:

Community services:

City parks 14 14 15 15 15 15
City parks acreage 124 124 127 127 127 127
Roadway landscaping acreage 56 56 56 56 56 56
Lake acreage 16 16 16 16 16 16
Community activity centers 2 2 2 2 2 2
Senior center 1 1 1 1 1 1
Aquatic center 1 1 1 1 1 1
Miscellaneous
Library 1 1 1 1 1 1
Source: City of Newark
Fiscal Year
136

Item D. 4.

DATE 01/11/2024
TO Honorable Mayor and City Council Members
FROM Cathreene Ingham-Watters, Human Resources Director SUBJECT Adopt a resolution: (1) amending the Employee Classification Plan to delete and add multiple classifications due to title changes and new position of Deputy Finance Director; (2) amending the Compensation and Benefit Plan for the Management, Supervisory, and Professional Employees Group; (3) amending the City's Salary Schedule; (4) amending the 2022-2024 Biennial Budget and Capital Improvement Plan; and (5) approving a letter of understanding with Newark Association of Miscellaneous Employees (NAME)
SUMMARY AND RECOMMENDATION
Staff concluded its citywide Classification and Compensation Study that identified positions recommended for title changes and compensation adjustments. Based on the results, staff recommends that the City Council adopt a resolution, effective January 12, 2024: (1) amending the Employee Classification Plan to delete and add multiple classifications due to title changes and a new position of Deputy Finance Director; (2) amending the Compensation and Benefit Plan for the Management, Supervisory, and Professional Employees Group; (3) amending the City's Salary Schedule; (4) amending the 2022-2024 Biennial Budget and Capital Improvement Plan; and (5) approving a letter of understanding with Newark Association of Miscellaneous Employees (NAME).

BACKGROUND
In Fall 2022, the City hired a former City of Newark Human Resources Director to complete a citywide Classification and Compensation Study (Study). The Study included a review of every job description and compensation for each position within the City. The Study also compared job titles and total compensation with those in the City's identified labor market. The classification portion of the Study included the following: opportunities for each employee and their supervisor to review and provide input on their job description; follow-up interviews where additional information was needed; and referrals to the Human Resources Department from employees, their supervisors or the Study's author that identified employees potentially working in a higher or lower classification.

The compensation portion of the Study included a maximum total compensation salary comparison to the ten cities in the City's labor market, and included an analysis of base salary, health benefits, and retirement contributions. Compensation changes are considered when the City's maximum total compensation salary is below the labor market average. Additionally, an analysis of internal compensation relationships was conducted to ensure parity within the citywide compensation structure and job families. Two additional aspects of the Study were: (1) to ensure that job classifications within a job family provided opportunities for recruitment and retention of employees; and (2) determine if an employee is working significantly outside of their job description/current classification.

DISCUSSION/ANALYSIS
Human Resources Department staff reviewed the Study results. Following the review, staff discussed the Study results with the appropriate employee organizations, and provided an opportunity for review by employees and supervisors at all levels. For the majority of positions, the City's job titles were aligned with the labor market and total compensation was at or above market average. All job descriptions were updated to a consistent and modern format. Changes recommended to job titles and compensation are detailed below. Referrals for purposes of determining the proper classification of certain employees are now being reviewed by a consultant and results are expected in spring.

COMPENSATION STUDY RESULTS
Compensation study results were reviewed by Human Resources Department staff to determine if changes to current compensation levels were warranted. Changes to the base salary for the following classifications are recommended because they are currently either below market average or are necessary to maintain internal relationships within the job family and/or to achieve parity with similar classifications in the City's compensation structure.

Child Care Instructor: 5.00% hourly pay rate increase
The ten City labor market had only one match for Child Care Instructor. Therefore, the recommended increase took that match into consideration and used other factors, such as Newark's compensation for similar skills sets and the compensation relationships within the Recreation and Community Services Department in comparison with other department's compensation relationships.

Lead Child Care Instructor: 5.00% hourly pay rate increase to maintain internal relationships within the job family
Recreation Coordinator: 3.54% hourly pay rate increase to achieve market average Information Technology Technician I: 3.11% hourly pay rate increase to achieve market average
Information Technology Technician II: 3.95% hourly pay rate increase to achieve market average
Senior Management Analyst: 1.30% hourly pay rate increase to achieve market Senior Management Analyst: 1.30% hourly pay rate increase to achieve market average
CLASSIFICATION STUDY RESULTS
Staff recommends title changes to some classifications to create potential organizational opportunities to retain talented staff as well as recruit skilled employees that will assist with staff retention. In addition, staff recommends a reclassification of the current Accounting Manager to a new position of Deputy Finance Director within the Finance Department and is currently in the process of identifying potential reclassifications for employees in multiple departments. While this process is still underway for several classifications, the job duties of the employee in the position of Accounting Manager have been analyzed. The analysis revealed that a reclassification to Deputy Finance Director would align to the complex workload and variety of finance, accounting, audit, and budget responsibilities the incumbent has been consistently completing.

In order to provide promotional opportunities to retain talented staff as well as recruit potential skilled employees that will assist with staff retention, staff recommends the following title changes:

Recreation Coordinator
This title currently exists and is recommended to be used for the current classification of Aquatics Coordinator. Duties and qualifications required to work in the Aquatics section will be incorporated into the Recreation Coordinator class specification and apply if/when assigned to oversee Aquatics programming or operations.

Recreation and Community Services Supervisor I/II
The Recreation and Community Services Department currently includes the classifications of Recreation Supervisor and Senior Recreation Supervisor. The Study included comparisons of job descriptions and responsibilities. For recruitment purposes, staff recommends a title change to align with common titling in the labor market. For retention purposes, staff recommends approval of the single class specification of Recreation and Community Services Supervisor I/II. This will allow for an employee to advance from a level I to a level II when the need for more complex or higher work exists, funding is available, and an employee is qualified for the level II position.

Community Preservation Specialist I/II
The Community Development Department includes the classification of Community Preservation Specialist. Staff recommends that the City Council approve the single class specification of Community Preservation I/II. Level I is designed as an entry level position in the Community Preservation Specialist series. The level II position is designed as a journey level classification that includes the full range of duties and the ability to work at a more independent level. Positions in the Community Preservation Specialist class series are designed to be flexibly staffed and positions at the II level will normally be filled by advancement from level I after gaining knowledge, skill, and experience.

Building Maintenance Mechanic I/II; Senior Building Maintenance Mechanic These title changes simply add the word "Maintenance" to the existing classification. The current classification titles are Building Mechanic I/II and Senior Building Mechanic. A review of the job description and comparable titles in the labor market identified adding "Maintenance" most accurately reflects the duties of the position.

Deputy Finance Director
To increase the City's competitiveness in the labor market, offer additional growth opportunities, and shift tasks to more appropriate classifications, staff recommends reclassifying the position of Accounting Manager to Deputy Finance Director and assigning salary range 18, commensurate with the expanded duties of the position and salary placement of the City's other deputy director positions. Staff has prepared a new class specification that represents the job duties and qualifications (attached).

FISCAL IMPACT
The cost of increasing the base salary of the Recreation, Information Technology and Deputy Finance Director positions effective January 12, 2024, is estimated at $44,200 (total compensation) for the remainder of FY 2024. A budget appropriation from the General Fund's unappropriated fund balance would be required. Future years' salaries would be proposed for City Council approval through the regular biennial budget process.

REVIEW AND APPROVAL
Prepared by - Cathreene Ingham-Watters, Human Resources Director Reviewed by - Lenka Hovorka, Assistant City Manager
Reviewed by - Krysten Lee, Finance Director
Reviewed by - Kristopher J. Kokotaylo, City Attorney
Approved by - David J. Benoun, City Manager
Attachments
Resolution Comp Study and Reclass
Memo Resolution Update
Letter of Understanding NAME
Deputy Finance Director class specification
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK AMENDING THE EMPLOYEE CLASSIFICATION
PLAN; AMENDING THE COMPENSATION AND BENEFIT

PLAN FOR THE MANAGEMENT, SUPERVISORY, AND
PROFESSIONAL EMPLOYEE GROUP; AMENDING THE 2022-
2024 BIENNIAL BUDGET AND CAPITAL IMPROVEMENT
PLAN; AMENDING THE CITY’S SALARY SCHEDULE IN

CONFORMANCE WITH CALIFORNIA CODE OF
REGULATIONS, TITLE 2, SECTION 570.5; AND APPROVING

A LETTER OF UNDERSTANDING BETWEEN THE CITY OF

NEWARK AND THE NEWARK ASSOCIATION OF

MISCELLANEOUS EMPLOYEES
WHEREAS, the City conducted a classification and compensation study that included labor market surveys of each classification’s total compensation and analysis of compensation, titles and functions within each job family; and
WHEREAS, the City, based on its analysis, has determined that the classifications of Child Care Instructor, Information Technology Technician I, Information Technology Technician II, Lead Child Care Instructor, Recreation Coordinator, and Senior Management Analyst are either below market average, or to maintain internal relationships within a job family, require a compensation increase to achieve appropriate compaction rates; and WHEREAS, the City, based on its analysis, has determined that it is appropriate to amend the Employee Classification Plan to delete and add multiple classifications due to title changes and the creation of the Deputy Finance Director position; and WHEREAS, updating classification titles and reclassifying employees as appropriate supports the City’s efforts of offering promotional opportunities through advancement in a classification series, maintaining a competitive labor market position, and accurately classifying employees; and
WHEREAS, the classifications are included in the Compensation and Benefit Plan for the Management, Supervisory, and Professional Employee Group or represented by the Newark Association of Miscellaneous Employees (NAME) pursuant to a Memorandum of Understanding with the City; and
WHEREAS, the City Manager or designee met and conferred with representatives of NAME related to the above matters and have agreed upon, via a Letter of Understanding, the compensation increases and classification changes; and
WHEREAS, the 2022-2024 Biennial Budget and Capital Improvement Plan was adopted by the City Council on June 23, 2022; and
Resolution No. 2
WHEREAS, the compensation increases due to the study results and reclassifying the incumbent in the Accounting Manager position to Deputy Finance Director require a budget amendment; and
WHEREAS, the City seeks to amend the 2022-2024 Biennial Budget and Capital Improvement Plan to reflect the title and compensation changes effective January 7, 2024.

NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Newark that the Employee Classification Plan be amended to delete Recreation Supervisor and Senior Recreation Supervisor, and add Recreation and Community Services Supervisor I/II; delete Community Preservation Specialist and add Community Preservation Specialist I/II; delete Building Mechanic I/II and add Building Maintenance Mechanic I/II; delete Senior Building Mechanic and add Senior Building Maintenance Mechanic; delete Aquatics Coordinator; and add Deputy Finance Director.

BE IT FURTHER RESOLVED that the City Council of the City of Newark hereby approves an amendment to the Compensation and Benefit Plan for the Management, Supervisory, and Professional Employee Group to delete the classifications of Recreation Supervisor and Senior Recreation Supervisor; add the classifications of Recreation and Community Services Supervisor I/II and Deputy Finance Director, amend the compensation for the classification of Senior Management Analyst with the listed salary below, and assign Range 18 to the Deputy Finance Director classification effective January 7, 2024.

BE IT FURTHER RESOLVED that the City Council hereby approves a Letter of Understanding to the Memorandum of Understanding between the City of Newark and the Newark Association of Miscellaneous Employees to memorialize the compensation increases as a result of the Classification and Compensation Study, effective January 7, 2024, for the positions of Child Care Instructor, Information Technology Technician I, Information Technology Technician II, Lead Child Care Instructor, and Recreation Coordinator; and to delete Community Preservation Specialist and add Community Preservation Specialist I/II; delete Building Mechanic I/II and add Building Maintenance Mechanic I/II; delete Senior Building Mechanic and add Senior Building Maintenance Mechanic, and delete Aquatics Coordinator.

BE IT FURTHER RESOLVED that the City Council approves an amendment to the City’s Salary Schedule to: (1) add the position of Deputy Finance Director at Range 18; (2) reflect the title changes of Building Mechanic I to Building Maintenance Mechanic I, Building Mechanic II to Building Maintenance Mechanic II, and Senior Building Mechanic to Senior Building Maintenance Mechanic; (3) replace Recreation Supervisor with Recreation and Community Services Supervisor I; (4) replace Senior Recreation Supervisor with Recreation and Community Services Supervisor II; (5) delete Community Preservation Specialist; and add Community Preservation Specialist I and Community Preservation Specialist II; and (6) reflect the salary increases for the classifications of Child Care Instructor, Information Technology Technician I, Information Technology Technician II, Lead Child Care Instructor, Recreation Coordinator, and Senior Management Analyst with salaries as follows:

Resolution No. 3
Classification Step 1 Step 2 Step 3 Step 4 Step 5
Building
Maintenance
Mechanic I
Hourly
Biweekly
Annual
$39.21
$3,136.80
$81,556.80
$41.19
$3,295.20
$85,675.20
$43.24
$3,459.20
$89,939.20
$45.42
$3,633.60
$94,473.60
$47.69
$3,815.20
$99,195.20
Building
Maintenance
Mechanic II
Hourly
Biweekly
Annual
$43.20
$3,456.00
$89,856.00
$45.36
$3,628.80
$94,348.80
$47.64
$3,811.20
$99,091.20
$50.03
$4,002.40
$104,062.40
$52.51
$4,200.80
$109,220.80
Childcare
Instructor
Hourly
Biweekly
Annual
$26.28
$2,102.52
$54,665.52
$27.62
$2,209.20
$57,439.20
$29.00
$2,320.08
$60,322.08
$30.45
$2,436.00
$63,336.00
$31.99
$2,559.48
$66,546.48
Community
Preservation
Specialist I
Hourly
Biweekly
Annual
$39.14
$3,131.20
$81,411.20
$41.09
$3,287.20
$85,467.20
$43.15
$3,452.00
$89,752.00
$45.30
$3,624.00
$94,224.00
$47.56
$3,804.80
$98,924.80
Community
Preservation
Specialist II
Hourly
Biweekly
Annual
$43.64
$3,491.20
$90,771.20
$45.63
$3,650.40
$94,910.40
$47.71
$3,816.80
$99,236.80
$49.91
$3,992.80
$103,812.80
$52.23
$4,178.40
$108,638.40
Deputy
Finance
Director
Hourly
Biweekly
Annual
$80.19
$6,415.20
$166,795.20
Range 18
$96.23
$7,698.40
$200,158.40
Information
Technology
Technician I
Hourly
Biweekly
Annual
$41.23
$3,298.70
$85,766.07
$43.29
$3,462.85
$90,034.00
$45.44
$3,635.25
$94,516.40
$47.72
$3,817.54
$99,256.16
$50.11
$4,008.92
$104,231.84
Information
Technology
Technician II
Hourly
Biweekly
Annual
$46.18
$3,694.80
$96,064.77
$48.49
$3,879.41
$100,864.76
$50.90
$4,072.35
$105,880.98
$53.45
$4,276.09
$111,178.27
$56.13
$4,490.64
$116,756.64
Lead Child
Care Instructor
Hourly
Biweekly
Annual
$30.24
$2,419.20
$62,899.20
$31.75
$2,540.16
$66,044.16
$33.36
$2,668.68
$69,385.68
$35.03
$2,802.24
$72,858.24
$36.79
$2,943.36
$76,527.36
Recreation
Coordinator
Hourly
Biweekly
Annual
$42.17
$3,373.75
$87,717.43
$44.06
$3,524.50
$91,637.04
$46.04
$3,683.54
$95,772.02
$48.06
$3,845.06
$99,971.60
$50.18
$4,014.04
$104,365.01
Recreation and
Community
Services
Supervisor I
Hourly
Biweekly
Annual
$53.57
$4,285.60
$111,425.60
$56.25
$4,500.00
$117,000.00
$59.06
$4,724.80
$122,844.80
$62.02
$4,961.60
$129,001.60
$65.12
$5,209.60
$135,449.60
Recreation and
Community
Services
Supervisor II
Hourly
Biweekly
Annual
$59.07
$4,725.60
$122,865.60
$62.03
$4,962.40
$129,022.40
$65.13
$5,210.40
$135,470.40
$68.38
$5,470.40
$142,230.40
$71.80
$5,744.00
$149,344.00
Senior
Building
Maintenance
Mechanic
Hourly
Biweekly
Annual
$47.58
$3,806.40
$98,966.40
$49.92
$3,993.60
$103,833.60
$52.45
$4,196.00
$109,096.00
$55.06
$4,404.80
$114,524.80
$57.83
$4,626.40
$120,286.40
Senior
Management
Analyst
Hourly
Biweekly
Annual
$61.63
$4,930.47
$128,192.31
$64.72
$5,177.65
$134,618.79
$67.95
$5,436.16
$141,340.24
$71.35
$5,707.65
$148,398.83
$74.91
$5,992.91
$155,815.61
BE IT FURTHER RESOLVED that the City Council hereby approves an amendment of the 2022-2024 Biennial Budget and Capital Improvement Plan to (1) reflect the title changes as follows: replace Recreation Supervisor with Recreation and Community Supervisor I; replace Senior Recreation Supervisor with Recreation and Community Supervisor II; replace Community Preservation Specialist with Community Preservation Specialist II; replace Building Mechanic I/II Resolution No. 4
with Building Maintenance Mechanic I/II; replace Senior Building Mechanic with Senior Building Maintenance Mechanic; replace Aquatics Coordinator with Recreation Coordinator; and add Deputy Finance Director; and to (2) appropriate funding to accommodate the salary adjustments as follows:

TO: 110.20.020.200.5110 SALARIES (FT/RPT) $ 900
110.20.020.200.5210 BENEFITS (EE) $ 100
110.20.020.200.5510 DEFINED BNFT PLAN (CalPERS) $ 400
FR: 110.3000 UNAPPROPRIATED FUND BALANCE $ 1,400
TO: 110.21.021.200.5110 SALARIES (FT/RPT) $ 4,300
110.21.021.200.5210 BENEFITS (EE) $ 100
110.21.021.200.5510 DEFINED BNFT PLAN (CalPERS) $ 1,600 FR: 110.3000 UNAPPROPRIATED FUND BALANCE $ 6,000
TO: 110.80.081.800.5110 SALARIES (FT/RPT) $ 13,700
110.80.081.800.5210 BENEFITS (EE) $ 200
110.80.081.800.5510 DEFINED BNFT PLAN (CalPERS) $ 5,000 FR: 110.3000 UNAPPROPRIATED FUND BALANCE $ 18,900
TO: 130.70.071.710.5110 SALARIES (FT/RPT) $ 1,600
130.70.071.710.5210 BENEFITS (EE) $ 100
130.70.071.710.5510 DEFINED BNFT PLAN (CalPERS) $ 600
FR: 130.3000 UNAPPROPRIATED FUND BALANCE $ 2,300
TO: 130.70.072.720.5110 SALARIES (FT/RPT) $ 1,800
130.70.072.720.5210 BENEFITS (EE) $ 100
130.70.072.720.5510 DEFINED BNFT PLAN (CalPERS) $ 700
FR: 130.3000 UNAPPROPRIATED FUND BALANCE $ 2,600
TO: 130.70.074.740.5110 SALARIES (FT/RPT) $ 7,700
130.70.074.740.5210 BENEFITS (EE) $ 200
130.70.074.740.5510 DEFINED BNFT PLAN (CalPERS) $ 2,800 FR: 130.3000 UNAPPROPRIATED FUND BALANCE $ 10,700
TO: 130.70.075.750.5110 SALARIES (FT/RPT) $ 1,600
130.70.075.750.5210 BENEFITS (EE) $ 100
130.70.075.750.5510 DEFINED BNFT PLAN (CalPERS) $ 600
FR: 130.3000 UNAPPROPRIATED FUND BALANCE $ 2,300

510.578.4200 [email protected] www.newark.org facebook.com/cityofnewarkca City of Newark
City Manager’s Office
37101 Newark Boulevard
Newark, CA 94560
To: Newark Association of Miscellaneous Employees Executive Board From: David Benoun, City Manager
Lenka Hovorka, Assistant City Manager
Date: January 3, 2024
This will serve as a Letter of Understanding (LOU) to the City of Newark (City) and the Newark Association of Miscellaneous Employees (NAME) July 1, 2022 – June 30, 2025 Memorandum of Understanding (MOU). The purpose of this LOU is to memorialize the compensation increases and title changes as a result of the Classification and Compensation Study. This LOU will become effective on January 12, 2024.

The City and NAME agree to the following amendments to the MOU:

Throughout the NAME MOU, replace “Aquatics Coordinator” with “Recreation Coordinator”; replace “Community Preservation Specialist” with “Community Preservation Specialist I/II”; replace “Building Mechanic I/II” with “Building Maintenance Mechanic I/II”; and replace “Senior Building Mechanic” with “Senior Building Maintenance Mechanic”.

Revise Attachment B in the MOU to reflect the following base salary increases:
• Child Care Instructor - 5.00%
• Information Technology Technician I - 3.11%
• Information Technology Technician II - 3.95%
• Lead Child Care Instructor - 5.00%
• Recreation Coordinator - 3.54%
The parties agree to produce a red-lined version within the MOU as a clean up matter as part of the revision process. Affected Classifications in Attachment B:

Child Care
Instructor
Step Code FY 2023 FY 2024 FY 2025
1 $24.30 $26.28 $27.07
2 $25.53 $27.62 $28.44
3 $26.82 $29.00 $29.87
4 $28.16 $30.45 $31.36
5 $29.58 $31.99 $32.95
City of Newark – City Manager’s Office 2
Lead Child Care
Instructor
Step Code FY 2023 FY 2024 FY 2025
1 $27.96 $30.24 $31.15
2 $29.36 $31.75 $32.70
3 $30.84 $33.36 $34.36
4 $32.39 $35.03 $36.08
5 $34.02 $36.79 $37.90
Recreation
Coordinator
Step Code FY 2023 FY 2024 FY 2025
1 $39.54 $42.17 $43.44
2 $41.31 $44.06 $45.38
3 $43.17 $46.04 $47.43
4 $45.07 48.06 $49.51
5 $47.05 $50.18 $51.68
Information
Technology
Technician I
Step Code FY 2023 FY 2024 FY 2025
1 $38.83 $41.23 $42.47
2 $40.76 $43.29 $44.58
3 $42.79 $45.44 $46.80
4 $44.93 $47.72 $49.15
5 $47.18 $50.11 $51.61
Information
Technology
Technician II
Step Code FY 2023 FY 2024 FY 2025
1 $43.14 $46.18 $47.57
2 $45.29 $48.49 $49.95
3 $47.54 $50.90 $52.43
4 $49.92 $53.45 $55.05
5 $52.43 $56.13 $57.82
Dated: _________________________________
For the City of Newark: For the Newark Association of Miscellaneous Employees:
________________________________ _____________________________________ David Benoun, City Manager Angela Montez, President
Deputy Finance Director class specification Page 1 of 4 Deputy Finance Director
Class Specification
Revised
Class ID: 340
Unit: MGMT
Probation: 12 Months
FLSA: Exempt

DEFINITION
Under direction, directs and manages accounting and financial activities of the Finance Department including developing and implementing financial planning and budgeting procedures, and evaluating and implementing accounting systems and procedures; advises on financial matters; conducts complex professional and analytical studies and works on special projects; prepares and oversees the City’s biennial budget; acts in the absence of the Finance Director; and performs related duties as assigned.

SUPERVISION RECEIVED AND EXERCISED
Receives direction from the Finance Director. Exercises direct supervision of assigned department staff, and indirect supervision of professional, technical, and paraprofessional staff.

DISTINGUISHING CHARACTERISTICS
This is a single position management class that performs a variety of finance and accounting duties involving complex governmental accounting and reporting processes, payroll, purchasing, accounts payable, accounts receivable, budget and treasury operations, and professional, administrative, and managerial duties in managing the Finance Department. The employee has a large role in developing and overseeing the preparation of the City’s Five-Year Forecast and the Biennial Operating Budget and overseeing accounting activities ensuring all activities are carried out in accordance with Generally Accepted Accounting Principles (GAAP).

Performance of the work requires an extensive professional background as well as skills in coordinating assignments with those of other City departments and public agencies. The incumbent has a broad range of independence within policy parameters and works under minimal direction, following general guidelines or professional and administrative standards in accomplishing assignments. This classification is distinguished from the Finance Director in that the latter is responsible for planning, organizing and directing financial services for the City.

EXAMPLES OF JOB FUNCTIONS (Illustrative Only)
Plan, organize, direct, and evaluate the activities of the Finance Department including, purchasing, accounts payable/receivable, payroll, and revenue receipt activities.

Prepare, review, and oversee the maintenance of journal entries, and general ledger postings and supporting financial records; supervise the maintenance of the General Ledger, the recording of all revenue, encumbrances and disbursements.

Oversee reconciliations of the City’s financial activities including bank accounts and investments; manage the month-end and year-end close process and prepare related reports.

Recommend the appointment of personnel; provide or coordinate staff training; supervise assigned staff; conduct performance evaluations; work with employees on performance issues; implement discipline procedures.

Deputy Finance Director class specification Page 2 of 4 Assist with the development and implementation of the department’s goals, objectives, policies and procedures; monitor and evaluate the efficiency and effectiveness of service delivery methods and procedures.

Develop and monitor accounting policies, procedures and guidelines to ensure proper control of City’s finances and accounting standards; develop, administer, review and modify accounting, financial, and budget reporting standards and control systems as necessary to comply with accounting procedures, laws, ordinance and other regulations.

Manage and prepare fee studies for all City fees; manage, coordinate, and monitor rate studies.

Conduct and coordinate the City’s annual financial audit and preparation of the Comprehensive Annual Financial Report (CAFR); serve as the liaison between the City and its external auditors; prepare and provide supporting documentation; ensure timely completion of the CAFR audit, annual State Controller’s Office Reports, and other compliance reports as required.

Review and monitor legislative and legal changes and supervise financial transactions and other activities as necessary to assure compliance.

Oversee the maintenance of the City’s financial software system and ensure timely completion of system upgrades; communicates changes/impacts to system users.

Prepare, analyze, oversee, and monitor the City’s annual budget; prepare quarterly budget status reports; assist in forecasting budget revenues; develop financial forecast models; monitor and prepare reports on economic trends that affect the City.

Assist in development and presentation for the City’s Capital Improvement Program (CIP); assist in coordinating and monitoring the CIP including controlling project expenditures, establishing new projects and closing completed projects; research and recommend new financing methods; prepare project reports as needed.

Assist with managing the City’s investment portfolio to ensure that investments meet the policy guidelines and financial obligations; plan and coordinate financing; review, analyze, and maintain all bond issues; administer project and debt bond programs for the City; assist with preparation of periodic reports regarding investments to the City Council.

Prepare the Finance Department budget; assist in budget implementation; participate in the forecast of additional funds needed for staffing, equipment, materials and supplies; administer the approved budget.

Prepare a variety of financial reports and cost studies for management personnel, City Manager, and City Council; provide professional, technical accounting and budget advice to City staff; coordinate activities with other divisions, departments, and outside agencies; assist in special projects as assigned; attend meetings and conferences.

Present oral and written reports to the City Manager, City Council, outside agencies, and community groups on a variety of City administrative matters.

Keep City management up to date on all facets of financial developments.

Serve as Acting Finance Director as required.

Perform related duties as assigned.

Deputy Finance Director class specification Page 3 of 4

QUALIFICATIONS
Knowledge of:
• Principles of current governmental accounting theory, principles, and practices and current auditing standards.
• Practices of Governmental Accounting, Auditing and Financial Reporting (GAAFR), Generally Accepted Accounting Procedures (GAAP), and Governmental Accounting Standards Board (GASB) announcements.
• Theories, principles, practices, problems and techniques of public administration and public financing.
• Investment, portfolio, and debt management, revenue forecasting, and long range financial planning.
• Budgetary principles and practices, including the development and management of capital improvement budgets.
• Financial and economic analysis techniques to determine feasibility and cost benefits of projects, labor utilization, and purchases.
• Practices of financial management software systems and ability to utilize various software programs to analyze and maintain large amounts of data. • Organizational planning techniques and methods including forecasting, goal setting, staffing, analyses and work planning.
• Current business practices and applications, functions and programs for personal computers. • Principles and practices of supervision, training and personnel management. • Business English including vocabulary, spelling, and correct grammatical usage and punctuation.

Skill or Ability to:
• Plan, organize and direct a variety of administrative activities including finance, accounting, and treasury.
• Interpret and apply rules and regulations regarding accounting and auditing practices. • Select, supervise, train, motivate, and evaluate assigned staff. • Work cooperatively with State, County and Federal government agencies. • Review, organize, and develop technical documents, proposals and reports. • Prepare clear, concise, and complete statistical and technical reports and written correspondence.
• Exercise sound independent judgment within general policy guidelines. • Analyze complex problems and financial data, evaluate alternatives, and make sound recommendations.
• Make persuasive presentations of ideas, concepts and recommendations. • Develop, implement and interpret goals, objectives, policies, procedures, work standards and internal controls.
• Stay current of municipal finance trends and innovations, embrace new technology, tools, and best practices, and implement improved processes and procedures. • Represent the City effectively in meetings with others. • Respectfully and effectively collaborate with a variety of people of varying backgrounds and roles. Demonstrate tact, professionalism, and diplomacy. • Prepare and present clear, concise, and logical written and oral reports, correspondence, policies, procedures, and other written materials.
• Communicate and coordinate activities effectively with officials, co-workers, subordinates, other City departments, the general public, representatives of organizations and others sufficient to exchange or convey information and receive work direction. • Communicate clearly and concisely, both orally and in writing, using appropriate English grammar and syntax.

Deputy Finance Director class specification Page 4 of 4 • Establish, maintain, and foster positive and effective working relationships with those contacted in the course of work.
• Effectively use computer systems, software applications, and current business equipment to perform a variety of work tasks.
• Respectfully and effectively collaborate with a variety of people of varying backgrounds and roles. Demonstrate tact, professionalism, and diplomacy.

Education and Experience:

Any combination of education and experience that would provide the required knowledge, skills, and abilities is qualifying. A typical way to obtain the required qualifications would be:

Possession of a bachelor’s degree from an accredited college or university with major coursework in financial management, accounting, management, business administration, public administration, public policy, or a related field, and six (6) years of increasingly responsible professional municipal or government experience in finance, accounting, budget, or a closely related field, this includes two (2) years supervisory experience. Master’s degree is desirable.

License and Certificate:

Possession of a valid driver license and a satisfactory driving record throughout employment.

PHYSICAL DEMANDS
Must possess mobility to work in a standard office setting and use standard office equipment, including a computer, and to operate a motor vehicle to visit various City and meeting sites; vision to read printed materials and a computer screen; and hearing and speech to communicate in person, before groups, and over the telephone. Finger dexterity is needed to access, enter, and retrieve data using a computer keyboard or calculator and to operate standard office equipment. Positions in this classification frequently sit for prolonged periods of time, bend, stoop, kneel, and reach to perform assigned duties, as well as push and pull drawers open and closed to retrieve and file information. Standing in and walking between work areas is frequently required. Employees must possess the ability to lift, carry, push, and pull materials and objects up to 25 pounds with the use of proper equipment.

ENVIRONMENTAL CONDITIONS
Employees work in an office environment with moderate noise levels, controlled temperature conditions, and no direct exposure to hazardous physical substances. Employees may interact with upset staff and/or public and private representatives in interpreting and enforcing departmental policies and procedures.

Employees must be available to attend day and evening meetings, at various sites within and outside the City.

Item F. 1.

DATE 01/11/2024
TO Honorable Mayor and City Council Members
FROM Anne Stedler, Deputy Economic Development Director SUBJECT Presentation: "Resilient East Bay" Industrial Lands Analysis SUMMARY AND RECOMMENDATION
Staff recommends that City Council receive an informational presentation introducing the "Resilient East Bay" Industrial Lands Analysis. No City Council action is requested.

BACKGROUND
Industrial lands and buildings are assets that generate taxes for the City and provide space where employers offer jobs. These assets are valuable for Newark's economy and have attracted diverse business sectors to our community, including technology, biotech, electric vehicles, batteries for electric vehicles, food production, printing, packaging, logistics, and more. A key question for Newark is: what makes industrial assets resilient?
The East Bay Economic Development Alliance (EBEDA) is a forum of member cities and companies in Alameda and Contra Costa Counties and takes action to keep East Bay industry competitive. In 2021, the EBEDA secured a federal grant to study industrial lands and propose city actions that improve industrial land resiliency. In November 2023, EBEDA completed "Resilient East Bay" for member cities, industry, and the public.

DISCUSSION/ANALYSIS
Dena Belzer, CEO of Strategic Economics, authored the "Resilient East Bay" analysis and will present her findings to the City Council. Ms. Belzer relied on many experts and stakeholders for current industry information. Two of these experts will present with Ms.

Belzer: economist Alexander Quinn studies and interprets large market changes that can affect industry and land values, and industrial broker Greg Matter helps match property owners and tenants in southern Alameda County and markets across the country. Mr. Quinn and Mr. Matter are with the brokerage firm, Jones Lang LaSalle, often referenced as JLL.
"Resilient East Bay" addresses the Alameda and Contra Costa County industrial landscape and is not a detailed analysis of Newark. The City recently entered a Consulting Services Agreement with Ms. Belzer's firm, Strategic Economics, to focus on Newark industrial assets and identify recommendations that strengthen industrial resiliency for Newark.

FISCAL IMPACT
There is no fiscal impact as a result of this presentation because no action is taking place.

REVIEW AND APPROVAL
Prepared by - Anne Stedler, Deputy Director of Economic Development Reviewed by - Steven Turner, Community Development Director Reviewed by - Krysten Lee, Finance Director
Reviewed by - Kristopher J. Kokotaylo, City Attorney
Approved by - David J. Benoun, City Manager
Attachments
Presentation
Resilient East Bay
Industrial Land Use Analysis and
Implementation Toolkit
Introduction
Newark City Council Meeting
January 11, 2024
Presentation Includes:

1. Resilient East Bay

2. Industrial Land Use Analysis Key Findings

3. Industrial Lands Toolkit

4. Next Steps for Newark

5. Questions and Answers
2 3
Resilient East Bay
Published by East Bay Economic Development
Alliance
Why Does Industrial Land Supply Matter
4 Bay Area Industrial Land
– East Bay Focus
Source: TomTom North America (2019); BASIS v0a
Planned or Existing
Industrial Land
Goals of Resilient East Bay

1. Streamline industrial retention and
development

2. Sustain and strengthen industrial land
supply

3. Support driving industries

4. Strengthen regional coordination

5. Provide technical assistance to Cities
5 Photo: Hayward Exchange @ 92. Source: Cushman and Wakefield. 6 Industrial Land Use Analysis
Key Findings for a Resilient East Bay
The East Bay is an Industrial Ecosystem
7 • East Bay cities have complementary assets
that make each city’s economy stronger
• East Bay communities benefit from a regional
workforce and regional supply chain
• The region supports all stages of industrial life
cycle
The East Bay Industrial Ecosystem is Large
8 East Bay Subregion
Map
Industrial Ecosystem is Growing
• Four “driving industry” groups:
• Distribution/Logistics
• Transportation
• Manufacturing
• Life Sciences
• From 2011-2021:
• 32% of all job growth was in these
four groups
• Each group grew by at least 25%
• Employment overall grew by 16%
9 Source: Courtesy of Cushman and Wakefield – Morton Commerce Center. -
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2011 2021 2011 2021 2011 2021
Distribution/Logistics
Transportation
Manufacturing
Life Sciences
10 Number of Jobs by Industry Type
Southern Alameda County Led East Bay Job Growth, 2011 - 2021 Source: Lightcast, 2023; Strategic Economics, 2023
Central
Alameda: 23%
Northern
Alameda: 27%
Southern
Alameda: 77%
Industrial Land Important for New Buildings,
2018 to 2022
• The East Bay added

11.7 million square feet
• Newark added 1.0
million square feet
• Jobs grew more quickly
than industrial space
overall
• New space is not always
required to support job
growth
11 Photo: Hayward Exchange @ 92. Source: Cushman and Wakefield.

Demand for Industrial Space
12 Source: JLL, 2023
Manufacturing, Food and Beverage, and Automotive tenants are seeking nearly 5 million square feet of industrial space
- 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 Distribution / Logistics
Manufacturing (not auto or food)
Food & Beverage
Automotive / Aerospace / Aviation
East Bay Silicon Valley
Quarterly Demand for Industrial Space: 2010-2022
• Average asking rents increased by 44% and vacancy dropped 4 percentage points since 2020
13 $0.51

10.6% $1.60

2.9%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
$1.60
$1.80
Average Asking Direct Rent (NNN / Month)
Industrial Average Rents and Vacancy
Q1 2010 – Q4 2023
Average Asking Direct Rent (NNN / Month) Total Vacancy
Note: Vacancy and asking rents for industrial buildings in Newark, Union City, Fremont, Milpitas, and East San Jose submarkets. JLL tracks buildings over 20,000 square feet in these respective submarkets. All rents are expressed in triple net terms.

January, 2024.

Source: JLL, 2023
• Demand is greater than supply where development is needed 14 0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
East Bay Demand vs. Vacant Space
0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
Silicon Valley Demand vs. Vacant Space
Demand for Industrial Space
Source: JLL, 2023
Supply
Demand
Supply
Demand
Warehouse Buildings Provide
Flexibility • Warehouse buildings are among
the most versatile industrial
building types
• Tenants & uses change over
time
• Most life sciences or
manufacturing businesses need
some warehouse and
distribution space
15 Sources:

CoStar, 2022;
Strategic
Economics,
2023.

Distribution/Log.

Transportation
Manufacturing
Life Sciences
Building for Flexibility
• Modern, Class A Industrial
buildings serve both advanced
manufacturing and
distribution/logistics
• Industrial buildings designed
today can accommodate most
tenants
16 17
Industrial Land Use
Implementation Toolkit
Essential Tools for a
Resilient East Bay
Toolkit Use:

Protecting Economic
Resilience by
Protecting Industrial
Lands
18 Industrial Land Toolkit Areas of Focus
Resilient East Bay Industrial Lands Landing Page
Why These Tools

1. Zoning and Project Approvals • Land use clarity and simplified approvals process is major incentive for business
attraction

2. Planning & Local Finance • Holistic approach integrating land use, infrastructure funding and financing, and other
community benefits

3. Building on the East Bay’s Industrial Ecosystem • Fosters coordinated advocacy, joint marketing, networking, collaboration, and technology
transfer
19 Next Steps: Newark Industrial Land Analysis

1. Assess existing conditions

2. Data and findings

3. Prepare recommendations

4. Outreach and communications
20 21
Questions and Answers
Resilient East Bay
Item F. 2.

DATE 01/11/2024
TO Honorable Mayor and City Council Members
FROM Steven Turner, Community Development Director
SUBJECT Adoption of an ordinance adding Chapter 17.15 to the Newark Municipal Code to establish the By Right Housing (-BRH) Overlay District, amending the Newark Zoning Map by applying the -BRH Overlay District to specific parcels, and making related miscellaneous amendments to Title 17, Zoning, of the Newark Municipal Code
SUMMARY AND RECOMMENDATION
Staff recommends that the City Council waive further reading and adopt an ordinance adding Chapter 17.15 to the Newark Municipal Code to establish the By Right Housing (-BRH) Overlay District, amending the Newark Zoning Map by applying the -BRH Overlay District to specific parcels, and making related miscellaneous amendments to Title 17, Zoning, of the Newark Municipal Code.

BACKGROUND
At its December 14, 2023 meeting, the City Council introduced an ordinance adding Chapter 17.15 to the Newark Municipal Code to establish the By Right Housing (-BRH) Overlay District, amending the Newark Zoning Map by applying the -BRH Overlay District to specific parcels, and making related miscellaneous amendments to Title 17, Zoning, of the Newark Municipal Code (the "BRH Ordinance").

DISCUSSION/ANALYSIS
The City Council voted to accept the Planning Commission recommendation and introduced the BRH Ordinance on December 14, 2023 (3-0-0-2, Council members Collazo and Freitas recused). The City Council must now take action to adopt the BRH Ordinance. The BRH ordinance take effect on February 10, 2024, 30 days after adoption.

FISCAL IMPACT
There is no fiscal impact associated with the adoption of the BRH ordinance.

REVIEW AND APPROVAL
Prepared by - Steven Turner, Community Development Director Prepared by - Steven Turner, Community Development Director Reviewed by - Krysten Lee, Finance Director
Reviewed by - Kristopher J. Kokotaylo, City Attorney
Approved by - David J. Benoun, City Manager
Attachments
Ordinance
Exhibit A - Findings of Fact
Exhibit B - Municipal Code Amendments
Exhibit C - Parcels to be Rezoned
Exhibit D - Map
Ordinance No. ______ 1 of 4
ORDINANCE NO. ______

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEWARK ADDING CHAPTER 17.15 TO THE NEWARK

MUNICIPAL CODE TO ESTABLISH THE BY RIGHT

HOUSING (-BRH) OVERLAY DISTRICT, REZONING

CERTAIN PROPERTY INTO THE -BRH OVERLAY DISTRICT

AND MAKING RELATED MISCELLANEOUS AMENDMENTS
TO TITLE 17, ZONING, OF THE NEWARK MUNICIPAL
CODE.

WHEREAS, The City Council of the City of Newark adopted Resolution No. 9684 adopting a Housing Element Update for the 4
th Cycle period between 2009 and 2014 (the 4th Cycle
Housing Element), which identified housing sites that would accommodate the City’s Regional Housing Needs Allocation (RHNA); and
WHEREAS, The City Council of the City of Newark adopted Resolution No. 10361 approving the amendment to the General Plan by replacing the Housing Element with the Housing Element Update 2015 (for the period between 2015 and 2023), which identified housing sites that would accommodate the City’s Regional Housing Needs Allocation (RHNA); and WHEREAS, the California Legislature has found that “California has a housing supply and affordability crisis of historic proportions. The consequences of failing to effectively and aggressively confront this crisis are hurting millions of Californians, robbing future generations of the chance to call California home, stifling economic opportunities for workers and businesses, worsening poverty and homelessness, and undermining the state’s environmental and climate objectives” (Gov. Code Section 65589.5); and
WHEREAS, State Housing Element Law (Government Code Sections 65580 et seq.) requires that the City Council adopt a Housing Element for the eight-year period 2023-2031 to accommodate the City of Newark’s (City) RHNA of 1,874 housing units, comprised of 464 verylow-income units, 268 low-income units, 318 moderate-income units, and 824 above moderateincome units; and WHEREAS, to comply with State Housing Element Law, the City has prepared the 2023- 2031 Housing Element (the Housing Element) in compliance with State Housing Element Law which establishes the framework for housing goals, policies, and programs and has identified sites that can accommodate housing units meeting the City’s RHNA; and WHEREAS, on October 24, 2023, the Planning Commission adopted Resolution No. 2009, recommended that the City Council adopt a general plan amendment to repeal the Fifth Cycle Housing Element for the period of 2015-2023 and adopt the Housing Element of the General Plan Ordinance No. ______ 2 of 4
for the Period of 2023-2031 and adopt the Safety Element of the General Plan, in compliance with State Housing Element Law; and
WHEREAS, on October 26, 2023, the City Council adopted Resolution No. 11,575, adopting a general plan amendment to repeal the Fifth Cycle Housing Element for the period of 2015-2023 and adopt the Housing Element of the General Plan for the Period of 2023-2031 and adopt the Safety Element of the General Plan, in compliance with State Housing Element Law; and
WHEREAS, certain housing sites identified in the Housing Element Update 2015 were not developed with residential uses during the period between 2015-2022 and it is the City’s desire to “carry over” these certain sites to the Housing Element 2023-2031 to be used as sites that can accommodate housing units meeting the City’s RHNA.

WHEREAS, Government Code Section 65583.2(c) provides that if a nonvacant site identified in the Housing Element Update 2015, or a vacant site identified in both the both the 4 th
Cycle Housing Element and Housing Element Update 2015, was not developed with a residential use, that site may only be included in the Housing Element if the City rezones the site within a specified period of time to allow residential use by right for housing developments in which at least 20% of the units are affordable to lower income households; and WHEREAS, the Housing Element includes26 sites that would be carried over from the Housing Element Update 2015 and identified as sites to accommodate the City’s RHNA.

WHEREAS, the identified carry-over sites are capable to be developed with residential uses having densities of at least 20 units per acre; and WHEREAS, the City desires to amend the Zoning Code by adding Chapter 17.15, By Right Housing (-BRH) Overlay District, to implement the Housing Element and more specifically identify the applicability standards for residential development that may be developed by-right without discretionary review; and
WHEREAS, the City also desires to amend the Newark Zoning Map by applying the By Right Housing (-BRH) Overlay District to specific parcels throughout the City and making other miscellaneous related changes; and
WHEREAS, the adoption of Chapter 17.15, By Right Housing (-BRH) Overlay District and an amendment of the Newark Zoning Map, and other miscellaneous related changes are collectively referred to as the “Project”; and
WHEREAS, a staff report dated November 14, 2023, and incorporated herein by reference, described and analyzed the Project for the Planning Commission; and WHEREAS, on November 14, 2023, the Planning Commission reviewed the staff report at a noticed public hearing on the Project, at which time all interested parties had the opportunity to be heard; and
Ordinance No. ______ 3 of 4
WHEREAS, following the public hearing, the Planning Commission considered the staff recommendation as provided in the staff report, adopted Resolution 2009 incorporated herein by reference, and transmitted the resolution to the City Council; and WHEREAS, a staff report dated December 14, 2023, and incorporated herein by reference described and analyzed the Project for City Council; and WHEREAS, on December 14, 2023, the City Council reviewed the staff report at a duly noticed public hearing on the Project, at which time all interested parties had the opportunity to be heard; and
WHEREAS, pursuant to Newark Municipal Code section 17.31.060 and pursuant to State law, the City published a public hearing notice in The Tri City Voice on November 28, 2023 and mailed as required for a public hearing before the City Council at 7:00 p.m. on December 14, 2023; and
WHEREAS, the City Council fully considered the Project at the public hearing; and WHEREAS, the City Council finds that the Project meets the requisite findings of fact necessary for approval as further explained in the staff report and the recommended findings of fact and determinations associated with this Ordinance, as identified in “Exhibit A” attached to this Ordinance; and
WHEREAS, the location and custodian of the Project application and other documents that constitute a record of proceedings for the Project is the City of Newark, 37101 Newark Blvd., Newark, CA 94560; and
WHEREAS, the City’s General Plan, Zoning Code, and Municipal Code are incorporated herein by reference, and are available for review at City Hall during normal business hours and on the City’s website.

NOW, THEREFORE, the City Council of the City of Newark does ordain as follows:

Section 1. That the forgoing recitals are true and correct and made part of this Ordinance.

Section 2.The Project is exempt from further environmental review under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3) since the proposed amendments to the Zoning Code and Zoning Map have no potential for causing a significant effect on the environment. The proposed changes to the Zoning Code and Zoning Map do not provide entitlements for any land use development projects, nor do they change the allowed uses of land or the intensity of any previously authorized use of land. Therefore, it can be seen with certainty that adoption of the proposed Zoning Code and Zoning Map amendments will have no significant effect of the environment.

Ordinance No. ______ 4 of 4
Section 3: Pursuant to NMC Sections 17.39.070 and 17.39.080, the City Council of the City of Newark does hereby make the findings of fact and determinations required by the City of Newark Municipal Code as further explained in the staff report and set forth in “Exhibit A” attached hereto and incorporated herein by this reference.

Section 4: Title 17. Zoning, of the Newark Municipal Code is hereby amended to add Chapter

17.15, By Right Housing (-BRH) Overlay District, and to make other miscellaneous regulated changes as identified in “Exhibit B”, attached hereto and incorporated herein by reference.

Section 5: The City Council hereby approves an amendment to the Newark General Plan land use and Zoning Map by applying the By Right Housing (-BRH) Overlay District to specific parcels, as identified in “Exhibits C & D”, attached hereto and incorporated herein by reference.

Section 6: If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any other person or circumstance. The City Council of the City of Newark hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof is declared invalid or unenforceable.

Section 7: Effective Date. This ordinance shall take effect thirty (30) days from the date of its passage. Before expiration of fifteen (15) days after its passage, this ordinance shall be published in The Tri-City Voice, a newspaper of general circulation published and printed in the County of Alameda and circulated in the City of Newark.

Exhibit A
Findings of Fact
Pursuant to Newark Municipal Code Sections 17.39.0760 and 17.39.080, the City Council of the City of Newark does hereby make the findings of fact and determinations required by the City of Newark Municipal Code.

The City Council shall not approve a zoning amendment unless the proposed amendment meets the following criteria:

A. The amendment is consistent with the general plan, in that on October 26, 2023, the City Council of the City of Newark adopted Resolution No. 11,575, adopting a general plan amendment to repeal the Fifth Cycle Housing Element for the period of 2015-2023 and adopt the Housing Element of the General Plan for the Period of 2023-2031 and adopt the Safety Element of the General Plan, in compliance with State Housing Element Law. The 2023-2031 Housing Element contains the following policy related to the recommended action:

POLICY H3.1: Allow By-Right Approval of Projects with 20 Percent Affordable Units on “Reused” Sites. Pursuant to AB 1397, amend the Zoning Ordinance to require by-right approval of housing development that includes 20 percent of the units as housing affordable to lower-income households, on sites being used to meet the 6th Cycle RHNA that represent “reuse sites” previously identified in the 4th and 5th Cycles Housing Element, and on sites that are subject to a text amendment to accommodate the lower-income RHNA.

B. Any change in district boundaries is necessary to achieve the balance of land uses desired by the city, consistent with the general plan, and to increase the inventory of land within a given zoning district. There are no changes to district boundaries proposed as part of the action.

C. The amendment will promote the growth of the city in an orderly manner and to promote and protect the public health, safety, peace, comfort and general welfare, in that the proposed action is necessary to comply with State law and may result in the production of additional housing that is affordable to lower-income households throughout the community.

Amendments to Title 17 of the City of Newark Municipal Code Additions to Title 17 are shown in redline
Chapter 17 ZONING ORDINANCE

17.03.010 - Districts established.

The city shall be classified into districts or zones, the designation and regulation of which are set forth in this title and as follows:

A. Base Zoning Districts. Base zoning districts into which the city is divided are established as shown in Table 17.03.010, Base and Overlay Zoning Districts.

B. Overlay Zoning Districts. Overlay zoning districts, one or more of which may be combined with a base district, are established as shown in Table 17.03.010, Base and Overlay Zoning Districts.

TABLE 17.03.010: BASE AND OVERLAY ZONING DISTRICTS
Zoning District
Symbol Zoning District Name
General Plan Land
Use Designation Implemented by
Zoning District
Residential Districts
RS Residential Single Family Low Density Residential
RL Residential Low Density Low-Medium Density Residential RM Residential Medium Density Medium Density Residential RH Residential High Density High Density Residential
Commercial and Mixed Use Districts
NC Neighborhood Commercial Neighborhood Commercial
CMU Commercial Mixed Use Commercial Mixed Use
CR Commercial Retail Community Commercial
CC Community Commercial Community Commercial
RC Regional Commercial Regional Commercial
Employment Districts
PO Professional Office Office Commercial
BTP Business and Technology
Park Special Industrial
LI Limited Industrial Limited Industrial
GI General Industrial General Industrial
Public and Semi-Public Districts
PF Public Facilities Public-Institutional
TS Transit Station Public-Institutional
PK Park Parks and Recreation Facilities
OS Open Space Conservation-Open Space
Resource Production District
RP Resource Production Salt Harvesting, Refining, and
Production
Overlay District
-FBC Form Based Code Not Applicable
-PD Planned Development Not Applicable
-OT Old Town Not Applicable
-BRH By-Right Housing Not Applicable
Chapter 17.15 – BY-RIGHT HOUSING (-BRH) OVERLAY ZONE DISTRICT

17.15.010 - Purpose.

This overlay zone district provides supplementary land use, affordable housing requirements, and review procedures for base districts located within the City of Newark. The overlay zone district implements requirements of state law regarding streamlined review procedures for residential projects identified in the city’s adopted General Plan Housing Element that have been “carried over” from previously adopted housing elements. This zone district does not modify permitted uses, nor does it restrict property owners from developing projects consistent with the requirements provided in this Title for the base or underlying zone district.

17.15.020 - Applicability.

The standards and regulations of this chapter apply to the planning area designated with the -BRH extension on the Zoning Map. Except as provided in this chapter, all new structures and development, as well as alterations to existing structures, shall comply with the requirements of the base zoning district.

17.15.030 – Permitted Uses.

Any use permitted in the underlying District that is combined with an -BRH Overlay Zone District shall be allowed subject to the procedures of the underlying District, as modified by the -BRH district.

17.15.040 – Procedures.

A. Residential Uses Allowed By-Right. Residential projects that comply with all applicable objective standards and criteria of the underlying District, include a minimum of 20 dwelling units per acre, and provide 20 percent of the units in the project as affordable to lower-income households do not require discretionary review under this Title. Lowerincome shall have the same meaning as in Health and Safety Code section 50079.5.

Qualifying projects are still subject to Design Review, except that such Design Review shall be ministerial, notwithstanding anything in NMC Chapter 17.35 to the contrary.

B. Requirements for Affordable Units. The developer of a residential project under this chapter shall comply with the provisions of NMC 17.18.060 for the residential units designated as affordable to lower-income households, consistent with applicable requirements in state law. Where the requirements of state law conflict with the requirements of this Title, state law shall prevail.

Exhibit C
Parcels to be Rezoned with the By Right Housing (-BRH) Overlay District 92-30-17-2 6765 THORNTON AVE NEWARK 94560
92-30-14-3 6717 THORNTON AVE NEWARK 94560
92-30-16-2 6749 THORNTON AVE NEWARK 94560
92-30-18-4 6781 THORNTON AVE NEWARK 94560
92-30-15-2 6733 THORNTON AVE NEWARK 94560
92-31-16-2 6825 THORNTON AVE NEWARK 94560
92-31-15 36965 OLIVE ST NEWARK 94560
92A-900-1-2 36601 NEWARK BLVD NEWARK 94560
92-29-20-2 36976 MULBERRY ST NEWARK 94560
92-29-16-2 6537 THORNTON AVE NEWARK 94560
92-29-19-2 6625 THORNTON AVE NEWARK 94560
92-29-18-2 6609 THORNTON AVE NEWARK 94560
92-51-5-3 6716 THORNTON AVE NEWARK 94560
92-29-17-2 6553 THORNTON AVE NEWARK 94560
92-29-13 36937 CHERRY ST NEWARK 94560
92-51-2-3 6788 THORNTON AVE NEWARK 94560
92A-2125-17 37900 CEDAR BLVD NEWARK 94560
92A-2125-11-2 37750 TIMBER ST NEWARK 94560
92A-2125-13 37640 CEDAR BLVD NEWARK 94560
92A-2585-32 5545 CEDAR CT NEWARK 94560
92-50-13 37053 CHERRY ST NEWARK 94560
92-255-11 37200 SYCAMORE ST NEWARK 94560
92A-2375-32 38290 CEDAR BLVD NEWARK 94560
92-131-3 37257 FILBERT ST NEWARK 94560
92-131-2-4 37243 FILBERT ST NEWARK 94560
92-131-1-9 FILBERT ST NEWARK 94560
¯
Sites to be Rezoned
Parks
Newark City Boundary
0 0.25 0.5 1 mi.

Mowry Ave.

Smith Ave.

Cherry St.

Central Ave.

Thorton Ave. Cedar Blvd.

Newark Blvd.

Willow St.

Thorton Ave.

Mayhews Landing Rd.

Jarvis Ave.

Spruce St.

Haley St.
23 15 17
18 21
22 19
Sycamore St.

Filbert St.
8 - 6765 Thornton Ave.
8 - 6717 Thornton Ave.
8 - 6749 Thornton Ave.
8 - 6781 Thornton Ave.
8 - 6733 Thornton Ave.
9 - 6825 Thornton Ave.
9 - 36965 Olive St.
15 - 36601 Newark Blvd.
16 - 36976 Mulberry St.
16 - 6537 Thornton Ave.
16 - 6625 Thornton Ave.
16 - 6609 Thornton Ave.
16 - 6716 Thornton Ave.
16 - 6553 Thornton Ave.
16 - 36937 Cherry St.
16 - 6788 Thornton Ave.
17 - 37900 Cedar Blvd.
17 - 37750 Timber St.
17 - 37640 Cedar Blvd.
18 - 5545 Cedar Ct.
19 - 37053 Cherry St.
21 - 37200 Sycamore St.
22 - 38290 Cedar Blvd.
23 - 37257 Filbert St.
23 - 37243 Filbert St.
23 - unknown Filbert St.

Old Town Inset
8 9
23 16
16 19
21 Thorton Ave.

Sycamore St.

Cherry St.

Magnolia St.

Mulllbery St.

Olive St.

Bain Ave.

Dairy Ave.

Filbert St.

Ash St.

Site Number / Address
Exhibit D

Newark City CouncilJanuary 11, 2024

Newark City Council
January 11, 2024