AGENDA
Thursday, January 23, 2025
7:00 P.M.
A. ROLL CALL
B. PRESENTATIONS
1. Alameda County Fire Department Presentation
2. Christina Soto presentation on Eden Council for Hope and Opportunity (known as ECHO Housing)
C. PUBLIC COMMENT
The public is invited to address the City Council on any item not listed on the agenda. Public Comments are generally limited to 5 minutes per speaker. Please note that State law prohibits the Council from acting on non-agenda items.
D. CONSENT CALENDAR
Consent Calendar items are considered to be routine and may be approved by one motion.
There will be no separate discussion on these items unless there is a request by a Council Member, a staff member, or a member of the public to remove an item for separate discussion and action.
1. Approval of Audited Demands
2. Approval of January 9, 2025, minutes
3. Adopt a Resolution to Approve an Amendment to the Contractual Services Agreements with Urban Planning Partners for on-call planning services
4. Accept the Annual Comprehensive Financial Report (ACFR) for the period ending June 30, 2024.
E. PUBLIC HEARINGS
F. OTHER BUSINESS
G. CITY MANAGER UPDATES
H. 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.
1. City Council consideration of City Council Summer Recess and consideration of potential resolutions amending City Council regular meeting schedule and summer recess 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 2449, then the Webinar 817 7536 0513 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.
Mission Statement
It is our mission to serve and partner with our community to continually enhance the quality of life of everyone in Newark.
Executive Team Members
David J. Benoun
City Manager
Lenka Hovorka
Assistant City Manager
Kristopher J. Kokotaylo
City Attorney
Steven Turner
Community Development Director
Jonathan Arguello
Police Chief
Edwin Miranda
CIO/Information Technology
Director
Howard Young
Public Works Director
Cora Dino
Human Resources Director
Krysten Lee
Finance Director
Ryan Nishimoto
ACFD Deputy Chief
Nicholas Cuevas, Recreation and Community Services Director Item B. 1.
DATE 01/23/2025
TO Honorable Mayor and City Council Members
FROM Sheila Harrington, City Clerk
SUBJECT Alameda County Fire Department Presentation
Fire Chief Willie McDonald will give a presentation to the City Council on the Alameda County Fire Department (ACFD). The presentation will highlight resources and programs, current initiatives, and the ACFD Strategic Business Plan for 2023 to 2033.
A copy of the presentation is attached to the staff report.
Attachments
Presentation
Item B. 2.
DATE 01/23/2025
TO Honorable Mayor and City Council Members
FROM Steven Turner, Community Development Director
SUBJECT Christina Soto presentation on Eden Council for Hope and Opportunity (known as ECHO Housing)
City staff recommends that the City Council receive an informational presentation from Christina M. Soto, Executive Director of the Eden Council for Hope and Opportunity (known as ECHO Housing). Ms. Soto will provide an overview of ECHO Housing and their services to Newark and the broader Alameda County community. No action by the City Council is necessary.
Attachments
Presentation
E C H O
H O U S I N G
E S T . 1 9 6 5
About Us...
The Eden Council for Hope and Opportunity
(ECHO Housing) was founded in 1964 and
incorporated in 1965 by community
volunteers dedicated to equal housing
opportunities and the prevention and
elimination of homelessness.
ECHO is a HUD-approved Housing
Counseling Agency (LHCA) and a Qualified
Fair Housing Enforcement Organization
(QFHO) providing services to very low and
moderate income residents in the Counties
of Alameda, Contra Costa, and Monterey.
E C H O
H O U S I N G
22551 Second Street #200
Hayward CA 94541
510-581-9380
855-ASK-ECHO
[email protected]
www.echofairhousing.org
Ch ristin a M Soto
EXECUTIVE DIRECTOR
C O U N S E L I N G , I N V E S T I G A T I O N
& E D U C A T I O N
Conduct site investigations in
response to reports of housing
discrimination complaints.
Conduct rental housing audits to
determine degree of housing
discrimination.
Provide educational seminars for
members of the housing industry
(managers, owners, realtors,
etc.).
SERVING
Counties of Alameda,
Contra Costa, and
Monterey
Cities of Alameda,
Berkeley, Concord,
Hayward, Livermore,
Monterey, Newark,
Oakland, Pleasanton,
Richmond, Salinas, San
Leandro, Seaside, Union
City, and Walnut Creek.
Offices in Hayward,
Livermore,Oakland and
Monterey County.
F A I R H O U S I N G
Provide information to tenants
and landlords on their housing
rights and responsibilities.
Facilitate conciliation or
mediation in a variety of
tenant/landlord disputes.
Primary objective of the program
is to build awareness of housing
laws and to preserve housing.
SERVING
Counties of Alameda,
Contra Costa, and
Monterey
Cities of Alameda,
Concod Hayward,
Livermore, Monterey,
Newark, Pleasanton,
Richmond, Salinas,
San Leandro, Seaside,
Union City, and
Walnut Creek.
Offices in Hayward,
Livermore,Oakland
and Monterey County
T E N A N T / P R O P E R T Y O W N E R
C O U N S E L I N G , D I S P U T E
R E S O L U T I O N & E D U C A T I O N
Assist with delinquent rent or
security deposit due to a
temporary financial setback.
Helps by arranging a guaranteed
repayment contract between the
tenant and the property owner.
Assistance is provided as funding
becomes available and tenants are
eligible
SERVING
Residents of Alameda
County
Offices in Hayward
and Livermore.
R E N T A L A S S I S T A N C E
P R O G R A M
E V I C T I O N P R E V E N T I O N
Provide 8-hour First Time Homebuyer
workshops on credit, budgeting,
government-assisted programs,
conventional financing, purchase and
lending procedures, inspections, closing
costs, fair housing, and fair lending.
Conduct 2-hour workshops outlining
the Affordable Homeownership
Programs and Mortgage Assistance
Programs offered by Cities of Livermore
and Pleasanton.
SERVING
Alameda, Contra Costa
and Monterey County
residents
Office in Hayward
H O M E B U Y E R
E D U C A T I O N
E D U C A T I O N
Assist potential homebuyers by
providing one-on-one counseling
on credit repair, budget, and
predatory lending.
Identify homebuying opportunities
including mortgage financing, and
determines eligibility for local,
state, and federal affordable
homeownership programs.
SERVING
Alameda, Contra Costa
and MontereyCounty
residents
Offices in Livermore
and Hayward
P R E - P U R C H A S E
C O U N S E L I N G
Offer basic tips on looking for,
finding, and applying for rentals.
Provide referrals to available
housing in the area.
Provide referrals to Public Housing
Authorities with open waiting lists
for the Housing Choice Voucher.
SERVING
Residents of Cities of
Livermore and
Plesanton
Office in Livermore
H O M E S E E K I N G
H O U S I N G I N F O R M A T I O N
Provide face to face interview
services, counseling on
homesharing and shared living,
background checks.
Offer matching services, supportive
services, and referral to other
services.
Provide educational workshops on
shared living.
SERVING
Residents of Livermore
and Pleasanton.
Office in Livermore
S H A R E D H O U S I N G &
P L A C E M E N T
A F F O R D A B L E H O U S I N G
P R O G R A M A D M I N I S T R A T O R
F O R :
R E N T R E V I E W
Alameda County Rent Review Program
City of Albany Rent Review Program
City of Concord Just Cause/Rent Stabilization
Ordinance
City of Emeryville Eviction Harassment Program
City of Union City Rent Review Program &
Eviction Harassment
City of Larkspur Just Cause/Rent Stabilization
Ordinance
C O N T A C T I N F O R M A T I O N
Administrative Office
22551 Second Street #200
Hayward CA 94541
Livermore Office
141 N. Livermore Avenue
Livermore CA 94550
855-ASK-ECHO toll free
Oakland Office
1305 Franklin Street #305
Oakland CA 94612
Monterey County
Various Sites
www.echofairhousing.org
Item D. 1.
DATE 01/23/2025
TO Honorable Mayor and City Council Members
FROM Krysten Lee, Finance Director
SUBJECT Approval of Audited Demands
Attachments
Audited Demands 12.19.24
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Item D. 2.
DATE 01/23/2025
TO Honorable Mayor and City Council Members
FROM Sheila Harrington, City Clerk
SUBJECT Approval of January 9, 2025, minutes
Attachments
Minutes
City of Newark | Newark City Council
Mayor Michael K. Hannon | Vice Mayor Eve Marie Little | Council Members: Matthew Jorgens, Terrence Grindall, Julie Del Catancio
Draft
Thursday, January 9, 2025
7:00 P.M.
A. ROLL CALL
Mayor Hannon called the meeting to order at 7:00 p.m. Council Members Jorgens, Grindall, Catancio, and Vice Mayor Little were present.
B. PRESENTATIONS
1. Commending Community Emergency Response Team Member Garry Zatarain Mayor Hannon presented the commendation to Garry Zatarain in honor of his retirement from the Community Emergency Response Team.
2. Commending Kenji Kawabata for his track meet accomplishments Mayor Hannon presented the commendation to Kenji Kawabata for his athletic accomplishments.
3. Introduction of employee(s)
Mayor Hannon introduced: Cora Dino, Interim Human Resources Director, Michael Coulom, Housing Policy and Programs Manager, Daniel Sequeira, City Engineer, Yvonne Huynh, Assistant Planner, and Reggie Tamse, Human Resources Technician.
C. PUBLIC COMMENT
Mike Marzano extended an invitation to attend the Dr. Martin Luther King, Jr. (MLK) remembrance event on Sunday at the First Presbyterian Church.
Page No. 2
City of Newark City Council Minutes January 9, 2025
D. CONSENT CALENDAR
Council Member Grindall moved, Council Member Jorgens seconded, to approve Consent Calendar items D.1 to D.2, 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 December 12, 2024, special and regular meeting minutes E. PUBLIC HEARINGS
F. OTHER BUSINESS
1. Economic Development Update and Informational Report Deputy Economic Development Director Tsui gave the presentation. Presentation on file with City Clerk.
The City Council discussed community engagement for Economic Development Initiatives, hotel rates, plaques for businesses that complete emergency preparedness training, tools to encourage businesses to fill vacant properties, possible recreation amenities at NewPark Mall such as a bowling alley.
In response to Council Member Grindall’s comments, Community Development Director Turner stated that staff was working on proactive code enforcement and promoting the city to commercial brokers. Municipal Code amendments could be considered if the proactive steps did not work to fill and/or maintain vacant business properties, if that was Council’s desire.
This item was information only.
G. CITY MANAGER UPDATES
City Manager Benoun announced: Planning Commission and Measure GG applications were being accepted by the City Clerk until January 29, today was City Attorney Kokotaylo’s birthday.
Page No. 3
City of Newark City Council Minutes January 9, 2025
H. CITY COUNCIL MATTERS
1. Resolution nominating Council Member Grindall to the Housing Commission of the Alameda County Housing Authority
Resolution No. 11722
Mayor Hannon nominated Council Member Grindall as his replacement on the Housing Commission of the Alameda County Housing Authority.
Council Member Jorgens moved, Vice Mayor Little seconded to adopt a resolution nominating Council Member Grindall to the Housing Commission of the Alameda County Housing Authority. The motion passed, 5 AYES.
Council Member Catancio stated she attended one of Kenji Kawabata’s track meets and highlighted audience members at the meeting in support of Mr.
Kawabata. She congratulated Cheri Villa on being elected Newark Teachers Association President and the School Board Members on their election. She announced the Newark Memorial High School Library (NMHS) Art Fair on February 4, 2025, Coffee with the Principal at NMHS on January 14, 2025, to be followed by the PTA meeting.
Council Member Grindall suggested changing the City Council’s August recess to July to better align with local schools’ summer break.
Council Member Jorgens stated he would have objections to the change.
City Manager Benoun stated that staff would conduct a brief survey and would return in February for Council consideration.
Council Member Grindall stated that he would hold a Coffee with a Council Member this Saturday at Old Town Starbuck’s at 2 pm. He requested that the City Council adjourn the meeting in memory of former President Jimmy Carter.
Vice Mayor Little stated that she is organizing Pokémon VIP parties with the School District, a senior citizen scam prevention workshop, a senior citizen right of passage workshop with a funeral school, and a showcase and workshop for Newark Young Authors at the Newark Library.
Mayor Hannon stated he would adjourn the meeting in memory of President Jimmy Carter and longtime Newark resident Mary Anne Anas.
Page No. 4
City of Newark City Council Minutes January 9, 2025
I. CLOSED SESSION
J. ADJOURNMENT
Mayor Hannon adjourned the meeting at 8:24 p.m. in memory of President Jimmy Carter and Newark resident Mary Anne Anas.
Item D. 3.
DATE 01/23/2025
TO Honorable Mayor and City Council Members
FROM Art Interiano, Deputy Community Development Director SUBJECT Adopt a Resolution to Approve an Amendment to the Contractual Services Agreements with Urban Planning Partners for on-call planning services
SUMMARY AND RECOMMENDATION
In 2021, the City Council selected Urban Planning Partners as one of three planning firms to support the Community Development Department with on-call planning services for complex project management tasks, technical work, specialty services, and staff augmentation as needed. The original contract with Urban Planning Partners was executed in 2021 for a not-to-exceed amount of $175,000. The current request to amend the existing contract would increase the not-to-exceed amount to a total of $350,000. Staff recommends that the City Council approve an amendment to the contractual service agreement with Urban Planning Partners for on-call planning services.
BACKGROUND
The Community Development Department (CDD) has a need for additional services which requires an amendment to an existing on-call planning services contract with Urban Planning Partners. The City has relied upon professional consultants to provide services and experience that City staff cannot provide, such as technical traffic and circulation studies and environmental review services, as well as staff capacity during busy periods or when staff resources are low. For example, the City has several contractual service agreements with consultants for on-call public works construction inspection, civil engineering development plan review services, and economic development services. These consultant services agreements allow the City to address specialty service and experience needs while maintaining high customer service levels.
DISCUSSION/ANALYSIS
The CDD needs specialty consultant services and technical assistance for various efforts. Planning Division staff is responsible for significant projects, such as the implementation of previously approved specific plans and residential housing projects, and commercial/retail developments. City staff is also responsible for processing numerous smaller commercial and residential projects throughout the community, administering the city’s existing housing policies and programs, and implementing new policies to address community needs and be consistent with State housing laws. Significant staff work and cooperation with CDD’s two other divisions, Community Preservation and Economic Development, are also necessary to ensure that all CDD functions to serve the public operate efficiently. CDD’s current staff team is near or above its capacity to accommodate new projects and develop innovative new policies, programs, and other improvements, particularly with regard to affordable housing.
In 2020, staff prepared and initiated an open and competitive Request for Qualifications (RFQ) for on-call professional planning services and affordable housing program management services. In accordance with the City's Purchasing Rules and Regulations, Urban Planning Partners (UPP) was identified as a qualified consultant and was selected for a Contractual Service Agreement contract with a not-to-exceed value of $175,000.00. Over the last two years, UPP has provided project management services for the Council-approved Lepashki Homes project and is currently assisting with a new ADU Program enhancement project. CDD staff are pleased with the service and experience of the members of the UPP team.
Staff recommends an increase of $175,000 to UPP's Contractual Service Agreement budget for on-call professional planning services, with a new not-to-exceed amount of $350,000. Typical work under this agreement would include, but is not limited to:
Provide project management for large, complex planning projects; Process planning entitlements and long-range planning projects, including but not limited to general plan and zoning code amendments, planned development permits, design review, and conditional use permits;
Assist City staff in overseeing California Environmental Quality Act (CEQA) consultants for the preparation of complex environmental reviews, including Addendums, Mitigated Negative Declarations and Environmental Impact Reports, and
Make presentations before the City Council, committees, community groups, boards, commissions, and other governmental bodies as required.
Work performed under these agreements would primarily be for large, complex projects whose costs are reimbursed by the applicant. Other work under the agreement include providing assistance to City staff to enhance staff capacity for projects that are not reimbursable by project applicants and for various administrative, city projects, and customer service functions such as:
Review development proposals and work with developers;
Prepare staff reports and graphic displays;
Analyze projects and prepare initial studies and environmental documents; Review development plans for conformance with the Zoning Ordinance; Process design review applications, zoning verification letters, minor use permits/conditional use permits;
Confer with and advise applicants regarding City development policies and standards, and
Create and implement other policies or programs as identified by City staff.
FISCAL IMPACT
FISCAL IMPACT
The proposed amendment increases the contract with Urban Planning Partners to a not-to-exceed amount of $350,000. Funding will come from developer reimbursement agreements and the Community Development Department’s Planning Division’s Professional Services budget for non-reimbursable initiatives.
REVIEW AND APPROVAL
Prepared by - Art Interiano, Deputy Community Development Director 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
UPP Amendment Resolution
First Amendment to CSA with Urban Planning Partners Inc Original Contract with UPP 2021
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWARK APPROVING AN AMENDMENT TO THE
CONTRACTUAL SERVICES AGREEMENT WITH URBAN
PLANNING PARTNERS INC TO INCREASE THE NOT-TOEXCEED AMOUNT TO $350,000 WHEREAS, in 2020 the Community Development Department issued Requests for Qualifications for On-call Professional Planning Services; and WHEREAS, based on staff’s evaluation, Urban Planning Partners was determined to be the most qualified firm for On-call Professional Planning Services; and WHEREAS, the City entered into a Contractual Services Agreement with Urban Planning Partners on January 7, 2021 and now wishes to increase the budget amount from the original agreement amount of $175,000 to a not-to-exceed amount of $350,000; and WHEREAS, the costs for Professional Planning Services would be primarily recovered though reimbursement agreements as well as the existing Community Development General Fund budget.
NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Newark hereby authorizes the City Manager to execute an amendment to Contractual Services Agreement, in a form approved by the City Attorney and attached hereto and incorporated herein by reference, with Urban Planning Partners Inc. to increase the not to exceed amount to $350,000 BE IT FURTHER RESOLVED that the City Council hereby authorizes the City Manager to execute the amendment in a form approved by the City Attorney.
BE IT FURTHER RESOLVED that the City Manager is authorized to take any actions necessary to effectuate the intent of this Resolution.
1 FIRST AMENDMENT TO THE CONTRACTUAL
SERVICES AGREEMENT BETWEEN THE CITY OF
NEWARK AND URBAN PLANNING PARTNERS INC
This First Amendment to Contractual Services Agreement between the City of Newark, a municipal corporation, ("City") and Urban Planning Partners, a California Corporation ("Consultant") (sometimes referred to as "Parties") dated January 7, 2021 (the “Agreement”), is entered into as of _______ ___, 2025 for the provision of temporary professional planning services.
RECITALS
WHEREAS, the Parties executed the Agreement for the provision of professional planning services to provide project management for moderate or large discretionary planning entitlement projects, as well as other planning services as requested from time-to time; and WHEREAS, Section 27, Modifications, of the Agreement allows the Parties to amend the Agreement provided that the amendment is in writing signed by the Parties; and WHEREAS, the Parties desire to amend the Agreement, Section 3.A to increase the “Not to Exceed” Compensation amount; and
WHEREAS, City staff is authorized to execute this Amendment in a form approved by the City Attorney.
NOW, THEREFORE, the Parties hereby agree as follows:
1. Section 3.A. "Not to Exceed" Compensation, of the Agreement, is amended to increase the not to exceed compensation by $175,000, for a total not to exceed amount of $350,000 (from a previous not to exceed amount of $175,000.).
2. The Agreement’s Exhibit B (Payment) is amended as outlined in the new Payment (Exhibit 1), attached hereto and incorporated herein by reference.
3. With the exception of the foregoing, all other terms and conditions in the Agreement, as amended, remain in force and effect.
2 City of Newark Consultant
_________________________________ _________________________________ David J. Benoun Lynette Dias
City Manager Princ
Urban Planning Partners
Dated: ___________________________ Dated: ___________________________ Attest:
__________________________________
Sheila Harrington
City Clerk
Approved as to Form:
__________________________________
Kristopher J. Kokotaylo
City Attorney
3 EXHIBIT 1
PAYMENT-TASK ORDERS
The City will issue Consultant a Task Order to proceed for each specific requested assignment.
Upon the request of the City's Community Development Director or his/her designee, the Consultant shall identify appropriately experienced staff, produce a scope of work and budget associated with the assignment, and provide a recommendation to the City. The city will review the recommendation and, if it is determined to be acceptable, prepare the Task Order. The Task Order shall be executed prior to the start of the assignment.
The City will pay the Consultant on a time and materials basis a total not-to-exceed amount of Three Hundred and Fifty Thousand Dollars ($350,000.00) for the completion of all work and services associated with this Agreement and specifically defined by the Task Order(s). The positions provided in the Fee Schedule of the Agreement will be used to calculate the hourly billing for services as reflected in Consultant's invoices.
Work product prepared by Consultant will be submitted to the Community Development Director or his/her designee. Assigned personnel provided by Consultant shall meet or exceed the experience associated with the Scope of Services provided in the Agreement.
Fee Schedule
URBAN PLANNING PARTNERS HOURLY BILLING RATE SCHEDULE
EFFECTIVE March 1, 2024
Hourly rates are subject to review at least annually on or about February 1 of each year and may be adjusted to reflect changing labor costs. Hourly rates for expert witness services or depositions shall be subject to a premium of two (2) times the standard hourly rate. We apply a 10 percent mark-up for subconsultant labor.
Principal $271 - $392
Consulting Principal $300 - $400
Associate Principal $175 - $292
Principal Planner $186- $311
Senior Planner $181 - $277
Associate Planner (P2) $171 - $202
Associate Planner (P1) $136 - $177
Planner (P2) $134 - $168
Planner (P1) $104 - $139
Assistant Planner $ 82 - $136
Intern $ 80 - $109
Graphics $132 - $223
Admin/WP $125 - $211
4 URBAN PLANNING PARTNERS IN-HOUSE DIRECT EXPENSES
Unit Cost
Reproduction $0.17 per page
Color Reproduction $0.50 per page
Mileage $0.67 per mile
Item D. 4.
DATE 01/23/2025
TO Honorable Mayor and City Council Members
FROM Michelle Villanueva, Senior Accountant
SUBJECT Accept the Annual Comprehensive Financial Report (ACFR) for the period ending June 30, 2024.
SUMMARY AND RECOMMENDATION
The City’s financial performance for the fiscal year ending June 30, 2024, reflects a positive trajectory. The City’s net position increased by $15.2 million to $262.2 million, driven by higher cash and investment balances. Total government-wide revenues rose by $9.6 million to $103.3 million, primarily due to higher interest earnings and operating grants, including American Rescue Plan Act (ARPA) funds. Expenses increased by $11.7 million to $88.0 million, reflecting personnel cost adjustments, expanded public works activities, and higher contractual costs, particularly for fire services.
The City’s governmental funds reported a combined fund balance of $182.5 million, including $33.2 million in unassigned funds, which provide flexibility and resilience. Of this unassigned balance, approximately 67% ($22.1 million) is designated as reserves:
$11.4 million for emergencies and $10.7 million for fiscal uncertainty. The remaining fund balance is categorized as non-spendable ($0.2 million), restricted ($93.4 million), committed ($13.0 million), or assigned ($42.7 million) for specific purposes, ensuring fiscal stability.
Additionally, the City received the prestigious Certificate of Achievement for Excellence in Financial Reporting for FY 2023, and staff anticipates receiving the same recognition for the FY 2024 ACFR, underscoring the City’s commitment to financial accountability and transparency.
Staff recommends that the City Council, by motion, accept the Annual Comprehensive Financial Report (ACFR) for the period ending June 30, 2024.
BACKGROUND
As part of the year-end closing process, staff presents the audited ACFR for the fiscal year ending June 30, 2024. The ACFR is a set of financial statements comprising all financial activity of the City and provides information on the City's year-end financial condition and operational results for FY 2024. The information presented in the ACFR has been reviewed by an independent auditor, Lance, Soll & Lunghard, LLP (LSL), using accepted standards to audit the City's financial practices and overall financial using accepted standards to audit the City's financial practices and overall financial condition. LSL has issued an unmodified (or clean) audit opinion on the City's ACFR.
The City's financial statements were prepared in accordance with generally accepted accounting principles (GAAP) and in compliance with pronouncements issued by 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. Management's Discussion and Analysis (MD&A) immediately follows the independent auditors' report and provides a narrative overview and analysis of the basic financial statements. The letter of transmittal is designed to complement the MD&A and should be read in conjunction with it.
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 and free from material misstatements.
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 ending June 30, 2023. This prestigious award recognizes the City’s commitment to transparency, accountability, and high-quality financial reporting. It confirms that the ACFR complies with rigorous standards, including GAAP and legal requirements.
The award enhances the City’s credit profile, as bond rating agencies and financial institutions view it as evidence of sound fiscal management, resulting in better borrowing terms, lower interest rates, and taxpayer savings. To qualify, a government must produce a well-organized, compliant, and easily readable report. As the highest honor in government accounting, the Certificate is valid for one year. Staff is confident the FY 2024 ACFR will again meet these standards, further reinforcing Newark’s reputation for financial excellence.
DISCUSSION/ANALYSIS
Financial Highlights for FY 2024
Government-wide:
• At June 30, 2024, the assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources by $262.2 million (net position). This is an increase of $15.2 million from the prior fiscal year and is largely due to a higher amount of cash and investments than the prior year. • Government-wide revenues include program revenues of $23.2 million and general revenues of $80.1 million, an increase of $9.6 million total revenues from the prior fiscal year. Of the program revenues, operating grants and contributions had the largest increase, $2.3 million higher than the prior fiscal year, due largely to American Rescue Plan Act (ARPA) grant funds. The largest increase in general revenues was in interest earnings which was $5.8 million over the prior year due to favorable investment rates. • Government-wide expenses totaled $88.0 million, an increase of $11.7 million from the prior year's total of $76.3 million. Most departments were higher over the prior year due to the lower vacancies in personnel, negotiated cost of living pay increases, and higher contractual costs (including Fire services contracted with Alameda County Fire District which increased 10.7%). Public Works also conducted more street maintenance projects during the year, largely using Gas Tax funds. Pension expense was also higher, as a result of variances in actuarial estimates and changes during the period for both the CalPERS Safety and Miscellaneous plans.
Governmental Funds:
• At the close of fiscal year 2024, the City's governmental funds reported combined fund balances of $182.5 million, an increase of $15.4 million in comparison with the prior fiscal year. Governmental revenues of $103.2 million and net transfers of $1.6 million more than offset $89.4 million of governmental expenditures. • Approximately 18.2% of the fund balance ($33.2 million) is unassigned and available for spending at the government's discretion, although $11.4 million is designated as emergency reserves 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 ($93.4 million), 3) committed for specific purposes ($13.0 million), or 4) assigned for specific purposes ($42.7 million).
FISCAL IMPACT
There is no fiscal impact in accepting the FY 2024 ACFR.
REVIEW AND APPROVAL
Prepared by - Michelle Villanueva, Senior Accountant
Reviewed by - Gloria del Rosario, Deputy Finance Director Reviewed by - Krysten Lee, Finance Director
Reviewed by - Kristopher J. Kokotaylo, City Attorney
Approved by - David J. Benoun, City Manager
Attachments
ACFR FY24
City of Newark
Newark, California
Annual Comprehensive Financial Report
For the year ended June 30, 2024
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:
Statement of Net Position ................................................................................................................................ 18 Statement of Activities ..................................................................................................................................... 19 Governmental Fund Financial Statements:
Balance Sheet ...................................................................................................................................................20 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position................................................................................ 23 Statement of Revenues, Expenditures and Changes in Fund Balances............................................................ 24 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities............................................................................................................................... 27 Proprietary Fund Financial Statements:
Statement of Net Position ................................................................................................................................ 28 Statement of Activities ..................................................................................................................................... 29 Statement of Cash Flows..................................................................................................................................31 Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Position................................................................................................................. 32 Statement of Changes in Fiduciary Net Position .............................................................................................. 33 Notes to Basic Financial Statements....................................................................................................................... 34 i
Page
Financial Section, Continued
Required Supplementary Information:
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual General Fund .................................................................................................................................................... 74 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual Public Safety Impact Fees Fund ........................................................................................................................ 75 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual Community Service Impact Fees Fund ............................................................................................................. 76 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual Traffic Impact Fees Fund................................................................................................................................... 77 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual Housing Impact Fees Fund................................................................................................................................ 78 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual Park Impact Fees Fund...................................................................................................................................... 79 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual Development Maintenance Impact Fees .........................................................................................................80 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual American Rescue Plan ACT (ARPA) ..................................................................................................................81 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget to Actual Measure B 1986 ACTIA ..................................................................................................................................... 82 Notes to Required Supplementary Information ..................................................................................................... 83 Defined Benefit Pension Plan:
Schedule of Changes in Net Pension Liability and Related Ratios – Agent Multiple Employer Plan.......................................................................................................................... 84 Schedule of Plan Contributions - Agent Multiple Employer Plan..................................................................... 86 Schedule of Proportionate Share of the Net Pension Liability – Cost Sharing Plan .............................................................................................................................................. 88 Schedule of Plan Contributions – Cost Sharing Plan.........................................................................................90 Other Post Employment Benefit Plan:
Schedule of Changes in Net OPEB Liability and Related Ratios........................................................................ 92 Schedule of OPEB Contributions....................................................................................................................... 94 ii
Page
Supplementary Information:
Non-Major Governmental Funds:
Combining Balance Sheet...............................................................................................................................100 Combining Statement of Revenues, Expenditures
and Changes in Fund Balances.................................................................................................................104 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:
Alameda County Fire Fees .............................................................................................................................109 Police Grants Fund.......................................................................................................................................... 110 Community Development Act (HCD) Fund..................................................................................................... 111 Measure D – Waste Management Fund.........................................................................................................112 Gas Tax ...........................................................................................................................................................113 Measure B (ACTC) ……………………………………………………………………………………… ............................................... 114 Measure BB (ACTC)..................................................................................................................................…....115 Measure F (VRF) ACTC Fund ........................................................................................................................... 116 ACTC Discretionary Fund ................................................................................................................................117 RMRA SB1 – Road Maintenance and Rehabilitation Account Fund ............................................................... 118 Hazardous Materials Program Fund............................................................................................................... 119 BSCC Grants Fund ........................................................................................................................................... 120 State Construction Maintenance Fund........................................................................................................... 121 Miscellaneous Local Grants Fund ................................................................................................................... 122 PEG Fees Fund ................................................................................................................................................123 Art in Public Places Fund................................................................................................................................. 124 Miscellaneous State Grants Fund ...................................................................................................................125 Capital Projects Fund...................................................................................................................................... 126 Landscape and Lighting Districts ....................................................................................................................127 Internal Service Funds:
Combining Statement of Net Position............................................................................................................ 130 Combining Statement of Activities................................................................................................................. 132 Combining Statement of Cash Flows.............................................................................................................. 134 Statistical Section
Net Position by Component......................................................................................................................................... 139 Changes in Net Position............................................................................................................................................... 140 Fund Balances of Governmental Funds....................................................................................................................... 141 Changes in Fund Balances of Governmental Funds..................................................................................................... 142 Assessed Value and Estimated Actual Value of Taxable Property............................................................................... 143 Property Tax Rates....................................................................................................................................................... 144 Principal Property Taxpayers....................................................................................................................................... 145 Property Tax Levies and Collections............................................................................................................................ 146 Taxable Sales by Category ........................................................................................................................................... 147 Ratio of Outstanding Debt by Type ............................................................................................................................. 148 Direct and Overlapping Governmental Activities Debt ............................................................................................... 149 Legal Bonded Debt Margin Information...................................................................................................................... 150 Demographic and Economic Statistics......................................................................................................................... 151 Principal Employers ..................................................................................................................................................... 152 Full-Time Equivalent City Government Employees by Function/Program.................................................................. 153 iii
Operating Indicators by Function/Program................................................................................................................. 154 Capital Asset Statistics by Function/Program.............................................................................................................. 155 iv
City of Newark
Finance Department
37101 Newark Boulevard
Newark, CA 94560
December 20, 2024
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, 2024. 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, 2024. 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 near universities and some of California’s largest and fastest growing companies. As of April 30, 2024, the City’s population was estimated by the California Department of Finance at 46,635, 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 of Newark’s economic condition, with its median income figures, low unemployment rate, and median household incomes surpassing state and national averages, remains resilient. The City’s financial condition at the close of fiscal year 2024 also remainsstrong. Governmental revenues, comprised of taxes, fees, and grants, were $103.3 million for fiscal year 2024 compared to $93.7 million for fiscal year 2023, reflecting a 10.3% year over year increase. Property tax revenue, representing the general fund’s largest revenue source, accounts for $31.5 million of total revenues and reflects the continued growth in the property tax assessment roll, which was $14.5 billion for fiscal year 2024. This marks a 10.7% increase from the $13.1 billion assessed value from the prior year and is one of the largest property valuation increases in the County. Investment earnings, at $9.4 million, was also the highest recorded investment income in the last ten fiscal year as higher cash balances and higher investment yields, along with favorable market values, contributed to the growth. More information on the new Transient Occupancy Tax and Master Fee Schedule is discussed under Revenue Initiatives further below.
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. As of June 30, 2024, all but $1.1 million has been left for spending through December 31, 2024, and will cover approved personnel and program costs, which were in response to the pandemic. At the close of fiscal year 2024, $2.7 million was transferred to the General Fund as revenue replacement funds, the balance of which became available from unspent funds due largely to the delay in the hiring of previously frozen positions and delay in the spending for the Broadband project.
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. vi
Long-Term Financial Planning and Relevant Financial Policies In accordance with Government Finance Officers Association (GFOA) risk-based analysis framework, the City updated its fund balance and reserve policy to maintain an Emergency and Fiscal Uncertainty Reserve calculated as at least 30% of final General Fund operating and debt service expenditures. The 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, 2024, the reserve totaled $22.2 million, which was 30% 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 $21.8 million at the end of fiscal year 2024, which includes the $7.0 million set-aside for the new Maintenance Reserve. Less this amount, the ending fund balance is $14.8 million.
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 2024, the pension and OPEB reserve had a balance of $13.0 million which will be used during fiscal year 2025 to fund Section 115 Trust.
Major Policy and Development Initiatives
Revenue Initiatives:
Measure LL
On November 5, 2024, Newark voters approved Measure LL with 80.44% support. This measure increases the City’s current Transient Occupancy Tax (TOT) rate from 10% to 14%, with an effective date of January 2025.
Master Fee Update
After a year long study to evaluate and update the City fees, the City Council approved the City’s Cost Recovery Policy and updated Master Fee Schedule on November 14, 2024, ensuring that fees reflect the actual cost of service delivery. The updated Master Fee Schedule and Cost Recovery Policy supports financial sustainability by establishing fair and accurate fee structures and includes a framework for regular views to maintain fairness and consistency with Newark’s financials goals. Certain fees will take effect immediately while updated fees for fire protection and development services will take effect 60 days after, in compliance with California Government Code 66017. vii
The City of Newark’s major development initiatives include:
Policy Implementation:
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.
In 2022, the City was 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.
2023-2031 General Plan Housing Element
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. In December 2023, the State of California’s Department of Housing and Community Development certified the Housing Element as conforming with State law. Over the next eight years, the city will implement nearly 40 unique programs intended to address housing challenges in a fair and equitable manner. Initial implementation programs include:
• Inclusionary Housing Ordinance - An inclusionary housing ordinance requires new residential projects to set aside a percentage of units for affordable housing or a payment of in-lieu fees made towards affordable housing.
• Tenant Protections - Renters represent a significant portion of the Newark community, and their concerns are a top priority for the City. In response to housing barriers highlighted in the 2023– 2031 Housing Element, the City is working on new tenant protections by engaging with both tenants and property owners to identify how to improve local housing policies for everyone. • First-Time Homebuyers Program - The City is currently working with a consultant team to develop and administer a below market (or affordable) homeownership program and downpayment assistance program.
Development Projects:
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. Project entitlements are expected to be reviewed in 2025. viii
Mowry Village
The applicant, Mowry Project Owner LLC, is proposing to demolish the existing onsite structures, remediate the site, and construct 203 single-family detached homes and associated onsite improvements.
The project would also include off-site improvements along Mowry Avenue. An auto part and scrap metal salvage lot, known as "Pick-n-Pull" is currently located on the project site. The site is located in the Area 3 & 4 Specific Plan area. The project would include a rezone of the project site from Park to RS-6000:
Residential Single-Family with Planned Unit Development Overlay (PD-RS-6000). The rezoning request is to better align the zoning with the proposed use of the project and the existing General Plan designation.
The project requires a Planned Unit Development, Specific Plan Amendment, Vesting Tentative Map, and Design Review. The applicant has recently proposed eliminating seven single-family units and adding a multi-family residential building containing 30 affordable rental units. This proposal is currently under review.
NewPark Plaza
The applicant, RW Investments Newark, LLC, proposes to demolish all existing buildings and site improvements and construct 1,000 residential units (20% of the units would be units affordable to lowincome households) within three buildings that would each wrap around a parking structure and associated improvements. Two buildings would be four stories, and one building would be five stories.
Two buildings would include approximately 10,000 sq. ft. of ground-level retail space. The property is within the NewPark Place Specific Plan area. The project requires a Design Review and Tentative Map approval.
ProLogis Industrial Building
The applicant is proposing a new industrial building at 6756-6792 Central Avenue. The project includes demolishing all existing buildings and site conditions to allow for a new industrial building and on-site improvements, including parking, fencing, trash enclosure, landscaping, and open space. The project would merge four existing parcels into one parcel. The project requires a Design Review, a Conditional Use Permit for indoor warehousing & storage use and wholesaling & distribution use, and a Minor Use Permit for additional fence height.
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, 2023. To be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized, annual comprehensive 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.
The Certificate of Achievement is awarded for a one-year period. We are confident that the City’s ACFR for the fiscal year ended June 30, 2024, upholds the high standards required by the program. As such, we have submitted it to the GFOA for evaluation and consideration for another Certificate of Achievement.
The preparation of the ACFR would not be possible without the dedicated efforts of the entire Finance ix
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
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Newark Mayor & City Council
June 30, 2024
Michael K. Hannon
Mayor
Luis L. Freitas
Vice Mayor
Maria “Sucy” Collazo
Council Member
Matthew Jorgens
Council Member
Mike Bucci
Council Member
xiii
CITY STAFF
June 30, 2024
CITY MANAGER
David Benoun
ASSISTANT CITY MANAGER
Lenka Hovorka
CITY ATTORNEY
Kristopher Kokotaylo
EXECUTIVE TEAM
FINANCE DIRECTOR
Krysten Lee
POLICE CHIEF
Jonathan Arguello
PUBLIC WORK DIRECTOR
Soren Fajeau
COMMUNITY DEVELOPMENT DIRECTOR
Steven Turner
HUMAN RESOURCE DIRECTOR
Cathreene Ingham-Watters
INFORMATION TECHNOLOGY DIRECTOR
Ed Miranda
RECREATION DIRECTOR
Nicholas Cuevas
FIRE CHIEF (ALAMEDA CO. FIRE
DEPARTMENT)
William McDonald
xiv
xv
The Government Finance Officers Association of
the United States and Canada
presents this
AWARD OF FINANCIAL REPORTING ACHIEVEMENT
to
The Award of Financial Reporting Achievement is presented by the Government Finance Officers Association to the department or individual designated as instrumental in the government unit achieving a Certificate of Achievement for Excellence in Financial Reporting. A Certificate of Achievement is presented to those government units whose annual financial reports are judged to adhere to program standards and represents the highest award in government financial reporting.
Executive Director
Date: 7/1/2024
Finance Department
City of Newark, California
xvi
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, 2024, 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, 2024, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America 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.
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.
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 information, and required pension and other postemployment benefits schedules, as listed on the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 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 18, 2024 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Sacramento, California
December 20, 2024
3 4
City of Newark
Management’s Discussion and Analysis
For the year ended June 30, 2024
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, 2024. 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, 2024, the assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources by $262.2 million (net position). This is an increase of $15.2 million from the prior fiscal year. Of this amount, $113.5 million is restricted, and ($15.2) million represents unrestricted net position.
• Government-wide revenues include program revenues of $23.2 million and general revenues of $80.1 million, an increase of $9.6 million total revenues from the prior fiscal year. • Government-wide expenses totaled $88.0 million, an increase of $11.7 million from the prior year's total of $76.3 million.
Governmental Funds:
• At the close of fiscal year 2024, the City's governmental funds reported combined fund balances of $182.5 million, an increase of $15.4 million in comparison with the prior fiscal year. • Governmental Fund revenues were $103.2 million in fiscal year 2024, which was a $9.6 million increase compared to fiscal year 2023.
• Governmental Fund expenditures were $89.4 million in fiscal year 2024, an increase of $13.6 million compared to fiscal year 2023.
• Approximately 18.2% of the fund balance ($33.3 million) is unassigned and available for spending at the government's discretion, although $11.4 million is designated as emergency reserves 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 ($93.4 million), 3) committed for specific purposes ($13.0 million), or 4) assigned for specific purposes ($42.7 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, 2024
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 33 governmental funds. The 13 major governmental funds are the General Fund, Public Safety Impact Fees Fund, Community Service Impact Fees Fund, Traffic Impact Fees Fund, Housing Impact Fees Fund, Park Impact Fees Fund, Development Maintenance Fees Fund, American Rescue Plan Act Fund, Measure B 1986 ACTIA Fund, Art in Public Places Fund, Miscellaneous State Grants, 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, 2024
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, Public Safety Impact Fees Fund, Community Service Impact Fees Fund, Traffic Impact Fees Fund, Housing Impact Fees Fund, Park Impact Fees Fund, Development Maintenance Fees Fund, American Rescue Plan Act Fund, and Measure B – 1986 ACTIA Fund.
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, 2024 and 2023.
7 City of Newark
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2024
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 $262.2 million (net position), which was an increase of $15.2 million from the prior fiscal year.
The most significant portion of the City's net position, $163.9 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, $113.5 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 ($15.2) million represents the unrestricted net position, which, if this was a positive amount, may be used to finance daily operations without constraints established by debt covenants or other legal requirements. The unrestricted net position is reported as negative due to the inclusion of the net pension and other post-employment benefit liabilities which are required for government-wide financial reporting.
Assets: 2024 2023
Cash and investments $190.5 $178.8
Capital assets, net 231.5 226.6
Other assets 22.3 19.5
Total assets 444.3 424.9
Deferred outflow of resources 37.2 40.9
Liabilities:
Long-term liabilities 186.1 182.3
Other liabilities 23.0 22.6
Total liabilities 209.1 204.9
Deferred inflow of resources 10.2 14.0
Net Position:
Net investment in capital assets 163.9 157.5
Restricted 113.5 101.6
Unrestricted (15.2) (12.1)
Total net position $262.2 $247.0
Governmental Activities
Comparative Statements of Net Position
June 30, 2024 and 2023
(Amounts in Millions)
8 City of Newark
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2024
The following table shows the condensed comparative Statements of Activities for the fiscal years ended June 30, 2024 and 2023.
Revenues: 2024 2023
Program revenues:
Charges for services $ 11.4 $ 9.8
Operating grants and contributions 6.4 4.1
Capital grants and contributions 5.3 4.6
Total program revenus 23.1 18.5
General revenues:
Taxes:
Property tax 31.5 28.6
Sales tax 21.4 25.5
Transient occupancy tax 5.2 4.9
Franchise fees 4.9 4.7
Utility users tax 4.0 4.2
Other local taxes 2.5 2.7
Use of money and property 9.4 3.6
Miscellaneous 1.2 1.0
Total general revenues 80.1 75.2
Total revenues 103.2 93.7
Expenses:
General government 13.0 11.1
Public safety:
Fire 13.6 12.2
Police 30.8 27.5
Public works 17.6 13.9
Community development 3.4 3.5
Recreation 7.2 5.9
Interest on long-term debt 2.4 2.2
Total expenses $ 88.0 $ 76.3
Increase (decrease) in net position 15.2 17.4
Net position - beginning 247.0 229.6
Net position - ending $ 262.2 $ 247.0
Governmental Activities
9 City of Newark
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2024
The City's expenses totaled $88.0 million in fiscal year 2024. These expenses were offset by program revenues of $23.1 million and general revenues of $80.1 million, resulting in a $15.2 million increase in the ending net position which was $262.2 million for fiscal year 2024.
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 $1.6 million higher compared to the prior fiscal year and was largely due to the increase in park and traffic impact fees collected in the year plus increase in recreation services fees which was up $0.5 million compared to the prior year. Operating grants and contributions at $6.4 million was $2.3 million higher than the prior fiscal year, due largely to the recognition of ARPA funds as revenue replacement funds. Capital grants and contributions increased $0.7 million, due to the receipt of ACTC Discretionary Funds and various miscellaneous state grants.
General Revenues – The City’s general revenues were $4.9 million more compared to the prior fiscal year. Property tax revenue, representing the largest portion of general revenues was $2.9 million, or 10.1% higher, reflecting the continued increase of assessed value of secured property in the City. Both residential and industrial property values increased, 10.3% and 12.25%, respectively, while commercial property value went up slightly 3.3%. Sales tax revenue was $4.1 million, or 16.1% lower compared to the prior fiscal year as some current year revenue was reclassified to deferred revenue pending review of allocations from the California Department of Tax and Fee Administration (CDTFA).
Transient occupancy tax and franchise fees at $5.2 million and $4.9 million, respectively, were 6.1% and 4.3% higher compared to fiscal year 2023, reflecting a slightly higher average hotel occupancy rate and modest increases in utilities, which includes PG&E, Republic Service, and cable services. The largest increase in general revenues was in interest earnings, which was $9.4 million at the close of fiscal year 2024, representing an increase of $5.8 million over the prior year. This large increase is due to higher investment yields year over year (5.18% for fiscal year 2024 versus 3.54% for fiscal year 2023) and higher cash volume in fiscal year 2024. The City also invested in a term investment with an interest rate of 5.78% during fiscal year 2024, resulting in the higher average yield. A positive fair market value adjustment of $0.8 million for the fiscal year also contributed to the favorable variance compared to fiscal year 2023.
Expenses – Expenses increased by $11.7 million in fiscal year 2024 which was 15.3% over fiscal year 2023. Most departments were higher over the prior year due to the lower vacancies in personnel, negotiated cost of living pay increases, and higher contractual costs (including Fire services contracted with Alameda County Fire District which increased 10.7%). Public Works also conducted more street maintenance projects during the year, largely using Gas Tax funds. Pension expense was also higher, as a result of variances in actuarial estimates and changes during the period for both the CalPERS Safety and Miscellaneous plans.
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, 2024, the City's governmental funds reported combined fund balances of $182.5 million, an increase of $15.4 million in comparison with the prior fiscal year. Approximately 18.2% of the fund balance amount ($33.3 million) is unassigned and available for spending at the government's discretion. The remainder of the fund balance is either 10 City of Newark
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2024
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 ($93.4 million), 3) committed for specific purposes ($13.0 million), or 4) assigned for specific purposes ($42.7 million). Further details of the fund balances can be found in Note 10 in the disclosures.
Governmental revenues in fiscal year 2024 were $103.2 million, an increase of $9.6 million over the prior fiscal year.
The combined increase in property tax ($2.9 million), use of money and property ($5.8 million), other government agency revenue ($3.1 million), and license, permits, and fees ($1.0 million) more than offset the $4.0 million decrease in sales tax which was the result of deferring certain revenue pending CDTFA’s allocation of sales tax.
Governmental expenditures in fiscal year 2024 were $89.4 million, an increase of $13.6 million from the prior fiscal year. $9.7 million of this increase was due to the rise in capital projects outlay expenditures ($6.9 million) and capital routine maintenance expenditures ($2.8 million). The balance of the increase was due to the additional filling of vacant positions, increase in negotiated salary increases, and increase in contractual services, including the fire contract which went up $1.2 million.
General Fund
The General Fund is the primary operating fund of the City. At June 30, 2024, the spendable, assigned and unassigned fund balance of the General Fund was $58.0 million, while total fund balance was $72.9 million. The City Council has maintained operating reserves of $22.1 million 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 $14.7 million for Measure GG and a $6.2 million allocation for equipment replacement. The Paramedic Tax Fund (previously reported in Non-Major Funds) is now included in the General Fund starting with fiscal year 2024.
The fund balance of the City's General Fund increased by $6.2 million from fiscal year 2023. Overall revenues of $83.4 million were offset by $69.6 million of expenditures and net transfers out of $7.6 million. The increase in revenue year over year is largely attributable to the growth in property tax and investment income as described previously.
Expenditures were higher $3.6 million in fiscal year 2024 compared to the previous year to account for less workforce vacancies, negotiated salary increases, and increase in contractual agreements. Transfers-out include the $4.8 million transfer from the Measure GG fund to the debt service fund for payment on the 2019 COP and $7.0 million transfer from the General Fund to the Capital Improvement Fund for the Maintenance Reserve set aside. This combined transfer-out of $11.8 million more than offset transfers-ins, which was primarily the $4.1 million from the ARPA fund.
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 $0.6 million were added to the fund balance during fiscal year 2024, 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 $369 thousand were added to the fund balance during fiscal year 2024, with $38 thousand of expenditures incurred. 11 City of Newark
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2024
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 $1.6 million were added to the fund balance during fiscal year 2024 and $1.3 million of expenditures were incurred. Project expenditures include $1.0 million for the Arterial Bicycle Lanes project, and $0.3 million for the Central Avenue Overpass project.
Housing Impact Fees Fund
The Housing Impact Fees Fund is comprised of fees adopted by the City Council over several years, and accounts for fees collected into the City’s affordable housing fund that are restricted for and to be used solely to increase and preserve the supply of housing affordable to households of very low, low, and moderate incomes. The Housing Impact Fee Fund reported $1.6 million of revenue and $45.6 thousand of expenditures. This revenue is considerably less than the prior fiscal year due to the decrease in development activity during fiscal year 2024. Total loan receivables went up by $6.0 million during fiscal year 2024. Adding to last year’s loan balance of $2.7 million for the Cedar Community Apartment project was another drawdown of $3.3 million made during the year. A third loan, in the amount of $2.7 million, for the Timber Street (Senior Housing) project was authorized during the fiscal year. As of the end of June 30, 2024, $12.2 million in total housing loans have been issued. More information can be found in Note 5 regarding these loans.
Park Impact Fees Fund
The Park Impact Fees Fund accounts for fees which provide funding for park land and new improvements. Revenues were $2.1 million and expenditures were $0.1 million in fiscal year 2024.
Development Maintenance Fees Fund
The Development Maintenance Impact Fees Fund accounts for fees which provide funding to update and implement the Newark General Plan and zoning ordinance. Revenues were $1.0 million and expenditures were $0.9 million in fiscal year 2024, covering both personnel and contractual services.
American Rescue Plan Act (ARPA) Fund
The American Rescue Plan Act Fund reports Federal funds received in response to the COVID-19 pandemic. $4.8 million is reported as current year income to match the current year use of funds for expenditures and transfers. The remaining balance of $1.1 million is recognized as unearned revenue on the balance sheet and will be spent before the end of calendar year 2024 which is the end of the period of performance for using the federal funding.
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 2024 were from street construction projects. A current agreement with the Alameda County Transportation Commission is being updated which will allow for additional reimbursements to the City for project expenditures already incurred.
12 City of Newark
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2024
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 $107.3 thousand in fiscal year 2024, and expenditures of $97.9 thousand were incurred.
Miscellaneous State Grants
The Miscellaneous State Grants Fund accounts for funding provided by cooperating agencies for capital related expenditures. Revenues from CalRecycle and Local Roadways Safety Plan were $286.7 thousand, and expenditures were $69.9 thousand for fiscal year 2024. Included in unearned revenue is $3.8 million from State grants received for the Broadband and Quiet Zone projects which are currently pending.
Capital Projects Fund
The Capital Projects Fund incurred $3.2 million of expenditures, of which $2.6 million wasfor capital outlay. Significant projects include $1.5 million spent for the LED Street Light upgrade which is being financed with a 1% loan from the California Energy Commission, $0.3 million for the City Council chambers audio and video system upgrades, $0.2 million for the Newark Resource Center Renovations project, and $0.2 million for the Quiet Zones project.
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 $4.8 million was paid out during fiscal year 2024.
Proprietary Funds
The City's proprietary funds consist of the Internal Service Funds with a combined total net position of $11.2 million at the end of fiscal year 2024. Total operating revenue of $8.0 million, namely from charges to departments, largely offset expenses of $7.9 million which includes spending for personnel ($1.4 million), materials and supplies ($0.6 million), contractual services ($2.0 million), utilities ($1.1 million), insurance claims and premiums ($2.1 million), and depreciation ($0.7 million).
GENERAL FUND BUDGETARY HIGHLIGHTS
The budgetary comparison schedule for the General Fund is presented in the Required Supplementary Information.
Fiscal year 2024 was the second year of the City's biennial budget, which was adopted on June 22, 2022. The General Fund revenue budget for fiscal year 2024 was amended during the year, increasing it by $10.3 million. The actual revenues were $1.3 million over the final amended budget and $11.6 million over the original budget. This increase was primarily due to higher than anticipated investment earnings and property tax revenue when the budget was last amended. Actual expenditures, excluding transfers out, for the fiscal year were $16.5 million under the final amended budget and $.2 million less than the original budget. The huge variance with the amended budget is due to the delayed creation of the pension Section 115 trust, which was originally planned for in fiscal year 2024. 13 City of Newark
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2024
CAPITAL ASSETS
The City's capital assets include those assets that are used in the performance of the City's services. At June 30, 2024, the City's capital assets used in governmental activities amounted to $231.5 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.
LONG-TERM OBLIGATIONS
On June 30, 2024, the City had long-term debt outstanding of $67.2 million compared to $69.1 million in the prior year.
The City's long-term debt obligations at June 30, 2024 and 2023 were as follows (amounts in millions):
Additional information on long-term obligations is provided in Note 7 to the Basic Financial Statements. 2024 2023
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 9.2 4.3
Building and improvements 128.9 128.8
Infrastructure:
Streets 84.1 81.7
Sidewalks, curbs, gutters, and walls 19.8 18.9
Street lights 3.2 3.3
Traffic signals 3.9 3.9
Equipment 18.8 16.1
Less: accumulated depreciation (81.0) (75.0)
Subscription assets, net of amortization 0.6 0.6
Total capital assets $231.5 $226.6
Governmental Activities
14 City of Newark
Management’s Discussion and Analysis, Continued
For the year ended June 30, 2024
ECONOMIC FACTORS AND CURRENT BIENNIAL BUDGET
The City's adopted biennial budget for 2024-2026 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.
15 16
BASIC FINANCIAL STATEMENTS
17 City of Newark
Statement of Net Position
June 30, 2024
Primary Government
ASSETS Governmental
Current assets: Activities
Pooled cash and investments $190,497,423
Receivables:
Accounts 161,476
Taxes 4,729,343
Intergovernmental 3,265,105
Interest 1,174,950
Loans 12,243,324
Other, net 426,736
Supplies and other assets 306,527
Restricted assets:
Cash with fiscal agent 18,239
Total current assets 212,823,123
Noncurrent assets:
Capital assets (subscriptions), net of amortization 613,993 Capital assets, not being depreciated 53,261,988
Capital assets, net of depreciation 177,608,740
Total noncurrent assets 231,484,721
Total assets 444,307,844
DEFERRED OUTFLOW OF RESOURCES
Pension related amounts 36,129,566
OPEB related amounts 1,045,529
Deferred charge on refunding 60,801
Total deferred outflow of resources 37,235,896
LIABILITIES
Current liabilities:
Accounts payable 9,525,315
Accrued liabilities 1,391,307
Unearned revenues 5,515,176
Deposits payable 1,699,691
Compensated absences - due within one year 1,553,121
Claims payable - due within one year 357,133
Subscription liability - due within one year 305,184
Financed purchased obligations - due within one year 93,182 Bonds payable - due within one year 2,585,000
Total current liabilities 23,025,109
Noncurrent liabilities:
Compensated absences - due in more than one year 634,851 Claims payable - due in more than one year 2,993,759
Subscription liability - due in more than one year 296,919 Financed purchased obligations - due in more than one year 403,516 Loan payable 1,199,240
Long-term debt - due in more than one year 62,321,472
Net pension liability 115,237,013
Net OPEB liability 3,004,947
Total noncurrent liabilities 186,091,717
Total liabilities 209,116,826
DEFERRED INFLOW OF RESOURCES
Pension related amounts 8,973,946
OPEB related amounts 1,252,901
Total deferred inflow of resources 10,226,847
NET POSITION
Net investment in capital assets 163,902,652
Restricted for:
Capital projects 62,417,560
Grant-funded projects 402,415
Other Projects:
Affordable Housing 46,084,582
Community Development 4,381,302
Environmental 183,236
Total restricted 113,460,581
Unrestricted (deficit) (15,163,166)
Total net position $262,200,067
See accompanying Notes to Basic Financial Statements
18 City of Newark
Statement of Activities
For the year ended June 30, 2024
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 $ 12,976,952 $ 69,576 $ 3,983,974 $ - $ 4,053,550 $ (8,923,402) Public safety:
Fire 13,573,186 92,547 - - 92,547 (13,480,639)
Police 30,796,873 1,279,810 483,188 - 1,762,998 (29,033,875) Public works 17,665,782 6,329,570 304,703 4,933,760 11,568,033 (6,097,749) Community development 3,368,444 1,367,208 1,193,026 - 2,560,234 (808,210) Recreation 7,257,616 2,282,097 491,715 351,343 3,125,155 (4,132,461) Interest on long-term debt (unallocated) 2,394,686 - - - - (2,394,686) Total governmental activities $ 88,033,539 $ 11,420,808 $ 6,456,606 $ 5,285,103 $ 23,162,517 (64,871,022) General Revenues:
Taxes:
Property tax 31,510,937
Sales tax 21,360,457
Transient occupancy tax 5,208,731
Franchise Fees 4,927,245
Utility users tax 4,003,698
Other local taxes 2,504,642
Total taxes 69,515,710
Intergovernmental—motor vehicle in-lieu, unrestricted 58,622 Use of money and property (investment loss) 9,392,113
Miscellaneous 1,145,530
Total general revenues 80,111,975
Change in net position 15,240,953
Net position - beginning of year 246,959,114
Net position - end of year $ 262,200,067
Program Revenues
See accompanying Notes to Basic Financial Statements
19 City of Newark
Balance Sheet
Governmental Funds
June 30, 2024
Public Community Traffic Housing Park
General Safety Service Impact Impact Impact
Fund Impact Fees Impact Fees Fees Fees Fees
ASSETS
Pooled cash and investments $ 71,132,920 $ 1,590,278 $ 1,093,623 $ 12,967,557 $ 33,862,868 $ 7,731,340 Receivables:
Accounts 130,660 - - - - -
Taxes 4,729,343 - - - - -
Intergovernmental 46,614 - - - - -
Interest 1,174,950 - - - - -
Loans 2,067 - - - 12,241,257 -
Other 377,154 - - - - -
Due from other funds 3,288,404 - - - - -
Inventories 186,598 - - - - -
Restricted assets:
Cash and investments with fiscal agents - - - - - -
Total assets $ 81,068,710 $ 1,590,278 $ 1,093,623 $ 12,967,557 $ 46,104,125 $ 7,731,340 LIABILITIES AND FUND BALANCES:
Liabilities:
Accounts payable $ 6,015,302 $ - $ - $ 80,287 $ 19,545 $ 5,348 Accrued liabilities 575,815 - - - - -
Deposit payable 1,403,515 - - - - -
Unearned revenues 167,753 - - - - -
Due to other funds - - - - - -
Total liabilities 8,162,385 - - 80,287 19,545 5,348
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - - - - -
Total deferred inflows of resources - - - - - -
Fund Balances (Deficit):
Non-spendable 188,665 - - - - -
Restricted 1,711,511 1,590,278 1,093,623 12,887,270 46,084,580 7,725,992 Committed 12,967,643 - - - - -
Assigned 20,862,735 - - - - -
Unassigned (deficit) 37,175,771 - - - - -
Total fund balances (deficit) 72,906,325 1,590,278 1,093,623 12,887,270 46,084,580 7,725,992 Total liabilities, deferred inflows of
resources, and fund balances (deficit) $ 81,068,710 $ 1,590,278 $ 1,093,623 $ 12,967,557 $ 46,104,125 $ 7,731,340 Special Revenue Funds
See accompanying Notes to Basic Financial Statements
20 Debt Service
Fund
Development American Art Misc. Capital Public Other Total Maintenance Rescue Plan Measure B - in Public State Projects Financing Governmental Governmental Fees Act (ARPA) 1986 ACTIA Places Grants Fund Authority Funds Funds $ 4,278,106 1,130,373$ $ - 1,958,855$ 3,759,218$ $ 22,522,905 $ 59,253 $ 17,135,417 $ 179,222,713 - - - - - - - 30,816 161,476
- - - - - - - - 4,729,343
- - 1,720,592 - 3,154 - - 1,494,745 3,265,105
- - - - - - - - 1,174,950
- - - - - - - - 12,243,324
- - - - - - - 15,019 392,173
- - - - - - - - 3,288,404
- - - - - - - - 186,598
- -
- - - - - - 18,239 - 18,239
$ 4,278,106 1,130,373$ $ 1,720,592 1,958,855$ 3,762,372$ $ 22,522,905 $ 77,492 $ 18,675,997 $ 204,682,325 $ 15,955 $ 5,329 $ 361,742 $ 6,300 $ - $ 442,709 $ - $ 1,611,906 $ 8,564,423 - - - - - - - 444 576,259
- - - - - 234,271 - 61,905 1,699,691
- 1,125,044 - - 3,762,372 - - 460,007 5,515,176
- - 2,947,772 - - - - 340,632 3,288,404
15,955 1,130,373 3,309,514 6,300 3,762,372 676,980 - 2,474,894 19,643,953 - - 1,720,592 - - - - 805,498 2,526,090
- - 1,720,592 - - - - 805,498 2,526,090
- - - - - - - - 188,665
4,262,151 - - 1,952,555 - - 77,492 16,026,719 93,412,171 - - - - - - - - 12,967,643
- - - - - 21,845,925 - - 42,708,660
- - (3,309,514) - - - (631,114) 33,235,143
4,262,151 - (3,309,514) 1,952,555 - 21,845,925 77,492 15,395,605 182,512,282 $ 4,278,106 1,130,373$ $ 1,720,592 1,958,855$ 3,762,372$ $ 22,522,905 $ 77,492 $ 18,675,997 $ 204,682,325 Special Revenue Funds Capital Projects Funds
21 22
City of Newark
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
Total Fund Balances - Total Governmental Funds $ 182,512,282 Subscription assets used in governmental activities were not current financial resources. 613,993 Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet. 226,221,145 Long-term debt and compensated absences that have not been included in the governmental fund activity:
Subscription payable (602,103)
Bonds payable (56,940,000)
Loan payable (1,199,240)
Unamortized bond premium/discounts (7,966,472)
Unamortized loss on defeasance 60,801
Compensated absences (2,187,972) (68,834,986)
Net pension liability not included in governmental fund activity (115,237,013) Net OPEB liability not included in governmental fund activity (3,004,947) Deferred outflows related to pension items are not included in the governmental activity 36,129,566 Deferred inflows related to pension items are not included in the governmental activity (8,973,946) Deferred outflows related to OPEB items are not included in the governmental activity 1,045,529 Deferred inflows related to OPEB items are not included in the governmental activity (1,252,901) Deferred inflows related to unavailable revenue are not included in the governmental activity 2,526,090 Accrued interest payable for the current portion of interest due on bonds and software subscriptions that have not been reported in governmental funds (711,262) Internal service funds are used by management to charge the costs of certain activities, such as equipment management and self-insurance, to individuals. The assets and liabilities of the internal service funds must be added to the statement of net position Cash and investments available for operations 11,274,710 Other receivables 34,563
Supplies and other assets 119,929
Capital assets 4,649,583
Accounts payable and accrued liabilities (1,064,678)
Finance purchase obligation (496,698)
Claims payable (3,350,892) 11,166,517
Net Position of Governmental Activities $ 262,200,067
June 30, 2024
Amounts reported for governmental activities in the Statement of Net Position were different because:
See accompanying Notes to Basic Financial Statements
23 City of Newark
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2024
Public Community Traffic Housing Park
General Safety Service Impact Fees Impact Impact
Fund Impact Fees Impact Fees Fees Fees Fees
REVENUES:
General property taxes $ 31,510,937 $ - $ - $ - $ - $ - Other local taxes 38,004,773 - - - - -
Special assessments 265,880 - - - - -
Licenses, permits and fees 3,773,643 585,322 369,272 1,120,792 140,043 1,785,051 Other governmental agencies 443,199 - - - - -
Current service charges 2,282,097 - - - - -
Fines and forfeitures 509,046 - - - - -
Use of money and property 6,172,875 56,165 39,651 510,549 1,397,282 280,801 Other revenue 478,033 - - - - -
Total revenues 83,440,483 641,487 408,923 1,631,341 1,537,325 2,065,852 EXPENDITURES:
Current:
General government 10,942,360 - - - - -
Public safety:
Fire 13,076,507 - - - - -
Police 25,955,213 - - - - -
Community development 2,338,864 - - - 45,631 -
Recreation 5,621,055 - - - - -
Public Works 11,422,749 - - - - 79,157
Capital outlay - subscriptions 470 - - - - -
Capital outlay 11,074 - 37,760 1,344,695 - 66,909
Debt service:
Principal repayment - subscriptions 192,999 - - - - -
Interest and fiscal charges - subscriptions 14,581 - - - - - Principal repayment - - - - - -
Interest and fiscal charges - - - - - -
Total expenditures 69,575,872 - 37,760 1,344,695 45,631 146,066 REVENUES OVER (UNDER) EXPENDITURES 13,864,611 641,487 371,163 286,646 1,491,694 1,919,786 OTHER FINANCING SOURCES (USES):
Other financing source (subscriptions) 470 - - - - -
Other financing source (loan proceeds) - - - - - -
Transfers in 4,164,205 - - - - -
Transfers out (11,787,216) - - - - -
Total other financing sources (uses) (7,622,541) - - - - - Net change in fund balances 6,242,070 641,487 371,163 286,646 1,491,694 1,919,786 Beginning of year, restated 66,664,255 948,791 722,460 12,600,624 44,592,886 5,806,206 End of year $ 72,906,325 $ 1,590,278 $ 1,093,623 $ 12,887,270 $ 46,084,580 $ 7,725,992 Special Revenue Funds
See accompanying Notes to Basic Financial Statements
24 Debt Service
Fund
Development American Art Misc. Capital Public Other Total Maintenance Rescue Plan Measure B - in Public State Projects Financing Governmental Governmental Fees Act (ARPA) 1986 ACTIA Places Grants Fund Authority Funds Funds $ - $ - $ - $ - $ - $ - $ - $ - $ 31,510,937
- - - - - - - - 38,004,773
- - - - - - - 401,617 667,497
772,490 - - 29,014 - - - 87,358 8,662,985
33,321 4,831,161 - - 286,652 - - 6,125,242 11,719,575
- - - - - - - - 2,282,097
- - - - - - - - 509,046
173,398 - - 78,244 - - 24,801 658,347 9,392,113
- - - - - - - - 478,033
979,209 4,831,161 - 107,258 286,652 - 24,801 7,272,564 103,227,056 - 139,571 - - - - - 11,081,931
- - - - - - 3,675 13,080,182
- - - - - - 349,397 26,304,610
791,716 26,386 - - - - - 3,202,597
- 432,699 - 97,870 - - 246,209 6,397,833
- - - - 44,813 22,333 - 2,979,893 14,548,945
- - - - 454,424 - - 454,894
127,986 - 749,955 - 25,073 2,562,975 - 4,253,895 9,180,322 -
- - - - - 154,773 - - 347,772
- - - - - 16,074 - - 30,655
- - - - - - 2,465,000 - 2,465,000
- - - - - - 2,355,950 - 2,355,950
919,702 598,656 749,955 97,870 69,886 3,210,579 4,820,950 7,833,069 89,450,691 59,507 4,232,505 (749,955) 9,388 216,766 (3,210,579) (4,796,149) (560,505) 13,776,365 - - - - - 402,187 - - 402,657
- - - - - 1,199,240 - - 1,199,240
- - - - - 7,339,566 4,787,216 - 16,290,987
- (4,232,505) - - (171,766) - - (99,500) (16,290,987)
- (4,232,505) - - (171,766) 8,940,993 4,787,216 (99,500) 1,601,897 59,507 - (749,955) 9,388 45,000 5,730,414 (8,933) (660,005) 15,378,262 4,202,644 - (2,559,559) 1,943,167 (45,000) 16,115,511 86,425 16,055,610 167,134,020 4,262,151$ $ - $ (3,309,514) 1,952,555$ $ - $ 21,845,925 $ 77,492 $ 15,395,605 $ 182,512,282 Special Revenue Funds Capital Projects Funds
25 26
City of Newark
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities For the year ended June 30, 2024
Net Change in Fund Balances - Total Governmental Funds $ 15,378,262 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 454,894
Subscriptions amortization (414,103)
Capital outlay 9,180,322
Depreciation (5,549,585) 3,671,528
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 347,772
Other financing source (subscriptions) (402,657)
Other financing source for the state energy program is not recognized as revenue in governmental funds and is recognized as a loan payable (1,199,240) Principal repayments 2,465,000
Amortization of deferred charges (29,183)
Amortization of bond premium 441,039 1,622,731
Unavailable revenue accrual which is not recognized in the governmental fund activity. 47,436 Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period. (400,740)
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. (296,829)
Pension expenses recognized in accordance with GASB68 not recognized in the governmental fund activity. (5,396,435)
OPEB expenses recognized in accordance with GASB75 not recognized in the governmental fund activity. 596,469
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. 18,531
Change in Net Position of Governmental Activities $ 15,240,953 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
27 City of Newark
Statement of Net Position
Proprietary Funds
June 30, 2024
Governmental
Activities -
Internal
Service Funds
ASSETS
Current assets:
Cash and investments $ 11,274,710
Other receivables 34,563
Supplies and other assets 119,929
Total current assets 11,429,202
Noncurrent assets:
Capital assets, net of accumulated depreciation 4,649,583 Total assets 16,078,785
LIABILITIES
Current liabilities:
Accounts payable 960,892
Accrued liabilities 103,786
Financed purchased obligations - due within one year 93,182 Claims payable - due within one year 357,133
Total current liabilities 1,514,993
Noncurrent liabilities:
Financed purchased obligations - due in more than one year 403,516 Claims payable - due in more than one year 2,993,759
Total non-current liabilities 3,397,275
Total liabilities 4,912,268
NET POSITION
Net investment in capital assets 4,152,885
Unrestricted 7,013,632
Total net position $ 11,166,517
See accompanying Notes to Basic Financial Statements
28 City of Newark
Statement of Activities
Proprietary Funds
For the year ended June 30, 2024
Governmental
Activities -
Internal
Service Funds
OPERATING REVENUES:
Charges to departments $ 7,800,000
Other revenue 179,606
Total operating revenues 7,979,606
OPERATING EXPENSES:
Personnel services 1,454,114
Materials and supplies 643,362
Contractual services 1,986,397
Utilities 1,085,470
Insurance claims and premiums 2,107,639
Depreciation 664,896
Total operating expenses 7,941,878
OPERATING INCOME (LOSS) 37,728
NONOPERATING REVENUES (EXPENSES):
Interest expense (19,197)
Total nonoperating revenues (expenses) (19,197)
Change in net position 18,531
NET POSITION:
Beginning of year 11,147,986
End of year $ 11,166,517
See accompanying Notes to Basic Financial Statements
29 30
City of Newark
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2024
Governmental
Activities -
Internal
Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from other funds $ 7,979,606
Payments to suppliers/other fund (2,919,815)
Payments to employees (1,454,114)
Claims paid (2,107,639)
Net cash provided by operating activities 1,498,038
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITES:
Payments on financed purchased obligations (301,168)
Acquisition of capital assets (1,911,530)
Interest paid and fiscal charges (19,197)
Net cash provided by capital and related financing activities (2,231,895) Net increase in cash and cash equivalents (733,857)
CASH AND CASH EQUIVALENTS:
Beginning of year 12,008,567
End of year $ 11,274,710
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES:
Operating income $ 37,728
Adjustments to reconcile operating income to net
cash provided by operating activities:
Depreciation 664,896
Changes in current assets and liabilities:
Other assets (22,533)
Accounts payable and accrued liabilities 817,947
Total adjustments 1,460,310
Net cash provided by operating activities $ 1,498,038
See accompanying Notes to Basic Financial Statements
31 City of Newark
Statement of Fiduciary Net Position
Fiduciary Funds
Custodial
Funds
ASSETS:
Pooled cash and investments $ 2,663,605
Total additions 2,663,605
NET POSITION
Restricted for:
Individuals and other 2,663,605
Total net position $ 2,663,605
June 30, 2024
See accompanying Notes to Basic Financial Statements
32 City of Newark
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2024
Custodial
Funds
ADDITIONS:
Interest income and fair market adjustments $ 5,992
Total additions 5,992
DEDUCTIONS:
Administrative expense $ 1,180
Total deductions 1,180
NET INCREASE (DECREASE) IN FIDUCIARY NET POSITION 4,812 Net Position - beginning, as restated 2,658,793
Net Position - ending $ 2,663,605
See accompanying Notes to Basic Financial Statements
33 City of Newark
Notes to Basic Financial Statements
For the year ended June 30, 2024
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 financialreportingprinciples. 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 is the entity for which the City is financially accountable. The Authority does not issue a separate financial statement. The City Council serves as the governing board to the Authority and is controlled entirely by the City, which also performs all their administrative and accounting functions. Itsfinancial activities have been aggregated and merged (termed“blended”) with those of the City in the accompanying financial statements. The Authority provides financing assistance to the City and has been included in these financial statements in the COPS Interest and Redemption Debt Service Fund.
B. Basis of Accounting, Measurement Focus, and Financial Statement Presentation Government-Wide Financial Statements
The City’s Government-Wide Financial Statements include a Statement of Net Position and a Statement of Activities. 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 focusand the accrual basis of accounting. Accordingly, all of the City’s assets and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position.
Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.
Certain types of transactions are reported as program revenues for the City in three categories:
• Charges for services
• Operating grants and contributions
• Capital grants and contributions
Certain eliminations have been made as prescribed by GASB Statement No. 34 regarding interfund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the businesstype 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.
34 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2024
The following interfund activities have been eliminated: Due to/from other funds, advances to/from other funds, transfers in/out, and interfund charges.
The City applies all applicable GASB pronouncements (including all NCGA Statements and Interpretations currently in effect).
Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in fund balances as presented in these statements to the net position presented in the Government-Wide Financial Statements. The City has presented all major funds that met the applicable criteria.
The City reports the following major governmental funds:
General Fund – is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. The major revenue sources for this fund are property taxes, sales taxes, utility users tax, franchise fees, licenses, permits and fines, and other charges for services. Expenditures are made for public safety and other services not required to be accounted for in another fund.
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 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.
Park Impact Fees Fund – accounts for fees which provide funding for park land and new improvements.
Development Maintenance Fees Fund – accounts for fees which provide funding to update and implement the Newark General Plan and zoning ordinance, which is needed by all new development within the City.
35 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2024
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.
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.
Art in Public Places Fund – accounts for funds collected from developers to be used for the procurement and enhancement of public art.
Miscellaneous State Grants – accounts for state grant allocations and reimbursements provided by cooperating agencies for capital related expenditures.
Capital Projects Fund – accountsfor financialresources used in major capital acquisition and construction 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 themodified accrual basis of accounting.Accordingly,only current assets and currentliabilities 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 netcurrent 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, exceptrevenuessubjectto accrual (generally 60 days after yearend) are recognizedwhen due. The primary revenue sources, which have been treated assusceptible to accrual by theCity, are property tax,salestax, intergovernmentalrevenues, andothertaxes. 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 claimto them, as when grantmonies are received priorto 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 Statementsto the Government-Wide Financial Statementsis provided to explain the differences created by the integrated approach of GASB Statement No. 34. 36 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2024
Proprietary Fund Financial Statements
Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses and Changes in 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 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: Equipment Replacement, Equipment Operations, Office Support, Building Maintenance, Public Liability SelfInsurance, and Worker’s Compensation Self-Insurance.
The Internal Service Funds accounts for services provided to other departments on a cost-reimbursement basis. Operating revenuesin the proprietary fund are those revenuesthat are generated fromthe 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 financial statements consist of a Statement of Changes in Fiduciary Net Position and Statement of FiduciaryNet 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 and other governments. The City’s custodial funds account for the assets held by the City as an agent for the AreaImprovement District. The financial activities of this fund are excluded from the Government-Wide 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 the 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:
37 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2024
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.
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 AssetBacked 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 theDeclaration of Trust and established underthe provisions ofthe 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 38 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2024
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 nonspendable financial resources.
Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers.Transfers between governmental and proprietary funds are netted as part of the reconciliation to the Government-Wide Financial Statements presentation.
H. Capital Assets
All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available.Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition value. The City defines capital assets as assets with an initial, individual cost of more than $10,000 and an estimated useful life in excess of one year.
Depreciation/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.
39 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2024
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 2-5 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 definesinfrastructure asthe basic physical assetsthat 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 the fund that has recorded the liability. The long-term portion of governmental activities compensated absences is liquidated primarily by the General Fund.
J. Subscription-Based Information Technology Arrangements The City of Newark is a subscriber for non-cancellable 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.
40 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2024
• 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 long-term 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 overthe life ofthe bonds using the effective interestmethod. Bonds payable are reported net of the applicable bond premium or discount. Other issuance costs are expensed in the current period.
Financed purchase obligations reflect lease payments where ownership of the asset being financed reverts to the City at the end of the lease.
Deferred charges arising from losses on defeasance of bonds are deferred and amortized over the shorter of the life of the refunded debt, or the life of the new debt, using straight-line amortization.
Fund Financial Statements – The governmental fund financial statements do not present long-term debt but are shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position.
Bondpremiums anddiscounts are recognizedduring the current periodasotherfinancing sourcesoruses.
Bond proceeds 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. 41 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2024
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 will not 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 its liabilities, 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 current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets.
Restricted Net Position – Describes the portion of Net Position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter. These principally include developer fees and grant funds received for use on capital projects, debt service requirements, funds received for recycling programs and future waste disposal costs; and fees for use on emergency medical services.
Unrestricted Net Position – Describes the portion of Net Position which is not restricted to use.
Fund Financial Statements
GASB 54 established Fund Balance classifications based largely upon the extent to which a 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 notes receivable.
Restricted Fund Balance – includes amounts that can be spent only for the specific purposes stipulated by external resource providers, constitutionally or through enabling legislation. The restriction may effectively bechanged or lifted only with the consent of resource providers.
Committed Fund Balance – includes amounts that can only be used for the specific purposes determined by a formal action of the City’s highest level of decision-making authority, the City Council.
Commitments may be changed or lifted only by the City Council taking the same formal action that imposed the constraintoriginally.
42 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2024
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 Council has delegated the authority to assign amounts to be used for specific purposes.
Unassigned Fund Balance – is the residual classification for the General Fund and includes all amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose, and the General Fund is the only fund that reports a positive unassigned fund balance amount.
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 decisionmaking authority in terms of established fund balance classifications and creating Committed Fund Balances.
• Formal Action Required – Ordinances are the highest-level action taken by City Council that constitutes the most binding constraint to establish, modify, or rescind a fund balance commitment.
• Timing – the City takes formal action to commit any resources as soon as possible upon determining its desire to take such action, but no later than June 30 of the fiscal year in which it applies in order for the action to be valid for the presentation of the annual report.
Assigned Fund Balances
• Approved Authority – the City Council has delegated the authority to the City Manager to assign fund balance amounts to specific purposes when such policies are enacted by the government body.
• Specific Policies – the City Council may establish policies as needed to delegate authority to an appropriate official to assign resources to specific purposes in terms of creating, modifying or rescinding Assigned Fund Balances. Such policies are approved by the government body by Resolution.
Expenditure of Funds – Order of Expenditure
• Restricted andUnrestrictedFunds – when an expenditure isincurred for purposesforwhich both Restricted and Unrestricted Fund Balances are available, the City considers that Restricted Funds are spent first until such funds are exhausted, at which time Committed, Assigned or Unassigned Funds are used.
• Committed, Assigned orUnassigned Funds – when an expenditure isincurred where there are no Restricted Funds available, and for which Committed and/or Assigned Fund Balances are available, the City exhausts Committed Funds first until such funds are exhausted and then exhausts Assigned Funds until such funds are exhausted. 43 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2024
Classification of Fund Balances
• The City at least on an annual basis, and by virtue of the adoption of its annual budget, establishes a listing of all Fund Balances and their classifications.
N. New Pronouncements
The following Government Accounting Standards Board (GASB) pronouncement was effective for and implemented for the fiscal year ended June 30, 2024:
GASB Statement No. 100, Accounting Changes and Error Corrections The requirements of this Statement will improve the clarity of the accounting and financial reporting requirements for accounting changes and error corrections, which will result in greater consistency in application in practice. In turn, more understandable, reliable, relevant, consistent, and comparable information will be provided to financial statement users for making decisions or assessing accountability.
In addition, the display and note disclosure requirements will result in more consistent, decision-useful, understandable, and comprehensive information for users about accounting changes and error corrections.
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, 2024:
44 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2024
At June 30, 2024, the City’s pooled cash and investments, including restricted funds consisted of the following:
A. Cash deposits
The carrying amount ofthe City’s cash deposit was $14,397,329 atJune 30, 2024. Bank balances and petty cash before reconciling items were $15,192,469 the total amount of which was insured and/or collateralized with securities held by pledging financial institutions in the City’s name discussed below.
The California Government Code requires banks and savings and loan institutions to secure City’s cash deposits by pledging securities as collateral. The Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of the creditor. Thus, collateral for cash deposits is considered to be held in the City’s name.
The market value of pledged securities must equal at least 110 percent of the City’s cash deposits.
California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150 percent of the City’s total cash deposits. The City may, and has waived collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation.
The City pooled cash and 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.
45 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2024
B. Investments
Under the provisions of the City’s investment policy, and in accordance with California Government Code, the following investments are authorized:
Under the provisions of bond indentures, the following are authorized investment types for investments held by fiscal agents:
C. Risk Disclosures
Interest Risk – Interest rate risk is the fluctuation in fair value of investment due to changes in interest rates. The City’s exposure to losses caused by rising interest rates is minimized by limiting the average maturity of the City’s investments to not exceed five years.
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 46 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2024
The City had the following investment maturities at June 30, 2024:
Credit Risk – Credit risk isthe risk of loss of value of a security orinvestment due to downgrade of itsrating due to a change in the ability of the issuer to fulfill its debt obligation. With the exception of U.S. Treasury securities and authorized pools, no more than 50 percent of the City’s total investment portfolio will be invested in a single security type or with a single financial institution to reduce the City’s exposure to credit risks. The City’s investment in California Agency Investment Funds is not rated.
Custodial Credit Risk – The custodial credit risk for an investment is the risk that in the event of the failure of the counter party, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. None of the City’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, 2024, 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 purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages(such as Collateralized Mortgage Obligations) or credit card receivables.
As of June 30, 2024, the City had $69,915,775 invested in LAIF, which had invested 3.00% of the pool investment funds in Structured Notes and Asset-Backed Securities. The City reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share. The fair value of LAIF was calculated by applying a factor of .984828 to the total investments held by LAIF.
Remaining Maturity
(in Months)
Investment Type Totals 12 Months or Less
LAIF $69,915,775 $69,915,775
CAMP 108,841,824 108,841,824
Money market funds 18,239 18,239
$178,775,838 $178,775,838
47 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2024
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 investment services to 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, 2024, were as follows:
• The transfer of $7 million from the General Fund to the Capital Projects Fund was to set aside funding for the City Council approved Maintenance Reserve.
General Capital Project Public Financing
Transfers Out Fund Fund Authority TOTAL
General Fund $ - $ 7,000,000 $ 4,787,216 $ 11,787,216
ARPA 4,061,551 170,954 - 4,232,505
Public Financing Authority - - - -
Misc. State Grants 3,154 168,612 - 171,766
Non-Major Fund:
BSCC 99,500 - - 99,500
$ 4,164,205 $ 7,339,566 $ 4,787,216 $ 16,290,987
Transfers In
48 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2024
• The transfer of $4.8 million from the General Fund to the Public Financing Authority reflects funding from Measure GG for the annual debt service payment of the 2019 COP. • The transfers of $4.2 million from the American Rescue Plan Act (ARPA) Fund to the General Fund and Capital Projects Fund was to fund City Council approved projects in response to the pandemic and includes funding of previously frozen positions as well as $2.7 million of revenue replacement funds.
• The transfer of $3 thousand from Miscellaneous State Grants to the General Fund reflects funding provided by the SolarApp grant.
• The transfers of $168.6 thousand from Miscellaneous State Grants to the Capital Project Fund reflects funding for the Quiet Zones capital improvement project. • The transfer of $99.5 thousand from BSCC to the General Fund reflects funding for subscription software license.
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 $2,947,772
Non-Major Funds 340,632
Total $3,288,404
Due from
49 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2024
4. CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2024 was as follows:
Balance
June 30, 2023
Additions Deletions Transfers Balance
June 30, 2024
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 4,341,344 5,011,374 - (129,679) 9,223,039 Total nondepreciable assets 48,380,293 5,011,374 - (129,679) 53,261,988 Depreciable assets
Building and land improvements 128,836,467 53,560 - - 128,890,027 Infrastructure:
Streets 81,666,162 2,479,824 - - 84,145,986
Sidewalks, curbs, gutters, and walls 18,904,970 921,188 - - 19,826,158 Street lights 3,249,607 - - - 3,249,607
Traffic signals 3,936,783 - - - 3,936,783
Equipment 16,050,994 2,625,908 - 129,679 18,806,581
Subscription assets 765,262 454,894 - - 1,220,156
Total depreciable assets 253,410,245 6,535,374 - 129,679 260,075,298 Building and land improvements 21,334,929 2,455,839 - - 23,790,768 Infrastructure:
Streets 29,697,662 2,120,678 - - 31,818,340
Sidewalks, curbs, gutters, and walls 6,869,597 478,536 - - 7,348,133 Street lights 2,071,219 130,161 - - 2,201,380
Traffic signals 3,840,112 30,445 - - 3,870,557
Equipment 11,218,403 998,821 - - 12,217,224
Subscription assets amortization 192,060 414,103 - - 606,163 Accumulated depreciation/amortization 75,223,982 6,628,583 - - 81,852,565 Net depreciable assets 178,186,263 (93,209) - 129,679 178,222,733 TOTAL ASSETS $ 226,566,556 $ 4,918,165 $ - - $ $ 231,484,721 50 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2024
Depreciation/amortization expense was charged to various governmental functions as follows:
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.
To date, three projects have been initiated and the City issued housing loans from the Housing Impact Fees Fund to fund the following 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 its 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.
General Government $ 1,446,761
Public Safety 212,551
Public Works 2,939,630
Community Development 39,306
Recreation and Community Services 911,336
Internal Service Funds 664,896
Subscription Amortization 414,103
Total Depreciation/Amortization $ 6,628,583
DESCRIPTION AMOUNT
Cedar Community Apartments $ 6,000,000
Thornton Avenue Apartments 3,476,257
Timber Street (Senior Housing) 2,765,000
$ 12,241,257
51 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2024
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, 2024, $6 million has been spent on project costs, representing the housing loan receivable payable by Allied Housing, Inc., with an additional $180,219 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, 2024, $3.5 million has been spent on project costs, representing the housing loan receivable payable by Thornton LP, with an additional $121,329 as accrued interest.
Timber Street (Senior Housing)
In October 2019, the City Council authorized the assignment of $2.8 million of the City’s affordable housing funds to Eden Housing for development of a senior affordable housing development located at 37660 Timber Street. In November 2020, the City Council also authorized the assignment of $5.4 million of the Base City Allocation from the County Housing Bond (Measure A1) approved by voters in November 2016 to the Timber Street project.
This project would consist of 79 senior housing units, and the Timber Street property is located in an area that is being revitalized by new residential construction as a result of rezoning. The project would be located adjacent to a restaurant, a grocery store, and a block away from public transportation. As of June 30, 2024, $2.8 million has been spent on project costs, representing the housing loan receivable payable by Timber Street Investors, LP with an additional $33,968 as accrued interest.
6. SUBSCRIPTION BASED INFORMATION TECHNOLOGY ARRANGEMENTS (SBITAs) A Subscription-Based Information Technology Arrangement (SBITA) is a contract that conveys control of the right to use another party’s IT software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of time in an exchange or exchange like transaction.
As of June 30, 2024, the City had 11 active subscriptions. The total combined value of the subscription liability is $602,103. The combined value of the right to use asset, as of June 30, 2024 of $1,220,156 with accumulated amortization of $606,163 is included within the subscription activities table below. 52 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2024
Information on the subscription assets as of June 30, 2024 are as follows:
Software Subscription Liability activity for the year ended June 30, 2024 was as follows:
Governmental Activities Balance as of Balance as of
June 30, 2023 Additions Reductions June 30, 2024
Total Software Subscription
$ 547,218
$402,657 $ 347,772 $ 602,103
Total Subscription Liability $ 547,218 $402,657 $ 347,772 $ 602,103 Asset Class
Subscription Asset
Value
Accumulated
Amortization
Software $1,220,156 $606,163
Total Subscriptions $1,220,156 $606,163
As of Fiscal Year-End June 30, 2024
Software Subscription asset activity for the year ended June 30, 2024 was as follows:
Balance as of Balance as of
Governmental Activities: June 30, 2023 Additions Reductions June 30, 2024 Total Software Subscription Assets $ 765,262 $ 454,894 $ - $ 1,220,156 Total Subscription Accumulated Amortization (192,060) (414,103) - (606,163) Total Governmental Subscription Assets, Net $ 573,202 $ 40,791 $ - $ 613,993 Fiscal Year Principal Payments Interest Payments Total Payments 2025 $305,184 $16,368 $321,552
2026 $164,330 $7,750 $172,080
2027 $131,953 $3,555 $135,508
2028 $636 $27 $663
$602,103 $27,700 $629,803
Principal and Interest Requirements to Maturity
Governmental Activities
53 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2024
7. LONG-TERM DEBT
The City’s long-term debt is comprised of the following at June 30, 2024:
Governmental Activities:
Balance
June 30, 2023 Additions Retirements
Balance
June 30, 2024
Amounts Due
Within One
Year
Direct Borrowings:
Certificates of Participation 2019 $ 59,405,000 $ - $ (2,465,000) $ 56,940,000 $ 2,585,000 $63,345,000; 3-5% due 2042
2019 COPs Premium 8,407,511 - (441,039) 7,966,472 -
Financed purchased obligations:
Equipment lease, due 2024 127,867 - (127,867) - -
Equipment lease, due 2024 83,008 - (83,008) - -
Equipment lease, due 2029 586,991 - (90,293) 496,698 93,182 Loans:
California Energy Commission
Loan, due 2033 - 1,199,240 1,199,240 -
Subscription software 547,218 402,657 (347,772) 602,103 305,184 Total $ 69,157,595 $ 1,601,897 $ (3,554,979) $ 67,204,513 $ 2,983,366 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 from this direct borrowing contains a provision thatstatesin the event of default, thereshall be no right under any circumstance to accelerate lease payments or otherwise declare the borrowing to beimmediately 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 withMotorola Solutions, Inc. to acquire a radio communications system that would provide regional interoperability. The last payment was made in October 2023. Ownership of the radio system reverts to the City at the end of the agreement period.
54 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2024
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 street sweeper. The last payment was made in August 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.
California Energy Commission (CEC) Loan
On August 21, 2023, the City entered into an Energy Conservation Assistance Act Loan Agreement with the California Energy Commission to borrow up to $1,598,265 to upgrade the City’s streetlights to Light Emitting Diode (LED) luminaires which will improve the light quality, reduce maintenance costs and reduce energy use. As of June 30, 2024, the loan funds totaled $1,199,240 and was disbursed on a reimbursement basis. Interest accrues at 1 percent per annum on the unpaid principal computed from each reimbursement disbursement date. Semiannual payments are due on December 22 and June 22 of each year. The principal and interest payments will begin on December 22, 2025, until June 22, 2033.
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.
Neitherthe City’s General Fund nor the full faith and credit of the City is pledged for the repayment of these bonds. AID bonds were repaid solely by special assessments levied on the properties within that District. All the AID bonds transactions are accounted for in a separate Custodial fund established by the City for that purpose. As of June 30, 2024, the outstanding balance on these bonds was paid off in full. 55 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2024
Subscription Software
The City entered into various SBITAs as the subscriber for the use of software as a service. The terms of these subscriptions range from 24 to 60 months. As of June 30, 2024, the total value of the subscription liability was $602,103, and the total combined value of the short-term subscription liability is $305,184.
The City is required to make monthly principal and interest payments ranging from $9,344 to $100,000.
The subscriptions have interest rates ranging from 2.643% to 3.918%.
8. COMPENSATED ABSENCES
The City’s compensated absences include accrued vacation, general leave and compensatory time. The value ofunpaid 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, 2024 were as follows:
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, 2023 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, an agent multiple-employer defined benefit pension plan administered by the California PublicEmployees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plan are Balance
June 30, 2023 Accrued Used
Balance
June 30,
2024
Due Within
One Year
Due in More
than One Year
Governmental Activites $ 1,891,143 1,629,743$ $ (1,332,913) 2,187,972$ 1,553,121$ $ 634,851 56 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2024
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 multipleemployer defined benefit pension plan, administered by CalPERS, which acts as a common investment and administrative agent for its participating member employers.
Benefit provisions under the Plan are established by State statue and Local Government resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.
Benefits Provided - CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries.
Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits (age 52 for Miscellaneous PEPRA members). All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
The Plan’s provisions and benefits in effect as of the June 30, 2023 measurement date are summarized as follows:
1 Members with five or more years of PERS service are eligible to retire at age 50 with statutorily reduced benefits (age 52 forMiscellaneous PEPRA members).
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 11.680% 11.680%
Required UAL payment $3,231,262 $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% 13.750%
Required employer contribution rates 27.110% 13.540%
Required UAL payment $4,765,021 $14,435
57 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2024
Employees Covered – As of the measurement date, the following employees were covered by the benefitterms for each Plan:
Inactive employees or beneficiaries currently receiving benefits
233
Inactive employees entitled to but not yet receiving benefits 218 Active employees 121
Total 572
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, 2022 rolled forward to June 30, 2023 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown on the following page.
Actuarial Assumptions – The total pension liabilities in the June 30, 2022 actuarial valuations were determined using the following actuarial assumptions:
Valuation Date June 30, 2022
Measurement Date (MD) June 30, 2023
Actuarial Cost Method Entry-Age Normal
Cost MethodActuarial Assumptions:
Discount Rate 6.90%
Inflation Price: 2.30%, Wage 2.80%
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 probabilities of mortality are based on the Nov. 2021 CalPERS Experience Study based on data observed from 2000 to 2019. Pre-retirement and post-retirement mortality rates are projected generationally for future years using 80% of Scale MP-2020 published by the Society of Actuaries. 58 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2024
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 willbe made at the current member contribution rates and that contributions from employers will be made atstatutorily required rates, actuarially determined. Based on those assumptions, the Plans fiduciary net position was projected to be available tomake 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-termmarket return expectations as well as the expected pension fund cash flows. Using historical returns of all of thefunds’ asset classes, expected compound (geometric)returns were calculated overthe short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-termandlong-term,the present value ofbenefitswas calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.
The expected real rates of return by asset class are as follows:
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% was used for this period. • Figures are based on the 2022-2023 Asset Liability Management Study. 59 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2024
Changesin the Net Pension Liability
The changes in the Net Pension Liability for the Miscellaneous Plan follow:
As of June 30, 2023 measurement date, the City reported a net pension liability of $71,157,944 for its proportionate share of thenet pension liability of the safety plan.
The City’s proportionate share of the net pension liability of the safety risk pool for the safety plan as of measurement dates June 30, 2022 and 2023 were as follows:
Proportion - June 30, 2022 0.9697%
Proportion - June 30, 2023 0.9520%
Change - Increase (Decrease) -0.0177%
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:
Miscellaneous Plan Safety Plan
1% Decrease
Net Pension Liability $61,384,946 $102,450,555
Current Discount Rate
Net Pension Liability $44,079,069 $71,157,944
1% Increase
Net Pension Liability $29,728,605 $45,574,007
5.90%
6.90%
7.90%
60 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2024
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 – At the year ended June 30, 2023 measurement date, the City recognized pension expense of $5,663,280 and $10,460,282, for the Miscellaneous and Safety plans, respectively. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to the pension plan from the following sources:
The $4,419,762 and $6,196,239 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, 2025. 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:
61 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2024
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 California Employers’ Retiree Benefit Trust (CERBT) Program and are paying the annual required contribution of the employer (ARC).
B. Employees Covered
As of the June 30, 2023 actuarial valuation, the following current and former employees were covered by the benefit terms under the Retiree Health Plan:
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 CERBT Program to prefund OPEB obligations of the City. CERBT is a GASB 75 qualifying trust. For the measurement period 2022-2023 the City contributed $801,889, including $173,984 in implicit rate subsidy, $460,033 deposit to CERBT, and $167,872 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.
Fiscal Year Miscellaneous Safety
Ending June 30, Plan Plan Total
2025 $ 1,350,580 $ 3,132,804 $ 4,483,384
2026 530,547 1,073,305 1,603,852
2027 2,901,208 7,175,511 10,076,719
2028 103,858 271,805 375,663
TOTAL $ 4,886,193 $ 11,653,425 $ 16,539,618
Deferred Outflow/(Inflows) of Resources
Inactive employees or beneficiaries currently receiving benefits 91 Inactive employees entitled to but not yet receiving benefits 116 Active Employees 176
Total 383
62 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2024
D. Net OPEB Liability/ Actuarial methods and assumptions:
The City’s net OPEB liability was measured as of June 30, 2023 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2023 using the following actuarial methods and assumptions:
Valuation Date June 30, 2023
Measurement Date June 30, 2023
Actuarial Cost Method Entry-Age Normal Cost
MethodActuarial Assumptions:
Discount Rate 6.15%
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%
E. Discount Rate
The discount rate used to measure the total OPEB liability was 6.15%. The projection of cash flows was used to determine the discount rate assuming that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected 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 projectedbenefits payments to determine the total OPEB liability.
63 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2024
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, 2023:
H. Sensitivity of the Net OPEB Liability to Changes in Health Care Cost Trend Rates The following presents the net OPEB liability of the City if it were calculated using heath care cost trend rates thatare count rate that is one percentage point lower or one percentage point higher than the current rate, for the measurement period ended June 30, 2023:
Current
1% Decrease Discount Rate 1% Increase
5.15% 6.15% 7.15%
Net OPEB Liability $ 3,867,845 $ 3,004,947 $ 2,287,733
Current
Current Trend Trend Current Trend
-1.00% 6.00% +1%
Net OPEB Liability $ 2,207,848 $ 3,004,947 $ 3,987,485
64 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2024
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 ofresources related toOPEB 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 2024, the City recognized OPEB expense of $205,420. For the fiscal year ended June 30 2024, the City reported deferred outflows of resources related to OPEB from the following sources:
The $801,889 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2023 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2025. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:
Deferred Deferred
Outflows of Inflows of
Resources Resources
OPEB contributions subsequent to $ 801,889 $ -
measurement date
Differences between actual and expected
experience 6,596 601,393
Changes in assumptions 13,950 651,508
Net differences between projected and actual
earnings on investments 223,094 -
Total $ 1,045,529 $ 1,252,901
65 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2024
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 selfinsurance 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 providesliability 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, 2024, the City paid PLAN JPA $1,659,321 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, independentof 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 insurancecoverage. During the fiscal year ended June 30, 2024, the City contribution was $1,131,751. 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.
Recognized Net Deferred
Fiscal Year Outflows (Inflows)
Ending June 30, of Resources
2025 ($296,063)
2026 (326,110)
2027 (177,999)
2028 (76,791)
2029 (67,268)
Thereafter (65,030)
TOTAL ($1,009,261)
66 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2024
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, 2024.
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 ($3,309,514), Community Development Act ($340,632), Gas Tax ($130,506), and BSCC ($159,976).
General Liability
Claims
Workers'
Compensation
Claims Total 2023 2022
Liability at beginning of fiscal year $ 1,087,232 $ 1,979,573 3,066,805$ 2,865,908$ $ 2,382,289 Claims and changes in estimates (248,159) 837,496 589,337 45,000 882,471 Claims Payments (34,260) (270,990) (305,250) 155,896 (398,852) Liability at end of fiscal year 804,813 2,546,079 3,350,892 3,066,804 2,865,908 Current Portion $ 41,419 $ 315,714 $ 357,133 $ 302,247 $ 521,007 2024
CIP Project Name/Description CIP Project #
PO/Contract
Amount
Expenditures
to date as of
June 30, 2024
Remaining
Commitments
Central Avenue Overpass Project Development Phase I CIP001014 1,782,337$ $ 1,067,732 $ 714,605 Lindsay Tract Storm Drainage Improvements CIP001238 481,116 379,843 101,273 Arterial Bicycle Lanes CIP001254 1,864,855 1,686,255 178,600 Old Town PDA Streetscape Improvements - Design CIP001258 897,218 280,639 616,579 Street Asphalt Concrete Overlay Program CIP001300 4,115,000 2,290,223 1,824,777 Street Rubberized Capseal CIP001301 1,885,000 1,693,845 191,155 Citywide Geographic Information Systems - Phase 2 CIP001331 258,500 115,904 142,596 Quiet Zones (Design & Construction) CIP001357 359,361 168,612 190,749 Traffic Signal Interconnect CIP001361 237,538 71,644 165,894 Climate Action Plan CIP001365 197,000 42,615 154,385
Thornton Avenue Pavement Rehabilitation Project CIP001366 226,500 46,031 180,469 67 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2024
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, 2024 is as follows:
General Fund
Public
Safety
Impact Fees
Community
Service
Impact Fees
Traffic Impact
Fees
Housing
Impact Fees
Nonspendable fund balance:
Supplies and other assets $ 188,665 $ - $ - $ - $ -
188,665 - - - -
Restricted fund balance for:
Public safety 1,711,511 1,590,278 - - -
Community service facilities - - 1,093,623 - -
Traffic impact - - - 12,887,270 -
Housing impact - - - - 46,084,580
Development maintenance - - - - -
Park improvement - - - - -
Art in public places - - - - -
Highway and streets - - - - -
Waste disposal program - - - - -
Recycling programs - - - - -
Health and welfare - - - - -
PEG activities - - - - -
Debt reserves - - - - -
Landscape and lighting - - - - -
1,711,511 1,590,278 1,093,623 12,887,270 46,084,580
Committed fund balance for:
Pension/OPEB Reserves 12,967,643 - - - -
12,967,643 - - - -
Assigned fund balance for:
Measure GG 14,662,735 - - - -
Equipment replacement 6,200,000 - - - -
Capital assets acquisition - - - - -
20,862,735 - - - -
Unassigned fund balance
Emergency reserves 11,430,299 - - - -
Fiscal uncertainty 10,727,663 - - - -
Unallocated (deficit) 15,017,809 - - - -
37,175,771 - - - -
Total Fund Balances $ 72,906,325 1,590,278$ $ 1,093,623 $ 12,887,270 $ 46,084,580 68 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2024
Development
Maintenance
Fees
Park Impact
Fees
Measure B -
1986 ACTIA
Fund
Art in Public
Places
Capital
Projects
Fund
Public
Financing
Authority
Other
Government
Funds
Total
$ - $ - $ - $ - $ - $ - $ - $ 188,665
- - - - - - - 188,665
- - - - - - 310,733 3,612,522
- - - - - - - 1,093,623
- - - - - - - 12,887,270
- - - - - - - 46,084,580
4,262,151 - - - - - - 4,262,151
- 7,725,992 - - - - - 7,725,992
- - - 1,952,555 - - - 1,952,555
- - - - - - 12,283,522 12,283,522
- - - - - - 18,638 18,638
- - - - - - 57,164 57,164
- - - - - - 318,267 318,267
- - - - - - 823,113 823,113
- - - - - 77,492 - 77,492
- - - - - 2,215,282 2,215,282
4,262,151 7,725,992 - 1,952,555 - 77,492 16,026,719 93,412,171 - - - - - - - 12,967,643
- - - - - - - 12,967,643
- - - - - - - 14,662,735
- - - - - - - 6,200,000
- - - - 21,845,925 - - 21,845,925
- - - - 21,845,925 - - 42,708,660
- - - - - - 11,430,299
- - - - - - 10,727,663
- - (3,309,514) - - (631,114) 11,077,181
- - (3,309,514) - - (631,114) 33,235,143
$ 4,262,151 7,725,992$ $ (3,309,514) 1,952,555$ $ 21,845,925 $ 77,492 $ 15,395,605 $ 182,512,282 69 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2024
15. PRIOR PERIOD ADJUSTMENTS
Changes to or within the Reporting Entity
Miscellaneous State Grants Fund was previously reported as a nonmajor governmental fund during the prior fiscal year. Due to a significant increase in liabilities of the fund during the year, it met the requirements of being presented as a major fund.
Miscellaneous Local Grants Fund was previously reported with the Police Grants Fund. Last year the Miscellaneous Local Grants Fund did not have police related grants and is now being reflected as a separate column with the non-major funds.
The Paramedic Tax Fund was previously reported in the non-major funds and is now being included in the General Fund.
The Fiduciary Funds previously accounted for funds to be used for assessment district projects as a liability and is now being reported in net position.
In accordance with GASB Statement No. 34, the effects of these changes to or within the financial reporting entity are shown in the table above.
70 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2024
16. SUBSEQUENT EVENTS
On September 16, 2024, the County Oversight Board (OB) approved a resolution for the request to dissolve the City of Newark Successor Agency (Agency). On September 17, 2024, the Agency provided the California Department of Finance (DOF) with this OB resolution. Pursuant to Health and Safety Code (HSC) section 34187 (d), the Agency must report meeting all the conditions: (1) all enforceable obligations identified in the Recognized Obligation Payment Schedule have been retired or paid off; (2) all read property has been disposed pursuant to HSC sections 34181 or 34191.4, and (3) all outstanding litigation has been resolved.
The Agency has reported meeting these conditions to the OB, and the DOF has completed its review of the OB action. Following the DOF’s completed review, the OB is conducting its final verification of the Agency’s disposition of final assets, pursuant to HCS section 34187 (e). The Agency has reported to the OB that there are no final assets and is awaiting the final resolution of the Agency’s dissolution at the time of this reporting.
On November 11, 2024, a new agreement between the City and the Alameda County Transportation Commission (ACTC) was signed. This new agreement will rescind the $1.7 million invoice currently reported in the Measure B 1986 Fund. This fund currently reflects a $3.3 million deficit fund balance. With this new agreement, updated invoices are being prepared to reimburse the City for project expenditures previously incurred.
71 72
REQUIRED SUPPLEMENTARY INFORMATION
73 Original Final Actual
Variance with
Final Budget
REVENUES
General property taxes $ 28,935,000 $ 30,497,000 $ 31,510,937 $ 1,013,937 Other local taxes 35,215,000 39,556,000 38,004,773 (1,551,227) Licenses permits and fees 4,191,000 4,191,000 3,773,643 (417,357) Special assessments 233,000 233,000 265,880 32,880
Other governmental agencies 433,000 433,000 443,199 10,199 Charges for services 1,604,000 2,238,000 2,282,097 44,097 Fines and forefeitures 634,000 634,000 509,046 (124,954) Use of money and property 433,000 4,095,000 6,172,875 2,077,875 Other revenue 187,000 289,862 478,033 188,171
Total revenues 71,865,000 82,166,862 83,440,483 1,273,621
EXPENDITURES
General government 9,527,000 23,582,355 10,942,360 12,639,995 Public safety:
Fire 12,767,000 13,196,000 13,076,507 119,493
Police 27,375,000 27,771,392 25,955,213 1,816,179
Community development 2,749,000 3,143,514 2,338,864 804,650 Recreation 5,547,000 5,821,900 5,621,055 200,845
Public works 11,387,000 12,564,639 11,422,749 1,141,889 Capital outlay - 14,406 11,074 3,332
Subscriptions outlay - - 470 (470)
Debt service:
Principal repayment - Subscriptions - - 192,999 (192,999) Interest and fiscal charges - Subscriptions - - 14,581 (14,581) Total expenditures 69,352,000 86,094,206 69,575,872 16,518,333 Revenues over (under) expenditures 2,513,000 (3,927,344) 13,864,611 17,791,954
OTHER FINANCING SOURCES (USES)
Transfers in 1,765,000 17,370,961 4,164,205 13,206,756
Transfers out (6,140,000) (29,958,000) (11,787,216) (18,170,784) Other financing source - Subscriptions - - 470 (470)
Total other financing sources (uses) (4,375,000) (12,587,039) (7,622,541) (4,964,498) Net change in fund balances (1,862,000) (16,514,383) 6,242,070 12,827,456 Fund balances - beginning, as restated - - 66,664,255 66,664,255 Fund balances - ending $ (1,862,000) $ (16,514,383) $ 72,906,325 $ 79,491,711 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, 2024
74 Original Final Actual
Variance with
Final Budget
REVENUES
Licenses permits and fees $ 1,280,000 $ 1,280,000 $ 585,322 $ (694,678) Use of money and property - - 56,165 56,165
Total revenues 1,280,000 1,280,000 641,487 (638,513)
Net change in fund balances 1,280,000 1,280,000 641,487 (638,513) Fund balances - beginning $ - $ - $ 948,791 $ 948,791
Fund balances - ending $ 1,280,000 $ 1,280,000 $ 1,590,278 $ 310,278 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, 2024
75 Original Final Actual
Variance with
Final Budget
REVENUES
Licenses permits and fees $ 715,000 $ 715,000 $ 369,272 $ (345,728) Use of money and property - - 39,651 39,651
Total revenues 715,000 715,000 408,923 (306,077)
EXPENDITURES
Capital Outlay - 490,000 37,760 452,240
Total expenditures - 490,000 37,760 452,240
Net change in fund balances 715,000 225,000 371,163 146,163 Fund balances - beginning - - 722,460 722,460
Fund balances - ending $ 715,000 $ 225,000 $ 1,093,623 $ 868,623 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, 2024
76 Original Final Actual
Variance with
Final Budget
REVENUES
Licenses permits and fees $ 1,905,000 $ 1,905,000 $ 1,120,792 $ (784,208) Use of money and property - - 510,549 510,549
Total revenues 1,905,000 1,905,000 1,631,341 (273,659)
EXPENDITURES
Public works - 3,014,674 1,344,695 1,669,979
Total expenditures - 3,014,674 1,344,695 1,669,979
Net change in fund balances 1,905,000 (1,109,674) 286,646 1,396,320 Fund balances - beginning $ - $ - $ 12,600,624 $ 12,600,624 Fund balances - ending $ 1,905,000 $ (1,109,674) $ 12,887,270 $ 13,996,944 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, 2024
77 Original Final Actual
Variance with
Final Budget
REVENUES
Licenses permits and fees $ 1,338,000 $ 1,338,000 $ 140,043 $ (1,197,957) Use of money and property - - 1,397,282 1,397,282
Total revenues 1,338,000 1,338,000 1,537,325 199,325
EXPENDITURES
Community development 3,000 91,000 45,631 45,369
Total expenditures 3,000 91,000 45,631 45,369
Net change in fund balances 1,335,000 1,247,000 1,491,694 244,694 Fund balances - beginning - - 44,592,886 44,592,886
Fund balances - ending $ 1,335,000 $ 1,247,000 $ 46,084,580 $ 44,837,580 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, 2024
78 Original Final Actual
Variance with
Final Budget
REVENUES
Licenses permits and fees $ 442,000 $ 442,000 $ 1,785,051 $ 1,343,051 Use of money and property - - 280,801 280,801
Total revenues 442,000 442,000 2,065,852 1,623,852
EXPENDITURES
Public works - 62,092 79,157 (17,065)
Capital outlay - 1,820,509 66,909 1,753,600
Total expenditures - 1,882,601 146,066 1,736,535
Net change in fund balances 442,000 (1,440,601) 1,919,786 3,360,387 Fund balances - beginning - - 5,806,206 5,806,206
Fund balances - ending $ 442,000 $ (1,440,601) $ 7,725,992 $ 9,166,593 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, 2024
79 Original Final Actual
Variance with
Final Budget
REVENUES
Licenses permits and fees $ 11,000 $ 11,000 $ 772,490 $ 761,490 Use of money and property - - 173,398 173,398
Intergovernmental - - 33,321 33,321
Total revenues 11,000 11,000 979,209 968,209
EXPENDITURES
Community development 352,000 2,230,445 791,716 1,438,729 Capital outlay - - 127,986 (127,986)
Total expenditures 352,000 2,230,445 919,702 1,310,743
OTHER FINANCING SOURCES (USES)
Transfers in - 1,000,000 - (1,000,000)
Total other financing sources (uses) - 1,000,000 - (1,000,000) Net change in fund balances (341,000) (1,219,445) 59,507 1,278,952 Fund balances - beginning - - 4,202,644 4,202,644
Fund balances - ending $ (341,000) $ (1,219,445) $ 4,262,151 $ 5,481,596 Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Development Maintenance Fees
For the Year Ended June 30, 2024
80 Original Final Actual
Variance with
Final Budget
REVENUES
Intergovernmental $ - $ - $ 4,831,161 $ 4,831,161
Total revenues - - 4,831,161 4,831,161
EXPENDITURES
General government - 155,002 139,571 15,431
Community development - 72,000 26,386 45,614
Recreation - - 432,699 (432,699)
Total expenditures - 227,002 598,656 (371,654)
Revenues over (under) expenditures - (227,002) 4,232,505 4,459,507
OTHER FINANCING SOURCES (USES)
Transfers out - (5,270,961) (4,232,505) 1,038,456
Total other financing sources (uses) - (5,270,961) (4,232,505) 1,038,456 Net change in fund balances - (5,497,963) - 5,497,963
Fund balances - beginning - - - -
Fund balances - ending $ - $ (5,497,963) $ - $ 5,497,963 Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual American Rescue Plan (ARPA)
For the Year Ended June 30, 2024
81 Original Final Actual
Variance with
Final Budget
EXPENDITURES
Capital outlay - 824,128 749,955 74,173
Total expenditures - 824,128 749,955 74,173
Net change in fund balances - (824,128) (749,955) 74,173 Fund balances - beginning - - (2,559,559) (2,559,559)
Fund balances - ending $ - $ (824,128) $ (3,309,514) $ (2,485,386) 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, 2024
82 CITY OF NEWARK
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY ACCOUNTING AND CONTROL
JUNE 30, 2024
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 hearings are conducted to obtain public 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 for management control purposes during the year in all budgeted funds. Under encumbrance accounting, purchase orders, contracts and other commitments for the expenditure of monies are recorded to reserve that portion of the applicable appropriation.
7. Budgets are adopted for all funds except for the Debt Service. 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, 2024, the following funds had no adopted annual budgets:
Waste Management – Augmentation
Recycle AB939
State Senate Bills
FEMA
b. Expenditures over Appropriations
The following Funds had expenditures over appropriations for the fiscal year ended June 30, 2024:
Fund Budget Actual Excess
American Rescue Plan (ARPA) $ 227,002 $ 598,656 $ 371,654 Police Grants 220,278 260,114 39,836
General Fund Subscription related outlays and debt service payments are not budgeted. 83 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
2015 2016 2017 2018
Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 Total Pension Liability
Service Cost $ 1,565,207 $ 1,428,480 $ 1,526,903 $ 1,741,959 Interest 6,903,386 7,153,135 7,430,465 7,606,416
Changes in Benefit Terms - - - -
Difference between Expected and Actual Experience - (336,919) (296,888) 98,578 Changes in Assumptions - (1,677,534) - 6,040,949
Benefit Payments, Including
Refunds of Employee Contributions (4,796,901) (5,054,891) (5,339,676) (5,585,662) Net Change in Total Pension Liability 3,671,692 1,512,271 3,320,804 9,902,240 Total Pension Liability - Beginning 93,660,996 97,332,688 98,844,959 102,165,763 Total Pension Liability - Ending (a) $ 97,332,688 $ 98,844,959 $ 102,165,763 $ 112,068,003 Plan Fiduciary Net Position
Contributions - Employer 1,672,308 1,771,614 2,089,006 2,252,015 Contributions - Employee 1,133,861 980,547 1,026,537 1,148,693 Plan to Plan Resource Movement - - - -
Net Investment Income 10,440,289 1,509,133 377,065 7,421,654 Benefit Payments, Including
Refunds of Employee Contributions (4,796,901) (5,054,891) (5,339,676) (5,585,662) Administrative Expense - (76,731) (41,512) (97,779)
Other Miscellaneous Income/(Expense) - 95 - (401)
Net Change in Fiduciary Net Position 8,449,557 (870,233) (1,888,580) 5,138,520 Plan Fiduciary Net Position - Beginning 60,535,487 68,985,044 68,114,811 66,226,231 Plan Fiduciary Net Position - Ending (b) $ 68,985,044 $ 68,114,811 $ 66,226,231 $ 71,364,751 Plan Net Pension Liability/(Assets) - Ending (a) - (b) $ 28,347,644 $ 30,730,148 $ 35,939,532 $ 40,703,252 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 70.88% 68.91% 64.82% 63.68%
Covered Payroll $ 8,921,612 $ 9,334,103 $ 9,334,103 $ 9,888,505 Plan Net Pension Liability/(Asset) as a Percentage of
Covered Payroll 317.74% 329.22% 385.03% 411.62%
Notes to Schedule:
GASB68 was first implemented in FY 2015
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:
There were no assumption changes for Measure Period 2023. 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 assumptions 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.
84 2019 2020 2021 2022 2023 2024
6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 $ 1,958,908 $ 2,015,761 $ 1,935,397 $ 1,901,824 $ 2,119,396 $ 2,218,298 7,893,622 8,282,270 8,658,150 8,849,497 8,888,163 9,198,932 - - - - - 148,766
1,112,052 1,745,541 1,582,587 (891,445) (1,907,477) 995,023 (761,857) - - - 3,418,942 -
(5,994,674) (6,387,039) (6,779,708) (7,238,583) (7,415,003) (7,978,832) 4,208,051 5,656,533 5,396,426 2,621,293 5,104,021 4,582,187 112,068,003 116,276,054 121,932,587 127,329,013 129,950,306 135,054,327 $ 116,276,054 $ 121,932,587 $ 127,329,013 $ 129,950,306 $ 135,054,327 $ 139,636,514 3,091,582 3,224,109 3,532,890 3,874,896 9,282,730 4,395,393 1,232,724 1,208,146 1,219,082 1,203,390 1,224,304 1,488,558 (176) - - - - -
6,085,231 5,029,454 3,929,919 18,157,424 (7,248,311) 5,749,616 (5,994,674) (6,387,039) (6,779,708) (7,238,583) (7,415,003) (7,978,832) (111,206) (53,848) (110,635) (80,184) (59,918) (67,631) (211,182) 176 - - - -
4,092,299 3,020,998 1,791,548 15,916,943 (4,216,198) 3,587,104 71,364,751 75,457,050 78,478,048 80,269,596 96,186,539 91,970,341 $ 75,457,050 $ 78,478,048 $ 80,269,596 $ 96,186,539 $ 91,970,341 $ 95,557,445 $ 40,819,004 $ 43,454,539 $ 47,059,417 $ 33,763,767 $ 43,083,986 $ 44,079,069
64.89% 64.36% 63.04% 74.02% 68.10% 68.43%
$ 10,925,309 $ 11,151,586 $ 11,180,801 $ 11,037,862 $ 11,297,419 $ 11,868,901 373.62% 389.67% 420.89% 305.89% 381.36% 371.38%
85 City of Newark
Miscellaneous Plan - Agent Multiple-Employer
Schedule of Plan Contributions
As of June 30, for the Last Ten Fiscal Years
2015 2016 2017
Actuarially Determined Contribution 1,773,777$ 2,089,006$ 2,252,015$ Contribution in Relation to the Actuarially Determined Contribution (1,771,614) (2,089,006) (2,252,015) Contribution Deficiency (Excess) 2,163 - -
Covered Payroll 8,581,003 9,334,103 9,888,505
Contributions as a Percentage of Covered Payroll 20.67% 22.38% 22.77% 86 2018 2019 2020 2021 2022 2023 2024
3,091,582$ 3,224,109$ 3,532,994$ 3,874,896$ 4,282,706$ 4,284,268$ 4,419,762$ (3,091,582) (3,224,109) (3,532,994) (3,874,896) (9,282,706) (4,284,268) (4,419,762) - - - - (5,000,000) - -
10,925,309 11,151,586 11,180,801 11,037,862 11,297,419 11,868,901 11,938,931
28.30% 28.91% 31.60% 35.11% 37.91% 36.10% 37.02%
87 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
2015 2016 2017 2018
Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 Proportion of the Net Pension Liability* 0.64192% 0.66006% 0.62991% 1.02467% Proportionate Share of the Net Pension Liability $ 54,506,282 $ 54,506,282 $ 54,506,282 $ 61,226,071 Covered Payroll $ 7,171,629 $ 7,171,629 $ 7,171,629 $ 7,362,907 Proportionate Share of the Net Pension Liability
as a Percentage of Covered Payroll 760.0% 760.0% 760.0% 831.5% Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 74.06% 74.06% 74.06% 65.64%
* Represents the portion of the net pension liability compared to the total risk pool for both safety and miscellaneous plans.
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 the Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates 2017 through 2021, 7.65% for measurement dates 2015 thru 2016, and 7.50% for measure date 2014. 88 2019 2020 2021 2022 2023 2024
6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023
1.05341% 1.03736% 1.03225% 1.05085% 0.96973% 0.95195%
$ 61,809,192 $ 64,757,434 $ 68,772,104 $ 36,879,425 $ 66,635,474 $ 71,157,944 $ 7,381,368 $ 9,025,651 $ 7,417,018 $ 7,777,066 7,740,113 7,096,538 837.4% 717.5% 927.2% 474.2% 860.9% 1002.7%
66.76% 66.82% 66.03% 82.29% 69.69% 68.81%
89 City of Newark
Cost-Sharing Multiple Employer Safety Plan
Schedule of Plan Contributions
As of June 30, for the Last Ten Fiscal Years (1)
2015 2016 2017
Actuarially Determined Contribution $ 2,562,932 $ 3,262,170 $ 3,595,377 Contribution in Relation to the Actuarially Determined Contribution (2,562,932) (3,262,170) (3,595,377) Contribution Deficiency (Excess) - - -
Covered Payroll 7,186,807 7,171,629 7,362,907
Contributions as a Percentage of Covered Payroll 35.2% 45.5% 48.8% 90 2018 2019 2020 2021 2022 2023 2024
$ 4,766,942 $ 5,046,191 $ 5,386,172 $ 5,836,100 $ 5,493,067 $ 5,971,166 $ 6,196,239 (4,766,942) (5,046,191) (5,386,172) (15,836,100) (5,493,067) (5,971,166) (6,196,239) - - - (10,000,000) - - -
7,381,368 9,025,651 7,417,018 7,777,066 7,740,113 7,096,538 8,318,406
64.6% 55.9% 72.6% 203.6% 71.0% 84.1% 74.5%
91 City of Newark
Schedule of Changes in the Net OPEB Liability and Related Ratios As of June 30, for the Last Ten Fiscal Years (1)
2018 2019 2020 2021
Measurement Date 6/30/2017 6/30/2018 6/30/2019 6/30/2020 Total OPEB Liability
Service cost $ 357,973 $ 339,211 $ 310,710 $ 270,070
Interest on the total OPEB liability 345,706 387,888 463,155 378,535 Actual and expected experience difference - - (1,516,027) - Changes in assumptions (232,385) 103,950 (555,472) -
Benefit payments (205,783) (223,221) (353,760) (322,724) Net change in total OPEB liability 265,511 607,828 (1,651,394) 325,881 Total OPEB liability - beginning 6,978,268 7,243,779 7,851,607 6,200,213 Total OPEB liability - ending (a) 7,243,779 7,851,607 6,200,213 6,526,094 Plan Fiduciary Net Position
Contribution - employer 315,000 354,000 576,617 697,381 Net investment income 161,324 126,130 130,911 91,520
Benefit payments (205,783) (223,221) (353,760) (322,724) Administrative expense (845) (1,002) (472) (1,296)
Investment experience - 23,308 - -
Other expenses - (2,218) - -
Net change in plan fiduciary net position 269,696 276,997 353,296 464,881 Plan fiduciary net position - beginning 1,406,246 1,675,942 1,952,939 2,306,235 Plan fiduciary net position - ending (b) 1,675,942 1,952,939 2,306,235 2,771,116 Net OPEB Liability - ending (a) - (b) $ 5,567,837 $ 5,898,668 $ 3,893,978 $ 3,754,978 Plan fiduciary net position as a percentage of
the total OPEB liability 23.14% 24.87% 37.20% 42.46%
Covered-employee payroll 15,780,296 17,438,452 20,956,996 18,991,910 Net OPEB liability as a percentage of coveredemployee payroll 35.28% 33.83% 18.58% 19.77% (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%. 92 2022 2023 2024
6/30/2021 6/30/2022 6/30/2023
$ 278,172 $ 290,340 $ 299,050
398,066 397,377 417,223
10,652 - (45,556)
(355,369) - (192,112)
(339,677) (370,663) (360,639)
(8,156) 317,054 117,966
6,526,094 6,517,938 6,834,992
6,517,938 6,834,992 6,952,958
339,677 606,337 807,273
761,949 (500,346) 235,941
(339,677) (370,663) (360,639)
(1,049) (919) (989)
- - -
- - -
760,900 (265,591) 681,586
2,771,116 3,532,016 3,266,425
3,532,016 3,266,425 3,948,011
$ 2,985,922 $ 3,568,567 $ 3,004,947
54.19% 47.79% 56.78%
18,685,140 19,245,694 21,684,866
15.98% 18.54% 13.86%
93 City of Newark
Schedule of OPEB Contributions
As of June 30, for the Last Ten Fiscal Years (1)
2018 2019 2020 2021
Measurement Date 6/30/2017 6/30/2018 6/30/2019 6/30/2020 Actuarially Determined Contribution $ 537,000 $ 572,265 $ 588,500 $ 476,313 Contribution in Relation to the Actuarially
Determined Contributions (354,000) (576,617) (697,381) (339,677) Contribution Deficiency (Excess) $ 183,000 $ (4,352) $ (108,881) $ 136,636 Covered-employee payroll $ 17,438,452 $ 20,956,996 $ 18,991,910 $ 18,685,140 Contributions as a percentage of coveredemployee payroll 2.03% 2.75% 3.67% 1.82% (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
Amortization Valuation Method/Period
Asset Valuation Method
Discount Rate
Inflation
Mortality
94 2022 2023 2024
6/30/2021 6/30/2022 6/30/2023
$ 490,602 $ 446,634 $ 460,033
(606,337) (807,273) (801,889)
$ (115,735) $ (360,639) $ (341,856)
$ 19,245,694 $ 21,684,866 $ 22,768,816
3.15% 3.72% 3.52%
95 96
SUPPLEMENTARY INFORMATION
97 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
Alameda County Fire Fees – Accounts for funds received from the County for emergency medical services.
FEMA – Accounts for funds received from the Federal Emergency Management Agency (FEMA) for emergency recovery reimbursements due to citywide disasters.
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 (HCD) – 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 – Waste Management – 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 – 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.
98 Hazardous Materials Program – Accounts for grant proceeds for specific hazardous materials education and mitigation programs.
State Senate Bills Fund – Accounts for Senate Bill 1186, State CASp fee which is mandated by California SB1186 and its purpose is to increase disability access and compliance with construction related accessibility requirements. It also accounts for the Building Standards Fee (SB1473) and the California Strong Motion Instrumentation Program (CSMIP).
BSCC Grants – Accounts for grants funded by the Board of State and Community Corrections (BSCC). Grant funded programs include Officer Wellness and Mental Health, Car Break-in Prevention, and Organized Retail Theft (ORT).
State Construction Maintenance Funds – Accounts for funds to be used for various street maintenance and construction projects.
Miscellaneous Local Grants – Accounts for County grant reimbursements which funds provide support services through education, leadership, and enrichment activities for families and youth.
CAPITAL PROJECTS FUNDS
Art in Public Places – 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 and construction activities and in the renovation, replacement, and maintenance of the City’s major capital assets.
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 grant 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. 99 City of Newark
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2024
Alameda Community
County FEMA Police Development Waste
Fire Fees Grants Act (HCD) Augmentation
ASSETS
Pooled cash and investments $ 50,710 $ 81,929 $ 248,552 $ - $ 18,638 Receivables:
Accounts - - - - -
Intergovernmental - 54,740 12,767 538,412 -
Other - - - - -
Total assets $ 50,710 $ 136,669 $ 261,319 $ 538,412 $ 18,638
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ - $ - $ 852 $ - $ -
Accrued liabilities - - 444 - -
Unearned revenues - - - - -
Refundable deposits - - - - -
Due to other funds - - - 340,632 -
Total liabilities - - 1,296 340,632 -
DEFERRED INFLOW OF RESOURCES
Unavailable revenue - 54,740 - 538,412 -
Total deferred inflow of resources - 54,740 - 538,412 - Fund Balances (Deficit):
Restricted 50,710 81,929 260,023 - 18,638
Unassigned (deficit) - - - (340,632) -
Total fund balances (deficit) 50,710 81,929 260,023 (340,632) 18,638 Total liabilities and fund balances (deficits) $ 50,710 $ 136,669 $ 261,319 $ 538,412 $ 18,638 Special Revenue Funds
100
Continued
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 $ 173,295 $ 294,439 $ 1,281,934 $ 4,784,535 $ 662,405 $ 66,617 $ 4,806,282 - - 26,280 - - - - -
- 32,913 110,527 - 309,293 35,984 - 213,443
- - - - - - - -
$ 57,164 $ 206,208 $ 431,246 $ 1,281,934 $ 5,093,828 $ 698,389 $ 66,617 $ 5,019,725 $ - $ 68,237 $ 535,472 $ 150,588 $ 668,359 $ - $ 22,650 $ 7,600 - - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- 68,237 535,472 150,588 668,359 - 22,650 7,600
- - 26,280 - - - - -
- - 26,280 - - - - -
57,164 137,971 - 1,131,346 4,425,469 698,389 43,967 5,012,125 - - (130,506) - - - - -
57,164 137,971 (130,506) 1,131,346 4,425,469 698,389 43,967 5,012,125 $ 57,164 $ 206,208 $ 431,246 $ 1,281,934 $ 5,093,828 $ 698,389 $ 66,617 $ 5,019,725 Special Revenue Funds
101
City of Newark
Combining Balance Sheet
Non-Major Governmental Funds, Continued
June 30, 2024
Hazardous State State Misc.
Materials Senate Bills BSCC Construction Local
Program Fund Grants Maintenance Grants
ASSETS
Pooled cash and investments $ 26,627 $ 120,062 $ 392,501 $ 987,740 $ 3,299 Receivables:
Accounts - - - - -
Intergovernmental - - 186,666 - -
Other - - - - -
Total assets $ 26,627 $ 120,062 $ 579,167 $ 987,740 $ 3,299
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ - $ 2,485 $ 93,070 $ 2,745 $ -
Accrued liabilities - - - - -
Unearned revenues - - 460,007 - -
Refundable deposits - 49,136 - 12,769 -
Due to other funds - - - - -
Total liabilities - 51,621 553,077 15,514 -
DEFERRED INFLOW OF RESOURCES
Unavailable revenue - - 186,066 - -
Total deferred inflow of resources - - 186,066 - -
Fund Balances (Deficit):
Restricted 26,627 68,441 - 972,226 3,299
Unassigned - - (159,976) - -
Total fund balances (deficit) 26,627 68,441 (159,976) 972,226 3,299 Total liabilities and fund balances $ 26,627 $ 120,062 $ 579,167 $ 987,740 $ 3,299 Special Revenue Funds
102
Continued
Landscape Non-Major
PEG and Lighting Governmental
Fees District Funds
$ 808,094 $ 2,270,594 $ 17,135,417
4,536 30,816
- - 1,494,745
15,019 - 15,019
$ 823,113 $ 2,275,130 $ 18,675,997
$ - $ 59,848 $ 1,611,906
- - 444
- - 460,007
- - 61,905
- - 340,632
- 59,848 2,474,894
- - 805,498
- - 805,498
823,113 2,215,282 16,026,719
- - (631,114)
823,113 2,215,282 15,395,605
$ 823,113 $ 2,275,130 $ 18,675,997
Capital Project Funds
103
City of Newark
Combined Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the year ended June 30, 2024
Alameda Community Waste
County FEMA Police Development Augmentation
Fire Fees Grants Act (HCD) Fund
REVENUES:
Special assessments $ - $ - $ - $ - $ -
Other governmental agencies - 81,929 251,711 174,135 -
Use of money and property - - 1,460 - -
License, permits and fees - - 12,415 - -
Other revenues - - - - -
Total revenues - 81,929 265,586 174,135 -
EXPENDITURES:
Current:
Public safety:
Fire 3,675 - - - -
Police - - 260,114 - -
Public works - - - - -
Community development - - - - -
Recreation - - - - -
Capital outlay - - - 173,692 -
Total expenditures 3,675 - 260,114 173,692 -
REVENUE OVER
(UNDER) EXPENDITURES (3,675) 81,929 5,472 443 -
OTHER FINANCING USES:
Transfers out - - - - -
Total other financing uses - - - - -
Net change in fund balances (3,675) 81,929 5,472 443 -
FUND BALANCES (Deficit):
Beginning of year 54,385 - 254,551 (341,075) 18,638
End of year $ 50,710 $ 81,929 $ 260,023 $ (340,632) $ 18,638 Special Revenue Funds
104
Continued
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
$ - $ - $ - $ - $ - $ - $ - $ -
- 133,564 1,355,052 - 2,007,808 214,338 496,000 1,224,729 - 8,660 42,434 52,299 175,340 24,112 967 175,769
- - - - - - - -
- - - - - - - -
- 142,224 1,397,486 52,299 2,183,148 238,450 496,967 1,400,498 - - - - - - - -
- - - - - - - -
- 328,466 2,290,696 2,499 - - - -
- - - - - - - -
- - - - 194,786 - - -
- - 2,506,371 411,163 690,427 - 294,185 46,123
- 328,466 4,797,067 413,662 885,213 - 294,185 46,123
- (186,242) (3,399,581) (361,363) 1,297,935 238,450 202,782 1,354,375 - - - - - - - -
- - - - - - - -
- (186,242) (3,399,581) (361,363) 1,297,935 238,450 202,782 1,354,375 57,164 324,213 3,269,075 1,492,709 3,127,534 459,939 (158,815) 3,657,750 $ 57,164 $ 137,971 $ (130,506) $ 1,131,346 $ 4,425,469 $ 698,389 $ 43,967 $ 5,012,125 Special Revenue Funds
105
City of Newark
Combined Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds, Continued
For the year ended June 30, 2024
Hazardous State State Misc.
Materials Senate Bills BSCC Construction Local
Program Fund Grants Maintenance Grants
REVENUES:
Special assessments $ - $ - $ - $ - $ -
Other governmental agencies - - 134,502 - 51,473
Use of money and property 1,051 - 18,230 39,021 -
License, permits and fees - 12,614 - - -
Other revenues - - - - -
Total revenues 1,051 12,614 152,732 39,021 51,473
EXPENDITURES:
Current:
Public safety:
Fire - - - - -
Police - - 89,283 - -
Public works - 10,413 - - -
Community development - - - -
Recreation - - - - 51,473
Capital outlay - - 131,883 -
Total expenditures - 10,413 221,166 - 51,473
REVENUE OVER
(UNDER) EXPENDITURES 1,051 2,201 (68,434) 39,021 -
OTHER FINANCING
Transfers out - - (99,500) - -
Total other financing uses - - (99,500) - -
Net change in fund balances 1,051 2,201 (167,934) 39,021 - FUND BALANCES:
Beginning of year, restated 25,576 66,240 7,958 933,205 3,299 End of year $ 26,627 $ 68,441 $ (159,976) $ 972,226 $ 3,299 Special Revenue Funds
106
Continued
Landscape Non-Major
PEG and Lighting Governmental
Fees District Funds
$ - $ 401,617 $ 401,617
- - 6,125,241
31,188 87,816 658,347
62,329 - 87,358
- - -
93,517 489,433 7,272,563
- - 3,675
- - 349,397
- 347,819 2,979,893
- - -
- - 246,259
- - 4,253,844
- 347,819 7,833,068
93,517 141,614 (560,505)
- - (99,500)
- - (99,500)
93,517 141,614 (660,005)
729,596 2,073,668 16,055,610
$ 823,113 $ 2,215,282 $ 15,395,605
Capital Project Funds
107
108
Original Final Actual
Variance with
Final Budget
EXPENDITURES
Fire 4,000 4,000 3,675 325
Total expenditures 4,000 4,000 3,675 325
Net change in fund balances (4,000) (4,000) (3,675) 325 Fund balances - beginning - - 54,385 54,385
Fund balances - ending $ (4,000) $ (4,000) $ 50,710 $ 54,710 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, 2024
109
Original Final Actual
Variance with
Final Budget
REVENUES
Licenses permits and fees $ - $ - $ 12,415 $ 12,415
Intergovernmental 170,000 318,000 251,711 (66,289)
Use of money and property - - 1,460 1,460
Total revenues 170,000 318,000 265,586 (52,414)
EXPENDITURES
Police 35,000 220,278 260,114 (39,836)
Total expenditures 35,000 220,278 260,114 (39,836)
Net change in fund balances 135,000 97,722 5,472 (92,250) Fund balances - beginning - - 254,551 254,551
Fund balances - ending $ 135,000 $ 97,722 $ 260,023 $ 162,301 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, 2024
110
Original Final Actual
Variance with
Final Budget
REVENUES
Other governmental agencies $ 140,000 $ 411,022 $ 174,135 $ (236,887) Total revenues 140,000 411,022 174,135 (236,887)
EXPENDITURES
Capital outlay 140,000 573,946 173,692 400,254
Total expenditures 140,000 573,946 173,692 400,254
Net change in fund balances - (162,924) 443 163,367
Fund balances - beginning - - (341,075) (341,075)
Fund balances (deficit) - ending $ - $ (162,924) $ (340,632) $ (177,708) 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, 2024
111
Original Final Actual
Variance with
Final Budget
REVENUES
Intergovernmental $ 125,000 $ 134,000 $ 133,564 $ (436) Use of money and property - - 8,660 8,660
Total revenues 125,000 134,000 142,224 8,224
EXPENDITURES
Public works 286,000 916,588 328,466 588,122
Total expenditures 286,000 916,588 328,466 588,122
Net change in fund balances (161,000) (782,588) (186,242) 596,345 Fund balances - beginning - - 324,213 324,213
Fund balances - ending $ (161,000) $ (782,588) $ 137,971 $ 920,559 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, 2024
112
Original Final Actual
Variance with
Final Budget
REVENUES
Intergovernmental $ 1,450,000 $ 1,450,000 $ 1,355,052 $ (94,948) Use of money and property - - 42,434 42,434
Total revenues 1,450,000 1,450,000 1,397,486 (52,514)
EXPENDITURES
Public works 2,910,000 11,707,289 2,290,696 9,416,592
Capital outlay - - 2,506,371 (2,506,371)
Total expenditures 2,910,000 11,707,289 4,797,067 6,910,222 Net change in fund balances (1,460,000) (10,257,289) (3,399,581) 6,857,708 Fund balances - beginning - - 3,269,075 3,269,075
Fund balances - ending $ (1,460,000) (10,257,289) $ (130,506) $ 10,126,783 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, 2024
113
Original Final Actual
Variance with
Final Budget
REVENUES
Use of money and property $ - $ - $ 52,299 $ 52,299
Total revenues - - 52,299 52,299
EXPENDITURES
Public works - 3,000 2,499 501
Capital outlay - 485,931 411,163 74,768
Total expenditures - 488,931 413,662 75,269
Net change in fund balances - (488,931) (361,363) 127,568 Fund balances - beginning - - 1,492,709 1,492,709
Fund balances - ending $ - $ (488,931) $ 1,131,346 $ 1,620,277 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, 2024
114
Original Final Actual
Variance with
Final Budget
REVENUES
Intergovernmental $ 1,639,000 $ 1,639,000 $ 2,007,808 $ 368,808 Use of money and property - - 175,340 175,340
Total revenues 1,639,000 1,639,000 2,183,148 544,148
EXPENDITURES
Recreation 220,000 220,000 194,786 25,214
Capital outlay 400,000 1,017,673 690,427 327,246
Total expenditures 620,000 1,237,673 885,213 352,460
Net change in fund balances 1,019,000 401,328 1,297,935 896,608 Fund balances - beginning - - 3,127,534 3,127,534
Fund balances - ending $ 1,019,000 $ 401,328 $ 4,425,469 $ 4,024,142 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, 2024
115
Original Final Actual
Variance with
Final Budget
REVENUES
Intergovernmental $ 200,000 $ 200,000 $ 214,338 $ 14,338 Use of money and property - - 24,112 24,112
Total revenues 200,000 200,000 238,450 38,450
EXPENDITURES
Public works 80,000 80,000 - 80,000
Total expenditures 80,000 80,000 - 80,000
Net change in fund balances 120,000 120,000 238,450 118,450 Fund balances - beginning - - 459,939 459,939
Fund balances - ending $ 120,000 $ 120,000 $ 698,389 $ 578,389 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, 2024
116
Original Final Actual
Variance with
Final Budget
REVENUES
Intergovernmental $ - $ - $ 496,000 $ 496,000
Use of money and property - - 967 967
Total revenues - - 496,967 496,967
EXPENDITURES
Capital outlay - 641,309 294,185 347,124
Total expenditures - 641,309 294,185 347,124
Net change in fund balances - (641,309) 202,781 844,091 Fund balances - beginning - - (158,815) (158,815)
Fund balances - ending $ - $ (641,309) $ 43,967 $ 685,276 Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual ACTC Discretionary Funds
For the Year Ended June 30, 2024
117
Original Final Actual
Variance with
Final Budget
REVENUES
Intergovernmental $ 1,114,000 $ 1,114,000 $ 1,224,729 $ 110,729 Use of money and property - - 175,769 175,769
Total revenues 1,114,000 1,114,000 1,400,498 286,498
EXPENDITURES
Capital outlay 1,000,000 3,046,647 46,123 3,000,524
Total expenditures 1,000,000 3,046,647 46,123 3,000,524 Net change in fund balances 114,000 (1,932,647) 1,354,375 3,287,022 Fund balances - beginning - - 3,657,750 3,657,750
Fund balances - ending $ 114,000 $ (1,932,647) $ 5,012,125 $ 6,944,772 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, 2024
118
Original Final Actual
Variance with
Final Budget
REVENUES
Intergovernmental $ 13,000 $ 13,000 $ - $ (13,000)
Use of money and property - - 1,051 1,051
Total revenues 13,000 13,000 1,051 (11,949)
EXPENDITURES
Public works 13,000 13,000 - 13,000
Total expenditures 13,000 13,000 - 13,000
Net change in fund balances - - 1,051 1,051
Fund balances - beginning - - 25,576 25,576
Fund balances - ending $ - $ - $ 26,627 $ 26,627
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, 2024
119
Original Final Actual
Variance with
Final Budget
REVENUES
Intergovernmental $ - $ 986,444 $ 134,502 $ (851,942)
Use of money and property - - 18,231 18,231
Total revenues - 986,444 152,733 (833,711)
EXPENDITURES
Police 146,000 948,131 89,283 858,848
Capital outlay - 238,313 131,883 106,430
Total expenditures 146,000 1,186,444 221,166 965,278
Revenues over (under) expenditures (146,000) (200,000) (68,434) 131,566
OTHER FINANCING SOURCES (USES)
Transfers out - (100,000) (99,500) 500
Total other financing sources (uses) - (100,000) (99,500) 500 Net change in fund balances (146,000) (300,000) (167,934) 132,066 Fund balances - beginning - - 7,958 7,958
Fund balances (deficit) - ending $ (146,000) $ (300,000) $ (159,976) $ 140,024 Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual BSCC Grants
For the Year Ended June 30, 2024
120
Original Final Actual
Variance with
Final Budget
REVENUES
Use of money and property $ - $ - $ 39,021 $ 39,021
Total revenues - - 39,021 39,021
EXPENDITURES
Capital outlay - 40,000 - 40,000
Total expenditures - 40,000 - 40,000
Net change in fund balances - (40,000) 39,021 79,021
Fund balances - beginning - - 933,205 933,205
Fund balances - ending $ - $ (40,000) $ 972,226 $ 1,012,226 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, 2024
121
Original Final Actual
Variance with
Final Budget
REVENUES
Intergovernmental $ - $ 52,000 $ 51,473 $ (527)
Total revenues - 52,000 51,473 (527)
EXPENDITURES
Recreation - 91,596 51,473 40,123
Total expenditures - 91,596 51,473 40,123
Net change in fund balances - (39,596) - 39,596
Fund balances - beginning - - 3,299 3,299
Fund balances - ending $ - $ (39,596) $ 3,299 $ 42,894
Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Misc. Local Grants
For the Year Ended June 30, 2024
122
Original Final Actual
Variance with
Final Budget
REVENUES
Licenses permits and fees $ 50,000 $ 50,000 $ 62,329 $ 12,329 Use of money and property - - 31,188 31,188
Total revenues 50,000 50,000 93,517 43,517
EXPENDITURES
Capital outlay - 311,478 - 311,478
Total expenditures - 311,478 - 311,478
Revenues over (under) expenditures 50,000 (261,478) 93,517 354,995
OTHER FINANCING SOURCES (USES)
Transfers out - (310,000) - 310,000
Total other financing sources (uses) - (310,000) - 310,000 Net change in fund balances 50,000 (571,478) 93,517 664,995 Fund balances - beginning - - 729,596 729,596
Fund balances - ending $ 50,000 $ (571,478) $ 823,113 $ 1,394,591 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, 2024
123
Original Final Actual
Variance with
Final Budget
REVENUES
Licenses permits and fees $ 20,000 $ 20,000 $ 29,014 $ 9,014 Use of money and property - - 78,243 78,243
Total revenues 20,000 20,000 107,258 87,258
EXPENDITURES
Recreation - 122,250 97,870 24,380
Total expenditures - 122,250 97,870 24,380
Net change in fund balances 20,000 (102,250) 9,388 111,638 Fund balances - beginning - - 1,943,167 1,943,167
Fund balances - ending $ 20,000 $ (102,250) $ 1,952,555 $ 2,054,805 Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Art in Public Places
For the Year Ended June 30, 2024
124
Original Final Actual
Variance with
Final Budget
REVENUES
Intergovernmental $ - $ 6,036,088 $ 286,652 $ (5,749,436) Total revenues - 6,036,088 286,652 (5,749,436)
EXPENDITURES
Public works - 200,870 44,813 156,057
Capital outlay - - 25,073 (25,073)
Total expenditures - 200,870 69,886 130,984
Revenues over (under) expenditures - 5,835,218 216,765 (5,618,452)
OTHER FINANCING SOURCES (USES)
Transfers out - (5,840,000) (171,766) 5,668,234
Total other financing sources (uses) - (5,840,000) (171,766) 5,668,234 Net change in fund balances - (4,782) 45,000 49,782
Fund balances - beginning - - (45,000) (45,000)
Fund balances - ending $ - $ (4,782) $ - $ 4,782
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, 2024
125
Original Final Actual
Variance with
Final Budget
EXPENDITURES
Public works - 18,808,940 22,332 18,786,608
Capital outlay - subscriptions - - 454,424 (454,424)
Capital outlay - - 2,562,975 (2,562,975)
Debt service:
Principal repayment - Subscriptions - - 154,773 (154,773) Interest and fiscal charges - Subscriptions - - 16,074 (16,074) Total expenditures - 18,808,940 3,210,578 15,598,362
Revenues over (under) expenditures - 18,808,940 3,210,578 15,598,362
OTHER FINANCING SOURCES (USES)
Other financing source - Loan proceeds - - 1,199,240 1,199,240 Other financing source - Subscriptions - - 402,187 402,187 Transfers in - 8,000,000 7,339,566 (660,434)
Total other financing sources (uses) - 8,000,000 8,940,993 940,993 Net change in fund balances - (10,808,940) 5,730,415 16,539,355 Fund balances - beginning, as restated - - 16,115,510 16,115,510 Fund balances - ending $ - $ (10,808,940) $ 21,845,925 $ 32,654,865 Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Capital Projects
For the Year Ended June 30, 2024
126
Original Final Actual
Variance with
Final Budget
REVENUES
Special assessments $ - $ 574,000 $ 401,617 $ (172,383) Use of money and property - - 87,816 87,816
Total revenues - 574,000 489,434 (84,566)
EXPENDITURES
Public works - 563,673 347,819 215,854
Total expenditures - 563,673 347,819 215,854
Net change in fund balances - 10,327 141,615 131,288
Fund balances - beginning - - 2,073,668 2,073,668
Fund balances - ending $ - $ 10,327 $ 2,215,283 $ 2,204,956 Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Landscape and Lighting Districts
For the Year Ended June 30, 2024
127
128
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.
129
City of Newark
Combining Statement of Net Position
Internal Service Funds
June 30, 2024
Equipment Equipment Office
Replacement Operations Support
ASSETS
Current assets:
Cash and investments $ 1,614,993 $ 616,011 $ 32,733
Receivables 9,514 - -
Supplies and other assets - 78,082 -
Total current assets 1,624,507 694,093 32,733
Capital assets, net of accumulated depreciation 4,649,583 - - Total assets 6,274,090 694,093 32,733
LIABILITIES
Current liabilities:
Accounts payable 477,301 96,796 11,177
Accrued liabilities 102,817 - 969
Financed purchase obligations, due within one year 93,182 - - Claims payable, due within one year - - -
Total current liabilities 673,300 96,796 12,146
Noncurrent liabilities:
Financed purchase obligations, due in more than one year 403,516 - - Claims payable, due in more than one year - - -
Total non-current liabilities 403,516 - -
Total liabilities 1,076,816 96,796 12,146
NET POSITION
Net investment in capital assets 4,152,885 - -
Unrestricted (deficit) 1,044,389 597,297 20,587
Total net position (deficit) $ 5,197,274 $ 597,297 $ 20,587 130
Public Workers'
Building Liability Compensation
Maintenance Self-Insurance Self-Insurance Total
$ 2,617,581 $ 2,606,904 $ 3,786,488 $ 11,274,710
21,282 3,767 - 34,563
41,847 - - 119,929
2,680,710 2,610,671 3,786,488 11,429,202
- - - 4,649,583
2,680,710 2,610,671 3,786,488 16,078,785
307,547 29,022 39,049 960,892
- - - 103,786
- - - 93,182
- 41,419 315,714 357,133
307,547 70,441 354,763 1,514,993
- - - 403,516
- 763,394 2,230,365 2,993,759
- 763,394 2,230,365 3,397,275
307,547 833,835 2,585,128 4,912,268
- - - 4,152,885
2,373,163 1,776,836 1,201,360 7,013,632
$ 2,373,163 $ 1,776,836 $ 1,201,360 $ 11,166,517
131
City of Newark
Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds
For the year ended June 30, 2024
Equipment Equipment Office
Replacement Operations Support
OPERATING REVENUES:
Charges to departments $ 700,000 $ 600,000 $ 100,000
Other revenue 9,514 9,773 -
Total operating revenues 709,514 609,773 100,000
OPERATING EXPENSES:
Personnel services - 686,021 -
Materials and supplies 20,137 384,474 66,444
Contractual services - 221,276 68,382
Utilities - - -
Insurance claims and premiums - - -
Depreciation 664,896 - -
Total operating expenses 685,033 1,291,771 134,826
OPERATING INCOME (LOSS) 24,481 (681,998) (34,826)
NONOPERATING REVENUES (EXPENSES):
Interest expense (19,197) - -
Loss on disposal of asset - - -
Total nonoperating revenue (expenses) (19,197) - -
Change in net position 5,284 (681,998) (34,826)
NET POSITION:
Beginning of year 5,191,990 1,279,295 55,413
End of year $ 5,197,274 $ 597,297 $ 20,587
132
Public Workers'
Building Liability Compensation
Maintenance Self-Insurance Self-Insurance Total
$ 2,800,000 $ 2,800,000 $ 800,000 $ 7,800,000
133,735 26,584 - 179,606
2,933,735 2,826,584 800,000 7,979,606
705,607 31,243 31,243 1,454,114
147,447 24,860 - 643,362
1,074,487 (248,159) 870,411 1,986,397
1,085,470 - - 1,085,470
- 1,790,863 316,776 2,107,639
- - - 664,896
3,013,011 1,598,807 1,218,430 7,941,878
(79,276) 1,227,777 (418,430) 37,728
- - - (19,197)
- - - -
- - - (19,197)
(79,276) 1,227,777 (418,430) 18,531
2,452,439 549,059 1,619,790 11,147,986
$ 2,373,163 $ 1,776,836 $ 1,201,360 $ 11,166,517
133
City of Newark
Combining Statement of Cash Flows
Internal Service Funds
For the year ended June 30, 2024
Equipment Equipment Office
Replacement Operations Support
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from other funds $ 709,514 $ 609,773 $ 100,000 Payments (to) from suppliers and other funds 434,113 (608,968) (147,784) Payments to employees - (686,021) -
Claim payments - - -
Net cash provided (used) by operating activities 1,143,627 (685,216) (47,784)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES:
Payments on financed purchased obligation (301,168) - - Acquisition of capital assets (1,911,530) - -
Interest paid and fiscal charges (19,197) - -
Net cash provided (used) by capital and
related financing activities (2,231,895) - -
Net increase (decrease) in cash
and cash equivalents (1,088,268) (685,216) (47,784)
CASH AND CASH EQUIVALENTS:
Beginning of year 2,703,261 1,301,227 80,517
End of year $ 1,614,993 $ 616,011 $ 32,733
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating income (loss) $ 24,481 $ (681,998) $ (34,826) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:
Depreciation 664,896 - -
Change in assets and liabilities:
Accounts receivable and other assets (7,388) (25,507) - Accounts payable and accrued liabilities 461,638 22,289 (12,958) Total adjustments 1,119,146 (3,218) (12,958)
Net cash provided (used) by operating activities $ 1,143,627 $ (685,216) $ (47,784) 134
Public Workers'
Building Liability Compensation
Maintenance Self-Insurance Self-Insurance Total
$ 2,933,735 $ 2,826,584 $ 800,000 $ 7,979,606
(2,245,143) (47,602) (304,431) (2,919,815)
(705,607) (31,243) (31,243) (1,454,114)
- (1,790,863) (316,776) (2,107,639)
(17,015) 956,876 147,550 1,498,038
- - - (301,168)
- - - (1,911,530)
- - - (19,197)
- - - (2,231,895)
(17,015) 956,876 147,550 (733,857)
2,634,596 1,650,028 3,638,938 12,008,567
$ 2,617,581 $ 2,606,904 $ 3,786,488 $ 11,274,710
$ (79,276) $ 1,227,777 $ (418,430) $ 37,728
- - - 664,896
13,694 (3,332) - (22,533)
48,567 (267,569) 565,980 817,947
62,261 (270,901) 565,980 1,460,310
$ (17,015) $ 956,876 $ 147,550 $ 1,498,038
135
136
Statistical Section
This section of the City of Newark's Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the 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 Capacity
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
137
138
City of Newark
Net Position by Component
Last Ten Years
(accrual basis of accounting)
(dollars in thousands)
2015 2016 2017* 2018 2019 2020 2021 2022 2023 2024
Primary government
Governmental activities:
Net Investment in Capital Assets $140,931 $140,414 $140,414 $143,058 $147,511 $153,456 $154,434 $157,503 $157,499 $163,903 Restricted 17,260 26,622 39,483 42,954 31,076 89,447 74,408 88,301 101,607 113,469 Unrestricted (55,634) (43,711) (37,879) (35,998) (11,034) (66,234) (31,461) (16,192) (12,147) (15,163) Total governmental activities
net position $102,557 $123,325 $142,019 $150,014 $167,553 $176,669 $197,381 $229,612 $246,959 $262,209 * Net Position not restated for the implementation of GASB Statement No. 75 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 139
City of Newark
Changes in Net Position
Last Ten Years
(accrual basis of accounting)
(dollars in thousands)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Expenses
Governmental activities:
General government $5,986 $4,484 $5,337 $6,159 $6,656 $6,668 $6,827 $10,182 $11,148 $12,968 Public safety:
Fire 9,641 9,805 10,560 11,424 10,821 16,336 11,582 12,851 12,212 13,573 Police 15,565 17,202 19,798 21,728 24,012 22,317 27,257 17,928 27,483 30,797 Public Works 6,082 5,934 6,444 8,648 16,837 14,007 13,283 10,401 13,895 17,666 Community development 3,456 3,930 5,002 6,918 2,173 1,914 2,590 2,795 3,485 3,368 Recreation and community services 4,245 4,291 5,243 7,566 6,017 5,663 5,889 4,965 5,891 7,258 Interest on long-term debt 406 391 373 350 330 2,430 2,165 2,183 2,207 2,395 Total governmental activities
expenses 45,381 46,036 52,757 62,792 66,845 69,335 69,592 61,305 76,321 88,024 Program revenues
Governmental activities:
Charges for services:
General government 14 15 13 12 11 4,309 190 84 76 70
Public safety:
Fire 113 230 323 270 193 172 158 155 110 93
Police 573 729 990 1,109 1,182 1,224 1,609 1,403 1,040 1,280 Public Works 1,181 2,771 3,388 905 5,367 7,374 9,583 6,630 4,180 6,330 Community development 5,048 13,492 14,269 12,482 7,422 4,105 14,220 7,610 2,641 1,367 Recreation and community services 2,273 2,458 2,801 2,459 5,899 1,883 482 1,189 1,727 2,282 Operating grants and contributions 615 803 642 543 891 1,051 1,909 4,221 4,155 6,457 Capital grants and contributions 2,055 2,584 2,661 2,844 5,031 4,243 3,820 6,449 4,555 5,285 Total governmental program
revenues 11,872 23,083 25,074 20,625 25,996 24,362 31,971 27,740 18,484 23,163 Net (expense)/revenue
Total governmental activities
net expense (33,509) (22,953) (27,683) (42,168) (40,849) (44,973) (37,621) (33,565) (57,837) (64,862) General revenues and other changes in net position
Governmental activities:
Taxes:
Property taxes 13,987 14,967 16,465 19,193 20,700 22,768 24,417 25,834 28,564 31,511 Sales taxes 10,603 11,092 12,949 16,433 19,041 17,442 20,475 23,680 25,515 21,360 Transient occupancy tax 5,067 5,859 6,094 6,362 6,717 5,450 2,916 4,153 4,932 5,209 Franchise fees * 3,076 2,725 3,670 3,833 3,970 0 4,177 4,732 4,731 4,927 Utility users tax 3,617 3,292 3,527 3,631 3,289 3,480 3,367 3,744 4,219 4,004 Other local taxes 1,488 1,799 1,996 2,346 2,162 2,150 2,497 2,751 2,651 2,505 Motor vehicle in-lieu 18 18 20 24 23 39 36 56 48 59
Use of money and property 93 189 446 900 2,045 2,497 948 (6) 3,567 9,392 Miscellaneous 1,926 2,829 1,206 1,049 686 238 950 866 957 1,146 General revenues 39,875 42,769 46,373 53,770 58,633 54,063 59,783 65,810 75,184 80,112 Loss on disposal of asset - - - - - - (1,036) - - -
Change in net position
governmental activities $6,366 $19,816 $18,690 $11,602 $17,784 $9,090 $21,126 $32,245 $17,347 $15,250 * FY20 Franchise fees were categorized as Charges for services Source: City of Newark Basic Financial Statements
Fiscal year ended June 30,
140
Fund Balances of Governmental Funds
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General Fund
Nonspendable:
Supplies and prepaid assets $ 152 $ 135 $ 145 $ 153 $ 185 $ 163 $ 145 $ 145 $ 155 $ 189 Restricted for:
Public safety - - - - - - - - - 1,712
Due from Successor Redevelopment Agency 404 356 216 184 184 - - - - - Committed:
Pension/OPEB Reserves - - 6,424 7,785 10,789 15,989 6,824 7,672 12,388 12,968 Assigned for:
Measure GG - - - - - - - - 11,631 14,663
Fire side fund - - 440 440 440 440 440 - - -
Equipment replacement 1,305 1,500 2,700 2,900 3,100 5,800 6,000 6,200 6,200 6,200 Waste disposal fund 576 429 429 73 631 41 - - - -
Community development 187 342 513 743 2,793 1,073 - - - - Unassigned 18,904 27,169 23,246 31,666 34,331 39,548 47,223 46,136 34,842 37,176 Total General Fund $ 21,528 $ 29,930 $ 34,111 $ 43,945 $ 52,454 $ 63,054 $ 60,633 $ 60,153 $ 65,216 $ 72,906 All other governmental funds
Restricted for:
Public safety 197 215 295 403 650 4,744 6,053 2,123 2,717 1,901 Community development 15 15 15 92 18,767 27,002 10,766 4,855 4,925 5,356 Transportation facilities - - - - - - 10,832 11,805 12,601 12,887 Housing impact - - - - - - 34,536 40,889 44,593 46,085
Park improvement 730 2,877 5,726 6,044 4,100 747 3,633 5,445 5,806 7,726 Art in public places - - - - - - - - 1,943 1,953
Street improvements 4,456 9,608 12,884 14,559 4,164 16,744 9,973 9,844 12,940 12,240 Environmental programs 400 491 580 645 688 736 798 687 381 76 Health and welfare 37 37 46 35 36 25 25 25 26 318
Debt service 681 680 680 687 700 37,116 6,511 3,624 86 77 Landscape and lighting 738 762 875 981 1,195 1,454 1,714 1,906 2,074 2,215 Other purposes (i.e. PEG, State CASp Fee) - - - 689 777 878 942 649 796 823 Committed:
Community development - General City Plan 576 1,121 1,907 2,242 2,793 3,700 - - - - Assigned to:
Waste disposal fund - - - - - - 19 19 19 -
Art in public places 860 959 1,151 1,451 1,626 1,727 1,849 1,916 - - Capital asset acquisition 9,340 12,770 21,715 21,859 25,105 3,107 - 7,112 16,116 21,846 Unassigned - - - - - (1,692) (12,911) (2,263) (3,104) (3,897) Total all other governmental funds $ 18,029 $ 29,535 $ 45,874 $ 49,687 $ 60,601 $ 96,289 $ 74,739 $ 88,634 $ 101,918 $ 109,606 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,
141
CITY OF NEWARK
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(dollars in thousands)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Revenues
Property taxes $13,988 $14,967 $16,465 $19,193 $20,700 $22,768 $24,417 $25,834 $28,564 $31,511 Other local taxes 23,867 24,655 28,151 33,145 35,179 28,522 29,255 34,328 42,048 38,005 Special assessments 431 460 457 507 529 671 655 639 568 667 Licenses, permits and fees 2,264 4,173 4,149 3,638 3,638 3,241 29,134 20,255 7,633 8,663 Other governmental agencies 3,093 3,345 3,231 3,399 5,486 4,656 5,765 8,259 8,620 11,720 Charges for services 6,352 14,430 15,738 11,960 15,471 14,797 443 1,227 1,727 2,282 Fines and forfeitures 383 529 822 944 966 1,029 378 605 541 509 Use of money and property 93 189 477 900 1,999 2,497 948 (6) 3,567 9,392 Other 1,486 2,982 1,793 1,250 686 238 295 227 389 478
Total revenues 51,955 65,729 71,284 74,935 84,654 78,419 91,290 91,368 93,657 103,227 Expenditures
Current:
General government 6,043 4,643 5,231 5,487 5,774 5,734 6,208 11,678 9,899 11,073 Public safety:
Fire 9,634 9,619 10,373 11,433 10,821 11,152 11,715 12,854 11,831 13,080 Police 15,435 16,741 17,954 19,763 20,970 22,563 33,747 23,796 25,349 26,305 Community development 3,512 4,089 4,922 6,158 1,858 1,743 2,368 3,772 3,526 3,203 Recreation 4,000 4,092 4,786 6,582 5,554 5,094 4,644 5,421 5,341 6,398 Public works 3,663 3,954 3,877 7,522 13,032 9,150 9,608 10,147 11,702 14,549 Subscriptions outlay * - - - - - - - - 765 455
Capital outlay 1,483 1,321 2,844 2,957 5,840 38,645 43,511 7,236 2,287 9,180 Debt service:
Principal repayment - subscriptions * - - - - - - - - 218 348 Interest and fiscal charges - subscriptions * - - - - - - - - 6 31 Principal repayment 589 560 584 542 556 544 525 545 2,345 2,465 Interest and fiscal charges 410 388 369 348 330 3,172 2,509 2,490 2,605 2,356 Total expenditures 44,770 45,409 50,940 60,791 64,736 97,798 114,835 77,939 75,876 89,441 Excess (deficiency) of revenues
over (under) expenditures 7,185 20,321 20,344 14,144 19,918 (19,378) (23,545) 13,429 17,781 13,786 Other financing sources (uses)
Other financing source (subscriptions) * - - - - - - - - 765 393 Other financing source (loan proceeds) - - - - - - - - - 1,199 Transfers in 4,065 3,773 5,836 6,544 6,402 26,442 28,565 22,880 18,225 16,291 Transfers (out) (4,141) (3,910) (6,201) (6,909) (6,650) (26,691) (28,578) (22,880) (18,225) (16,291) Debt refunding - - - - - 63,345 - - - -
Bond premium less payment to refunded bond escrow agent - - - - - 2,571 - - - - Capital lease proceeds - - - - - - - - - -
Total other financing sources (uses) (76) (138) (366) (366) (249) 65,667 (13) 0 765.26 1,593 Net change in fund balances $7,109 $20,183 $19,978 $13,779 $19,669 $46,289 ($23,558) $13,429 $18,546 $15,378 Debt service as a percentage of
noncapital expenditures 2.31% 2.15% 1.98% 1.54% 1.50% 6.28% 4.25% 4.29% 7.11% 6.51% * FY23 GASB 96 Implementation for Subscription Based Information Technology Arrangements (SBITAs) Source: City of Newark Basic Financial Statements
Fiscal year ended June 30,
142
Real Property Total Real Total
Fiscal Residential Commercial Industrial Secured Unsecured Total Direct Year Property Property Property Other Property Property Assessed (a) Tax Rate 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% 2024 9,519,246,056 1,102,911,233 2,320,355,691 395,183,836 13,337,696,816 1,164,138,732 14,501,835,548 0.16790%
CITY OF NEWARK
Assessed Value of Taxable Property
Last Ten Fiscal Years
Source: Alameda County Assessor 2014/15 - 2023/24 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
$16,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Millions
Unsecured Property Total Real Secured Property
143
CITY OF NEWARK
Property Tax Rates
All Overlapping Governments
Last Ten Fiscal Years
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 2024 1.0000 0.0061 0.0134 0.0088 0.0057 0.0707 0.0276 0.0162 1.1485 https://acgov.org/auditor/tax/districtRpts23/51427CAFunds.txt Total
Source: Alameda County Assessor 2014/15 - 2023/24 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
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
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
144
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
Meta Platforms INC $403,089,339 1 2.78%
BMR Gateway Boulevard LLC 402,381,464 2 2.77% $201,097,812 2 3.08% Silicon Valley Gateway Technology Center 175,842,100 3 1.21% JMB Newpark Associates & GGP 156,259,023 4 1.08% 77,419,249 3 1.19% T5 Silicon Valley LP 154,469,645 5 1.07%
Terreno Morton LLC 138,734,253 6 0.96%
Cherry Logistics Commerce Center ILP LLC 138,000,000 7 0.95% DCT Cherry Street California LP 105,602,217 8 0.73% 38,000,000 9 0.58% Lennar Homes California INC 104,571,529 9 0.72%
IPT East Bay DC LP 91,793,957 10 0.63%
Apple Computer INC 474,695,447 1 7.28%
Leslie Salt Company 62,852,937 4 0.96%
Sycamore Bay LLC 54,686,127 5 0.84%
Safety Kleen of CA INC 49,954,282 6 0.77%
Icon Owner Pool 3 West LLC 41,906,123 7 0.64%
SI XVIII LLC 40,602,909 8 0.62%
LBA Met Partners I Company IX LLC 37,500,000 10 0.57%
Subtotal $1,870,743,527 12.90% $1,078,714,886 16.53%
Total Net Assessed Valuation:
Fiscal Year 2023/24 $1,870,743,527
Fiscal Year 2014/15 $1,078,714,886
2023/24 2014/15
Source: Alameda County Assessor 2014/15 - 2023/24 Combined Tax Rolls. HDL 145
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 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% 2024 22,249,402 29,978,514 134.7385% 724,785 30,703,299 137.9961% 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
$32.0
$34.0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Millions
Tax Levy Tax Collections
146
CITY OF NEWARK
Taxable Sales by Category
Last Ten Calendar Years
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Apparel Stores $52.1 $53.4 $60.7 $61.6 $60.5 $51.6 $26.0 $33.6 $28.3 $24.8 General Merchandise 66.5 64.1 58.6 51.7 45.0 31.4 17.6 25.4 22.8 36.9 Food Stores 22.5 20.2 18.0 18.0 18.0 18.2 19.7 18.7 20.5 21.2 Eating and Drinking Places 95.4 104.1 113.4 123.3 129.2 137.8 90.0 123.1 141.1 148.1 Building Materials 106.9 126.1 129.9 134.8 146.9 151.6 173.7 219.7 265.7 244.3 Auto Dealers and Supplies 229.9 266.7 266.6 261.4 260.2 248.2 228.0 306.7 524.5 395.2 Service Stations 51.8 49.2 43.6 49.6 55.3 56.1 38.7 50.7 64.7 60.3 Other Retail Stores 176.0 179.1 180.7 179.5 157.3 55.6 39.5 56.2 49.9 41.6 All Other Outlets 274.5 325.7 340.1 383.4 480.1 623.9 737.9 740.8 841.1 765.6 Total 1,075.6$ 1,188.6$ 1,211.6$ 1,263.3$ 1,352.5$ 1,374.4$ 1,371.1$ 1,574.9$ 1,958.6$ 1,738.0$ 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
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Apparel Stores General Merchandise
Food Stores Eating and Drinking Places
Building Materials Auto Dealers and Supplies
Service Stations Other Retail Stores
147
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 Energy Subscription Outstanding of Personal Per Year Refinancing Premium Obligations Loan Software Debt Income (a) Capita (a) 2015 $ 10,045,261 $ - $ 395,588 $ - $ - $ 10,440,849 0.78% 342 2016 9,562,962 - 276,625 0 0 9,839,587 0.71% 317
2017 9,059,605 - 153,695 0 0 9,213,300 0.65% 294
2018 8,540,948 - 87,084 0 0 8,628,032 0.56% 267
2019 8,007,711 - 19,095 0 0 8,026,806 0.49% 239
2020 62,820,000 9,730,628 0 0 0 72,550,628 4.01% 1,963
2021 62,295,000 9,289,589 1,401,498 0 0 72,986,087 3.66% 1,789 2022 61,750,000 8,848,550 1,088,011 0 0 71,686,561 3.16% 1,492 2023 59,405,000 8,407,511 797,866 0 547,218 69,157,595 2.70% 1,280 2024 56,940,000 7,966,472 496,698 1,199,240 592,849 67,195,259 2.27% 1,058 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. $10,440,849 9,839,587 9,213,300 8,628,032 8,026,806
72,550,628 72,986,087 71,686,561
69,157,595 67,195,259
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Total Outstanding Debt
148
CITY OF NEWARK
Direct and Overlapping Governmental Activities Debt
June 30, 2024
Debt Oustanding
Percentage
Applicable (1)
Share of
Overlapping Debt
OVERLAPPING TAX AND ASSESSMENT DEBT
Alameda County $497,295,000 3.617% $17,987,160
Bay Area Rapid Transit District 2,445,575,000 1.436% 35,118,457 East Bay Regional Park District 144,520,000 2.257% 3,261,816 Ohlone Community College District 392,220,000 16.542% 64,881,032 Newark Unified School District 63,739,625 100.000% 63,739,625 Washington Township Heathcare District 462,295,000 14.262% 65,932,513 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $ 250,920,604
DIRECT AND OVERLAPPING GENERAL FUND DEBT
Alameda County General Fund Obligations $656,746,000 3.617% $23,754,503 Alameda-Contra Costa Transit District Certificates of Participation 10,420,000 4.257% 443,579 Ohlone Community College District General Fund Obligations 200,000,000 16.542% 33,084,000 City of Newark General Fund Obligations - Direct Debt 56,940,000 100.000% 56,940,000 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 114,222,082 TOTAL DIRECT DEBT 67,195,259 (3)
TOTAL OVERLAPPING DEBT 297,947,427
COMBINED TOTAL DEBT $365,142,686 (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, and mortgage revenue. (3) Changed from source to reflect the amount shown in the Notes to the Financial Statements. 149
CITY OF NEWARK
Legal Bonded Debt Margin Information
Assessed valuation:
Secured property assessed value,
net of exempt real property $14,501,835,548
Bonded debt limit: 3.75% of assessed value (a) 543,818,833 (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 56,940,000
Less: Certificates of participation and bank
refinancing not subject to limit 56,940,000
Amount of debt subject to limit -
Legal bonded debt margin $543,818,833
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
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%
2024 135,954,708 - 135,954,708 0.00%
Source: Alameda County Assessor 2014/15 - 2023/24 Combined Tax Rolls June 30, 2024
150
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 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%
2023 46,635 2,962,958 63,535 3.1% 1,641,869 2.84%
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
$3,500
Thousands
Total Personal Income
151
CITY OF NEWARK
Principal Employers
Current Year and Nine Years Prior
Percentage Percentage
Number of of Total City Number of of Total City
Employer Employees Rank Employment Employees (2) Rank Employment Lucid Motors 2,491 9.85%
WordPac* 521 2.06% 400 3 1.7%
Amazon Fulfillment Center 490 1.94%
Newark Unified School District 471 1.86% 700 1 3.1%
City of Newark 296 1.17% 181 9 0.8%
RSM - Risk Management Solutions* 282 1.11% 270 5 1.2%
Nordstrom Distribution Center* 236 0.93%
KNT Manufacturing 215 0.85%
Cargill Salt 213 0.84% 222 8 1.0%
Smart Modular Technologies 140 0.55% 226 6 1.0%
Logitech** 689 2 3.0%
Full Bloom Baking Company 280 4 1.2%
Morpho Detection 225 7 1.0%
Valassis (formerly ADVO) 96 10 0.4%
Total 5,355 21.17% 3,289 14.4%
Total City Employment (1) 25,300 22,900
*No response from business for FY23 count, previous year's count applied. ** Logitech - Moved to San Jose, as of July 2023.
The following Employers have not responded to
Avenu's employee count inquires:
1. MiTAC Information Systems & MiTAC Computing Technology
2. Cepheid Manufacturer
3. Costco Wholesale Store - Declined to participate.
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. 2023-24 2014-15
152
CITY OF NEWARK
Last Ten Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function/Program:
General government 24.24 25.67 25.35 24.75 28.37 31.48 24.24 25.33 31.66 28.50 Public safety
Police 79.14 78.10 72.70 81.01 83.66 84.42 53.97 77.71 98.83 89.00 Streets and parks 18.57 18.23 18.65 21.50 19.70 20.48 19.88 21.41 51.70 52.00 Community development 16.52 16.94 23.80 23.73 25.65 28.04 26.18 22.74 11.20 16.50 Recreation 41.45 38.22 41.62 34.59 39.54 36.75 21.73 38.06 45.31 110.25 Total 179.92 177.16 182.12 185.58 196.92 201.17 146.00 185.25 238.70 296.25 Source: City of Newark
Full-Time Equivalent City Government Employees by Function/Program Fiscal Year
0.00 50.00
100.00
150.00
200.00
250.00
300.00
Recreation Community development Streets and parks Police General government 153
CITY OF NEWARK
Operating Indicators by Function/Program
Last Six Fiscal Years
2019 2020(1) 2021(2) 2022(3) 2023 2024
Function/Program
Public safety:
Fire
Fire calls for service 3,239 3,423 3,550 3,772 4,069 1,100 Primary fire inspections conducted 1,797 1,940 2,291 2,494 2,029 919 Environmental safety inspections conducted 1,115 177 157 825 869 NA** Police
Communication center calls answered 42,556 41,749 20,399 46,880 34,260 43,960 Police calls for service 42,556 41,749 20,399 23,656 34,260 34,544 Law violations
Part I crimes* 1,784 1,779 1,901 2,358 2,062 -
Group A Offenses - - - - - 3,103
Traffic violations 3,368 2,013 1,308 1,244 1,469 643
Parking violations 775 1,526 981 995 702 1,429
Public works:
Street resurfacing (miles) 4 4 1 8 8 5
Street lights repaired 482 374 548 594 677 472
Recreation:
Recreation class/program participants 187,088 70,132 38,110 48,373 166,046 241,905 Recreation facilities rentals 1,559 1,112 692 1,862 2,185 4,790 Silliman Activity Center use 101,239 66,265 11,962 44,962 56,714 84,335 Miscellaneous:
Library:
Library visitors 188,060 104,695 5,753 73,442 105,215 145,954 Library materials circulated 246,803 159,662 42,724 212,066 269,101 279,070 *2024 no longer report “Part 1 Crimes” under uniform crime reporting. Now reporting Group A Offenses **2024 information was not received in time for inclusion in this report Source: City of Newark
Alameda County Library
(3) 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). (2) 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. (1) 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 impacts of COVID-19 Pandemic.
Fiscal Year
154
CITY OF NEWARK
Capital Asset Statistics by Function/Program
Last Six Fiscal Years
2019 2020 2021 2022 2023 2024
Function/Program
Public works:
Miles of streets 105 105 105 105 109 114
Street lights 2,849 2,849 2,849 2,849 3,001 3,106
Traffic signals 44 44 47 47 47 49
Recreation:
Community services:
City parks 14 15 15 15 15 15
City parks acreage 124 127 127 127 127 127
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
155
Item H. 1.
DATE 01/23/2025
TO Honorable Mayor and City Council Members
FROM Sheila Harrington, City Clerk
SUBJECT City Council consideration of City Council Summer Recess and consideration of potential resolutions amending City Council regular meeting schedule and summer recess
Since the early 1990s, the Newark City Council has taken an August recess to give its members time to take a vacation and rejuvenate. To do so, the City Council has canceled both of the regular meetings during the month of August. The 2025 City Council meeting schedule and August recess was approved on December 12, 2024, via resolutions.
At the January 9, 2025, City Council meeting, Council Member Grindall requested that the City Council agendize for future Council discussion the possibility of taking a July recess instead of an August recess to align with the school year calendar. The Newark Unified School District's current school year will end on May 29, 2025. The new school year is anticipated to start around the second week of August.
There are a total of eleven assignments that the Mayor and Council Members are appointed to on behalf of the City. The three assignments that meet monthly have an August Recess; they include: Alameda County Transportation Commission, Stopwaste, and Ava Community Energy. Five of the assignments meet quarterly, with three of them holding July meetings: Alameda County Library Advisory Commission, Tri-City Elder Coalition, and Senior Advisory Committee. The remainder of the assignments meet annually and are not impacted by an August or July recess.
The primary concern when canceling City Council meetings is the impact it has on future meeting agendas. Planning cancelations early allows staff to mitigate this impact by appropriately scheduling items for Council consideration and provide notice to the public in advance. Cancelation of meetings in July or August would not preclude calling a special or emergency meeting on any given date, if the need for a meeting was identified. It would also not preclude the Mayor or Council Members from attending Committee Meetings during a July or August recess.
Following discussion, should the City Council seek to change the regular meeting schedule and move the Summer Recess from August to July, staff has prepared resolutions for the Council to adopt. The proposed resolutions would supersede resolutions for the Council to adopt. The proposed resolutions would supersede Resolutions No. 11,718 and No. 11,719, which established the 2025 City Council regular meeting schedule and the 2025 Summer Recess. If the City Council decides to maintain the August recess, no action is needed.
Attachments
Resolution No. 11719 Recess
Resolution No. 11718 Dates
Council Assignments Meetings
Resolution July Recess
Resolution Meeting Dates July recess
RESOLUTION NO. 11, 719
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWARK AUTHORIZING THE CITY MANAGER, OR HIS
DESIGNEE, TO ACT UPON CERTAIN ADMINISTRATIVE
MATTERS ON BEHALF OF THE CITY OF NEWARK
DURING THE CITY COUNCIL SUMMER MEETING RECESS
AUGUST 2025
WHEREAS, the City Council of the City of Newark will be in recess during the month of August 2025; and
WHEREAS, during said City Council recess, certain administrative matters require action.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Newark hereby authorizes the City Manager, or his authorized designee, to act upon the following certain administrative matters during the City Council' smeeting recess August 2025, which should not be deferred until the next regularly scheduled meeting of the City Council on September 11, 2025:
Acceptance of completion of work on City projects
Approval of agreements as needed for budgeted projects and services Approval ofplans and specifications
Award of contracts for budgeted projects
Denial of claims
BE IT FURTHER RESOLVED that all actions taken by the City Manager, or his authorized designee, pursuant to this resolution, shall be reported to the City Council after the recess.
I HEREBY CERTIFY the foregoing resolution was introduced at a regular meeting ofthe
City Council of the City of Newark held on December 12, 2024, by Council Member Grindall who moved its adoption and passage, which motion was carried after being duly seconded, and passed by the following vote:
AYES: Council Members Little, Catancio, Grindall, Jorgens, and Mayor Hannon NOES: None
ABSENT: None
SECONDED: Council Member Catancio
AT
SHEILA HARRINGTON"
City Clerk
APPROVED AS TO FORM:
KRISTOPHER J. KOKOTAYLO
City Attorney
Resolution No. 11, 719 2
APPROVED:
MICEAEL K. HANNON
Mayor
RESOLUTION NO. 11, 718
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWARK ESTABLISHING THE DATES AND TIMES FOR
REGULAR CITY COUNCIL MEETINGS FOR THE CALENDAR
YEAR 2025
WHEREAS, the City Council ofthe City ofNewark adopted Ordinance No. 523 amending the Newark Municipal Code to provide that the City Council shall establish dates and times for regular City Council Meetings by resolution; and
WHEREAS, the City Council desires to adopt a resolution establishing dates and times for regular City Council Meetings for Calendar Year 2025.
NOW, THEREFORE, BE IT RESOLVED by the City Council ofthe City ofNewark that the regular City Council Meetings for Calendar Year 2025 shall be on the dates and times specified in this Resolution.
2025 Regular meeting dates, start time 7: 00 p. m. from January to December:
January 9, 2025
January 23, 2025
February 13, 2025
February 27, 2025
March 13, 2025
March 27, 2025
April 10, 2025
April 24, 2025
May 8, 2025
May 22, 2025
2025 meetings canceled
August Recess August 8 and 22, 2025
Thanksgiving Holiday November 27, 2025
Winter Furlough December 25, 2025
June 12, 2025
June 26, 2025
July 10, 2025
July 24, 2025
September 11, 2025
September 25, 2025
October 9, 2025
October 23, 2025
November 13, 2025
December 11, 2025
510.578.4266 [email protected] www.newark.org facebook.com/cityofnewarkca City of Newark
City Clerk’s Office
37101 Newark Boulevard
Newark, CA 94560
2025 City Council Assignments:
Committee Name Meeting Schedule Del/Alt
Alameda County Fire
Advisory Commission
Quarterly 3rd Thur. of
Feb., May, Sept., &
Nov.
Del Little
Alt Catancio
Alameda County
Library Advisory
Commission
Quarterly 1st Wed. of
Jan., April, July & Oct.
at 7:00pm.
Del Grindall
Alt Little
Alameda County
Transportation
Commission
Monthly 4th Thursday
at 2:00pm.
August Recess
Del Hannon
Alt Grindall
Alameda County
Waste Management
Authority
Board/Stopwaste.org
Monthly 4th Weds
at 3:00pm.
August Recess
Del Jorgens
Alt Hannon
Association of Bay
Area Governments
(ABAG)
Annually June
(General Assembly)
Del Hannon
Alt Grindall
Ava Community
Energy
Monthly 3rd Wed.
at 6:00pm.
August Recess
Del Catancio
Alt Jorgens
Community
Development
Advisory Committee
Annually evening
meeting typically in
Winter/Jan.
Del Hannon
Del Grindall
Newark City Council -
Board of Education
Liaison Committee
Quarterly 4th Mon. of
Jan., April, June, &
Oct. at 6:00pm.
Del Hannon
Del Jorgens
Tri-City Elder
Coalition
Quarterly Jan, April,
July, Oct 12:00pm
Del Little
Senior Advisory
Committee
Quarterly 3rd Thur.
Jan., April, July, Oct.
at 9:30am.
Del Hannon
Southern Alameda
County Geographic
Information System
Authority
Annually in May at
6:00 pm
Del Catancio
Alt Hannon
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWARK AUTHORIZING THE CITY MANAGER, OR HIS
DESIGNEE, TO ACT UPON CERTAIN ADMINISTRATIVE
MATTERS ON BEHALF OF THE CITY OF NEWARK
DURING THE CITY COUNCIL SUMMER MEETING RECESS
2025
WHEREAS, the City Council of the City of Newark will be in recess during the month of July 2025; and
WHEREAS, during said City Council recess, certain administrative matters require action.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Newark hereby authorizes the City Manager, or his authorized designee, to act upon the following certain administrative matters during the City Council’s meeting recess July 2025, which should not be deferred until the next regularly scheduled meeting of the City Council on September 11, 2025:
Acceptance of completion of work on City projects
Approval of agreements as needed for budgeted projects and services Approval of plans and specifications
Award of contracts for budgeted projects
Denial of claims
BE IT FURTHER RESOLVED that all actions taken by the City Manager, or his authorized designee, pursuant to this resolution, shall be reported to the City Council after the recess.
BE IT FURTHER RESOLVED that this resolution supersedes Resolution No. 11,719.
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWARK ESTABLISHING THE DATES AND TIMES FOR
REGULAR CITY COUNCIL MEETINGS FOR THE
CALENDAR YEAR 2025
WHEREAS, the City Council of the City of Newark adopted Ordinance No. 523 amending the Newark Municipal Code to provide that the City Council shall establish dates and times for regular City Council Meetings by resolution; and WHEREAS, the City Council desires to adopt a resolution establishing dates and times for regular City Council Meetings for Calendar Year 2025.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newark that the regular City Council Meetings for Calendar Year 2025 shall be on the dates and times specified in this Resolution.
2025 Regular meeting dates, start time 7:00 p.m. from January to December:
January 9, 2025 June 12, 2025
January 23, 2025 June 26, 2025
February 13, 2025 August 14, 2025
February 27, 2025 August 28, 2025
March 13, 2025 September 11, 2025
March 27, 2025 September 25, 2025
April 10, 2025 October 9, 2025
April 24, 2025 October 23, 2025
May 8, 2025 November 13, 2025
May 22, 2025 December 11, 2025
2025 meetings canceled
July Recess July 10 and 24, 2025
Thanksgiving Holiday November 27, 2025
Winter Furlough December 25, 2025
BE IT FURTHER RESOLVED, that this resolution supersedes Resolution No. 11718.