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.
40 ~
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2025
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, compensatory time, and sick leave (based on estimates of expected use from the last three fiscal years). The City’s liability for compensated absences is recorded at the Entity-wide level in the Statement of Net Position for Governmental Activities.
J. Subscription-Based Information Technology Arrangements The City is a subscriber for non-cancellable subscriptions of information technology services and 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 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 determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) lease term, and (3) subscription payments.
41 ~
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2025
• The City 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 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 is reasonably certain to exercise.
The City 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. 42 ~
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2025
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 No. 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 No. 54 established Fund Balance classifications based largely upon the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. The Fund Financial Statements consist of Non-spendable, Restricted, Committed, Assigned and Unassigned amounts as described below:
Non-spendable Fund Balance – includes amounts that are (a) not in spendable form, or (b) legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash, for example, inventories, prepaid amounts, and long-term notes receivable.
Restricted Fund Balance – includes amounts that can be spent only for the specific purposes stipulated by external resource providers, constitutionally or through enabling legislation. The restriction may effectively be changed or lifted only with the consent of resource providers.
Committed Fund Balance – includes amounts that can only be used for the specific purposes determined by a formal action of the City’s highest level of decision-making authority, the City Council.
Commitments may be changed or lifted only by the City Council taking the same formal action that imposed the constraint originally.
43 ~
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2025
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. 44 ~
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2025
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, 2025:
GASB Statement No. 101, Compensated Absences
The objective of this Statement is to update the recognition and measurement guidance for compensated absences, resulting in a unified model that more appropriately reflects when a government incurs an obligation. The model will also result in a more robust estimate of the amount of compensated absences that a government will pay or settle by establishing guidance for measuring a liability for leave that has not been used, generally using an employee’s pay rate as of the date of the financial statements. The City’s implementation of this statement included a review of sick leave and three-year look back to estimate a reasonable sick leave liability, which was then added to the current calculation of general leave, compensatory time and vacation compensated absences. The impact of the change in accounting principle was immaterial to the City’s financial statements, and as such no restatement of beginning net position was deemed necessary.
GASB Statement No. 102, Certain Risk Disclosures
The objective of this Statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints. This Statement requires a government to assess whether a concentration or constraint makes the primary government reporting unit or other reporting units that report a liability for revenue debt vulnerable to the risk of a substantial impact. Additionally, this Statement requires a government to assess whether an event or events associated with a concentration or constraint that could cause the substantial impact has occurred, have begun to occur or are more like than not to begin to occur within 12 months as of the date the financial statements are issues. The City is not aware of any substantial risks to disclose.
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.
45 ~
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2025
The following is a summary of cash and investments at June 30, 2025:
At June 30, 2025, the City’s pooled cash and investments, including restricted funds consisted of the following:
A. Cash deposits
The carrying amount of the City’s cash deposit was $16,674,494 at June 30, 2025. Bank balances before reconciling items were $17,130,053 the total amount of which was insured and/or collateralized with securities held by pledging financial institutions in the City’s name discussed below.
Government-Wide
Statement of Net
Position
Governmental
Activities
Fiduciary Funds
Statement of Net
Position Total
Cash and investments $ 197,527,493 $ 2,663,605 $ 200,191,098 Restricted cash and investments 12,708,956 - 12,708,956 Total $ 210,236,449 $ 2,663,605 $ 212,900,054
City Treasury:
Deposits:
Cash on hand $6,100
Deposits with banks 16,674,494
Total deposits 16,680,594
Investments:
California Local Agency Investment Fund 51,122,051
California Asset Management Program 132,388,453
Total investments 183,510,504
Total City Treasury 200,191,098
Cash and Investments with Fiscal Agents:
Money market funds 14,834
PARS Section 115 Trust 12,694,122
Total Restricted Cash and Investments 12,708,956
Total Cash and Investments $212,900,054
46 ~
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2025
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 fair value of pledged securities must equal at least 110 percent of the City’s cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150 percent of the City’s total cash deposits. The City may, and has waived collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation.
The City pooled cash and investments of all funds, excluding restricted funds required to be held by fiscal agents under the terms of the City’s debt agreements. Investment income earned on pooled cash investment is allocated on a quarterly basis to the various funds based on the quarter-end cash and investment balances. Interest earnings on restricted cash and investments are credited directly to the related fund.
B. Investments
Under the provisions of the City’s investment policy, and in accordance with California Government Code, the table below identifies the City’s permitted investments. This table does not address investments held in the PARS Section 115 pension trust (see item F).
Under the provisions of bond indentures, the following are authorized investment types for investments held by fiscal agents:
Maximum Minimum Credit
Maximum Percentage of Quality
Authorized Investment Type Maturity Portfolio Requirements California Local Agency Investment Fund None None None
California Asset Management Program None None None
Securities of the U.S. Government 5 years None None
Commercial Paper 270 days None A-1
Banker Acceptances 180 days 40% None
Collateralized Certificates of Deposit 5 years 50% None Negotiable Certificates of Deposit 5 years 30% None
Repurchase Agreements 1 year 50% None
Reverse Repurchase Agreements 92 days 50% None
47 ~
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2025
C. Risk Disclosures
Interest Risk – Interest rate risk is the fluctuation in fair value of investment due to changes in interest rates. The City’s exposure to losses caused by rising interest rates is minimized by limiting the average maturity of the City’s investments to not exceed five years.
The City had the following investment maturities at June 30, 2025:
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.
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 Remaining Maturity
(in Months)
Investment Type Totals 12 Months or Less
LAIF $51,122,051 $51,122,051
CAMP 132,388,453 132,388,453
Money market funds 14,834 14,834
PARS Section 115 Trust 12,694,122 12,694,122
$196,219,460 $196,219,460
48 ~
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2025
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, 2025, 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, 2025, the City had $51,122,051 invested in LAIF, which had invested 3.81% of the pool investment funds in Structured Notes and Asset-Backed Securities. The City reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share. The fair value of LAIF was calculated by applying a factor of 1.001198310 to the total investments held by LAIF.
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. Public Agency Retirement Services – Section 115 Pension Trust In October 2024, the City Council authorized the establishment of a Section Pension Trust with the Public Agency Retirement Services (PARS). The trust is an irrevocable trust and is used to set aside funds for future pension contributions. In January 2025, the City contributed $12,000,000 as an initial contribution to the trust and selected the Target Investment Balanced Strategy as the investment selection. As of June 30, 2025, the fair value of the trust was $12,694,122.
49 ~
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2025
G. 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), PARS Pension Section 115 Trust, 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, 2025, were as follows (excluding transfers between the Internal Service Funds):
• The transfer of $389,665 from the General Fund to the Capital Projects Fund was to add funding for the Newark Resource Center.
• The transfer of $4,795,824 from the General Fund to the Public Financing Authority reflects funding from Measure GG for the annual debt service payment of the 2019 COP.
Capital Public State
General Projects Financing Gas Tax Equipment Building
Transfers Out Fund Fund Authority Fund Maintenance Maintenance TOTAL General Fund $ - $ 389,665 $ 4,795,824 $ - $ - $ - $ 5,185,489 Capital Projects Fund 7,000,000 - - - - - 7,000,000
ARPA 985,583 73,688 - - - - 1,059,271
Public Financing Authority 62,253 - - - - - 62,253
Misc. State Grants - 149,037 - - - - 149,037
-
Non-Major Fund:
BSCC 250,000 - - - - - 250,000
FEMA 101,624 - - 27,308 2,778 1,984 133,694
$ 8,399,460 $ 612,390 $ 4,795,824 $ 27,308 $ 2,778 $ 1,984 $ 13,839,744 Transfers In
50 ~
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2025
• The transfer of $7,000,000 million from the Capital Projects Fund to the General Fund was for purposes of setting up the new Maintenance Reserve.
• The transfers of $985,583 from the American Rescue Plan Act (ARPA) Fund to the General Fund was largely to fund previously frozen positions as approved by the City Council and the transfer of $73,688 from ARPA to the Capital Projects Fund was to fund expenditures related for the Newark Resource Center.
• The transfer of $62,253 from the Public Financing Authority to the General Fund was to remit residual interest from old COP lease payment funds.
• The transfer of $149,037 from Miscellaneous State Grants to the Capital Projects Fund includes $55,435 of AB179 funding for project reimbursements related to the Quiet Zones Project (#1357) and includes $93,603 of funding from the State to support the Broadband Master Plan (Project #1404). • The transfer of $250,000 from the Board of State and Community Corrections (BSCC) to the General Fund includes $150,000 of AB74 funding for a Crime Analyst and $100,000 to support police department technology needs.
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 $3,575,790
Non-Major Funds 127,243
Total $3,703,033
Due from
51 ~
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2025
4. CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2025 was as follows:
Balance
June 30, 2024
Additions Deletions Adjustment Transfers Balance
June 30, 2025
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 9,223,039 3,345,350 - - (3,382,702) 9,185,687 Total nondepreciable assets 53,261,988 3,345,350 - - (3,382,702) 53,224,636 Depreciable assets
Building and land improvements 128,890,027 1,420,778 - - 28,776 130,339,581 Infrastructure:
Streets 84,145,986 1,647,773 - - 1,732,202 87,525,961
Sidewalks, curbs, gutters, and walls 19,826,158 - - - - 19,826,158 Street lights 3,249,607 - - - 1,598,265 4,847,872
Traffic signals 3,936,783 - - - - 3,936,783
Equipment 18,806,581 2,321,875 (1,505,647) (265,000) 23,459 19,381,268 Subscription assets 1,220,156 1,294,705 (335,496) - - 2,179,365 Total depreciable assets 260,075,298 6,685,131 (1,841,143) (265,000) 3,382,702 268,036,988 Accumulated depreciation/amortization
Building and land improvements 23,790,768 2,468,443 - - - 26,259,211 Infrastructure:
Streets 31,818,340 2,313,216 - - - 34,131,556
Sidewalks, curbs, gutters, and walls 7,348,133 498,307 - - - 7,846,440 Street lights 2,201,380 236,712 - - - 2,438,092
Traffic signals 3,870,557 13,726 - - - 3,884,283
Equipment 12,217,224 1,228,384 (1,500,303) (265,000) - 11,680,305 Subscription assets amortization 606,163 524,225 (335,496) - - 794,892 Total accumulated depreciation/amort. 81,852,565 7,283,013 (1,835,799) (265,000) - 87,034,779 Net depreciable assets 178,222,733 (597,882) (5,344) - 3,382,702 181,002,209 TOTAL ASSETS $ 231,484,721 2,747,468$ $ (5,344) $ - $ - $ 234,226,845 52 ~
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2025
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 $ 1,596,614
Public Safety 205,593
Public Works 3,106,796
Community Development 38,135
Recreation and Community Services 927,470
Internal Service Funds 884,180
Subscription Amortization 524,225
Total Depreciation/Amortization $ 7,283,013
DESCRIPTION AMOUNT
Cedar Community Apartments $ 6,000,000
Thornton Avenue Apartments 3,727,515
Timber Street (Senior Housing) 2,765,000
$ 12,492,515
53 ~
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2025
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, 2025, $6 million has been spent on project costs, representing the housing loan receivable payable by Allied Housing, Inc., with an additional $360,219 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, 2025, $3.7 million has been spent on project costs, representing the housing loan receivable payable by Thornton LP, with an additional $226,879 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, 2025, $2.8 million has been spent on project costs, representing the housing loan receivable payable by Timber Street Investors, LP with an additional $139,038 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, 2025, the City had 15 active subscriptions, with a total combined value of $1,520,371 for subscription liability. The combined value of the right to use asset is $2,179,365 with accumulated amortization of $794,892. The subscription activities tables are listed on the next page. 54 ~
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2025
Information on the subscription assets as of June 30, 2025 are as follows:
Asset Class
Subscription Asset
Value
Accumulated
Amortization
Software $2,179,365 $794,892
Total Subscriptions $2,179,365 $794,892
Software Subscription asset activity for the year ended June 30, 2025 was as follows:
Balance as of Balance as of
Governmental Activities: June 30, 2024 Additions Reductions June 30, 2025 Total Software Subscription Assets $ 1,220,156 $ 1,294,705 $ (335,496) $ 2,179,365 Total Subscription Accumulated Amortization (606,163) (524,225) 335,496 (794,892) Total Governmental Subscription Assets, Net $ 613,993 $ 770,480 $ - $ 1,384,473 Software Subscription Liability activity for the year ended June 30, 2025 was as follows:
Governmental Activities:
Balance as of
June 30, 2024 Additions Reductions
Balance as of
June 30, 2025
Amounts
Due Within
One Year
Total Software Subscription $ 602,103 1,294,705$ $ 376,437 $ 1,520,371 $ 413,214 Fiscal Year Principal Payments Interest Payments Total Payments 2026 $413,214 $30,869 $444,083
2027 370,808 26,307 397,115
2028 240,251 17,176 257,427
2029 245,194 11,564 256,758
2030 250,904 5,849 256,753
$1,520,371 $91,765 $1,612,136
Principal and Interest Requirements to Maturity
Governmental Activities
55 ~
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2025
7. LONG-TERM DEBT
The City’s long-term debt is comprised of the following at June 30, 2025:
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 be immediately due and payable. However, the borrower at its option may terminate the agreement and re-lease all or any portion of the property.
Financed Purchased Obligations
On 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 ofthe fire pumperreverts to the City at the end ofthe agreement period. On November 22, 2024, the City entered into a non-cancelable agreement in the amount of $1,500,000 with PNC Equipment Finance, LLC to acquire a fire engine. Annual payments are due on November 22 until 2029.
Ownership of the fire engine revers to the City at the end of the agreement period.
Governmental Activities:
Balance
June 30, 2024 Additions Retirements Adjustment
Balance
June 30, 2025
Amounts
Due Within
One Year
Direct Borrowings:
Certificates of Participation 2019 $ 56,940,000 $ - $ (2,585,000) $ - $ 54,355,000 2,720,000$ $63,345,000; 3-5% due 2042
2019 COPs Premium 7,966,472 - (441,039) - 7,525,433 -
Financed purchased obligations:
Equipment lease, due 2029 496,698 - (93,182) - 403,516 96,164 Equipment lease, due 2030 - 1,500,000 - - 1,500,000 272,603 Loans:
California Energy Commission Loan, due 2033 1,199,240 399,025 - - 1,598,265 178,715 Subscription software 602,103 1,294,705 (367,183) (9,254) 1,520,371 413,214 Total $ 67,204,513 $ 3,193,730 $ (3,486,404) $ (9,254) $ 66,902,585 3,680,696$ 56 ~
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2025
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, 2025, the loan funds totaled $1,598,265 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:
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, 2025, the total value of the subscription liability was $1,520,371, and the total combined value of the short-term subscription liability is $413,214.
The City is required to make monthly principal and interest payments ranging from $0 to $100,000. The subscriptions have interest rates ranging from 2.33% to 4.176%.
Principal Interest Total
Year Ending
June 30,
2026 $ 3,267,482 $ 2,216,985 $ 5,484,467
2027 3,436,683 2,046,783 5,483,466
2028 3,600,484 1,885,233 5,485,717
2029 3,405,123 1,715,594 5,120,717
2030 3,456,467 1,588,714 5,045,181
2031-2035 15,810,542 5,720,118 21,530,660
2036-2040 17,230,000 2,762,800 19,992,800
2041-2042 7,650,000 345,900 7,995,900
Total $ 57,856,781 $ 18,282,127 $ 76,138,908
Governmental Activities
57 ~
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2025
8. COMPENSATED ABSENCES
The City’s compensated absences include accrued vacation, general leave, compensatory time, and sick leave. The value of unpaid leave is recorded as a liability of the City on the entity-wide statement of net position.
Changes in compensated absences for the fiscal year ended June 30, 2025 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, 2024 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 Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plan are established by State statute and Local Government resolution. All safety qualified permanent and probationary employees are eligible to participate in the City’s Safety Plan, a cost-sharing multipleemployer defined benefit pension plan, administered by CalPERS, which acts as a common investment and administrative agent for its participating member employers.
Balance
June 30, 2024 Change
Balance
June 30, 2025
Due Within
One Year
Due in More
than One Year
Governmental Activites $ 2,187,972 $ 428,358 $ 2,616,330 2,367,129$ $ 249,201 Deferred Deferred Net Deferred
Employer Outflows - Pension Inflows - Pension
Contributions Pension Liability Pension Expense
CALPERS Miscellaneous
Agent-Multiple Employer Plan $ 4,439,686 $ 2,656,613 $ 43,233,774 $ - $ 5,809,112 CALPERS Safety
Cost-Sharing Plan 7,148,851 10,847,078 70,004,523 4,815,642 10,664,808 $ 11,588,537 $ 13,503,691 $ 113,238,297 $ 4,815,642 $ 16,473,920 58 ~
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2025
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, 2024 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% 7.750%
Required employer contribution rates 11.230% 11.230%
Required UAL payment $3,256,819 $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 27.320% 13.760%
Required UAL payment $5,621,246 $31,603
59 ~
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2025
Employees Covered – As of the measurement date, the following employees were covered by the benefit terms for each Plan:
Inactive employees or beneficiaries currently receiving benefits
247
Inactive employees entitled to but not yet receiving benefits 219 Active employees 130
Total 596
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, 2024, using an annual actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 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, 2023 actuarial valuations were determined using the following actuarial assumptions:
Valuation Date June 30, 2023
Measurement Date (MD) June 30, 2024
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 The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. 60 ~
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2025
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 longtermmarket return expectations as well as the expected pension fund cash flows. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the shortterm (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.
The 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% 4.54%
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. 61 ~
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2025
Changesin the Net Pension Liability
The changes in the Net Pension Liability for the Miscellaneous Plan follow:
As of June 30, 2024 measurement date, the City reported a net pension liability of $70,004,523 for its proportionate share of the net pension liability of the safety plan.
The City’s proportionate share of the net pension liability of the safety risk pool for the safety plan as of measurement dates June 30, 2023 and 2024 were as follows:
Proportion - June 30, 2023 0.9520%
Proportion - June 30, 2024 0.9602%
Change - Increase (Decrease) 0.0082%
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:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2023 (MD) $ 139,636,514 $ 95,557,445 $ 44,079,069 Service cost 2,586,979 - 2,586,979
Interest on the total pension liability 9,579,509 - 9,579,509 Changes of Benefit Terms - - -
Differences between actual and
expected experience 2,052,895 - 2,052,895
Contribution - employer - 4,424,827 (4,424,827)
Contribution - employee - 1,569,614 (1,569,614)
Net investment income - 9,147,992 (9,147,992)
Benefit payments, including refunds
of employee contributions (8,298,878) (8,298,878) -
Administrative expenses - (77,755) 77,755
Net changes 5,920,505 6,765,800 (845,295)
Balance at June 30, 2024 (MD) $ 145,557,019 $ 102,323,245 $ 43,233,774 Increase (Decrease)
62 ~
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2025
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, 2024 measurement date, the City recognized pension expense of $5,809,112 and $10,664,808, for the Miscellaneous and Safety plans, respectively. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to the pension plan from the following sources:
Miscellaneous
Plan
Safety
Plan
1% Decrease
Net Pension Liability $61,260,233 $102,355,528
Current Discount Rate
Net Pension Liability $43,233,774 $70,004,523
1% Increase
Net Pension Liability $28,300,457 $43,545,949
5.90%
6.90%
7.90%
Deferred Outflows Deferred Inflows
Miscellaneous Plan of Resources of Resources
Pension contributions subsequent to $ 4,439,686 $ -
measurement date
Differences between actual and expected experience 1,361,522 - Changes in assumptions - -
Net differences between projected and actual
earnings on pension plan investments 1,295,091 -
Total $ 7,096,299 $ -
Deferred Outflows Deferred Inflows
Safety Plan of Resources of Resources
Pension contributions subsequent to $ 7,148,851 $ -
measurement date
Differences between actual and expected experience 5,712,991 185,753 Changes in assumptions 1,724,766 -
Net differences between projected and actual
earnings on pension plan investments 3,383,701 -
Differences in proportions - 3,601,545
Differences between actual and proportionate
share of contributions 25,620 1,028,344
Total $ 17,995,929 $ 4,815,642
TOTAL ALL PLANS $ 25,092,228 $ 4,815,642
63 ~
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2025
The $4,439,686 and $7,148,851 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, 2026. In November 2025, the City was made aware by CalPERS that the actual Miscellaneous Plan contribution invoice did not reflect the correct amount and should have been $430,649 higher than was actually paid. This invoice is currently pending and will be paid during fiscal year 2026, reflecting an excess contribution.
Other amounts reported as deferred outflows or resources and deferred inflows of resources related to the pension plan will be recognized as pension expense as follows:
10. OTHER POST EMPLOYMENT BENEFITS
A. Plan Description
The City participates in the CalPERS healthcare programs Public Employees Medical and Hospital Care Act (PEMHCA), an agent multiple-employer defined benefit plan, providing retirees the statutory minimum contribution using the 5 percent “unequal method.” The City currently pays for the cost of the retiree PEHMCA funded 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, 2024 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 No. 75 qualifying trust. For the measurement period 2023-24 the City contributed $929,246, Fiscal Year Miscellaneous Safety
Ending June 30, Plan Plan Total
2026 $ 824,021 $ 678,829 $ 1,502,850
2027 2,784,103 6,812,376 9,596,479
2028 (423,826) (302,020) (725,846)
2029 (527,685) (1,157,749) (1,685,434)
TOTAL $ 2,656,613 $ 6,031,436 $ 8,688,049
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
64 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2025
including $233,874 in implicit rate subsidy, $521,801 deposit to CERBT, and $173,571 contribution in the form of a direct benefit payment (not reimbursed by trust). The General Fund has been the source of funding to pay down the OPEB liability.
D. Net OPEB Liability/ Actuarial methods and assumptions:
The City’s net OPEB liability was measured as of June 30, 2024 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 2.50%
Investment Rate of Return 6.35%
Mortality MacLeod Watts Scale
2022 Post Retirement Benefit
Increase MacLeod Watts Scale
2022 Healthcare Cost Trend Rate 6.50% to 4.90%
E. Discount Rate
The discount rate used to measure the total OPEB liability was 6.5%. 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.
65 ~
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2025
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, 2024:
H. Sensitivity of the Net OPEB Liability to Changes in Health Care Cost Trend Rates The following presents the net OPEB liability of the City if it were calculated using heath care cost trend rates that are count rate that is one percentage point lower or one percentage point higher than the current rate, for the measurement period ended June 30, 2024:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
Balance at June 30, 2023 (MD) $ 6,952,958 $ 3,948,011 $ 3,004,947 Service cost 281,537 - 281,537
Interest on the total OPEB liability 434,409 - 434,409
Expected Investment Income - 256,905 -
Contribution - employer - 801,889 (801,889)
Investment Experience - 218,214 (218,214)
Benefit payments, including refunds
of employee contributions (341,856) (341,856) -
Changes of assumptions (161,460) - -
Administrative Expenses - (1,428) -
Plan Experience - - -
Net changes 212,630 933,724 (721,094)
Balance at June 30, 2024 (MD) $ 7,165,588 $ 4,881,735 $ 2,283,853 Increase (Decrease)
Current
1% Decrease Discount Rate 1% Increase
5.35% 6.35% 7.35%
Net OPEB Liability $ 3,154,610 $ 2,283,853 $ 1,559,652
Current
Current Trend Trend Current Trend
-1.00% 6.50% +1%
Net OPEB Liability $ 1,462,378 $ 2,283,853 $ 3,296,438
66 ~
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2025
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 2025, the City recognized OPEB expense of $101,216. For the fiscal year ended June 30 2026, the City reported deferred outflows of resources related to OPEB from the following sources:
The $929,246 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2024 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2026. 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 $ 929,246 $ -
measurement date
Differences between actual and expected
experience 5,244 404,943
Changes in assumptions - 630,037
Net differences between projected and actual
earnings on investments 54 -
Total $ 934,544 $ 1,034,980
67 City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2025
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 provides liability insurance coverage, claims and risk management to its participating members. PLAN JPA provides $25,000,000 of general liability coverage per occurrence and is responsible for paying claims in excess of the City’s $100,000 deductible. For the year ended June 30, 2025, the City paid PLAN JPA $54,493 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 insurance coverage. During the fiscal year ended June 30, 2025, the City contribution was $1,936,165.
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
2026 ($389,300)
2027 (241,189)
2028 (139,981)
2029 (130,457)
2030 (48,320)
Thereafter (80,435)
TOTAL ($1,029,682)
68 ~
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2025
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 the following significant non-construction encumbrances outstanding as of June 30, 2025:
• $264,569 – Public Works equipment loader purchase
• $136,900 – Public Works Sea Level Rise vulnerability assessment • $132,219 – Police Department patrol vehicle cameras
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 ($782,414), Community Development Act ($85,976), and Gas Tax ($127,157).
General
Liability
Claims
Workers'
Compensation
Claims Total 2024 2023
Liability at beginning of fiscal year $ 804,813 $ 2,546,078 3,350,891$ 3,066,805$ 2,865,908$ Claims and changes in estimates (160,995) 60,169 (100,826) 589,337 45,000 Claims Payments (1,311) (141,791) (143,102) (305,250) 155,896 Liability at end of fiscal year 642,507 2,464,456 3,106,963 3,350,892 3,066,804 Current Portion $ 9,641 $ 295,132 $ 304,773 $ 357,133 $ 302,247 2025
CIP Project Name/Description CIP Project #
PO/Contract
Amount
Expenditures
to date as of
June 30,
2025
Remaining
Commitments
Central Avenue Overpass Project Development Phase CIP001014 2,333,205 $ $ 414,016 $ 1,919,189 Arterial Bicycle Lanes CIP001254 1,800,000 1,627,780 172,220 Old Town PDA Streetscape Improvements - Design CIP001258 897,218 622,138 275,080 Street Rubberized Capseal CIP001301 1,885,000 1,693,845 191,155 2024 Asphalt Concrete Street Overlay CIP001344 1,750,000 1,457,600 292,400 2025 Street Slurry Seal Program CIPA10006.FY2025 341,610 107,223 234,388 Newark Resource Center CIP001360 1,615,460 1,290,517 324,943 Traffic Signal Interconnect CIP001361 237,538 120,681 116,857 Thornton Avenue Pavement Rehabilitation Project CIP001366 226,500 125,147 101,353 69 ~
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2025
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, 2025 is as follows:
General Fund
Public
Safety
Impact Fees
Community
Service
Impact Fees
Traffic Impact
Fees
Housing
Impact Fees
Development
Maintenance
Fees
Nonspendable fund balance:
Inventories and loans $ 308,551 $ - $ - $ - $ - $ -
308,551 - - - - -
Restricted fund balance for:
PARS Section 115 Trust 12,694,122 - - - - -
Public safety 1,976,700 1,817,513 - - - -
Community service facilities - - 1,277,558 - - -
Traffic impact - - - 13,501,071 - -
Housing impact - - - - 48,861,299 -
Development maintenance - - - - - 3,701,394
Park improvement - - - - - -
Art in public places - - - - - -
Highway and streets - - - - - -
Waste disposal program - - - - - -
Recycling programs - - - - - -
Health and welfare - - - - - -
PEG activities - - - - - -
Debt reserves - - - - - -
Landscape and lighting - - - - - -
14,670,822 1,817,513 1,277,558 13,501,071 48,861,299 3,701,394 Committed fund balance for:
Pension/OPEB reserve 3,537,570 - - - - -
3,537,570 - - - - -
Assigned fund balance for:
Measure GG 21,159,952 - - - - -
Equipment replacement 6,200,000 - - - - -
Maintenance reserve 8,000,000 - - - - -
Capital assets acquisition - - - - - -
35,359,952 - - - - -
Unassigned fund balance
Emergency reserve 12,174,324 - - - - -
Fiscal uncertainty 11,472,793 - - - - -
Unallocated (deficit) 21,119,921 - - - - -
44,767,038 - - - - -
Total Fund Balances $ 98,643,933 1,817,513$ $ 1,277,558 $ 13,501,071 $ 48,861,299 $ 3,701,394 70 ~
City of Newark
Notes to Basic Financial Statements (Continued)
For the year ended June 30, 2025
Park Impact
Fees
Measure B -
1986 ACTIA
Fund
Art in Public
Places
Capital
Projects
Fund
Public
Financing
Authority
Other
Government
Funds
Total
$ - $ - $ - $ - $ - $ - $ 308,551
- - - - - - 308,551
- - - - - - 12,694,122
- - - - - 352,923 4,147,136
- - - - - - 1,277,558
- - - - - - 13,501,071
- - - - - - 48,861,299
- - - - - - 3,701,394
8,728,274 - - - - - 8,728,274
- - 1,833,437 - - - 1,833,437
- - - - - 14,560,245 14,560,245
- - - - - 18,638 18,638
- - - - - 227,882 227,882
- - - - - 97,799 97,799
- - - - - 911,542 911,542
- - - - 14,834 - 14,834
- - - - 2,336,719 2,336,719
8,728,274 - 1,833,437 - 14,834 18,505,748 112,911,950
- - - - - - 3,537,570
- - - - - - 3,537,570
- - - - - - 21,159,952
- - - - - - 6,200,000
- - - - - - 8,000,000
- - - 12,056,180 - - 12,056,180
- - - 12,056,180 - - 47,416,132
- - - - - 12,174,324
- - - - - 11,472,793
- (782,414) - - (213,133) 20,124,374
- (782,414) - - (213,133) 43,771,491
8,728,274$ $ (782,414) 1,833,437$ $ 12,056,180 $ 14,834 $ 18,292,615 $ 207,945,694 71 ~
72 REQUIRED SUPPLEMENTARY INFORMATION
73 Original Final Actual
Variance with
Final Budget
REVENUES
General property taxes $ 33,469,000 $ 33,469,000 $ 34,018,698 $ 549,698 Other local taxes 40,297,000 41,297,000 47,741,330 6,444,330 Special assessments 270,000 270,000 271,923 1,923
Licenses permits and fees 3,635,000 3,635,000 4,727,707 1,092,707 Intergovernmental 178,000 178,000 640,268 462,268
Charges for services 2,245,000 2,245,000 2,402,840 157,840 Fines and forefeitures 515,000 515,000 570,644 55,644
Use of money and property 3,999,000 5,399,000 5,971,454 572,454 Other revenue 151,000 293,948 506,305 212,357
Total revenues 84,759,000 87,301,948 96,851,169 9,549,221
EXPENDITURES
Current:
General government 12,561,000 24,980,654 11,605,717 13,374,937 Public safety:
Fire 14,470,000 14,472,750 14,200,890 271,860
Police 29,690,000 29,740,172 27,348,143 2,392,029
Community development 3,713,000 3,619,800 3,014,306 605,494 Recreation 6,570,000 6,570,000 6,190,011 379,989
Public works 13,510,000 13,802,325 11,673,847 2,128,478 Capital outlay - - 43,990 (43,990)
Subscriptions outlay - - 1,294,705 (1,294,705)
Total current 80,514,000 93,185,701 75,371,609 17,814,092 Debt service:
Principal repayment - Subscriptions - - 240,464 (240,464) Interest and fiscal charges - Subscriptions - - 10,164 (10,164) Total debt service - - 250,628 (250,628)
Total expenditures 80,514,000 93,185,701 75,622,237 17,563,464 Revenues over (under) expenditures 4,245,000 (5,883,753) 21,228,932 27,112,685
OTHER FINANCING SOURCES (USES)
Transfers in 257,000 21,621,453 8,399,460 13,221,993
Transfers out (7,420,000) (20,810,000) (5,185,489) 15,624,511 Other financing source - Subscriptions - - 1,294,705 1,294,705 Total other financing sources (uses) (7,163,000) 811,453 4,508,676 (1,107,813) Net change in fund balances (2,918,000) (5,072,300) 25,737,608 26,004,872 Fund balances - beginning - - 72,906,325 72,906,325
Fund balances - ending $ (2,918,000) $ (5,072,300) $ 98,643,933 $ 98,911,197 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, 2025
74 Original Final Actual
Variance with
Final Budget
REVENUES
Licenses permits and fees $ 130,000 $ 130,000 $ 1,379,001 $ 1,249,001 Use of money and property - - 1,416,735 1,416,735
Total revenues 130,000 130,000 2,795,736 2,665,736
EXPENDITURES
Community development 74,000 74,000 19,017 54,983
Total expenditures 74,000 74,000 19,017 54,983
Net change in fund balances 56,000 56,000 2,776,719 2,720,719 Fund balances - beginning - - 46,084,580 46,084,580
Fund balances - ending $ 56,000 $ 56,000 $ 48,861,299 $ 48,805,299 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, 2025
75 Original Final Actual
Variance with
Final Budget
REVENUES
Licenses permits and fees $ 593,000 $ 593,000 $ 631,820 $ 38,820 Use of money and property - - 165,258 165,258
Total revenues 593,000 593,000 797,078 204,078
EXPENDITURES
Community development 2,991,000 3,272,324 1,193,316 2,079,008 Capital outlay - - 164,519 (164,519)
Total expenditures 2,991,000 3,272,324 1,357,835 1,914,489 Net change in fund balances (2,398,000) (2,679,324) (560,757) 2,118,567 Fund balances - beginning - - 4,262,151 4,262,151
Fund balances - ending $ (2,398,000) $ (2,679,324) $ 3,701,394 $ 6,380,718 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, 2025
76 Original Final Actual
Variance with
Final Budget
REVENUES
Intergovernmental $ 257,000 $ 257,000 $ 1,125,043 $ 868,043 Total revenues 257,000 257,000 1,125,043 868,043
EXPENDITURES
Recreation 50,000 66,000 65,772 228
Total expenditures 50,000 66,000 65,772 228
Revenues over (under) expenditures 207,000 191,000 1,059,271 868,271
OTHER FINANCING SOURCES (USES)
Transfers out (157,000) (1,680,205) (1,059,271) 620,934 Total other financing sources (uses) (157,000) (1,680,205) (1,059,271) 620,934 Net change in fund balances 50,000 (1,489,205) - 1,489,205 Fund balances - beginning - - - -
Fund balances - ending $ 50,000 $ (1,489,205) $ - $ 1,489,205 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, 2025
77 Original Final Actual
Variance with
Final Budget
REVENUES
Revenue - Intergovernmental $ - $ - $ 2,919,314 $ 2,919,314 Total revenues - - 2,919,314 2,919,314
EXPENDITURES
Capital outlay - 264,929 392,214 (127,285)
Total expenditures - 264,929 392,214 (127,285)
Net change in fund balances - (264,929) 2,527,100 2,792,029 Fund balances - beginning - - (3,309,514) (3,309,514)
Fund balances - ending $ - $ (264,929) $ (782,414) $ (517,485) 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, 2025
78 CITY OF NEWARK
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY ACCOUNTING AND CONTROL
JUNE 30, 2025
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.
b. Expenditures over Appropriations
The following Fund had expenditures over appropriations for the fiscal year ended June 30, 2025:
The following funds did not adopt budgets for FY 2025:
• Waste Augmentation Fund
• Recycle AB939
• Miscellaneous Local Grants
• ACTC Discretionary Fund
• State Construction Maintenance Funds
General Fund Subscription-related outlays and debt service payments are not budgeted.
Fund Budget Actual Excess
Measure B - 1986 ACTIA $ 264,929 $ 392,214 127,285$
79 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
2016 2017 2018
Measurement Date 6/30/2015 6/30/2016 6/30/2017
Total Pension Liability
Service Cost $ 1,428,480 $ 1,526,903 $ 1,741,959
Interest 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 (5,054,891) (5,339,676) (5,585,662) Net Change in Total Pension Liability 1,512,271 3,320,804 9,902,240 Total Pension Liability - Beginning 97,332,688 98,844,959 102,165,763 Total Pension Liability - Ending (a) $ 98,844,959 $ 102,165,763 $ 112,068,003 Plan Fiduciary Net Position
Contributions - Employer 1,771,614 2,089,006 2,252,015
Contributions - Employee 980,547 1,026,537 1,148,693
Plan to Plan Resource Movement - - -
Net Investment Income 1,509,133 377,065 7,421,654
Benefit Payments, Including
Refunds of Employee Contributions (5,054,891) (5,339,676) (5,585,662) Administrative Expense (76,731) (41,512) (97,779)
Other Miscellaneous Income/(Expense) 1 95 - (401)
Net Change in Fiduciary Net Position (870,233) (1,888,580) 5,138,520 Plan Fiduciary Net Position - Beginning 2 68,985,044 68,114,811 66,226,231 Plan Fiduciary Net Position - Ending (b) $ 68,114,811 $ 66,226,231 $ 71,364,751 Plan Net Pension Liability/(Assets) - Ending (a) - (b) $ 30,730,148 $ 35,939,532 $ 40,703,252 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 68.91% 64.82% 63.68%
Covered Payroll 3 $ 8,581,003 $ 9,334,103 $ 9,888,505
Plan Net Pension Liability/(Asset) as a Percentage of
Covered Payroll 358.12% 385.03% 411.62%
Notes to Schedule:
(1) During Fiscal Year 2017-18 as a result of Goevernmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California's OEPB plan. Additionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB No. 68, Accounting and Financial Reporting for Pensions (GASB68).
(2) Includes any beginning of year adjustment.
(3) Includes one year's payroll growth using 2.80% payroll growth assumption for fiscal years ended in 2022 through 2024; 2.75% payroll growth assumption for fiscal years ended in 2018 through 2021; 3% payroll growth assumption for fiscal years ended in 2018 through 2021; 3% payroll growth assumption for fiscal years ended in 2015 through 2017.
80 2019 2020 2021 2022 2023 2024 2025
6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024 $ 1,958,908 $ 2,015,761 $ 1,935,397 $ 1,901,824 $ 2,119,396 $ 2,218,298 $ 2,586,979 7,893,622 8,282,270 8,658,150 8,849,497 8,888,163 9,198,932 9,579,509 - - - - - 148,766 -
1,112,052 1,745,541 1,582,587 (891,445) (1,907,477) 995,023 2,052,895 (761,857) - - - 3,418,942 - -
(5,994,674) (6,387,039) (6,779,708) (7,238,583) (7,415,003) (7,978,832) (8,298,878) 4,208,051 5,656,533 5,396,426 2,621,293 5,104,021 4,582,187 5,920,505 112,068,003 116,276,054 121,932,587 127,329,013 129,950,306 135,054,327 139,636,514 $ 116,276,054 $ 121,932,587 $ 127,329,013 $ 129,950,306 $ 135,054,327 $ 139,636,514 $ 145,557,019 3,091,582 3,224,109 3,532,890 3,874,896 9,282,730 4,395,393 4,424,827 1,232,724 1,208,146 1,219,082 1,203,390 1,224,304 1,488,558 1,569,614 (176) - - - - - -
6,085,231 5,029,454 3,929,919 18,157,424 (7,248,311) 5,749,616 9,147,992 (5,994,674) (6,387,039) (6,779,708) (7,238,583) (7,415,003) (7,978,832) (8,298,878) (111,206) (53,848) (110,635) (80,184) (59,918) (67,631) (77,755) (211,182) 176 - - - - -
4,092,299 3,020,998 1,791,548 15,916,943 (4,216,198) 3,587,104 6,765,800 71,364,751 75,457,050 78,478,048 80,269,596 96,186,539 91,970,341 95,557,445 $ 75,457,050 $ 78,478,048 $ 80,269,596 $ 96,186,539 $ 91,970,341 $ 95,557,445 $ 102,323,245 $ 40,819,004 $ 43,454,539 $ 47,059,417 $ 33,763,767 $ 43,083,986 $ 44,079,069 $ 43,233,774
64.89% 64.36% 63.04% 74.02% 68.10% 68.43% 70.30%
$ 10,925,309 $ 11,151,586 $ 11,180,801 $ 11,037,862 $ 11,297,419 $ 11,868,901 $ 14,151,963 373.62% 389.67% 420.89% 305.89% 381.36% 371.38% 305.50% 81 City of Newark
Miscellaneous Plan - Agent Multiple-Employer
Schedule of Plan Contributions
As of June 30, for the Last Ten Fiscal Years
2016 2017 2018
Actuarially Determined Contribution 2,089,006$ 2,252,015$ 3,091,582$ Contribution in Relation to the Actuarially Determined Contribution (2,089,006) (2,252,015) (3,091,582) Contribution Deficiency (Excess) - - -
Covered Payroll 9,334,103 9,888,505 10,925,309
Contributions as a Percentage of Covered Payroll 22.38% 22.77% 28.30% 82 2019 2020 2021 2022 2023 2024 2025
3,224,109$ 3,532,890$ 3,874,896$ 4,282,706$ 4,395,393$ 4,424,827$ 4,870,335$ (3,224,109) (3,532,890) (3,874,896) (9,282,706) (4,395,393) (4,424,827) (4,439,686) - - - (5,000,000) - - 430,649
11,151,586 11,180,801 11,037,862 11,297,419 11,868,901 11,938,931 12,542,865
28.91% 31.60% 35.11% 82.17% 37.03% 37.06% 38.83%
83 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
2016 2017 2018 2019
Measurement Date 6/30/2015 6/30/2016 6/30/2017 6/30/2018 Proportion of the Net Pension Liability* 0.66006% 0.62991% 1.02467% 1.05341% Proportionate Share of the Net Pension Liability $ 54,506,282 $ 54,506,282 $ 61,226,071 $ 61,809,192 Covered Payroll $ 7,171,629 $ 7,171,629 $ 7,362,907 $ 7,381,368 Proportionate Share of the Net Pension Liability
as a Percentage of Covered Payroll 760.0% 760.0% 831.5% 837.4% Plan Fiduciary Net Position as a Percentage of the
Total Pension Liability 74.06% 74.06% 65.64% 66.76%
* 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. 84 2020 2021 2022 2023 2024 2025
6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024
1.03736% 1.03225% 1.05085% 0.96973% 0.95195% 0.96017%
$ 64,757,434 $ 68,772,104 $ 36,879,425 $ 66,635,474 $ 71,157,944 $ 70,004,523 $ 9,025,651 $ 7,417,018 $ 7,777,066 $ 7,740,113 7,096,538 8,318,406 717.5% 927.2% 474.2% 860.9% 1002.7% 841.6%
66.82% 66.03% 82.29% 69.69% 68.81% 70.44%
85 City of Newark
Cost-Sharing Multiple Employer Safety Plan
Schedule of Plan Contributions
As of June 30, for the Last Ten Fiscal Years
2016 2017 2018
Actuarially Determined Contribution $ 3,262,170 $ 3,595,377 $ 4,766,942 Contribution in Relation to the Actuarially Determined Contribution (3,262,170) (3,595,377) (4,766,942) Contribution Deficiency (Excess) - - -
Covered Payroll 7,171,629 7,084,459 7,381,368
Contributions as a Percentage of Covered Payroll 45.5% 50.8% 64.6% 86 2019 2020 2021 2022 2023 2024 2025
$ 5,046,191 $ 5,386,172 $ 5,836,100 $ 5,493,067 $ 5,971,166 $ 6,196,239 $ 7,148,851 (5,046,191) (5,386,172) (15,836,100) (5,493,067) (5,971,166) (6,196,239) (7,148,851) - - (10,000,000) - - - -
9,025,651 7,417,018 7,777,066 7,740,113 24,182,604 8,318,406 7,421,853
55.9% 72.6% 203.6% 71.0% 84.1% 74.5% 96.3%
87 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%. 88 2022 2023 2024 2025
6/30/2021 6/30/2022 6/30/2023 6/30/2024
$ 278,172 $ 290,340 $ 299,050 $ 281,537
398,066 397,377 417,223 434,409
10,652 - (45,556) -
(355,369) - (192,112) (161,460)
(339,677) (370,663) (360,639) (341,856)
(8,156) 317,054 117,966 212,630
6,526,094 6,517,938 6,834,992 6,952,958
6,517,938 6,834,992 6,952,958 7,165,588
339,677 606,337 807,273 801,889
761,949 (500,346) 235,941 475,119
(339,677) (370,663) (360,639) (341,856)
(1,049) (919) (989) (1,428)
- - - -
- - - -
760,900 (265,591) 681,586 933,724
2,771,116 3,532,016 3,266,425 3,948,011
3,532,016 3,266,425 3,948,011 4,881,735
$ 2,985,922 $ 3,568,567 $ 3,004,947 $ 2,283,853
54.19% 47.79% 56.78% 68.13%
18,685,140 19,245,694 21,684,866 22,768,816
15.98% 18.54% 13.86% 10.03%
89 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
90 2022 2023 2024 2025
6/30/2021 6/30/2022 6/30/2023 6/30/2024
$ 490,602 $ 446,634 $ 460,033 $ 521,801
(606,337) (807,273) (801,889) (929,246)
$ (115,735) $ (360,639) $ (341,856) $ (407,445)
$ 19,245,694 $ 21,684,866 $ 22,768,816 $ 24,182,604
3.15% 3.72% 3.52% 3.84%
91 92
SUPPLEMENTARY INFORMATION
93 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 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.
94 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.
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.
CAPITAL PROJECTS FUNDS
PEG Fees – Accounts for funding used to support PEG activities and the capital costs needed for repair, replacement, and maintenance of equipment used to broadcast Council meetings, or to make technological upgrades to the Council chambers.
95 City of Newark
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2025
Alameda Community
County FEMA Police Development Waste
Fire Fees Grants Act (HCD) Augmentation
ASSETS
Pooled cash and investments $ 50,710 $ - $ 271,857 $ - $ 18,638 Receivables:
Intergovernmental - 2,974 7,933 283,756 -
Special assessments - - - - -
Other - - - - -
Total assets $ 50,710 $ 2,974 $ 279,790 $ 283,756 $ 18,638
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ - $ - $ 3,000 $ 11,601 $ -
Unearned revenues - - - - -
Refundable deposits - - - - -
Due to other funds - - - 74,375 -
Total liabilities - - 3,000 85,976 -
DEFERRED INFLOW OF RESOURCES
Unavailable revenue - 2,974 - 283,756 -
Total deferred inflow of resources - 2,974 - 283,756 -
Fund Balances (Deficit):
Restricted 50,710 - 276,790 - 18,638
Unassigned (deficit) - - - (85,976) -
Total fund balances (deficit) 50,710 - 276,790 (85,976) 18,638 Total liabilities and fund balances (deficits) $ 50,710 $ 2,974 $ 279,790 $ 283,756 $ 18,638 Special Revenue Funds
96 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 $ 140,760 $ - $ 1,167,769 $ 6,099,606 $ 909,009 $ 46,198 $ 5,300,218 - 32,458 111,956 - 322,283 37,144 - 108,526
- - - - - - - -
- - - - - - - -
$ 57,164 $ 173,218 $ 111,956 $ 1,167,769 $ 6,421,889 $ 946,153 $ 46,198 $ 5,408,744
$ - $ 2,500 $ 186,245 $ 82,914 $ 136,451 $ - $ - $ 58,202 - - - - - - - -
- - - - - - - -
- - 52,868 - - - - -
- 2,500 239,113 82,914 136,451 - - 58,202
- - - - 165,570 - - -
- - - - 165,570 - - -
57,164 170,718 - 1,084,855 6,119,868 946,153 46,198 5,350,542 - - (127,157) - - - - -
57,164 170,718 (127,157) 1,084,855 6,119,868 946,153 46,198 5,350,542 $ 57,164 $ 173,218 $ 111,956 $ 1,167,769 $ 6,421,889 $ 946,153 $ 46,198 $ 5,408,744 Special Revenue Funds
97 City of Newark
Combining Balance Sheet
Non-Major Governmental Funds, Continued
June 30, 2025
Hazardous State State Misc.
Materials Senate Bills BSCC Construction Local
Program Fund Grants Maintenance Grants
ASSETS
Pooled cash and investments $ 27,717 $ 135,290 $ 182,930 $ 1,025,398 $ 3,299 Receivables:
Intergovernmental - - 8,621 - -
Special assessments - - - - -
Other - - - - -
Total assets $ 27,717 $ 135,290 $ 191,551 $ 1,025,398 $ 3,299
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ - $ 7,609 $ - $ - $ -
Unearned revenues - - 157,507 - -
Refundable deposits - 60,898 - 12,769 -
Due to other funds - - - - -
Total liabilities - 68,507 157,507 12,769 -
DEFERRED INFLOW OF RESOURCES
Unavailable revenue - - 8,621 - -
Total deferred inflow of resources - - 8,621 - -
Fund Balances (Deficit):
Restricted 27,717 66,783 25,423 1,012,629 3,299
Unassigned - - - - -
Total fund balances (deficit) 27,717 66,783 25,423 1,012,629 3,299 Total liabilities and fund balances $ 27,717 $ 135,290 $ 191,551 $ 1,025,398 $ 3,299 Special Revenue Funds
98 Continued
Capital Projects
Landscape Non-Major
and Lighting PEG Governmental
District Fees Funds
$ 2,351,259 $ 898,874 $ 18,686,696
- - 915,651
507 - 507
- 12,668 12,668
$ 2,351,766 $ 911,542 $ 19,615,522
$ 15,047 $ - $ 503,569
- - 157,507
- - 73,667
- - 127,243
15,047 - 861,986
- - 460,921
- - 460,921
2,336,719 911,542 18,505,748
- - (213,133)
2,336,719 911,542 18,292,615
$ 2,351,766 $ 911,542 $ 19,615,522
Fund
99 City of Newark
Combined Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the year ended June 30, 2025
Alameda Community Waste
County FEMA Police Development Augmentation
Fire Fees Grants Act (HCD) Fund
REVENUES:
Special assessments $ - $ - $ - $ - $ -
Other governmental agencies - 51,765 316,574 486,679 -
Use of money and property - - 5,942 - -
License, permits and fees - - 17,880 - -
Total revenues - 51,765 340,396 486,679 -
EXPENDITURES:
Current:
Public safety:
Police - - 323,629 - -
Public works - - - - -
Recreation - - - - -
Capital outlay - - - 232,023 -
Total expenditures - - 323,629 232,023 -
REVENUE OVER
(UNDER) EXPENDITURES - 51,765 16,767 254,656 -
OTHER FINANCING USES:
SOURCES (USES):
Transfers in - - - - -
Transfers out - (133,694) - - -
Total other financing uses - (133,694) - - -
Net change in fund balances - (81,929) 16,767 254,656 - FUND BALANCES (Deficit):
Beginning of year 50,710 81,929 260,023 (340,632) 18,638 End of year $ 50,710 $ - $ 276,790 $ (85,976) $ 18,638
Special Revenue Funds
100
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
$ - $ - $ - $ - $ - $ - $ - $ -
- 131,702 1,340,834 - 1,671,444 215,130 - 1,294,895
- 5,784 2,400 47,240 217,149 32,634 2,231 207,563
- - - - - - - -
- 137,486 1,343,234 47,240 1,888,593 247,764 2,231 1,502,458 - - - - - - - -
- 104,739 868,222 2,860 - - - -
- - - - 194,194 - - -
- - 498,971 90,871 - - - 1,164,041
- 104,739 1,367,193 93,731 194,194 - - 1,164,041
- 32,747 (23,959) (46,491) 1,694,399 247,764 2,231 338,417 - - 27,308 - - - - -
- - - - - - - -
- - 27,308 - - - - -
- 32,747 3,349 (46,491) 1,694,399 247,764 2,231 338,417 57,164 137,971 (130,506) 1,131,346 4,425,469 698,389 43,967 5,012,125 $ 57,164 $ 170,718 $ (127,157) $ 1,084,855 $ 6,119,868 $ 946,153 $ 46,198 $ 5,350,542 Special Revenue Funds
101
City of Newark
Combined Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds, Continued
For the year ended June 30, 2025
Hazardous State State Misc.
Materials Senate Bills BSCC Construction Local
Program Fund Grants Maintenance Grants
REVENUES:
Special assessments $ - $ - $ - $ - $ -
Other governmental agencies - - 691,145 - -
Use of money and property 1,090 - 8,621 40,403 -
License, permits and fees - 1,745 - - -
Total revenues 1,090 1,745 699,766 40,403 -
EXPENDITURES:
Current:
Public safety:
Police - - 134,618 - -
Public works - 3,403 - - -
Recreation - - - - -
Capital outlay - - 129,749 -
Total expenditures - 3,403 264,367 - -
REVENUE OVER
(UNDER) EXPENDITURES 1,090 (1,658) 435,399 40,403 -
OTHER FINANCING
SOURCES (USES):
Transfers in - - - - -
Transfers out - - (250,000) - -
Total other financing uses - - (250,000) - -
Net change in fund balances 1,090 (1,658) 185,399 40,403 - FUND BALANCES (Deficit):
Beginning of year 26,627 68,441 (159,976) 972,226 3,299 End of year $ 27,717 $ 66,783 $ 25,423 $ 1,012,629 $ 3,299 Special Revenue Funds
102
Continued
Capital Projects
Fund
Landscape Non-Major
and Lighting PEG Governmental
District Fees Funds
$ 397,863 $ - $ 397,863
- - 6,200,168
90,149 34,569 695,775
- 53,860 73,485
488,012 88,429 7,367,291
- - 458,247
366,575 - 1,345,799
- - 194,194
- - 2,115,655
366,575 - 4,113,895
121,437 88,429 3,253,396
- - 27,308
- - (383,694)
- - (356,386)
121,437 88,429 2,897,010
2,215,282 823,113 15,395,605
$ 2,336,719 $ 911,542 $ 18,292,615
103
104
Original Final Actual
Variance with
Final Budget
EXPENDITURES
Public Safety:
Fire $ 6,000 $ 6,000 $ - $ 6,000
Total expenditures 6,000 6,000 - 6,000
Net change in fund balances (6,000) (6,000) - 6,000
Fund balances - beginning - - 50,710 50,710
Fund balances - ending $ (6,000) $ (6,000) $ 50,710 $ 56,710 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, 2025
105
Original Final Actual
Variance with
Final Budget
REVENUES
Intergovernmental $ - $ 55,000 $ 51,765 $ (3,235)
Total revenues - 55,000 51,765 (3,235)
Revenues over (under) expenditures - 55,000 51,765 (3,235)
OTHER FINANCING SOURCES (USES)
Transfers out - (137,000) (133,694) 3,306
Total other financing sources (uses) - (137,000) (133,694) 3,306 Net change in fund balances - (82,000) (81,929) 71
Fund balances - beginning - - 81,929 81,929
Fund balances - ending $ - $ (82,000) $ - $ 82,000
Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual FEMA
For the Year Ended June 30, 2025
106
Original Final Actual
Variance with
Final Budget
REVENUES
Licenses permits and fees $ - $ - $ 17,880 $ 17,880
Intergovernmental 145,000 327,628 316,574 (11,054)
Use of money and property - - 5,942 5,942
Total revenues 145,000 327,628 340,396 12,768
EXPENDITURES
Public Safety:
Police 23,000 383,060 323,629 59,431
Total expenditures 23,000 383,060 323,629 59,431
Net change in fund balances 122,000 (55,432) 16,767 72,199 Fund balances - beginning - - 260,023 260,023
Fund balances - ending $ 122,000 $ (55,432) $ 276,790 $ 332,222 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, 2025
107
Original Final Actual
Variance with
Final Budget
REVENUES
Other governmental agencies $ 152,251 $ 302,251 $ 486,679 $ 184,428 Total revenues 152,251 302,251 486,679 184,428
EXPENDITURES
Capital outlay 152,251 152,251 232,023 (79,772)
Total expenditures 152,251 152,251 232,023 (79,772)
Net change in fund balances - 150,000 254,656 104,656
Fund balances - beginning - - (340,632) (340,632)
Fund balances (deficit) - ending $ - $ 150,000 $ (85,976) $ (235,976) 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, 2025
108
Original Final Actual
Variance with
Final Budget
REVENUES
Intergovernmental $ 134,000 $ 134,000 $ 131,702 $ (2,298) Use of money and property - - 5,784 5,784
Total revenues 134,000 134,000 137,486 3,486
EXPENDITURES
Public works 646,000 790,014 104,739 685,275
Total expenditures 646,000 790,014 104,739 685,275
Net change in fund balances (512,000) (656,014) 32,747 688,761 Fund balances - beginning - - 137,971 137,971
Fund balances - ending $ (512,000) $ (656,014) $ 170,718 $ 826,732 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, 2025
109
Original Final Actual
Variance with
Final Budget
REVENUES
Intergovernmental $ 1,292,000 $ 1,292,000 $ 1,340,834 $ 48,834 Use of money and property - - 2,400 2,400
Total revenues 1,292,000 1,292,000 1,343,234 51,234
EXPENDITURES
Public works 2,575,000 3,329,829 868,222 2,461,607
Capital outlay - - 498,971 (498,971)
Total expenditures 2,575,000 3,329,829 1,367,193 1,962,636 Revenues over (under) expenditures (1,283,000) (2,037,829) (23,959) 2,013,870
OTHER FINANCING SOURCES (USES)
Transfers in - 33,400 27,308 (6,092)
Total other financing sources (uses) - 33,400 27,308 (6,092) Net change in fund balances (1,283,000) (2,004,429) 3,349 2,007,778 Fund balances - beginning - - (130,506) (130,506)
Fund balances - ending $ (1,283,000) (2,004,429) $ (127,157) $ 1,877,272 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, 2025
110
Original Final Actual
Variance with
Final Budget
REVENUES
Use of money and property $ - $ - $ 47,240 $ 47,240
Total revenues - - 47,240 47,240
EXPENDITURES
Public works 50,000 50,000 2,860 47,140
Capital outlay 150,000 594,380 90,871 503,509
Total expenditures 200,000 644,380 93,731 550,649
Net change in fund balances (200,000) (644,380) (46,491) 597,889 Fund balances - beginning - - 1,131,346 1,131,346
Fund balances - ending $ (200,000) $ (644,380) $ 1,084,855 $ 1,729,235 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, 2025
111
Original Final Actual
Variance with
Final Budget
REVENUES
Intergovernmental $ 1,955,000 $ 1,955,000 $ 1,671,444 $ (283,556) Use of money and property - - 217,149 217,149
Total revenues 1,955,000 1,955,000 1,888,593 (66,407)
EXPENDITURES
Recreation 432,000 432,000 194,194 237,806
Capital outlay 1,700,000 2,230,000 - 2,230,000
Total expenditures 2,132,000 2,662,000 194,194 2,467,806 Net change in fund balances (177,000) (707,000) 1,694,399 2,401,399 Fund balances - beginning - - 4,425,469 4,425,469
Fund balances - ending $ (177,000) $ (707,000) $ 6,119,868 $ 6,826,868 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, 2025
112
Original Final Actual
Variance with
Final Budget
REVENUES
Intergovernmental $ 200,000 $ 200,000 $ 215,130 $ 15,130 Use of money and property - - 32,634 32,634
Total revenues 200,000 200,000 247,764 47,764
EXPENDITURES
Public works 100,000 100,000 - 100,000
Total expenditures 100,000 100,000 - 100,000
Net change in fund balances 100,000 100,000 247,764 147,764 Fund balances - beginning - - 698,389 698,389
Fund balances - ending $ 100,000 $ 100,000 $ 946,153 $ 846,153 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, 2025
113
Original Final Actual
Variance with
Final Budget
REVENUES
Intergovernmental $ 1,165,000 $ 1,165,000 $ 1,294,895 $ 129,895 Use of money and property - - 207,563 207,563
Total revenues 1,165,000 1,165,000 1,502,458 337,458
EXPENDITURES
Capital outlay 1,500,000 1,422,583 1,164,041 258,542
Total expenditures 1,500,000 1,422,583 1,164,041 258,542 Net change in fund balances (335,000) (257,583) 338,417 596,000 Fund balances - beginning - - 5,012,125 5,012,125
Fund balances - ending $ (335,000) $ (257,583) $ 5,350,542 $ 5,608,125 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, 2025
114
Original Final Actual
Variance with
Final Budget
REVENUES
Use of money and property $ - $ - $ 1,090 $ 1,090
Total revenues - - 1,090 1,090
EXPENDITURES
Public works 14,000 14,000 - 14,000
Total expenditures 14,000 14,000 - 14,000
Net change in fund balances (14,000) (14,000) 1,090 15,090 Fund balances - beginning - - 26,627 26,627
Fund balances - ending $ (14,000) $ (14,000) $ 27,717 $ 41,717 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, 2025
115
Original Final Actual
Variance with
Final Budget
REVENUES
Licenses, permits and fees $ 3,000 $ 3,000 $ 1,744 $ (1,256) Total revenues 3,000 3,000 1,744 (1,256)
EXPENDITURES
Current:
Public works 6,000 9,000 3,402 5,598
Total current 6,000 9,000 3,402 5,598
Total expenditures 6,000 9,000 3,402 5,598
Revenues over (under) expenditures (3,000) (6,000) (1,658) 4,342
OTHER FINANCING SOURCES (USES)
Transfers out - (11,000) - 11,000
Total other financing sources (uses) - (11,000) - 11,000 Net change in fund balances (3,000) (17,000) (1,658) 15,342 Fund balances - beginning - - 68,441 68,441
Fund balances - ending $ (3,000) $ (17,000) $ 66,783 $ 83,783 Budgeted Amounts
City of Newark
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual State Senate Bills Funds
For the Year Ended June 30, 2025
116
Original Final Actual
Variance with
Final Budget
REVENUES
Intergovernmental $ 579,000 $ 579,000 $ 691,145 $ 112,145 Use of money and property - - 8,621 8,621
Total revenues 579,000 579,000 699,766 120,766
EXPENDITURES
Police 579,000 901,342 134,618 766,724
Capital outlay - - 129,749 (129,749)
Total expenditures 579,000 901,342 264,367 636,975
Revenues over (under) expenditures - (322,342) 435,399 757,741
OTHER FINANCING SOURCES (USES)
Transfers out (100,000) (250,000) (250,000) -
Total other financing sources (uses) (100,000) (250,000) (250,000) - Net change in fund balances (100,000) (572,342) 185,399 757,741 Fund balances - beginning - - (159,976) (159,976)
Fund balances - ending $ (100,000) $ (572,342) $ 25,423 $ 597,765 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, 2025
117
Original Final Actual
Variance with
Final Budget
REVENUES
Licenses permits and fees $ 57,000 $ 57,000 $ 53,860 $ (3,140) Use of money and property - - 34,569 34,569
Total revenues 57,000 57,000 88,429 31,429
Net change in fund balances 57,000 57,000 88,429 31,429 Fund balances - beginning - - 823,113 823,113
Fund balances - ending $ 57,000 $ 57,000 $ 911,542 $ 854,542 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, 2025
118
Original Final Actual
Variance with
Final Budget
REVENUES
Special assessments $ - $ - $ 397,863 $ 397,863
Use of money and property - - 90,149 90,149
Total revenues - - 488,012 488,012
EXPENDITURES
Public works 3,000 812,746 366,575 446,171
Total expenditures 3,000 812,746 366,575 446,171
Revenues over (under) expenditures (3,000) (812,746) 121,437 934,183 Net change in fund balances (3,000) (812,746) 121,437 934,183 Fund balances - beginning - - 2,215,282 2,215,282
Fund balances - ending $ (3,000) $ (812,746) $ 2,336,719 $ 3,149,465 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, 2025
119
Original Final Actual
Variance with
Final Budget
REVENUES
Licenses permits and fees $ 435,000 $ 435,000 $ 157,607 $ (277,393) Use of money and property - - 69,628 69,628
Total revenues 435,000 435,000 227,235 (207,765)
Net change in fund balances 435,000 435,000 227,235 (207,765) Fund balances - beginning - - 1,590,278 1,590,278
Fund balances - ending $ 435,000 $ 435,000 $ 1,817,513 $ 1,382,513 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, 2025
120
Original Final Actual
Variance with
Final Budget
REVENUES
Licenses permits and fees $ 278,000 $ 278,000 $ 134,968 $ (143,032) Use of money and property - - 48,967 48,967
Total revenues 278,000 278,000 183,935 (94,065)
Net change in fund balances 278,000 278,000 183,935 (94,065) Fund balances - beginning - - 1,093,623 1,093,623
Fund balances - ending $ 278,000 $ 278,000 $ 1,277,558 $ 999,558 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, 2025
121
Original Final Actual
Variance with
Final Budget
REVENUES
Licenses permits and fees $ 881,000 $ 881,000 $ 431,131 $ (449,869) Use of money and property - - 537,219 537,219
Total revenues 881,000 881,000 968,350 87,350
EXPENDITURES
Capital outlay - 354,549 354,549 -
Total expenditures - 354,549 354,549 -
Net change in fund balances 881,000 526,451 613,801 87,350 Fund balances - beginning - - 12,887,270 12,887,270
Fund balances - ending $ 881,000 $ 526,451 $ 13,501,071 $ 12,974,620 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, 2025
122
Original Final Actual
Variance with
Final Budget
REVENUES
Licenses permits and fees $ 100,000 $ 100,000 $ 862,064 $ 762,064 Use of money and property - - 333,886 333,886
Total revenues 100,000 100,000 1,195,950 1,095,950
EXPENDITURES
Public works 170,000 254,673 75,037 179,636
Capital outlay 103,000 121,091 118,631 2,460
Total expenditures 273,000 375,764 193,668 182,096
Net change in fund balances (173,000) (275,764) 1,002,282 1,278,046 Fund balances - beginning - - 7,725,992 7,725,992
Fund balances - ending $ (173,000) $ (275,764) $ 8,728,274 $ 9,004,038 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, 2025
123
Original Final Actual
Variance with
Final Budget
REVENUES
Licenses permits and fees $ 32,000 $ 32,000 $ 27,375 $ (4,625) Use of money and property - - 78,037 78,037
Total revenues 32,000 32,000 105,412 73,412
EXPENDITURES
Recreation 234,000 280,976 224,530 56,446
Total expenditures 234,000 280,976 224,530 56,446
Net change in fund balances (202,000) (248,976) (119,118) 129,858 Fund balances - beginning - - 1,952,555 1,952,555
Fund balances - ending $ (202,000) $ (248,976) $ 1,833,437 $ 2,082,413 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, 2025
124
Original Final Actual
Variance with
Final Budget
REVENUES
Intergovernmental $ 3,600,000 $ 4,790,784 $ 152,517 $ (4,638,267) Total revenues 3,600,000 4,790,784 152,517 (4,638,267)
EXPENDITURES
Public works - 130,984 3,480 127,504
Total expenditures - 130,984 3,480 127,504
Revenues over (under) expenditures 3,600,000 4,659,800 149,037 (4,510,763)
OTHER FINANCING SOURCES (USES)
Transfers out (3,600,000) (6,119,800) (149,037) 5,970,763 Total other financing sources (uses) (3,600,000) (6,119,800) (149,037) 5,970,763 Net change in fund balances - (1,460,000) - 1,460,000
Fund balances - beginning - - - -
Fund balances - ending $ - $ (1,460,000) $ - $ 1,460,000 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, 2025
125
Original Final Actual
Variance with
Final Budget
EXPENDITURES
Current:
Public works $ 4,564,000 $ 4,868,297 $ 84,339 $ 4,783,958 Capital outlay 75,000 419,014 3,582,567 (3,163,553)
Total current 4,639,000 5,287,311 3,666,906 1,620,405
Debt service:
Interest and fiscal charges - Subscriptions - - 134,254 (134,254) Total debt service - - 134,254 (134,254)
Total expenditures 4,639,000 5,287,311 3,801,160 1,486,151 Revenues over (under) expenditures 4,639,000 5,287,311 3,801,160 1,486,151
OTHER FINANCING SOURCES (USES)
Other financing source - Loan proceeds - - 399,025 399,025 Transfers in 3,600,000 6,524,000 612,390 (5,911,610)
Transfers out - (7,000,000) (7,000,000) -
Total other financing sources (uses) 3,600,000 (476,000) (5,988,585) (5,512,585) Net change in fund balances (1,039,000) (5,763,311) (9,789,745) (4,026,434) Fund balances - beginning, as restated - - 21,845,925 21,845,925 Fund balances - ending $ (1,039,000) $ (5,763,311) $ 12,056,180 $ 17,819,491 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, 2025
126
INTERNAL SERVICE FUNDS
Equipment Replacement – Accounts for funds used to pay for the anticipated replacement of general equipment needs.
Technology Replacement – Accounts for funds used to pay for the anticipated replacement of technology 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.
127
City of Newark
Combining Statement of Net Position
Internal Service Funds
June 30, 2025
Equipment Technology Equipment
Replacement Fund Operations
ASSETS
Current assets:
Cash and investments $ 1,684,986 $ 242,458 $ 427,238
Receivables 14,217 - -
Supplies and other assets 26,686 - 80,062
Total current assets 1,725,889 242,458 507,300
Capital assets, net of accumulated depreciation 5,397,948 325,762 - Total assets 7,123,837 568,220 507,300
LIABILITIES
Current liabilities:
Accounts payable 111,618 18,902 77,783
Accrued liabilities 6,686 - 47,615
Financed purchase obligations, due within one year 368,767 - - Claims payable, due within one year - - -
Total current liabilities 487,071 18,902 125,398
Noncurrent liabilities:
Financed purchase obligations, due in more than one year 1,534,749 - - Claims payable, due in more than one year - - -
Total non-current liabilities 1,534,749 - -
Total liabilities 2,021,820 18,902 125,398
NET POSITION
Net investment in capital assets 3,494,432 325,762 -
Unrestricted (deficit) 1,607,585 223,556 381,902
Total net position (deficit) $ 5,102,017 $ 549,318 $ 381,902 128
Public Workers'
Office Building Liability Compensation
Support Maintenance Self-Insurance Self-Insurance Total $ 60,100 $ 2,882,384 $ 2,581,635 $ 4,354,571 $ 12,233,372 - 14,670 - - 28,887
- 42,277 - - 149,025
60,100 2,939,331 2,581,635 4,354,571 12,411,284
- - - - 5,723,710
60,100 2,939,331 2,581,635 4,354,571 18,134,994
10,463 304,271 12,181 6,814 542,032
133 37,269 - - 91,703
- - - - 368,767
- - 9,641 295,132 304,773
10,596 341,540 21,822 301,946 1,307,275
- - - - 1,534,749
- - 632,866 2,169,324 2,802,190
- - 632,866 2,169,324 4,336,939
10,596 341,540 654,688 2,471,270 5,644,214
- - - - 3,820,194
49,504 2,597,791 1,926,947 1,883,301 8,670,586
$ 49,504 $ 2,597,791 $ 1,926,947 $ 1,883,301 $ 12,490,780 129
City of Newark
Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds
For the year ended June 30, 2025
Equipment Technology Equipment
Replacement Fund Operations
OPERATING REVENUES:
Charges to departments $ 1,000,000 $ 500,000 $ 1,400,000 Other revenue 21,091 - 831
Total operating revenues 1,021,091 500,000 1,400,831
OPERATING EXPENSES:
Personnel services - - 805,615
Materials and supplies 27,114 141,407 447,597
Contractual services - - 365,792
Utilities - - -
Insurance claims and premiums - - -
Depreciation 839,905 44,275 -
Total operating expenses 867,019 185,682 1,619,004
OPERATING INCOME (LOSS) 154,072 314,318 (218,173)
NONOPERATING REVENUES (EXPENSES):
Interest expense (14,329) - -
Loss on disposal of asset - - -
Total nonoperating revenue (expenses) (14,329) - -
INCOME (LOSS) BEFORE TRANSFERS 139,743 314,318 (218,173) Transfers in (out) (235,000) 235,000 2,778
Total transfers (235,000) 235,000 2,778
Change in net position (95,257) 549,318 (215,395)
NET POSITION:
Beginning of year 5,197,274 - 597,297
End of year $ 5,102,017 $ 549,318 $ 381,902
130
Public Workers'
Office Building Liability Compensation
Support Maintenance Self-Insurance Self-Insurance Total $ 160,000 $ 3,502,000 $ 2,000,000 $ 1,200,000 $ 9,762,000 - 124,486 33,600 - 180,008
160,000 3,626,486 2,033,600 1,200,000 9,942,008
- 904,474 31,912 31,911 1,773,912
51,758 151,939 - - 819,815
79,325 1,169,038 - 118,922 1,733,077
- 1,178,391 - - 1,178,391
- - 1,851,577 367,226 2,218,803
- - - - 884,180
131,083 3,403,842 1,883,489 518,059 8,608,178
28,917 222,644 150,111 681,941 1,333,830
- - - - (14,329)
- - - - -
- - - - (14,329)
28,917 222,644 150,111 681,941 1,319,501
- 1,984 - - 4,762
- 1,984 - - 4,762
28,917 224,628 150,111 681,941 1,324,263
20,587 2,373,163 1,776,836 1,201,360 11,166,517
$ 49,504 $ 2,597,791 $ 1,926,947 $ 1,883,301 $ 12,490,780 131
City of Newark
Combining Statement of Cash Flows
Internal Service Funds
For the year ended June 30, 2025
Equipment Technology Equipment
Replacement Replacement Operations
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from other funds $ 1,021,091 $ 500,000 $ 1,400,831 Payments (to) from suppliers and other funds (520,317) (122,505) (786,767) Payments to employees - - (805,615)
Claim payments - - -
Net cash provided (used) by operating activities 500,774 377,495 (191,551)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES:
Payments on financed purchased obligation (93,182) - -
Acquisition of capital assets (88,270) (370,037) -
Interest paid and fiscal charges (14,329) - -
Net cash provided (used) by capital and
related financing activities (195,781) (370,037) -
Net increase (decrease) in cash
and cash equivalents 69,993 242,458 (188,773)
CASH AND CASH EQUIVALENTS:
Beginning of year 1,614,993 - 616,011
End of year $ 1,684,986 $ 242,458 $ 427,238
CASH FLOWS FROM OPERATING ACTIVITIES:
Operating income (loss) $ 154,072 $ 314,318 $ (218,173) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:
Depreciation 839,905 44,275 -
Change in assets and liabilities:
Accounts receivable and other assets (31,389) - (1,980) Accounts payable and accrued liabilities (461,814) 18,902 28,602 Total adjustments 346,702 63,177 26,622
Net cash provided (used) by operating activities $ 500,774 $ 377,495 $ (191,551) 132
Public Workers'
Office Building Liability Compensation
Support Maintenance Self-Insurance Self-Insurance Total $ 160,000 $ 3,626,486 $ 2,033,600 $ 1,200,000 $ 9,942,008 (132,633) (2,459,193) (175,380) (232,780) (4,429,575)
- (904,474) (31,912) (31,911) (1,773,912)
- - (1,851,577) (367,226) (2,218,803)
27,367 262,819 (25,269) 568,083 1,519,718
- - - - (93,182)
- - - - (458,307)
- - - - (14,329)
- - - - (565,818)
27,367 264,803 (25,269) 568,083 958,662
32,733 2,617,581 2,606,904 3,786,488 11,274,710
$ 60,100 $ 2,882,384 $ 2,581,635 $ 4,354,571 $ 12,233,372 $ 28,917 $ 222,644 $ 150,111 $ 681,941 $ 1,333,830
- - - - 884,180
- 6,182 3,767 - (23,420)
(1,550) 33,993 (179,147) (113,858) (674,872)
(1,550) 40,175 (175,380) (113,858) 185,888
$ 27,367 $ 262,819 $ (25,269) $ 568,083 $ 1,519,718
133
134
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
135
City of Newark
Net Position by Component
Last Ten Years
(accrual basis of accounting)
(dollars in thousands)
2016 2017* 2018 2019 2020 2021 2022 2023 2024 2025
Primary government
Governmental activities:
Net Investment in Capital Assets $140,414 $140,414 $143,058 $147,511 $153,456 $154,434 $157,503 $157,499 $163,903 $167,165 Restricted 26,622 39,483 42,954 31,076 89,447 74,408 88,301 101,607 113,469 110,218 Unrestricted (43,711) (37,879) (35,998) (11,034) (66,234) (31,461) (16,192) (12,147) (15,163) 9,339 Total governmental activities
net position $123,325 $142,019 $150,014 $167,553 $176,669 $197,381 $229,612 $246,959 $262,209 $286,722 * 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
$350
2016 2017* 2018 2019 2020 2021 2022 2023 2024 2025
Thousands
Net Investment in Capital Assets Restricted Unrestricted 136
a • •
City of Newark
Changes in Net Position
Last Ten Years
(accrual basis of accounting)
(dollars in thousands)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Expenses
Governmental activities:
General government $4,484 $5,337 $6,159 $6,656 $6,668 $6,827 $10,182 $11,148 $12,968 $13,560 Public safety:
Fire 9,805 10,560 11,424 10,821 16,336 11,582 12,851 12,212 13,573 14,333 Police 17,202 19,798 21,728 24,012 22,317 27,257 17,928 27,483 30,797 30,879 Public Works 5,934 6,444 8,648 16,837 14,007 13,283 10,401 13,895 17,666 16,427 Community development 3,930 5,002 6,918 2,173 1,914 2,590 2,795 3,485 3,368 4,425 Recreation and community services 4,291 5,243 7,566 6,017 5,663 5,889 4,965 5,891 7,258 7,619 Interest on long-term debt 391 373 350 330 2,430 2,165 2,183 2,207 2,395 1,851 Total governmental activities
expenses 46,036 52,757 62,792 66,845 69,335 69,592 61,305 76,321 88,024 89,094 Program revenues
Governmental activities:
Charges for services:
General government 15 13 12 11 4,309 190 84 76 70 62
Public safety:
Fire 230 323 270 193 172 158 155 110 93 83
Police 729 990 1,109 1,182 1,224 1,609 1,403 1,040 1,280 983 Public Works 2,771 3,388 905 5,367 7,374 9,583 6,630 4,180 6,330 5,403 Community development 13,492 14,269 12,482 7,422 4,105 14,220 7,610 2,641 1,367 2,538 Recreation and community services 2,458 2,801 2,459 5,899 1,883 482 1,189 1,727 2,282 2,403 Operating grants and contributions 803 642 543 891 1,051 1,909 4,221 4,155 6,457 3,231 Capital grants and contributions 2,584 2,661 2,844 5,031 4,243 3,820 6,449 4,555 5,285 6,555 Total governmental program
revenues 23,083 25,074 20,625 25,996 24,362 31,971 27,740 18,484 23,163 21,257 Net (expense)/revenue
Total governmental activities
net expense (22,953) (27,683) (42,168) (40,849) (44,973) (37,621) (33,565) (57,837) (64,862) (67,837) General revenues and other changes in net position
Governmental activities:
Taxes:
Property taxes 14,967 16,465 19,193 20,700 22,768 24,417 25,834 28,564 31,511 34,019 Sales taxes 11,092 12,949 16,433 19,041 17,442 20,475 23,680 25,515 21,360 29,068 Transient occupancy tax 5,859 6,094 6,362 6,717 5,450 2,916 4,153 4,932 5,209 6,255 Franchise fees * 2,725 3,670 3,833 3,970 0 4,177 4,732 4,731 4,927 5,158 Utility users tax 3,292 3,527 3,631 3,289 3,480 3,367 3,744 4,219 4,004 4,815 Other local taxes 1,799 1,996 2,346 2,162 2,150 2,497 2,751 2,651 2,505 2,445 Motor vehicle in-lieu 18 20 24 23 39 36 56 48 59 75
Use of money and property 189 446 900 2,045 2,497 948 (6) 3,567 9,392 9,338 Miscellaneous 2,829 1,206 1,049 686 238 950 866 957 1,146 1,185 General revenues 42,769 46,373 53,770 58,633 54,063 59,783 65,810 75,184 80,112 92,359 Loss on disposal of asset - - - - - (1,036) - - - -
Change in net position
governmental activities $19,816 $18,690 $11,602 $17,784 $9,090 $21,126 $32,245 $17,347 $15,250 $24,522 * FY20 Franchise fees were categorized as Charges for services Source: City of Newark Basic Financial Statements
Fiscal year ended June 30,
137
Fund Balances of Governmental Funds
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General Fund
Nonspendable:
Supplies and prepaid assets $ 135 $ 145 $ 153 $ 185 $ 163 $ 145 $ 145 $ 155 $ 189 $ 309 Restricted for:
Public safety - - - - - - - - 1,712 1,977
Due from Successor Redevelopment Agency 356 216 184 184 - - - - - - Committed:
Pension/OPEB Reserves - 6,424 7,785 10,789 15,989 6,824 7,672 12,388 12,968 16,232 Assigned for:
Measure GG - - - - - - - 11,631 14,663 21,160
Fire side fund - 440 440 440 440 440 - - - -
Equipment replacement 1,500 2,700 2,900 3,100 5,800 6,000 6,200 6,200 6,200 6,200 Waste disposal fund 429 429 73 631 41 - - - - -
Community development 342 513 743 2,793 1,073 - - - - - Maintenance reserve - - - - - - - - - 8,000
Unassigned 27,169 23,246 31,666 34,331 39,548 47,223 46,136 34,842 37,176 44,767 Total General Fund $ 29,930 $ 34,111 $ 43,945 $ 52,454 $ 63,054 $ 60,633 $ 60,153 $ 65,216 $ 72,906 $ 98,644 All other governmental funds
Restricted for:
Public safety 215 295 403 650 4,744 6,053 2,123 2,717 1,901 2,174 Community development 15 15 92 18,767 27,002 10,766 4,855 4,925 5,356 4,979 Transportation facilities - - - - - 10,832 11,805 12,601 12,887 13,501 Housing impact - - - - - 34,536 40,889 44,593 46,085 48,861 Park improvement 2,877 5,726 6,044 4,100 747 3,633 5,445 5,806 7,726 8,728 Art in public places - - - - - - - 1,943 1,953 1,833
Street improvements 9,608 12,884 14,559 4,164 16,744 9,973 9,844 12,940 12,240 14,560 Environmental programs 491 580 645 688 736 798 687 381 76 247 Health and welfare 37 46 35 36 25 25 25 26 318 28
Debt service 680 680 687 700 37,116 6,511 3,624 86 77 15 Landscape and lighting 762 875 981 1,195 1,454 1,714 1,906 2,074 2,215 2,337 Other purposes (i.e. PEG, State Senate Bill) - - 689 777 878 942 649 796 823 978 Committed:
Community development - General City Plan 1,121 1,907 2,242 2,793 3,700 - - - - - Assigned to:
Waste disposal fund - - - - - 19 19 19 - -
Art in public places 959 1,151 1,451 1,626 1,727 1,849 1,916 - - - Capital asset acquisition 12,770 21,715 21,859 25,105 3,107 - 7,112 16,116 21,846 12,056 Unassigned - - - - (1,692) (12,911) (2,263) (3,104) (3,897) (996) Total all other governmental funds $ 29,535 $ 45,874 $ 49,687 $ 60,601 $ 96,289 $ 74,739 $ 88,634 $ 101,918 $ 109,606 $ 109,302 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,
138
CITY OF NEWARK
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(dollars in thousands)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Revenues
Property taxes $14,967 $16,465 $19,193 $20,700 $22,768 $24,417 $25,834 $28,564 $31,511 $34,019 Other local taxes 24,655 28,151 33,145 35,179 28,522 29,255 34,328 42,048 38,005 47,741 Special assessments 460 457 507 529 671 655 639 568 667 670 Licenses, permits and fees 4,173 4,149 3,638 3,638 3,241 29,134 20,255 7,633 8,663 8,425 Other governmental agencies 3,345 3,231 3,399 5,486 4,656 5,765 8,259 8,620 11,720 11,037 Charges for services 14,430 15,738 11,960 15,471 14,797 443 1,227 1,727 2,282 2,403 Fines and forfeitures 529 822 944 966 1,029 378 605 541 509 571 Use of money and property 189 477 900 1,999 2,497 948 (6) 3,567 9,392 9,338 Other 2,982 1,793 1,250 686 238 295 227 389 478 506
Total revenues 65,729 71,284 74,935 84,654 78,419 91,290 91,368 93,657 103,227 114,711 Expenditures
Current:
General government 4,643 5,231 5,487 5,774 5,734 6,208 11,678 9,899 11,073 11,606 Public safety:
Fire 9,619 10,373 11,433 10,821 11,152 11,715 12,854 11,831 13,080 14,201 Police 16,741 17,954 19,763 20,970 22,563 33,747 23,796 25,349 26,305 27,806 Community development 4,089 4,922 6,158 1,858 1,743 2,368 3,772 3,526 3,203 4,227 Recreation 4,092 4,786 6,582 5,554 5,094 4,644 5,421 5,341 6,398 6,675 Public works 3,954 3,877 7,522 13,032 9,150 9,608 10,147 11,702 14,549 13,183 Subscriptions outlay * - - - - - - - 765 455 1,295
Capital outlay 1,321 2,844 2,957 5,840 38,645 43,511 7,236 2,287 9,180 6,772 Debt service:
Principal repayment - subscriptions * - - - - - - - 218 348 367 Interest and fiscal charges - subscriptions * - - - - - - - 6 31 18 Principal repayment 560 584 542 556 544 525 545 2,345 2,465 2,585 Interest and fiscal charges 388 369 348 330 3,172 2,509 2,490 2,605 2,356 2,233 Total expenditures 45,409 50,940 60,791 64,736 97,798 114,835 77,939 75,876 89,441 90,966 Excess (deficiency) of revenues
over (under) expenditures 20,321 20,344 14,144 19,918 (19,378) (23,545) 13,429 17,781 13,786 23,744 Other financing sources (uses)
Other financing source (subscriptions) * - - - - - - - 765 393 1,295 Other financing source (loan proceeds) - - - - - - - - 1,199 399 Transfers in 3,773 5,836 6,544 6,402 26,442 28,565 22,880 18,225 16,291 13,835 Transfers (out) (3,910) (6,201) (6,909) (6,650) (26,691) (28,578) (22,880) (18,225) (16,291) (13,840) Debt refunding - - - - 63,345 - - - - -
Bond premium less payment to refunded bond escrow agent - - - - 2,571 - - - - - Capital lease proceeds - - - - - - - - - -
Total other financing sources (uses) (138) (366) (366) (249) 65,667 (13) 0 765.26 1,593 1,689 Net change in fund balances $20,183 $19,978 $13,779 $19,669 $46,289 ($23,558) $13,429 $18,546 $15,378 $25,433 Debt service as a percentage of
noncapital expenditures 2.15% 1.98% 1.54% 1.50% 6.28% 4.25% 4.29% 7.11% 6.51% 6.28% * FY23 GASB 96 Implementation for Subscription Based Information Technology Arrangements (SBITAs) Source: City of Newark Basic Financial Statements
Fiscal year ended June 30,
139
Real Property Total Real Total
Fiscal Residential Commercial Industrial Secured Unsecured Total Direct Year Property Property Property Other Property Property Assessed (a) Tax Rate 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% 2025 10,184,362,432 1,148,063,690 2,444,895,686 313,948,241 14,091,270,049 1,405,248,873 15,496,518,922 0.16803%
CITY OF NEWARK
Assessed Value of Taxable Property
Last Ten Fiscal Years
Source: Alameda County Assessor 2015/16 - 2024/25 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
$18,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Millions
Unsecured Property Total Real Secured Property
140
CITY OF NEWARK
Property Tax Rates
All Overlapping Governments
Last Ten Fiscal Years
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 2025 1.0000 0.0070 0.0148 0.0089 0.0013 0.0686 0.0274 0.0257 1.1537 https://acgov.org/auditor/tax/districtRpts23/51427CAFunds.txt Total
Source: Alameda County Assessor 2015/16 - 2024/25 Tax Rate Table, The HdL Companies 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
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
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
141
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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 $586,386,373 1 3.78%
BMR Gateway Boulevard LLC 381,747,478 2 2.46% $205,115,404 2 2.96% Terreno Morton LLC 189,749,580 3 1.22%
Sillicon Valley Gateway Tech Center LLC 183,289,894 4 1.18% T5 Silicon Valley LP 174,839,445 5 1.13%
JMB Newpark Assoc and GGP Newpark LLC 151,408,575 6 0.98% 78,621,158 4 1.14% IPT East Bay DC LP 144,209,555 7 0.93%
Cherry Logistics Commerce Center ILP LLC 140,760,000 8 0.91% DCT Cherry Street California LP 107,713,885 9 0.70%
Leslie Salt Company 77,291,860 10 0.50%
Apple Computer INC 426,074,867 1 6.15%
Metropolitan Life Insurance Co 87,750,000 3 1.27%
Sycamore Bay LLC 55,811,022 5 0.81%
Safety Kleen of CA INC 51,838,240 6 0.75%
Cargill Inc 43,660,856 7 0.63%
Icon Owner Pool 3 West LLC 42,743,349 8 0.62%
SI XVIII LLC 41,414,100 9 0.60%
DCT Cherry Street CA LP 39,300,000 10 0.57%
Subtotal $2,137,396,645 13.79% $1,072,328,996 15.49%
Total Net Assessed Valuation:
Fiscal Year 2024/25 $2,137,396,645
Fiscal Year 2015/16 $1,072,328,996
2024/25 2015/16
Source: Alameda County Assessor 2015/16 - 2024/25 Combined Tax Rolls, The HdL Companies 142
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 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% 2025 23,699,254 31,839,573 134.3484% 708,946 32,548,519 137.3398% 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
$36.0
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Millions
Tax Levy Tax Collections
143
D ■
CITY OF NEWARK
Taxable Sales by Category
Last Ten Calendar Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024*
Apparel Stores $53.4 $60.7 $61.6 $60.5 $51.6 $26.0 $33.6 $28.3 $24.8 $23.7 General Merchandise 64.1 58.6 51.7 45.0 31.4 17.6 25.4 22.8 36.9 - Food Stores 20.2 18.0 18.0 18.0 18.2 19.7 18.7 20.5 21.2 20.7 Eating and Drinking Places 104.1 113.4 123.3 129.2 137.8 90.0 123.1 141.1 148.1 152.8 Building Materials 126.1 129.9 134.8 146.9 151.6 173.7 219.7 265.7 244.3 194.4 Auto Dealers and Supplies 266.7 266.6 261.4 260.2 248.2 228.0 306.7 524.5 395.2 294.2 Service Stations 49.2 43.6 49.6 55.3 56.1 38.7 50.7 64.7 60.3 52.7 Other Retail Stores 179.1 180.7 179.5 157.3 55.6 39.5 56.2 49.9 41.6 199.1 All Other Outlets 325.7 340.1 383.4 480.1 623.9 737.9 740.8 841.1 765.6 768.1 Total $ 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 $ 1,705.7 *2024 General Merchandise was not reported
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
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024*
Apparel Stores General Merchandise
Food Stores Eating and Drinking Places
Building Materials Auto Dealers and Supplies
Service Stations Other Retail Stores
144
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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) 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 1,199,240 602,103 67,204,513 2.27% 1,058 2025 54,355,000 7,525,433 1,903,516 1,598,265 1,520,371 66,902,585 2.06% 1,009 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. 9,839,587 9,213,300 8,628,032 8,026,806
72,550,628 72,986,087 71,686,561
69,157,595 67,204,513 66,902,585
0 10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
80,000,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Total Outstanding Debt
145
□
CITY OF NEWARK
Direct and Overlapping Governmental Activities Debt
June 30, 2025
Debt Oustanding
Percentage
Applicable (1)
Share of
Overlapping Debt
OVERLAPPING TAX AND ASSESSMENT DEBT
Alameda County $478,925,000 3.684% $17,643,597
Bay Area Rapid Transit District 2,391,260,000 1.479% 35,366,735 East Bay Regional Park District 145,930,000 2.307% 3,366,605 Ohlone Community College District 379,945,000 16.795% 63,811,763 Newark Unified School District 57,078,095 100.000% 57,078,095 Washington Township Heathcare District 460,825,000 14.479% 66,722,852 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $ 243,989,647
DIRECT AND OVERLAPPING GENERAL FUND DEBT
Alameda County General Fund Obligations $622,687,500 3.684% $22,939,808 Alameda-Contra Costa Transit District Certificates of Participation 9,600,000 4.335% 416,160 Ohlone Community College District General Fund Obligations 200,000,000 16.795% 33,590,000 City of Newark General Fund Obligations - Direct Debt 54,355,000 100.000% 54,355,000 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 111,300,968 TOTAL DIRECT DEBT 66,902,585 (3)
TOTAL OVERLAPPING DEBT 288,388,030
COMBINED TOTAL DEBT $355,290,615 (2)
Notes:
Source: 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. 146
CITY OF NEWARK
Legal Bonded Debt Margin Information
Assessed valuation:
Secured property assessed value,
net of exempt real property $15,496,518,922
Bonded debt limit: 3.75% of assessed value (a) 581,119,460 (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 54,355,000
Less: Certificates of participation and bank
refinancing not subject to limit 54,355,000
Amount of debt subject to limit -
Legal bonded debt margin $581,119,460
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
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%
2025 145,279,865 - 145,279,865 0.00%
Source: Alameda County Assessor 2015/16 - 2024/25 Combined Tax Rolls June 30, 2025
147
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 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%
2024 48,886 3,242,394 66,325 4.1% 1,662,482 2.94%
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
148
a a
■ ■
■
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 Rank Employment Lucid Motors 2,665 9.87%
WorldPac* 521 1.93% 218 0.91%
Amazon Fulfillment Center 453 1.68% 250 1.05%
Newark Unified School District 448 1.66% 953 3.99%
Costco Wholesale Store 315 1.17%
KNT Manufacturing 250 0.93%
City of Newark (2) 290 1.07%
Nordstrom Distribution Center 230 0.85%
Cargill Salt 202 0.75% 210 0.88%
Smart Modular Technologies 139 0.51% 212 0.89%
Logitech 634 2.65%
RSM - Risk Management Solutions 285 1.19%
VM Services Inc 270 1.13%
Aryzta, LLC (formerly Fullbloom Baking Co.) 168 0.70%
Macy's 160 0.67%
Total 5,513 20.42% 3,360 14.06%
Total City Labor Force (1) 27,000 23,900
*No response from business, prior year's count was applied.
The following Employers have not responded to
Neumo's employee count inquires:
1. MiTAC Information Systems & MiTAC Computing Technology
2. Moody's RMS - Risk Management Solutions
3. Aspire Bakeries
4. Cepheid Manufacturer - Declined to participate.
Source: MuniServices and Avenu Insights and Analytics Company / Neumo Results based on direct correspondence with city's local businesses. (1) Total City Lbor Force provided by Employment Development Department (2) City of Newark staff
2024-25 2016-17
149
CITY OF NEWARK
Full-Time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Function/Program:
General government 25.67 25.35 24.75 28.37 31.48 24.24 25.33 31.66 28.50 31.75 Public safety
Police 78.10 72.70 81.01 83.66 84.42 53.97 77.71 98.83 89.00 81.50 Streets and parks 18.23 18.65 21.50 19.70 20.48 19.88 21.41 51.70 52.00 49.50 Community development 16.94 23.80 23.73 25.65 28.04 26.18 22.74 11.20 16.50 17.50 Recreation 38.22 41.62 34.59 39.54 36.75 21.73 38.06 45.31 110.25 110.50 Total 177.16 182.12 185.58 196.92 201.17 146.00 185.25 238.70 296.25 290.75 Source: City of Newark
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 150
,....._ - ,....._ - - ,....._ - ,....._ ,....._
■
CITY OF NEWARK
Operating Indicators by Function/Program
Last Six Fiscal Years
2020(1) 2021(2) 2022(3) 2023 2024 2025
Function/Program
Public safety:
Fire
Fire calls for service(6) 3,423 3,550 3,772 4,069 4,438 4,261 Primary fire inspections conducted 1,940 2,291 2,494 2,029 919 1,092 Environmental safety inspections conducted 177 157 825 869 663 1,167 Police
Communication center calls answered 41,749 20,399 46,880 34,260 43,960 35,659 Police calls for service 41,749 20,399 23,656 34,260 34,544 22,196 Law violations
Part I crimes(4) 1,779 1,901 2,358 2,062 - -
Group A Offenses - - - - 3,103 2,787
Traffic violations 2,013 1,308 1,244 1,469 643 2,708
Parking violations 1,526 981 995 702 1,429 1,711
Public works:
Street resurfacing (miles) 4 1 8 8 5 5
Street lights repaired 374 548 594 677 472 113
Recreation:
Recreation class/program participants 70,132 38,110 48,373 166,046 241,905 262,761 Recreation facilities rentals 1,112 692 1,862 2,185 4,790 5,630 Silliman Activity Center use 66,265 11,962 44,962 56,714 84,335 82,640 Miscellaneous:
Library:
Library visitors 104,695 5,753 73,442 105,215 145,954 158,398 Library materials circulated 159,662 42,724 212,066 269,101 279,070 266,870 Source: Alameda County Library, Alameda County Fire, City of Newark Fiscal Year
(4) As of 2024 “Part 1 Crimes” are longer reported under uniform crime reporting. Now reporting Group A Offenses
(5) 2024 Fire calls for service total was updated in 2025 (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. 151
CITY OF NEWARK
Capital Asset Statistics by Function/Program
Last Six Fiscal Years
2020 2021 2022 2023 2024 2025
Function/Program
Public works:
Miles of streets 105 105 105 109 114 114
Street lights 2,849 2,849 2,849 3,001 3,106 3,106
Traffic signals 44 47 47 47 49 50
Recreation:
Community services:
City parks 15 15 15 15 15 15
City parks acreage 127 127 127 127 127 127
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
152
January 22, 2026
Annual Comprehensive
Financial Report
Ending June 30, 2025
Audit Results
Financial Statement Audit
• Reasonable assurance that information is
reliable and free from material misstatements
Unmodified (clean) Opinion
• Financial statements are presented fairly,
in all material respects
• Accounting policies have been consistently
applied
1 Why ACFR Results Matter to City Council
• Confirms Trust in the Numbers: Independent audit validates accuracy and confirms effective internal controls.
• Informs Budget Sustainability: Governmental fund results guide service levels, one-time revenue use, and structural balance.
• Reinforces Reserve Policy: Reserves are intentional, policy-driven safeguards—not excess cash.
• Supports Capital & Debt Decisions: Strengthens credit profile and informs cash-versus-debt strategies.
• Sets a Framework for Future Decisions: These results provide a strong foundation for continued discipline and conservative yet realistic budgeting practices.
2 3
Governmental Funds FY2024-25 Results
Governmental Funds – Fund Balance
4 FUND BALANCE
FY 2024-25 (in millions)
5 Certificate of Achievement
6 Staff Recommendation
Receive and file the FY 2024–25 Annual
Comprehensive Financial Report.
7 Thank you!