View Report Attachment A — Oakland City Council, April 19, 2022

CITY OF OAKLAND

CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2021

CITY OF OAKLAND, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2021

PREPARED BY THE FINANCE DEPARTMENT

ERIN ROSEMAN, FINANCE DIRECTOR

STEPHEN WALSH, CONTROLLER

PRINTED ON RECYCLED PAPER
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INTRODUCTORY SECTION
Letter of Transmittal .................................................................................................................... i GFOA Certificate of Achievement .............................................................................................. x Organization Chart ...................................................................................................................... xi Elected and Appointed Officials ................................................................................................. xii

FINANCIAL SECTION
Independent Auditor’s Report ..................................................................................................... 1 Management’s Discussion and Analysis (Required Supplementary Information) ..................... 5 Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position ..................................................................................................... 21 Statement of Activities .......................................................................................................... 22 Fund Financial Statements:

Balance Sheet – Governmental Funds .................................................................................. 23 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position for Governmental Activities ................................................ 24 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ...................................................................................................... 25 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities of Governmental Activities ........................................................................................................................ 26 Statement of Fund Net Position – Proprietary Funds ........................................................... 27 Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds .............................................................................................................................. 28 Statement of Cash Flows – Proprietary Funds ...................................................................... 29 Statement of Fiduciary Net Position – Fiduciary Funds ....................................................... 30 Statement of Changes in Fiduciary Net Position – Fiduciary Funds .................................... 31 Notes to the Basic Financial Statements ................................................................................... 33 Required Supplementary Information (Unaudited):

Schedule of Changes in Net Pension Liability and Related Ratios:

Police and Fire Retirement System ................................................................................ 117 CalPERS Miscellaneous Plan ......................................................................................... 118 CalPERS Safety Plan ...................................................................................................... 119 Schedule of Employer Pension Contributions:

Police and Fire Retirement System ................................................................................ 120 CalPERS Plans ............................................................................................................... 121 Schedule of Changes in Net OPEB Liability and Related Ratios:

City Retiree Health Plan ................................................................................................. 123 Port Retiree Health Plan ................................................................................................. 124

CITY OF OAKLAND
Annual Comprehensive Financial Report
Year Ended June 30, 2021
Table of Contents
Page
Schedule of Employer OPEB Contributions:

City Retiree Health Plan ................................................................................................. 125 Port Retiree Health Plan ................................................................................................. 126 Budgetary Comparison Schedule – General Fund ...................................................................... 127 Budgetary Comparison Schedule – Other Special Revenue Fund .............................................. 128 Notes to Required Supplementary Information ........................................................................... 129

COMBINING FINANCIAL STATEMENTS AND SCHEDULES
Other Governmental Funds
Combining Balance Sheet ..................................................................................................... 131 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ............ 132 Other Governmental Funds – Special Revenue Funds
Combining Balance Sheet ..................................................................................................... 133 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ............ 134 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual .......................................................................................................... 135 Other Governmental Funds – Debt Service Funds
Combining Balance Sheet ..................................................................................................... 139 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ............ 140 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual .......................................................................................................... 141 Internal Service Funds
Combining Statement of Fund Net Position ......................................................................... 145 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position ............. 146 Combining Statement of Cash Flows ................................................................................... 147 Fiduciary Funds
Private-Purpose Trust Funds
Combining Statement of Fiduciary Net Position ........................................................... 149 Combining Statement of Changes in Fiduciary Net Position ......................................... 150

STATISTICAL SECTION
Index to Statistical Section .......................................................................................................... 151 Net Position by Component ......................................................................................................... 152 Changes in Net Position .............................................................................................................. 153 Fund Balances, Governmental Funds .......................................................................................... 154 Changes in Fund Balances, Governmental Funds ....................................................................... 155 Tax Revenues by Source, Governmental Funds .......................................................................... 156 Assessed Value of Taxable Property ........................................................................................... 157 Direct and Overlapping Property Tax Rates ............................................................................... 158 Principal Property Taxpayers ...................................................................................................... 159

CITY OF OAKLAND
Annual Comprehensive Financial Report
Year Ended June 30, 2021
Table of Contents (Continued)
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Property Tax Levies and Collections .......................................................................................... 160 Taxable Sales by Category .......................................................................................................... 161 Direct and Overlapping Sales Tax Rates ..................................................................................... 162 Ratios of Outstanding Debt by Type ........................................................................................... 163 Ratios of General Bonded Debt Outstanding .............................................................................. 164 Direct and Overlapping Governmental Activities Debt .............................................................. 165 Legal Debt Margin Information .................................................................................................. 166 Pledged Revenue Coverage ......................................................................................................... 167 Demographic and Economic Statistics ........................................................................................ 168 Principal Employers .................................................................................................................... 169 Full-Time City Government Employees by Function/Program .................................................. 170 Operating Indicators by Function/Program ................................................................................. 171 Capital Asset Statistics by Function/Program ............................................................................. 172

CITY OF OAKLAND
Annual Comprehensive Financial Report
Year Ended June 30, 2021
Table of Contents (Continued)

INTRODUCTORY

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December 20, 2021
Residents of the City of Oakland
The Honorable Mayor and
Members of the City Council
The Annual Comprehensive Financial Report of the City of Oakland We are pleased to present the Annual Comprehensive Financial Report (ACFR) of the City of Oakland, California (City). The Finance Department has prepared this report to present the financial position and the changes in net position for the year ended June 30, 2021 , and the cash flows of its proprietary fund types for the same period. The basic financial statements and supporting schedules have been prepared in compliance with Section 809 of the City Charter and in accordance with Generally Accepted Accounting Principles (GAAP) for local governments, as established by the Governmental Accounting Standards Board (GASB). The information presented here should be considered in conjunction with the additional information contained in the Management’s Discussion and Analysis (MD&A) in the Financial Section of this report.

The report consists of management’s representations concerning the finances of the City. To provide a reasonable basis for making these representations, management has established a comprehensive internal control framework that is designed to protect the City’s assets from loss, theft, or misuse; to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with GAAP; and to comply with applicable laws and regulations. As the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. We believe this ACFR to be complete and reliable in all material respects.

The City contracted with Macias Gini & O’Connell LLP, a firm of Certified Public Accountants licensed to practice in the State of California, to perform the annual independent audit. The auditors expressed an opinion that the City’s financial statements for the year ended June 30, 2021 are fairly stated and in accordance with accounting principles generally accepted in the United States. This is the most favorable conclusion and is commonly known as an “unmodified” opinion. The independent auditor’s report is included in the Financial Section of this report.

In addition, Macias Gini & O’Connell LLP is auditing the City’s major program expenditures of federal funds for compliance with the Federal Single Audit Act Amendments of 1996, the Office of Management and Budget (OMB) Uniform Guidance regulating uniform administrative requirements, cost principles, and audit requirements for Single Audits, and the standards applicable to financial audits contained in the Government Auditing Standards issued by the Comptroller General of the United States. The report of the Single Audit is published separately from this ACFR and may be obtained upon request from the City’s Finance Department.
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The Reporting Entity and Its Services
The City has defined its reporting entity in accordance with GAAP that provides guidance for determining which governmental activities, organizations, and functions should be included in the reporting entity. The basic financial statements present information on the activities of the City and its component units.

GAAP requires that the component units be separated into blended, discretely presented, or included in the fiduciary funds financial statements for reporting purposes. Although legally separate entities, blended component units are, in substance, part of the City’s operations. Therefore, they are reported as part of the Primary Government. The discretely presented component unit is reported in a separate column in the government-wide financial statements to emphasize that it is legally separate from the City’s operations.

Component units that are fiduciary in nature are reported in the fiduciary funds financial statements.

Accordingly, we have included the operations of the Oakland Joint Powers Financing Authority as a blended component unit. The Oakland Redevelopment Successor Agency is included as a fiduciary component unit. The operations of the Port of Oakland (including the Oakland International Airport) are presented discretely. The Oakland-Alameda County Coliseum Authority (Authority) is a Joint Venture owned and operated by the City and the County of Alameda. The Joint Venture agreement and operations are disclosed on Note II, part I of the basic financial statements.

The Oakland Housing Authority, the Oakland Unified School District, and the Peralta Community College District were not included in the basic financial statements because they have limited relationships with the City and, therefore, did not meet the criteria for inclusion in the reporting entity.

The City is also represented in seven regional agencies that are excluded from the City’s reporting entity.

These agencies are the San Francisco Bay Area Rapid Transit District (BART), Alameda-Contra Costa County Transit District (AC Transit), Bay Area Air Quality Management District, Association of Bay Area Governments (ABAG), East Bay Regional Park District, East Bay Municipal Utility District (EBMUD), and Metropolitan Transportation Commission (MTC).

Profile of the Government
The City of Oakland was chartered as a city in 1852. It is situated on the eastern side of the Oakland/San Francisco Bay in the County of Alameda. Its western border offers nineteen miles of coastline, while the rolling hills to the east present views of the Bay and the Pacific Ocean. In between are traditional, diverse neighborhoods, a progressive downtown with numerous high-rise projects under construction, and superior cultural and recreational amenities. It is the administrative site for the County of Alameda, the regional seat for the federal government, the district location of primary state offices, and the transportation hub of commerce for the Bay Area.

Legislative authority is vested in the City Council and executive authority is vested in the Mayor. The City Administrator, appointed by the Mayor and approved by the City Council, has administrative authority to manage the day-to-day administrative and fiscal operations of the City. The City Auditor and the City Attorney are both elected officials and serve four-year terms.

The Mayor and City Council are the governing body of the City. The City Council is comprised of eight elected officials. One Council member is elected “at large”, while the other seven Council members represent specific geographic districts. The Mayor and City Council are elected to serve four-year terms.

The City provides a full range of services contemplated by statute or charter, including those functions delegated to cities under state law. These services include public safety (police and fire), sanitation and environmental health, economic development, community involvement and empowerment, public-private ii
partnerships, library, recreational and cultural activities, public improvements, planning, zoning, and general administrative services.

Economic Condition and Fiscal Outlook
The City of Oakland faced tremendous economic challenges during Fiscal Year (FY) 2020-21 but its outlook was much improved by year-end. During the first month of the fiscal year, July 2020, Oakland’s unemployment rate, as reported by the US Department of Labor, stood at 14.4% but by June 2021 it had fallen to 7.7%. Citywide employment losses due to large scale layoffs and closures soared to 3,551 in FY 2019-20 but dropped by more than half, to 1,570, in FY 2020-21. Oakland’s economy remained weakened by the pandemic at year-end but its downward trajectory was reversed.

The continued strength of the City’s real property markets has been a key stabilizing factor during the pandemic. Property tax revenues increased by almost 13% in FY 2020-21 as compared to FY 2019-20 on the basis of continued growth in property values and sales prices. Since FY 2016-17 the City’s property tax revenues have increased by 39%. Policy changes, such as voter-approved property taxes, contributed to these results, but continued growth in assessed value underlies much of the City’s recent financial performance.

The City experienced mixed results with other revenues in FY 2020-21 amidst an uneven economic recovery. Real Estate Transfer Taxes improved notably on the basis of strong sales activity, particularly for large commercial properties. Sales and Use Taxes improved relative to the prior year but remained below FY 2018-19 levels as the pandemic continued to impact consumption. Revenue from Business License Taxes stabilized, exceeding both budgeted and prior year amounts, but Transient Occupancy Taxes and Parking Taxes declined for a second consecutive year as pandemic impacts on tourism and travel persisted.

In response to economic challenges in the first half of the fiscal year, the City announced $29 million in immediate expenditure reductions in December 2020 to address a projected $62 million deficit for FY 2020-21. This deficit would have been even larger absent the utilization of approximately $10 million in federal funding from the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Five months later, however, the City received $94 million in federal subsidies under the American Rescue Plan Act (ARPA), with a second tranche in the same amount expected in May 2022. These federal subsidies enabled the City to reduce expenditures recorded in the General Fund, which in combination with revenue gains strengthened General Fund balance and the City’s overall fiscal outlook relative to expectations at the beginning of the year.

Federal and state subsidies reversed the course of the City’s finances mid-year and offered a foundation for Oakland’s fiscal and economic recovery. As provided for in the State Budget Act for FY 2020-21, the City received a pass-through allocation of $37 million in federal funds under the CARES Act. As noted above, the City committed approximately $10 million of CARES funding to eligible General Fund costs, providing a direct subsidy to essential governmental services. The balance of these funds supported a broad range of community organizations and pandemic relief initiatives, designed and delivered rapidly over a six-month period. In addition to this pass-through allocation, direct CARES allocations to the City increased funding for housing support, rental assistance, and other community services.

The federal CARES Act was followed by ARPA, which was signed into law by President Joseph R.

Biden on March 11, 2020. Under regulations promulgated by the US Treasury Department, ARPA provided the City with a State and Local Relief Fund allocation of $188 million, split evenly between FY 2020-21 and FY 2021-22. The Oakland City Council has directed these funds to replace revenue losses experienced during the pandemic and address projected budget imbalances in FY 2020-21, FY 2021-22, and FY 2022-23.
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Much uncertainty remains about the City’s prospects for further economic recovery. At the end of FY 2019-20 this uncertainty was largely focused on the trajectory of the pandemic itself. A year later prospects for the end of the pandemic have improved with the widespread adoption of vaccines and reduced community transmission of the COVID-19 virus, but surges associated with the highly contagious Delta and Omicron variants could challenge this progress. In addition, employment growth remains sluggish, inflation has risen to levels not seen in many years, and global supply chain challenges threaten a broader economic recovery.

Looking beyond current economic challenges, Oakland remains well-positioned to take advantage of ongoing regional economic growth. The City remains a desirable location and commercial and residential construction have continued throughout the pandemic as the City draws new residents and businesses.

Population growth also appears likely to continue as the substantial uptick in residential construction begun in prior years comes on line in a region with continued strong housing demand and a longstanding shortfall of supply. The City’s burgeoning tourism industry is also primed for growth with added hotel capacity in recent years. These strong fundamentals, which propelled Oakland’s economy in prior years, appear likely to support renewed growth as the public health crisis comes under greater control.

Significant Events and Accomplishments
The City of Oakland responded actively to the COVID-19 public health and economic crisis in FY 2020-21 while continuing to advance existing and new initiatives for the betterment of the City. Major initiatives to address the ongoing impacts of COVID-19 included continued support for groceries and meals to food-insecure residents, which continued through the end of the fiscal year. Over the course of the pandemic the City served more than 2 million meals through a variety of partnerships.

In addition, the City directed approximately $26 million of its $37 million CARES Act allocation from the State to a range of community-focused activities. Major initiatives and accomplishments supported by this allocation included:
• Small Business Grant Program: Distributed more than $4 million in direct financial support to Oakland-based small businesses;
• Tiny Homes for Unhoused Young Adults: Provided a safe haven and job training to unhoused young adults;
• Saba Grocers Initiative: Distributed grocery gift cards to residents in neighborhoods with high COVID rates;
• SOS Meals on Wheels: Provided over 289,000 meals to 1,700 seniors; • OAK Wifi: Expanded free wireless internet to Oaklanders to help close the digital divide; • Assistance for Artists and Arts Nonprofits: Supported the pivot from in-person performances to online engagements during the pandemic;
• Personal Protective Equipment for Small Businesses: Delivered 800 starter Personal Protective Equipment Kits for small businesses;
• Home-Based Business Grant Program: Provided grants of $2,000 to $4,000 to home-based, for- profit businesses;
• Fund for Artists and Arts Nonprofits: Provided grants to support individual artists and arts nonprofit organizations;
• Neighborhood Beautification and Homelessness: Provided grant to the Beautification Council to mitigate the spread of COVID-19 in encampments;
• Keep Oakland Housed: Provided $4.3 million in direct funding to renters and homeowners impacted by the pandemic;
• Black Cultural Zone: Provided grant support for AKOMA Market to offer food distribution and education;
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• Assistance for Small Businesses: Provided legal, marketing, and technical assistance for Oakland small businesses;
• Street Vendor Support and Grants: Provided aid to street vendors to secure permits, equipment, and supplies;
• Lake Merritt Vendor Pilot: Provided City-sanctioned space for vendors to sell and market their hand-made products;
• Business Outreach and Support: Provided linguistically and culturally appropriate outreach and support to local small businesses;
• Workforce Support Programs: Provided employment support services to Oaklanders impacted by COVID-19;
• Oakland Frontline Healers: Provided a grant to Oakland Frontline Healers to support food and shelter services for Oakland residents;
• Nonprofit Grant Program: Provided grants to Oakland-based community-serving nonprofit organizations;
• Food Scarcity, Childcare, COVID Education: Provided funding to community service programs; • Cultural Institution Operating Grants: Provided grants to cultural organizations operating on City- owned property; and
• Facility Resilience: Provided safe access to City services & enhanced COVID prevention protocols at City facilities.

As in prior years, the City continued to prioritize housing security in its services to Oakland residents.

Oakland’s eviction moratorium remained in place throughout FY 2020-21 and continued into the current fiscal year despite the expiration of a statewide moratorium. The City also led efforts to keep Oaklanders in their homes through its Emergency Rental Assistance Program. In addition, the City expanded its efforts to provide shelter directly through the lease of a 92-bed hotel utilized as a non-congregate shelter for emergency COVID-19 response housing.

Oakland’s efforts to reform local policing continued throughout the year and culminated in the publication of a report by the Oakland Reimagining Public Safety Task Force. Recommendations from the report addressed a broad range of subjects, from officer recruitment and oversight to expanded services for mental health and violence prevention. These recommendations appear likely to spur further discussion and policy changes over the coming years and provide a roadmap for reconsidering the City’s longstanding approaches to public safety.

Budget Process and Controls
The City’s budget is a detailed operating plan that identifies estimated costs in relation to estimated revenues. The budget includes:
• Programs, projects, services, and activities to be carried out during the fiscal year; • Estimated revenue available to finance the operating plan; and • Estimated spending requirements for the operating plan.

The budget represents a process where policy decisions by the Mayor and the City Council are adopted, implemented and controlled. The notes to the required supplementary information summarize the budgetary roles of various City officials and the timetable for their budgetary actions per the City Charter.

The City Charter prohibits expending monies for which there is no legal appropriation. Therefore, the City is required to adopt budgets for all City funds. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established at the fund level, although for management purposes, the line item budget is controlled at the departmental level within funds. The City Administrator is authorized to administer the budget and may transfer monies from one v
activity, program, or project to another within the same agency and fund. Supplemental appropriations or transfers of appropriations between funds or agencies must be approved by the City Council.

The City also maintains an encumbrance accounting system to provide budgetary controls for governmental funds. Encumbrances which would result in an overrun of an account balance are suspended in the system until additional funding is made available via budget change requests or withdrawn due to lack of funding. Encumbrances outstanding at June 30 and carried forward are reported as assigned of the appropriate governmental fund’s fund balance since they do not constitute expenditures or liabilities. Encumbrances that do not lapse but are brought forward to the new fiscal year are incorporated as part of the budget adopted by the City Council for that year.

The City Council receives quarterly reports on the City’s revenues and expenditures compared to budget as a management tool to pro-actively monitor the City’s fiscal condition. The City continues to meet its responsibility for sound financial management as demonstrated by the statements and schedules included in the financial section of this report.

On June 24, 2021, the City Council approved the FY 2021-23 Adopted Policy Budget. The Budget incorporates the following four Mayoral priorities:
• Holistic Community Safety
• Housing, Economic and Cultural Security
• Vibrant, Sustainable Infrastructure
• Responsive, Trustworthy Government
In addition, the Budget builds on four policy and budget priorities approved by the City Council, which are based on the values of equity, transparency, and effectiveness:
• Affordable housing and homelessness solutions
• Public safety and violence prevention
• Good jobs and vibrant economy
• Clean, healthy, sustainable neighborhoods
The FY 2021-23 Adopted Budget incorporated two notable innovations. To increase transparency and communicate effectively to Oakland residents, the Adopted Budget was presented on an interactive on- line accessible platform, OpenGov. This interactive budget tool was designed to allow the user to dig into the details and view data in various forms. It also allows the user to translate the document and search by text. The Budget also incorporated a Racial Equity Analysis tool for the first time. This tool was used to a s s e s s h o w p r o p o s e d s e r v i c e c h a n g e s w o u l d i m p a c t l o w - i n c o m e   B l a c k , I n d i g e n o u s , a n d o t h e r c o m m u n i t i e s   o f c o l o r ( B I P O C ) , a n d w a s i n t e n d e d t o h i g h l i g h t t h e c o l l e c t i v e i m p a c t o n t h e B I P O C community of disparate budget decisions.

The Adopted Budget is balanced and appropriated more than $3.95 billion over Fiscal Years 2021-22 and 2022-23. No layoffs were required to achieve balance and the budget reinstated the City’s prudent fiscal policies of paying down unfunded liabilities and strengthening the City’s Vital Services Stabilization Fund (VSSF) and General Purpose Fund reserves.

The Five-Year Financial Forecast
In March 2021, the City issued a Five-Year Financial Forecast for Fiscal Years 2021-22 through 2025-26.

The purpose of the Five-Year Financial Forecast is to help the City of Oakland make informed financial and operational decisions by better anticipating long-term future revenues, expenditures, and financial risks. The forecast issued in March 2021 was a point in time projection based on somewhat different vi
economic conditions than the City now faces but highlighted persistent gaps between projected expenditures and estimated revenues, particularly in the earlier years of the forecast. These gaps appear likely to be mitigated by City Council actions to reserve federal ARPA funds to replace pandemic-related revenue losses yet point to ongoing risks to the City’s finances. Expenditure growth is primarily driven by personnel costs, particularly City contributions towards active and retiree medical benefits and pensions.

Revenue growth is expected to accelerate as the pandemic recedes but substantial uncertainty remains about the timing and magnitude of such recovery. These uncertainties underscore the importance of long- term financial planning for the City’s continued fiscal health.

Consolidated Fiscal Policy
On December 9, 2014, the City Council passed Ordinance No. 13279 C.M.S. amending the City’s Financial Policy to add the Rainy Day Policy and consolidate all the City’s fiscal policies into a single Consolidated Fiscal Policy. This amendment allowed the City to establish the VSSF to stabilize the provision of vital services, protect against service reductions, and prevent layoffs, furloughs, and similar measures in times of economic hardship. Additionally, this policy addressed procedures that allow for accelerating debt repayment, and paying down unfunded long-term obligations by modifying the definition of excess Real Estate Transfer Tax. The Consolidated Fiscal Policy includes policies on budgeting practices, reserve funds, the budget process, fiscal planning, and public participation.

On May 15, 2018, the City Council passed Ordinance No. 13487 C.M.S. amending requirements related to the use of excess Real Estate Transfer Tax (RETT), adding new requirements intended to reduce the potential for future increases in negative fund balances, and revising various budget procedures.

These City policies include provisions for the use of reserves during emergencies. As of June 30, 2021, the VSSF has a balance of $251,000 following the appropriation of its full balance to address budget shortfalls in FY 2020-21. The Adopted Budget for FY 2021-23 provides for two deposits totaling $5 million to initiate the restoration of this reserve. As of June 30, 2021, the City’s General Purpose Fund Emergency Reserve has a balance of $52.7 million, exceeding the required level of 7.5% of FY 2020-21 General Purpose Fund appropriations, or $48.3 million.

OPEB Funding Policy
On February 26, 2019, the City Council adopted Resolution No. 87551 C.M.S. establishing the Other Post-Employment Benefits Funding Policy providing for ongoing prefunding contributions of 2.5% of payroll, equal to approximately $10 million per year. These amounts are in addition to pay-as-you-go requirements and are intended to support the sustainability of the City’s retiree medical program. On June 2, 2020, the City Council postponed these contributions for FY 2019-20 and FY 2020-21, consistent with emergency provisions in this policy, in response to the financial crisis accompanying the COVID-19 pandemic. As provided for in the Adopted Budget for FY 2021-23, the City will resume contributions consistent with policy requirements.

Single Audit
As a recipient of Federal, State, and County financial assistance, the City is responsible for providing assurance that adequate internal controls are in place to ensure compliance with applicable laws and regulations. These controls are periodically evaluated by management, the City Auditor’s Office (internal), and the City’s independent auditors (external).

As part of the City’s single audit procedures, tests are performed to determine the effectiveness of the internal controls over major federal award programs and the City’s compliance with applicable laws and regulations related to these federal award programs.
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Debt Management and Credit Ratings
The City’s Debt Management Policy is reviewed and adopted annually by the City Council. The goal of the Debt Management Policy is to set prudent guidelines to ensure that the City’s debt portfolio is fiscally stable. It is in place to maintain long-term financial flexibility while ensuring that the City’s capital needs are adequately supported. The Debt Management Policy establishes the following equally important objectives:
• To achieve the lowest possible cost of capital for the City; • To achieve the highest practical credit rating;
• Maintain full and complete financial disclosure and reporting; • Ensure timely repayment of debt;
• Maintain a prudent level of financial risk;
• Utilize local and disadvantaged banking and financial firms, whenever possible; and • Ensure compliance with applicable State and Federal laws.

The City is also committed to securing the City’s long-term financial health by taking direct actions to address unfunded liabilities. These actions include: improving the funded ratios of CalPERS Safety and Miscellaneous pension plans, reducing the City's unfunded liability for other postemployment benefits through ongoing prefunding contributions and benefit reforms, and continued progress in reducing longstanding negative fund balances.

The City’s general obligation bonds credit ratings of Aa1/AA with a stable outlook from Moody’s Investors Service, Inc. and S&P Global Ratings, respectively, reflect the City’s sustained fiscal prudence and strong economic underpinnings. The rating agencies continue to cite the City's strong fiscal management as a key factor in their favorable view of the City's credit. These ratings translate to significant interest cost savings in the City’s debt program and to the taxpayers of the City of Oakland.

The Management’s Discussion and Analysis section of this report provides additional information on the City's credit ratings.

Awards
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Oakland for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2020. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized ACFR whose contents conform to program standards. The ACFR must satisfy both generally accepted accounting principles and applicable legal requirements.

The Certificate of Achievement is valid for a period of one year only. The City of Oakland has received a Certificate of Achievement the last 30 years. The City’s Fiscal Year 2020-21 ACFR will be submitted to GFOA for consideration for the Certificate of Achievement for Excellence in Financial Reporting.

Acknowledgments
The preparation of this ACFR represents the culmination of a concerted team effort by the entire staff of the Finance Department, most particularly the Controller’s Bureau, Treasury Bureau, City Administrator’s Office, City Attorney’s Office, Human Resources, and other departmental staff, who have demonstrated their professionalism, dedication and efficiency in the preparation of this report. We also thank Macias Gini & O’Connell LLP for their assistance and guidance. viii
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Finally, we wish to express our sincere appreciation to the Mayor and the members of the City Council for providing policy direction and their interest and continuing support in planning and conducting the City’s financial operations in a fiscally responsible and progressive manner.

Respectfully submitted,
EDWARD D. REISKIN ERIN ROSEMAN
City Administrator Finance Director

STEPHEN WALSH
Controller

CITY OF OAKLAND ORGANIZATION CHART
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FINANCIAL

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4 This section of the City of Oakland’s (the City) Annual Comprehensive Financial Report provides an overview and analysis of the financial activities of the City for the year ended June 30, 2021 . We encourage readers to consider the information presented here in conjunction with the additional information contained in the City’s financial statements and related notes and our letter of transmittal that precedes this section.

FINANCIAL HIGHLIGHTS
The government-wide statement of net position for the City’s governmental and business-type activities indicates that as of June 30, 2021 , total assets and deferred outflows of resources exceed total liabilities and deferred inflows of resources by $96.3 million compared to a negative net position of $65.0 million at June 30, 2020:
• $1.3 billion of net position represents the City’s investment in capital assets, less any related outstanding debt and related deferred outflows and inflows of resources used to acquire those assets (net investment in capital assets). These capital assets are used to provide services to citizens and are not available for future spending.
• $779.7 million represents resources that are subject to restrictions on their use and are available to meet the City’s ongoing obligations for programs, of which $368.1 million is restricted for Housing and Community Development programs, $328.3 million pertains to Low and Moderate Income Housing Redevelopment, and $24.2 million is restricted for debt service. • $2.0 billion represents a deficit in unrestricted net position that has primarily resulted from the underfunding of the pension and other postemployment benefits (OPEB) liabilities, and other unfunded long-term liabilities (unrestricted net position). The net pension and OPEB liability deficits are the biggest contributing factors at $1.8 billion and $0.8 billion , respectively. The remaining changes in net position are discussed below.
• $109.6 million of the $161.3 million improvement in net position was derived from increases in general revenues including $49.9 million in property tax, $33.9 million in other revenues, $31.7 million in voter-approved special tax, and $21.8 million in real estate transfer tax. $6.1 million is due to the combined impact of changes to pension and OPEB deferred outflows, liabilities, and deferred inflows on pension and OPEB expense. While net OPEB liability increased by $244.3 million and net pension liability increased by $83.9 million, these amounts were partially offset by deferred inflows and outflows related to pensions and OPEB of $87.7 million. • The government-wide increase in net position was also supported by a $12.9 million increase in net position from the business-type activities, mainly the Sewer-related activities.

Total fund balances for the City’s governmental funds of $1.1 billion represents a decrease of 1.0 percent, or $11.0 million, compared to the prior fiscal year. This decrease results from changes in restricted fund balance due to growth in pension property tax override receipts and settlements, partially offset by the expenditures of bond proceeds received in prior years, as well as improvement in unassigned general fund balance arising from federal funding associated with the COVID-19 global pandemic. The General Purpose Fund Emergency Reserve increased to $52.7 million, exceeding the amount required under the City's Consolidated Fiscal Policy of 7.5 percent of FY 2020-21 General Purpose Fund appropriations, or $48.3 million.

CITY OF OAKLAND
Management’s Discussion and Analysis (Unaudited)
Year Ended June 30, 2021
5 OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis are intended to introduce the City’s basic financial statements. The City’s basic financial statements consist of four components:
• Government-wide Financial Statements
• Fund Financial Statements
• Notes to the Basic Financial Statements
• Required Supplementary Information
In addition, this report also contains other supplementary information.

Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to the financial statements for a private-sector business.

The statement of net position presents information on all the City’s assets, deferred outflows and inflows of resources, and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods, such as revenues pertaining to uncollected taxes and expenses pertaining to earned but unused vacation and sick leave.

Both government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, community and human services, community and economic development, and public works and transportation. The business-type activities of the City include the sewer service system and the parks and recreation. The government-wide financial statements do not include the fiduciary funds, which comprise the private- purpose trust funds, pension trust funds, and custodial fund. Resources in the fiduciary funds are not available to support the City’s own programs.

The government-wide financial statements include the primary government of the City and the Port of Oakland (Port), as a discrete component unit. Financial information for the Port is reported separately from the financial information presented for the primary government. Further information about the Port can be obtained from the Port Financial Services Division, 530 Water Street, Oakland, CA 94607 or visit the website at www.portofoakland.com.

CITY OF OAKLAND
Management’s Discussion and Analysis (Unaudited)
Year Ended June 30, 2021
6 Fund Financial Statements
The fund financial statements are designed to report information about groupings of related accounts that are used to maintain control over resources that have been segregated for specific activities or objectives.

The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All the funds of the City can be divided into the following three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. Most of the City’s basic services are reported in governmental funds. However, unlike the government-wide financial statements, governmental fund financial statements focus on the near-term inflows and outflows of spendable resources, as well as on the balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the City’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the City’s near-term financing decisions. Both the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City maintains several individual governmental funds organized according to their type (special revenue, capital projects, debt service, and general fund). Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for the general fund, the federal/state grant fund, the low and moderate income housing asset fund (LMIHF), the municipal capital improvement fund, and the other special revenue fund, all of which are considered to be major funds. Data from the remaining funds are combined in a single, aggregated presentation. Individual fund data for each of the nonmajor governmental funds is provided in the form of combining statements elsewhere in this report.

The City adopts an annual appropriated budget for its governmental funds. A budgetary comparison schedule has been provided for the general fund and the other special revenue fund in the required supplementary information to demonstrate compliance with this budget.

Proprietary Funds. Proprietary funds are generally used to account for services for which the City charges customers, either outside customers or internal units or departments of the City. Proprietary funds provide the same type of information shown in the government-wide statements only in more detail.

The City maintains the following two types of proprietary funds:
(1) Enterprise Funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for the operations of the Sewer Service System and the Parks and Recreation operations. The sewer service fund is considered to be a major fund of the City. (2) Internal Service Funds are used to report activities that provide services and supplies for certain City programs and activities. The City uses internal service funds to account for its fleet of vehicles, radio and communication equipment, facilities management, printing and reproduction, central stores, purchasing, and information technology. Because these services predominantly

CITY OF OAKLAND
Management’s Discussion and Analysis (Unaudited)
Year Ended June 30, 2021
7 benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. The internal service funds are combined into a single, aggregated presentation in the proprietary funds financial statements.

Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report.

Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of employees and parties outside the City. The Police and Fire Retirement System (PFRS) Fund is reported as a pension trust fund. The private-purpose trust funds along with the custodial fund are also reported as fiduciary funds since their resources are not available to support the City’s own programs. For this reason, they are not reflected in the government-wide financial statements. The accounting used for fiduciary funds is much like that used for proprietary funds.

Notes to the Basic Financial Statements
The notes to the basic financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.

Required Supplementary Information
The required supplementary information includes the budgetary schedule for the general fund and the other special revenue fund, schedules of changes in the net pension liability and related ratios and pension plan contributions, and schedules of changes in the net OPEB liability and related ratios and OPEB plan contributions.

Other Information
In addition, this report presents combining statements and schedules referred to earlier in connection with nonmajor governmental funds, internal service funds, and fiduciary funds that immediately follow the required supplementary information.

Government-Wide Financial Analysis
Net position may serve over time as a useful indicator of the City’s financial condition. As of June 30, 2021, total assets and deferred outflows of resources exceed the total liabilities and deferred inflows of resources by $96.3 million compared to a negative net position of $65.0 million at June 30, 2020, which represents an increase in net position of $161.3 million . Current and other assets increased by $200.7 million, primarily due to increased federal funding and growth in property tax revenues. Additionally, capital assets increased by $17.4 million. These amounts were offset by increases in the net pension and OPEB liabilities. The City’s net position also reflects the net investment in capital assets of $1.3 billion for governmental and business-type activities. Of the remaining balance, $779.7 million of net position is subject to external restrictions on how it may be used. The unrestricted net position of negative $2.0 billion is comprised of a deficit balance of $2.0 billion for governmental activities, and a positive balance of $28.8 million for business-type activities. As of June 30, 2021 , unrestricted net position for governmental and business-type activities increased by $123.6 million as compared to balances at June 30, 2020.

CITY OF OAKLAND
Management’s Discussion and Analysis (Unaudited)
Year Ended June 30, 2021
8 Condensed Statements of Net Position
June 30, 2021 and 2020 (In thousands)
Governmental
Activities
Business-type
Activities Total
2021 2020 2021 2020 2021 2020
Assets:

Current and other assets $ 2,136,443 $ 1,945,415 $ 91,994 $ 82,302 $ 2,228,437 $ 2,027,717 Capital assets 1,440,601 1,423,245 255,239 255,190 1,695,840 1,678,435 TOTAL ASSETS 3,577,044 3,368,660 347,233 337,492 3,924,277 3,706,152 Deferred Outflows of Resources:

Losses on refunding of debt 12,268 13,513 — — 12,268 13,513 Related to pensions 339,194 317,386 908 2,045 340,102 319,431 Related to OPEB 221,051 40,797 4,527 556 225,578 41,353 TOTAL OUTFLOWS 572,513 371,696 5,435 2,601 577,948 374,297 Liabilities:

Long-term liabilities 1,045,103 1,139,168 26,359 29,072 1,071,462 1,168,240 Other liabilities 467,428 318,401 3,117 5,647 470,545 324,048 Net pension liability 1,754,458 1,672,538 46,916 44,896 1,801,374 1,717,434 Net OPEB liability 827,123 588,107 15,713 10,462 842,836 598,569 TOTAL LIABILITIES 4,094,112 3,718,214 92,105 90,077 4,186,217 3,808,291 Deferred Inflows of Resources:

Gains on refunding of debt 2,785 3,026 316 356 3,101 3,382 Related to pensions 2,854 38,163 — 1,283 2,854 39,446 Related to OPEB 210,886 290,396 2,876 3,952 213,762 294,348 TOTAL INFLOWS 216,525 331,585 3,192 5,591 219,717 337,176 Net Position:

Net investment in capital assets 1,102,435 1,142,803 228,564 225,762 1,330,999 1,368,565 Restricted 779,672 704,387 — — 779,672 704,387
Unrestricted (deficit) (2,043,187) (2,156,633) 28,807 18,663 (2,014,380) (2,137,970) TOTAL NET POSITION $ (161,080) $ (309,443) $ 257,371 $ 244,425 $ 96,291 $ (65,018) Governmental activities: The City’s net position in governmental activities increased by $148.4 million.

Total assets increased by $208.4 million, or 6.2 percent, to $3.6 billion. The significant changes in assets occurred in the following areas:
• Current and other assets increased by $191.0 million , primarily due to cash and receivables associated with increased federal funding in response to the COVID-19 pandemic and growth in property tax revenues arising from change-in-ownership reassessments on commercial and residential properties.

Total liabilities increased by $375.9 million, or 10.1 percent to $4.1 billion. The significant changes in liabilities occurred in the following areas:
• Long-term liabilities decreased by $94.1 million million primarily due to the retirement of long-term debt.
• Net pension liability increased by $81.9 million due primarily to interest on the total pension liability and reduced net investment income.

CITY OF OAKLAND
Management’s Discussion and Analysis (Unaudited)
Year Ended June 30, 2021
9 • Net OPEB liability increased by $239.0 million mainly due to a change in the discount rate used for actuarial estimates, which was reduced following the suspension of contributions to the irrevocable trust.

Net position increased by $148.4 million to a deficit $161.1 million as of June 30, 2021 from a deficit $309.4 million at June 30, 2020. The City net position can be divided into three categories: net investment in capital assets, restricted, and unrestricted.
• $1.1 billion of net position reflects the City's investment in capital assets (e.g., land, buildings infrastructure, facilities and equipment), net of any related outstanding debt and debt-related deferred outflows and inflows of resources that was used to acquire those assets. The City uses these capital assets to provide a variety of services to citizens. These assets, therefore, are not available for future spending.
• $779.7 million of net position represents resources that are subject to restrictions on how they may be used and are therefore restricted.
• $2.0 billion of net position represents a deficit in unrestricted net position that has primarily resulted from the underfunding of pension and OPEB liabilities, as well as liabilities for pension obligation bonds.

CITY OF OAKLAND
Management’s Discussion and Analysis (Unaudited)
Year Ended June 30, 2021
10 The following table indicates the changes in net position for governmental and business-type activities:

Condensed Statements of Activities
Years Ended June 30, 2021 and 2020
(In thousands)
Governmental
Activities
Business-type
Activities Total
2021 2020 2021 2020 2021 2020
Revenues:

Program revenues
Charges for services $ 170,468 $ 192,693 $ 69,764 $ 68,335 $ 240,232 $ 261,028 Operating grants and contributions 206,509 130,396 — — 206,509 130,396 Capital grants and contributions 3,178 2,446 — — 3,178 2,446 Total program revenues: 380,155 325,535 69,764 68,335 449,919 393,870 General revenues:

Property taxes 438,237 388,322 — — 438,237 388,322 State taxes:

Sales and use taxes 88,888 83,678 — — 88,888 83,678 Gas tax and motor vehicle in-lieu 17,640 17,663 — — 17,640 17,663 Local taxes:

Business license 104,232 98,036 — — 104,232 98,036 Utility consumption 51,801 49,831 — — 51,801 49,831 Real estate transfer 113,359 91,534 — — 113,359 91,534 Transient occupancy 13,497 24,920 — — 13,497 24,920 Parking 11,590 17,312 — — 11,590 17,312
Voter-approved special tax 93,151 61,492 — — 93,151 61,492 Franchise 19,901 19,774 — — 19,901 19,774
Interest and investment income 18 24,126 (41) 1,108 (23) 25,234 Other 80,250 46,373 — 2 80,250 46,375
Total revenues 1,412,719 1,248,596 69,723 69,445 1,482,442 1,318,041 Expenses:

General government 222,718 186,580 — — 222,718 186,580 Public safety 511,184 409,740 — — 511,184 409,740 Community and human services 134,097 150,513 — — 134,097 150,513 Community and economic development 186,777 99,995 — — 186,777 99,995 Public works and transportation 149,611 137,937 — — 149,611 137,937 Interest on long-term debt 63,964 63,438 — — 63,964 63,438 Sewer — — 54,181 50,717 54,181 50,717
Parks and recreation — — 725 683 725 683
Total expenses 1,268,351 1,048,203 54,906 51,400 1,323,257 1,099,603 Changes in net position before transfers 144,368 200,393 14,817 18,045 159,185 218,438 Transfers 1,871 1,745 (1,871) (1,745) — —
Changes in net position 146,239 202,138 12,946 16,300 159,185 218,438 Net Position:

Beginning of year, as restated* (307,319) (511,581) 244,425 228,125 (62,894) (283,456) End of year $ (161,080) $ (309,443) $ 257,371 $ 244,425 $ 96,291 $ (65,018) *Beginning net position of governmental activities was increased by $2.1 million as a result of the implementation of GASB Statement No. 84, Fiduciary Activities. Prior year amounts have not been restated for the change.

CITY OF OAKLAND
Management’s Discussion and Analysis (Unaudited)
Year Ended June 30, 2021
11 Governmental activities: Net position for governmental activities increased by $148.4 million during fiscal year 2020-21. Total revenue increased by 13.1 percent and expenses increased by 21.0 percent. For comparison, during fiscal year 2019-20, revenues increased at a rate of 1.1 percent and expenses decreased by 2.8 percent.

Changes in net position for governmental activities are attributed to the following significant elements:
• Several factors contributed to the increase in total revenues. Operating grants and contributions increased by $76.1 million , or 58.4 percent , primarily due to increased federal funding associated with the COVID-19 pandemic. Property tax increased by $49.9 million , or 12.9 percent , due to increases in assessed values from change in ownership reassessments, inflationary assessed value adjustments, and increases from voter-approved measures. Voter-approved special tax increased by $31.7 million, or 51.5 percent, largely on the basis of the implementation of Measure Q, the Oakland Parks and Recreation Preservation, Litter Reduction, and Homelessness Support Act, which was approved by voters in 2020. Real estate transfer tax increased by $21.8 million , or 23.8 percent .

Other revenues increased by $33.9 million, or 73.1 percent, based on additions of $18.0 million for the City's share of the former Raiders training facility held for resale, $13.7 million from the transfer of excess bond proceeds from ORSA to the City, $12.0 million received for naming rights to the Kaiser Convention Center, and $10.0 million in revenues received from the Oakland-Alameda County Coliseum Authority following the conclusion of legal efforts by the Golden State Warriors to terminate their obligations to continue to make lease rental payments on the Oakland Arena. Other economically-sensitive revenues declined for a second consecutive year due to the continued impacts of the COVID-19 pandemic. Transient occupancy tax declined by $11.4 million , or 45.8 percent , while parking tax declined by $5.7 million, or 33.1 percent. • Public safety expenses increased by $101.4 million, or 24.8 percent, primarily due to a change in the discount rate used for actuarial estimates of OPEB expense, which was reduced following the suspension of contributions to the irrevocable trust.
• Community and economic development expenses increased by $86.8 million , or 86.8 percent , primarily due to grant activity associated with the COVID-19 pandemic. • General government expenses increased by $36.1 million , or 19.4 percent , primarily due to grant activity associated with the COVID-19 pandemic and increased litigation expense.

CITY OF OAKLAND
Management’s Discussion and Analysis (Unaudited)
Year Ended June 30, 2021
12 Revenues By Source - Governmental Activities
Property taxes

31.0%
Charges for services

12.1%
Grants and contributions

14.8%
Other taxes

4.4%
Sales and Use Tax

6.3%
Utility Consumption Tax

3.7%
Voter Approved Special Tax

6.6%
Real Estate Transfer Tax

8.0%
Business License Tax

7.4%
Interest & Investment Income and Other

5.7%
`
Expenses - Governmental Activites
General Government

17.6%
Public Safety

40.3%
Community & Human Services

10.6%
Community & Economic Development

14.7% Public Works and Transportation

11.8%
Interest on Long-Term Debt

5.0%

CITY OF OAKLAND
Management’s Discussion and Analysis (Unaudited)
Year Ended June 30, 2021
13 Business-type activities: Business-type activities ended the fiscal year with an increase in net position of $12.9 million due primarily to positive operating results in the Sewer Fund of $13.0 million, which are intended to support future capital projects.

Financial Analysis of the Governmental and Proprietary Funds Governmental funds: The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

General Fund: The general fund is the chief operating fund of the City. At June 30, 2021, its unassigned fund balance is $96.9 million or 20.9 percent of the $464.0 million total general fund balance.

General Fund Revenues
Taxes 84.4%
Licenses & Permits 0.1%
Grants & Subventions 0.6%
Fines & Penalties 2.0% Charges for Services 9.4%
Annuity Income 0.6%
Other & Interest Income 2.9%

CITY OF OAKLAND
Management’s Discussion and Analysis (Unaudited)
Year Ended June 30, 2021
14 For the year ended June 30, 2021 and 2020, revenues for the general fund are distributed as follows (in thousands):

General Fund Increase / (Decrease)
2021 2020 Amount %
Revenues:

Taxes:

Property taxes $ 377,175 $ 342,052 $ 35,123 10.3 %
State taxes:

Sales and use taxes 57,825 55,517 2,308 4.2 %
Motor vehicle in-lieu tax 318 343 (25) -7.3 %
Local taxes:

Business license 104,232 98,040 6,192 6.3 %
Utility consumption 51,801 49,831 1,970 4.0 %
Real estate transfer 113,359 91,534 21,825 23.8 %
Transient occupancy 10,610 19,578 (8,968) -45.8 %
Parking 6,264 9,067 (2,803) -30.9 %
Voter-approved special tax 8,155 9,413 (1,258) -13.4 % Franchise 19,679 19,533 146 0.7 %
License and permits 1,243 1,606 (363) -22.6 %
Fines and penalties 17,591 18,702 (1,111) -5.9 %
Charges for services 83,173 97,848 (14,675) -15.0 % Federal and state grants and subventions 4,983 3,586 1,397 39.0 % Annuity income 5,120 6,107 (987) -16.2 %
Interest and other 25,693 9,922 15,771 158.9 %
Total revenues $ 887,221 $ 832,679 $ 54,542 6.6 %

General Fund Revenues: Significant change in revenues include:
• Property taxes increased by $35.1 million , or 10.3 percent . This is mainly due to increases in assessed values.
• Real estate transfer tax increased by $21.8 million, or 23.8 percent, primarily due to growth in sales of high value properties.
• Transient occupancy tax decreased by $9.0 million , or 45.8 percent , primarily due to declines in travel activity associated with the global COVID-19 pandemic. • Parking tax decreased by $2.8 million, or 30.9 percent, primarily due to declines in travel activity associated with the global COVID-19 pandemic.
• Charges for services decreased by $14.7 million or 15.0 percent , primarily due to a decrease in parking fee revenue associated with the global COVID-19 pandemic. • Interest and other revenues increased by $15.8 million , or 158.9 percent , due primarily to the acquisition of the Raiders former training facility, which was partially offset by a decline in interest income resulting from a reduction in the value of an annuity held by the City to fund PFRS obligations.

CITY OF OAKLAND
Management’s Discussion and Analysis (Unaudited)
Year Ended June 30, 2021
15 For the years ended June 30, 2021 and 2020, expenditures for the general fund by function are distributed as follows (in thousands):

General Fund Increase / (Decrease)
2021 2020 Amount %
Expenditures:

Current:

General Government $ 184,053 $ 163,102 $ 20,951 12.8 % Public Safety 446,722 488,474 (41,752) -8.5 %
Community and Human Services 46,613 54,344 (7,731) -14.2 % Community and Economic Development 15,678 10,040 5,638 56.2 % Public Works and Transportation 36,172 42,600 (6,428) -15.1 % Capital outlay 3,391 2,915 476 16.3 %
Debt Service:

Principal repayment 440 656 (216) -32.9 %
Bond issuance costs 137 128 9 N/A
Interest charges 784 1,296 (512) -39.5 %
Total Expenditures $ 733,990 $ 763,555 $ (29,565) -3.9 %

General Fund Expenditures
General government 25.1%
Community & human svcs. 6.4%
Public works & transp. 4.9%
Public safety 60.9%
Community & economic
development 2.1%
Capital outlay & debt service 0.6%

CITY OF OAKLAND
Management’s Discussion and Analysis (Unaudited)
Year Ended June 30, 2021
16 General Fund Expenditures: Significant changes in expenditures are as follows:
• General government increased by $21.0 million, or 12.8 percent, primarily due to increased insurance and litigation expense.
• Public safety decreased by $41.8 million, or 8.5 percent, primarily due to the transfer of expenditures to the Federal/State Grant Fund.
• Community and human services decreased by $7.7 million , or 14.2 percent , primarily due to decreased recreational and human services expenditures resulting from the COVID-19 pandemic. • Community and economic development increased by $5.6 million, or 56.2 percent, primarily due to increased loan expenditures from the Affordable Housing Trust Fund. • Public works and transportation decreased by $6.4 million, or 15.1 percent, primarily due to reduced litigation expense and increased personnel vacancies.

Federal/State Grant Fund: The Federal/State Grant Fund has a fund balance of $21.9 million as of June 30, 2021 which represents a decrease of $6.1 million from the prior fiscal year due to the acceleration of grant expenditures during the COVID-19 pandemic.

Low and Moderate Income Housing Asset Fund (LMIHF): Upon the dissolution of the Former Redevelopment Agency, the City retained the housing activities previously funded by the Former Agency, created LMIHF, and transferred the assets and affordable housing activities of the low and moderate income fund to the City. The ending fund balance as of June 30, 2021 was $68.8 million and the fund’s net loans receivable balance was $257.5 million. The fund balance increase of $2.5 million was supported by a $10.0 million contribution of excess tax allocation bond proceeds from the Oakland Redevelopment Successor Agency.

Municipal Capital Improvement Fund: The Municipal Capital Improvement Fund had a fund balance of $305.0 million as of June 30, 2021 that represents a decrease of $96.7 million, or 24.1 percent, from the prior fiscal year. This decrease is primarily due to the expenditure of restricted Measure KK proceeds.

The Other Special Revenue Fund accounts for activities of several special revenue funds, including the following local measures; Measure Z – Violence Prevention and Public Safety Act of 2014; Measure C – Oakland Hotel Tax; Measure Q (2004) – Library Services Retention and Enhancement; Measure WW – East Bay Regional Park District local grant program; Measure N – Paramedics Services Act; Measure Q (2020) – Oakland Parks and Recreation Preservation, Litter Reduction, and Homelessness Support Act; Oakland Kid’s First Fund; Development Service Fund; and other miscellaneous special revenue programs. The ending fund balance as of June 30, 2021 was $205.3 million , which increased $13.6 million from the previous fiscal year. This result primarily reflects revenue increases associated with the implementation of the Oakland Parks and Recreation Preservation, Litter Reduction, and Homelessness Support Act.

Proprietary Funds: The City’s proprietary funds provide the same type of information found in the government-wide financial statements under the business-type column but in more detail. The portion of net position invested in capital assets, excluding internal service funds, was $228.6 million as of June 30, 2021, compared to $225.8 million for the previous fiscal year. The increase of $2.8 million is primarily due to the addition of capital improvement projects.

CITY OF OAKLAND
Management’s Discussion and Analysis (Unaudited)
Year Ended June 30, 2021
17 General Fund Budgetary Highlights
During the year ended June 30, 2021, the general fund had a $7.6 million decrease in budgeted revenues between the original and final amended operating budget to address estimated revenue declines. Actual budgetary basis revenues of $886.9 million were $66.0 million higher than the final amended budget. The variance is due primarily to stronger than anticipated revenue performance as the economic recovery from the COVID-19 global pandemic began to take hold.

Appropriations increased by $89.2 million between the original and final amended operating budget for the general fund. The increase in appropriation is due to increased service demands during the COVID-19 pandemic as well as the determination of actual project carryforwards for continuing appropriations for various multi-year projects, capital improvement projects, and other projects authorized by the City Council.

Actual budgetary basis expenditures of $734.0 million were $97.0 million less than the final amended budget primarily due to the continued hiring freeze and additional measures to address revenue shortfalls that had been expected during the year.

Capital Assets
The City’s capital assets, net of depreciation, totaled $1.7 billion as of June 30, 2021 compared to $1.7 billion as of June 30, 2020, an increase of $17.4 million, or 1.0 percent. Governmental activities additions included $37.5 million in capital assets from construction in progress which met the City’s threshold for capitalization, and were offset by retirements and depreciation. Major construction projects underway include roadway and traffic improvements and park and recreation center upgrades.

Business activities, primarily in the Sewer Fund, increased capital assets by $49.0 thousand , which included a $6.1 million increase in construction in progress, primarily for sanitary sewer system capacity upgrades offset by depreciation. See Note II, part D to the financial statements for more details on capital assets.

Construction Commitments
As of June 30, 2021 the City had construction commitments of $41.8 million . Major commitments include $22.7 million for street and sidewalk improvements, $7.8 million for traffic improvements, $5.8 million for sewers and storm drains, and $3.2 million for parks and open space. See Note III, part C.1 for more details on construction commitments.

Debt Administration:

General Obligation Bonds and Other Bond Ratings
A credit rating is a value assigned by one or more of the recognized rating agencies that “grade” a jurisdiction’s credit, or financial trustworthiness. The three primary rating agencies are Moody’s Investors Service (Moody’s), S&P Global Ratings (S&P), and Fitch Ratings (Fitch). These rating agencies serve as independent assessors of municipal and corporate credit strength. Rating agencies generally focus on four major areas when assigning credit ratings: finances, management, economy and outstanding debt. The City continues to maintain strong credit ratings on the City’s existing general obligation bonds from all three national rating agencies despite the difficult financial and economic conditions nationally and locally.

CITY OF OAKLAND
Management’s Discussion and Analysis (Unaudited)
Year Ended June 30, 2021
18 The City of Oakland’s underlying ratings for its bonds as of June 30, 2021 were as follows:

Ratings
Type of Bond Moody's S&P Fitch
General obligation bonds Aa1 AA AA-1
Lease revenue bonds Aa2 AA- N/A
Pension obligation bonds Aa2 AA A+
Tax Allocation bonds2 Baa23/A1 A+/AA-/AA/AA3 N/A
1Issuer Default Rating
2Ratings vary by series
3Insured Rating
General Fund Bonded Debt Limit
At the end of the current fiscal year, the City’s debt limit (3.75 percent of property valuation, net of exemptions subject to taxation) was $2.6 billion. The total amount of debt applicable to the debt limit was $450.1 million. The resulting legal debt margin was $2.2 billion.

Long-Term Obligations
As of June 30, 2021 , the City had total long-term obligations of $1.1 billion compared to $1.2 billion outstanding for the prior fiscal year, a decrease of 8.3 percent. Of this amount, $450.1 million is general obligation bonds backed by the full faith and credit of the City. The remaining $621.4 million is comprised of various long-term debt instruments listed below plus accruals of year-end estimates for other long-term liabilities (in thousands):

Governmental
Activities
Business-Type
Activities Total
2021 2020 2021 2020 2021 2020
General obligation bonds $ 450,075 $ 472,170 — $ — $ 450,075 $ 472,170 Lease revenue bonds 43,165 49,180 — — 43,165 49,180 Pension obligation bonds 198,564 222,556 — — 198,564 222,556 Special assessment debt district bonds 2,590 2,940 — — 2,590 2,940 Accreted interest on appreciation bonds 69,703 96,514 — — 69,703 96,514 Sewer bonds — — 23,616 25,986 23,616 25,986
Unamortized premium and discounts 24,657 26,466 2,743 3,086 27,400 29,552 Total bonds payable 788,754 869,826 26,359 29,072 815,113 898,898 Loans and leases payable 28,842 47,993 — — 28,842 47,993 Other long-term liabilities 227,507 221,349 — — 227,507 221,349 Total long-term obligations $ 1,045,103 $ 1,139,168 $ 26,359 $ 29,072 $ 1,071,462 $ 1,168,240 The City’s long-term obligations decreased by $96.8 million compared to the prior fiscal year balance.

The decrease is primarily attributable to the retirement of outstanding debt.

Additional information on the City’s long-term debt obligations can be found in Note II, part G to the financial statements.

CITY OF OAKLAND
Management’s Discussion and Analysis (Unaudited)
Year Ended June 30, 2021
19 Economic Factors and Next Year’s Budget
Oakland's economy and fiscal outlook improved notably in FY 2020-21 but much uncertainty remains about the City’s prospects for further economic recovery. At the end of FY 2019-20 this uncertainty was largely focused on the trajectory of the pandemic itself. A year later prospects for the end of the pandemic have improved with the widespread adoption of vaccines and reduced community transmission of the COVID-19 virus, but surges associated with the highly contagious Delta variant could challenge this progress. In addition, employment growth remains sluggish, inflation has risen to levels not seen in many years, and global supply chain challenges threaten a broader economic recovery.

Requests for Information
This financial report is designed to provide a general overview of the City of Oakland’s finances for all those with an interest in the City’s fiscal and economic affairs. Requests for additional financial information should be addressed to the Finance Department, Controller’s Bureau, City of Oakland, 150 Frank H. Ogawa Plaza, Suite 6353; Oakland, California 94612-2093. This report is also available online at https://www.oaklandca.gov/.

CITY OF OAKLAND
Management’s Discussion and Analysis (Unaudited)
Year Ended June 30, 2021
20 BASIC FINANCIAL

STATEMENTS
This page is intentionally left blank.

Primary Government Component Unit
Governmental
Activities
Business-type
Activities Total
Port of
Oakland
ASSETS
Cash and investments $ 1,063,308 $ 75,186 $ 1,138,494 $ 502,032 Receivables (net of allowance for uncollectibles of
$19,504 for the City and $2,025 for the Port)
Accrued interest 535 37 572 —
Property taxes 14,181 — 14,181 —
Accounts receivable 71,753 17,142 88,895 51,330
Grants receivable 40,864 — 40,864 —
Due from Port 12,618 — 12,618 —
Due from Oakland Redevelopment Successor Agency
(ORSA) 18,394 — 18,394 —
Due from custodial funds 113 — 113 —
Internal balances 1,205 (1,205) — —
Due from other governments 12,482 — 12,482 —
Inventories 1,082 — 1,082 —
Restricted assets:

Cash and investments 253,201 800 254,001 68,545
Receivables — — — 2,439
Property held for resale 172,094 — 172,094 —
Notes and loans receivable (net of allowance for
uncollectibles of $188,999) 472,883 — 472,883 —
Prepaid expenses 1,730 34 1,764 3,161
Other — — — 43,209
Capital assets:

Land and other capital assets not being depreciated 318,860 17,399 336,259 619,293 Facilities, equipment, and infrastructure net of
depreciation 1,121,741 237,840 1,359,581 1,327,038
TOTAL ASSETS 3,577,044 347,233 3,924,277 2,617,047

DEFERRED OUTFLOWS OF RESOURCES
Unamortized losses on refunding of debt 12,268 — 12,268 9,516 Deferred outflows of resources related to pensions 339,194 908 340,102 33,414 Deferred outflows of resources related to OPEB 221,051 4,527 225,578 16,498

TOTAL DEFERRED OUTFLOWS OF
RESOURCES 572,513 5,435 577,948 59,428

LIABILITIES
Accounts payable and other current liabilities 331,690 3,063 334,753 32,167 Accrued interest payable 28,170 48 28,218 4,050
Due to other governments 1,354 — 1,354 —
Due to primary government — — — 12,618
Unearned revenue 83,676 — 83,676 29,804
Other 22,538 6 22,544 26,930
Non-current liabilities:

Due in one year
Liabilities due within one year 193,236 2,833 196,069 77,055 Due in more than one year
Liabilities due in more than one year 851,867 23,526 875,393 790,645 Net pension liability 1,754,458 46,916 1,801,374 219,587 Net other postemployment benefits (OPEB) liability 827,123 15,713 842,836 85,235 TOTAL LIABILITIES 4,094,112 92,105 4,186,217 1,278,091

DEFERRED INFLOWS OF RESOURCES
Unamortized gains on refunding of debt 2,785 316 3,101 — Deferred inflows of resources related to pensions 2,854 — 2,854 4,241 Deferred inflows of resources related to OPEB 210,886 2,876 213,762 5,919

TOTAL DEFERRED INFLOWS OF
RESOURCES 216,525 3,192 219,717 10,160

NET POSITION
Net investment in capital assets 1,102,435 228,564 1,330,999 1,165,696 Restricted for:

Debt service 24,249 — 24,249 —
Housing and community development 368,060 — 368,060 — Low and moderate income housing redevelopment 328,255 — 328,255 — Other purposes 59,108 — 59,108 24,359
Unrestricted (deficit) (2,043,187) 28,807 (2,014,380) 198,169 TOTAL NET POSITION $ (161,080) $ 257,371 $ 96,291 $ 1,388,224 City of Oakland
Statement of Net Position
June 30, 2021
(In thousands)
The notes to the basic financial statements are an integral part of this statement. 21 Program Revenue
Net (Expense) Revenue and
Changes in Net Position
Component
UnitPrimary Government
Functions/Programs Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital
Grants and
Contributions
Governmental
Activities
Business-type
Activities Total
Port of
Oakland
Primary government:

Governmental activities:

General government $ 222,718 $ 38,376 $ 25,844 $ 3,178 $ (155,320) $ — $ (155,320) Public safety 511,184 21,740 57,518 — (431,926) — (431,926) Community and human
services 134,097 3,339 40,620 — (90,138) — (90,138) Community and economic
development 186,777 66,450 52,315 — (68,012) — (68,012) Public works and
transportation 149,611 40,563 30,212 — (78,836) — (78,836) Interest on long-term debt 63,964 — — — (63,964) — (63,964)

TOTAL GOVERNMENTAL
ACTIVITIES 1,268,351 170,468 206,509 3,178 (888,196) — (888,196) Business-type activities:

Sewer 54,181 69,113 — — — 14,932 14,932
Parks and recreation 725 651 — — — (74) (74)

TOTAL BUSINESS-TYPE
ACTIVITIES 54,906 69,764 — — — 14,858 14,858

TOTAL PRIMARY
GOVERNMENT $ 1,323,257 $ 240,232 $ 206,509 $ 3,178 (888,196) 14,858 (873,338) Component unit:

Port of Oakland $ 349,296 $ 354,139 $ 10,103 $ 24,356 $ 39,302 General revenues:

Property taxes 438,237 — 438,237 —
State taxes (unrestricted intergovernmental revenues):

Sales and use taxes 88,888 — 88,888 —
Gas tax 17,322 — 17,322 —
Motor vehicle in-lieu 318 — 318 —
Local taxes (own source revenues):

Business license 104,232 — 104,232 —
Utility consumption 51,801 — 51,801 —
Real estate transfer 113,359 — 113,359 —
Transient occupancy 13,497 — 13,497 —
Parking 11,590 — 11,590 —
Voter-approved special tax 93,151 — 93,151 —
Franchise 19,901 — 19,901 —
Interest and investment income (loss) 18 (41) (23) 507 Other 80,250 — 80,250 38,498
Transfers 1,871 (1,871) — —
TOTAL GENERAL REVENUES AND TRANSFERS 1,034,435 (1,912) 1,032,523 39,005 Changes in net position 146,239 12,946 159,185 78,307 Net position - beginning, as previously reported (309,443) 244,425 (65,018) 1,309,917 Cumulative effect of accounting change 2,124 — 2,124 — Net position - beginning, as restated (307,319) 244,425 (62,894) 1,309,917 NET POSITION - ENDING $ (161,080) $ 257,371 $ 96,291 $ 1,388,224 City of Oakland
Statement of Activities
Year Ended June 30, 2021
(In thousands)
The notes to the basic financial statements are an integral part of this statement. 22 General
Fund
Federal/
State Grant
Fund
Low and
Moderate
Income
Housing
Asset Fund
Municipal
Capital
Improvement
Fund
Other
Special
Revenue
Fund
Other
Governmental
Funds Total
ASSETS
Cash and investments $ 598,755 $ 105,165 $ 26,855 $ 10,170 $ 225,620 $ 61,490 $ 1,028,055 Receivables (net of allowance for
uncollectibles of $18,131)
Accrued interest 313 45 13 5 113 28 517
Property taxes 6,293 — — — 5,288 2,600 14,181
Accounts receivable 58,931 1,204 3 457 3,110 7,947 71,652 Grants receivable — 39,444 — — 621 799 40,864
Due from Port 11,974 — — — — 644 12,618
Due from ORSA trust fund 473 — 11,998 5,923 — — 18,394 Due from custodial funds 113 — — — — — 113
Due from other funds 7,518 — — — — — 7,518
Due from other governments 12,475 — — — 7 — 12,482 Notes and loans receivable (net of allowance
for uncollectibles of $188,999) 11,415 132,325 257,479 70,854 810 — 472,883 Restricted cash and investments 50,164 — 1,580 180,245 — 3,484 235,473 Property held for resale 17,964 — 30,677 123,453 — — 172,094 Prepaid items 723 135 — 1 285 45 1,189
TOTAL ASSETS $ 777,111 $ 278,318 $ 328,605 $ 391,108 $ 235,854 $ 77,037 $ 2,088,033

LIABILITIES
Accounts payable and accrued liabilities $ 275,559 $ 24,497 $ 346 $ 10,589 $ 12,727 $ 3,581 $ 327,299 Due to other funds — — — — — 1,414 1,414
Due to other governments 1,354 — — — — — 1,354
Unearned revenue 4,388 79,288 — — — — 83,676
Other 2,777 3,143 4 2,292 12,104 2,211 22,531
TOTAL LIABILITIES 284,078 106,928 350 12,881 24,831 7,206 436,274

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property tax 6,612 — — — 4,491 1,860 12,963 Unavailable revenue - notes and loans 11,415 132,325 257,442 70,727 810 — 472,719 Unavailable revenue - grants and others 11,040 17,214 — 198 411 344 29,207 Unavailable revenue - loans to ORSA — — 1,978 2,291 — — 4,269

TOTAL DEFERRED INFLOWS OF
RESOURCES 29,067 149,539 259,420 73,216 5,712 2,204 519,158

FUND BALANCES
Nonspendable 18,687 135 — 1 285 45 19,153
Restricted 267,811 21,716 68,835 305,010 — 61,019 724,391 Committed 38,739 — — — 31,837 1,765 72,341
Assigned 41,786 — — — 173,189 5,733 220,708
Unassigned 96,943 — — — (935) 96,008
TOTAL FUND BALANCES 463,966 21,851 68,835 305,011 205,311 67,627 1,132,601

TOTAL LIABILITIES, DEFERRED

INFLOWS OF RESOURCES AND FUND
BALANCES $ 777,111 $ 278,318 $ 328,605 $ 391,108 $ 235,854 $ 77,037 $ 2,088,033 City of Oakland
Balance Sheet
Governmental Funds
June 30, 2021
(In thousands)
The notes to the basic financial statements are an integral part of this statement. 23 Fund balances - total governmental funds (page 23) $ 1,132,601 Amounts reported for governmental activities in the statement of net position are different due to the following:

Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds.

Primary government capital assets, net of depreciation 1,440,601 Less: internal service funds' capital assets, net of depreciation (36,283) 1,404,318 Prepaid insurance premiums on long-term debt are not financial resources and, therefore, are not reported in the governmental funds. 65
Interest payable on long-term debt does not require the use of current financial resources and, therefore, is not accrued as a liability in the governmental funds.

Interest payable on long-term debt of the primary government (28,170) Less: interest payable on long-term debt of the internal service funds 193 (27,977) Deferred inflows of resources recorded in governmental fund financial statements resulting from activities in which revenues were earned but funds were not available are reclassified as revenues in the government-wide financial statements. 519,158
Long-term liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported in the governmental funds.

Long-term liabilities (1,045,103)
Less: long-term liabilities for internal service funds 22,880 (1,022,223) Deferred outflows of resources in governmental activities related to losses on refunding of debt are not financial resources and, therefore, are not reported in the governmental funds. 12,268 Deferred inflows of resources in governmental activities related to gains on refunding of debt are not financial resources and, therefore, are not reported in the governmental funds. (2,785) Net pension liability, net OPEB liability, and deferred outflows of resources and deferred inflows of resources related to pensions and OPEB on the government-wide statement of net position are not due and payable in the current period and, therefore, are not reported in the governmental funds.

Net pension liability (1,699,582)
Deferred outflows of resources related to pensions 337,571 Deferred inflows of resources related to pensions (2,854) Net OPEB liability (808,052)
Deferred outflows of resources related to OPEB 215,340 Deferred inflows of resources related to OPEB (207,220) (2,164,797) Internal service funds are used by the City to charge the costs of providing supplies and services, fleet and facilities management, and use of radio and communications equipment to individual funds. Assets, deferred outflows, liabilities, and deferred inflows of resources of internal service funds are included in governmental activities in the statement of net position. (11,708)
NET POSITION OF GOVERNMENTAL ACTIVITIES (page 21) $ (161,080) City of Oakland
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position for Governmental Activities
June 30, 2021
(In thousands)
The notes to the basic financial statements are an integral part of this statement. 24 General
Fund
Federal/
State
Grant
Fund
Low and
Moderate
Income
Housing
Asset Fund
Municipal
Capital
Improvement
Fund
Other
Special
Revenue
Fund
Other
Govern-
mental
Funds Total

REVENUES
Taxes:

Property $ 377,175 $ — $ — $ — $ 18,481 $ 35,623 $ 431,279 Sales and use 57,825 — — — — 31,063 88,888
Motor vehicle in-lieu 318 — — — — — 318
Gas — — — — — 17,322 17,322
Local taxes 314,100 222 — — 73,722 19,487 407,531 Licenses and permits 1,243 — — — 28,614 132 29,989 Fines and penalties 17,591 181 — 12 543 701 19,028 Interest and investment income (loss) (7,860) 1,146 1,665 107 (176) 24 (5,094) Charges for services 83,173 94 88 3,218 34,767 111 121,451 Federal and state grants and subventions 4,983 186,788 — — 2,922 11,816 206,509 Annuity income 5,120 — — — — — 5,120
Other 33,553 5,632 14,962 17,606 4,666 2,310 78,729 TOTAL REVENUES 887,221 194,063 16,715 20,943 163,539 118,589 1,401,070

EXPENDITURES
Current:

General government 184,053 13,980 — 10,383 17,461 2,561 228,438 Public safety 446,722 55,518 — 382 23,943 479 527,044 Community and human services 46,613 59,094 93 — 62,233 6,259 174,292 Community and economic development 15,678 45,718 14,111 51,493 45,027 96 172,123 Public works and transportation 36,172 9,330 — 12,760 18,499 47,166 123,927 Capital outlay 3,391 22,469 — 43,494 1,921 4,694 75,969 Debt service:

Principal repayment 440 — — — — 58,058 58,498
Bond issuance cost 137 — — — — 4 141
Interest charges 784 — — — — 61,806 62,590
TOTAL EXPENDITURES 733,990 206,109 14,204 118,512 169,084 181,123 1,423,022

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 153,231 (12,046) 2,511 (97,569) (5,545) (62,534) (21,952)

OTHER FINANCING SOURCES (USES)
Insurance claims and settlements — 100 — 640 64 — 804 Transfers in 10,182 5,859 — 180 20,660 78,731 115,612 Transfers out (103,715) — — — (1,539) (2,314) (107,568)

TOTAL OTHER FINANCING
SOURCES (USES) (93,533) 5,959 — 820 19,185 76,417 8,848 NET CHANGE IN FUND BALANCES 59,698 (6,087) 2,511 (96,749) 13,640 13,883 (13,104) Fund balances - beginning, as previously
reported 404,268 27,938 66,324 401,760 191,671 51,620 1,143,581 Cumulative effect of accounting change — — — — — 2,124 2,124 Fund balances - beginning, as restated 404,268 27,938 66,324 401,760 191,671 53,744 1,145,705 FUND BALANCES - ENDING $ 463,966 $ 21,851 $ 68,835 $ 305,011 $ 205,311 $ 67,627 $ 1,132,601 City of Oakland
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
Year Ended June 30, 2021
(In Thousands)
The notes to the basic financial statements are an integral part of this statement. 25 Net change in fund balances - total governmental funds (page 25) $ (13,104) Amounts reported for governmental activities in the statement of activities are different due to the following:

Government funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated lives and reported as depreciation expense. This is the amount by which capital outlay and other capital transactions exceeds depreciation in the current period.

Primary government:

Capital asset acquisition 96,061
Capital asset retirement (17)
Depreciation (75,724) 20,320
Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. This represents the change in the deferred inflows during the current period 52,864 Some expenses such as claims, workers' compensation, and vacation and sick leave reported in the statement of activities do not require the use of financial resources and, therefore, are not reported as expenditures in the governmental funds. (11,670)
The repayment of principal of long-term debt consumes the current financial resources of the governmental funds. This is the amount by which principal retirement reduces the liabilities in the statement of net position. 58,498 Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the government funds.

Amortization of bond premiums and discounts 1,809
Amortization of prepaid bond insurance premium on long-term debt (46) Amortization of deferred outflows of refunding losses and inflows of refunding gains (1,004) Net changes in accreted interest on appreciation bonds 26,811 Changes in accrued interest on bonds and notes payable (1,310) Changes in Coliseum Authority pledged obligation 5,018 Changes in mandated environmental remediation obligations (17) Change in net pension liability and deferred outflows and inflows of resources related to pensions (22,995)
Change in net OPEB liability and deferred outflows and inflows of resources related to OPEB 20,946 Change in fair value of the interest swap agreement 512 29,724 Net revenues of activities of internal service funds are reported with governmental activities 9,607 CHANGES IN NET POSITION OF GOVERNMENTAL ACTIVITIES (page 22) $ 146,239 City of Oakland
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities of Governmental Activities Year Ended June 30, 2021
(In thousands)
The notes to the basic financial statements are an integral part of this statement. 26 Business-type Activities - Enterprise Funds
Governmental
Activities
Sewer Service
Fund
Nonmajor Fund
Parks and
Recreation Total
Internal
Service
Funds
ASSETS
Current assets:

Cash and investments $ 75,186 $ — $ 75,186 $ 35,253
Interest receivable 37 — 37 18
Accounts receivable (net of allowance for uncollectibles of $1,373 for the enterprise funds) 17,136 6 17,142 101 Inventories — — — 1,082
Restricted cash and investments — 800 800 17,728
Prepaid expenses 34 — 34 476
Total current assets 92,393 806 93,199 54,658
Capital assets:

Land and other capital assets not being depreciated 16,965 434 17,399 8,083 Facilities, equipment and infrastructure,
net of depreciation 236,623 1,217 237,840 28,200
Total capital assets 253,588 1,651 255,239 36,283
TOTAL ASSETS 345,981 2,457 348,438 90,941

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to pensions 876 32 908 1,623 Deferred outflows of resources related to OPEB 4,479 48 4,527 5,711 TOTAL DEFERRED OUTFLOWS OF RESOURCES 5,355 80 5,435 7,334 LIABILITIES:

Current liabilities:

Accounts payable and accrued liabilities 3,063 — 3,063 4,391 Accrued interest payable 47 1 48 193
Due to other funds — 1,205 1,205 4,899
Other liabilities 6 — 6 7
Bonds, capital leases, notes and other payables 2,833 — 2,833 8,774 Total current liabilities 5,949 1,206 7,155 18,264
Non-current liabilities:

Bonds, capital leases, notes and other payables 23,526 — 23,526 14,106 Net pension liability 46,604 312 46,916 54,876
Net other postemployment benefit (OPEB) liability 15,570 143 15,713 19,071 Total non-current liabilities 85,700 455 86,155 88,053 TOTAL LIABILITIES 91,649 1,661 93,310 106,317

DEFERRED INFLOWS OF RESOURCES
Unamortized gains on refunding of debt 316 — 316 —
Deferred inflows of resources related to OPEB 2,870 6 2,876 3,666 TOTAL DEFERRED INFLOWS OF RESOURCES 3,186 6 3,192 3,666

NET POSITION
Net investment in capital assets 226,913 1,651 228,564 31,131 Unrestricted (deficit) 29,588 (781) 28,807 (42,839) TOTAL NET POSITION $ 256,501 $ 870 $ 257,371 $ (11,708) City of Oakland
Statement of Fund Net Position
Proprietary Funds
June 30, 2021
(In thousands)
The notes to the basic financial statements are an integral part of this statement. 27 Business-type Activities - Enterprise Funds
Governmental
Activities
Sewer Service
Fund
Nonmajor Fund
Parks and
Recreation Total
Internal
Service
Funds

OPERATING REVENUES
Rental $ — $ 604 $ 604 $ —
Sewer services 69,085 47 69,132 —
Charges for services — — — 106,816
Other 28 — 28 125
TOTAL OPERATING REVENUES 69,113 651 69,764 106,941

OPERATING EXPENSES
Personnel 23,085 296 23,381 31,978
Supplies 485 43 528 9,692
Depreciation and amortization 7,403 179 7,582 11,374 Contractual services and supplies 3,297 2 3,299 6,289 Repairs and maintenance 7,546 — 7,546 8,991
General and administrative 7,112 190 7,302 10,298
Rental 2,560 14 2,574 2,763
Other 1,823 1 1,824 9,802
TOTAL OPERATING EXPENSES 53,311 725 54,036 91,187
OPERATING INCOME (LOSS) 15,802 (74) 15,728 15,754

NON-OPERATING REVENUES (EXPENSES)
Interest and investment income (loss) (41) — (41) (8) Interest expense (870) — (870) (682)
Insurance claims and settlements — — — 337
Other — — — 379
TOTAL NON-OPERATING REVENUES (EXPENSES) (911) — (911) 26 INCOME (LOSS) BEFORE TRANSFERS 14,891 (74) 14,817 15,780 Transfers out (1,871) — (1,871) (6,173)
Change in net position 13,020 (74) 12,946 9,607
Net position - beginning 243,481 944 244,425 (21,315) NET POSITION - ENDING $ 256,501 $ 870 $ 257,371 $ (11,708) City of Oakland
Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds
Year Ended June 30, 2021
(In thousands)
The notes to the basic financial statements are an integral part of this statement. 28 Business-type Activities - Enterprise Funds
Governmental
Activities
Sewer Service
Fund
Nonmajor Fund
Parks and
Recreation Total
Internal
Service
Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from interfund services provided $ — $ — $ — $ 106,854 Cash received from customers and users 72,909 — 72,909 — Cash received from tenants for rents — 651 651 —
Cash from other sources 28 — 28 841
Cash paid to employees (21,032) (271) (21,303) (29,973) Cash paid to suppliers (25,364) (250) (25,614) (48,432) NET CASH PROVIDED BY OPERATING ACTIVITIES 26,541 130 26,671 29,290

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Proceeds from interfund loans — 394 394 89
Repayment of interfund loans — — — (296)
Transfers out (1,871) — (1,871) (6,173)
NET CASH USED IN NONCAPITAL FINANCING ACTIVITIES (1,871) 394 (1,477) (6,380)

CASH FLOWS FROM CAPITAL AND RELATED FINANCING

ACTIVITIES
Acquisition of capital assets (7,629) (2) (7,631) (8,408) Long-term debt:

Repayment of long-term debt (2,370) — (2,370) (13,105) Interest paid on long-term debt (1,257) — (1,257) (799)

NET CASH USED IN CAPITAL AND
RELATED FINANCING ACTIVITIES (11,256) (2) (11,258) (22,312)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 114 — 114 43
NET CHANGE IN CASH AND CASH EQUIVALENTS 13,528 522 14,050 641 Cash and cash equivalents - beginning 61,658 278 61,936 52,340 CASH AND CASH EQUIVALENTS - ENDING $ 75,186 $ 800 $ 75,986 $ 52,981

RECONCILIATION OF OPERATING INCOME (LOSS) TO

NET CASH PROVIDED BY OPERATING ACTIVITIES
Operating income (loss) $ 15,802 $ (74) $ 15,728 $ 15,754

ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS) TO

NET CASH PROVIDED BY OPERATING ACTIVITIES
Depreciation and amortization 7,403 179 7,582 11,374 Miscellaneous non-operating revenues — — — 716
Changes in assets, liabilities, and
deferred outflows and inflows of resources:

Receivables 3,824 — 3,824 38
Inventories — — — 3
Other assets (15) — (15) 851
Accounts payable and accrued liabilities (2,526) — (2,526) (1,451) Net pension liability and related pension deferred items 201 3 204 1,807 Net OPEB liability and related OPEB deferred items 1,852 22 1,874 198 NET CASH PROVIDED BY OPERATING ACTIVITIES $ 26,541 $ 130 $ 26,671 $ 29,290

RECONCILIATION OF CASH AND CASH EQUIVALENTS TO THE

STATEMENT OF FUND NET POSITION
Cash and investments $ 75,186 $ — $ 75,186 $ 35,253
Restricted cash and investments — 800 800 17,728
TOTAL CASH AND CASH EQUIVALENTS $ 75,186 $ 800 $ 75,986 $ 52,981 NON-CASH ITEMS:

Amortization of bond premiums $ 343 $ — $ 343 $ —
City of Oakland
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2021
(In thousands)
The notes to the basic financial statements are an integral part of this statement. 29 Pension
Trust
Fund
Private-
Purpose Trust
Funds
Custodial
Funds
ASSETS
Cash and investments $ 6,324 $ 62,547 $ —
Receivables:

Accrued interest and dividends 1,031 347 —
Accounts receivable — — 602
Investments and others 1,439 — —
Due from other funds of the City — 2,705 —
Prepaid expenses — 1,501 —
Restricted:

Cash and investments:

Short-term investments 7,787 8,247 —
U.S. government bonds, corporate bonds and other government bonds 134,381 — —
Domestic equities and mutual funds 210,506 — —
International equities and mutual funds 58,540 — —
Alternative investments 44,016 — —
Foreign currency contract, net (8) — —
Total restricted cash and investments 455,222 8,247 — Securities lending collateral 48,551 — —
Loans receivable, net of allowance for uncollectibles of $3,918 — 3,608 — Property held for resale — 2,818 —
TOTAL ASSETS 512,567 81,773 602

DEFERRED OUTFLOWS OF RESOURCES
Unamortized losses on refunding of debt — 12,272 —

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 5,080 2 —
Accrued interest payable — 4,199 —
Due to other funds of the City — 18,394 113
Securities lending liabilities 48,954 — —
Other — 46 —
Total current liabilities 54,034 22,641 113
Non-current liabilities:

Due within one year — 29,820 —
Due in more than one year — 228,397 —
Total non-current liabilities — 258,217 —
TOTAL LIABILITIES 54,034 280,858 113

DEFERRED INFLOWS OF RESOURCES
Unamortized gains on refunding of debt — 350 —
NET POSITION RESTRICTED FOR:

Employees' pension benefits 458,533 — —
Redevelopment dissolution and other purposes — (187,163) 489 TOTAL NET POSITION $ 458,533 $ (187,163) $ 489
City of Oakland
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2021
(In thousands)
The notes to the basic financial statements are an integral part of this statement. 30 Pension
Trust
Fund
Private-
Purpose Trust
Funds
Custodial
Funds
ADDITIONS:

Trust receipts $ — $ 43,117 $ —
Contributions:

Employer 43,648 — —
Investment income (loss):

Net appreciation in fair value of investments 84,720 — — Interest income (loss) 3,965 (29) —
Dividends 2,735 — —
Securities lending 126 — —
TOTAL INVESTMENT INCOME (LOSS) 91,546 (29) —
Investment expenses (1,355) — —
NET INVESTMENT INCOME (LOSS) 90,191 (29) —
Federal and state grants — 218 —
Other income 1 425 —
TOTAL ADDITIONS 133,840 43,731 —
DEDUCTIONS:

Benefits to members and beneficiaries:

Retirement 32,157 — —
Disability 18,804 — —
Death 1,736 — —
TOTAL BENEFITS TO MEMBERS AND BENEFICIARIES 52,697 — — Administrative expenses 1,585 4,061 —
Economic and workforce development — 290 —
Other — 13,652 —
Interest on debt — 12,236 —
TOTAL DEDUCTIONS 54,282 30,239 —
Change in net position 79,558 13,492 —
Net position - beginning, as previously reported 378,975 (198,042) — Cumulative effect of accounting change — (2,613) 489 Net position - beginning, as restated 378,975 (200,655) 489 NET POSITION - ENDING $ 458,533 $ (187,163) $ 489
City of Oakland
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
Year Ended June 30, 2021
(In thousands)
The notes to the basic financial statements are an integral part of this statement. 31 This page is intentionally left blank.

NOTES TO THE BASIC

FINANCIAL STATEMENTS
This page is intentionally left blank.

I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. REPORTING ENTITY
Primary Government
The City of Oakland, California (the City or Primary Government) was incorporated on May 25, 1852, by the State of California and is organized and exists under and pursuant to the provisions of State law. The Mayor/Council form of government was established in November 1998 through Charter amendment. The legislative authority is vested in the City Council and the executive authority is vested in the Mayor with administrative authority resting with the City Administrator.

The accompanying financial statements present the City and its component units, entities for which the City is considered to be financially accountable. Component units are classified as blended, discretely presented or fiduciary. Blended component units, although legally separate entities, are, in substance, part of the City’s operations and are combined with the data of the Primary Government within the governmental activities column in the government-wide financial statements and governmental funds in the fund financial statements.

Fiduciary Component Unit
Oakland Redevelopment Successor Agency (ORSA) - On June 28, 2011, Assembly Bill X1 26 (AB X1 26) was enacted. This legislation is referred to herein as the Redevelopment Dissolution Law.

On December 29, 2011, the California Supreme Court upheld the constitutionality of AB X1 26 and all redevelopment agencies in California were dissolved by operation of law effective February 1, 2012. The legislation provides for successor agencies and oversight boards that are responsible for overseeing the dissolution process and wind down of redevelopment activity. At the City’s meeting on January 10, 2012, the City Council affirmed its decision as part of resolution number 83679 C.M.S. to serve as the ORSA, effective February 1, 2012, and as such is a fiduciary component unit of the City. Also, in the same meeting, the City Council elected as part of resolution number 83680 C.M.S. to retain the housing assets, functions, and powers previously performed by the former Redevelopment Agency of the City of Oakland (Former Agency).

The ORSA was created to serve as a custodian for the assets and to wind down the affairs of the Former Agency. The ORSA is a separate public entity from the City, with the Oakland City Council serving as its governing board, subject to the direction of an Oversight Board. Pursuant to SB 107, as of June 30, 2020, there are seven Countywide Oversight Board members as follows:
• One appointed by the County Board of Supervisors,
• One appointed by the City selection committee,
• One appointed by the independent Special District Selection Committee, • One appointed by the County Superintendent of Education, • One appointed by the Chancellor of the California Community Colleges, • One member of the public, and
• One member appointed by the recognized employee organization representing the largest number of successor agency employees in the County.

In general, the ORSA’s assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments). ORSA will only be allocated revenue in the amount that is

CITY OF OAKLAND
Notes to the Basic Financial Statements
Year Ended June 30, 2021
33 necessary to pay the estimated annual installment payments on enforceable obligations of the Former Agency until all enforceable obligations of the Former Agency have been paid in full and all assets have been liquidated. Based upon the nature of the ORSA’s custodial role, ORSA is reported in a fiduciary fund (private-purpose trust fund) in the City’s financial statements.

ORSA's separately issued financial statements may be obtained as follows:

Finance Department, Controller's Bureau
City of Oakland
150 Frank H. Ogawa Plaza, Suite 6353
Oakland, CA 94612
Blended Component Unit
Oakland Joint Powers Financing Authority (JPFA) - JPFA was formed to assist in the financing of public capital improvements. JPFA is a joint exercise agency organized under the laws of the State of California and was composed of the City and the Former Agency. The Oakland City Council serves as the governing board for JPFA. JPFA transactions are reported in other governmental funds.

Related debt is included in the long-term obligations of the City in the governmental activities column of the statement of net position. AB X1 26 as amended by AB 1484 was enacted and all redevelopment agencies in California were dissolved by operation of law effective February 1, 2012.

The dissolution law provides that ORSA is a separate legal entity from the City, with ORSA holding all of the transferred assets and obligations of the Former Agency (other than the housing assets).

Therefore, ORSA assumed the Former Agency’s role as a member of the JPFA as of February 1, 2012, pursuant to AB X1 26.

Discretely Presented Component Unit
Port of Oakland (Port) – The Port is a legally separate component unit established in 1927 by the City. Operations include the Oakland International Airport and the Port of Oakland Marine Terminal Facilities. Although the Port has a significant relationship with the City, it is fiscally independent and does not provide services solely to the City and, therefore, is presented discretely. All interfund transactions have been eliminated. The Port is governed by a seven-member Board of Port Commissioners (Board of Commissioners) that is appointed by the City Council, upon nomination by the Mayor. The Board of Commissioners appoints an Executive Director to administer operations.

The Port prepares and controls its own budget, administers and controls its fiscal activities, and is responsible for all Port construction and operations. The Port is required by City charter to deposit its operating revenues in the City Treasury. The City is responsible for investing and managing such funds. The Port is presented in a separate column in the government-wide financial statements.

The Port’s separately issued Annual Comprehensive Financial Report may be obtained as follows:

Port of Oakland
Port Financial Services Division
530 Water Street
Oakland, CA 94607

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
34 B. FINANCIAL STATEMENT PRESENTATION
Government-wide and Fund Financial Statements
The government-wide financial statements (the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the City and its component units.

The effect of interfund activity has been removed from these statements except for interfund services provided among funds. Governmental activities , which are normally supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the Primary Government is reported separately from its discretely presented component unit for which the Primary Government is financially accountable.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include (1) charges to customers or applicants who purchase, use or directly benefit from goods, services, or privileges provided by a given function or segment; and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported as general revenues.

Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and a major individual enterprise fund are reported as separate columns in the fund financial statements.

The City reports the following major governmental funds:

The General Fund is the City’s primary operating fund. It accounts for all financial activities and resources of the general government except those required to be accounted for in another fund. These activities are funded principally by property taxes, sales and use taxes, business license taxes, utility and real estate transfer taxes, other unrestricted local taxes, interest and investment income, and charges for services.

The Federal/State Grant Fund accounts for various Federal and State grants and certain state allocations used or expended for a specific purpose, activity or program.

The Low and Moderate Income Housing Asset Fund (LMIHF) is a special revenue fund that was created to administer the housing assets and functions related to the Low and Moderate Income Housing program retained by the City following the dissolution of the Former Agency. Prior to the dissolution of redevelopment agencies, the LMIHF accounted for the Former Agency’s affordable housing activities, including the 20% redevelopment property tax revenue set-aside for low and moderate income housing and related expenditures. Upon dissolution of the Former Agency and the City Council’s election to retain the housing activities previously funded by the Former Agency, the City created LMIHF and transferred the assets and affordable housing activities.

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
35 The Municipal Capital Improvement Fund accounts primarily for monies pertaining to capital improvement funds, which includes mainly capital financing projects funds:
• Oakland Redevelopment Successor Agency - Unspent bond proceeds transferred to the City. The California Department of Finance approved the bond expenditure agreement between ORSA and the City to transfer excess tax allocation bond proceeds to the City. The Bond Spending Plan allows ORSA to utilize proceeds derived from bonds issued prior to January 1, 2011 in a manner consistent with the original bond covenants.
• Measure DD - Capital improvement bond financing funds for clean water, safe parks, and open space trust for the City.
• Measure KK - Capital improvement bond financing funds to improve public safety and finance transportation infrastructure improvements, affordable housing, and neighborhood services. • Measure G – Capital improvement bond financing funds for Oakland Zoo, Museum and Chabot Space and Science Center improvements.
• Master Lease Agreement Financing – Capital improvement for vehicles and equipment, and telecommunications.
• Other miscellaneous capital improvement funds - The fund comprises other municipal capital improvement funds, which may be used for the lease, acquisition, construction, or other improvements of public facilities.

The Other Special Revenue Fund accounts for activities of several special revenue funds, which include mainly the following local measures and funds:
• Measure Z: The Public Safety and Services Violence Prevention Act of 2014. The measure provides for the following services: Community Resource Officers, crime reduction teams, fire services, and violence prevention strategies (Oakland Unite). • Measure C - Oakland Hotel Tax. This additional transient occupancy tax was approved to fund the following entities: Oakland Convention and Visitors Bureau 50%, Oakland Zoo 12.5%, Oakland Museum of California 12.5%, Chabot Space and Science Center 12.5%, and the City Cultural Arts Programs and Festivals 12.5%.
• Measure Q (2004) - Library Services Retention and Enhancement. In March 2004, the electorate of Oakland approved, by more than a two-thirds majority, the extension of the Library Services and Retention Act, Measure Q (formerly known as Measure O). The act re-authorized and increased a special parcel tax on residential and non-residential parcels for the purpose of raising revenue to retain and enhance library services. The term of the tax is 20 years, commencing July 1, 2004 and ending June 30, 2024.
• Measure D - Oakland Public Library Preservation Act. This additional parcel tax was approved by Oakland voters in June 2018, establishing a supplementary funding source for library services, material, and programs. The term of the tax is 20 years, commencing July 1, 2018 and ending June 30, 2038.
• Measure Q (2020) - Parks and Recreation Preservation, Litter Reduction, and Homelessness Support. In March 2020, the electorate of Oakland approved, by more than a two-thirds majority, a parcel tax for parks, homeless services, and litter reduction. The term of the tax is 20 years, commencing July 1, 2020 and ending June 30, 2040.
• Measure W - Vacant Property Tax Act. In November 2018, the electorate of Oakland approved, by more than a two-thirds majority, a parcel tax on vacant properties to be utilized for homelessness programs and services, affordable housing, code enforcement, and clean-up of blighted properties and illegal dumping. The term of the tax is 20 years, commencing July 1, 2020 and ending June 30, 2040.

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
36 • Measure WW - East Bay Regional Park District local grant program . The funds are for various Oakland parks and open space renovation projects.
• Measure N - Paramedics Services Act . The revenue from the measure increases, enhances, and supports paramedic services in the City.
• Oakland Kids’ First Fund. The charter requires 3 percent of the City’s unrestricted general purpose fund revenues for the fund. The revenues provide additional funding for programs and services benefiting children and youth.
• Development Services Fund. The revenue sources for the development service fund will be the fees and penalties for development and enforcement activities, such as land use, permit, inspection, and abatement services for both direct and indirect costs. • Other miscellaneous special revenue funds. Accounts for several other restricted monies that are classified as special revenue funds.

The City reports the following major enterprise fund:

The Sewer Service Fund accounts for the sewer service charges received by the City based on the use of water by East Bay Municipal Utility District customers residing in the City. The proceeds from the sewer charges are used for the construction and maintenance of sanitary sewers and storm drains and the administrative costs of the fund.

Additionally, the City reports the following funds:

The Internal Service Funds account for the purchases of automotive and rolling equipment; radio and other communication equipment; the repair and maintenance of City facilities; acquisition, maintenance and provision of reproduction equipment and services; acquisition of inventory provided to various City departments on a cost reimbursement basis; procurement of materials, supplies, and services for City departments; and the service and maintenance of City information technology systems.

The Pension Trust Fund accounts for the closed benefit plan that covers uniformed employees hired prior to July 1976.

The Private-Purpose Trust Funds include: (a) the Oakland Redevelopment Successor Agency Trust Fund, which accounts for the custodial responsibilities that are assigned to the Oakland Redevelopment Successor Agency with passage of AB X1 26 and (b) the Other Private-Purpose Trust Fund, which accounts for the Telecommunications Sinking Fund, which holds deposits made by the owners of permitted telecommunications facilities to cover the costs of removing the facility if abandoned.

The Custodial Funds include various City funds established to report fiduciary activities not held in a trust or equivalent arrangement.

C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting , as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
37 the year for which they are levied. Grants and similar items are recognized as revenues as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collected within the current period or soon enough thereafter to pay liabilities of the current period.

The City considers property tax revenues to be available for the year levied and if they are collected within 60 days of the end of the fiscal period. All other revenues are considered to be available if they are collected within 90 days of the end of the fiscal period. Expenditures are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

Property taxes, state and local taxes, grants, licenses, charges for services, and interest and investment income associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Special assessments are recorded as revenues and receivables to the extent installments are considered available. The estimated installments receivable not considered available, as defined above, are recorded as receivables and offset by deferred inflows of resources.

Charges between the City and the Port are not eliminated because the elimination of these charges would distort the direct costs and revenues reported.

Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services in connection with the fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise and internal service funds are charges for customer services including: sewers, golf courses, information technology and support, vehicle acquisition and maintenance, radio and telecommunication support charges, charges for facilities maintenance, and reproduction services. Operating expenses for enterprise funds and internal service funds include the cost of services, administrative expenses, and depreciation on capital assets. All other revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed.

D. Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Actual results could differ from those estimates.

E. New Pronouncements
In January 2017, GASB issued Statement No. 84, Fiduciary Activities. The objective of this statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. This statement establishes criteria for identifying fiduciary activities of all state and local governments. The City implemented this statement as of July 1, 2020.

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
38 As a result, the City restated net position/ fund balance as of June 30, 2020 as follows:

Beginning Net
Position/Fund
Balance, As
Previously
Reported
Cumulative Effect
of Change in
Accounting
Principle
Beginning Net
Position/Fund
Balance, As
Restated
Primary Government:

Governmental Activities $ (309,443) $ 2,124 $ (307,319) Business-Type Activities 244,425 — 244,425
Total Primary Government $ (65,018) $ 2,124 $ (62,894)
Governmental Funds:

General Fund $ 404,268 $ — $ 404,268
Federal/State Grant Fund 27,938 — 27,938
Low and Moderate Income Housing
Asset Fund 66,324 — 66,324
Municipal Capital Improvement 401,760 — 401,760
Other Special Revenue 191,671 — 191,671
Other Governmental Funds 51,620 2,124 53,744
Total Governmental Funds $ 1,143,581 $ 2,124 $ 1,145,705 Fiduciary Funds:

Pension Trust Fund $ 378,975 $ — $ 378,975
Private-Purpose Trust Funds (198,042) (2,613) (200,655) Custodial Funds — 489 489
Total Fiduciary Funds $ 180,933 $ (2,124) $ 178,809
During the year ended June 30, 2021 the City adopted GASB Statement No. 90, Majority Equity Interests-an amendment of GASB Statements No. 14 and No. 61. The primary objectives of this statement are to improve the consistency and comparability of reporting a government’s majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units. The adoption of this statement did not have a material impact on the City’s June 30, 2021 financial statements.

During the year ended June 30, 2021 the City adopted GASB Statement No. 98, The Annual Comprehensive Financial Report. This statement establishes the term annual comprehensive financial report and its acronym ACFR. The new term and acronym replace instances of comprehensive annual financial report and its acronym in generally accepted accounting principles for state and local governments. The adoption of this statement did not have a material impact on the City’s June 30, 2021 financial statements.

The City is currently analyzing its accounting practices to determine the potential impact on the financial statements for the following GASB Statements, which have been updated to reflect revised effective dates as applicable:

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
39 • In June 2017, the GASB issued Statement No. 87, Leases. The objective of the statement is to improve the accounting and financial reporting for leases by governments. This statement requires recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the consistency of information about governments’ leasing activities. The requirements of this statement are effective for the City’s fiscal year ending June 30, 2022. • In June 2018, the GASB issued Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period . The objectives of this statement are (1) to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and (2) to simplify accounting for interest cost incurred before the end of a construction period. This statement establishes accounting requirements for interest cost incurred before the end of a construction period. The requirements of this statement are effective for the City’s fiscal year ending June 30, 2022.
• In May 2019, the GASB issued Statement No. 91, Conduit Debt Obligations . The primary objectives of this statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. The requirements of this statement are effective for the City’s fiscal year ending June 30, 2023.
• In January 2020, the GASB issued Statement No. 92, Omnibus 2020. The primary objectives of this statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. Certain provisions of this statement became effective upon issuance. The remaining requirements of this statement are effective for the City's fiscal year ending June 30, 2022. • In March 2020, the GASB issued Statement No. 93, Replacement of Interbank Offered Rates .

The primary objectives of this statement are to address accounting and financial reporting implications that result from the replacement of an interbank offered rate. The removal of LIBOR as an appropriate benchmark interest rate and all other requirements of this statement are effective for the City's fiscal year ending June 30, 2022.
• In March 2020, the GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements. The primary objective of this statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements. The requirements of this statement are effective for the City's fiscal year ending June 30, 2023.
• In May 2020, the GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements. This statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset - an intangible asset - and a corresponding subscription liability;

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
40 (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the standards established in Statement No. 87, Leases, as amended. The requirements of this statement are effective for the City's fiscal year ending June 30, 2023.
• In June 2020, GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans - an amendment of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32. The primary objectives of the statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code Section 457 deferred compensation plans that meet the definition of a pension plan and for benefits provided through those plans. The requirements of this statement are effective for the City's fiscal year ending June 30, 2022.

F. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position or Equity

1. Cash and Investments
The City follows the practice of pooling cash of all operating funds for investment, except for the ORSA and the Police and Fire Retirement System (PFRS), whose funds are primarily held by outside custodians. The City measures its investments at fair value and categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is a market-based measurement, using observable market transactions or available market information. The City adjusts the carrying value of its investments to reflect their fair value at each fiscal year-end, and it includes the effects of these adjustments in income for that fiscal year.

Income earned or losses arising from the investment of pooled cash are allocated on a monthly basis to the participating funds and component units based on their proportionate share of the average daily cash balance.

Proceeds from debt and other cash and investments held by fiscal agents by agreement are classified as restricted assets.

For purposes of the statement of cash flows, the City considers all highly liquid unrestricted and restricted investments with a maturity of three months or less when purchased to be cash equivalents.

The proprietary funds’ investments in the City’s cash and investment pool are, in substance, demand deposits and are therefore considered to be cash equivalents.

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
41 2. Property Taxes
The County of Alameda is responsible for assessing, collecting, and distributing property taxes in accordance with enabling state law, and for remitting such amounts to the City. Property taxes are assessed and levied as of July 1 on all taxable property located in the City, and result in a lien on real property on January 1. Property taxes are then due in two equal installments-the first on November 1 and the second on February 1 of the following calendar year and are delinquent after December 10 and April 10, respectively. General property taxes are limited to a flat 1% rate applied to the 1975-76 full value of the property, or 1% of the sales price of the property or of the construction value added after the 1975-76 valuation. Assessed values on properties (exclusive of increases related to sales and construction) can rise a maximum of 2% per year. Taxes were levied at the maximum 1% rate during the year ended June 30, 2021.

3. Due From/Due To Other Funds and Internal Balances
During the course of operations, numerous transactions and borrowings occur between individual funds for goods provided or services rendered and funds that have overdrawn their share of pooled cash and interfund loans. In the fund financial statements, these receivables and payables are classified as “due from other funds” and “due to other funds”, respectively. In the government-wide financial statements, these receivables and payables are eliminated within the governmental activities and business-type activities columns. Net receivables and payables between the governmental activities and business-type activities are classified as internal balances.

4. Interfund Transfers
In the fund financial statements, interfund transfers are recorded as transfers in/out except for certain types of transactions that are described below:
• Charges for services are recorded as revenues of the performing fund and expenditures/ expenses of the requesting fund. Unbilled costs are recognized as an asset of the performing fund and a liability of the requesting fund at the end of the fiscal year. • Reimbursements for expenditures, initially made by one fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as a reduction of expenditures in the fund that is reimbursed. Reimbursements are eliminated for purposes of government-wide reporting.

5. Prepaid Bond Insurance, Original Issue Discounts and Premiums, and Refundings Prepaid bond insurance costs are amortized using the straight-line method over the life of the bonds.

Amortization of these balances is recorded as a component of operating expenses. In the government- wide, proprietary fund, and fiduciary fund financial statements, long-term debt and other long-term obligations are reported as liabilities. Bond premiums and discounts are amortized using the straight- line method over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. Gains or losses from refunding of debt are reported as deferred inflows or outflows of resources and amortized over the shorter of the life of the refunded debt or refunding debt. Amortizations of bond premiums and discounts and gains or losses from refunding of debt are recorded as a component of interest expense.

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
42 In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

6. Inventories
Inventories, consisting of materials and supplies held for consumption, are stated at cost. Cost is calculated using the average cost method. Inventory items are considered expensed when consumed rather than when purchased.

7. Capital Assets
Capital assets, which include land, museum collections, intangibles, construction in progress, facilities and improvements, furniture, machinery and equipment, infrastructure (e.g., streets, streetlights, traffic signals, and parks), sewers, and storm drains, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements and in the proprietary fund statements. Capital assets are defined by the City as assets with an initial, individual cost of $5,000 or more and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. Capital outlay is recorded as expenditures in the governmental funds and as assets in the government-wide and proprietary financial statements to the extent the City’s capitalization threshold is met. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend its useful life is not capitalized.

The City has a collection of artwork presented for public exhibition and education that is being preserved for future generations. These items are protected, kept unencumbered, cared for, and preserved by the City. The proceeds from the sale of any pieces of the collection are used to purchase other acquisitions for the collection. However, future acquisitions purchased with authorized budgeted City funds during a fiscal year will be reported as non-depreciable assets in the City’s financial statements.

The City’s depreciation of capital assets is provided on the straight-line basis over the following estimated useful lives:

Facilities and improvements 5-40 years
Furniture, machinery and equipment 2-20 years
Sewer and storm drains 50 years
Infrastructure 5-50 years
The Port’s depreciation of capital assets is provided on the straight-line basis over the following estimated useful lives:

Building and improvements 5-50 years
Container cranes 25 years
Infrastructure 10-50 years
Other equipment 3-40 years
Software 3-10 years

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
43 8. Property Held for Resale
Property held for resale was primarily acquired as part of the Former Agency’s redevelopment program. These properties are both residential and commercial. Costs of administering the projects are charged to the municipal capital improvement fund as expenditures are incurred. A primary function of the redevelopment process is to prepare land for specific private development. For financial statement presentation, property held for resale is stated at the lower of estimated cost or estimated conveyance value. Estimated conveyance value is management’s estimate of net realizable value of each property parcel based on its current intended use.

During the period it is held by the City, property held for resale may generate rental or operating income. This income is recognized as it is earned in the City’s statement of activities and generally is recognized in the City’s governmental funds in the same period depending on when the income becomes available on a modified accrual basis of accounting. The City does not depreciate property held for resale, as it is the intention of the City to only hold the property for a period of time until it can be resold for development.

9. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The City has deferred outflows of resources related to pension and OPEB contributions subsequent to measurement date and other pension and OPEB related deferred outflows.

Also, losses on refunding result from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or the refunding debt. Amortization of these balances is recorded as a component of interest expense.

In addition to liabilities, the statement of net position and governmental funds balance sheet will report a separate section for deferred inflows of resources . This separate financial statement element represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has deferred inflows of resources related to unavailable revenues reported under the modified accrual basis of accounting in the governmental funds balance sheet. The governmental funds report unavailable revenues from property taxes, notes and loan receivables, grant receivables/advances from the federal government and State, and other sources as appropriate. These amounts are deferred and recognized as revenues in the period the amounts become available. The City also has deferred inflows of resources related to the unamortized gains on refunding of debt and pension and OPEB related deferred inflows.

10. Compensated Absences – Accrued Vacation, Sick Leave, and Compensatory Time The City’s policy and its agreements with employee groups permit employees to accumulate earned but unused vested vacation, sick leave and other compensatory time. All earned compensatory time is accrued when incurred in the government-wide financial statements and the proprietary funds financial statements. A liability for these amounts is reported in the governmental funds only if they are due and payable.

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
44 11. Retirement Plans
The City has three defined benefit retirement plans: Oakland Police and Fire Retirement System (PFRS), and the Miscellaneous and the Public Safety Plans of the California Public Employees’ Retirement System (CalPERS) (collectively, the Retirement Plans). For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s Retirement Plans and additions to/ deductions from the Retirement Plans’ fiduciary net position have been determined on the same basis as they are reported by PFRS and CalPERS. Employer contributions and member contributions made by the employer to the Retirement Plans are recognized when due and the employer has made a formal commitment to provide the contributions. Benefits and refunds are recognized when due and payable in accordance with the provisions of the Retirement Plans. Refer to Note III, part A for additional information.

12. Other Postemployment Benefits (OPEB)
The City’s OPEB plan covers the City’s police, fire, and other (miscellaneous) employees. City retirees are eligible for retiree health benefits if they meet certain requirements relating to age and service. Retiree health benefits are described in the labor agreements between the City and local unions and in City resolutions. The demographic rates used for CalPERS were public safety employees retirements benefits under a 3 percent at 50 formula and miscellaneous employees retirement benefits under a 2.7 percent at 55 formula. In addition, the Port’s Retiree Healthcare Plan covers the Port’s employees. Refer to Note III, part B for additional information.

13. Pollution Remediation Obligations
The City and the Port record liabilities related to pollution remediation activities. See Note II, part G and Note III, part C.4 for additional information.

14. Fund Balances
Governmental funds classify fund balances based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which those funds can be spent. Fund balance for the City’s governmental funds consists of the following categories:
• Nonspendable Fund Balance: includes amounts that cannot be spent because they are either not in spendable form or legally or contractually required to be maintained intact. Items that are not expected to be converted to cash, for example, inventories and prepaid amounts, are included in this classification, as well as property held for sale when no restrictions apply to the use of proceeds.
• Restricted Fund Balance: includes amounts that can be spent only for the specific purposes stipulated by external resource providers, constitutionally or through enabling legislation.

Restrictions may effectively be changed or lifted only with the consent of resource providers. It also includes a legally enforceable requirement that the resources can only be used for specific purposes enumerated in the law.
• Committed Fund Balance: includes amounts that can only be used for the specific purposes determined by City Council ordinance, which is the City’s highest level of decision-making

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
45 authority. Commitments may be changed or lifted only by the City taking the same formal action that imposed the constraint originally.
• Assigned Fund Balance: comprises amounts intended to be used by the City for specific purposes that are neither restricted nor committed through City Council budgetary action, which includes appropriations and revenue sources pertaining to the next fiscal year’s budget. The City Council adopted a resolution establishing the City’s policy budget, which states that assigned fund balances are intended to be used for specific purposes through City Council budgetary actions. Intent is expressed by (a) the City Council or (b) the City Administrator to which the City Council has delegated the authority to assign amounts to be used for specific purposes. This category includes the City’s encumbrances, project carry-forwards, and continuing appropriations. • Unassigned Fund Balance : are amounts technically available for any purpose. It is the residual classification for the general fund and includes all amounts not contained in the other classifications. Other governmental funds may only report a negative unassigned balance that was created after classification of restricted, committed, and assigned fund balance.

In circumstances when an expenditure is made for a purpose for which amounts are available in multiple fund balance classifications, fund balance is generally depleted in the order of restricted, committed, assigned, and unassigned.

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
46 Fund balances for all the major and nonmajor governmental funds as of June 30, 2021 , were distributed as follows (in thousands):

General Fund
Federal/State
Grant Fund LMIHF1
Municipal
Capital
Improvement
Fund
Other Special
Revenue
Fund
Other
Governmental
Funds Total
Nonspendable:

Prepaid items $ 723 $ 135 $ — $ 1 $ 285 $ 45 1,189
Property held for resale
with no restrictions on use
of proceeds
17,964 — — — — — 17,964
Total nonspendable 18,687 135 — 1 285 45 19,153
Restricted for:

Capital projects — 21,716 1,580 181,557 — 37,045 241,898 Pension obligations
annuity 50,164 — — — — — 50,164
Pension obligations PFRS 217,647 — — — — — 217,647 Debt service — — — — — 23,974 23,974
Property held for sale — — 30,677 123,453 — — 154,130 Housing projects — — 36,578 — — — 36,578
Total restricted 267,811 21,716 68,835 305,010 — 61,019 724,391 Committed for:

Vital services 251 — — — — — 251
Affordable housing 38,488 — — — — — 38,488
Measure Q, Library, Kids
First, and museum trust — — — — 31,837 1,765 33,602 Total committed 38,739 — — — 31,837 1,765 72,341 Assigned for:

Measure HH projects 7,825 — — — — — 7,825
Capital projects 3,724 — — — 173,189 — 176,913
General government 7,704 — — — — — 7,704
Public safety 9,993 — — — — — 9,993
Community and human
services 2,452 — — — — 5,733 8,185
Community and
economic development 4,073 — — — — — 4,073
Public works and
transportation 6,015 — — — — — 6,015
Total assigned 41,786 — — — 173,189 5,733 220,708 Unassigned 96,943 — — — — (935) 96,008
Total $ 463,966 $ 21,851 $ 68,835 $ 305,011 $ 205,311 $ 67,627 $ 1,132,601 1 Low and Moderate Income Housing Asset Fund

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
47 General Fund Balance Reserve Policy: The City Council approved the original City Reserve Policy on March 22, 1994. Creation of the policy was to help pay any unanticipated expenditures and pay for claims arising from the City’s insurance program. In May 2010, the City adopted a revised reserve policy equal to seven and one-half percent (7.5%) for unassigned fund balance of the General Purpose Fund (GPF) appropriation for each fiscal year. The GPF accounts for the City’s operating budget that pays for basic programs and services as well as elected offices and municipal business functions. The GPF is reported within the general fund.

On May 15, 2018, the City Council revised the definition and use of excess Real Estate Transfer Tax (RETT) revenues and the use of one-time revenues (Ordinance No. 13487 C.M.S.). The policy defines excess Real Estate Transfer Tax as any amounts of RETT revenues whose value exceeds 15 percent of the corresponding GPF Tax Revenues (inclusive of RETT). The excess RETT shall be used in the following manner:
• At least 25 percent shall be allocated to the Vital Services Stabilization Fund until the value in such fund is projected to equal to 15 percent of GPF revenues over the coming fiscal year. • At least 25 percent shall be used to fund accelerated debt retirement and unfunded long-term obligations, including negative fund balances, the PFRS liability, other unfunded retirement and pension liabilities, unfunded paid leave liabilities, and OPEB liabilities. • The remainder shall be used to fund one-time expenses, augment the General Purpose Fund Emergency Reserve, and to augment the Capital Improvements Reserve Fund.

Use of the “excess” RETT revenue for purposes other than those established above may only be allowed by majority vote of the City Council through a separate resolution.

The policy also requires the City to conform to the following regarding the use of one-time discretionary revenue:
• Fiscal prudence requires that any unrestricted one-time revenues be used for one-time expenses.

Therefore, one-time revenues shall be used in the following manner, unless they are legally restricted to other purposes: to fund one-time expenditures, to fund debt retirement and unfunded long-term obligations such as negative fund balances, PFRS unfunded liabilities, CalPERS pension unfunded liabilities, paid leave unfunded liabilities, and OPEB unfunded liabilities; or shall remain as fund balance.

Use of “one-time revenues” for purposes other than those established may only be allowed by a majority vote of the City Council through a separate resolution. Additionally, the policy includes the requirement that the City maintain a Vital Services Stabilization Fund (VSSF). In years when the City forecasts that total GPF revenues will be less than the current year's revenues, or anytime significant service reductions, such as layoffs or furloughs, are contemplated due to adverse financial conditions, use of this fund must be considered to maintain existing services. Use of the VSSF must be authorized by City Council resolution. The resolution shall explain the need for using the VSSF. The resolution shall also include steps the City will take in order to replenish the VSSF in future years.

In June 2020, City Council adopted Resolution 88174 to make mid-cycle budget adjustments for fiscal year 2020-21. These adjustments included the appropriation of $14.6 million from the VSSF to support general fund services. At June 30, 2021 , the general fund reported the remaining Vital Services Stabilization reserve of $0.3 million as committed fund balance. The City anticipates restoring this reserve to policy levels over time and included appropriations of $5.0 million for this purpose in its adopted biennial budget for the fiscal years ending June 30, 2022 and June 30, 2023.

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
48 As of June 30, 2021 , the City has $96.9 million of unassigned general fund balance of which $52.7 million represents the General Purpose Fund Emergency Reserve. The City's Consolidated Fiscal Policy mandates a General Purpose Emergency Reserve equal to 7.5 percent of General Purpose Fund appropriations, or $48.3 million for FY 2020-21, and requires the City Administrator to present a strategy to the City Council when reserves fall below this level.

15. Net Position
The government-wide and proprietary fund financial statements utilize a net position presentation.

Net position is categorized as net investment in capital assets, restricted, and unrestricted. • Net Investment in Capital Assets groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt and debt-related deferred outflows and inflows of resources that are attributable to the acquisition, construction, or improvement of these assets reduce the balance in this category. • Restricted Net Position represents net position that has external restrictions imposed by creditors, grantors, contributors, or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation. Enabling legislation authorizes the City to assess, levy, charge, or otherwise mandate payment of resources and includes a legally enforceable requirement that those resources be used only for the specific purposes stipulated in the legislation.
• Unrestricted Net Position represents net position of the City that is not restricted for any project or purpose.

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
49 II DETAILED NOTES ON ALL FUNDS
A. CASH, DEPOSIT, AND INVESTMENTS
The City maintains a cash and investment pool consisting of City funds and cash held for PFRS and the Port. The City’s funds are invested according to the investment policy adopted by the City Council. The objectives of the policy are legality, safety, liquidity, diversity, and yield. The policy addresses soundness of financial institutions in which the City can deposit funds, types of investment instruments permitted by the California Government Code, duration of the investments, and the percentage of the portfolio that may be invested in:

Investment Type
Maximum
Maturity
Maximum
Portfolio Exposure
Maximum Issuer
Exposure
Credit
Requirement
U.S. Treasury Securities 5 years 20% n/a n/a
Federal Agencies and Instrumentalities 5 years none n/a n/a Banker's Acceptances 180 days 40% 5% A1, P1 or F1 or better Commercial Paper 270 days 25% 5% A1, P1 or F1 or better Asset-backed Commercial Paper 270 days 25% 5% A1, P1 or F1 or better Local Government Investment Pools n/a 20% n/a Top ranking Medium Term Notes 5 years 30% 5% A3, A- or A- or better Negotiable Certificates of Deposits 5 years 30% 5% A, A2 or A or better Repurchase Agreements 360 days none n/a Collateral limited to U.S. securities Reverse Repurchase Agreements 92 days 20% n/a Limited to primary dealers Secured Obligations and Agreements 2 years 20% 5% AA or better Certificates of Deposit 360 days n/a n/a A, A2 or A or better Money Market Mutual Funds n/a 20% n/a Top ranking
State Investment Pool (LAIF) n/a none n/a n/a
Local City/Agency Bonds 5 years none 5% n/a
State of California Obligations and Others 5 years none 5% n/a Other Local Agency Bonds 5 years none 5% n/a
Deposits - Private Placement n/a 50% 10% n/a
Supranationals 5 years 30% n/a AA or better
Public Bank Obligations 5 years none n/a n/a
The City’s investment policy stipulates that the collateral to back up repurchase agreements be priced at market value and be held in safekeeping by the City’s primary custodian. Additionally, the City Council has adopted certain requirements prohibiting investments in nuclear weapons makers and restricting investments in U.S. Treasury bills and notes due to their use in funding nuclear weapons research and production. The City has also adopted divestiture resolutions limiting investments in firms deriving business from tobacco products, fossil fuels, firearms, and immigration enforcement.

Other deposits and investments are invested pursuant to the governing bond covenants, deferred compensation plans, or retirement systems’ investment policies. Under the investment policies, the investment counsel is given the full authority to accomplish the objectives of the bond covenants or retirement systems subject to the discretionary limits set forth in the policies.

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
50 As of June 30, 2021 , total City cash, deposits, and investments at fair value are as follows (in thousands):

Primary Government Fiduciary Funds Component Unit
Governmental
Activities
Business-type
Activities
Pension Trust
Fund
Private-
Purpose
Trust Funds Total Port
Cash and investments $ 1,063,308 $ 75,186 $ 6,324 $ 62,547 $ 1,207,365 $ 502,032 Restricted cash and
investments 253,201 800 455,222 8,247 717,470 68,545 Securities lending
collateral — — 48,551 — 48,551 —
Total $ 1,316,509 $ 75,986 $ 510,097 $ 70,794 $ 1,973,386 $ 570,577 City pooled deposits $ 20,366 $ —
City pooled investments 1,127,608 523,951
City restricted investments 253,122 —
PFRS restricted investments 503,773 —
ORSA deposits 10,272 —
ORSA investments 58,245 —
Port's cash and investments — 46,626
Total $ 1,973,386 $ 570,577
Primary Government
Hierarchy of Inputs: The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets, Level 2 inputs are significant other observable inputs, and Level 3 inputs are significant unobservable inputs. Fixed income investments are valued using a variety of techniques such as matrix pricing, market corroborated pricing inputs such as yield curve, and other market related data and classified in Level 2 of the fair value hierarchy. Money market mutual funds and LAIF have maturities of one year or less from fiscal year-end and are not subject to classification in the fair value hierarchy.

The City’s pooled and restricted investments have the following recurring fair value measurements as of June 30, 2021 (in thousands):

Level One Level Two Level Three Total
Investment by fair value level:

U.S. Government Agency Securities $ — $ 1,290,562 $ — $ 1,290,562 Medium Term Notes — 3,983 — 3,983
Negotiable Certificates of Deposit — 70,008 — 70,008 U.S. Treasury Bills 366 — — 366
Annuity Contracts — — 48,000 48,000
Total investments by fair value level $ 366 $ 1,364,553 $ 48,000 1,412,919 Investments measured at net asset value (NAV):

Money Market Mutual Funds 416,756
Local Agency Investment Fund (LAIF) 75,006
Total investment measured at fair value $ 1,904,681

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
51 Custodial Credit Risk : Custodial credit risk is the risk that in the event of a failure of a depository financial institution or counterparty to a transaction, the City may be unable to recover the value of the investments or collateral securities in the possession of an outside party. To protect against fraud and potential losses from the financial collapse of securities dealers, all securities owned by the City shall be held in the name of the City for safekeeping by a third party bank trust department, acting as an agent for the City under the terms of the custody agreement.

At June 30, 2021 , the carrying amount of the City’s deposits was $20.4 million . Deposits include checking accounts, interest earning savings accounts, and money market accounts. The bank balance of $20.7 million was covered by FDIC insurance or collateralized with securities held by the pledging financial institution in the City’s name, in accordance with Section 53652 of the California Government Code.

The California Government Code requires that a financial institution secure its deposits made by state or local government units by pledging securities in an undivided collateral pool held by the depository regulated under the State law (unless so waived by the government units). The fair value of the pledged government securities and/or first trust deed mortgage notes held in the collateral pool must be at least 110 percent and 150 percent, respectively, of the deposit amount. The collateral must be held by the pledging financial institution’s trust department and is considered held in the City’s name.

Credit Risk: Credit risk represents the possibility that the issuer/counterparty to an investment will be unable to fulfill its obligations. The most effective method for minimizing the risk of default by an issuer is to invest in high quality securities. Under the City investment policy, short-term debt shall be rated at least A-1 by S&P Global Ratings (S&P), at the time security is purchased. Long-term debt shall be rated at least A by S&P. Per the California Debt and Management Advisory Commission (CDIAC), it is recommended that the portfolio be monitored, as practical, for subsequent changes in credit rating of existing securities.

The following tables show the City’s credit risk for the pooled and restricted investment portfolios as of June 30, 2021 (in thousands):

Pooled Investments
Ratings as of June 30, 2021
Fair Value AAA AA A A-1 Not Rated
U.S Government Agency Securities (Coupon/Bullet) $ 458,724 $ — $ 458,724 $ — $ — $ — U.S Government Agency Securities (Discount) 828,838 — 828,838 — — — Medium Term Notes 3,983 — — 3,983 — —
Money Market Mutual Funds 215,000 215,000 — — — — Local Agency Investments Fund (LAIF) 75,006 — — — — 75,006 Negotiable Certificates of Deposit 70,008 — — — 70,008 — Total pooled investments $ 1,651,559 $ 215,000 $ 1,287,562 $ 3,983 $ 70,008 $ 75,006

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
52 Restricted Investments
Ratings as of June 30, 2021
Fair
Value AAA AA A-1
Not
Rated
U.S Government Agency Securities $ 3,000 $ — $ 3,000 $ — $ — Money Market Mutual Funds 201,756 199,588 — — 2,168 U.S. Treasury Bills 366 366 — — —
Annuity Contracts 48,000 — — — 48,000
Total Restricted Investments $ 253,122 $ 199,954 $ 3,000 $ — $ 50,168 Concentration of Credit Risk: The City has an Investment Policy related to the City’s cash and investment pool, which is subject to annual review. Under the City’s Investment Policy, no more than five percent (5%) of the total investments held by the City may be invested in the securities of any one issuer, except the obligations of the United States government or government-sponsored enterprises, repurchase agreements and reverse purchase agreements, certificates of deposit, money market mutual funds, supranationals, public bank obligations, investment with the Local Agency Investment Fund, and proceeds of or pledged revenues for any tax and revenue anticipation notes. In addition, no more than ten percent (10%) of the total investments held by the City may be privately placed as deposits with one issuer. Per the Investment Policy, investments should conform to Sections 53600 et seq. of the California Government Code and the applicable limitations contained within the policy. Certain other investments are governed by bond covenants, which do not restrict the amount of investment in any one issuer.

Investments in issuers that exceed 5 percent of the City’s pooled investment portfolio at June 30, 2021 are as follows (in thousands):

Investment Type/Issuer Amount
Percent of City's
Investment
Portfolio
U.S. Government Agency Securities:

Federal Home Loan Bank $ 622,020 37.7 %
Federal Farm Credit Bank 604,556 36.6 %
Interest Rate Risk: This risk represents the possibility that an interest rate change could adversely affect an investment’s fair value. The longer the maturity of an investment, the greater the sensitivity its fair value is to changes in market interest rates.

As a means for limiting its exposure to changing interest rates, Section 53601 of the State of California Government Code and the City’s Investment Policy limit certain investments to short-term maturities such as certificates of deposit and commercial paper, whose maturities are limited to 360 days and 270 days, respectively. Also, Section 53601 of the State of California Government Code limits the maximum maturity of any investment to be no longer than 5 years unless authority for such investment is expressly granted in advance by the City Council or authorized by bond covenants. The City continues to purchase a combination of short-term and long-term investments to minimize such risks.

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
53 The City uses the segmented time distribution method of disclosure for its interest rate risk. As of June 30, 2021, the City had the following investments and original maturities (in thousands):

Pooled Investments
Maturity
Investment Type Fair Value
Interest
Rates (%)
12 Months
or Less 1-3 Years 3-5 Years
U.S. Government Agency Securities (Coupon/Bullet) $ 458,724 0.04-1.25 $ 143,798 $ 124,065 $ 190,861 U.S. Government Agency Securities (Discount) 828,838 0.00-0.07 828,838 — — Medium Term Notes 3,983 0.65 — 3,983 —
Money Market Mutual Funds 215,000 0.01-0.03 215,000 — — Local Agency Investment Fund (LAIF) 75,006 0.26 75,006 — — Negotiable Certificates of Deposit 70,008 0.03-0.08 70,008 — — Total pooled investments $ 1,651,559 $ 1,332,650 $ 128,048 $ 190,861 Restricted Investments
Maturity
Investment Type Fair Value
Interest
Rates (%)
12 Months
or Less 1-3 Years 3-5 Years
5 Years or
More
U.S. Government Agency Securities $ 3,000 0.15 $ 3,000 $ — $ — $ — Money Market Mutual Funds 201,756 0.00-0.03 201,756 — — — U.S. Treasury Bills 366 0.05 366 — — —
Annuity Contracts 48,000 1.3 — — — 48,000
Total restricted investments $ 253,122 $ 205,122 $ — $ — $ 48,000 Other Disclosures: As of June 30, 2021, the City’s investment in LAIF is $75.0 million. LAIF is part of the Pooled Money Investment Account (PMIA) with a total portfolio of approximately $193.3 billion, 97.7 percent is invested in non-derivative financial products and 2.3 percent in structured notes and asset-backed securities. The Local Investment Advisory Board (Advisory Board) has oversight responsibility for LAIF. The Advisory Board consists of five members as designated by State statute. The value of the pool shares in LAIF, which may be withdrawn, is determined on an amortized cost basis that is different from the fair value of the City’s position in the pool.

Oakland Police and Fire Retirement System (PFRS)
Deposits in the City’s Investment Pool
As of June 30, 2021, cash and cash deposits consisted of cash in treasury held in the City’s cash and investment pool as well as cash deposits held in bank and with a custodian. These funds are invested according to the investment policy adopted by the City Council. As of June 30, 2021, PFRS’ share of the City’s investment pool totaled $6.3 million. As of June 30, 2021 , PFRS also had cash and cash deposits not held in the City’s investment pool that totaled $5 thousand.

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
54 Investments
PFRS’ investment policy authorizes investment in U.S. equities, international equities, U.S. fixed income instruments including U.S. Treasury notes and bonds, government agency mortgage-backed securities, U.S. corporate notes and bonds, collateralized mortgage obligations, Yankee bonds and non-U.S. issued fixed income securities denominated in foreign currencies. PFRS’ investment portfolio is managed by external investment managers, except for the bond iShares, which are managed internally. During the year ended June 30, 2021 , the number of external investment managers was twelve.

The PFRS investments are also restricted by the City Charter. In November 2006, City voters passed Measure M to amend the City Charter to allow the PFRS Board to invest in non-dividend paying stocks and to change the asset allocation structure from 50 percent equities and 50 percent fixed income to the Prudent Person Standard as defined by the California Constitution.

PFRS’ investment policy limits fixed income investments to a maximum average duration of 10 years and a maximum remaining term to maturity (single issue) at purchase of 30 years, with targeted portfolio duration of between 3 to 8 years and targeted portfolio maturity of 15 years. PFRS’ investment policy allows the fixed income managers to invest in fixed income investments and some exposure to investments below an investment grade rating, as long as the portfolio maintains an average credit quality of BBB (investment grade using S&P, Moody's, or Fitch ratings).

PFRS’ investment policy states that investments in derivative securities known as collateralized mortgage obligations (CMOs) shall be limited to a maximum of 20 percent of a broker account’s fair value with no more than 5 percent in any one issue. CMOs are mortgage-backed securities that create separate pools of pass-through rates for different classes of bondholders with varying maturities. The fair value of CMOs are considered sensitive to interest rate changes because they have embedded options.

The investment policy allows for each fixed income asset manager to have a maximum of 10 percent of any single security investment in their individual portfolios with the exception of U.S. government securities, which is allowed to have a maximum of 25 percent in each manager’s portfolio.

The following was PFRS’ adopted asset allocation as of June 30, 2021:

Asset Class Target Allocation
Fixed income 21 %
Credit 2 %
Covered calls 5 %
Domestic equity 40 %
International equity 12 %
Crisis risk offset 20 %
Total 100 %
The PFRS Board's target allocation does not include cash and cash equivalents, which are designated for approved administrative budget purposes.

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
55 Hierarchy of Inputs: The PFRS has the following recurring fair value measurements as of June 30, 2021 (in thousands):

Level One Level Two Level Three Total
Investment by fair value level:

Bonds $ 12,635 $ 104,543 $ — $ 117,178
Domestic equities and mutual funds 93,555 707 — 94,262 International equities and mutual funds 58,540 — — 58,540 Alternative investments 43,941 76 — 44,017
Total investments by fair value level $ 208,671 $ 105,326 $ — $ 313,997 Investments measured at net asset value (NAV):

Short-term investment funds 7,787
Fixed income funds 17,202
Domestic equities and mutual funds 116,244
Foreign currency contracts, net (8)
Securities lending collateral 48,551
Total investments measured at NAV 189,776
Total $ 503,773
Interest Rate Risk: The weighted average duration for PFRS’ fixed income investment portfolio excluding fixed short-term investments, foreign currency contracts, and securities lending investments was 7.37 years as of June 30, 2021.

As of June 30, 2021, PFRS had the following fixed income investments by category (in thousands):

Investment Type Fair Value
Modified
Duration
(Years)
Short-Term Investment Funds $ 7,787 n/a
Foreign Currency Exchange Contracts, net (8) n/a
Long-term Investments:

U.S. Government Bonds:

U.S. Treasuries 18,816 5.79
U.S. Government Agency Securities 32,516 8.26
Total U.S. Government Bonds 51,332
Corporate Bonds and Other Bonds
Corporate Bonds 82,957 7.38
Other Government Bonds 91 7.90
Total Corporate and Other Bonds 83,048
Total Long-Term Investments $ 134,380 7.37
Securities Lending Collateral $ 48,551

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
56 Fair Value Highly Sensitive to Change in Interest Rates: The terms of a debt investment may cause its fair value to be highly sensitive to interest rate changes. PFRS has invested in CMOs, which are mortgage-backed bonds that pay pass-through rates with varying maturities. The fair values of CMOs are considered sensitive to interest rate changes because they have embedded options, which are triggers related to quantities of delinquencies or defaults in the loans backing the mortgage pool.

If a balance of delinquent loans reaches a certain threshold, interest and principal that would be used to pay junior bondholders is instead directed to pay off the principal balance of senior bondholders and shortening the life of the senior bonds. The following table shows PFRS’ investments in CMOs as of June 30, 2021 (in thousands):

Securities Name
Weighted
Average
Coupon Rate
Weighted
Average
Maturity
(Years) Fair Value
Percent of
Total
Investments
Mortgage-Backed Securities 2.72 % 23.28 $ 20,790 4.13 % Credit Risk: This is the risk that an issuer or other counterparty to an investment will not fulfill its obligation. The following tables provide information as of June 30, 2021 concerning credit risk of fixed income securities (in thousands):

Investment Type
S&P/ Moody's
Rating Fair Value
Short-Term Investment Funds Not Rated $ 7,787
Foreign Currency Exchange Contracts, net Not Rated (8) The following table provides information as of June 30, 2021 concerning the credit risk of fixed income investments by long-term investment rating (in thousands):

S&P/ Moody's Rating Fair Value
Percent of
Total Fair
Value
AAA/Aaa $ 53,059 39.4 %
AA/Aa 34,227 25.5 %
A/A 14,323 10.7 %
BBB/Baa 19,359 14.4 %
BB/Ba 1,832 1.4 %
B/B 9,551 7.1 %
Unrated 2,030 1.5 %
Total fixed income investments $ 134,381 100.0 %
As of June 30, 2021, the securities lending collateral of $48.6 million was not rated.

Custodial Credit Risk: The City, on behalf of PFRS, does not have any funds or deposits that are not covered by depository insurance, which are either uncollateralized, collateralized with securities held by the pledging financial institution, or collateralized with securities held by the pledging financial institution’s trust department or agent, but not in the City’s name. PFRS does not have any investments that are not registered in the name of PFRS and are either held by the counterparty or the counterparty’s trust department or agent, but not in PFRS’ name.

Concentrations of Credit Risk: As of June 30, 2021 , PFRS' investments in the Northern Trust Russell 1000 Growth Index Fund represented 24.2 percent of its fiduciary net position.

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
57 Foreign Currency Risk: Foreign currency risk is the risk that changes in foreign exchange rates will adversely affect the fair values of an investment or deposit. Currency hedging is allowed under the PFRS investment policy for defensive purposes only. The investment policy limits currency hedging to a maximum of 25 percent of the portfolio value.

The following summarizes PFRS’ investments denominated in foreign currencies as of June 30, 2021 (in thousands):

Foreign Currency
Australian Dollar $ 1,456
Brazilian Real 902
British Pound 3,407
Canadian Dollar 3,395
Danish Krone 1,387
Euro 8,778
Hong Kong Dollar 3,665
Indonesian Rupiah 221
Japanese Yen 5,889
Mexican Peso 109
Singapore Dollar 839
South African Rand 575
South Korean Won 212
Swedish Krona 1488
Swiss Franc 2,345
Turkish Lira 525
Total foreign currency $ 35,193
Securities Lending Transactions: PFRS’s investment policy authorizes participation in securities lending transactions, which are short-term collateralized loans of PFRS’s securities to brokers-dealers with a simultaneous agreement allowing PFRS to invest and receive earnings on the collateral received. All securities loans can be terminated on demand by either PFRS or the borrower, although the average term of such loans is one week.

The administrator of the PFRS’s securities lending activities is responsible for maintaining an adequate level of collateral in an amount equal to at least 102 percent of the fair value of loaned U.S. government securities, common stock and other equity securities, bonds, debentures, corporate debt securities, notes, and mortgages or other obligations held in U.S. Dollar. The collateral is 105% for any securities held in currencies other than the U.S. Dollar. Collateral received may include cash, letters of credit, or securities. The term to maturity of the loaned securities is generally not matched with the term to maturity of the investment of said collateral. If securities collateral is received, PFRS cannot pledge or sell the collateral securities unless the borrower defaults.

As of June 30, 2021 , management believes that PFRS has minimized its credit risk exposure to borrowers because the amounts held by PFRS as collateral exceeded the securities loaned by PFRS.

PFRS’ contract with the administrator requires it to indemnify PFRS if the borrowers fail to return the securities (and if the collateral is inadequate to replace the securities borrowed) or fail to pay PFRS for income distributions by the securities’ issuers while the securities are on loan.

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
58 The following table summarizes investments in securities lending transactions and collateral received as of June 30, 2021 (in thousands):

Securities Lending
Fair Value of Loaned Securities
For Cash
Collateral
For Non-Cash
Collateral Total
Securities on loan:

U.S. Government and Agencies $ 9,622 $ 5,096 $ 14,718
U.S. Corporate Bonds 8,853 — 8,853
U.S. Equities 29,098 97 29,195
Non-U.S. Equities 182 514 696
Total Securities on loan $ 47,755 $ 5,707 $ 53,462
Collateral Received $ 48,954 $ 5,841 $ 54,795
Derivative Instruments: PFRS reports its derivative instruments under the provisions of GASB Statement No. 53, Accounting and Financial Reporting for Derivative Instruments . Pursuant to the requirements of this statement, PFRS has provided a summary of derivative instrument activities during the reporting periods presented and the related risks.

As of June 30, 2021 , the derivative instruments held by PFRS are considered investments and not hedges for accounting purposes. All investment derivatives are reported as investments at fair value in the statement of fiduciary net position. The gains and losses arising from this activity are recognized as incurred in the statement of changes in fiduciary net position. All investment derivatives discussed below are included within the investment risk schedules, which precede this subsection. Investment derivative instruments are disclosed separately to provide a comprehensive and distinct view of this activity and its impact on the overall investment portfolio.

The fair value of the exchange traded derivative instruments, such as futures, options, rights, and warrants are based on quoted market prices. The fair values of forward foreign currency contracts are determined using a pricing service, which uses published foreign exchange rates as the primary source. The fair values of swaps are determined by PFRS’s investment managers based on quoted market prices of the underlying investment instruments.

The table below presents the notional amounts, the fair values, and the related net appreciation (depreciation) in the fair value of derivative instruments that were outstanding at June 30, 2021 (in thousands):

Derivative Type/Contract
Notional
Amount
Fair
Value
Net
Appreciation
(Depreciation)
in Fair Value
Forwards
Foreign Currency Exchange Contracts $ — $ (8) $ —
Options
Equity Contracts — (351) (58)
Swaps
Credit Contracts 1,990 51 8
Total $ 1,990 $ (308) $ (50)

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
59 Counterparty Credit Risk – PFRS is not exposed to credit risk on non-exchange traded derivative instruments that are in liability positions. As of June 30, 2021, PFRS held forward currency contracts in liability positions of $7,612.

Custodial Credit Risk - The PFRS's counterparties to these contracts held credit ratings of A or better, as assigned by one or more of the major credit rating organizations (S&P, Moody's and/or Fitch). At June 30, 2021, all of PFRS’s investments in derivative instruments are held in PFRS’s name and are not exposed to custodial credit risk.

Interest Rate Risk - The table below describes the maturity periods of the derivative instruments exposed to interest rate risk at June 30, 2021 (in thousands):

Maturities
Derivative Type/Contract
Fair
Value
Less than
1 Year 1-5 years
Forwards
Forward Foreign Currency Exchange Contracts $ (8) $ (8) $ — Options
Equity Contracts (351) (351) —
Swaps
Credit Contracts 51 — 51
Total $ (308) $ (359) $ 51
Foreign Currency Risk - At June 30, 2021, PFRS is exposed to foreign currency risk on $7,612 of its investments in forwards denominated in the Mexican peso.

Contingent Features - At June 30, 2021, PFRS held no positions in derivatives containing contingent features.

Oakland Redevelopment Successor Agency
The ORSA’s cash and investments consist of the following at June 30, 2021 (in thousands):

Cash and Investments Amount
Unrestricted cash and investments
Demand deposits $ 10,272
Investments 49,998
Total unrestricted cash and investments 60,270
Restricted investments 8,247
Total cash and investments $ 68,517
Investments: The ORSA follows the City’s Investment Policy, which is governed by provisions of the California Government Code 53600 and the City’s Municipal Code. The ORSA also has investments subject to provisions of the bond indentures of the Former Agency’s and ORSA's various bond issues. According to the Investment Policy and bond indentures, the ORSA is permitted to invest in the State of California Local Agency Investment Fund (LAIF), obligations of the U.S.

Treasury or U.S. government agencies, time deposits, money market mutual funds invested in U.S. government securities, along with various other permitted investments. Under the provisions of the bond indentures, certain accounts with trustees were established for repayment of debt, amounts required to be held in reserve, and temporary investments for unexpended bond proceeds.

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
60 The ORSA categorizes its fair value measurements within the fair value hierarchy established by GAAP. At June 30, 2021, the ORSA does not have any of its investments using Level 1 and 3 inputs.

The ORSA has the following recurring fair value measurements as of June 30, 2021 (in thousands):

Significant
other
observable
inputs
(Level 2)
Investments
measured at
the net asset
value
(NAV)
Unrestricted investments:

U.S. Government Agency Securities (Discount) $ 43,998 $ — Money Market Mutual Funds — 6,000
Restricted investments:

Money Market Mutual Funds — 8,247
Total $ 43,998 $ 14,247
Custodial Credit Risk: Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, ORSA will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, ORSA will not be able to recover the value of the investment or collateral securities that are in the possession of another party.

The California Government Code requires that a financial institution secure its deposits made by State or local governmental units by pledging securities in an undivided collateral pool held by the depository regulated under State law (unless so waived by the governmental unit). The fair value of the pledged governmental securities and/or first trust deed mortgage notes held in the collateral pool must be at least 110% and 150% of ORSA’s deposits, respectively. The collateral is held by the pledging financial institution’s trust department and is held in the ORSA’s name.

As of June 30, 2021, the carrying amount of the ORSA’s deposits was $10.3 million. The deposits are insured by the Federal Deposit Insurance Corporation (FDIC) insurance coverage limit of $0.2 million, and the remaining bank balance of $10.1 million is collateralized with securities held by the pledging financial institutions as required by Section 53652 of the California Government Code.

ORSA invests in individual investments. Individual investments are evidenced by specific identifiable securities instruments, or by an electronic entry registering the owner in the records of the institution issuing the security, called the book entry system. In order to increase security, the ORSA employs the trust department of a bank or trustee as the custodian of certain ORSA investments, regardless of their form.

Credit Risk: Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This risk is measured by the assignment of a rating by the nationally recognized statistical rating organizations. The ORSA’s Investment Policy has mitigated credit risk by limiting investments to the safest types of securities, by prequalifying financial institutions, by diversifying the portfolio and by establishing monitoring procedures.

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
61 Interest Rate Risk: Interest rate risk is the risk that changes in market rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment the greater the sensitivity of its fair value to changes in market rates. ORSA Investment Policy has mitigated interest rate risk by establishing policies over liquidity.

As of June 30, 2021 , ORSA had the following investments, credit risk ratings, and maturities (in thousands):

Maturities
Type of Investment
Current
Yield
(%)
Credit
Ratings
(S&P)
Less than
1 Year
Unrestricted investments:

U.S. Government Agency Securities (Discount) 0.03 - 0.04 AA $ 43,998 Money Market Mutual Funds 0.01 AAA 6,000
Total unrestricted investments $ 49,998
Restricted investments:

Money Market Mutual Funds 0.01 - 0.03 AAA $ 8,247
Total restricted investments $ 8,247
Concentration of Credit Risk: Concentration of credit risk is the risk that the failure of any one issuer would place an undue financial burden on ORSA. Investments issued by or explicitly guaranteed by the U.S. government and investments in mutual funds, external investment pools, and other pooled investments are exempt from this requirement, as they are normally diversified themselves.

The following table shows ORSA’s investments in one issuer that exceed 5% of ORSA’s investment portfolios at June 30, 2021 (in thousands):

Type of Investment/Issuer Amount
Share of ORSA's
Unrestricted
Portfolio
U.S. Government Agency Securities
Federal Home Loan Bank $ 35,998 72.0%
Federal Home Loan Mortgage Corporation Discount 8,000 16.0% Component Unit – Port of Oakland
The Port’s cash, cash equivalents, and investments consisted of the following at June 30, 2021 (in thousands):

City investment pool $ 523,951
Government Securities Money Market Mutual Funds 46,619 Cash 7
Total cash and investments $ 570,577

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
62 Investments: Under the City Charter, all cash receipts from the operations of the Port are deposited in the City Investment Pool. These funds are managed and invested by the City, pursuant to the City’s Investment Policy, that the City administers and reviews annually. For this reason, the Port does not maintain its own investment policy and relies on the City Investment Policy to mitigate the risks described below.

Senior Lien Bonds and Intermediate Lien reserves are on deposit with the Senior Lien Bonds and Intermediate Lien Bonds trustee, respectively. The investment of funds held by the Senior Lien Bonds and Intermediate Lien Bonds trustee are governed by the Senior Trust Indenture and Intermediate Trust Indenture, respectively, and are invested in Government Securities Money Market Mutual Funds.

At June 30, 2021, the Port had the following investments (in thousands):

Maturity
Fair Value
Fair Value
Hierarchy
Credit
Ratings per
Moody's
Less than 1
Year
Cash $ 7 Exempt Not Rated $ 7
Government Securities Money Market Mutual
Funds 46,619 Exempt Not Rated 46,619
City investment pool 523,951 Exempt Not Rated 523,951 Total investments $ 570,577 $ 570,577
Investments exempt from fair value treatment consist of cash, Government Securities Money Market Mutual Funds, which are valued at amortized cost, and the City Investment Pool, whose fair value disclosure is presented previously in this note.

Investments Authorized by Debt Agreements: The following are the types of investments generally allowed under the Senior Trust Indenture and the Intermediate Trust Indenture (Intermediate Trust Indenture, together with the Senior Trust Indenture, are referred to as the Trust Indentures): U.S.

Government Securities, U.S. Agency Obligations, obligations of any State in the U.S., prime commercial paper, FDIC insured deposits, certificates of deposit, banker’s acceptances, money market mutual funds, long or medium-term corporate debt, repurchase agreements, state-sponsored investment pools, investment contracts, and forward agreements.

Interest Rate Risk: This risk represents the possibility that an interest rate change could adversely affect an investment's fair value. Pursuant to the City Charter, all cash receipts from Port operations are deposited in the City Investment Pool. For this reason, the Port does not have a formal policy to manage interest risk. In order to manage interest rate risk:
• Proceeds from bonds are invested in permitted investments, as stated in the Trust Indentures. • The deposits held by the City Treasury are invested pursuant to the City’s Investment Policy, which limits the terms of its investments and establishes minimum allowable credit ratings, as well as other controls. Also, Section 53601 of the State of California Government Code limits the maximum maturity of any investment to be no longer than 5 years unless authority for such investment is expressly granted in advance by the City Council or authorized by bond covenants.

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
63 Credit Risk: This risk represents the possibility that the issuer/counterparty to an investment will be unable to fulfill its obligation. Pursuant to the City Charter, all cash receipts from Port operations are deposited in the City Investment Pool. For this reason, the Port does not have a formal policy to manage credit risk.

In order to manage credit risk:
• Provisions of the Trust Indentures prescribe restrictions on the types of permitted investments of the monies held by the trustee in the funds and accounts created under the Trust Indentures, including agreements or financial institutions that must meet certain ratings, such as certain investments that must be rated in either of the two highest ratings by S&P and Moody’s.
• The deposits with the City Treasury are invested in short-term debt that is rated at least A-1 by S&P, P-1 by Moody’s or F-1 by Fitch Ratings. Long-term debt shall be rated at least A by S&P, A2 by Moody’s, and A by Fitch Ratings.

Custodial Credit Risk: Custodial credit risk is the risk that, in the event of the failure of a depository financial institution or a counterparty to a transaction, the Port will not be able to recover the value of its investment or collateral securities that are in possession of another party.

To protect against custodial credit risk:
• All securities owned by the Port under the terms of the Trust Indentures are held in the name of the Port for safekeeping by a third party bank trust department, acting as an agent for the Port. The Port had investments held by a third party bank trust department in the amount of $46.6 million at June 30, 2021.
• All securities the Port has invested with the City are held in the name of the City for safekeeping by a third party bank trust department, acting as an agent for the City under the terms of the custody agreements. The Port had $524.0 million invested in the City Investment Pool on June 30, 2021.

Concentration of Credit Risk : The Trust Indentures place no limit on the amount the Port may invest in any one issuer.

Port revenues are deposited in the City Treasury. These and all City funds are pooled and invested in the City Investment Pool.

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
64 B. INTERFUND TRANSACTIONS
“Due to” and “due from” balances have primarily been recorded when funds overdraw their share of pooled cash and interfund loans. The amounts due from the Oakland Redevelopment Successor Agency are related to advances and interfund loans made by the City for projects, loans, and services.

The receivable amounts of ORSA relate to project advances made by ORSA for the City. The internal service funds’ borrowing will be repaid over a reasonable period of time as described in Note III, part D.

Primary Government

1. Due from/Due to other funds
The amounts payable to the general fund to cover the other City funds’ overdraft position as of June 30, 2021, is as follows (dollars in thousands):

Payable Fund Amount
Other Governmental Funds $ 1,414
Parks and Recreation Enterprise Fund 1,205
Internal Service Funds 4,899
Custodial Fund (Fiduciary Fund) 113
Total due to the General Fund $ 7,631

2. Interfund Transfers
The following schedule summarizes the City’s transfer activities for the year ended June 30, 2021 (dollars in thousands):

Transfer Out Transfer In Amount
General Fund Other Governmental Funds $ 77,031 (1)
Other Special Revenue Fund 20,660 (2), (3)
Federal/State Grant Fund 5,844 (2)
Municipal Capital Improvement Fund 180 (4)
Other Governmental Funds-Special Revenue Funds General Fund 941 (5) Other Governmental Funds-Debt Service Funds 1,373 (1)
Other Special Revenue Fund General Fund 1,197 (5)
Federal/State Grant Fund 15 (2)
Other Governmental Funds 327 (1)
Sewer Service Fund General Fund 1,871 (5)
Internal Service Funds General Fund 6,173 (5)
Total $ 115,612

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
65 Significant transfers for the year ended June 30, 2021 include the following:
(1) Transfers of debt service payments.
(2) Transfers to provide funds to cover the Central Service Overhead cost for certain grant funds.
(3) Transfers for the Kids’ First Children’s Program and one-time subsidies for Measure C and Measure Z programs.
(4) Repayment of capital projects' negative fund balance. (5) Transfers for the City’s claims and liability payments.

3. ORSA Reimbursements to the City
In FY 2020-21, ORSA incurred a total of $3.2 million expense in general administrative and project- related overhead. Of this amount, $1.7 million reimbursed the City for general and administrative overhead and $1.5 million paid for project-related overhead and operational costs for support services provided by designated City employees.

4. Due to the City
At June 30, 2021, ORSA has a payable to the City in the amount of $18.4 million, which included the Former Agency’s Low and Moderate Housing Fund loan of $1.4 million to the Central City East Project Funds where the Low and Moderate Housing Funds Assets were transferred to the Housing Successor, a loan of $2.7 million from the Capital Projects Fund to the West Oakland Project for public improvements, a payable of $0.6 million to the City for support services, and a payable of $13.7 million to the City for the transfer of excess tax allocation bond proceeds.

5. ORSA Transfers of Excess Bond Proceeds
In FY 2020-21, ORSA contributed $13.7 million of excess bond proceeds to the City's Low and Moderate Income Housing Asset Fund and Municipal Capital Improvement Fund, which is recorded as other revenues in the statement of revenues, expenditures, and changes in fund balances. This expenditure of excess bond proceeds to the City was approved by the State Department of Finance pursuant to Health and Safety Code Section 34179(h) and fulfills the bond expenditure agreement with the City.

Component Unit - Port of Oakland (Port)
The City has entered into agreements with the Port for various services such as aircraft rescue and firefighting, Special Services, General Services, and Lake Merritt Trust Services. The City provides these services to the Port.

Special Services include designated police services, personnel, City clerk, legislative programming, and treasury services. General Services includes fire, rescue, police, street maintenance, treasury, and similar services. Lake Merritt Trust Services includes items such as recreation services, grounds maintenance, security, and lighting.

Payments to the City for these services are made upon presentation of supporting documentation and authorizations from the Board of Commissioners.

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
66 1. Special Services and Aircraft Rescue & Fire Fighters (ARFF) Payments for Special Services and ARFF are treated as a cost of Port operations pursuant to City Charter Section 717(3) Clause Third and have priority over certain other expenditures of Port revenues. Special Services and ARFF from the City totaled $7.9 million and are included in operating expenses. At June 30, 2021 , $9.3 million was accrued as current liability by the Port and as a receivable by the City.

2. General Services and Lake Merritt Trust Services
Payments for General Services provided by the City are payable only to the extent the Port determines annually that surplus monies are available under the Charter for such purposes. As of June 30, 2021 , the Port accrued approximately $1.2 million of payments for General Services.

Additionally, the Port accrued approximately $1.5 million to reimburse the City for Lake Merritt Trust Services in fiscal year 2021. Subject to availability of surplus monies, the Port expects that it will continue to reimburse the City annually for General Services and Lake Merritt Trust Services.

C. NOTES AND LOANS RECEIVABLE, NET OF ALLOWANCE
Primary Government
The composition of the City’s notes and loans receivable for governmental activities, net of the allowance for uncollectible accounts, as of June 30, 2021, is as follows (in thousands):

Type of Loan
General
Fund
Federal/
State
Grant
Fund LMIHF1
Municipal
Capital
Improve-
ment Fund
Other
Special
Revenue
Fund Total
Pass-through loans $ — $ 1,300 $ — $ — $ — $ 1,300
HUD loans — 119,380 392,951 4,057 — 516,388
Economic development loans and other 12,068 61,102 — 69,599 1,425 144,194 Less: allowance for uncollectible accounts (653) (49,457) (135,472) (2,802) (615) (188,999) Total notes and loans receivables, net $ 11,415 $ 132,325 $ 257,479 $ 70,854 $ 810 $ 472,883 1Low and Moderate Income Housing Asset Fund
Management has determined that certain loans may be forgiven or renegotiated and extended long into the future if certain terms and conditions of these loans are met. As of June 30, 2021 , it was determined that $189.0 million of the loan portfolio is not expected to be ultimately collected.

Prior to the effective date of the Redevelopment Dissolution Law, California Community Redevelopment Law required that at least 20 percent of the incremental tax revenues generated from certain redevelopment project areas be used to increase, improve, and preserve the affordable housing stock for families and individuals with very low, low, and moderate incomes. In response to this former requirement, the City established its 20 percent Housing Program and an additional 5 percent of the former tax increment to offer financial assistance to qualified developers, families, and individuals by providing loans at “below market” rates. Upon dissolution of the Former Agency, the City assumed the housing activity function of the Former Agency. All loans receivable relating to the Low and Moderate Income Housing Program have been transferred from the Former Agency to the LMIHF, which was established as of February 1, 2012 pursuant to City Council Resolution No.

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
67 83680 C.M.S.. As of June 30, 2021 , loans receivable relating to the LMIHF program totaled approximately $257.5 million, net of allowance for uncollectible accounts.

Oakland Redevelopment Successor Agency (ORSA)
ORSA received loans from the Former Agency upon its dissolution. These loans bear no interest and mature on various dates up until May 2069. A loan is deemed uncollectible when the property securing the loan is foreclosed by senior lien holder and there is insufficient equity to pay the loan.

Composition of loans receivable as of June 30, 2021 is as follows (in thousands):

Type of Loan Amount
Housing developments project $ 1,462
Economic development 6,064
Gross loans receivable 7,526
Less: allowance for uncollectible (3,918)
Total loans receivables, net $ 3,608
On December 1, 2020, ORSA approved the transfer of the Fox Theater property to the City, consistent with its Long Range Property Management Plan. The transfer required ORSA's forgiveness of a $46.4 million loan to Fox Oakland Theater, Inc., which had been provided by the former Oakland Redevelopment Agency for renovation of the property. The loan had been previously deemed uncollectible by ORSA and its termination did not impact the totals presented above.

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
68 D. CAPITAL ASSETS AND LEASES
Primary Government

1. Summary Schedule
The following is a summary of governmental activities capital assets activity for the year ended June 30, 2021 (in thousands):

Balance
June 30,
2020 Additions
Deletions/
Adjustments
Transfers of
Completed
Construction
Balance
June 30,
2021
Governmental activities:

Capital assets, not being depreciated:

Land $ 196,103 $ 15,989 $ — $ 1,257 $ 213,349
Intangibles (easements) 2,607 — — — 2,607
Museum collections 989 129 — 884 2,002
Construction in progress 73,241 37,536 — (9,875) 100,902 Total capital assets, not being
depreciated 272,940 53,654 — (7,734) 318,860
Capital assets, being depreciated:

Facilities and improvements 880,384 6,372 — 594 887,350 Furniture, machinery, and
equipment 361,760 13,154 15,988 — 358,926
Infrastructure 1,145,039 31,291 10 7,140 1,183,460 Total capital assets, being
depreciated 2,387,183 50,817 15,998 7,734 2,429,736 Less accumulated depreciation:

Facilities and improvements 521,435 25,060 — — 546,495 Furniture, machinery, and
equipment 253,593 21,887 15,981 — 259,499
Infrastructure 461,850 40,151 — — 502,001
Total accumulated
depreciation 1,236,878 87,098 15,981 — 1,307,995
Total capital assets, being
depreciated, net 1,150,305 (36,281) 17 7,734 1,121,741 Governmental Activities - capital
assets, net $ 1,423,245 $ 17,373 $ 17 $ — $ 1,440,601

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
69 The following is a summary of business-type activities capital assets activity for the year ended June 30, 2021 (in thousands):

Balance
June 30,
2020 Additions Deletions
Transfers of
Completed
Construction
Balance
June 30,
2021
Business-Type Activities:

Sewer Service Fund:

Capital assets, not being depreciated:

Land $ 4 $ — $ — $ — $ 4
Construction in progress 10,867 6,094 — — 16,961
Total capital assets, not being depreciated 10,871 6,094 — — 16,965 Capital assets, being depreciated:

Facilities and improvements 490 — — — 490
Furniture, machinery and equipment 10,396 1,535 323 — 11,608 Sewer and storm drains 372,142 — — — 372,142
Street work 48 — — — 48
Total capital assets, being depreciated 383,076 1,535 323 — 384,288 Less accumulated depreciation:

Facilities and improvements 336 7 — — 343
Furniture, machinery, and equipment 7,931 794 323 — 8,402 Sewer and storm drains 132,313 6,600 — — 138,913
Street work 5 2 — — 7
Total accumulated depreciation 140,585 7,403 323 — 147,665 Total capital assets, being depreciated, net 242,491 (5,868) — — 236,623 Sewer Service Fund, capital assets, net $ 253,362 $ 226 $ — $ — $ 253,588 Parks and Recreation Fund:

Capital assets, not being depreciated:

Land $ 361 $ — $ — $ — $ 361
Construction in progress 71 2 — — 73
Total capital assets, not being depreciated 432 2 — — 434 Capital assets, being depreciated:

Facilities and improvements 5,102 — — — 5,102
Furniture, machinery and equipment 564 — 19 — 545
Infrastructure 85 — — — 85
Total capital assets, being depreciated 5,751 — 19 — 5,732 Less accumulated depreciation
Facilities and improvements 3,763 153 — — 3,916
Furniture, machinery and equipment 520 20 19 — 521 Infrastructure 72 6 — — 78
Total accumulated depreciation 4,355 179 19 — 4,515 Total capital assets, being depreciated, net 1,396 (179) — — 1,217 Parks and Recreation Fund, capital assets,
net $ 1,828 $ (177) $ — $ — $ 1,651
Business-Type Activities - capital assets, net $ 255,190 $ 49 $ — $ — $ 255,239

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
70 2. Depreciation
Depreciation expense was charged to various governmental and business-type activities of the City for the year ended June 30, 2021 is as follows (in thousands):

Governmental Activities:

General Government $ 9,965
Public Safety 2,574
Community and Human Services 6,489
Community and Economic Development 15,790
Public Works and Transportation 40,906
Capital assets held by internal service funds that are charged to various functions based on their usage of the assets 11,374 Total $ 87,098
Business-Type Activities:

Sewer $ 7,403
Parks and Recreation 179
Total $ 7,582

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
71 Component Unit – Port of Oakland

1. Summary Schedule
A summary of changes in capital assets for the year ended June 30, 2021, is as follows (in thousands):

Balance
June 30,
2020 Additions Deletions Transfers
Balance
June 30,
2021
Capital assets, not being depreciated
Land $ 524,187 $ — $ — $ — $ 524,187
Intangibles (noise easements and air rights) 25,853 — — — 25,853 Construction in progress 52,654 48,924 (124) (32,201) 69,253 Total capital assets, not being depreciated 602,694 48,924 (124) (32,201) 619,293 Capital assets, being depreciated:

Building and improvements 991,300 — — 1,094 992,394 Container cranes 159,197 — — — 159,197
Infrastructure 2,147,084 — — 27,295 2,174,379
Intangibles (software) 13,844 — — — 13,844
Other equipment 125,568 1,096 — 3,812 130,476
Total capital assets, being depreciated 3,436,993 1,096 — 32,201 3,470,290 Less accumulated depreciation:

Building and improvements 663,018 20,912 — — 683,930 Container cranes 120,534 5,881 — — 126,415
Infrastructure 1,151,111 79,262 — — 1,230,373
Intangibles (software) 12,444 843 — — 13,287
Other equipment 83,290 5,957 — — 89,247
Total accumulated depreciation 2,030,397 112,855 — — 2,143,252 Total capital assets, being depreciated, net 1,406,596 111,759 — 32,201 1,327,038 Port-capital assets, net $ 2,009,290 $ (62,835) $ (124) $ — $ 1,946,331 For the year ended June 30, 2021 , the Port recognized a $124 thousand loss on abandoned projects related to construction in progress.

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
72 2. Capital Assets Under Operating Leases as Lessor The capital assets leased to others at June 30, 2021, consist of the following (in thousands):

Land........................................................................................................................................ $ 296,931 Container cranes ...................................................................................................................... 159,197 Buildings and improvements ................................................................................................... 190,912 Infrastructure ............................................................................................................................ 1,007,095 1,654,135
Less accumulated depreciation ................................................................................................ (903,428) Net capital assets, on lease ..................................................................................................... $ 750,707

3. Operating Leases as Lessor
A major portion of the Port’s capital assets are leased to others. Leased assets include maritime facilities, aviation facilities, office and commercial space, and land. The majority of the Port’s leases are classified as operating leases. The leases generally provide for minimum rentals with percentage rent contingent on business sales or activity. Certain maritime facilities are leased under agreements that provide the tenants with preferential, but nonexclusive, use of the facilities.

A summary of revenues from long-term leases for the year ended June 30, 2021 , is as follows (in thousands):

Minimum non-cancelable rentals, including preferential assignments ................................... $ 158,253 Contingent rentals in excess of minimums .............................................................................. 41,320 Total ........................................................................................................................................ $ 199,573 Outer Harbor Terminal Closure
On February 1, 2016, Outer Harbor Terminal, LLC (formerly Ports America Outer Harbor Terminal, LLC) (OHT) filed for Chapter 11 bankruptcy protection. At that time OHT held a 50-year lease with the Port to operate at Berths 20-24, a month to month lease to operate Berth 25/26 (including crane maintenance), and a separate lease to operate and maintain cranes at Berths 20-24. On February 20, 2016, the Port reached a settlement agreement with OHT by which the Port would let OHT out of its lease obligations. This agreement was subsequently approved by the bankruptcy court. This event returned property to the Port that was in need of significant repairs and deferred maintenance. As of June 30, 2021, the Port decided to cease immediate maintenance and repairs at the Outer Harbor Terminal due to priorities of other projects and limited personnel resources. The land will remain leased on a short-term basis for auxiliary operational needs until long-term development plans are established. The remaining balance of $16.6 million was recorded as a gain on lease termination.

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
73 Minimum future rental revenues for years ending June 30 under non-cancelable operating leases having an initial term in excess of one year are as follows (in thousands):

Year
2022 $ 157,129
2023 156,494
2024 153,512
2025 153,259
2026 155,175
2027-2031 633,813
2032-2036 221,185
2037-2041 102,484
2042-2046 47,624
2047-2051 51,098
2052-2056 57,313
Thereafter 352,340
Total $ 2,241,426
The Port turned over the operation of its Marina to a private company through a long-term financing lease and operating agreement on May 1, 2004. Minimum future lease payments to be received, which is a component of unearned revenue, for years ending June 30 are as follows (in thousands):

Year
2022 $ 493
2023 508
2024 524
2025 539
2026 555
2027-2031 3,037
2032-2036 3,521
2037-2041 4,082
2042-2046 4,732
2047-2051 5,486
2052-2056 3,487
Total $ 26,964

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
74 E. PROPERTY HELD FOR RESALE

Primary Government
At June 30, 2021, the City has a total of $172.1 million of property held for resale. On December 24, 2020, a quitclaim deed was recorded to convey the title for the Oakland Raiders former training facility jointly to the City and Alameda County in equal shares. The City has declared the property surplus and has recorded its share of the property in the general fund at a value of $18.0 million.

Oakland Redevelopment Successor Agency (ORSA)
As of June 30, 2021 , ORSA has a total $2.8 million for properties recorded at the lower of cost or estimated conveyance value. On May 29, 2014, pursuant to HSC Section 34191.4, the California Department of Finance approved the ORSA’s Long-Range Property Management Plan addressing the disposition and use of Former Agency properties and authorizing the disposition of properties pursuant to the plan.

F. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Primary Government
Accounts payable and accrued liabilities at June 30, 2021, are as follows (in thousands):

Accounts
Payable
Accrued Payroll/
Employee
Benefits Total
Governmental Activities:

Governmental Funds:

General Fund $ 140,133 $ 135,426 $ 275,559
Federal/State Grant Fund 22,918 1,579 24,497
Low and Moderate Income Housing Asset Fund 346 — 346 Municipal Capital Improvement Fund 10,589 — 10,589
Other Special Revenue Fund 12,724 3 12,727
Other Governmental Funds 3,581 — 3,581
Total governmental funds 190,291 137,008 327,299
Internal service funds 4,391 — 4,391
Total governmental activities $ 194,682 $ 137,008 $ 331,690 Business-type Activities:

Sewer Service Fund $ 3,063 $ — $ 3,063
Accounts payable and accrued liabilities for the pension trust fund at June 30, 2021, are as follows (in thousands):

Pension Trust Fund
Accounts payable $ 1
Member benefits payable 4,295
Investments payable 423
Investment management fees payable 361
Total pension trust fund $ 5,080

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
75 G. LONG-TERM AND OTHER OBLIGATIONS
Primary Government

1. Summary Schedule of Long-Term Debt
T h e f o l l o w i n g i s a s u m m a r y o f l o n g ‑ t e r m o b l i g a t i o n s o f t h e C i t y a s o f June 30, 2021 (in thousands):

Governmental Activities
Type of Obligation
Final Maturity
Year
Remaining
Interest Rates Amount
Bonds payable:

General obligation bonds 2050 1.55 - 5.00% $ 450,075
Lease revenue bonds 2027 5.00% 43,165
Pension obligation bonds 2027 3.80 - 6.89% 198,564
Accreted interest on appreciation bonds 2023 n/a 69,703 City guaranteed special assessment district bonds 2040 3.00 - 3.63% 2,590 Unamortized premiums and discounts, net 24,657
Total bonds payable $ 788,754
Capital leases:

Capital leases 2030 1.48 - 5.30% 28,847
Total capital leases $ 28,847
Business-type Activities
Type of Obligation
Final Maturity
Year
Remaining
Interest Rates Amount
Bonds payable:

Sewer revenue bonds 2029 3.00 - 5.00% $ 23,616
Unamortized bond premium 2,743
Total bonds payable $ 26,359

2. Interest Rate Swap
Oakland Joint Powers Financing Authority Lease Revenue Bonds, 1998 Series A1/A2 Objective of the Interest Rate Swap: On January 9, 1997, the City entered into a forward-starting synthetic fixed rate swap agreement (Swap) with Goldman Sachs Mitsui Marine Derivatives Products, U.S., L.P. (Counterparty) in connection with the $187.5 million Oakland Joint Powers Financing Authority (Authority) Lease Revenue Bonds, 1998 Series A1/A2 (1998 Lease Revenue Bonds). Under the swap agreement, which effectively changed the City’s variable interest rate on the bonds to a synthetic fixed rate, the City would pay the Counterparty a fixed rate of 5.6775% through the end of the swap agreement in 2021 and receive a variable rate based on the Bond Market Association index. The City received an upfront payment from the Counterparty of $15.0 million for entering into the Swap.

On March 21, 2003, the City amended the swap agreement to change the index on which the Swap is based from the Bond Market Association index to a rate equal to 65% of the 1-month London Interbank Offered Rate (LIBOR). This amendment resulted in an additional upfront payment from the Counterparty to the City of $6.0 million.

On June 21, 2005, all of the outstanding 1998 Lease Revenue Bonds were defeased by the Oakland Joint Powers Financing Authority Refunding Revenue Bonds, 2005 Series A-1, A-2 and B (Series

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
76 2005 A & B Bonds). $143.0 million was deposited with the trustee to defease the 1998 Lease Revenue Bonds. However, the Swap associated with the 1998 Lease Revenue Bonds still remains in effect. This is now a stand-alone swap with no association to any bond. The amortization schedule is as follows as of June 30, 2021:

Calculation
period
(July 31)
Notional
Amount
Fixed Rate To
Counterparty
65% of
LIBOR1 Net Rate
2022 $ 6,400,000 5.6775% 0.0653% 5.6122%
__________
1 The 1-month LIBOR rate is 0.10050 percent as of June 30, 2021. Future rates are projections as the LIBOR rate fluctuates daily.

Terms: The swap agreement terminates on July 31, 2021, and has a notional amount as of June 30, 2021 of $6.4 million. Under the Swap, the City pays the Counterparty a fixed payment of 5.6775% and receives a variable payment computed at 65% of LIBOR rate (total rate not to exceed 12%). The City’s payments to the Counterparty under the Swap agreement are insured by the third party bond insurer.

Fair Value: The fair value takes into consideration the prevailing interest rate environment and the specific terms and conditions of the Swap. The fair value was estimated using the zero-coupon method. This method calculates the future net settlement payments required by the Swap, assuming that the current forward rates implied by the yield curve correctly anticipate future spot interest rates.

These payments are then discounted using the spot rates implied by the current yield curve for hypothetical zero-coupon bonds due on the date of each future net settlement on the Swap. The fair value hierarchy of the interest rate swap is Level 2. Because interest rates have declined since the execution of the Swap, the Swap had a negative fair value of $0.2 million as of June 30, 2021.

Credit and Termination Risk : Following the termination of the Swap on July 31, 2021, the City no longer bears credit or termination risk related to this transaction.

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
77 3. Summary of Changes in Long-term Obligations
Primary Government
The changes in long-term obligations for the year ended June 30, 2021, are as follows (in thousands):

Balance at
July 1,
2020 Additions Reductions
Balance at
June 30,
2021
Amounts due
within one
year
Governmental activities:

Bonds payable:

General obligation bonds (A) $ 472,170 $ — $ 22,095 $ 450,075 $ 24,850 Lease revenue bonds (B) 49,180 — 6,015 43,165 6,330 Pension obligation bonds (C) 222,556 — 23,992 198,564 23,758 Accreted interest on
appreciation bonds (B) and (C) 96,514 7,967 34,778 69,703 36,728 City guaranteed special
assessment district bonds (C) 2,940 — 350 2,590 365 Unamortized premium and
discounts, net 26,466 — 1,809 24,657 1,809
Total bonds payable: 869,826 7,967 89,039 788,754 93,840 Loans and capital leases payable:

Loans payable (B) and (D) 4,250 — 4,250 — —
Capital leases (B) and (D) 43,743 — 14,901 28,842 10,602 Total loans payable and capital
leases payable 47,993 — 19,151 28,842 10,602
Other long-term liabilities:

Accrued vacation and sick leave
(E) 57,728 67,972 67,585 58,115 46,004
Pledge obligation for
Coliseum Authority debt (B) 27,721 — 5,018 22,703 5,268 Estimated environmental cost (B) 561 116 99 578 248 Self-insurance liability -
workers' compensation (B) 71,874 25,908 24,158 73,624 14,507 Self-insurance liability -
general liability (B) 62,772 40,577 31,043 72,306 22,767 Interest rate swap agreement 693 — 512 181 —
Total other long-term liabilities 221,349 134,573 128,415 227,507 88,794 Total governmental activities $ 1,139,168 $ 142,540 $ 236,605 $ 1,045,103 $ 193,236 Business-type activities:

Sewer fund - bonds payable $ 25,986 $ — $ 2,370 $ 23,616 $ 2,490 Unamortized bond premium 3,086 — 343 2,743 343
Total business-type activities $ 29,072 $ — $ 2,713 $ 26,359 $ 2,833

Debt service payments are made from the following sources:
(A) Property tax recorded in the debt service funds
(B) Revenues recorded in the general fund
(C) Property tax voter-approved debt
(D) Revenues recorded in the special revenue funds
(E) Compensated absences are financed by governmental funds (General Fund, Federal/State Grant Fund, LMIHF, Municipal Capital Improvement Fund, and Other Governmental Funds) and proprietary funds (Sewer Service Fund) have funded the compensated absences through contributions to the General Fund.

Internal service funds predominantly serve governmental funds and therefore, the long-term liabilities of these funds are included as part of the above totals for governmental activities. At June 30, 2021,

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
78 $22.9 million of bonds, loans payable, and capital leases related to the internal service funds are included in the above amounts.

4. Annual Requirements to Maturity
Primary Government
The annual repayment schedules for governmental activities’ long-term debt as of June 30, 2021, are as follows (in thousands):

Governmental Activities1
General Obligation Bonds Lease Revenue Bonds
Special Assessment District
Bonds
Year Ending
June 30 Principal Interest Principal Interest Principal Interest 2022 $ 24,850 $ 14,188 $ 6,330 $ 2,000 $ 365 $ 78
2023 22,960 13,247 6,650 1,676 380 67
2024 15,540 12,471 6,990 1,335 390 55
2025 15,940 12,069 7,345 976 395 42
2026 16,370 11,649 7,725 599 60 34
2027-2031 87,570 51,040 8,125 203 310 143
2032-2036 81,230 36,521 — — 360 90
2037-2041 72,880 24,174 — — 330 24
2042-2046 71,755 13,141 — — — —
2047-2051 40,980 2,785 — — — —
Total $ 450,075 $ 191,285 $ 43,165 $ 6,789 $ 2,590 $ 533 Capital Leases
Year Ending
June 30 Principal Interest
2022 $ 10,602 $ 661
2023 5,059 444
2024 4,612 322
2025 3,721 209
2026 1,263 122
2027-2031 3,585 207
Total $ 28,842 $ 1,965
Pension Obligation Bonds Total
Year Ending
June 30 Principal
Accreted
Interest Interest Principal
Accreted
Interest Interest
2022 $ 23,758 $ 38,447 $ 7,555 $ 65,905 $ 38,447 $ 24,482 2023 23,425 40,460 7,139 58,474 40,460 22,573
2024 47,380 — 5,894 74,913 — 20,075
2025 50,395 — 3,685 77,796 — 16,981
2026 53,606 — 1,253 79,024 — 13,658
2027-2031 — — — 99,590 — 51,593
2032-2036 — — — 81,590 — 36,612
2037-2041 — — — 73,210 — 24,199
2042-2046 — — — 71,755 — 13,141
2047-2051 — — — 40,980 — 2,785
Subtotal 198,564 78,907 25,526 723,237 78,907 226,099 Less: unaccreted
interest — (9,204) — — (9,204) —
Total $ 198,564 $ 69,703 $ 25,526 $ 723,237 $ 69,703 $ 226,099 1 The specific year for payment of other long-term liabilities is not practicable to determine.

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
79 The City's general obligation bonds, pension obligation bonds, and lease revenue bonds do not permit acceleration upon an event of default or provide for other finance-related consequences. The City’s capital leases provide for the return of leased equipment in the event of a termination of the lease by the City. In addition, capital lease rental payments due within the same fiscal year may become immediately due upon an event of default.

The annual repayment schedules for business-type activities’ long-term debt as of June 30, 2021, are as follows (in thousands):

Business-Type Activities
Year Ending
June 30
Sewer Revenue Bonds
Principal Interest
2022 $ 2,490 $ 1,159
2023 2,610 1,034
2024 2,720 926
2025 2,860 790
2026 3,000 647
2027-2029 9,936 1,010
Total $ 23,616 $ 5,566
The City pledged future net revenues to repay its sewer revenue bonds. The total principal and interest remaining to be paid on the bonds is $29.2 million . The principal and interest payments made in FY 2020-21 were $3.6 million and pledged revenues (total net revenues calculated in accordance with the bond indenture) for the year ended June 30, 2021 were $23.2 million . Debt service payments on the City’s sewer bonds are subject to acceleration in the event of default.

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
80 Oakland Redevelopment Successor Agency (ORSA)

1. Summary Schedule of Long-Term Debt
The following is a summary of ORSA’s long-term debt as of June 30, 2021 (in thousands):

Original
Issued
Amount
Issued
Year
Maturity
Fiscal
Year
Interest Rate
Range
Principal
Balance
Tax Allocation Bonds:

Central District Redevelopment Project
Subordinated Tax Allocation Bonds, Series 2006T $ 33,135 2006 2022 5.41% $ 3,990 Subordinated Tax Allocation Refunding Bonds, 2013 102,960 2013 2023 5.00% 18,720 Coliseum Area Redevelopment Project
Tax Allocation Bonds, Series 2006B-T 73,820 2006 2036 5.54% 52,125 Central City East Redevelopment Project
Tax Allocation Bonds, Series 2006A-T 62,520 2006 2035 5.54% 40,755 Broadway/MacArthur/San Pablo Redevelopment Project
Tax Allocation Bonds, Series 2006C-T 12,325 2006 2033 5.59% 7,415 Tax Allocation Bonds, Series 2010T 7,390 2010 2041 7.20% - 7.40% 6,895 Subtotal 292,150 129,900
Subordinated Tax Allocation Refunding Bonds:

Series 2015-TE 22,510 2015 2037 5.00% 22,510
Series 2015-T (Federally Taxable) 66,675 2015 2036 3.48% - 4.92% 48,310 Series 2018-TE 15,190 2018 2032 5.00% 15,190
Series 2018-T (Federally Taxable) 41,765 2018 2040 3.00% - 4.00% 37,440 Subtotal 146,140 123,450
Total long-term debt $ 438,290 $ 253,350

2. Revenues Pledged for the Repayment of Debt Service
Tax Allocation Bonds
The Tax Allocation Bonds (TAB), which are comprised of Series 2006T, Series 2013, Series 2006B- T, Series 2006A-T, Series 2006C-T, and Series 2010T Bonds are issued primarily to finance redevelopment projects and are all secured by pledge of redevelopment property tax revenues, consisting of a portion of taxes levied upon all taxable properties within each of the tax increment generating redevelopment project areas, and are equally and ratably secured on a parity with each TABs series.

As of June 30, 2021, the total principal and interest remaining on these TABs was $183.2 million and the property tax revenues are pledged until the year 2041, the final maturity date of the bonds. Debt service payments are requested through the Recognized Obligation Payment Schedule (ROPS) as enforceable obligations until the debt obligations have been satisfied.

Subordinated Tax Allocation Refunding Bonds
The Subordinated Tax Allocation Refunding Bonds are comprised of Series 2015-TE and Series 2015-T (the Series 2015 Bonds), and Series 2018-TE and Series 2018-T Bonds (the Series 2018

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
81 Bonds). These Bonds are limited obligations of the ORSA and payable from and secured by pledged tax revenues. Pledged tax revenues are allocated to the ORSA, excluding tax revenues required to pay debt service on the existing bonds and amounts required to be paid to taxing entities pursuant to AB X1 26, the Redevelopment Dissolution Act, unless such payments are subordinated.

As of June 30, 2021, the total principal and interest remaining on Series 2015 Bonds and Series 2018 Bonds was $182.9 million and the property tax revenues are pledged until the fiscal year 2040, the final maturity date of the bonds. The ORSA’s debt service payments are requested through the ROPS as enforceable obligations until the debt obligations have been satisfied.

Events of Default and Acceleration Clauses
ORSA is considered to be in default if ORSA fails to pay the principal or redemption price of or sinking fund installment for, or interest on, any outstanding bond, when and as the same will become due and payable, whether on the interest payment date, at maturity, by call redemption, or otherwise.

If ORSA defaults on its obligations under the bond indenture, the trustee has the right to accelerate the bonds. Each bond insurer will be entitled to control and direct the enforcement of all rights and remedies granted to the bond owners. In the event the maturity of a bond is accelerated, the bond insurer, in its sole discretion, may elect to pay accelerated principal and interest accrued, on such principal to the date of acceleration (to the extent unpaid by ORSA) and the trustee shall be required to accept such amounts. Upon payment of such accelerated principal and interest accrued to the acceleration date, the bond insurer’s obligations under the insurance policy with respect to the bond shall be fully discharged. However, in the event of a default and such acceleration, there can be no assurance that the trustee will have sufficient moneys available for payment of the bonds.

3. Summary of Changes in Long-Term Obligations
The changes in long-term obligations for the year ended June 30, 2021, are as follows (in thousands):

Oakland Redevelopment Successor Agency
Balance at
July 1,
2020 Additions Reductions
Balance at
June 30,
2021
Amounts
due within
one year
Tax allocation bonds $ 157,325 $ — $ (27,425) $ 129,900 $ 23,545 Subordinated tax allocation refunding
bonds 128,095 — (4,645) 123,450 4,795
Less unamortized amounts:

Issuance premiums 7,200 — (1,523) 5,677 1,523
Issuance discounts (865) — 55 (810) (43)
Total ORSA $ 291,755 $ — $ (33,538) $ 258,217 $ 29,820

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
82 4. Annual Requirements to Maturity
The debt service requirements for all debt are based upon a fixed rate of interest. The annual requirements to amortize outstanding tax allocation bonds outstanding as of June 30, 2021, including mandatory sinking fund payments, are as follows (in thousands):

Oakland Redevelopment Successor Agency
Tax Allocation Bonds
Subordinated Tax
Allocation Refunding
Bonds
Year Ending June 30 Principal Interest Principal Interest 2022 $ 23,545 $ 6,607 $ 4,795 $ 5,401
2023 9,365 5,747 8,030 5,178
2024 5,530 5,344 4,495 4,959
2025 5,830 5,028 4,655 4,796
2026 6,150 4,695 4,825 4,597
2027 - 2031 36,225 17,799 24,070 19,551
2032 - 2036 37,675 6,806 38,760 12,908
2037 - 2041 5,580 1,237 33,820 2,064
Total $ 129,900 $ 53,263 $ 123,450 $ 59,454

5. Outstanding Defeased Bonds
For financial reporting purposes, the Former Agency’s advance-refunded debt is considered defeased and therefore removed as a liability from ORSA’s statement of fiduciary net position. The remaining outstanding balance for the defeased bonds was $32.7 million at June 30, 2021.

Component Unit- Port of Oakland

1. Summary Schedule of Long-Term Debt
The following is a summary of long-term debt of the Port as of June 30, 2021 (in thousands):

Component Unit - Port of Oakland
Type of Obligation
Final Maturity
Year
Remaining
Interest Rates Amount
Bonds, notes, and loans payable
Senior and intermediate lien bonds 2033 0.669-5.00 $ 718,300 Notes and loans 2030 0.10-0.22 58,175
Unamortized bond discounts and premiums, net 48,787
Total bonds, notes, and loans payable $ 825,262

2. Revenues Pledged for the Repayment of Debt Service
The Port’s long-term debt consists of taxable bonds, tax-exempt bonds, short-term commercial paper notes and a loan from the California Department of Boating and Waterways. All of the Port’s outstanding bonds, loans and commercial paper notes have been issued to finance or refinance capital improvements to the Port’s aviation, maritime and commercial real estate infrastructure. The majority of the Port’s outstanding bonds are revenue bonds, which are secured by Pledged Revenues of the Port. Pledged Revenues are substantially all revenues and other cash receipts of the Port, including,

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
83 without limitation, amounts held in the Port Revenue Fund with the City, but excluding amounts received from certain taxes, certain insurance proceeds, special facilities revenues, and certain other gifts, fees, and grants that are restricted by their terms to purposes inconsistent with the payment of debt service. Pledged revenues amounted to $354.6 million in fiscal year 2021.

Pledged Revenues do not include cash received from passenger facility charges (PFCs) or customer facility charges (CFCs) unless projects included in a financing are determined to be PFC or CFC eligible and bond proceeds are expended on such eligible projects and the Port elects to pledge PFCs or CFCs as supplemental security to such applicable bonds. Currently, the Port has no bonds for which PFCs or CFCs are pledged.

Senior Lien Bonds
The 2012 Series P and the 2020 Series R (collectively, the Senior Lien Bonds) were issued under the Senior Trust Indenture and are paid from Pledged Revenues first. As long as any Senior Lien Bonds remain outstanding, the Port has covenanted to collect rates, tolls, fees, rentals and charges so that Pledged Revenues in each fiscal year will be sufficient to pay all of the following amounts: (i) the sum of principal and interest on the outstanding Senior Lien Bonds; (ii) all other payments required for compliance with terms of the Senior Trust Indenture including, but not limited to, required deposits to any Reserve Fund; (iii) all other payments necessary to meet ongoing legal obligations to be paid from Pledged Revenues; and (iv) operation and maintenance expenses of the Port. In addition, payment of principal and interest on the Senior Lien Bonds when due is secured by a reserve fund held by the trustee.

The Port has also covenanted in the Senior Trust Indenture that Net Pledged Revenues (Revenues less the Operation and Maintenance Expenses) will be equal to at least 125 percent of actual debt service for the Senior Lien Bonds (Senior Lien Debt Service Coverage Ratio).

Events of default under the Senior Lien Trust Indenture include, but are not limited to, a failure to pay principal or interest, or a failure to pay the purchase price of a bond when due upon an optional or mandatory tender date. Port bankruptcy, reorganization, receivership, etc., are also considered default events, as is the failure to observe any covenant, provision or condition of the Senior Lien Indenture or the Bonds, which continues for a period of 60 days after notice. Failure to observe the covenant provisions or conditions of any specific debt obligation issued under the Senior Lien Indenture, which continues for a period of 60 days after notice, may also be considerate default events. Finally, pursuant to supplemental indentures the Port will comply with the covenants of the tax certificates of the different bond series issued under the Senior Lien Trust Indenture. Remedies to any default under the Senior Lien Indenture or its supplements can include bringing suit upon the Senior Lien Bonds, or some other legal remedy to enforce the rights of bondholders.

As of June 30, 2021, the outstanding balance of Senior Lien Bonds is $373.7 million.

California Department of Boating and Waterways (DBW) Loan The DBW Loan is subordinate to the Senior Lien Bonds but superior to the Intermediate Lien Bonds and the Port’s Commercial Paper Notes with respect to the Pledged Revenues. The Port turned over the operation of its marina, financed, in part, with DBW Loans, to a private company through a fifty- year capital lease in May 2004.

In the event the Port fails in whole or in part to make payment when due pursuant to the loan agreement between the Port and the DBW, all principal and interest outstanding shall become immediately due and payable.

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
84 As of June 30, 2021, no DBW Loan remains outstanding.

Intermediate Lien Bonds
Bonds issued under the Intermediate Trust Indenture are next in payment priority. As of June 30, 2021, the bonds issued under this indenture consist of the 2017 Series D, Series E, and Series G Bonds (Series 2017 Bonds) and the 2021 Series H Bonds. The Intermediate Lien Bonds are paid from the Intermediate Lien Pledged Revenues. The Intermediate Lien Pledged Revenues are the Pledged Revenues after payment first, of all amounts payable for any Senior Lien Bonds and second, any debt service requirements payable on the DBW Loan, which is no longer outstanding as of June 30, 2021.

Payment of principal and interest on the Series 2017 Bonds and 2021 Series H Bonds is secured by a reserve fund held by the trustee, which includes a reserve surety policy as well as a cash deposit of Series 2021 Bond proceeds.

The Port covenanted in the Intermediate Trust Indenture that Net Pledged Revenues will be equal to at least 110 percent of the actual debt service becoming due and payable on the combined Intermediate Lien Bonds, Senior Lien Bonds, and DBW Loan (Intermediate Lien Debt Service Coverage Ratio).

Events of default under the Intermediate Lien Trust Indenture include, but are not limited to, a failure to pay principal or interest, or a failure to pay the purchase price of a bond when due upon an optional or mandatory tender date. Port bankruptcy, reorganization, etc., are also considered default events, as is the failure to observe any covenant, provision or condition of the Intermediate Lien Indenture or the Bonds, which continues for a period of 180 days after notice. Failure to observe the covenant provisions or conditions of any specific debt obligation issued under the Intermediate Lien Indenture, which continues for a period of 180 days after notice, may also be considerate a default event.

Finally, pursuant to supplemental indentures the Port will comply with the covenants of the tax certificates of the different bond series issued under the Intermediate Lien Trust Indenture. The Port will also ensure that the tax-exempt status of the bonds is maintained. Remedies to any default under the Intermediate Lien Trust Indenture or its supplements can include bringing suit upon the Intermediate Lien Bonds, or some other legal action to enforce the rights of bondholders.

As of June 30, 2021, the outstanding balance of Intermediate Lien Bonds is $344.6 million.

Commercial Paper Notes
Commercial Paper Notes (CP Notes) have the lowest payment priority. The Board of Commissioners authorized a $150.0 million Commercial Paper program in 1998 and a further $150.0 million was authorized in 1999. The maximum maturity of the CP Notes is 270 days and the maximum interest rate is 12 percent. The Port has classified the CP Notes as long-term debt as the Port intends and has the ability to reissue CP Notes until the expiration of the two irrevocable Letters of Credit (LOC), discussed below. Interest income paid to the holders of the CP Notes may fall under one of three tax treatments: tax-exempt Alternative Minimum Tax (AMT), tax-exempt non-AMT, and taxable.

The Port covenants in both of its LOC and Reimbursement Agreements with Bank of America National Association (BANA) that the Intermediate Lien Debt Service Coverage Ratio will equal to at least 110 percent.

On May 10, 2019 the Port extended the LOCs supporting its ABC Series and DEF Series of CP Notes, both issued by BANA. Specifically, the expiration dates of both LOCs were extended from June 30, 2019 to June 30, 2023. The BANA LOC supporting the DEF Series of CP Notes amounts to

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
85 $54.4 million ($50 million principal and interest of $4.4 million) and was originally issued on June 13, 2017, when the Port substituted its then-outstanding JPMorgan Chase Bank National Association (JPMorgan) LOC. The BANA LOC supporting the ABC Series of CP Notes amounts to $163.3 million ($150 million principal and interest of $13.3 million) and was originally issued on June 13, 2016, when the Port substituted its then-outstanding Wells Fargo LOC.

As of June 30, 2021, the outstanding balance of CP Notes under the Port’s ABC Series of CP Notes is $17.1 million while the outstanding balance under the Port’s DEF Series of CP Notes is $41.1 million.

The reimbursement agreements between the Port and BANA, which describe the terms and conditions under which BANA issues the commercial LOCs supporting the Port’s CP Notes, contain a number of default provisions and remedies. Events of default include the failure to reimburse draws, advances or term loans issued under the LOCs, or to pay LOC related fees to BANA when due.

Breaches of any of the covenants, conditions or agreements in the reimbursement agreements and other CP Notes related documents are also considered defaults, as are breaches of the covenants contained in the Senior Lien Indenture or Intermediate Lien Indenture. The reimbursement agreements also contain default provisions for bankruptcy, failure to make payments on other Port debt, the acceleration of other Port debt, legal/administrative changes affecting the Port’s ability to pay its debts or comply with its agreements, and material unsatisfied legal judgments.

Any of the above defaults can trigger the immediate acceleration of LOC related fees to BANA, the reduction of the LOC stated amounts, and/or suspensions of the Port’s ability to issue new CP Notes or make draws under the existing LOCs. Any accelerations or payment failures on other Port debt, failures to pay CP Notes related obligations, bankruptcy or limits to the Port’s authority may also trigger a further remedy whereby advances and/or term loans under the LOCs would become immediately due and payable.

3. Bond Issuances
On November 19, 2020, the Port issued $343.8 million of 2020 Series R (Federally Taxable) senior lien refunding revenue bonds. The bonds were issued to (i) refund a portion of the Port’s outstanding 2012 Series P senior lien bonds, (ii) repay in full a loan the Port received from the California Department of Boating and Waterways then outstanding of $3.3 million, (iii) satisfy the senior lien common reserve fund requirement and (iv) to pay costs of issuance. This transaction resulted in cash flow savings of $42.7 million, an economic gain (the difference between the present value of the debt service payments on the old debt and the present value of the debt service payments on the new debt) of $42.1 million, and a net loss for accounting purposes of $5.1 million, which is included in deferred outflows of resources and is being amortized over the remaining life of the bonds through May 2033.

Also, on February 2, 2021, the Port issued $182.0 million of 2021 Series H (AMT) (Forward Delivery) intermediate lien refunding revenue bonds. The bonds were issued to (i) refund a portion of the Port’s 2011 Series O senior lien bonds, (ii) satisfy the intermediate lien common reserve fund, and (iii) pay costs of issuance. This transaction resulted in cash flow savings of $66.5 million, an economic gain of $44.8 million, and a net loss for accounting purposes of $4.0 million, which is included in deferred outflows of resources and is being amortized over the remaining life of the bonds through November 2029.

On December 1, 2021, the Port defeased and redeemed a total of $24.6 million of outstanding aviation-related bond debt. The transaction was funded largely by a cash deposit of $24.2 million and will be reimbursed by grant allocations for COVID-19 relief.

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
86 4. Summary of Changes in Long-Term Obligations
The changes in the Port’s long-term obligations for the year ended June 30, 2021 , are as follows (in thousands):

Component Unit - Port of Oakland
Balance at
June 30,
2020 Additions Reductions
Balance at
June 30,
2021
Amounts due
within one
year
Bonds and notes payable:

Senior and intermediate lien bonds $ 788,075 $ 525,765 $ 595,540 $ 718,300 $ 58,330 Notes and loans payable (1) 79,212 — 21,037 58,175 — Unamortized premium and
discounts, net 40,277 36,737 28,227 48,787 9,889
Total bonds and notes payable 907,564 562,502 644,804 825,262 68,219 Other long-term liabilities:

Accrued vacation, sick leave,
and compensatory time 7,917 3,992 2,189 9,720 4,575 Environmental remediation 16,245 5,722 6,217 15,750 2,394 Self-insurance liability -
worker's compensation 8,862 3,595 1,867 10,590 1,867 Lease terminal loss contingency 16,601 — 16,601 — — Other long-term liabilities 5,042 1,896 560 6,378 — Total other long-term
liabilities 54,667 15,205 27,434 42,438 8,836
Total component unit $ 962,231 $ 577,707 $ 672,238 $ 867,700 $ 77,055 ___________
(1) As of June 30, 2021 , under the current LOCs, the Port was authorized to issue an aggregate principal amount of commercial paper notes up to $200 million.

5. Annual Requirements to Maturity
The Port’s required debt service payments on its Senior Lien Bonds and Intermediate Lien Bonds are due each May 1 and November 1 through May 1, 2033. The California Department of Boating and Waterways loan is due each August 1 through August 1, 2029. Commercial Paper has been classified as long-term debt because the Port has the intent and ability to continue to refinance this debt.

The Port’s required debt service payments for the outstanding long-term debt for the years ending June 30, are as follows (in thousands):

Year Ending June 30 Principal (1) Interest Total
2022 $ 58,330 $ 24,002 $ 82,332
2023 61,120 21,215 82,335
2024 82,397 23,063 105,460
2025 84,577 19,347 103,924
2026 86,796 15,832 102,628
2027-2031 350,950 36,664 387,614
2032-2033 52,305 1,775 54,080
Total $ 776,475 $ 141,898 $ 918,373
___________

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
87 (1) For purposes of this schedule, Commercial Paper debt is amortized over three fiscal years, pursuant to the “Term Loan” provisions of the Commercial Paper Reimbursement Agreements, beginning when the current letters of credit expire on June 30, 2023.

City-Wide Debt

1. Tax and Revenue Anticipation Notes Payable
On July 15, 2020, the City issued $109.2 million tax and revenue anticipation notes in advance of property tax collections. The notes were issued as three taxable series bearing interest rates of 0.814 percent to 1.029 percent with a final maturity of June 30, 2021. The notes were issued to finance the prepayment of the City’s Employer Unfunded Actuarial Accrued Liability contribution to CalPERS for fiscal year 2020-21. The short-term debt activity for the year ended June 30, 2021 is as follows (in thousands):

Beginning Balance Issued Redeemed Ending Balance
2020-2021 Tax and Revenue Anticipation Notes $ — $ 109,220 $ (109,220) $ —

2. Debt Compliance
There are a number of limitations and restrictions contained in the various bond indentures held by the City, ORSA, and the Port. The City, ORSA, and the Port believe they are in compliance with all significant limitations and restrictions for which noncompliance would adversely affect its ability to pay debt service.

3. Legal Debt Limit and Legal Debt Margin
As of June 30, 2021 , the City’s debt limit (3.75% of valuation subject to taxation) was $2.6 billion.

The total amount of debt applicable to the debt limit was $450.1 million . The resulting legal debt margin was $2.2 billion.

4. Prior Years’ Debt Defeasance
The City has defeased various bond issues by creating separate irrevocable escrow funds. New debt has been issued and the proceeds have been used to purchase U.S. government securities that were placed in the escrow funds. The investments and fixed earnings from the investments are sufficient to fully service the defeased debt until the debt is called or matures. For financial reporting purposes, the debt is considered defeased and is therefore removed as a liability from the City’s government-wide financial statements. At June 30, 2021 , the principal amount of defeased debt outstanding is as follows:

Refunded Bonds Refunding Bonds Issued
Date of
Refunding
Bond
Issuance
Outstanding
as of June
30, 2021
Scheduled
Call Date
Subordinated Housing Set-
Aside Revenue Bonds, Series
2011A-T
ORSA Subordinated Tax Allocation
Refunding Bonds, Series 2018-T
05/09/18 $ 31,075 09/01/21
Subordinated Tax Allocation
Bonds, Series 1993A
ORSA Central District
Redevelopment Project Subordinated
Tax Allocation Refunding Bonds,
Series 2013
09/18/13 1,625 09/01/22
$ 32,700

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
88 H. ESTIMATED LIABILITY FOR SELF-INSURANCE
Primary Government
The City is exposed to various risks of loss related to torts: theft of, damage to, and destruction of assets; errors and omissions; employee’s injuries; natural disasters; unemployment coverage; and providing health benefits to employees, retirees, and their dependents. For the past three years, there have been no significant reductions in any of the City’s insurance coverage and no settlement amounts have exceeded commercial insurance coverage, except for the Warehouse Fire Related Litigation as described in part 4 of this note.

The City is self-insured for its general liability, malpractice liability, public official’s errors and omissions, products and completed operations, employment practices liability, and auto liability up to $5.0 million retention level and up to $0.75 million retention level for workers’ compensation and has excess insurance with the California State Association of Counties - Excess Insurance Authority as described in the Insurance Coverage section.

1. Property Damage
Property damage risks are covered on an occurrence basis by commercial insurance purchased from independent third parties. All properties are insured at full replacement values after a $10,000 deductible to be paid by the City. Vehicles are insured at full replacement value after a $20,000 deductible. Equipment valued at more than $250,000 is insured at full replacement after a $100,000 deductible.

2. Workers’ Compensation
The City is self-insured for workers’ compensation up to a $0.75 million retention level. Payment of claims is provided through annual appropriations, which are based on claim payment experience and supplemental appropriations. Of the $73.6 million in claims liabilities as of June 30, 2021 , approximately $14.5 million is estimated to be due within one year.

Changes in self-insurance workers’ compensation for the years ended June 30, 2021 and 2020 are as follows (in thousands):
2021 2020
Self-insurance liability -
workers' compensation, beginning of year $ 71,874 $ 81,400 Current year claims and changes in estimates 25,908 14,613 Claims payments (24,158) (24,139)
Self-insurance liability - workers' compensation, end of year $ 73,624 $ 71,874 The estimated undiscounted liability for claims and contingencies is based on the results of actuarial studies and includes amounts for claims incurred but not reported and allocated loss adjustment expenses. The estimated liability is calculated considering the effects of inflation, recent claim settlement trends, including frequency and amount of payouts, and other economic and social factors.

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
89 3. General Liability
Numerous lawsuits are pending or threatened against the City. The City estimates that as of June 30, 2021, the amount of liability determined to be probable of occurrence is approximately $72.3 million.

Of this amount, claims and litigation approximating $22.8 million are estimated to be due within one year. The recorded liability is the City’s best estimate based on available information and may be revised as further information is obtained and as pending cases are litigated and is discounted at a rate of 2.5 percent. The City and the ORSA are involved in various claims and litigation arising in the ordinary course of its activities. In the opinion of the ORSA’s in-house counsel and the City Attorney’s Office for the City, none of these claims are expected to have a significant impact on the financial position or changes in financial position of the City and the ORSA. The City has not accumulated or segregated assets or set aside fund balances for the payment of estimated claims and judgments.

Changes in general claims liabilities for the years ended June 30, 2021 and 2020 are as follows (in thousands):
2021 2020
Self-insurance liability - general liability, beginning of year $ 62,772 $ 60,038 Current year claims and changes in estimates 40,577 40,709 Claims payments (31,043) (37,975)
Self-insurance liability - general liability, end of year $ 72,306 $ 62,772 The estimated undiscounted liability for claims and contingencies is based on the results of actuarial studies and includes amounts for claims incurred but not reported and allocated loss adjustment expenses. The estimated liability is calculated considering the effects of inflation, recent claim settlement trends, including frequency and amount of payouts, and other economic and social factors.

4. Warehouse Fire Related Litigation
In July 2020, the City settled litigation arising from the tragic fire at an Oakland warehouse that resulted in the deaths of 36 persons on December 2, 2016. In total, the City committed to payments of $33.1 million to settle this litigation. Remaining amounts due as of June 30, 2021 were as follows:

Year Ending June 30,
Scheduled
Payments
Insurance
Recovery Net Expense
2021 $ 22,599 $ (19,599) $ 3,000
2022 10,500 (2,401) 8,099
Total $ 33,099 (22,000) $ 11,099
At June 30, 2021, the City recorded a remaining liability of $8.1 million related to this litigation.

5. Insurance Coverage
On July 15, 2002, the City entered into a contract with the California State Association of Counties Excess Insurance Authority (CSAC EIA), a joint powers authority, whose purpose is to develop and fund programs of excess insurance for its member counties and cities.

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
90 Effective July 1, 2020, the self-insured retention levels and purchased insurance per occurrence are as follows:

Type of Coverage Limits
Purchased Insurance Per
Occurrence
General Liability Up to $5.0 million $5.0 to $25.0 million Automobile Liability Up to $5.0 million $5.0 to $25.0 million Public Officials Errors and Omissions Up to $5.0 million $5.0 to $25.0 million Products and Completed Operations Up to $5.0 million $5.0 to $25.0 million Employment Practices Liability Up to $5.0 million $5.0 to $25.0 million Workers' Compensation Up to $750,000 $750,000 to $100.0 million Component Unit – Port of Oakland

1. Workers’ Compensation
The Port is self-insured for workers’ compensation of the Port’s employees. The workers’ compensation liability of $10.6 million at June 30, 2021 is based upon an actuarial study performed as of June 30, 2021 that assumed a probability level of 80 percent and a discount rate of 0.0 percent.

Changes in liability, which is included as part of non-current liabilities, follows (in thousands):
2021 2020
Self-insurance liability -
workers' compensation, beginning of year $ 8,862 $ 13,184 Current year claims and changes in estimates 3,595 (3,059) Claims payments (1,867) (1,263)
Self-insurance liability - workers' compensation, end of year $ 10,590 $ 8,862

2. General Liability - Insurance
The Port purchases insurance on certain risk exposures including but not limited to property, automobiles liability, airport liability, umbrella liability, environmental liability, fidelity, fiduciary liability, and public official’s liability. Port deductibles for the various insured programs range from $10,000 to $1,000,000 each claim. The Port is self-insured for other general liability and liability/ litigation-type claims, workers’ compensation of the Port’s employees and most first party exposures. During fiscal year 2021, the Port carried excess insurance over $1,000,000 for the self- insured general liability and workers’ compensation exposures. There have been no claim payments related to these programs that exceeded insurance limits in the last three years.

3. Capital Improvement Projects
The Port maintains an Owner Controlled Insurance Program (OCIP) and Owner Protective Professional Indemnity Insurance Program (OPPI) for contractors and consultants working on Port Capital Improvement Projects (CIP).

OCIP provides general liability insurance and workers’ compensation insurance for contractors working on CIP projects. The Port is responsible for payment of the deductible/self-insured retention, which is currently $250,000 for each general liability and workers’ compensation claim.

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
91 The OPPI protects the Port from the potential error and omission of consultants working on Port CIP projects. Consultants must meet minimum insurance requirements of $1,000,000 to $2,000,000. If minimum insurance is not provided or does not respond, the Port would be responsible for $100,000 self-insured retention. There is no actuarial forecast for this coverage.

I. JOINT VENTURE
Oakland-Alameda County Coliseum
The City is a participant with the County of Alameda in a joint exercise of powers agreement forming the Oakland-Alameda County Coliseum Authority (Coliseum Authority), which was formed on July 1, 1995 to assist the City and the County in the financing of public capital improvements in the Oakland-Alameda County Coliseum Complex (Coliseum Complex) pursuant to the Marks-Roos Local Bond Pooling Act of 1985. The Oakland-Alameda County Coliseum Financing Corporation (Financing Corporation) is reported as a blended component unit of the Coliseum Authority. The eight-member Board of Commissioners of the Coliseum Authority consists of two council members from the City, two members of the Board of Supervisors from the County, two appointees of the City Council, and two appointees of the Board of Supervisors. The Board of Directors of the Financing Corporation consists of the City Manager and the County Administrator.

Stadium Bonds – Background
In August 1995, the Coliseum Authority issued $9.2 million in Fixed Rate Refunding Lease Revenue Bonds and $188.5 million in Variable Rate Lease Revenue Bonds (collectively known as the Stadium Bonds) to finance the costs of remodeling the stadium portion of the Coliseum complex as well as relocating the Raiders to the City.

On May 31, 2012, the Coliseum Authority issued $122.8 million in Refunding Bonds Series 2012 A with coupons of 2 to 5 percent to refund and defease all outstanding variable rate 2000 Series C Refunding Bonds. The bonds were priced at a premium, bringing total proceeds to $138.1 million.

These funds coupled with $13 million in the 2000 Series C reserve fund generated available funds of $151.1 million which was used to refund the 2000 C Refunding Bonds of $137.4 million, fund a reserve fund of $12.8 million, and to pay underwriter’s discount and issuance cost of $0.9 million.

The all-in-interest cost of the 2012A refunding bonds was 3.04 percent.

On December 14, 2021, the Coliseum Authority issued $23.9 million Lease Revenue Notes, 2021 Refunding Series A (Stadium Notes) which together with available revenue and existing reserves will fund an escrow account to currently refund all outstanding Stadium Bonds.

The Stadium Bonds are limited obligations of the Coliseum Authority payable solely from certain revenues of the Coliseum Authority, including revenues from the Stadium and Arena Complex and base rental payments from the City and the County. In the event that football revenues and other revenues received in connection with the Stadium are insufficient to make base rental payments, the City and the County are obligated to make up the shortfall in the base rental payments from their respective general funds. The City and the County each have covenanted to appropriate $11.0 million annually to cover such shortfall in revenue; however, the City and the County are jointly and severally liable to cover such shortfall, which means that the City could have to pay up to $22 million annually in the event of default by the County. The obligation of the City and the County to make such payments is reduced to the extent the Coliseum Authority receives revenues generated at

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
92 the complex to pay debt service and for operations and maintenance. The Stadium Bonds are not general obligations of either the City or the County.

Arena Bonds – Background
On August 2, 1996, the Coliseum Authority issued $70 million Series A-1 and $70 million Series A-2 Variable Rate Lease Revenue Bonds (Arena Bonds) to finance the costs of remodeling the Coliseum Arena (Arena) and in connection with the retention of the Golden State Warriors (the Warriors) to play professional basketball at the Arena for at least 20 basketball seasons, beginning with the 1997-98 season.

On April 14, 2015, the Authority issued $79.7 million in Refunding Bonds Series 2015 A with coupons of 0.8 to 3.793 percent to refund and defease all outstanding variable rate 1996 Series A-1 and A-2 Bonds. The bonds were sold at par, bringing total proceeds to $79.7 million.

Under the Bond Agreements, the Arena Bonds are limited obligations of the Coliseum Authority, payable solely from revenues received by the Coliseum Authority on behalf of the City and the County. Revenues consist of base rental payments from the City and the County, certain payments from the Warriors of up to an amount equal to the excess of the scheduled Debt Service over the difference between the Net Arena Revenues and Arena Expenses. If necessary to prevent default, additional premium revenues up to $10 million may be pledged to service Arena debt. If the revenues received from the Arena operations are not sufficient to cover the debt service requirements in any fiscal year, the City and the County are obligated to make up the shortfall in the base rental payments from their respective general funds. The County and the City each have covenanted to appropriate up to $9.5 million annually to cover such shortfalls in revenue; however, the City and the County are jointly and severally liable to cover such shortfall, which means that the City could have to pay up to $19 million annually in the event of default by the County.

On December 9, 2020, the California Supreme Court rejected an appeal from the Golden State Warriors of lower court rulings that required them to continue to make payments towards debt service on the Arena Bonds following the team's move to San Francisco, consistent with their original agreement with the Authority. It is anticipated that the Warriors will continue to pay debt service installments until the Arena Bonds debt obligation is satisfied in 2025.

Debt Compliance
Long-term debt outstanding as of June 30, 2021 is as follows (in thousands):

Type of Indebtedness Maturity Interest Rate
Authorized
and Issued
Outstanding as
of June 30, 2021
Stadium Bonds:
2012 Refunding Series A
Lease revenue bonds February 1, 2025 5% $ 122,815 $ 45,410 Arena Bonds:
2015 Refunding Series A
Lease revenue bonds February 1, 2026 3% - 4% 79,735 41,135 Total $ 202,550 $ 86,545

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
93 Debt payments during the year ended June 30, 2021 were as follows (in thousands):

Stadium Arena Total
Principal $ 10,035 $ 7,600 $ 17,635
Interest 2,772 1,650 4,422
Total $ 12,807 $ 9,250 $ 22,057
The following is a summary of long-term debt transactions for the year ended June 30, 2021 (in thousands):

Outstanding lease revenue bonds, beginning of year $ 104,180 Principal repayments (17,635)
Outstanding lease revenue bonds, end of year $ 86,545
Annual debt service requirements to maturity for the lease revenue bonds, including interest payments, are as follows (in thousands):

Stadium Bonds Arena Bonds Total
Year
Ending June 30, Principal Interest Principal Interest Principal Interest 2022 $ 10,535 $ 2,271 $ 8,200 $ 1,426 $ 18,735 $ 3,697
2023 11,065 1,744 8,800 1,167 19,865 2,911
2024 11,615 1,190 9,250 873 20,865 2,063
2025 12,195 610 10,000 550 22,195 1,160
2026 — — 4,885 185 4,885 185
Total $ 45,410 $ 5,815 $ 41,135 $ 4,201 $ 86,545 $ 10,016 Events of Default, Termination Events and Acceleration Clauses The Coliseum Authority relies on the City and the County to make base rental payments in order to fulfill its debt service obligations. The Coliseum Authority would be considered to be in default if one or more of the following events occurs: (1) the City and the County fail to pay any rental payable when it becomes due and payable, (2) the City and the County fail to comply with the terms, covenants and conditions of the Master Lease Agreement and (3) the City or the County declare bankruptcy or insolvency.

If an event of default occurs, the Trustee may declare the principal of all bonds then outstanding and the interest accrued thereon to be due and payable immediately. The Coliseum Authority may (1) terminate the Master Lease and recover certain damages, (2) re-enter or re-let the facilities, or (3) continue to collect rent from the City and the County on an annual basis by seeking a separate judgment each year for that year’s defaulted base rental payments. Upon an event of default, there is no remedy of acceleration of the total base rental payments due over the term of the Master Lease.

Management of Coliseum Authority
The Coliseum Authority entered into an agreement with the Oakland Coliseum Joint Venture (OCJV) to manage the entire Coliseum complex beginning July 1, 1998. On January 1, 2001, the Coliseum Authority terminated its agreement with OCJV and reinstated its Operating Agreement with Coliseum Inc. Coliseum Inc. subcontracted all of the operations of the Coliseum Complex to OCJV. The Operating Agreement between the Coliseum Authority and Coliseum Inc. expired, by its

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
94 terms, on July 31, 2006. The Coliseum Authority entered into a Termination Agreement whereby, in return for certain consideration, the Coliseum Authority agreed to perform the duties of Coliseum, Inc. on and after August 1, 2006. The Authority’s management agreement with OCJV expired in June 2012. In July 2012, AEG Management Oakland, LLC took over management of the Coliseum Complex after signing a five-year agreement. In April 2016, the agreement was extended through 2022.

Under the joint exercise of power agreement, which formed the Coliseum Authority, the City is responsible for funding up to 50 percent of the Coliseum Authority’s operating costs and debt service requirements; to the extent such funding is necessary. During the year ended June 30, 2021, the City made contributions of $10.4 million to fund its share of operating deficits and debt service payments of the Coliseum Authority.

The Coliseum Authority has anticipated a deficit for operating costs and repayment of its Stadium Bonds, such that the City and the County will have to contribute to base rental payments. The City has appropriated $12.5 million in its general fund for these purposes for the year ending June 30, 2022. In addition, the City has established a $22.7 million contingent liability to fund the Coliseum Authority deficit in the statement of net position, which is based on its share (50 percent) of the outstanding Stadium Bonds. The City has not established a contingent liability for the Arena Bonds because management is of the opinion that revenues from the Arena, including payments from the Warriors and revenues from Arena operations, will be sufficient to meet debt service requirements.

Complete financial statements for the Coliseum Authority can be obtained from the County Auditor- Controller’s Office at 1221 Oak Street, Room 249, Oakland, CA 94612.

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
95 III OTHER INFORMATION
A. DEFINED BENEFIT PENSION PLANS

1. General Information About the Pension Plans
The City has three defined benefit retirement plans: Oakland Police and Fire Retirement System (PFRS), the California Public Employees’ Retirement System (CalPERS) Safety Plan, and the CalPERS Miscellaneous Plan.

PFRS is a closed single employer pension plan that covered employees hired prior to July 1976.

Public safety employees hired subsequent to PFRS’ closure date and certain employees hired before the closure date who elected to change plans are covered by CalPERS. PFRS issues a publicly available financial report that includes financial statements and required supplementary information for the PFRS Plan. PFRS’ standalone financial statements are available by contacting the City Administrator’s Office, One Frank Ogawa Plaza, Oakland, CA 94612 or can access the financial statements via the City’s website, www.oaklandca.gov.

The CalPERS Safety and Miscellaneous Plans are agent multiple-employer defined benefit pension plans administered by CalPERS. A full description of the pension plan regarding number of employees covered, benefit provisions, assumptions (for funding, but not accounting purposes), and membership information are listed in the Plans’ June 30, 2020 Annual Actuarial Valuation Reports (funding valuation). Details of the benefits provided can be obtained in Appendix B of the actuarial valuation report. This report and CalPERS’ audited financial statements are publicly available reports that can be obtained at CalPERS’ website at www.calpers.ca.gov.

2. Benefits
PFRS – PFRS provides death, disability, and service retirement benefits to uniformed employees and their beneficiaries. Members who completed at least 25 years of service, or 20 years of service and have reached the age of 55, or have reached the age of 65, were eligible for retirement benefits. The basic retirement allowance equals 50 percent of the compensation attached to the average rank held during the three years immediately preceding retirement, plus an additional allowance of 1-2/3 percent of such compensation for each year of service (up to ten) subsequent to: a) qualifying for retirement, and b) July 1, 1951. Early retirees received reduced benefits based on the number of years of service. Benefit provisions and all other requirements are established by the City Charter (Charter).

CalPERS – 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.

The cost of living adjustments for the CalPERS plans are applied as specified by the Public Employees’ Retirement Law. The California Public Employees’ Pension Reform Act (PEPRA), which took effect in January 2013, changes the way CalPERS retirement and health benefits are applied, and places compensation limits on members. As such, members who established CalPERS membership on or after January 1, 2013 are known as “PEPRA” members. ,

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
96 CalPERS' Miscellaneous Plan provisions and benefits in effect at June 30, 2021 are summarized as follows:

Hire Date
Prior to
6/9/2012
6/9/2012 through
12/31/12
On or After
1/1/2013 (1)
Benefit formula 2.7% @ 55 2.5% @ 55 2.0% @ 62
Retirement age 50-55 50-55 52-67
Monthly benefits, as a % of eligible compensation 2.0% - 2.7% 2.0% - 2.5% 1.0% - 2.5% Required employee contribution rates 8.0% 8.0% 7.25% - 8.0% Required employer contribution rates 2021 (2) 12.344% 12.344% 11.594% - 12.344% (1) For "new members" as defined by the Public Employees’ Pension Reform Act (PEPRA) (2) Excludes contribution payments of $80,187,025 for unfunded liability CalPERS' Safety Plan provisions and benefits in effect at June 30, 2021 are summarized as follows:

Hire Date
Prior to
6/9/2012
6/9/2012 to
12/31/2012
On or After
1/1/2013 (1)
Benefit formula 3.0% @ 50 3.0% @ 55 2.7% @ 57
Retirement age 50 50-55 50-57
Monthly benefits, as a % of eligible compensation 3.0% 2.4% - 3.0% 2.0% - 2.7% Required employee contribution rates 11.0% 11.0% - 12.0% 11.0% - 11.5% Required employer contribution rates 2021 (2) 19.514% 16.151% - 19.514% 19.514% (1) For "new members" as defined by the Public Employees’ Pension Reform Act (PEPRA) (2) Excludes contribution payments of $52,041,128 for unfunded liability Covered Employees - As of June 30, 2020 actuarial valuation, the following employees were covered by the benefit terms of each pension plan:

PFRS
Plan
CalPERS
Miscellaneous
Plan
CalPERS
Safety Plan
Inactive employees or beneficiaries receiving benefits 768 3,807 1,340 Inactive employees entitled to but not yet receiving benefits — 1,890 439 Active employees — 2,797 1,167
Total 768 8,494 2,946
,

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
97 3. Contributions
For the years ended June 30, 2021 and 2020, the City’s actuarially determined contributions were as follows (in thousands):
2021 2020
PFRS Plan $ 43,648 $ 43,409
CalPERS Miscellaneous Plan (City) 91,778 82,284
CalPERS Miscellaneous Plan (Port) 25,787 24,588
CalPERS Safety Plan (City) 86,687 78,049
CalPERS Safety Plan (Port) 679 598
Total $ 248,579 $ 228,928
PFRS – The City contributes, at a minimum, such amounts that are necessary, determined on an actuarial basis, to provide assets sufficient to meet benefits to be paid to PFRS members. The City is required to fund all liabilities for future benefits for all members by June 30, 2026. In order to do so, the City makes contributions at rates established by consulting actuaries based upon plan valuations using various assumptions as to salary progression, inflation, and rate of return on investments. The City’s contributions are based on a level percentage of all uniformed employees’ compensation.

Significant actuarial assumptions used to compute actuarially determined contribution requirements are the same as those used to compute the pension benefits.

On July 30, 2012, the City issued additional Pension Obligation Bonds (Series 2012) and contributed $210.0 million to PFRS. As a result of a funding agreement entered into between the PFRS Board and the City, no additional contributions were required until July 1, 2017. The City resumed contributions to PFRS on July 1, 2017. The City contributed $43.6 million in the year ended June 30, 2021.

CalPERS – Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. 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 employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.

Port’s CalPERS Safety Unit - Special Agreement with the City of Oakland During the period from July 1, 1976, through January 17, 1998 (employment period), the Port appointed certain employees to positions in the classifications of Airport Servicemen and Airport Operations Supervisors. The Port was and has always been the employer that directly appointed, retained, employed, and compensated the personnel in these positions. As result of a decision by CalPERS’ Board of Administration on April 15, 1998, employees appointed to positions in the classifications of Airport Servicemen and Airport Operations Supervisors were reclassified from the Miscellaneous Unit member status in CalPERS to Safety Unit member status, effective retroactively to the later of either the date of their respective employment in such classifications or July 1, 1976.

The decision to reclassify employees to safety member status resulted in an additional net cost to ,

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
98 provide retirement benefits earned during the employment period. CalPERS’ actuary estimated that the present value of this net cost (including subsequent actual experience through June 30, 2000, and projected experience through June 30, 2002) was $5.9 million.

The Port entered into an agreement with the City for the payment of this net cost by the Port directly to CalPERS. The agreement provides for the Port to make payments over 20 years in annual installments, with interest at 4.34 percent and adjusted for cost of living at a rate of 3.75 percent.

Under this agreement, the Port’s obligation will not fluctuate based on the recognition of market gains or losses, changes in the actuarial assumptions, or experiences that differ from the actuary projections.

The Port’s obligation will remain fixed until paid in full. For the year ended June 30, 2021, the Port recognized principal payments of $0.7 million for the Safety Unit obligation.

4. Net Pension Liability
The table below shows how the net pension liability as of June 30, 2021, is distributed (in thousands).

Governmental Activities $ 1,754,458
Business-type Activities 46,916
Component Unit - Port of Oakland 219,587
Total $ 2,020,961
As of June 30, 2021, the City’s net pension liability is comprised of the following (in thousands):

PFRS Plan $ 224,997
CalPERS Miscellaneous Plan (City) 717,876
CalPERS Miscellaneous Plan (Port) 217,954
CalPERS Safety Plan (City) 858,501
CalPERS Safety Plan (Port) 1,633
Total $ 2,020,961
The City’s net pension liability is measured for each plan as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability is measured as of June 30, 2020, using an annual actuarial valuation as of June 30, 2019, rolled forward to June 30, 2020, using standard update procedures. The Port’s proportionate share of the City’s Miscellaneous Plan was determined based on a three year average of the Port's employer contributions divided by the total employer contributions and was 23.29 percent for the June 30, 2020 measurement date. ,

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
99 The changes in the net pension liability for the PFRS Plan are as follows (in thousands):

Increase (Decrease)
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability
Balance at June 30, 2019 (valuation date) $ 628,211 $ 384,710 $ 243,501 Change for the year:

Interest on the total pension liability 36,078 — 36,078 Differences between expected and
actual experience (5,699) — (5,699)
Contributions - employer — 43,409 (43,409)
Net investment income — 6,997 (6,997)
Administrative expenses — (1,523) 1,523
Benefit payments, including refunds (54,619) (54,619) — Net changes (24,240) (5,736) (18,504)
Balance at June 30, 2020 (measurement date) $ 603,971 $ 378,974 $ 224,997 The changes in the net pension liability for each CalPERS plan are as follows (in thousands):

CalPERS Miscellaneous Plan CalPERS Safety Plan
Increase (Decrease) Increase (Decrease)
Total
Pension
Liability
Plan
Fiduciary
Net
Position
Net
Pension
Liability
Total
Pension
Liability
Plan
Fiduciary
Net
Position
Net
Pension
Liability
Balance at June 30, 2019
(valuation date) $ 2,864,529 $ 1,960,494 $ 904,035 $ 2,230,185 $ 1,442,454 $ 787,731 Changes for the year:

Service cost 46,683 — 46,683 46,907 — 46,907
Interest on the total pension
liability 200,794 — 200,794 159,371 — 159,371
Differences between expected and
actual experience 637 — 637 28,634 — 28,634
Contributions from the employer — 100,610 (100,610) — 72,015 (72,015) Contributions from employees — 20,616 (20,616) — 20,559 (20,559) Plan to plan movement — 1 (1) — (1) 1
Net investment income — 97,856 (97,856) — 71,970 (71,970) Administrative expenses — (2,764) 2,764 — (2,034) 2,034 Benefits payments, including
refunds of employee contributions (160,418) (160,418) — (106,609) (106,609) — Net changes 87,696 55,901 31,795 128,303 55,900 72,403 Balance at June 30, 2020
(measurement date) $ 2,952,225 $ 2,016,395 $ 935,830 $ 2,358,488 $ 1,498,354 $ 860,134 ,

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
100

5. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2021 , the City and the Port recognized pension expense of $235.9 million and $23.5 million, respectively. At June 30, 2021, the City’s deferred outflows of resources and deferred inflows of resources related to pension items are from the following sources (in thousands):

CalPERS
PFRS Plan
City Miscellaneous
Plan Safety Plan Total City
Deferred
Outflows
of
Resources
Deferred
Inflows
of
Resources
Deferred
Outflows
of
Resources
Deferred
Inflows
of
Resources
Deferred
Outflows
of
Resources
Deferred
Inflows
of
Resources
Deferred
Outflows
of
Resources
Deferred
Inflows
of
Resources
Pension contributions
subsequent to
measurement date $ 43,648 $ — $ 91,778 $ — $ 86,687 $ — $ 222,113 $ — Change in assumptions — — — — 31,277 (2,854) 31,277 (2,854) Differences between
expected and actual
experience — — 14,262 — 41,559 — 55,821 —
Net differences
between projected and
actual earnings on plan
investments 3,104 — 10,859 — 11,964 — 25,927 —
Change in
proportionate share — — 4,964 — — — 4,964 —
Total $ 46,752 $ — $ 121,863 $ — $ 171,487 $ (2,854) $ 340,102 $ (2,854) At June 30, 2021 , the City's pension expense was composed of the following amounts by plan (in thousands):

CalPERS
PFRS Plan
City
Miscellaneous
Plan Safety Plan Total City
Pension expense $ 10,598 $ 90,410 $ 134,931 $ 235,939
At June 30, 2021, the Port’s deferred outflows of resources and deferred inflows of resources related to pension items are from the following sources (in thousands):

Port Miscellaneous Plan
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Pension contributions subsequent to
measurement date $ 25,787 $ —
Differences between expected and actual
experience 4,330 —
Net differences between projected and
actual earnings on plan investments 3,297 —
Change in proportionate share — (4,241)
Total $ 33,414 $ (4,241)
At June 30, 2021 , the City and the Port reported $222.1 million and $25.8 million, respectively, as deferred outflows of resources related to contributions subsequent to the measurement date, which will be recognized as a reduction to net pension liability in the year ending June 30, 2022. Other ,

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
101
amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows (in thousands):

Deferred Outflows/(Inflows) of Resources
Measurement
Period Ending
June 30 City Port Total
2021 $ 31,923 $ 2,279 $ 34,202
2022 27,622 1,159 28,781
2023 28,504 2,300 30,804
2024 22,123 1,889 24,012
2025 — — —
Thereafter — — —
Total $ 110,172 $ 7,627 $ 117,799

6. Actuarial Assumptions
The June 30, 2019 valuation was rolled forward to determine the June 30, 2020 total pension liability, based on the following actuarial methods and assumptions:

PFRS Plan
CalPERS Miscellaneous and
Safety Plans
Valuation date July 1, 2019 June 30, 2019
Measurement date June 30, 2020 June 30, 2020
Actuarial cost method Entry-age normal cost method Entry-age normal cost method Discount rate 5.37% 7.15%
Inflation rate 2.75% (U.S.) to 2.85% (Bay Area) 2.50%
Salary increases n/a Varies by Entry Age and Service
Post-retirement benefits
increases
Police - 2.5% increase at January 1,
2019 and July 1, 2020 , 3% increase at
July 1, 2021, 3.5 % increase at July 1,
2022 and 2023, 3.25% increase starting
at 2024
Fire - 1% at November 1, 2018 and
January 1, 2019, 2% at November 1,
2019, 3.25% annual increase starting July
1, 2020
The lessor of contract cost of
living adjustment or 2.5% until
purchasing power protection
allowance floor on purchasing
power applies, 2.50% thereafter
For the PFRS Plan, mortality rates for healthy lives were based on the CalPERS Healthy Annuitant Table from the 2012-2015 Experience Study, excluding the 15-year projection using 90% of Scale MP-2016. Mortality rates for disabled lives were based on the CalPERS Industrial Disability Mortality Table from the 2012-2015 Experience Study, excluding the 15-year projection using 90% of Scale MP-2016. The mortality tables are projected to improve with MP-2017 generational mortality improvement tables, with improvements projected from a base year of 2014 (the mid-point of the CalPERS base tables).

For the CalPERS Miscellaneous and Safety Plans, the mortality table used was developed based on CalPERS-specific data. The table includes 15 years of mortality improvements using the Society of Actuaries Scale 90% of scale MP-2016. For more details on this table, please refer to the December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015) that can be found on the CalPERS website.
,

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
102
Change in Assumptions – For the PFRS Plan, the mortality rates, mortality improvement projection scales and expected annual rate of return on investments have changed based on the June 30, 2017 experience study.

Discount Rates
PFRS – 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.

Best estimates of geometric real rates of return for each major class included in the PFRS’s target asset allocation as of June 30, 2020 measurement date are summarized in the following table:

Asset Class
Long-Term
Expected
Real Rate of
Return
Fixed Income 2.29%
Domestic Equity 5.55%
International Equity 7.69%
Covered Calls 4.64%
Credit Risk Offset 3.78%
Cash 1.92%
The discount rate used to measure the total pension liability was 5.37 percent. The projection of cash flows used to determine the discount rate assumed that the City would contribute to the PFRS Plan based on its July 1, 2012 funding agreement with the PFRS. This agreement suspends City contributions until the fiscal year beginning July 1, 2017, after which they will resume, based upon the recommendation of the actuary, with a Charter requirement that the PFRS Plan’s liabilities be fully funded by July 1, 2026. A cash flow projection showed that the projected fiduciary net position would be greater than or equal to the benefit payments projected for each future period. 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.

CalPERS - The discount rate used to measure each of the CalPERS Miscellaneous Plan and Safety Plan total pension liability was 7.15 percent. To determine whether the municipal bond rate should be used in the calculation of a discount rate, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. The tests revealed the assets would not run out. Therefore, CalPERS determined that the discount rates of 7.15 pecent were appropriate and the use of the municipal bond rate calculation is not necessary. The long- term expected discount rate is applied to all plans in the Public Employees Retirement Fund. The cash flows used in the testing were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained at CalPERS’ website under the GASB 68 section.

The long-term expected rate of return on pension plan investments was determined using a building- block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long- term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first ,

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
103
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 - 10 (1)
Real Return
Years 11+ (2)
Global Equity 50.00% 4.80% 5.98%
Fixed Income 28.00 1.00 2.62
Inflation Sensitive — 0.77 1.81
Private Equity 8.00 6.30 7.23
Real Assets 13.00 3.75 4.93
Liquidity 1.00 — (0.92)
(1) An expected inflation of 2.00% used for this period. (2) An expected inflation of 2.92% used for this period.

Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s net pension liability for each of the City’s retirement plans and the Port’s proportionate share of the net pension liability of the City’s CalPERS Miscellaneous Plan. The sensitivity of the net pension liability is calculated using the discount rate, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1% lower or 1% higher than the current rate (in thousands).
1% Decrease
at 6.15%
Measurement
Date at 7.15%
1% Increase
at 8.15%
CalPERS Miscellaneous Plan - City $ 990,618 $ 717,876 $ 490,118 CalPERS Miscellaneous Plan - Port proportionate share 300,763 217,954 148,806 CalPERS Safety Plan 1,193,779 860,134 587,785
1% Decrease
at 4.37%
Measurement
Date at 5.37%
1% Increase
at 6.37%
PFRS $ 279,560 $ 224,997 $ 178,053
,

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
104
B. POSTEMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS Primary Government

1. Plan Description
The City has three programs in place to partially pay health insurance premiums for certain classes of retirees from City employment. City retirees are eligible for retiree health benefits if they meet certain requirements relating to age and service. The retiree health benefits are described in the labor agreements between the City and local unions and in City resolutions. The demographic rates used for the CalPERS plans were public safety employees retirement benefits under a 3% at 50 formula and miscellaneous employees retirement benefits under a 2.7% at 55 formula.

In 2014, the City began to partially pre-fund the actuarially determined contribution (ADC) to the California Employer’s Retiree Benefit Trust (CERBT), an agent multiple-employer defined benefit post-employment healthcare plan administered by CalPERS. The CERBT is an Internal Revenue Code (IRC) Section 115 Trust and an investment vehicle that can be used by all California public employers to prefund future retiree health and OPEB costs.

The City’s single-employer defined benefit retiree health plan (Postretirement Health Plan) allows eligible retirees and their dependents to receive employer-paid medical insurance benefits through CalPERS. The medical insurance reimbursement is not to exceed the Kaiser-HMO family plan rate.

The Postretirement Health Plan also includes dental and vision benefits and reimbursement of Medicare Part B monthly insurance premium. The Postretirement Health Plan does not issue a separate financial report.

2. Benefits Provided
As provided by the Public Employees’ Medical & Hospital Care Act (PEMHCA), the City contracts with CalPERS for medical plan coverage for both active and retired employees. The City pays part of the health insurance premiums for all eligible retirees from City employment receiving a pension annuity earned through City service.

Employees Covered - Based on the July 1, 2019 Actuarial Valuation Report, the following employees were covered by the benefit terms for the OPEB plan:

Inactive retired participants and surviving spouses receiving benefits 2,782 Inactive participants' spouses receiving benefits 1,099 Active employees eligible for retirement benefits 1,048 Active employees not yet eligible for retirement benefits 2,501 Total 7,430

3. Contributions
The annual contribution is based on the actuarially determined contribution. The City pays a portion of retiree benefit expenses on a pay-as-you-go basis to third parties, outside of the CERBT fund, and funds the remaining actuarially determined contribution (ADC) to the CERBT fund. Benefit payments occur in the form of direct payments for premiums and taxes (explicit subsidies) and indirect payments to retirees in the form of higher premiums for active employees (implicit subsidies). On August 9, 2018, the City contributed the second of two one-time payments of $10.0 million into the CERBT fund to partially prefund the actuarially determined contribution for OPEB, ,

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
105
as provided for in the FY 2017-19 Adopted Policy Budget. In addition, on February 26, 2019, City Council adopted an Other Post-Employment Benefits Funding Policy providing for ongoing prefunding contributions of 2.5% of payroll. On June 2, 2020, City Council authorized the postponement of this payment for the years ending June 30, 2020 and June 30, 2021 in response financial challenges arising from the COVID-19 global pandemic.

The June 30, 2020 economic assumptions were based on the CERBT Strategy 1 and the Bond Buyer GO 20-year Bond Municipal Bond Index as of June 30, 2020. Since the City has adopted a funding approach, the discount rate used for the June 30, 2020 measurement date reporting was based on a blending of these two rates. The assumed CERBT Strategy 1 rate was 7.59%. The Bond Buyer GO 20-year Bond Municipal Bond Index as of June 2020 was 2.21%. Since the assets accumulated as of the measurement date are not sufficient to pay benefit payments, the depletion test of the expected benefit payments resulted in a blended rate of 2.21%, or the yield on the Bond Buyer 20-Bond GO Index.

Benefits and other contributions paid by the City for the year ended June 30, 2021 is shown below.

Explicit contributions $ 22,976
Implicit contributions 6,541
Trust contributions —
Total $ 29,517
The amount of implicit contributions paid are reflected as a reduction in (active) employee premiums.

The contributions made during the year ended June 30, 2021 are reported as deferred outflows of resources on the statement of net position as discussed below.

Net OPEB Liability
The City’s net OPEB liability is measured as the total OPEB liability, less the OPEB plan’s fiduciary net position. The net OPEB liability is measured as of June 30, 2020 (measurement date), using an annual actuarial valuation as of July 1, 2019. A summary of principal actuarial assumptions and methods used to determine the total OPEB liability is as follows:

Actuarial valuation date July 1, 2019
Actuarial cost method Entry-Age Normal Cost Method
Asset valuation method Market value
Amortization method Level percentage of pay, closed period, 30 years Inflation 2.50%
Discount rate 2.21%
Rate of salary increase 2.75%
Ultimate rate of medical inflation 3.50%
Years to ultimate rate of medical inflation 20 years
Mortality, termination and disability Based on the 2017 CalPERS Experience Study from 1997 to 2015
Postretirement benefit increase Police - 2.5% and 1% increases at January 1, 2018; 2% on July 1, 2018; 2.5% at January 1, 2019; then 3.25%
Fire - 3.25%
,

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
106
Discount Rate - Economic assumptions were based on the CERBT Strategy 1 and the Bond Buyer GO 20-Year Bond Municipal Bond Index as of June 30, 2020. Based on this approach the discount rate utilized was 2.21%.

The following table shows the changes in net OPEB liability for the year ended June 30, 2021:

Increase (Decrease)
Total
OPEB
Liability
Plan
Fiduciary
Net Position
Net OPEB
Liability
Balance at June 30, 2019 (valuation date) $ 625,906 $ 27,337 $ 598,569 Changes for the year:

Service cost 24,307 — 24,307
Interest 27,522 — 27,522
Changes of assumptions 222,308 — 222,308
Contributions from the employer — 28,917 (28,917)
Net investment income — 967 (967)
Administrative expenses — (14) 14
Benefit payments (28,917) (28,917) —
Net changes 245,220 953 244,267
Balance at June 30, 2020 (measurement date) $ 871,126 $ 28,290 $ 842,836 Changes in assumptions includes a decrease in the discount rate applied from 4.5% to 2.21%. Future assumptions are subject to change and depend, in part, on the City's actual CERBT contributions in future periods.

4. Sensitivity of Liabilities to Changes in the Discount Rate and Healthcare Cost Trend Rate The discount rate used for the year ended June 30, 2021 is 2.21 percent. The impact of a 1 percent increase or decrease in the discount rate assumption is shown below:
1% Decrease at

1.21%
Measurement
Date at 2.21%
1% Increase at

3.21%
Net OPEB Liability $ 979,178 $ 842,836 $ 733,004
The following presents the net OPEB liability of the OPEB plan as of the measurement date, as well as what the net OPEB liability would be if they were calculated using healthcare cost trend rates that are one percentage-point lower or one percentage-point higher than the current rate (in thousands):
-1.00% Baseline +1.00%
Net OPEB Liability $ 727,961 $ 842,836 $ 981,824

5. OPEB Plan Fiduciary Net Position
The City’s OPEB plan trust fund is included in the CalPERS CERBT agent multiple-employer plan reported in the CalPERS Annual Comprehensive Financial Report (ACFR). ,

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
107

6. OPEB Expenses and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2021, the City recognized a negative OPEB expense of $9.0 million. At June 30, 2021 , the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
OPEB contributions subsequent to measurement date $ 29,517 $ — Change in assumptions 185,255 210,162
Differences between expected and actual experience 9,949 3,600 Net difference between projected and actual earnings on plan investments 857 —
Total $ 225,578 $ 213,762
The $29.7 million reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the year ending June 30, 2022. Other amounts reported as deferred inflows of resources will be recognized as future OPEB expense as follows:

Measurement
Period Ending
June 30
Deferred (Inflows) of
Resources
2021 $ (40,795)
2022 (40,771)
2023 10,231
2024 16,582
2025 37,051
Thereafter —
Total $ (17,701)
Component Unit – Port of Oakland

1. Plan Description
The Port has established a Retiree Healthcare Plan and participates in the California Employer’s Retiree Benefit Trust (CERBT), an agent multiple-employer defined benefit postemployment healthcare plan administered by CalPERS. The CERBT is an Internal Revenue Code Section 115 trust and an investment vehicle that can be used by all California public employers to prefund future retiree health and OPEB costs.

The Port’s Retiree Healthcare Plan allows eligible retirees and their dependents to receive employer paid medical insurance benefits through CalPERS.

Prior to 2011, eligible retirees must have attained the age of fifty or over at the time of retirement, have five or more years of CalPERS service, and must be eligible to receive CalPERS retirement benefits. On July 21, 2011, the Port adopted resolutions that established a Health Benefit Vesting Requirement for employees hired on or after September 1, 2011 (on or after April 1, 2013 for members of SEIU and IBEW). The vesting schedule does not apply to employees that are granted a disability retirement.
,

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
108
Under the adopted vesting schedule, the Port shall pay a percentage of retiree medical coverage for a retiree and his or her eligible dependents based on the provisions of Section 22893 of the California Government Code. Under these rules, a retiree must have at least 10 years of credited service with a CalPERS agency, at least 5 of which are with the City/Port. The Port will pay a percentage of employer contributions for the retiree based upon the following:

Years of Credited Service
(at least 5 of which are with the City/Port)
Percentage of Employer
Contributions
10 50%
11 55%
12 60%
13 65%
14 70%
15 75%
16 80%
17 85%
18 90%
19 95%
20 or more 100%
Employees who were hired before October 1, 2009, have attained the age of fifty or over at the time of retirement, have five or more years of CalPERS service, and are eligible to receive CalPERS retirement benefits are entitled to retiree dental and vision coverage.

Employees who are members of the Service Employees International Union (SEIU) and International Brotherhood of Electrical Workers (IBEW) and were hired on or after June 9, 2012 are entitled to retiree dental and vision coverage if the employee has attained the age of fifty or over at the time of retirement, have five or more years of CalPERS service, and are eligible to receive CalPERS retirement benefits.

Employees Covered - As of the June 30, 2020 measurement date, the following current and former employees were covered by the benefit terms under the Port’s Retiree Healthcare Plan:

Active employees 466
Inactive employees or beneficiaries currently receiving benefits 594 Total 1,060

2. Contributions
Benefit provisions are established and are amended through negotiations between the Port and the various bargaining units during each bargaining period. The annual contribution is based on the actuarially determined contribution. The Port pays a portion of retiree benefit expenses on a pay-as- you-go basis to third parties and directly to beneficiaries (Pay-go), and funds the remaining actuarially determined contribution to the CERBT fund. For the year ended June 30, 2021, the Port’s cash contributions totaling $14.4 million consisted of $8.3 million in payments to third parties, $4.2 million paid to the CERBT fund, and the estimated implicit subsidy of $1.9 million. ,

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
109

3. Net OPEB Liability
The Port’s net OPEB liability was measured as of June 30, 2020, and the total OPEB liability used to calculate the net OPEB liability was determined by rolling forward the total OPEB liability from June 30, 2019 actuarial valuation to the measurement date of June 30, 2020 based on the following actuarial methods and assumptions:

Actuarial valuation date June 30, 2019
Actuarial cost method Entry-Age Normal
Discount rate 6.75%
Inflation 2.50%
Salary increases 3.00% per annum
Investment rate of return 6.75% net of investment expenses Mortality, termination and disability (1) Based on the 2017 CalPERS Experience Study from 1997 to 2015
Healthcare trend rate (2) 3.25-6.00% per year increase for medical and 3.0% per year increase for vision and dental, and

4.25%-6.0% per year increase for Medicare Part B
__________
1 The mortality table used was developed based on CalPERS’ specific data. The table includes a margin for mortality improvement using the Society of Actuaries 90% Scale MP-2016. The Experience Study Reports may be accessed on the CalPERS website www.calpers.ca.gov under Forms and Publications. 2 Based on the “Getzen” model published by the Society of Actuaries for purposes of evaluating long-term medical care.

The long-term expected rate of return on OPEB plan investments was determined using a building block method in which expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation.

The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Asset Class Target Allocation
Expected
Arithmetic
Nominal Return
(50 Years) (1)
Global Equity 59.00 % 8.08 %
U.S. Fixed Income 25.00 % 5.88 %
Treasury Inflation - Protected Securities 5.00 % 3.67 % Real Estate Investment Trust 8.00 % 7.91 %
Commodities 3.00 % 5.38 %
Expected Arithmetic Return (50 years) 7.21 %
Expected Geometric Return (50 years) 6.65 %
(1) Rates include a 2.5 percent long-term inflation assumption ,

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
110

4. Discount Rate
The discount rate used to measure the total OPEB liability was 6.75%. The projection of cash flows used to determine the discount rate assumed that Port 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 projected benefit payments to determine the total OPEB liability.

5. Changes in the Net OPEB Liability
The changes in the net OPEB liability for the Port’s Retiree Healthcare Plan are as follows (in thousands):

Increase (Decrease)
Total OPEB
Liability
Plan Fiduciary
Net Position
Net OPEB
Liability
Balance at June 30, 2020 $ 175,182 $ 88,020 $ 87,162
Changes for the year:

Service cost 4,416 — 4,416
Interest 11,793 — 11,793
Changes of assumptions (896) — (896)
Contributions from the employer — 14,141 (14,141)
Net investment income — 3,143 (3,143)
Administrative expenses — (44) 44
Benefit payments (9,941) (9,941) —
Net changes 5,372 7,299 (1,927)
Balance at June 30, 2020 $ 180,554 $ 95,319 $ 85,235

6. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare Cost Trend Rate
The discount rate used for the fiscal year 2021 is 6.75%. The following presents the net OPEB liability of the Port if it were calculated using a discount rate that is one percentage point lower to one percentage point higher than the current rate, as of June 30, 2021 (in thousands):
1% Decrease at

5.75%
Measurement Date
at 6.75%
1% Increase at

7.75%
Net OPEB Liability $ 107,203 $ 85,235 $ 66,896
The following presents the net OPEB liability of the Port if it were calculated using healthcare cost trend rates that are one percentage point lower to one percentage point higher than the current rate, as of June 30, 2021 (in thousands):
-1.00%
Current
Healthcare Costs
Trend Rate +1.00%
Net OPEB Liability $ 64,034 $ 85,235 $ 110,852
,

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
111

7. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2021 , the Port recognized OPEB expense of $7.9 million. The Port reported deferred outflows/inflows of resources related to OPEB from the following sources as of June 30, 2021 (in thousands):

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
OPEB contributions subsequent to measurement date $ 14,418 $ — Net difference between projected and actual earnings on OPEB plan investments 2,080 —
Difference between expected and actual experience — 1,948 Changes of assumptions — 3,971
Total $ 16,498 $ 5,919
The OPEB contributions made subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the subsequent measurement year. Other amounts reported as deferred inflows of resources, will be amortized annually, and recognized as a reduction to OPEB expense, for the years ending June 30 as follows (in thousands):

Year Ending
June 30
Deferred
(Inflows) of
Resources
2022 $ (2,310)
2023 (1,937)
2024 (124)
2025 532
Total $ (3,839)
,

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
112
C. COMMITMENTS AND CONTINGENCIES
Primary Government

1. Construction Commitments
As of June 30, 2021 , the City had outstanding construction encumbrances for the acquisition and construction of assets as follows (in thousands):

General
Fund
Federal/
State
Grant
Fund
Municipal
Capital
Improvement
Fund
Other
Special
Revenue
Fund
Other
Governmental
Funds
Internal
Service
Funds
Total
Governmental
Activities
Building, facilities and
infrastructure $ 20 $ — $ 382 $ 19 $ — $ 46 $ 467
Parks and open space 562 403 2,247 — — — 3,212
Streets and sidewalks 53 431 18,501 24 1,255 — 20,264 Technology
enhancement 583 — 1 — — 1,094 1,678
Traffic improvements — 5,331 2,009 — 506 — 7,846 Total $ 1,218 $ 6,165 $ 23,140 $ 43 $ 1,761 $ 1,140 $ 33,467 Sewer
Fund
Nonmajor
Parks and
Recreation
Total
Business-Type
Activities
Building, facilities and infrastructure $ — $ 102 $ 102 Sewers and storm drains 5,818 — 5,818
Streets and sidewalks 2,435 — 2,435
Total $ 8,253 $ 121 $ 8,374

2. Other Commitments and Contingencies
Recognized Obligation Payment Schedule
As of June 30, 2021 , the ORSA had encumbered $496.3 million for contracted obligations, per the ROPS covering the July 1, 2021 through June 30, 2022 period, which was approved by the DOF.

Component Unit – Port of Oakland
As of June 30, 2021 , the Port had construction commitments for the acquisition and construction of assets as follows (in thousands):

Aviation $ 38,834
Maritime 13,419
Total $ 52,253
The most significant projects for which the Port has contractual commitments for construction are Taxiway Pavement and Rehabilitation for $15.0 million, Airport Perimeter Dike improvements for $6.3 million, Landscape Security for $5.5 million, Aviation Sanitary Sewer Improvements for $5.2 million, Upgrades to the International Arrivals Building for $4.4 million, Maritime Sanitary Sewer Projects for $3.0 million, Paving Projects for $3.7 million, and Dredging Project for $4.3 million. ,

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
113

3. Power Purchases
The Port purchases electrical power for resale and self-consumption and currently has four power purchase agreements including East Bay Municipal Utility District (EBMUD), Western Area Power Administration (WAPA), Longroad Energy, and Northern California Power Agency (NCPA).

Counterparty
Contract
Ending Year Contract Structure Estimated Output Estimated Annual Cost EBMUD 2022
Take and Pay -
(Pay contract price only if
energy is received)
8,000 MWH
Approximately $584,000 with no
annual escalator through 2017;
approximately $464,000 with no
annual escalator from 2017-2022.

WAPA 2024
Take or Pay -
(Pay contract price without
regard to energy received)
17,000 MWH
Approximately $800,000 (Changes
annually depending on revenue
requirement for power generation
projects).

Longroad Energy 2027
Take and Pay -
(Pay contract price only if
energy is received)
1,200 MWH Approximately $200,000 with annual
escalator.

NCPA 2041
Take and Pay -
(Pay contract price only if
energy is received)
11,300 MWH Approximately $440,000 with no
annual escalator.

4. Environmental Remediation
The entitlements for the Airport Development Program (ADP) subject the Port to obligations arising from the adopted ADP Mitigation Monitoring and Reporting Program required under the California Environmental Quality Act, permits issued by numerous regulatory agencies including the Regional Water Quality Control Board and the Bay Conservation and Development Commission, and settlement agreements. The majority of these obligations have been met, and monitoring and reporting are ongoing.

A summary of the Port’s environmental remediation liability accounts, net of the estimated recoveries, included as an other liability on the statement of net position at June 30, 2021 , is as follows (in thousands):

Obligating Event
Liability, Net
of Recovery
Estimated
Recovery
Pollution poses an imminent danger to the public or environment $ 1,353 $ 409 Identified as responsible to clean up pollution 13,226 5 Begins or legally obligates to clean up or post-clean up activities 1,171 — Total by obligating event $ 15,750 $ 414
The environmental liability accounts in the summary table are listed by the initial obligating event.

Due to new information, the obligating event may change from the initial obligating event. Examples of obligating events include: 1) the Port is named, or evidence indicates that it will be named, by a regulator such as the Department of Toxic Substances Control or the Regional Water Quality Control Board, as a responsible party or potentially responsible party for remediation; or 2) the Port has commenced, or legally obligates itself to commence, clean-up activities, monitoring or operation and maintenance of the remediation effort (e.g., by undertaking a soil and groundwater pre-development investigation).
,

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
114
Methods and Assumptions
The Port measured the environmental liabilities for pollution remediation sites on Port-owned property using the Expected Cash Flow technique. The measurements are based on the current value of the outlays expected to be incurred. The cash flow scenarios include each component which can be reasonably estimated for outlays such as testing, monitoring, legal services, and indirect outlays for Port labor instead of ranges of all components. Reasonable estimates of ranges of possible cash flows are limited from a single scenario to a few scenarios. Data used to develop the cash flow scenarios is obtained from outside consultants, Port staff, and the Port’s outside legal counsel.

Changes to estimates will be made when new information becomes available. Estimates for the pollution remediation sites will be developed when the following benchmarks or changes in estimated outlays occur:
• Receipt of an administrative order;
• Participation, as a responsible party or a potentially responsible party, in the site assessment or investigation;
• Completion of a corrective measures feasibility study; • Issuance of an authorization to proceed;
• Remediation design and implementation, through and including operation and maintenance and post-remediation monitoring;
• Change in the remediation plan or operating conditions, including but not limited to type of equipment, facilities and services that will be used and price increases; • Changes in technology; or
• Changes in legal or regulatory requirements.

Recoveries
The environmental liabilities balances listed on the prior page have been reduced by estimated future recoveries. In calculating the estimated future recoveries, Port staff and outside legal counsel reviewed and applied the requirements of GASB Statement No. 49 for accounting for recoveries. For example, if a Port tenant has a contract obligation to reimburse the Port for certain pollution remediation costs, or if an insurance carrier has paid money on a certain claim and the Port is pursuing additional costs from the insurance carrier associated with the claim, then a recovery was estimated. If an insurance carrier has not yet acknowledged coverage, then a recovery was not estimated.

Litigation
The Port at various times is a defendant in various lawsuits arising in the normal course of business, including constructing public improvements or construction related claims for unspecified amounts.

The ultimate disposition of these suits and claims is not known and the Port’s insurance may cover a portion of any losses, if incurred. Port management may make provision for probable losses if deemed appropriate on the advice of legal counsel.
,

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
115
D. DEFICIT FUND BALANCES/NET POSITION
As of June 30, 2021, the following funds reported deficits in fund balance/net position (in thousands):

Fund Deficit
Other Governmental Funds
Lease Financing .................................................................. $ (934) JPFA Fund ........................................................................... (1) Internal Service Funds
Facilities .............................................................................. (28,024) Reproduction ....................................................................... (2,933) Central Stores ...................................................................... (4,875) Purchasing ........................................................................... (3,062) Other Private-Purpose Trust Funds:

Oakland Redevelopment Successor Agency Trust Fund .... (189,441) The deficit in the Lease Financing Debt Service Fund and JPFA Fund will be cured from the Landscape and Lighting Assessment District Fund receipts and JPFA Fund receipts in future years.

The City’s facilities, reproduction, central stores, and purchasing fund deficits are expected to be funded through increased user charges in future years. In addition, the City has allocated one-time funds to address these negative balances at various times over the past several years, which has reduced such balances over time. Negative fund balance repayments were deferred in fiscal year 2020-21 in response to a projected budget deficit arising from the COVID-19 pandemic but are scheduled to resume in fiscal year 2021-22.

At June 30, 2021, ORSA has a negative net position of $189.4 million. Under the former California Redevelopment Law, the Former Agency issued bonds or incurred long-term debt to finance its redevelopment projects by pledging future tax increment revenues. In general, ORSA’s revenues can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).

E. SUBSEQUENT EVENTS
Tax and Revenue Anticipation Notes Payable - On July 14, 2021, the City issued $124.1 million tax and revenue anticipation notes in advance of property tax collections. The notes were issued as a taxable series bearing an interest rate of 0.365 percent with a final maturity of June 30, 2022. The notes were issued to finance the prepayment of the City’s Employer Unfunded Actuarial Accrued Liability contribution to CalPERS for fiscal year 2021-22. The City received a 3.33 percent prepayment discount from CalPERS for pre-funding.

Oakland-Alameda County Coliseum Authority Refunding - The Coliseum Authority completed a current refunding of its outstanding Stadium Bonds on December 14, 2021 through the issuance of $23.9 million of Coliseum Authority Lease Revenue Notes, 2021 Refunding Series A (Stadium Notes), and the utilization of available revenue and reserve funds. As discussed in Note II, part I, Joint Venture, the City has recognized a liability for 50 percent of the Stadium Bonds and anticipates that the refunding will reduce its pledge obligation for the new Stadium Notes to $12.0 million in fiscal year 2021-22.
,

CITY OF OAKLAND
Notes to the Basic Financial Statements (continued)
Year Ended June 30, 2021
116

REQUIRED

SUPPLEMENTARY

INFORMATION
This page is intentionally left blank.

Fiscal Year 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 Measurement period 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 Total pension liability
Service cost $ — $ — $ — $ — $ — $ — $ —
Interest on the total pension
liability 36,078 37,621 44,320 44,932 42,480 41,263 42,333 Changes of assumptions — (1,475) 17,858 — 43,480 34,219 — Differences between expected
and actual experience (5,699) (7,915) (10,656) 3,028 6,978 (21,209) — Benefit payments, including
refunds of employee
contributions (54,619) (56,212) (55,999) (57,376) (58,441) (59,008) (57,409) Net change in total pension
liability (24,240) (27,981) (4,477) (9,416) 34,497 (4,735) (15,076) Total pension liability, beginning 628,211 656,192 660,669 670,085 635,588 640,323 655,399 Total pension liability, ending $ 603,971 $ 628,211 $ 656,192 $ 660,669 $ 670,085 $ 635,588 $ 640,323 Plan fiduciary net position
Contributions, employer $ 43,409 $ 44,821 $ 44,860 $ — $ — $ — $ — Contributions, employee — — — — — — 4
Net investment income 6,997 21,558 35,446 50,159 (1,419) 15,439 66,392 Administrative expenses (1,523) (1,446) (1,543) (1,261) (1,376) (985) (776) Claims and settlements — 14 9 70 3,593 — —
Benefit payments, including
refunds of employee
contributions (54,619) (56,212) (55,999) (57,376) (58,441) (59,008) (57,409) Net change in plan fiduciary net
position (5,736) 8,735 22,773 (8,408) (57,643) (44,554) 8,211 Plan fiduciary net position,
beginning 384,710 375,975 353,202 361,610 419,253 463,807 455,596 Plan fiduciary net position,
ending $ 378,974 $ 384,710 $ 375,975 $ 353,202 $ 361,610 $ 419,253 $ 463,807 Plan net pension liability $ 224,997 $ 243,501 $ 280,217 $ 307,467 $ 308,475 $ 216,335 $ 176,516 Plan fiduciary net position as a
percentage of the total pension
liability 62.7% 61.2% 57.3% 53.5% 54.0% 66.0% 72.4%
Covered payroll $ — $ — $ — $ — $ — $ — $ —
Plan net pension liability as a
percentage of covered payroll n/a n/a n/a n/a n/a n/a n/a Note to schedule:
*Fiscal year ended June 30, 2015 was the first year of implementation of GASB Statement No. 68, therefore only seven years of information is shown

CITY OF OAKLAND
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios – Police and Fire Retirement System
Last Seven Fiscal Years*
(In Thousands)
117
Fiscal year 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 Measurement period 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 Total pension liability
Service cost $ 46,683 $ 45,906 $ 43,908 $ 44,132 $ 37,856 $ 37,347 $ 37,135 Interest on the total pension
liability 200,794 194,753 185,097 181,418 177,626 172,693 166,822 Changes of assumptions — — (19,122) 140,332 — (39,092) — Differences between expected
and actual experience 637 54,499 (13,207) (8,109) (16,210) (7,769) — Benefit payments, including
refunds of employee
contributions (160,418) (153,985) (144,933) (138,379) (132,473) (126,730) (121,423) Net change in total pension
liability 87,696 141,173 51,743 219,394 66,799 36,449 82,534 Total pension liability, beginning 2,864,529 2,723,356 2,671,613 2,452,219 2,385,420 2,348,971 2,266,437 Total pension liability, ending $ 2,952,225 $ 2,864,529 $ 2,723,356 $ 2,671,613 $ 2,452,219 $ 2,385,420 $ 2,348,971 Plan fiduciary net position
Contributions, employer (1) $ 100,610 $ 78,370 $ 79,536 $ 75,893 $ 65,067 $ 63,531 $ 52,556 Contributions, employee 20,616 18,861 18,240 17,935 17,291 16,904 17,431 Plan to plan resource movement 1 107 548 135 — 24 — Net investment income 97,856 123,862 151,049 182,811 8,647 37,833 256,552 Administrative expenses (2,764) (1,344) (2,785) (2,438) (1,032) (1,919) — Benefit payments, including
refunds of employee
contributions (160,418) (153,985) (144,933) (138,379) (132,473) (126,730) (121,423) Other miscellaneous income/
(expense) (1) — 10,944 (5,289) — — — —
Net change in plan fiduciary net
position 55,901 76,815 96,366 135,957 (42,500) (10,357) 205,116 Plan fiduciary net position,
beginning 1,960,494 1,883,679 1,787,313 1,651,356 1,693,856 1,704,213 1,499,097 Plan fiduciary net position,
ending $ 2,016,395 $ 1,960,494 $ 1,883,679 $ 1,787,313 $ 1,651,356 $ 1,693,856 $ 1,704,213 Plan net pension liability $ 935,830 $ 904,035 $ 839,677 $ 884,300 $ 800,863 $ 691,564 $ 644,758 Plan fiduciary net position as a
percentage of the total pension
liability 68.3% 68.4% 69.2% 66.9% 67.3% 71.0% 72.6%
Covered payroll $ 246,215 $ 235,715 $ 226,157 $ 220,386 $ 206,595 $ 200,562 $ 188,886 Plan net pension liability as a
percentage of covered payroll 380.1% 383.5% 371.3% 401.3% 387.6% 344.8% 341.3% Note to schedule:

Benefit Changes - The figures above do not include any liability impact that may have resulted from plan changes which occurred after the valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).

Changes in assumptions - In FY 2016-17, the accounting discount rate was reduced from 7.65% to 7.15%. In 2015-16, there were no changes. In 2014-15, the amount reported reflects an adjustment of the discount rate from 7.50% (net of administrative expense) to 7.75% (without a reduction for pension plan administrative expense). In 2013-14, amounts were based on the 7.5% discount rate. (1) For measurement period 2018-19, employer contribution reported by CalPERS was $14 million lower than City reported contributions. This was due to a correction made in CalPERS system related to calculation of prior year contributions for PEPRA employees. $10.9 million of the variance was accounted for as “Other Miscellaneous Income” by CalPERS. The remaining variance was posted in CalPERS system in July 2019 and included in next fiscal year. For measurement period 2017-18, as a result of GASB Statement 75, CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California's agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75. * Fiscal year ended June 30, 2015 was the first year of implementation of GASB Statement No. 68, therefore only seven years of information is shown.

CITY OF OAKLAND
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios – CalPERS Miscellaneous Plan
Last Seven Fiscal Years*
(In Thousands)
118
Fiscal year 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 Measurement period 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 Total pension liability
Service cost $ 46,907 $ 44,360 $ 43,936 $ 43,687 $ 36,434 $ 32,899 $ 34,590 Interest on the total pension
liability 159,371 150,669 142,495 136,316 129,920 121,444 115,261 Changes of assumptions — — (6,416) 120,639 — (31,738) — Differences between expected
and actual experience 28,634 24,421 3,126 1,595 32,162 4,892 — Benefit payments, including
refunds of
employee contributions (106,609) (99,846) (93,628) (87,231) (80,752) (74,198) (68,751) Net change in total pension
liability 128,303 119,604 89,513 215,006 117,764 53,299 81,100 Total pension liability, beginning 2,230,185 2,110,581 2,021,068 1,806,062 1,688,298 1,634,999 1,553,899 Total pension liability, ending $ 2,358,488 $ 2,230,185 $ 2,110,581 $ 2,021,068 $ 1,806,062 $ 1,688,298 $ 1,634,999 Plan fiduciary net position
Contributions, employer (1) $ 72,015 $ 63,292 $ 55,633 $ 57,731 $ 47,172 $ 44,366 $ 37,007 Contributions, employee 20,559 20,070 19,188 18,432 16,221 15,027 14,598 Plan to plan resource movement (1) (107) (555) (92) — (24) — Net investment income 71,970 90,217 108,790 129,995 6,311 26,057 175,344 Administrative expenses (2,034) (978) (2,004) (1,726) (719) (1,337) — Benefit payments, including
refunds of
employee contributions (106,609) (99,846) (93,628) (87,232) (80,752) (74,198) (68,751) Other miscellaneous income/
(expense) (1) — 19 (3,806) — — — —
Net change in plan fiduciary net
position 55,900 72,667 83,618 117,108 (11,767) 9,891 158,198 Plan fiduciary net position,
beginning 1,442,454 1,369,787 1,286,169 1,169,061 1,180,828 1,170,937 1,012,739 Plan fiduciary net position,
ending $ 1,498,354 $ 1,442,454 $ 1,369,787 $ 1,286,169 $ 1,169,061 $ 1,180,828 $ 1,170,937 Plan net pension liability $ 860,134 $ 787,731 $ 740,794 $ 734,899 $ 637,001 $ 507,470 $ 464,062 Plan fiduciary net position as a
percentage of the total pension
liability 63.5% 64.7% 64.9% 63.6% 64.7% 69.9% 71.6%
Covered payroll $ 167,049 $ 156,372 $ 153,500 $ 148,995 $ 136,073 $ 119,980 $ 120,396 Plan net pension liability as a
percentage of covered payroll 514.9% 503.8% 482.6% 493.2% 468.1% 423.0% 385.4% Note to schedule:

Changes in assumptions - In FY 2016-17, the accounting discount rate was reduced from 7.65% to 7.15%. In 2015-16, there were no changes. In 2014-15, the amount reported reflects an adjustment of the discount rate from 7.50% (net of administrative expense) to 7.75% (without a reduction for pension plan administrative expense). In 2013-14, amounts were based on the 7.5% discount rate. (1) For measurement period 2018-19, employer contribution reported by CalPERS was $6.2 million lower than City reported contributions. This was due to a correction made in CalPERS system related to calculation of prior year contributions for PEPRA employees. $18,886 of the variance was accounted for as “Other Miscellaneous Income” by CalPERS. The remaining variance was posted in CalPERS system in July 2019 and included in next fiscal year. For measurement period 2017-18, as a result of GASB Statement 75, CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California's agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75. * Fiscal year ended June 30, 2015 was the first year of implementation of GASB Statement No. 68, therefore only seven years of information is shown.

CITY OF OAKLAND
Required Supplementary Information (Unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios – CalPERS Safety Plan
Last Seven Fiscal Years*
(In Thousands)
119
Oakland Police and Fire Retirement System
Fiscal year ended June 30 2021 2020 2019 2018 2017 2016 2015 2014 Actuarially determined
contributions (ADC) $ 43,648 $ 43,409 $ 44,821 $ 44,860 $ — $ — $ — $ 20,300 Contributions in relation to the
ADC (43,648) (43,409) (44,821) (44,860) — — — — Contribution deficiency
(excess) $ — $ — $ — $ — $ — $ — $ — $ 20,300
Covered payroll $ — $ — $ — $ — $ — $ — $ — $ —
Contributions as a percentage of
covered payroll n/a n/a n/a n/a n/a n/a n/a n/a
* Although actuarial valuations were performed as of June 30, 2014, 2015, and 2016, no ADC was determined for FY 2015, 2016, and 2017 based on the City's funding policy.

The actuarial methods and assumptions used to set the actuarially determined contributions were as follows:

Actuarial valuation date July 1, 2019 July 1, 2017
Actuarial cost method Entry-Age Normal Cost Method Entry-Age Normal Cost Method Asset valuation method Recognizes 20% difference between market value and expected actuarial
value each year, with a corridor of 10%
around market value.

Recognized 20% difference between
market value and expected actuarial
value each year, with a corridor of 10%
around market value.

Amortization method Level dollar closed (7 years remaining as of 7/1/2019)
Level dollar closed (9 years remaining as
of 7/1/2017)
Inflation 2.75% (U.S) to 2.85% (Bay Area) 2.75% (U.S) to 2.85% (Bay Area) Discount rate 5.37% 5.50%
Projected benefit increases: Following expiration of current MOUs (6/30/19 for Police, 10/31/17 for Fire):

Following expiration of current MOUs
(6/30/19 for Police, 10/31/17 for Fire):

Police 2.50% increase at January 1, 2019 and
July 1, 2020, 3.00% at July 1, 2021,

3.50% at July 1, 2022 and July 1, 2023,
then 3.25% (2.85% inflation plus 0.40%
productivity increase) per year

2.50 and 1.00% increase at January 1,
2018, 2.00% on July 1, 2018 and 2.50%
at January 1, 2019, then 3.25% per year
Fire 1% at November 1, 2018 and January 1,
2019, 2% at November 1, 2019, 3.25%
(2.85% inflation plus 0.40% productivity
increase) annual increase starting July 1,
2020

3.25% (2.85% inflation plus 0.40%
productivity increase) per year
Mortality (healthy) CalPERS Healthy Annuitant Table (from 2012-2015 Experience Study), projected
to improve with MP-2017 using 2014
base year
CalPERS Healthy Annuitant Table (from
2012-2015 Experience Study), projected
to improve with MP-2017 using 2014
base year
Mortality (disabled) CalPERS Industrial Disability Mortality Table (from 2012-2015 Experience
Study), projected to improve with
MP-2017 using 2014 base year
CalPERS Industrial Disability Mortality
Table (from 2012-2015 Experience
Study), projected to improve with
MP-2017 using 2014 base year
* Fiscal year ended June 30, 2015 was the first year of implementation of GASB Statement No. 68, therefore only eight years of information is shown.

CITY OF OAKLAND
Required Supplementary Information (Unaudited)
Schedule of Employer Pension Contributions –
Police and Fire Retirement System
Last Eight Fiscal Years*
(In Thousands)
120
Miscellaneous Plan - City
Fiscal year ended June 30 2021 2020 2019*** 2018 2017** 2016** 2015** 2014 Actuarially determined
contribution (ADC) $ 91,778 $ 82,284 $ 70,598 $ 60,283 $ 56,987 $ 47,934 $ 44,733 $ 52,556 Contributions in relation
to the ADC (91,778) (82,284) (70,598) (60,283) (56,987) (49,078) (48,796) (52,556) Contribution deficiency
(excess) $ — $ — $ — $ — $ — $ (1,144) $ (4,063) $ —
Covered payroll $ 207,115 $ 196,495 $ 177,611 $ 171,344 $ 166,272 $ 153,195 $ 150,469 $ 188,886 Contributions as a
percentage of covered
payroll 44.3 % 41.9 % 39.7 % 35.2 % 34.3 % 32.0 % 32.4 % 27.8 % Safety Plan
Fiscal year ended June 30 2021 2020 2019**** 2018 2017 2016** 2015** 2014 Actuarially determined
contribution (ADC) $ 86,687 $ 78,647 $ 69,447 $ 55,633 $ 57,731 $ 46,611 $ 43,747 $ 37,007 Contributions in relation
to the ADC (86,687) (78,647) (69,447) (55,633) (57,731) (47,173) (44,366) (37,007) Contribution deficiency
(excess) $ — $ — $ — $ — $ — $ (562) $ (619) $ —
Covered payroll $ 171,170 $ 167,595 $ 156,372 $ 153,500 $ 148,995 $ 136,073 $ 119,980 $ 120,396 Contributions as a
percentage of covered
payroll 50.6 % 46.9 % 44.4 % 36.2 % 38.7 % 34.7 % 37.0 % 30.7 % Miscellaneous Plan -
Port
Fiscal year ended June 30 2021 2020 2019*** 2018 2017** 2016** 2015** 2014 Actuarially determined
contribution (ADC) $ 25,787 $ 24,588 $ 21,832 $ 19,253 $ 18,906 $ 15,989 $ 14,735 n/a Contributions in relation
to the ADC (25,787) (24,588) (21,832) (19,253) (18,906) (15,989) (14,735) n/a Contribution deficiency
(excess) $ — $ — $ — $ — $ — $ — $ — n/a
Covered payroll $ 58,496 $ 61,374 $ 58,104 $ 54,813 $ 54,114 $ 53,400 $ 50,093 n/a Contributions as a
percentage of covered
payroll 44.1 % 40.1 % 37.6 % 35.1 % 34.9 % 29.9 % 29.4 % n/a * Fiscal year ended June 30, 2015 was the first year of implementation of GASB Statement No. 68, therefore only eight years of information is shown. ** In prior fiscal years, the contributions in relation to the actuarially determined contributions were based on estimates. The City adjusted the amounts to align the estimated employer contributions with the actual employer contributions per the 2018 agent-multiple employer CalPERS report for the CalPERS Miscellaneous Plan and the Safety Plan.
*** For measurement period 2018-19, employer contribution reported by CalPERS was $14 million lower than City reported contributions. This was due to a correction made in CalPERS system related to calculation of prior year contributions for PEPRA employees. $10.9 million of the variance was accounted for as “Other Miscellaneous Income” by CalPERS. The remaining variance was posted in CalPERS system in July 2019 and included in next fiscal year.
**** For measurement period 2018-19, employer contribution reported by CalPERS was $6.2 million lower than City reported contributions. This was due to a correction made in CalPERS system related to calculation of prior year contributions for PEPRA employees. $18,886 of the variance was accounted for as “Other Miscellaneous Income” by CalPERS. The remaining variance was posted in CalPERS system in July 2019 and included in next fiscal year.

CITY OF OAKLAND
Required Supplementary Information (Unaudited)
Schedule of Employer Pension Contributions – CalPERS Plans Last Eight Fiscal Years*
(In Thousands)
121
Methods and assumptions used to determine the last 8 years contribution rates to CalPERS plans ADC for fiscal year June 30, 2021, 2020, 2019, 2018, 2017, 2016, 2015, 2014 Actuarial valuation date June 30, 2018, 2017, 2016, 2015, 2014, 2013, 2012, 2011 Actuarial cost method Entry-Age Normal Cost Method
Asset valuation method In fiscal year 2014, 2015 and 2016, the actuarial value of assets was used. In fiscal year 2017, 2018, 2019 and 2020, the market value of assets was used.

Inflation In fiscal year 2020, 2.625% compounded annually. In fiscal years 2015-2019, 2.75% compounded annually.

Salary increases Varies by entry age and services
Payroll growth In fiscal year 2020, 2.875% compounded annually. In fiscal years 2015 - 2019, 3% compounded annually.

Investment rate of return
In fiscal year 2020, 7.375%, net of administrative expenses, including inflation. In fiscal year 2019, 7.35%, net of administrative expenses, including inflation. In fiscal year 2018 through 2015, 7.50%, net of administrative expenses, including inflation.

Retirement age In fiscal year 2019 through 2017, the probabilities of retirement are based on the 2014 CalPERS Experience Study for the period 1997 to 2011. In fiscal year 2016 and 2015, the probabilities of retirement are based on the 2010 CalPERS Experience Study for the period 1997 to 2007.

Mortality In fiscal year 2020, post-retirement mortality rates included 15 years of projected ongoing mortality improvement 90% of Scale MP-2016 published by the Society of Actuaries. In fiscal year 2019 through 2017, the probabilities of retirement are based on the 2014 CalPERS Experience Study for the period 1997 to 2011. Pre-retirement and Post-retirement mortality rates include 20 years of projected mortality improvement using Scale BB published by the Society of Actuaries. In fiscal year 2016 and 2015, the probabilities of retirement are based on the 2010 CalPERS Experience Study for the period 1997 to 2007. Pre-retirement and Post-retirement mortality rates include 5 years of projected mortality improvement using Scale AA published by the Society of Actuaries.

CITY OF OAKLAND
Required Supplementary Information (Unaudited)
Schedule of Employer Pension Contributions – CalPERS Plans Last Eight Fiscal Years*
(In Thousands)
122

Fiscal Year 2020-21 2019-20 2018-19 2017-18*
Measurement period 2019-20 2018-19 2017-18 2016-17
Total OPEB liability
Service cost $ 24,307 $ 37,585 $ 38,477 $ 50,972
Interest (includes interest on service
cost) 27,522 32,591 30,078 32,415
Changes of assumptions 222,308 (139,063) (38,298) (294,914) Changes of benefits — (147,572) — —
Differences between expected and
actual experience — 14,923 — (10,799)
Benefit payments (28,917) (29,130) (27,481) (20,424) Net change in total OPEB liability 245,220 (230,666) 2,776 (242,750) Total OPEB liability, beginning 625,906 856,572 853,796 1,096,546 Total OPEB liability, ending $ 871,126 $ 625,906 $ 856,572 $ 853,796 Plan fiduciary net position
Contributions, employer $ 28,917 $ 39,130 $ 38,147 $ 20,424 Net investment income 967 1,420 945 414
Administrative expenses (14) (12) (7) (2)
Benefit payments (28,917) (29,130) (27,481) (20,424) Net change in plan fiduciary net position 953 11,408 11,604 412 Plan fiduciary net position, beginning 27,337 15,929 4,325 3,913 Plan fiduciary net position, ending $ 28,290 $ 27,337 $ 15,929 $ 4,325 Plan net OPEB liability $ 842,836 $ 598,569 $ 840,643 $ 849,471 Plan fiduciary net position as a percentage
of the total OPEB liability 3.2 % 4.4 % 1.9 % 0.5 % Covered payroll $ 383,674 $ 373,405 $ 369,316 $ 360,309 Plan net OPEB liability as a percentage of
covered payroll 219.7 % 160.3 % 227.6 % 235.8 %
* Fiscal year ended June 30, 2018 was the first year of implementation of GASB Statement No. 75, therefore only four years of information is shown.

CITY OF OAKLAND
Required Supplementary Information (Unaudited)
Schedule of Changes in Net OPEB Liability and Related Ratios - City Retiree Health Plan
Last Four Fiscal Years*
(In Thousands)
123
Fiscal Year 2020-21 2019-20 2018-19 2017-18*
Measurement period 2019-20 2018-19 2017-18 2016-17
Total OPEB liability
Service cost $ 4,416 $ 4,621 $ 4,329 $ 4,055
Interest (includes interest on service
cost) 11,793 11,995 11,521 11,089
Changes of assumptions (896) (6,179) — —
Differences between expected and
actual experience — (3,665) — —
Benefit payments (9,941) (9,193) (9,045) (9,000)
Net change in total OPEB liability 5,372 (2,421) 6,805 6,144 Total OPEB liability, beginning 175,182 177,603 170,798 164,654 Total OPEB liability, ending $ 180,554 $ 175,182 $ 177,603 $ 170,798 Plan fiduciary net position
Contributions, employer $ 14,141 $ 14,693 $ 14,545 $ 15,400 Net investment income 3,143 4,821 5,351 5,773
Administrative expenses (44) (38) (35) (22)
Benefit payments (9,941) (9,193) (9,045) (9,000)
Net change in plan fiduciary net
position 7,299 10,283 10,816 12,151
Plan fiduciary net position, beginning 88,020 77,737 66,921 54,770 Plan fiduciary net position, ending $ 95,319 $ 88,020 $ 77,737 $ 66,921 Plan net OPEB liability $ 85,235 $ 87,162 $ 99,866 $ 103,877 Plan fiduciary net position as a
percentage of the total OPEB liability 52.8 % 50.2 % 43.8 % 39.2 % Covered payroll $ 66,473 $ 63,359 $ 61,326 $ 58,516
Plan net OPEB liability as a
percentage of covered payroll 128.2 % 137.6 % 162.8 % 177.5 % * Fiscal year ended June 30, 2018 was the first year of implementation of GASB Statement No. 75, therefore only four years of information is shown.

CITY OF OAKLAND
Required Supplementary Information (Unaudited)
Schedule of Changes in Net OPEB Liability and Related Ratios - Port Retiree Health Plan
Last Four Fiscal Years*
(In Thousands)
124
Fiscal year ended June 30 2021 2020 2019 2018 *
Actuarially determined
contribution (ADC) $ 52,755 $ 50,660 $ 75,069 $ 72,480
Contributions in relation to the
ADC (29,517) (28,917) (39,130) (37,225)
Contribution deficiency $ 23,238 $ 21,743 $ 35,939 $ 35,255 Covered payroll $ 394,225 $ 383,674 $ 373,405 $ 369,316 Contributions as a percentage of
covered payroll 7.49 % 7.74 % 10.60 % 10.33 %
The actuarial methods and assumptions used to set the actuarially determined contributions were as follows:

Actuarial valuation date July 1, 2019 July 1, 2017
Actuarial cost method Entry-Age Normal Cost Method Entry-Age Normal Cost Method Asset valuation method Market value Market value
Amortization method
Level percentage of pay, closed period
as of FY 2020
Level percentage of pay, open period,
30 years
Inflation 2.50% 2.50%
Discount rate 4.50% 3.58%
Investment Rate of Return 7.59% 7.28%
Rate of salary increase 2.75% 2.50%
Ultimate rate of medical
inflation 3.50% 3.50%
Years to ultimate rate of
medical inflation 20 years 20 years
Rates of mortality
Based on the 2017 CalPERS
Experience Study from 1997 to 2015
Based on the 2017 CalPERS
Experience Study from 1997 to 2015
Postretirement benefit increase
Police - 2.5% and 1% increases at
January 1, 2018; 2% on July 1, 2018;

2.5% at January 1, 2019; then 3.25%
Fire - 3.25%
Police - 2.5% and 1% increases at
January 1, 2018; 2% on July 1, 2018;

2.5% at January 1, 2019; then 3.25%
Fire - 3.25%
* Fiscal year ended June 30, 2018 was the first year of implementation of GASB Statement No. 75, therefore only four years of information is shown.

CITY OF OAKLAND
Required Supplementary Information (Unaudited)
Schedule of Employer OPEB Contributions -
City Retiree Health Plan
Last Four Fiscal Years
(In Thousands)
125
Fiscal year ended June 30 2021 2020 2019 2018 *
Actuarially determined contribution (ADC) $ 12,350 $ 12,149 $ 13,310 $ 13,203 Contributions in relation to the ADC (14,418) (14,145) (14,894) (14,732) Contribution deficiency (excess) $ (2,068) $ (1,996) $ (1,584) $ (1,529) Covered payroll $ 61,112 $ 66,473 $ 63,359 $ 61,326
Contributions as a percentage of covered payroll 23.6 % 21.3 % 23.5 % 24.0 % The actuarial methods and assumptions used to set the actuarially determined contributions were as follows:

ADC for fiscal year June 30, 2018, 2019, 2020, 2021
Actuarial valuation date June 30, 2017 and 2019
Actuarial cost method Entry-Age Normal
Asset valuation method Market Value of Assets
Amortization method/period 30-year dollar amount on a "closed" basis Inflation 2.50%
Payroll growth 3% per annum
Investment rate of return 6.75% net of investment expense Healthcare Cost Trend Rates
For fiscal years 2021 and 2020, 3.25%-6.00% per year increase for medical, 3.0% per year increase for vision and dental, and

4.25%-6.00% per year increase for Medicare Part B. For fiscal years 2019 and 2018, 3.50-6.25% per year increase for medical,

4.0% per year increase for vision and dental, and 0.0%-5.5% per year increase for Medicare Part B
Retirement Age and Mortality
For fiscal years 2021 and 2020, based upon the CalPERs
valuation experience study. CalPERs mortality rates include 15 years of projected on-going improvement using 90 percent of Scale MP-2016. For fiscal years 2019 and 2018, based upon the CalPERs valuation experience study. CalPERs mortality rates include 15 years of projected on-going improvement using 90 percent of Scale MP- 2016.
* Fiscal year ended June 30, 2018 was the first year of implementation of GASB Statement No. 75, therefore only four years of information is shown.

CITY OF OAKLAND
Required Supplementary Information (Unaudited)
Schedule of Employer OPEB Contributions -
Port Retiree Health Plan
Last Four Fiscal Years
(In Thousands)
126
Original Budget Final Budget
Actual Budgetary
Basis
Variance Positive
(Negative)

REVENUES
Taxes:

Property $ 359,538 $ 359,538 $ 377,175 $ 17,637
Sales and use 52,551 52,551 57,825 5,274
Motor vehicle in-lieu — — 318 318
Local taxes:

Business license 88,000 88,000 104,232 16,232
Utility consumption 52,000 52,000 51,801 (199)
Real estate transfer 89,062 93,332 113,359 20,027
Transient occupancy 15,908 8,248 10,610 2,362
Parking 8,854 4,494 6,264 1,770
Voter-approved special tax 10,000 10,000 8,155 (1,845) Franchise 20,385 20,385 19,679 (706)
License and permits 1,683 1,683 1,243 (440)
Fines and penalties 17,966 13,666 17,591 3,925
Interest and investment income (loss) 516 516 (7,860) (8,376) Charges for services 99,615 90,325 83,173 (7,152)
Federal and state grants and subventions 5,075 8,065 4,983 (3,082) Annuity income 5,337 5,337 4,757 (580)
Other 1,979 12,702 33,553 20,851
TOTAL REVENUES 828,469 820,842 886,858 66,016

EXPENDITURES
Current:

General government
Mayor 3,851 3,881 3,089 792
Council 6,245 6,468 6,084 384
City Administrator 13,340 14,266 13,658 608
City Attorney 14,695 17,380 15,365 2,015
City Auditor 2,440 2,475 2,261 214
City Clerk 5,057 6,282 6,237 45
Public Ethics Commission 1,305 1,370 1,348 22
Human Resources Management 8,970 9,921 8,769 1,152
Financial Services 29,373 31,016 29,710 1,306
Information Technology 10,797 12,264 13,607 (1,343) Race and Equity Department 830 867 742 125
Workplace & Employment Standards 3,439 3,888 3,325 563 Other 51,662 63,327 79,858 (16,531)
Public safety
Police Department 300,003 314,520 285,742 28,778
Fire Department 168,496 174,089 157,962 16,127
Police Commission 4,552 4,617 3,018 1,599
Community and human services
Parks and Recreation 26,827 27,892 20,019 7,873
Library 11,608 13,217 11,642 1,575
Department of Violence Prevention 3,283 3,007 1,223 1,784 Human Services Department 10,343 18,130 13,722 4,408 Animal Services — — 7 (7)
Community and economic development
Planning and Building 81 206 (1,142) 1,348
Economic & Workforce Development 6,863 10,069 6,870 3,199 Housing & Community Development 18,535 37,510 9,950 27,560 Public works and transportation
Public Works 31,736 36,345 28,664 7,681
Department of Transportation 6,897 8,372 7,508 864
Capital outlay 71 9,146 3,391 5,755
Debt service:

Principal repayment 440 440 440 —
Bond issuance cost — — — 137 (137)
Interest charges 36 36 784 (748)
TOTAL EXPENDITURES 741,775 831,001 733,990 97,011

EXCESS (DEFICIENCY ) OF REVENUES
OVER (UNDER) EXPENDITURES 86,694 (10,159) 152,868 163,027

OTHER FINANCING SOURCES (USES)
Insurance claims and settlements — 697 — (697)
Transfers in 53,999 111,236 10,182 (101,054)
Transfers out (157,689) (177,657) (103,715) 73,942
TOTAL OTHER FINANCING SOURCES (USES) (103,690) (65,724) (93,533) (27,809) NET CHANGE IN FUND BALANCE (16,996) (75,883) 59,335 135,218 Fund balance - beginning 405,348 405,348 405,348 —
FUND BALANCE - ENDING $ 388,352 $ 329,465 $ 464,683 $ 135,218

CITY OF OAKLAND
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule – General Fund
Year Ended June 30, 2021
(In Thousands)
See notes to the required supplementary information.
127
Original
Budget
Final
Budget
Actual
Budgetary
Basis
Variance
Positive
(Negative)

REVENUES
Taxes:

Property $ 18,000 $ 18,000 $ 18,481 $ 481
Local taxes:

Transient occupancy 4,339 4,339 2,887 (1,452)
Parking 8,393 8,393 5,326 (3,067)
Voter-approved special tax 65,353 65,353 65,509 156 Licenses and permits 19,813 19,813 28,614 8,801
Fines and penalties 667 667 543 (124)
Interest and investment income (loss) 10 10 (176) (186) Charges for services 41,275 41,275 34,767 (6,508)
Federal and state grants and subventions 513 1,287 2,922 1,635 Other 346 471 4,666 4,195
TOTAL REVENUES 158,709 159,608 163,539 3,931

EXPENDITURES
Current:

General government
Mayor 301 301 356 (55)
City Administrator 2,916 3,647 3,042 605
City Clerk 1,200 873 873 —
City Attorney 4,284 4,381 4,173 208
Human Resources Management 700 700 770 (70)
Financial Services 2,949 3,148 3,541 (393)
Information Technology 2,099 2,099 1,751 348
Other 4,611 7,593 2,955 4,638
Public safety
Police Department 16,054 15,862 17,336 (1,474)
Fire Department 6,631 9,358 6,607 2,751
Community and human services
Parks and Recreation — 447 54 393
Library 31,846 31,696 25,822 5,874
Department of Violence Prevention 9,533 13,689 10,435 3,254 Human Services Department 25,826 39,270 25,922 13,348 Community and economic development
Planning and Building 42,350 85,021 37,762 47,259
Economic & Workforce Development 730 1,055 730 325
Housing & Community Development 7,380 9,088 6,535 2,553 Public works and transportation
Public Works 18,977 20,935 11,599 9,336
Department of Transportation 11,535 15,890 6,900 8,990 Capital outlay 4,510 9,561 1,921 7,640
TOTAL EXPENDITURES 194,432 274,614 169,084 105,530

EXCESS (DEFICIENCY) OF REVENUE OVER (UNDER)
EXPENDITURES (35,723) (115,006) (5,545) 109,461

OTHER FINANCING SOURCES (USES)
Insurance claims and settlements — — 64 64
Transfers in 19,361 20,679 20,660 (19)
Transfers out (2,279) (3,637) (1,539) 2,098
TOTAL OTHER FINANCING SOURCES (USES) 17,082 17,042 19,185 2,143 NET CHANGE IN FUND BALANCE (18,641) (97,964) 13,640 111,604 Fund balance - beginning 191,671 191,671 191,671 —
FUND BALANCE - ENDING $ 173,030 $ 93,707 $ 205,311 $ 111,604

CITY OF OAKLAND
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule – Other Special Revenue Fund Year Ended June 30, 2021
(In Thousands)
See notes to the required supplementary information.
128
(1) BUDGETARY DATA
In accordance with the provisions of the City Charter, the City prepares and adopts a budget on or before June 30 for each fiscal year. The City Charter prohibits expending funds for which there is no legal appropriation. Therefore, the City is required to adopt budgets for all City funds.

Prior to July 1, the original adopted budget is finalized through the passage of a resolution by the City Council. The level of legal budgetary control by the City Council is established at the fund level. For management purposes, the budget is controlled at the departmental level of expenditure within funds.

In June 2019, the City Council approved the City’s two-year budget for fiscal years 2020 and 2021. Although appropriations are adopted for a 24-month period, they are divided into two one- year spending plans. The final budgetary data presented in the required supplementary information reflects approved changes to the original 2019-21 budget. Certain projects are appropriated on a multi-year rather than annual basis. If such projects or programs are not completed at the end of the fiscal year, unexpended appropriations may be carried forward to the following year with the approval of the City Administrator pursuant to the City’s Consolidated Fiscal Policy.

Transfers of appropriations between funds and supplemental appropriations financed by unanticipated revenues must be approved by the City Council. Transfers of appropriations between projects within the same fund must be approved by the City Administrator. Final budget amounts reported in the required supplementary information reflect both the appropriation changes approved by the City Council and the transfers approved by the City Administrator.

Budgetary Basis of Accounting
The City adopts budgets each fiscal year on a basis of accounting which is substantially the same as accounting principles generally accepted in the United States of America (GAAP) except for certain investment earnings.

Certain funds of the City contain capital projects, grant projects, loan programs or other programs that are budgeted on a multi-year basis. The amounts of the projects and programs budgeted on a multiyear basis are significant compared to the items budgeted on an annual basis; therefore, a comparison of budget to actual for the fund would not be meaningful. As a result, such funds that are excluded from budgetary reporting are:
• Federal/State Grant Fund
• Low and Moderate Income Housing Asset Fund
• Municipal Capital Improvement Fund
While the City adopts budgets for all funds, the budgets to actual comparisons for proprietary and fiduciary funds are not presented because some projects and programs are adopted on a multi- year basis.

CITY OF OAKLAND
Notes to Required Supplementary Information
For the Year Ended June 30, 2021
129
(2) RECONCILIATION OF OPERATIONS ON MODIFIED ACCRUAL BASIS TO

BUDGETARY BASIS
The governmental fund financial statements have been prepared on the modified accrual basis of accounting in accordance with GAAP. The “Budgetary Comparison Schedule – General Fund” has been prepared on a budgetary basis, which is different from GAAP.

The budgetary process is based upon accounting for certain transactions on a basis other than GAAP. The results of operations are presented in the budget to actual comparison schedule in accordance with the budgetary process (Budgetary Basis) to provide a meaningful comparison with the budget.

The main difference between actual amounts on a budgetary basis and a GAAP basis is due to timing.

In October 2001, the City entered into a debt service deposit agreement with a third party whereby the City received approximately $9.6 million in exchange for forgoing its right to receive investment earnings on the amounts deposited with the trustee in advance of the date that the related debt was due to the bondholders. The compensation to the City was recorded as revenue in fiscal year 2002 when received on a budgetary basis. On a GAAP basis, the revenue was deferred and is being recognized over the 21-year life of the agreement. Amortization for the year ended June 30, 2021, was $0.4 million.

The following schedule is a reconciliation of the GAAP and budgetary results of operations (in thousands):

General Fund
Net change in fund balance - GAAP basis $ 59,698
Amortization of debt service deposit agreement (363)
Net change in fund balance - Budgetary basis $ 59,335

The general fund’s fund balance on a GAAP Basis is reconciled to a Budgetary Basis as of June 30, 2021, which is as follows (in thousands):

General Fund
Fund balance - GAAP basis $ 463,966
Unamortized debt service deposit agreement 717
Fund balance - Budgetary basis $ 464,683

CITY OF OAKLAND
Notes to Required Supplementary Information
For the Year Ended June 30, 2021
130

COMBINING FINANCIAL

STATEMENTS AND

SCHEDULES
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Special
Revenue
Funds
Debt
Service
Funds Total
ASSETS
Cash and investments $ 40,851 $ 20,639 $ 61,490
Receivable, net:

Accrued interest 19 9 28
Property taxes 1,838 762 2,600
Accounts receivable 7,947 — 7,947
Grants receivable 799 — 799
Due from component units 644 — 644
Restricted cash and investments 159 3,325 3,484
Other assets 45 — 45
TOTAL ASSETS $ 52,302 $ 24,735 $ 77,037

LIABILITIES
Accounts payable and accrued liabilities $ 3,574 $ 7 $ 3,581 Due to other funds — 1,414 1,414
Other 2,211 — 2,211
TOTAL LIABILITIES 5,785 1,421 7,206

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 1,929 275 2,204

FUND BALANCES
Nonspendable 45 — 45
Restricted 37,045 23,974 61,019
Committed 1,765 — 1,765
Assigned 5,733 — 5,733
Unassigned — (935) (935)
TOTAL FUND BALANCES 44,588 23,039 67,627

TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES $ 52,302 $ 24,735 $ 77,037

CITY OF OAKLAND
Combining Balance Sheet
Other Governmental Funds - Special Revenue and Debt Service Funds June 30, 2021
(In Thousands)
131
Special Revenue
Funds
Debt Service
Funds Total

REVENUES
Taxes:

Property $ 152 $ 35,471 $ 35,623
Sales and use 31,063 — 31,063
Gas 17,322 — 17,322
Voter-approved special tax 19,487 — 19,487
Licenses and permits 132 — 132
Fines and penalities 585 116 701
Interest and investment income (loss) 29 (5) 24
Charges for services 111 — 111
Federal and state grants and subventions 11,624 192 11,816 Other 1,788 522 2,310
TOTAL REVENUES 82,293 36,296 118,589

EXPENDITURES
Current:

General government 2,489 72 2,561
Public safety 479 — 479
Community and human services 6,259 — 6,259
Community and economic development 96 — 96
Public works and transportation 47,166 — 47,166
Capital outlay 4,694 — 4,694
Debt service:

Principal repayment 4,251 53,807 58,058
Bond issuance cost 4 4
Interest charges — 61,806 61,806
TOTAL EXPENDITURES 65,434 115,689 181,123

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES 16,859 (79,393) (62,534)

OTHER FINANCING SOURCES (USES)
Transfers in 327 78,404 78,731
Transfers out (2,314) — (2,314)
TOTAL OTHER FINANCING SOURCES (USES) (1,987) 78,404 76,417 NET CHANGE IN FUND BALANCES 14,872 (989) 13,883
Fund balances - beginning, as previously reported 27,592 24,028 51,620 Cumulative effect of accounting change 2,124 — 2,124 Fund balances - beginning, as restated 29,716 24,028 $ 53,744 FUND BALANCES - ENDING $ 44,588 $ 23,039 $ 67,627

CITY OF OAKLAND
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Other Governmental Funds – Special Revenue and Debt Service Funds Year Ended June 30, 2021
(In Thousands)
132

OTHER GOVERNMENTAL FUNDS-

SPECIAL REVENUE FUNDS
Special revenue funds account for certain revenue sources that are legally restricted or committed to be spent for specified purposes. Other restricted sources are accounted for in fiduciary, debt service, and capital projects funds.

Traffic Safety and Control Fund accounts for monies received from sales and use taxes and grants which are expended or disbursed for purposes immediately connected with traffic safety and control.

State Gas Tax Fund accounts for the subventions received from state gas taxes under the provision of the Streets and Highways Code. State gas taxes are restricted to uses related to local streets and highways and include acquisitions of real property, construction and improvements, and repairs and maintenance of streets and highways.

The Landscape and Lighting Assessment District Fund is an assessment district fund that is used to account for monies restricted to installing, maintaining and servicing public lighting, landscaping and park facilities.

Assessment Districts Fund accounts for monies restricted to specific improvements that beneficially affect a well defined and limited area of land.

Parks, Recreation, Cultural, and Police Fund accounts for monies held for the general betterment and beautification of City parks, recreation centers, the Oakland Public Museum, and the Oakland Public Library, as well as assets of the Police Department committed for specified purposes.

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Traffic
Safety &
Control
State Gas
Tax
Landscape
and
Lighting
Assessment
District
Assessment
Districts
Parks,
Recreation,
Cultural,
and Police Total
ASSETS
Cash and investments $ 24,063 $ 4,074 $ 813 $ 2,774 $ 9,127 $ 40,851 Receivable, net:

Accrued interest 11 2 — 1 5 19
Property taxes — — 1,591 43 204 1,838
Accounts receivable 6,851 780 287 22 7 7,947
Grants receivable 799 — — — — 799
Due from component units — — 644 — — 644
Restricted cash and investments — — 159 — — 159
Other assets 45 — — — — 45
TOTAL ASSETS $ 31,769 $ 4,856 $ 3,494 $ 2,840 $ 9,343 $ 52,302

LIABILITIES
Accounts payable and accrued
liabilities $ 1,654 $ 266 $ 639 $ 21 $ 994 $ 3,574
Other — — — 49 2,162 2,211
TOTAL LIABILITIES 1,654 266 639 70 3,156 5,785

DEFERRED INFLOWS OF

RESOURCES
Unavailable revenue 344 — 1,393 41 151 1,929

FUND BALANCES
Nonspendable 45 — — — — 45
Restricted 29,726 4,590 — 2,729 — 37,045
Committed — — — — 1,765 1,765
Assigned — — 1,462 — 4,271 5,733
TOTAL FUND BALANCES 29,771 4,590 1,462 2,729 6,036 44,588

TOTAL LIABILITIES,

DEFERRED INFLOWS OF

RESOURCES AND FUND
BALANCES $ 31,769 $ 4,856 $ 3,494 $ 2,840 $ 9,343 $ 52,302

CITY OF OAKLAND
Combining Balance Sheet
Other Governmental Funds – Special Revenue Funds
June 30, 2021
(In Thousands)
133
Traffic
Safety &
Control
State Gas
Tax
Landscape
and Lighting
Assessment
District
Assessment
Districts
Parks,
Recreation,
Cultural,
and Police Total

REVENUES
Taxes:

Property tax $ — $ — $ — $ 152 $ — $ 152
Sales and use 31,063 — — — — 31,063
Gas — 17,322 — — — 17,322
Voter-approved special tax — — 19,294 193 — 19,487 Licenses and permits — — 132 — — 132
Fines and penalties 585 — — — — 585
Interest and investment income (loss) 43 (6) 4 (3) (9) 29 Charges for services 109 — 2 — — 111
Federal and state grants and subventions 10,978 — 159 — 487 11,624 Other 1,752 5 10 5 16 1,788
TOTAL REVENUES 44,530 17,321 19,601 347 494 82,293

EXPENDITURES
Current:

General government 2,436 128 (103) 4 24 2,489
Public safety 133 — — 233 113 479
Community and human services 2,220 — 3,890 — 149 6,259 Community and economic development — — 2 — 94 96
Public works and transportation 17,060 17,455 12,105 525 21 47,166 Capital outlay 3,316 879 334 — 165 4,694
Debt service:

Principal repayment 4,251 — — — — 4,251
Interest charges — — — — — —
TOTAL EXPENDITURES 29,416 18,462 16,228 762 566 65,434

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 15,114 (1,141) 3,373 (415) (72) 16,859

OTHER FINANCING SOURCES (USES)
Transfers in 327 — — — — 327
Transfers out — — (2,314) — — (2,314)

TOTAL OTHER FINANCING
SOURCES (USES) 327 — (2,314) — — (1,987)
NET CHANGE IN FUND BALANCES 15,441 (1,141) 1,059 (415) (72) 14,872 Fund balances - beginning, as previously
reported 14,330 5,731 403 3,144 3,984 27,592
Cumulative effect of accounting change — — — — 2,124 2,124 Fund balances - beginning, as restated 14,330 5,731 403 3,144 6,108 29,716 FUND BALANCES - ENDING $ 29,771 $ 4,590 $ 1,462 $ 2,729 $ 6,036 $ 44,588

CITY OF OAKLAND
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Other Governmental Funds – Special Revenue Funds
Year Ended June 30, 2021
(In Thousands)
134
Traffic Safety & Control State Gas Tax
Original
Budget
Final
Budget
Actual
Budgetary
Basis
Variance
Positive
(Negative)
Original
Budget
Final
Budget
Actual
Budgetary
Basis
Variance
Positive
(Negative)

REVENUES
Sales and use tax $ 25,797 $ 25,797 $ 31,063 $ 5,266 $ — $ — $ — $ — Gas tax — — — — 17,400 17,400 17,322 (78)
Fines and penalties 770 770 585 (185) — — — —
Interest and investment income (loss) — — 43 43 — — (6) (6) Charges for services 115 115 109 (6) 7 7 — (7)
Federal and state grants and subventions 6,095 10,395 10,978 583 138 138 — (138) Other — 234 1,752 1,518 2 2 5 3
TOTAL REVENUES 32,777 37,311 44,530 7,219 17,547 17,547 17,321 (226)

EXPENDITURES
Current:

General government
Mayor 226 226 202 24 — — — —
City Administrator — — — — 136 145 128 17
City Attorney 41 41 45 (4) — — — —
Other 1,506 7,814 2,098 5,716 — 603 — 603
Financial Services 85 85 91 (6) — — — —
Public safety — —
Police Department 203 203 133 70 — — — —
Community and human services — —
Human Services Department 2,436 4,232 2,220 2,012 — — — — Community and economic development — —
Economic & Workforce Development — — — — — — — — Public works and transportation — —
Public Works 958 1,455 1,265 190 — 3 — 3
Department of Transportation 18,458 22,738 15,795 6,943 17,259 18,044 17,455 589 Capital outlay 6,484 20,862 3,316 17,546 540 2,637 879 1,758 Debt service:

Principal repayment 4,277 4,250 4,251 (1) — — — — Interest charges 27 27 — 27 — — — —
TOTAL EXPENDITURES 34,701 61,933 29,416 32,517 17,935 21,432 18,462 2,970

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES (1,924) (24,622) 15,114 39,736 (388) (3,885) (1,141) 2,744

OTHER FINANCING SOURCES (USES)
Transfers in — — 327 327 — — — —
Transfers out (27) (27) — 27 — — — —

TOTAL OTHER FINANCING SOURCES
(USES) (27) (27) 327 354 — — — —
NET CHANGE IN FUND BALANCES (1,951) (24,649) 15,441 40,090 (388) (3,885) (1,141) 2,744 Fund balances - beginning 14,330 14,330 14,330 — 5,731 5,731 5,731 — FUND BALANCES (DEFICIT) - ENDING $ 12,379 $ (10,319) $ 29,771 $ 40,090 $ 5,343 $ 1,846 $ 4,590 $ 2,744

CITY OF OAKLAND
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Other Governmental Funds – Special Revenue Funds
Year Ended June 30, 2021
(In Thousands)
135
Landscape and Lighting Assessment District Assessment Districts Original
Budget
Final
Budget
Actual
Budgetary
Basis
Variance
Positive
(Negative)
Original
Budget
Final
Budget
Actual
Budgetary
Basis
Variance
Positive
(Negative)

REVENUES
Taxes:

Property tax $ — $ — $ — $ — $ — $ — $ 152 $ 152
Voter-approved special tax 19,156 19,156 19,294 138 146 146 193 47 Licenses and permits 52 52 132 80 — — — —
Interest and investment income (loss) — — 4 4 — — (3) (3) Charges for services 207 207 2 (205) — — — —
Federal and state grants and subventions — — 159 159 — — — — Other — — 10 10 3 3 5 2
TOTAL REVENUES 19,415 19,415 19,601 186 149 149 347 198

EXPENDITURES
Current:

General government 59 84 (103) 187 723 1,440 4 1,436 Public safety — — — — 3 316 233 83
Community and human services 3,896 3,896 3,890 6 140 140 — 140 Community and economic development 2 2 2 — — — — — Public works and transportation 12,946 13,048 12,105 943 1,655 2,780 525 2,255 Capital outlay — 345 334 11 — 6 — 6
TOTAL EXPENDITURES 16,903 17,375 16,228 1,147 2,521 4,682 762 3,920

EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES 2,512 2,040 3,373 1,333 (2,372) (4,533) (415) 4,118

OTHER FINANCING SOURCES (USES)
Transfers in — — — — — — — —
Transfers out (2,511) (2,511) (2,314) 197 — — — —

TOTAL OTHER FINANCING SOURCES
(USES) (2,511) (2,511) (2,314) 197 — — — —
NET CHANGE IN FUND BALANCES 1 (471) 1,059 1,530 (2,372) (4,533) (415) 4,118 Fund balances - beginning 403 403 403 — 3,144 3,144 3,144 — FUND BALANCES (DEFICIT) - ENDING $ 404 $ (68) $ 1,462 $ 1,530 $ 772 $ (1,389) $ 2,729 $ 4,118

CITY OF OAKLAND
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Other Governmental Funds – Special Revenue Funds (continued) Year Ended June 30, 2021
(In Thousands)
136
Parks, Recreation, Cultural, and Police
Original Budget Final Budget
Actual
Budgetary Basis
Variance
Positive
(Negative)

REVENUES
Interest and investment income (loss) $ 10 $ 10 $ (9) $ (19) Federal and state grants and subventions — 341 487 146 Other 368 368 16 (352)
TOTAL REVENUES 378 719 494 (225)

EXPENDITURES
Current:

General government — 907 24 883
Public safety — 190 113 77
Community and human services 367 1,646 149 1,497
Community and economic development — 268 94 174
Public works and transportation — 76 21 55
Capital outlay — 165 165 —
TOTAL EXPENDITURES 367 3,252 566 2,686
NET CHANGE IN FUND BALANCES 11 (2,533) (72) 2,461
Fund balances - beginning, as previously reported 3,984 3,984 3,984 — Cumulative effect of accounting change — — 2,124 —
Fund balances - beginning, as restated 3,984 3,984 6,108 — FUND BALANCES - ENDING $ 3,995 $ 1,451 $ 6,036 $ 4,585

OTHER GOVERNMENTAL FUNDS-

DEBT SERVICE FUNDS
Debt service funds account for the accumulation of resources to be used for the payment of general long-term debt principal and interest.

The General Obligation Bonds Fund accounts for monies received in connection with the General Obligation Bonds and the related payments on such debt. Proceeds from the General Obligation Bonds are to be used by the City to expand and develop park and recreation facilities, and to enhance the City’s emergency response capabilities and for seismic reinforcement of essential public facilities and infrastructure.

The Lease Financing Fund accounts for monies received in connection with leases between the City and the ORSA, and the City and the California Statewide Communities Development Authority. It also accounts for payments on bonds and other debt issued for the Oakland Museum, for capital improvements to certain City properties, and for the Scotlan and Kaiser Convention Centers.

The JPFA Fund accounts for monies received in connection with leases between the City and the JPFA.

The Other Assessment Bonds Fund accounts for special assessment monies received from property owners within the various special assessment districts to liquidate the improvement bonds. These districts include Rockridge Area Water Improvement, and the Fire Area Utility Underground.

The Special Revenue Bonds Fund accounts for financing received in connection with the Special Refunding Revenue Bonds (Pension Financing) and for payments on such bonds. Funding consists of voter-approved property tax override revenues authorized by Resolution No. 59916 C.M.S, which was adopted in August 1981 by the City Council to fund the City’s obligations under Measure R and Measure O. The revenues are used by the City to fund a portion of the City’s liability for public safety employee pensions.

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General
Obligation
Bonds
Lease
Financing JPFA
Other
Assessment
Bonds
Special
Revenue
Bonds Total
ASSETS
Cash and investments $ 12,072 $ 480 $ — $ 775 $ 7,312 $ 20,639 Receivables, net:

Accrued interest 5 — — — 4 9
Property taxes 729 — — 33 — 762
Restricted cash and investments 2,638 — — 498 189 3,325 TOTAL ASSETS $ 15,444 $ 480 $ — $ 1,306 $ 7,505 $ 24,735

LIABILITIES
Accounts payable and accrued
liabilities $ — $ 1 $ — $ 6 $ — $ 7
Due to other funds — 1,413 1 — — 1,414
TOTAL LIABILITIES — 1,414 1 6 — 1,421

DEFERRED INFLOWS OF

RESOURCES
Unavailable revenue 247 — — 28 — 275

FUND BALANCES
Restricted 15,197 — — 1,272 7,505 23,974
Unassigned — (934) (1) — — (935)
TOTAL FUND BALANCES 15,197 (934) (1) 1,272 7,505 23,039

TOTAL LIABILITIES,

DEFERRED INFLOWS OF

RESOURCES AND FUND
BALANCES $ 15,444 $ 480 $ — $ 1,306 $ 7,505 $ 24,735

CITY OF OAKLAND
Combining Balance Sheet
Other Governmental Funds – Debt Service Funds
June 30, 2021
(In Thousands)
139
General
Obligation
Bonds
Lease
Financing JPFA
Other
Assessment
Bonds
Special
Revenue
Bonds Total

REVENUES
Property taxes $ 35,471 $ — $ — $ — $ — $ 35,471
Fines and penalties 116 — — — — 116
Interest and investment income (loss) (14) (1) — 23 (13) (5) Federal and state grants and
subventions — 192 — — — 192
Other — — 1 521 — 522
TOTAL REVENUES 35,573 191 1 544 (13) 36,296

EXPENDITURES
Current:

General government 15 2 1 48 6 72
Debt service:

Principal repayment 22,094 1,356 6,015 350 23,992 53,807 Bond issuance cost 2 — 2 — — 4
Interest charges 14,297 209 2,309 88 44,903 61,806 TOTAL EXPENDITURES 36,408 1,567 8,327 486 68,901 115,689

EXCESS (DEFICIENCY) OF

REVENUES OVER (UNDER)
EXPENDITURES (835) (1,376) (8,326) 58 (68,914) (79,393)

OTHER FINANCING SOURCES
Transfers in — 1,373 8,314 — 68,717 78,404

TOTAL OTHER FINANCING
SOURCES — 1,373 8,314 — 68,717 78,404

NET CHANGE IN FUND
BALANCES (835) (3) (12) 58 (197) (989)
Fund balances (deficit) - beginning 16,032 (931) 11 1,214 7,702 24,028

FUND BALANCES (DEFICIT) -
ENDING $ 15,197 $ (934) $ (1) $ 1,272 $ 7,505 $ 23,039

CITY OF OAKLAND
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Other Governmental Funds – Debt Service Funds
Year Ended June 30, 2021
(In Thousands)
140
General Obligation Bonds Lease Financing
Original
Budget
Final
Budget
Actual
Budgetary
Basis
Variance
Positive
(Negative)
Original
Budget
Final
Budget
Actual
Budgetary
Basis
Variance
Positive
(Negative)

REVENUES
Property taxes $ 36,451 $ 36,451 $ 35,471 $ (980) $ — $ — $ — $ — Fines and penalties — — 116 116 — — — —
Interest and investment income (loss) — — (14) (14) — — (1) (1) Federal and state grants and subventions — — — — — — 192 192 Other — — — — 25,000 25,000 — (25,000)
TOTAL REVENUES 36,451 36,451 35,573 (878) 25,000 25,000 191 (24,809)

EXPENDITURES
Current:

General government 60 60 15 45 6 6 2 4
Debt service:

Principal repayment 22,095 22,095 22,094 1 26,356 26,356 1,356 25,000 Bond issuance cost — — 2 (1,595) — — — —
Interest charges 14,297 14,297 14,297 — 209 209 209 — TOTAL EXPENDITURES 36,452 36,452 36,408 44 26,571 26,571 1,567 25,004

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1) (1) (835) (834) (1,571) (1,571) (1,376) 195

OTHER FINANCING SOURCES
Transfers in — — — — 1,570 1,570 1,373 (197)

TOTAL OTHER FINANCING
SOURCES — — — — 1,570 1,570 1,373 (197)
NET CHANGE IN FUND BALANCES (1) (1) (835) (834) (1) (1) (3) (2) Fund balances (deficits) - beginning 16,032 16,032 16,032 — (931) (931) (931) — FUND BALANCES (DEFICITS) - ENDING $ 16,031 $ 16,031 $ 15,197 $ (834) $ (932) $ (932) $ (934) $ (2)

CITY OF OAKLAND
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Other Governmental Funds – Debt Service Funds
Year Ended June 30, 2021
(In Thousands)
141
JPFA Other Assessment Bonds
Original
Budget
Final
Budget
Actual
Budgetary
Basis
Variance
Positive
(Negative)
Original
Budget
Final
Budget
Actual
Budgetary
Basis
Variance
Positive
(Negative)

REVENUES
Interest and investment income (loss) $ — $ — $ — $ — $ — $ — $ 23 $ 23 Other — — 1 1 515 515 521 6
TOTAL REVENUES — — 1 1 515 515 544 29

EXPENDITURES
Current:

General government 6 6 1 5 96 96 48 48
Debt service:

Principal repayment 6,015 6,015 6,015 — 350 350 350 — Bond issuance cost — — 2 (2) — — — —
Interest charges 2,309 2,309 2,309 — 88 88 88 — TOTAL EXPENDITURES 8,330 8,330 8,327 3 534 534 486 48

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (8,330) (8,330) (8,326) 4 (19) (19) 58 77

OTHER FINANCING SOURCES
Transfers in 8,330 8,330 8,314 (16) — — — —

TOTAL OTHER FINANCING
SOURCES 8,330 8,330 8,314 (16) — — — —
NET CHANGE IN FUND BALANCES — — (12) (12) (19) (19) 58 77 Fund balances - beginning 11 11 11 — 1,214 1,214 1,214 — FUND BALANCES - ENDING $ 11 $ 11 $ (1) $ (12) $ 1,195 $ 1,195 $ 1,272 $ 77

CITY OF OAKLAND
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Other Governmental Funds – Debt Service Funds (continued) Year Ended June 30, 2021
(In Thousands)
142
Special Revenue Bonds
Original Budget Final Budget
Actual Budgetary
Basis
Variance Positive
(Negative)

REVENUES
Interest and investment income (loss) $ — $ — $ (13) $ (13) TOTAL REVENUES — — (13) (13)

EXPENDITURES
Current:

General government 13 13 6 —
Debt service:

Principal repayment 23,992 23,992 23,992 —
Interest charges 44,935 44,935 44,903 32
TOTAL EXPENDITURES 68,940 68,940 68,901 39

EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER)
EXPENDITURES (68,940) (68,940) (68,914) 26

OTHER FINANCING SOURCES
Transfers in 68,940 68,940 68,717 (223)
NET CHANGE IN FUND BALANCES — — (197) (197)
Fund balances - beginning 7,702 7,702 7,702 —
FUND BALANCES - ENDING $ 7,702 $ 7,702 $ 7,505 $ (197)

INTERNAL SERVICE
FUNDS
Internal service funds account for operations that provide goods or services to other City departments and agencies, or to other governments, on a cost-reimbursement basis.

The Equipment Fund accounts for the purchase of automotive and rolling equipment, and the related maintenance service charges and related billings for various City departments.

The Radio Fund accounts for the purchase, maintenance and operation of radio and other communication equipment being used by various City departments.

The Facilities Fund accounts for the repair and maintenance of City facilities, and for provision of custodial and maintenance services related thereto.

The Reproduction Fund accounts for the acquisition, maintenance and provision of reproduction equipment and services related to normal governmental operations.

The Central Stores Fund accounts for inventory provided to various City departments on a cost reimbursement basis.

The Purchasing Fund accounts for procurement of materials, equipment and services essential to providing governmental services for the City.

The Information Technology Fund accounts for maintenance and operation of the information technology services for various City departments.

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Equipment Radio Facilities Reproduction
Central
Stores Purchasing
Information
Technology Total
ASSETS
Current assets:

Cash and investments $ 19,385 $ 7,564 $ 5,050 $ — $ — $ — $ 3,254 $ 35,253 Accrued interest 9 4 3 — — — 2 18
Accounts receivable 1 — 100 — — — — 101
Inventories 1,082 — — — — — — 1,082
Restricted cash and investments 10,196 — — — — — 7,532 17,728 Prepaid expenses 54 16 2 — — — 404 476
Total current assets 30,727 7,584 5,155 — — — 11,192 54,658 Non-current assets:

Capital assets:

Land and other assets not being depreciated — 1,048 1,706 — — — 5,329 8,083 Facilities and equipment, net of depreciation 18,186 2,604 3,893 — — — 3,517 28,200 Total capital assets 18,186 3,652 5,599 — — — 8,846 36,283 TOTAL ASSETS 48,913 11,236 10,754 — — — 20,038 90,941

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to pensions 443 236 705 52 7 138 42 1,623 Deferred outflows of resources related to OPEB 1,526 772 2,835 129 69 304 76 5,711 TOTAL DEFERRED OUTFLOWS OF RESOURCES 1,969 1,008 3,540 181 76 442 118 7,334

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 1,429 235 1,774 180 13 — 760 4,391 Accrued interest payable 132 — — 1 2 — 58 193
Due to other funds — — — 1,124 3,561 214 — 4,899 Other liabilities — — 7 — — — — 7
Capital leases, notes and other payables 5,910 — — — — — 2,864 8,774 Total current liabilities 7,471 235 1,781 1,305 3,576 214 3,682 18,264 Non-current liabilities:

Capital leases, notes and other payables 10,512 — — — — — 3,594 14,106 Net pension liability 17,043 4,567 28,764 1,326 1,090 2,049 37 54,876 Net OPEB liability 5,378 2,080 9,805 436 235 1,044 93 19,071 Total non-current liabilities 32,933 6,647 38,569 1,762 1,325 3,093 3,724 88,053 TOTAL LIABILITIES 40,404 6,882 40,350 3,067 4,901 3,307 7,406 106,317

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to OPEB 1,009 421 1,968 47 50 197 (26) 3,666 TOTAL DEFERRED INFLOWS OF RESOURCES 1,009 421 1,968 47 50 197 (26) 3,666

NET POSITION
Net investment in capital assets 11,960 3,652 5,599 — — — 9,920 31,131 Unrestricted (deficit) (2,491) 1,289 (33,623) (2,933) (4,875) (3,062) 2,856 (42,839) TOTAL NET POSITION $ 9,469 $ 4,941 $ (28,024) $ (2,933) $ (4,875) $ (3,062) $ 12,776 $ (11,708)

CITY OF OAKLAND
Combining Statement of Fund Net Position
Internal Service Funds
June 30, 2021
(In Thousands)
145
Equipment Radio Facilities Reproduction
Central
Stores Purchasing
Information
Technology Total

OPERATING REVENUES
Charges for services $ 40,190 $ 7,448 $ 40,407 $ 1,422 $ 546 $ 1,623 $ 15,180 $ 106,816 Other 90 — 24 — — 11 — 125
TOTAL OPERATING REVENUES 40,280 7,448 40,431 1,422 546 1,634 15,180 106,941

OPERATING EXPENSES
Personnel 8,497 4,206 16,027 636 325 1,674 613 31,978 Supplies 6,684 369 1,943 4 6 2 684 9,692
Depreciation and amortization 5,809 2,019 487 — — — 3,059 11,374 Contractual services and supplies 235 274 607 5 45 4 5,119 6,289 Repairs and maintenance 2,253 150 5,754 31 — — 803 8,991 General and administrative 2,797 274 5,575 193 21 92 1,346 10,298 Rental 1,112 266 747 402 46 — 190 2,763
Other 198 1,431 7,924 4 3 2 240 9,802
TOTAL OPERATING EXPENSES 27,585 8,989 39,064 1,275 446 1,774 12,054 91,187 OPERATING INCOME (LOSS) 12,695 (1,541) 1,367 147 100 (140) 3,126 15,754

NON-OPERATING REVENUES (EXPENSES)
Interest and investment income (loss) (7) (6) 14 3 2 (3) (11) (8) Interest expense (475) (1) — — — — (206) (682)
Insurance claims and settlements 322 — 15 — — — — 337 Other 369 — — — — 10 — 379

TOTAL NON-OPERATING REVENUES
(EXPENSES) 209 (7) 29 3 2 7 (217) 26
INCOME (LOSS) BEFORE TRANSFERS 12,904 (1,548) 1,396 150 102 (133) 2,909 15,780 Transfers out (6,100) — (73) — — — — (6,173)
Change in net position 6,804 (1,548) 1,323 150 102 (133) 2,909 9,607 Net position - beginning 2,665 6,489 (29,347) (3,083) (4,977) (2,929) 9,867 (21,315) NET POSITION - ENDING $ 9,469 $ 4,941 $ (28,024) $ (2,933) $ (4,875) $ (3,062) $ 12,776 $ (11,708)

CITY OF OAKLAND
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position Internal Services Funds
Year Ended June 30, 2021
(In Thousands)

146
Equipment Radio Facilities Reproduction
Central
Stores Purchasing
Information
Technology Total

CASH FLOWS FROM OPERATING

ACTIVITIES
Cash received from customers and users $ 40,190 $ 7,448 $ 40,445 $ 1,422 $ 546 $ 1,623 $ 15,180 $ 106,854 Cash from other sources 781 — 39 — — 21 — 841
Cash paid to employees (8,008) (3,871) (15,082) (567) (291) (1,631) (523) (29,973) Cash paid to suppliers (13,457) (2,769) (23,208) (700) (123) (99) (8,076) (48,432)

NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES 19,506 808 2,194 155 132 (86) 6,581 29,290

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Proceeds of interfund loans — — — — — 89 — 89
Repayment of interfund loans — — — (160) (134) — (2) (296) Transfers out (6,100) — (73) — — — — (6,173)

NET CASH PROVIDED BY (USED IN)
NONCAPITAL FINANCING ACTIVITIES (6,100) — (73) (160) (134) 89 (2) (6,380)

CASH FLOWS FROM CAPITAL AND

RELATING FINANCING ACTIVITIES
Acquisition of capital assets (5,200) (654) (1,625) — — — (929) (8,408) Repayment of long-term debt (5,662) — — — — — (7,443) (13,105) Interest paid on long-term debt (520) (5) — — — — (274) (799)

NET CASH USED IN CAPITAL AND
RELATED FINANCING ACTIVITIES (11,382) (659) (1,625) — — — (8,646) (22,312)

CASH FLOWS FROM INVESTING

ACTIVITIES
Interest received (paid) 11 12 29 5 2 (3) (13) 43

NET CHANGE IN CASH AND CASH
EQUIVALENTS 2,035 161 525 — — — (2,080) 641
Cash and cash equivalents - beginning 27,546 7,403 4,525 — — — 12,866 52,340

CASH AND CASH EQUIVALENTS -
ENDING $ 29,581 $ 7,564 $ 5,050 $ — $ — $ — $ 10,786 $ 52,981

CITY OF OAKLAND
Combining Statement of Cash Flows
Internal Service Funds
Year Ended June 30, 2021
(In Thousands)
147

Equipment Radio Facilities Reproduction
Central
Stores Purchasing
Information
Technology Total

RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED BY (USED

IN) OPERATING ACTIVITIES
Operating income (loss) $ 12,695 $ (1,541) $ 1,367 $ 147 $ 100 $ (140) $ 3,126 $ 15,754

ADJUSTMENTS TO RECONCILE OPERATING

INCOME (LOSS) TO NET CASH PROVIDED

BY (USED IN) OPERATING ACTIVITIES
Depreciation 5,809 2,019 487 — — — 3,059 11,374 Miscellaneous non-operating revenues (expenses) 691 — 15 — — 10 — 716 Changes in assets, liabilities, and deferred outflows
and inflows of resources:

Receivables — — 38 — — — — 38
Inventories 3 — — — — — — 3
Other assets (18) (2) — — — — 871 851
Accounts payable and accrued liabilities (163) (3) (658) (61) (2) 1 (565) (1,451) Net pension liability and related pension deferred
items 441 304 849 63 29 38 83 1,807
Net other postemployment benefits liability and
related deferred items 48 31 96 6 5 5 7 198
Total adjustments 6,811 2,349 827 8 32 54 3,455 13,536

NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES $ 19,506 $ 808 $ 2,194 $ 155 $ 132 $ (86) $ 6,581 $ 29,290

RECONCILIATION OF CASH AND CASH

EQUIVALENTS TO THE STATEMENT OF

FUND NET POSITION
Cash and investments $ 19,385 $ 7,564 $ 5,050 $ — $ — $ — $ 3,254 $ 35,253 Restricted cash and investments 10,196 — — — — — 7,532 17,728 TOTAL CASH AND CASH EQUIVALENTS $ 29,581 $ 7,564 $ 5,050 $ — $ — $ — $ 10,786 $ 52,981

CITY OF OAKLAND
Combining Statement of Cash Flows (Continued)
Internal Service Funds
Year Ended June 30, 2021
(In Thousands)
148

FIDUCIARY FUNDS
Fiduciary funds, including pension and private-purpose trusts, account for resources held by the City which must be spent as provided in legal trust agreements and related state laws.

PENSION TRUST FUND
The Police and Fire Retirement System (PFRS) Fund is a closed benefit plan administered by a Board of Trustees which covers uniformed police and fire employees. Membership in the plan is limited to uniformed employees hired prior to July 1, 1976. All subsequent hires are covered under the California Public Employees' Retirement System.

PRIVATE-PURPOSE TRUST FUNDS
Private-Purpose Trust Funds include (a) the Oakland Redevelopment Successor Agency Trust Fund , which accounts for the custodial responsibilities that are assigned to the Oakland Redevelopment Successor Agency with the passage of AB X1 26 and (b) the Other Private-Purpose Trust Fund , which accounts for the operations of the Telecommunications Sinking Fund, which was established to finance removal costs for obsolete telecommunications facilities. Balances and activities for the Private Pension Trust Fund, which was reported as a fiduciary fund in prior years, have been incorporated into the Other Governmental Fund to conform with the requirements of GASB 84.

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Oakland
Redevelopment
Successor
Agency Trust
Fund
Other Private-
Purpose Trust
Fund Total
ASSETS
Cash and investments $ 60,270 $ 2,277 $ 62,547
Receivables:

Accrued interest 346 1 347
Due from other funds of the City 2,705 — 2,705
Prepaid expenses 1,501 — 1,501
Restricted:

Short-term investments 8,247 — 8,247
Loans receivable (net of allowance for
uncollectibles of $3,918) 3,608 — 3,608
Property held for resale 2,818 — 2,818
TOTAL ASSETS 79,495 2,278 81,773

DEFERRED OUTFLOWS OF RESOURCES
Unamortized losses on refunding of debt 12,272 — 12,272

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 2 — 2
Accrued interest payable 4,199 — 4,199
Due to other funds of the City 18,394 — 18,394
Other 46 — 46
Total current liabilities 22,641 — 22,641
Non-current liabilities
Due within one year 29,820 — 29,820
Due in more than one year 228,397 — 228,397
Total non-current liabilities 258,217 — 258,217
TOTAL LIABILITIES 280,858 — 280,858

DEFERRED INFLOWS OF RESOURCES
Unamortized gains on refunding of debt 350 — 350

NET POSITION

RESTRICTED FOR REDEVELOPMENT
DISSOLUTION AND OTHER PURPOSES $ (189,441) $ 2,278 $ (187,163)

CITY OF OAKLAND
Combining Statement of Fiduciary Net Position
Private-Purpose Trust Funds
June 30, 2021
(In Thousands)
149
Oakland
Redevelopment
Successor
Agency
Trust Fund
Other
Private-
Purpose
Trust Fund Total

ADDITIONS
Trust receipts $ 42,019 $ 1,098 $ 43,117
Interest and investment income (loss) (27) (2) (29)
Federal and state grants 218 — 218
Other income 425 — 425
TOTAL ADDITIONS 42,635 1,096 43,731

DEDUCTIONS
Administrative expenses 3,167 894 4,061
Economic and workforce development 290 — 290
Other 13,652 — 13,652
Interest on debt 12,236 — 12,236
TOTAL DEDUCTIONS 29,345 894 30,239
Change in net position 13,290 202 13,492
Net position - beginning, as previously
reported (202,731) 4,689 (198,042)
Cumulative effect of accounting change — (2,613) (2,613) Net position - beginning, as restated (202,731) 2,076 (200,655) NET POSITION - ENDING $ (189,441) $ 2,278 $ (187,163)

CITY OF OAKLAND
Combining Statement of Changes in Fiduciary Net Position Private-Purpose Trust Funds
Year Ended June 30, 2021
(In Thousands)
150

STATISTICAL

SECTION
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INDEX TO STATISTICAL SECTION
This part of the City of Oakland’s Annual Comprehensive Financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures and required supplemental information says about the City’s overall financial health.

Financial Trends
Schedules one through four contain trend information to assist in understanding how the City’s financial performance and well-being have changed over times.

Revenue Capacity
Schedules five through eleven report tax revenues by sources which include: property taxes, state taxes and local taxes.

Debt Capacity
Schedules twelve through fifteen present information that helps in understanding the City’s current level of outstanding debt, the legal debt margin, and the ability to issue additional debt in the future.

Pledged Revenue Coverage
Schedule sixteen contains pledged revenue coverage for the City and the Port of Oakland, a component unit of the City. This schedule assists in understanding the revenues pledged for repayment of debt service.

Demographic and Economic Information
Schedules seventeen and eighteen provide the demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place.

Operating Information
Schedules nineteen through twenty-one contain service and infrastructure data to assist in understanding how the City’s financial reports relate to the services the City provides and the activities it performs.

Sources: The City’s Annual Comprehensive Financial Report for the relevant years.

CITY OF OAKLAND

STATISTICAL SECTION
151
SCHEDULE 1

NET POSITION BY COMPONENT
(in thousands)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Governmental activities
Net investment in capital assets $ 663,785 $ 712,606 $ 876,703 $ 1,025,789 $ 1,079,164 $ 1,141,058 $ 1,126,892 $ 1,144,031 $ 1,142,803 $ 1,102,435 Restricted 559,393 425,786 433,080 547,286 555,205 599,324 648,566 666,949 704,387 779,672 Unrestricted (304,010) (334,451) (327,965) (1,841,834) (1,789,831) (1,833,427) (2,444,868) (2,322,561) (2,156,633) (2,043,187) Total net position - governmental activities $ 919,168 $ 803,941 $ 981,818 $ (268,759) $ (155,462) $ (93,045) $ (669,410) $ (511,581) $ (309,443) $ (161,080) Business-type activities
Net investment in capital assets $ 122,911 $ 129,542 $ 143,295 $ 155,257 $ 171,743 $ 188,139 $ 201,553 $ 213,288 $ 225,762 $ 228,564 Unrestricted 44,061 53,341 53,039 27,182 28,057 19,880 11,052 14,837 18,663 28,807 Total net position - business-type activities $ 166,972 $ 182,883 $ 196,334 $ 182,439 $ 199,800 $ 208,019 $ 212,605 $ 228,125 $ 244,425 $ 257,371 Primary government
Net investment in capital assets $ 786,696 $ 842,148 $ 1,019,998 $ 1,181,046 $ 1,250,907 $ 1,329,197 $ 1,328,445 $ 1,357,319 $ 1,368,565 $ 1,330,999 Restricted 559,393 425,786 433,080 547,286 555,205 599,324 648,566 666,949 704,387 779,672 Unrestricted (259,949) (281,110) (274,926) (1,814,652) (1,761,774) (1,813,547) (2,433,816) (2,307,724) (2,137,970) (2,014,380) Total net position - primary government $ 1,086,140 $ 986,824 $ 1,178,152 $ (86,320) $ 44,338 $ 114,974 $ (456,805) $ (283,456) $ (65,018) $ 96,291 Source: City of Oakland Statement of Net Position

CITY OF OAKLAND

STATISTICAL SECTION
152
SCHEDULE 2

CHANGES IN NET POSITION
(in thousands)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Expenses
Governmental activities:

General government $ 83,131 $ 93,942 $ 79,806 $ 82,493 $ 99,183 $ 113,697 $ 110,486 $ 199,697 $ 186,580 $ 222,718 Public safety 351,566 363,597 379,809 383,904 432,862 475,552 471,378 444,400 409,740 511,184 Community and human services 122,829 107,779 116,961 121,740 134,799 149,804 144,763 142,719 150,513 134,097 Community and economic development 138,596 81,182 83,657 75,268 85,396 92,671 103,328 103,099 99,995 186,777 Public works and transportation 101,892 75,158 109,177 105,619 114,597 127,404 158,610 127,597 137,937 149,611 Interest on long-term debt 68,948 62,744 59,026 68,033 54,335 56,471 61,505 60,432 63,438 63,964 Total governmental activities expenses 866,962 784,402 828,436 837,057 921,172 1,015,599 1,050,070 1,077,944 1,048,203 1,268,351 Business-type activities:

Sewer 31,227 34,504 37,306 36,957 39,270 44,391 49,645 50,831 50,717 54,181 Parks and recreation 492 643 855 681 872 730 1,317 777 683 725 Total business-type activities 31,719,000 35,147,000 38,161,000 37,638,000 40,142,000 45,121,000 50,962,000 51,608,000 51,400,000 54,906 Total primary government expenses $ 898,681,000 $ 819,549,000 $ 866,597,000 $ 874,695,000 $ 961,314,000 $ 1,060,720,000 $ 1,101,032,000 $ 1,129,552,000 $ 1,099,603,000 $ 1,323,257 Program Revenues
Governmental activities:

Charges for services:

General government $ 19,924 $ 17,756 $ 54,509 $ 55,148 $ 49,540 $ 46,030 $ 45,511 $ 52,249 $ 40,746 $ 38,376 Public safety 13,283 7,610 15,472 18,329 21,104 19,867 24,343 27,068 24,483 21,740 Community and human services 8,302 6,342 6,326 7,375 7,454 7,841 6,610 7,677 6,374 3,339 Community and economic development 41,507 19,025 39,413 61,022 58,439 89,130 99,239 69,513 75,049 66,450 Public works and transportation 83,017 76,098 36,954 40,419 41,772 40,285 46,016 46,883 46,041 40,563 Operating grants and contributions 89,620 89,424 119,063 92,865 90,090 95,032 124,238 95,198 130,396 206,509 Capital grants and contributions 30,607 26,179 42,148 70,322 54,043 34,911 750 22,672 2,446 3,178 Total governmental activities program revenues 286,260 242,434 313,885 345,480 322,442 333,096 346,707 321,260 325,535 380,155 Business-type activities:

Charges for services:

Sewer 48,200 52,919 52,946 57,544 58,703 60,548 65,614 66,558 68,010 69,113 Parks and recreation 575 372 503 295 711 272 554 540 325 651 Total business-type activities program revenues 48,775 53,291 53,449 57,839 59,414 60,820 66,168 67,098 68,335 69,764 Total primary government program revenues $ 335,035 $ 295,725 $ 367,334 $ 403,319 $ 381,856 $ 393,916 $ 412,875 $ 388,358 $ 393,870 $ 449,919 Net (Expense)/Revenue
Governmental activities $ (580,702) $ (541,968) $ (514,551) $ (491,577) $ (598,730) $ (682,503) $ (703,363) $ (756,684) $ (722,668) $ (888,196) Business-type activities 17,056 18,144 15,288 20,201 19,272 15,699 15,206 15,490 16,935 14,858 Total primary government net expense $ (563,646) $ (523,824) $ (499,263) $ (471,376) $ (579,458) $ (666,804) $ (688,157) $ (741,194) $ (705,733) $ (873,338) General Revenues and Other Changes in Net
Position
Governmental activities:

Taxes
Property taxes $ 288,923 $ 256,333 $ 240,779 $ 267,534 $ 279,764 $ 312,078 $ 340,573 $ 358,446 $ 388,322 $ 438,237 Sales and use taxes 66,940 70,498 71,997 63,718 77,365 79,866 85,500 92,319 83,678 88,888 Motor vehicle in-lieu tax — — — 177 166 189 224 206 343 318 Gas tax — — — 12,030 8,653 7,974 10,867 16,409 17,320 17,322 Local taxes 222,237 244,207 263,017 275,496 318,352 314,188 336,586 387,990 362,899 407,531 Interest and investment income (loss) 7,078 6,358 6,653 6,362 4,596 3,046 42,362 26,394 24,126 18 Other 53,172 7,076 19,671 12,745 20,987 19,935 11,762 31,457 46,373 80,250 Transfers 1,893 1,911 2,002 2,002 2,144 7,644 1,292 1,292 1,745 1,871 Special and extraordinary items 273,020 (156,902) 88,309 107,696 — — — — — — Total governmental activities 913,263 429,481 692,428 747,760 712,027 744,920 829,166 914,513 924,806 1,034,435 Business-type activities:

Interest and investment income 83 (24) 165 142 233 164 727 1,309 1,108 (41) Other — — — — — — — 14 2 —
Transfers (1,893) (1,911) (2,002) (2,002) (2,144) (7,644) (1,292) (1,292) (1,745) (1,871) Total business-type activities (1,810) (1,935) (1,837) (1,860) (1,911) (7,480) (565) 31 (635) (1,912) Total primary government $ 911,453 $ 427,546 $ 690,591 $ 745,900 $ 710,116 $ 737,440 $ 828,601 $ 914,544 $ 924,171 $ 1,032,523 Change in Net Position
Governmental activities $ 332,561 $ (112,487) $ 177,877 $ 256,183 $ 113,297 $ 62,417 $ 125,803 $ 157,829 $ 202,138 $ 146,239 Business-type activities 15,246 16,209 13,451 18,341 17,361 8,219 14,641 15,521 16,300 12,946 Total primary government $ 347,807 $ (96,278) $ 191,328 $ 274,524 $ 130,658 $ 70,636 $ 140,444 $ 173,350 $ 218,438 $ 159,185 Source: City of Oakland Statement of Activities

CITY OF OAKLAND

STATISTICAL SECTION
153
SCHEDULE 3

FUND BALANCES

GOVERNMENTAL FUNDS
(in thousands)

General Fund 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Nonspendable $ — $ — $ — $ — $ — $ — $ — $ — $ — $ 18,687 Restricted 110,708 165,400 156,462 164,242 186,804 241,404 235,084 240,247 254,309 267,811 Committed 70,284 — — — — 8,805 14,323 14,648 47,441 38,739 Assigned 6,256 58,452 73,843 64,680 58,203 30,802 41,959 53,958 40,145 41,786 Unassigned 68,681 21,791 23,546 37,409 65,129 64,715 93,801 118,242 62,373 96,943 Total general fund $ 255,929 $ 245,643 $ 253,851 $ 266,331 $ 310,136 $ 345,726 $ 385,167 $ 427,095 $ 404,268 $ 463,966 All Other Governmental Funds 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Nonspendable $ — $ — $ — $ — $ — $ — $ — $ — $ — $ 466
Restricted 264,460 248,517 270,055 333,665 303,631 332,588 408,550 365,448 543,255 456,580 Committed 13,420 16,075 13,902 13,527 18,610 20,072 19,549 26,948 22,541 33,602 Assigned 179,063 61,373 90,647 33,603 45,335 86,767 140,061 160,970 173,517 178,922 Unassigned (1,416) (9,849) (5,236) (7,997) (9,891) (17,031) (1,106) — — (935) $ 455,527 $ 316,116 $ 369,368 $ 372,798 $ 357,685 $ 422,396 $ 567,054 $ 553,366 $ 739,313 $ 668,635 Source: City of Oakland Balance Sheet, Governmental Funds

CITY OF OAKLAND

STATISTICAL SECTION
154
SCHEDULE 4

CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS
(in thousands)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Revenues
Taxes (see Schedule 5) $ 578,100 $ 569,193 $ 576,744 $ 619,821 $ 684,334 $ 712,556 $ 775,478 $ 854,682 $ 854,552 $ 945,338 Licenses and permits 12,079 13,331 16,694 22,451 29,362 44,902 47,731 30,603 32,799 29,989 Fines and penalties 27,204 26,657 26,958 25,612 23,972 23,573 20,366 23,341 19,964 19,028 Interest/investment income 7,558 6,330 6,738 6,409 4,579 2,999 4,557 19,415 17,321 (5,094) Charges for services 126,750 86,842 109,022 134,230 125,580 134,678 153,622 149,447 139,929 121,451 Federal and State grants and subventions 115,046 102,802 152,062 167,045 140,119 128,674 121,559 101,703 137,140 206,509 Other revenues 34,427 39,278 19,641 18,025 12,334 24,214 41,160 32,502 38,215 83,849 Total revenues 901,164 844,433 907,859 993,593 1,020,280 1,071,596 1,164,473 1,211,693 1,239,920 1,401,070 Expenditures
General government 104,569 108,323 87,993 94,318 110,053 111,082 167,524 185,542 193,098 228,438 Public safety 345,700 531,436 340,520 373,532 408,396 422,727 435,650 470,396 522,035 527,044 Community and human services 105,020 104,861 115,589 120,248 125,027 128,106 130,472 149,011 170,646 174,292 Community and economic development 126,709 66,467 79,722 65,771 72,019 74,729 99,782 87,505 93,830 172,123 Public works and transportation 69,763 72,497 96,208 85,041 82,156 87,050 98,416 109,074 119,670 123,927 Capital outlay 71,703 103,905 98,316 123,433 99,609 79,477 72,922 76,600 58,726 75,969 Debt service
Bond issuance costs 359 1,958 209 829 251 659 2,131 9 1,723 141 Other refunding cost — 3,110 — 11,213 — — 1,535 — — — Principal 125,570 74,886 80,559 129,906 48,932 56,657 56,597 55,236 62,950 58,498 Interest 67,175 58,208 59,314 56,737 51,589 54,292 57,452 59,025 60,613 62,590 Total expenditures 1,016,568 1,125,651 958,430 1,061,028 998,032 1,014,779 1,122,481 1,192,398 1,283,291 1,423,022 Excess (deficiency) of revenues over
(under) expenditures (115,404) (281,218) (50,571) (67,435) 22,248 56,817 41,992 19,295 (43,371) (21,952) Other Financing Sources (Uses)
Issuance of debt/bonds 83,775 — — — — 34,521 117,855 — 184,890 — Issuance of refunding bonds — 216,085 — 128,895 — — 61,405 — 64,260 — Capital leases — 16,150 14,901 — — — — — — —
Premiums/discounts on issuance of bonds 8,538 (1,129) 15,472 — 809 8,555 — 7,647 — Payment to refunding escrow agent (57,998) (3,018) — (143,717) — — (68,307) — (64,159) — Property sale proceeds 32,213 67 5,442 309 66 1,488 2,855 7,297 5,390 — Insurance claims and settlements 1,627 3,726 865 5,477 4,314 3,974 2,949 82 84 804 Transfers in 344,831 119,617 115,397 113,270 109,259 94,989 105,423 111,743 116,722 115,612 Transfers out (342,843) (117,473) (112,883) (110,756) (107,117) (92,297) (105,107) (110,177) (108,343) (107,568) Total other financing sources (uses) 70,143 234,025 23,722 8,950 6,522 43,484 125,628 8,945 206,491 8,848 Special and extraordinary items — (274,999) (102,504) 88,309 74,395 — — — — — Net change in fund balances $ (320,260) $ (149,697) $ 61,460 $ 15,910 $ 28,692 $ 100,301 $ 184,099 $ 28,240 $ 163,120 $ (13,104) Debt service as a percentage of
noncapital expenditures 21.0% 13.7% 17.1% 20.6% 11.5% 12.2% 11.1% 10.4% 10.3% 9.1% Notes:Debt ratio was calculated by dividing principal, interest and bond issuance costs by total government expenditures excluding capital outlay. For purposes of this schedule, General government includes Mayor, Council, City Administrator, City Attorney, City Auditor, City Clerk, Workplace & Employment Standards, and Public Ethics Commission
Source: City of Oakland Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds

CITY OF OAKLAND

STATISTICAL SECTION
155
SCHEDULE 5

TAX REVENUES BY SOURCE

GOVERNMENTAL FUNDS
(in thousands)
Local Taxes
Fiscal
Year Property Sales & Use
Motor Vehicle
in-lieu Gas
Business
License
Utility
Consumption
Real Estate
Transfer
Transient
Occupancy Parking
Voter-
Approved Franchise Total
2012 $ 288,923 $ 55,659 $ 221 $ 11,060 $ 58,712 $ 51,434 $ 30,653 $ 13,822 $ 15,975 $ 35,812 $ 15,829 $ 578,100 2013 254,488 60,494 — 10,004 60,371 50,752 47,406 15,831 15,565 38,247 16,035 569,193 2014 241,730 58,912 — 13,085 62,905 50,422 59,060 18,468 16,661 38,835 16,666 576,744 2015 268,400 63,718 177 12,030 66,677 50,594 62,665 21,569 18,398 37,443 18,150 619,821 2016 279,798 77,365 166 8,653 75,504 51,006 89,594 25,671 20,175 37,793 18,609 684,334 2017 310,339 79,866 189 7,974 75,840 52,618 79,070 29,049 20,886 37,962 18,763 712,556 2018 342,301 85,500 224 10,767 86,107 52,047 77,663 30,039 21,137 50,469 19,124 775,378 2019 357,758 92,319 206 16,409 99,733 49,599 104,905 33,005 21,726 59,682 19,340 854,682 2020 390,312 83,678 343 17,320 98,036 49,831 91,534 24,920 17,312 61,492 19,774 854,552 2021 431,279 88,888 318 17,322 104,232 51,801 113,359 13,497 11,590 93,151 19,901 945,338 Change
2012-2021 49.3 % 59.7 % 43.9 % 56.6 % 77.5 % 0.7 % 269.8 % (2.4) % (27.4) % 160.1 % 25.7 % 63.5 % Note: Reflects revenues of the General, Special Revenue, Debt Service, and Capital Projects Funds, the Oakland Redevelopment Agency, and the Oakland Redevelopment Successor Agency in FY2012; and the General, Special Revenue, Debt Service, Capital Projects, and Low and Moderate Income Housing Asset Funds in FY2013-FY 2021. Real estate transfer tax increases in FY2019, FY2020, and FY2021 reflect cyclical economic activity and support the Vital Services Stabilization Reserve, consistent with the City's Consolidated Fiscal Policy. Transient occupancy and parking tax declines reflect impacts of the COVID-19 pandemic and related shelter-in-place public health orders in FY2020 and FY2021.

Source: City of Oakland Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds

CITY OF OAKLAND

STATISTICAL SECTION
156
SCHEDULE 6

ASSESSED VALUE OF TAXABLE PROPERTY
(in thousands)
Fiscal
Year Land Improvements
Personal
Property
Total Assessed
Value
Less: Tax-
Exempt
Property
Less:

Redevelopment
Tax Increments
Total Taxable
Assessed
Value
Total Direct
Tax Rate
2012 $ 12,560,758 $ 27,225,464 $ 2,154,330 $ 41,940,552 $ 3,084,118 $ 9,247,268 $ 29,609,166 0.5677 2013 12,723,234 27,848,261 2,266,536 42,838,031 3,322,453 9,496,227 30,019,351 0.5562 2014 13,031,396 29,441,439 2,569,502 45,042,337 4,245,848 9,625,116 31,171,373 0.5470 2015 13,960,804 31,789,840 1,925,481 47,676,125 4,288,050 10,353,808 33,034,267 0.5527 2016 14,968,239 34,219,483 2,098,503 51,286,225 3,862,329 11,932,782 35,491,114 0.5136 2017 16,037,959 36,557,232 2,524,869 55,120,060 4,139,277 13,171,622 37,809,161 0.5446 2018 17,509,685 39,142,275 2,434,733 59,086,693 4,439,304 — 54,647,390 0.5530 2019 18,808,665 42,085,461 2,501,253 63,395,379 4,896,798 — 58,498,581 0.5467 2020 20,262,811 45,554,214 2,665,626 68,482,651 5,345,544 — 63,137,107 0.5460 2021 21,661,691 50,552,542 2,590,408 74,804,641 5,224,851 — 69,579,790 0.5497 Notes: Amounts for Redevelopment Tax Increment are reported in Total Assessed Value for 2018 and subsequent years. Tax rates are per $1,000 of assessed value.

Source: County of Alameda

CITY OF OAKLAND

STATISTICAL SECTION
157
SCHEDULE 7

DIRECT AND OVERLAPPING

PROPERTY TAX RATES
City Direct Rates Overlapping Rates
Fiscal Year
Basic
Rate
Debt
Service
Fund
1981
Pension
Liability
Total
Direct
Rate
Alameda
County Education
Education
Debt
BART
and AC
Transit
BART
Debt Other
East Bay
Municipal
Utility
Debt
East Bay
Regional
Parks
District
East Bay
Reg.

Parks
District
Debt
2012 0.3485 0.0617 0.1575 0.5677 0.3086 0.2165 0.1741 0.0517 0.0041 0.0505 0.0067 0.0242 0.0071 2013 0.3485 0.0502 0.1575 0.5562 0.3086 0.2165 0.1818 0.0517 0.0043 0.0505 0.0068 0.0242 0.0051 2014 0.3485 0.0410 0.1575 0.5470 0.3086 0.2165 0.2199 0.0517 0.0075 0.0505 0.0066 0.0242 0.0078 2015 0.3485 0.0467 0.1575 0.5527 0.3086 0.2165 0.2157 0.0517 0.0045 0.0505 0.0047 0.0242 0.0085 2016 0.3485 0.0076 0.1575 0.5136 0.3086 0.2165 0.1876 0.0517 0.0026 0.0505 0.0034 0.0242 0.0067 2017 0.3485 0.0386 0.1575 0.5446 0.3086 0.2165 0.1407 0.0517 0.0080 0.0505 0.0028 0.0242 0.0032 2018 0.3485 0.0470 0.1575 0.5530 0.3086 0.2165 0.1325 0.0517 0.0084 0.0505 0.0011 0.0242 0.0021 2019 0.3485 0.0407 0.1575 0.5467 0.3198 0.2165 0.1445 0.0517 0.0070 0.0505 — 0.0242 0.0057 2020 0.3485 0.0400 0.1575 0.5460 0.3194 0.2165 0.1425 0.0517 0.0120 0.0505 — 0.0242 0.0060 2021 0.3485 0.0437 0.1575 0.5497 0.3122 0.2165 0.1536 0.0517 0.0139 0.0505 — 0.0242 0.0014 Note: Rates per $1,000 assessed value
Source: County of Alameda

CITY OF OAKLAND

STATISTICAL SECTION
158
SCHEDULE 8

PRINCIPAL PROPERTY TAXPAYERS
2012 (1) 2021 (2)
Taxpayer
Taxable Assessed
Value
Percentage
of Total City
Taxable
Assessed
Value Rank
Taxable Assessed
Value
Percentage of
Total City
Taxable
Assessed
Value Rank
SOFXI WFO Center 21 Owner LLC $ 354,087,370 0.509 % 1
KRE 1221 Broadway Owner LLC 256,597,626 0.369 % 2
CSHV 1999 Harrison LLC 238,504,699 0.343 % 3
601 City Center LLC 234,136,954 0.337 % 4
3093 Broadway Holdings LLC 233,681,756 0.336 % 5
Broadway Franklin LLC 233,328,046 0.335 % 6
1955 Broadway Oakland Owner
LLC
230,522,000 0.331 % 7
USPA City Center LLC 225,143,360 0.324 % 8
SIC Lakeside Drive LLC $ 208,549,010 0.537 % 3 216,807,300 0.312 % 9 CP VI Franklin LLC 210,939,330 0.303 % 10
Alta Bates Summit Medical Center 242,273,804 0.624 % 1 N/A Oakland City Center Venture LLC 234,821,989 0.604 % 2 N/A CIM Oakland Center 21 LP 170,251,617 0.438 % 4 N/A
Digital 720 2ND LLC 166,740,448 0.429 % 5 N/A
Kaiser Foundation Health Plan Inc 154,627,831 0.398 % 6 N/A Catholic Cathedral Corp of the East
Bay
145,490,735 0.374 % 7 N/A
Oakland Property LLC 132,000,000 0.340 % 8 N/A
CIM Oakland 1 Kaiser Plaza LP 127,659,692 0.329 % 9 N/A 1800 Harrison Foundation 122,558,413 0.315 % 10 N/A
Total $ 1,704,973,539 4.388 % $ 2,433,748,441 3.498 % Notes:
(1) 2012 based on total assessed value of $38,856,434,508 (2) 2021 based on total assessed value of $69,579,789,746 Source: County of Alameda

CITY OF OAKLAND

STATISTICAL SECTION
159
SCHEDULE 9

PROPERTY TAX LEVIES

AND COLLECTIONS
(in thousands)
1% TAX ROLL
Collected within the
Fiscal Year of the Levy
Total Collections to
Date
Fiscal Year Ended
June 30,
Taxes
Levied for
the Fiscal
Year Amount
Percent of
Levy Amount
Percent of
Levy
2012 $ 84,590 $ 81,823 96.73 % $ 81,823 96.73 %
2013 85,791 83,756 97.63 % 83,756 97.63 %
2014 87,270 85,643 98.14 % 85,643 98.14 %
2015 92,969 91,419 98.33 % 91,419 98.33 %
2016 101,746 99,849 98.14 % 99,849 98.14 %
2017 108,686 106,799 98.26 % 106,799 98.26 %
2018 116,778 115,061 98.53 % 115,061 98.53 %
2019 122,790 121,081 98.61 % 121,081 98.61 %
2020 130,998 128,734 98.27 % 128,734 98.27 %
2021 139,467 137,038 98.26 % 137,038 98.26 %
Voter-Approved Debt Tax Roll
Collected within the
Fiscal Year of the Levy
Total Collections to
Date
Fiscal Year Ended
June 30,
Taxes
Levied for
the Fiscal
Year Amount
Percent of
Levy Amount
Percent of
Levy
2012 $ 85,076 $ 82,413 96.87 % $ 82,413 96.87 %
2013 82,312 80,328 97.59 % 80,328 97.59 %
2014 80,745 78,989 97.83 % 78,989 97.83 %
2015 89,871 88,335 98.29 % 88,335 98.29 %
2016 99,114 97,543 98.42 % 97,543 98.42 %
2017 116,107 112,674 97.04 % 112,674 97.04 %
2018 127,411 125,535 98.53 % 125,535 98.53 %
2019 129,504 127,583 98.52 % 127,583 98.52 %
2020 140,258 137,763 98.22 % 137,763 98.22 %
2021 157,364 154,916 98.44 % 154,916 98.44 %
Note: Collections in subsequent year data not available.

Source: County of Alameda

CITY OF OAKLAND

STATISTICAL SECTION
160
/0/1/2/3/4/5/6/3/i255/8/9
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/0/10/11/10/91/0/10/91/1/11/6/i255/0/3/1/10/91/16/94
/56/52/56
SCHEDULE 11

DIRECT AND OVERLAPPING

SALES TAX RATES
Fiscal Year City Direct Rate State of California
2012 1.50% 7.25%
2013 1.50% 7.50%
2014 1.50% 7.50%
2015 2.00% 7.50%
2016 2.00% 7.50%
2017 2.00% 7.25%
2018 2.00% 7.25%
2019 2.00% 7.25%
2020 2.00% 7.25%
2021 2.00% 7.25%

Source: California Department of Tax and Fee Administration.

CITY OF OAKLAND

STATISTICAL SECTION
162
SCHEDULE 12

RATIOS OF OUTSTANDING DEBT BY TYPE
(in thousands)
Governmental Activities Business-type Activities Total Primary Government Fiscal
Year
General
Obligation
Bonds
Lease
Revenue
Bonds
Pension
Obligation
Bonds
Accreted
Interest
Special
Assessment
Bonds
Notes
and
Loans
Payable
Capital
Leases
Premiums
and
Discounts
Pledge
Oblig. For
Authority
Debt
Sewer
Fund
Notes
Payable
Sewer
Fund
Bonds
Premiums
and
Discounts
Total
Outstanding
Debt
Percentage
of Personal
Income
Per
Capita
(in
dollars)
2012 $ 326,609 $ 210,530 $ 174,777 $ 157,211 $ 7,475 $ 10,140 $ 13,498 $ 23,176 $ 61,408 $ 574 $ 50,695 $ 2,003 $ 1,038,096 3.6 % $ 2.596 2013 309,793 176,850 367,394 162,874 6,690 7,815 39,228 20,219 56,895 291 48,710 1,885 1,198,644 4.1 % $ 2.929 2014 290,449 141,555 348,512 169,923 6,365 5,330 51,349 18,390 53,225 — 38,555 5,144 1,128,797 3.5 % $ 2.726 2015 206,530 109,955 330,433 165,290 6,020 3,150 65,645 25,989 49,445 — 36,630 4,801 1,003,888 2.9 % $ 2.393 2016 201,830 91,110 313,223 159,476 5,685 2,060 71,849 24,054 45,512 — 34,665 4,458 953,922 2.6 % $ 2.244 2017 216,655 71,335 296,854 149,896 5,335 8,021 67,802 23,246 41,384 — 32,620 4,115 917,263 2.3 % $ 2.142 2018 317,605 60,025 271,580 136,371 3,585 22,250 54,046 27,934 37,049 — 30,495 3,772 964,712 2.3 % $ 2.248 2019 301,655 54,905 246,872 118,643 3,295 18,125 53,267 26,008 32,499 — 28,260 3,430 886,959 2.1 % $ 2.059 2020 472,170 49,180 222,556 96,514 2,940 4,250 43,743 26,466 27,721 — 25,985 3,086 974,611 2.3 % $ 2.247 2021 450,075 43,165 198,564 69,703 2,590 — 28,842 24,657 22,703 — 23,616 2,743 866,658 1.9 % $ 1.990 Source: Notes to Basic Financial Statements.

Notes: Refunding losses have been removed from this schedule compared to prior years as they are no longer reported as part of the carrying amount of related debt. Per Schedule 17 the same personal income base is used for both 2020 and 2021.

CITY OF OAKLAND

STATISTICAL SECTION
163
SCHEDULE 13

RATIOS OF GENERAL BONDED

DEBT OUTSTANDING
(in thousands)
Fiscal
Year
Pension
Obligation
Bonds
General
Obligation
Bonds
Less:

Amounts
Restricted to
Repaying
Principal Total
Assessed
Value (1) Tax Rate
Per
Capita (2)
(in dollars)
2012 $174,777 $326,609 $28,312 $473,074 $38,856,435 0.0122 $ 1,183 2013 367,394 309,793 31,198 645,989 39,515,578 0.0163 1,579 2014 348,512 290,449 29,146 609,815 40,796,490 0.0149 1,473 2015 330,433 206,530 29,475 507,488 43,388,075 0.0117 1,210 2016 313,223 201,830 22,316 492,737 47,423,896 0.0104 1,160 2017 296,854 216,655 14,121 499,388 50,980,783 0.0098 1,168 2018 271,580 317,605 16,849 572,336 54,647,389 0.0105 1,335 2019 246,872 301,655 16,439 532,088 58,498,581 0.0091 1,238 2020 222,556 472,170 23,734 670,992 63,137,107 0.0106 1,552 2021 198,564 450,075 22,702 625,937 69,579,790 0.0090 1,437

Sources: (1) Alameda County Assessor.
(2) State of California Department of Finance, 1/1/21.

Note: Rates per $1,000 assessed value.

CITY OF OAKLAND

STATISTICAL SECTION
164
SCHEDULE 14

DIRECT AND OVERLAPPING

GOVERNMENTAL ACTIVITIES DEBT
Governmental Unit
Total Debt as
of 6/30/21
Estimated
Percentage
Applicable
City
Share of
Debt
Direct Debt
City of Oakland General Obligation Bonds $ 450,075,000 100 $ 450,075,000 City of Oakland Lease Revenue Bonds 43,165,000 100 43,165,000 City of Oakland Pension Obligation Bonds 198,564,000 100 198,564,000 City of Oakland Accreted Interest on Appreciation Bonds 69,703,000 100 69,703,000 City-Guaranteed Special Assessment District Bonds 2,590,000 100 2,590,000 City of Oakland Unamortized Premium and Discounts 24,657,000 100 24,657,000 City of Oakland Capital Leases 28,842,000 100 28,842,000 Total Direct Debt 817,596,000
Overlapping Tax and Assessment Debt
Alameda County $ 191,300,000 21.105 $ 40,373,865
Bay Area Rapid Transit District 1,871,890,000 8.167 152,877,256 East Bay Regional Park District 133,170,000 13.068 17,402,656 Chabot-Las Positas Community College District 593,290,000 0.918 5,446,402 Peralta Community College District 437,205,000 56.762 248,166,302 Berkeley and Castro Valley Unified School Districts 488,240,000 0.003 & 0.112 178,000 Oakland Unified School District 981,100,000 99.999 981,090,189 San Leandro Unified School District 316,756,547 9.033 28,612,619 City of Emeryville 1915 Act Bonds 510,000 4.183 21,333 City of Piedmont 1915 Act Bonds 3,252,419 5.479 178,200 Total Overlapping Tax and Assessment Debt 1,474,346,822 Overlapping General Fund Debt
Alameda County and Coliseum Authority General Fund Obligations $ 790,122,500 21.105 $ 166,755,354 Alameda-Contra Costa Transit District Certificates of Participation 11,655,000 24.991 2,912,701 Peralta Community College District Pension Obligation Bonds 133,284,008 56.762 75,654,669 Oakland Unified School District Certificates of Participation 14,995,000 99.999 14,994,850 Castro Valley Unified School District Certificates of Participation 4,500,000 0.112 5,040 Total Overlapping General Fund Debt 260,322,614
Total Direct and Overlapping Debt 2,552,265,436
Overlapping Tax Increment Debt (Successor Agency) 253,350,000 100 253,350,000 Combined Total Debt $ 2,805,615,436
Source: California Municipal Statistics, Inc. and City of Oakland.

Note: City of Oakland debt totals do not include obligations related to the Coliseum Authority. See Note II Part (I) - Joint Venture for additional information.

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SCHEDULE 15

LEGAL DEBT MARGIN INFORMATION
(in thousands)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Taxable Assessed Value (1) $ 29,609,166 $ 30,019,351 $ 31,171,373 $ 33,034,267 $ 35,491,114 $ 37,809,161 $ 54,647,390 $ 58,498,581 $ 63,137,107 $ 69,579,790 Debt limit (2) $ 1,110,344 $ 1,125,726 $ 1,168,926 $ 1,238,785 $ 1,330,917 $ 1,417,844 $ 2,049,277 $ 2,193,697 $ 2,367,642 $ 2,609,242 Total net debt applicable to
limit $ 326,608 $ 309,792 $ 290,449 $ 206,530 $ 201,830 $ 216,665 $ 317,605 $ 301,655 $ 472,170 $ 450,075 Legal debt margin $ 783,736 $ 815,934 $ 878,477 $ 1,032,255 $ 1,129,087 $ 1,201,179 $ 1,731,672 $ 1,892,042 $ 1,895,472 $ 2,159,167 Total net debt applicable to
the limit as a percentage of
debt limit (%) 29.4 % 27.5 % 24.8 % 16.7 % 15.2 % 15.3 % 15.5 % 13.8 % 19.9 % 17.2 % Sources: Alameda County Assessor and Notes to Basic Financial Statements, Note II, Part (G) - Long-Term and Other Obligations.

Notes:
(1) As of fiscal year 2018 reported assessed value includes former redevelopment areas. (2) Government Code Section 43605 provides for a legal debt limit of 15% of gross assessed valuation. This provision was enacted when assessed valuation was based upon 25% of market value, however, effective with the 1981-82 fiscal year each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments. In combination, the 25% and 15% computations result in a debt limit that is 3.75% of taxable assessed value.

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SCHEDULE 16

PLEDGED-REVENUE COVERAGE,

CITY OF OAKLAND SEWER BONDS, PORT OF OAKLAND,

OAKLAND REDEVELOPMENT AGENCY AND OAKLAND REDEVELOPMENT

SUCCESSOR AGENCY
(in thousands)
Fiscal Year
Net Revenue
Available for
Debt Service (1) Debt Service Coverage
SEWER BONDS (2)
2014 $ 22,789 $ 2,450 9.30
2015 27,544 3,643 7.56
2016 26,668 3,645 7.32
2017 23,308 3,646 6.39
2018 24,039 3,644 6.60
2019 24,471 3,648 6.71
2020 26,456 3,643 7.26
2021 23,164 3,627 6.39
PORT OF OAKLAND (3)
2012 $ 161,254 $ 108,175 1.49
2013 170,128 107,268 1.59
2014 160,769 98,191 1.64
2015 164,665 98,197 1.68
2016 158,982 98,880 1.61
2017 172,552 99,454 1.73
2018 180,422 98,902 1.82
2019 194,104 93,188 2.08
2020 165,301 93,160 1.77
2021 162,849 71,071 2.29

OAKLAND REDEVELOPMENT AGENCY/OAKLAND REDEVELOPMENT SUCCESSOR AGENCY (4)
2012 $ 81,475 $ 46,404 1.76
2013 83,057 46,574 1.78
Notes:
(1) Net revenue available for debt service is defined in the indentures for each bond issuance and is generally based on operating revenues less operating expenses, excluding depreciation and amortization, plus interest and investment income.
(2) Amounts are not shown for years prior to 2014 as the refunding bonds were issued that year. (3) Debt service amounts and coverage ratios reflect the Port's intermediate lien. For FY 2020-21 debt service amounts shown have been reduced to reflect the use of $13.4 million of federal grants and debt proceeds for repayment. Additional details may be found in the Port's separately published Annual Comprehensive Financial Report.
(4) Following the dissolution of redevelopment, pledged revenues for outstanding tax allocation bonds are equal to 100% of the associated legal obligation and coverage amounts are no longer reported. Coverage ratios shown reflect all-in debt service coverage; for coverage by issue please refer to the City of Oakland's historical Annual Financial Information Statements.

Sources: City of Oakland Annual Financial Information Statements, Port of Oakland.

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SCHEDULE 17

DEMOGRAPHIC AND ECONOMIC STATISTICS
Calendar
Year Population (1)
Personal Income
(thousands) (2)
Per Capita Personal
Income (3)
School
Enrollment (4)
Unemployment
Rate (%) (5)
2012 399,930 $ 28,817,694 $ 70,428 46,472 10.8
2013 409,180 29,504,121 71,255 46,486 9.0
2014 414,065 32,030,179 76,355 47,194 7.3
2015 419,490 35,098,292 82,639 48,077 5.9
2016 424,717 37,289,279 87,228 49,098 4.9
2017 427,493 39,944,451 93,165 49,760 4.2
2018 428,750 43,094,688 100,236 50,231 3.5
2019 429,932 45,360,302 104,921 50,202 3.4
2020 432,327 45,360,302 104,921 49,588 10.5
2021 435,514 45,360,302 104,921 48,704 7.7
Sources and Notes:
(1) California Department of Finance.
(2) U.S. Department of Commerce, Bureau of Economic Analysis. Data are available only for the San Francisco-Oakland-Hayward Metropolitan Statistical Area (MSA) and have been adjusted by the proportion of the population within the City of Oakland. Data for 2020 and 2021 are not yet available; 2019 data are reported for these years instead.
(3) U.S. Department of Commerce, Bureau of Economic Analysis. Data are presented for the San Francisco- Oakland-Hayward Metropolitan Statistical Area. Data for 2020 and 2021 are not yet available; 2019 data are reported for these years instead.
(4) California Department of Education.
(5) California Employment Development Department. Annual data are not yet available for 2021 but June 2021 data are reported above.

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SCHEDULE 18

PRINCIPAL EMPLOYERS
2021 2012
Employer
Number of
Employees Rank
Percent of
Total
Employment
Number of
Employees Rank
Percent of
Total
Employment
County of Alameda 8,000+ 1 4.2% 8,843 1 4.8%
Kaiser Permanente Medical Group and Kaiser
Foundation Hospitals 7,000+ 2 3.7% 4,418 3 2.4%
San Francisco Bay Area Rapid Transit District 4,000+ 3 2.1% 1,499 9 0.8% State of California 3,500+ 4 1.8%
City of Oakland 3,500+ 5 1.8% 4,073 6 2.2%
United Parcel Services 2,500+ 6 1.3%
Southwest Airlines Co 2,500+ 7 1.3%
Children's Hospital & Research Center/UCSF
Benioff Children's Hospital 2,000+ 8 1.0% 2,600 8 1.4% Highland Hospital 2,000+ 9 1.0%
Federal Express Corporation 1,500+ 10 0.8%
Oakland Unified School District N/A N/A 4,496 2 2.4%
Dreyer's Grand Ice Cream Inc N/A N/A 4,191 4 2.3%
Cost Plus, Inc N/A N/A 4,113 5 2.2%
Alta-Bates Summit Medical Center N/A N/A 3,623 7 2.0%
Peralta Community College District N/A N/A 1,400 10 0.8% Total, Ten Largest Employers 38,000 39,256
Source: City of Oakland Economic & Workforce Development Department.

Note: Employment data for affiliated entities of Kaiser Permanente are combined in 2021 but include only Kaiser Permanente Medical Group in 2012. Percent of total employment is based on June 2021 employment of 191,400 and 2012 annual employment of 184,600 as reported by the California Employment Development Department.

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SCHEDULE 19

FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES

BY FUNCTION/PROGRAM
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Function/Program
General government
Management services 280 280 169 205 224 239 235 235 235 250 Finance 63 55 124 128 134 132 136 138 138 145
Personnel resources 33 29 40 42 37 37 41 41 41 46
Information technology 60 55 59 54 70 76 72 72 72 71
Public safety
Police
Officers 634 621 633 710 760 761 731 748 750 734
Civilians 311 350 458 458 423 367 336 324 324 325
Fire
Firefighters and officers 411 410 393 426 427 462 450 435 435 435 Civilians 64 68 96 67 102 72 79 86 86 85
Community & human services
Library 134 138 139 136 132 154 153 184 184 221
Human services 218 219 219 214 213 187 178 192 193 185
Parks and recreation 83 84 82 85 88 85 79 81 81 92
Cultural arts/KTOP 8 8 8 8 N/A N/A N/A N/A N/A N/A
Neighborhood services N/A 4 N/A N/A N/A N/A N/A N/A N/A N/A Community & economic development
Housing & community development 44 43 45 45 44 50 48 54 54 62 Planning & building 119 111 111 107 118 121 136 144 144 145 Economic & workforce development N/A N/A 46 44 42 43 46 43 43 41 Public works 593 588 611 623 622 632 467 468 467 445
Transportation N/A N/A N/A N/A N/A N/A 226 230 230 239
Total 3,055 3,063 3,233 3,352 3,436 3,418 3,413 3,475 3,477 3,521 Note: Missing values result from the reorganization of City departments over time.

Source: City of Oakland Payroll Division.

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SCHEDULE 20

OPERATING INDICATORS BY

FUNCTION/PROGRAM
Function/Program 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 General Government
Building permits issued 13,696 13,513 14,680 15,117 18,693 17,259 14,331 13,013 11,812 12,784 Building inspections conducted 48,500 55,951 58,844 56,414 39,947 41,771 67,494 57,125 53,096 42,177 Authorized new dwelling units 237 486 420 806 1,641 3,101 4,272 2,512 1,656 1,159 Commercial value (in thousands) $ 150,613 $ 65,152 $ 100,239 $ 238,592 $ 306,809 $ 211,874 $ 359,016 $ 260,822 $ 301,304 $ 322,408 Residential value (in thousands) (1) $ 159,723 $ 253,516 $ 181,087 $ 246,776 $ 495,481 $ 638,944 $ 1,180,188 $ 827,832 $ 853,155 $ 380,814 Police
Dispatched calls 221,775 249,050 226,275 252,550 253,877 259,494 305,605 307,544 301,579 274,862 Field contacts 16,638 21,280 33,570 34,418 39,240 30,032 26,026 22,846 24,817 16,866 Physical arrests 10,617 7,908 7,577 12,224 12,911 12,047 11,194 9,484 7,215 6,989 Parking violations 368,641 326,030 331,692 323,542 330,615 313,222 306,000 317,175 267,923 259,026 Fire
Emergency responses 46,672 55,334 55,284 58,413 59,254 55,144 55,200 54,362 52,374 53,351 Fires extinguished 1,207 1,108 1,783 1,282 1,782 1,469 1,743 1,778 2,120 3,210 Inspections 2,390 3,292 3,292 2,398 2,862 3,143 3,467 7,541 10,751 8,432 Port of Oakland (2)
Imports (tonnage, thousands) 14,709 14,610 14,478 15,204 15,155 16,436 17,166 17,942 18,155 18,372 Exports (tonnage, thousands) 18,429 18,371 18,474 17,663 15,848 17,720 17,580 17,066 17,576 17,534 Total tonnage (thousands) 33,139 32,981 32,952 32,868 31,003 34,157 34,746 35,008 35,731 35,906 Containers 1,318,925 1,328,379 1,325,855 1,359,195 1,294,532 1,336,298 1,364,358 1,439,652 1,410,677 1,377,296 Other public works
Street resurfacing (miles) 21.21 3.95 16.95 9.6 9.4 8.8 15.4 N/A 30.73 44.1 Potholes repaired 11,614 12,005 9,719 13,751 14,117 17,733 13,550 18,629 12,299 12,460 Parks and recreation
Athletic field permits issued 409 409 409 429 450 450 380 501 178 54 Community center admissions (3) 1,790,720 1,144,097 902,414 698,273 1,174,383 N/A N/A 172,207 69,748 37,497 Library
Volumes in collection 1,268,857 1,259,091 1,245,060 1,130,583 1,120,958 1,193,188 1,178,304 1,155,686 1,260,149 1,329,593 Total volumes borrowed 2,619,930 2,576,157 2,534,678 2,421,548 2,560,066 2,130,170 2,241,795 2,518,321 2,380,197 1,289,555 Wastewater
Average daily sewage treatment
(thousands of gallons) 63,000 61,000 56,000 55,000 57,000 67,000 53,000 60,900 54,400 50,260 Source: City of Oakland, Port of Oakland, and East Bay Municipal Utility District.

Notes:
(1) Decreased values for residential permits in fiscal year 2021 reflect delays in permit issuance for multi-unit dwellings, which were offset by growth in permits issued for lower-value residential projects, such as remodels and accessory dwelling units. (2) Port of Oakland data based on prior calendar year; fiscal year data unavailable. (3) Community center admissions data is not available after 2016 on a basis comparable to earlier years due to a change in Parks & Recreation data systems.

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SCHEDULE 21

CAPITAL ASSET STATISTICS

BY FUNCTION/PROGRAM
Function/Program 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Aviation facilities
Airports operated 1 1 1 1 1 1 1 1 1 1
Paved airport runways 4 4 4 4 4 4 4 4 4 4
Total length of runways (in feet) 25,038 25,038 25,038 25,038 25,038 25,038 25,038 25,038 25,038 25,038 Area of airport (in acres) 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 Public safety
Police stations 7 7 7 7 7 7 7 7 7 7
Patrol units 634 610 600 619 697 745 715 692 743 671 Fire stations 25 25 25 25 25 25 25 25 25 25
Harbor facilities
Miles at waterfront 19 19 19 19 19 19 19 19 19 19 Berthing length at wharves (in
feet) 23,233 23,233 23,233 23,233 23,233 23,233 25,100 25,100 25,100 25,100 Harbor area (in acres) 779 779 779 779 779 779 779 779 779 779 Library branches 16 16 16 16 16 16 16 16 16 16 Museums 1 1 1 1 1 1 1 1 1 1
Other public works
Streets (in lane miles) 1,965 1,965 1,965 1,965 1,965 1,965 1,965 1,965 1,965 1,965 Streetlights 37,000 37,000 37,000 37,000 38,000 38,050 38,250 38,250 38,250 38,500 Traffic signals 720 632 635 639 642 643 646 646 692 695 Parks and recreation
Acreage 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Swimming pools 4 4 4 4 6 6 6 6 6 6
Tennis courts 44 44 44 44 44 44 44 41 39 39
Playgrounds 106 106 106 106 106 106 106 106 106 106 Baseball/softball diamonds 40 40 40 40 40 40 40 40 40 40 Soccer/football fields 15 15 15 15 15 15 15 15 17 17 Community centers 33 33 33 33 33 33 33 33 33 33 Wastewater
Sanitary sewers (miles) 29 29 29 29 29 29 29 29 29 29 Source: City of Oakland and Port of Oakland
Note: Harbor Facilities data based on prior calendar year; fiscal year data unavailable.

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Oakland City CouncilApril 19, 2022

Oakland City Council
April 19, 2022