AGENDA
REGULAR JOINT MEETING OF THE OAKLEY CITY COUNCIL/OAKLEY CITY
COUNCIL ACTING AS THE SUCCESSOR AGENCY TO THE OAKLEY
REDEVELOPMENT AGENCY/OAKLEY PUBLIC FINANCING AUTHORITY
Tuesday, December 12, 2023
6:30 PM
Oakley City Council Chambers located at 3231 Main Street, Oakley, California 94561.
Unless stated otherwise on the agenda, every item on the agenda is exempt from CEQA Guidelines Sections 15060(c), 15061(b)(3), 15273, 15378, 15301, 15323 and/or Public Resources Code Section 21065.
MISSION STATEMENT: The City of Oakley will create a resilient future that fosters and attracts a vibrant and evolving community that welcomes and values all people.
VISION STATEMENT: The City of Oakley celebrates our unique Delta lifestyle and small-town feel where we Live in a safe, dynamic community, Work together to build the future, and Play in our own backyard.
Agendas are posted in Oakley at Oakley City Hall-3231 Main Street, outside the gym at Delta Vista Middle School-4901 Frank Hengel Way and outside the Library at Freedom High School-1050 Neroly Road.
Agendas are also posted on the City’s Internet Website www.ci.oakley.ca.us.
A complete packet of information containing staff reports and exhibits related to each item is available for public review prior to an Oakley City Council and/or City Council Acting as the Successor Agency to the Oakley Redevelopment Agency/Oakley Public Financing Authority meeting at Oakley City Hall, 3231 Main Street, Oakley, CA 94561. Any writings or documents provided to a majority of the Oakley City Council, Oakley City Council Acting as the Successor Agency to the Oakley Redevelopment Agency or Oakley Public Financing Authority regarding any item on this agenda will be made available for public inspection, during regular business hours, at the front counter in the Main Lobby of the Oakley City Hall located at 3231 Main Street, Oakley, CA 94561. Agendas may be picked up at the Oakley City Hall located at 3231 Main Street, Oakley, CA 94561 for no charge. To request information regarding placement on the City’s agenda e-mail distribution list, please contact us at (925) 625-7000.
The City of Oakley provides social media options to stay connected to City Hall through Facebook, Twitter, Next Door and Instagram. Other opportunities to connect with City Hall include Engage In Oakley, Oakley OnDemand on the City's website, and by emailing [email protected].
If you have a physically challenging condition and require special accommodations, please call the City Clerk’s office at (925) 625-7000.
1 Please keep cell phones/electronic devices turned off during the meeting. Please be advised that City Council meetings are video recorded and attendees may appear on video.
Information Regarding Public Comment
Members of the public may address the Council on items of interest that are within the City’s jurisdiction. In compliance with State law, the council may not take actionor have discussion on any item that is not specifically listed on the agenda. Public comment on items not listed on the agenda will be heard under the Public Comments section of the agenda. Public comments on items listed on the agenda will be heard as the Mayor calls the items. In compliance with State law, the Council may not take action on an item that is not specifically listed on the agenda. If you would like to speak on any agenda item, please fill out a public speaker card available in the lobby and submit it to the City Clerk seated in the Council Chamber prior to the agenda item being called. The Mayor will call you by name to the podium to hear your comment.
PUBLIC COMMENTS ARE LIMITED TO THREE (3) MINUTES. Online public comments are accepted until 5 p.m. the day of the meeting and can be submitted at
https://www.ci.oakley.ca.us/online-public-comment-card/.
1.OPENING MATTERS
Oakley City Council/Oakley City Council Acting as the Successor Agency to the Oakley Redevelopment Agency/Oakley Public Financing Authority
1.1 Call to Order and Roll Call of the Oakley City Council/Oakley City Council Acting as the Successor Agency to the Oakley Redevelopment Agency/Oakley Public Financing Authority
1.2 Pledge of Allegiance to the Flag (Pixel, Hadley and Sloan Williams)
2.PUBLIC COMMENTS
At this time, the public is permitted to address the Oakley City Council/Oakley City Council Acting as the Successor Agency to the Oakley Redevelopment Agency/Oakley Public Financing Authority on non-agendized items.
3.CONSENT CALENDAR
Consent Calendar items are typically non-controversial in nature and are considered for approval by the Oakley City Council/ Oakley City Council Acting as the Successor Agency to the Oakley Redevelopment Agency/Oakley Public Financing Authority with one single action. Members of the audience, Staff or the Oakley City Council/ Oakley City Council Acting as the Successor Agency to the Oakley Redevelopment Agency/Oakley Public Financing Authority who would like an item removed from the Consent Calendar for purposes of public input may request the Mayor remove the item. The public may request to remove an item(s) to provide input by completing a public speaker card and submitting it to the City Clerk prior to the item(s) being called by the Mayor.
2 3.1 Approve Minutes from the Regular Joint City Council/City Council Acting as the Successor Agency to the Redevelopment Agency/Public Financing Authority Meeting Held November 14, 2023 (Libby Vreonis, City Clerk) Minutes 11-14-23
3.2 Accept Report Out of Closed Session Memo (Derek Cole, City Attorney) Memo
3.3 Approve 2024 Meeting Dates (Libby Vreonis, City Clerk) Staff Report
1. List of Proposed 2024 Meeting Dates for the Regular Joint Oakley City Council / Oakley City Council Acting as the Successor Agency to the Oakley Redevelopment Agency/Oakley Public Financing Authority
2. City Council Resolution Approving 2024 Meeting Dates
3. Successor Agency Resolution Approving 2024 Meeting Dates
4. Public Financing Authority Resolution Approving 2024 Meeting Dates
3.4 Consideration of a Resolution Accepting the Five-Year Development Impact Fee Report and Making Required Findings (AB 1600 Annual Report) (Jeri Tejeda, Administrative Services Director)
Staff Report
1. Resolution
2. Five-Year Report
3.5 Consideration of a Resolution Repealing Resolution 103-19 and Designating a Board Member and an Alternate Board Member to the Municipal Pooling Authority of Northern California (MPA) (Jeri Tejeda, Administrative Services Director)
Staff Report
1. Resolution
3.6 Consideration of a Resolution Approving the City’s Investment Policy for Fiscal Year 2023/2024 (Jeri Tejeda, Administrative Services Director) Staff Report
1. Resolution
2. Statement of Investment Policy
3.7 Approval of a Modified Response to Civil Grand Jury Report No. 2306, Affordable Housing, “A Plan Without a Home” (Joshua McMurray, City Manager)
Staff Report
3 1. September 12, 2023 Staff Report
2. November 16, 2023 Letter from the 2023-2024 Civil Grand Jury Foreperson
3. Draft Response from the City of Oakley
4.PUBLIC HEARINGS
5.REGULAR CALENDAR
5.1 Consideration of a Resolution Accepting the Annual Comprehensive Financial Report (ACFR), Memorandum on Internal Control, Required Communications and Report on Agreed Upon Procedures for Fiscal Year 2022-2023 (Jeri Tejeda, Administrative Services Director)
Staff Report
1. Resolution
2. FY 2022-2023 ACFR
3. FY 2022-2023 Memorandum on Internal Control
4. FY 2022-2023 Required Communications
5. FY 2022-2023 Gann Limit Report
5.2 Adopt a Resolution Approving the City Council Committee Appointment List for 2024 (Libby Vreonis, City Clerk)
Staff Report
1. Proposed 2024 City Council Committee Appointment List
2. Resolution
5.3 Adopt a Resolution to Extend the Affordable Housing Advisory Ad-Hoc Committee (Danielle Navarro, Assistant City Manager)
Staff Report
1. Proposed Resolution
6.REPORTS
6.1 CITY MANAGER
(a) City Manager
(b) Business License Update
November New Business Licenses
6.2 OAKLEY CITY COUNCIL/OAKLEY CITY COUNCIL ACTING AS THE
SUCCESSOR AGENCY TO THE OAKLEY REDEVELOPMENT AGENCY
(a) Reports from Council Liaisons to Regional Committees, Commissions and 4 Boards AND Oakley City Council/Oakley City Council Acting as the Successor Agency to the Oakley Redevelopment Agency
(b) Requests for Future Agendas
7.WORK SESSIONS
8.CLOSED SESSION
9.ADJOURN
5 Minutes of the Regular Joint Meeting of the Oakley City Council/Oakley City Council Acting as the Successor Agency to the Oakley Redevelopment Agency/Oakley Public Financing Authority held November 14, 2023
1) OPENING MATTERS
1.1 Call to Order and Roll Call of the Oakley City Council/Oakley City Council Acting as the Successor Agency to the Oakley Redevelopment Agency/Oakley Public Financing Authority
Mayor Aaron Meadows called the meeting to order at 6:30 p.m. in the Oakley City Council Chambers located at 3231 Main Street, Oakley, California. Vice Mayor Anissa Williams and Councilmembers Dr. George Fuller, Hugh Henderson and Shannon Shaw were also present.
1.2 Pledge of Allegiance to the Flag (DJ Whigham, Iron House Elementary School Student)
Ironhouse Elementary School student DJ Whigham led the Pledge of Allegiance to the Flag.
1.3 Proclamation Recognizing Law Enforcement Records and Support Personnel Day (Paul Beard and PD Staff)
Mayor Meadows presented the proclamation to Chief Paul Beard and Police staff members Yvette Fagardo, Jennifer Padavana, and Chanise Alexander.
1.4 Presentation on the Marsh Creek Watershed Council (MCWC) and Friends of Marsh Creek Watershed (FoMCW) (Victoria Woolfolk, Watershed Conservation Coordinator, Contra Costa Resource Conservation District) Victoria Woolfolk, Watershed Conservation Coordinator, Contra Costa Resource Conservation District, provided a PowerPoint presentation.
Dr. Fuller inquired how agriculture fits in within their goals and mission.
Ms. Woolfolk responded that their agriculture team works with producers, working landowners and managers to implement more sustainable practices, such as soil conservation, increasing habitat and biodiversity, and planting native plants along edges of farms and working land to help with run off. She mentioned they can also help them apply for grants.
Vice Mayor Williams inquired what they are doing to get youth more involved and suggested they engage the Oakley Youth Advisory Council.
6 Ms. Woolfolk responded that they want to include as many youths as possible. She shared that they have worked with Earthteam, a non-profit that works with highschoolers to provide environmental education, career building and internship opportunities. She mentioned everyone is welcome to their events of any age. She provided her contact cards on the back table of the Council Chambers.
Public Comment
Bud Chaddock provided comments on salmon spawning and poaching in Marsh Creek. 2) PUBLIC COMMENTS
Tania Babcock provided written comments and spoke regarding safety in relation to the future Amtrak station and the Vintage Parkway neighborhood 5’5” wall. She requested a future agenda item to mitigate risks.
Sharon Kuykendall provided comments regarding safety in relation to current ingress and egress on E. Cypress Road, the proposed 4 lanes on E. Cypress Road in relation to the number of new homes and future population of that area, and the emergency exit route from Summer Lake.
3) CONSENT CALENDAR
3.1 Approve Minutes from the Regular Joint City Council/City Council Acting as the Successor Agency to the Redevelopment Agency and Special Meeting of the Oakley Financing Authority Meeting Held October 24, 2023 (Libby Vreonis, City Clerk)
No public comments were submitted.
Dr. Fuller requested item 3.3 be pulled and Vice Mayor Williams requested items 3.7 and 3.8 be pulled.
It was moved by Dr. Fuller and seconded by Councilmember Shaw to approve the remainder of the Consent Calendar. Motion was unanimous and so ordered. (5-0) Item 3.3
Dr. Fuller inquired if this is a state requirement of which the City must acquiesce.
Mr. Strelo explained that it is proposed that the City adopt the State’s density bonus so when changes are made to State law, the City is in compliance and does not have to amend its ordinance each time there is a change.
Dr. Fuller mentioned he will move it because it is a requirement but expressed concern that it is one more state requirement to control how housing should be developed at the local level. He mentioned there is movement for regional government with state bonds which makes him anxious.
It was moved by Dr. Fuller and seconded by Vice Mayor Williams to waive the second reading and adopt the ordinance. Motion was unanimous and so ordered. (5-0) 7 Item 3.7
Vice Mayor Williams inquired what this item represents to get road widening accomplished.
Public Works Director/City Engineer Kevin Rohani indicated if approved tonight, the City will issue payment to WAPA, the pole relocation will be done fall of next year concurrently with Laurel Road improvements, and the widening project should bid early 2025 with construction starting in the Spring 2025.
Dr. Fuller inquired how he managed to get the price so low compared to the previous project.
Mr. Rohani explained that the last project with WAPA had multiple and bigger poles whereas this project is less intrusive; it has 3 poles, 2 of which will be relocated and 1 that will be removed. He mentioned WAPA can come back later and ask for more as they did with the previous project; however, they have a good relationship, and he hopes this will take care of it.
He offered to include progress on the project in the CIP update in the New Year.
Dr. Fuller commented that this is a good start.
It was moved by Vice Mayor Williams and seconded by Dr. Fuller to adopt the resolution approving the Utility Relocation Agreement. Motion was unanimous and so ordered. (5-0) Item 3.8
Dr. Fuller mentioned it is his understanding that there is 15% of affordable housing on the unit that they conditioned for sale and they will have the option to obtain 15% of the land for a developer that can bring in affordable housing.
City Manager Joshua McMurray commented that is correct and mentioned the City is subject to the Surplus Land Act of which the standard is 25%. He explained that the City provided extensive notification to over 800 entities across the state and no letter of intent was submitted, therefore the percentage dropped to 15% which equates to 17 lots. He mentioned part of this deal is that LandSea will provide finished pads that are utility stubbed, as well as curb, gutter, sidewalk and all the improvements, and the City will take those lots and find an affordable housing partner to develop the 17 lots with affordable housing.
Vice Mayor Williams commented that the sale gives the City a significant amount of money for E. Cypress. She requested staff elaborate why the sale is so important for the City.
Mr. McMurray shared that the minimum gross profit from this sale is $7.35 million. He explained the City is proactively addressing E. Cypress Road with a Capital Improvement Project (CIP) for this Burroughs property where the City will construct the frontage improvements from Knightsen Avenue eastward to the canal. He further explained that in the current budget, the City included a CIP for the first phase (second step) of E. Cypress from the canal eastward to Bethel Island Road specifically for the canal. He added that a few meetings ago, the Council approved an agreement with the developer for the Grand Cypress Preserve to acquire the right of way to construct E. Cypress Road improvements from the canal to Bethel Island Road. He mentioned they must obtain plans and approvals, but they are actively working hard to ensure that work starts as soon as possible. He also mentioned they are ready to start work in front of the Burroughs property, there is a contractor lined up, funded by $10 million of funds dedicated by the City. He shared the City has allocated approximately $9.5 million to the canal crossing project and is actively coordinating with Contra Costa Water District (CCWD) for the improvements. He added that Phase 2 of that project will be in the Fiscal Year 2024/2025 budget and upward of $10-$15 million will be dedicated for right-of-way work to complete street 8 improvements. He explained the City has been taking major effort and hitting major milestones to complete the work and the deal is far from done, but it represents an important step to fund the improvements for Phase 2 of the E. Cypress Road improvements from the canal to Bethel Island Road.
Mayor Meadows inquired what is holding up the road improvements from Knightsen Avenue to the canal right now.
Mr. McMurray explained that the property doesn’t have water rights which involves an inclusion process to obtain water rights and CCWD is a partner to shepherd the process, but ultimately it is in the hands of the Federal Bureau of Reclamation. He mentioned they have been working on it for 2 years, they meet every two weeks to discuss the matter, and they have had federal and state representation try and move it forward.
It was moved by Vice Mayor Williams and seconded by Dr. Fuller. Motion was unanimous and so ordered (5-0).
3.2 Accept Report Out of Closed Session Memo (Derek P. Cole, City Attorney)
3.3 Waive the Second Reading and Adopt Ordinance No. 8-23 Repealing Oakley Municipal Code Section 9.1.412 and Replacing with Adoption of the State Density Bonus Law by Reference (RZ 03-23) and Finding the Action Exempt from the California Environmental Quality Act (CEQA) (Ken Strelo, Planning Manager)
3.4 Waive the Second Reading and Adopt Ordinance No. 9-23 Approving the Project Titled, Grand Cypress Preserve Development Agreements Master Amendment (DA 01-23) (Ken Strelo, Planning Manager)
3.5 City of Oakley Quarterly Investment Report (1st Quarter FY 2023/24) (Jeri Tejeda, Administrative Services Director)
3.6 City of Oakley as Successor Agency to the Oakley Redevelopment Agency Quarterly Investment Report (1st Quarter FY 2023/24) (Jeri Tejeda, Administrative Services Director)
3.7 Approval of the Utility Relocation Agreement between the City of Oakley and Western Area Power Administration (WAPA) to Relocate Electric Utility Poles to accommodate the Laurel Road Widening Project-Capital Improvement Project Number 280 (Kevin Rohani, P.E., Public Works Director/City Engineer)
3.8 Authorization to Execute a Purchase and Sale Agreement with Landsea Homes of California, LLC for the Sale of the Real Property Containing Approximately 27.0- Acres, Located at the Northeast Corner of E. Cypress Rd. and Knightsen Avenue (APN 032-081-025) (Joshua McMurray, City Manager)
3.9 Adopt a Resolution Authorizing Submittal of Individual Grant Applications for All Department of Resources Recycling and Recovery (CalRecycle) Grant Programs for which the City of Oakley is Eligible (Ken Strelo, Planning Manager)
3.10 Approval of an Agreement with NCE for Environmental Technical Studies and Permitting Services associated with Capital Improvement Project Number 189- Piper Lane Drainage Channel Trash Capture Device Project (Kevin Rohani, P.E., Public Works Director/City Engineer)
9 4) PUBLIC HEARINGS
4.1 2480 Oakley Road Subdivision 9537 Tentative Map Extension (TME 01-23) (Evan Gorman, Associate Planner)
Associate Planner Evan Gorman presented the staff report and provided a PowerPoint presentation.
Mayor Meadows opened the public hearing and called for public comments. There being none, he closed the public hearing.
It was moved by Councilmember Shaw and seconded by Councilmember Henderson to adopt the resolution. Motion was unanimous and so ordered. (5-0) 5) REGULAR CALENDAR
5.1 Adoption of 2023 Small Business Recovery Grant Program (Harumi Murata, Economic Development Analyst)
Economic Development Analyst Harumi Murata presented the staff report and provided a PowerPoint presentation.
Vice Mayor Williams inquired if 250 active business licenses are eligible for the grant, which Ms.
Murata confirmed around 250 is correct.
Vice Mayor Williams inquired if the businesses have shown interest that they will want to apply for the grants and if they have indicated if it will benefit them.
Ms. Murata shared that she has had at least 2-3 inquiries about this type of grant funding.
Vice Mayor Williams inquired if after the first, second and third cohort funds have not been exhausted, if an item can be brought back to Council to reallocate the funds to support businesses in a way they need to be supported.
Ms. Murata explained that funds could be reallocated, and she would be happy to tailor it specific to the criteria they are asking.
Dr. Fuller inquired if it is allowed for businesses doing business as an LLC or corporation, but not for non-profits.
Ms. Murata explained that this grant is for small businesses, excluding non-profits. She mentioned the City would first ask for revenue which is hard for a non-profit to document on paper. For business retention purposes, the focus is infrastructure for those businesses that demonstrated resiliency and viability during these trying years.
Dr. Fuller requested clarification that non-profits are not included, and Ms. Murata confirmed that is correct.
Vice Mayor Williams mentioned there are specific criteria, one being it must be a brick-andmortar location, and the City has 961 active business licenses with 60% of those being homebased. She mentioned she is not certain how many of the non-profits have a brick-and-mortar 10 location here. She also mentioned ARPA funding was already made available for non-profits; this is for small businesses.
City Manager Joshua McMurray explained that this focuses on small businesses, $185k of ARPA funding went to non-profits, and staff has worked over the past year to ensure that ARPA funding was dispersed to non-profits.
No public comments were submitted.
Dr. Fuller commented that every church in Oakley is brick-and-mortar and the East Contra Costa Historical Society just outside City limits is brick-and-mortar, so non-profits do exist in and around the City that are brick-and-mortar. He mentioned non-profits must incorporate to have 501(c)(3) status and in these cases if a business is doing business as (dba), an LLC, or a corporation they qualify, but non-profits get marginalized in the process. He mentioned establishments that do a lot for the community such as St Anthony’s St. Vincent de Paul, wouldn’t qualify because they are a 501(c)(3) non-profit.
Councilmember Shaw commented that she is excited to vote on this, funding was provided to non-profits, and she is excited to see this for small businesses.
It was moved by Councilmember Shaw and seconded by Vice Mayor Williams to adopt the resolution. Motion was unanimous and so ordered. (5-0)
5.2 City of Oakley Climate Action Plan Request for Proposals and Qualifications (RFP) for Planning Consulting Services--Request City Council approval of the RFP (Ken Strelo, Planning Manager)
Planning Manager Ken Strelo presented the staff report and provided a PowerPoint presentation.
Vice Mayor Williams inquired if it will be utilized to ensure we meet compliance with planning and zoning if adopted.
Mr. Strelo confirmed that is correct and mentioned staff will work with consultants to devise language to plug into the General Plan and look for ways for projects compliant with the Climate Action Plan to be streamlined through the California Environmental Quality Act process that can help developments that have certain GHG and emission targets get through the process quicker to help attract those kinds of businesses.
No public comments were submitted.
It was moved by Vice Mayor Williams and seconded by Dr. Fuller to adopt the resolution. AYES:
Fuller, Henderson, Shaw, Williams. NOES: Meadows. (4-1)
5.3 Second Amendment to Employment Agreement between the City of Oakley and Joshua McMurray (Derek Cole, City Attorney)
City Attorney Derek Cole presented the staff report.
No public comments were submitted.
It was moved by Councilmember Henderson and seconded by Dr. Fuller to adopt the resolution.
Motion was unanimous and so ordered. (5-0)
11 5.4 Appeal of Administrative Hearing Officer’s Decision Involving Fireworks at Crockett Park, Oakley, California on July 4, 2023; Citation No.: AC-23-000767 (Libby Vreonis, City Clerk)
City Clerk Libby Vreonis presented the staff report.
Dr. Fuller requested clarification who the appellant is, and Ms. Vreonis confirmed it is Ms.
Matthews.
Mayor Meadows invited Ms. Matthews to provide oral argument.
Ms. Matthews explained the firework was in the car under the seat and when the car was searched, it was found. She mentioned she had just returned from Stockton where fireworks are legal.
Mayor Meadows asked what reason(s) she is requesting the fine be dismissed.
Ms. Matthews indicated she is a college student and still paying for college.
Mayor Meadows inquired where she goes to school.
Ms. Matthews responded she goes to San Diego State online and Los Medanos College. She mentioned it was just a sparkler, they couldn’t justify what it was, she admitted it was hers, and she was not lighting fireworks.
Councilmember Shaw requested clarification if the firework was outside or inside the car.
Ms. Matthews indicated it was in the car.
Vice Mayor Williams mentioned the officer on scene is not present and requested the body worn camera footage be played.
Chief of Police Paul Beard provided the footage to staff and it was played. He mentioned beforehand that the first 30 seconds is a buffering period where the video is silent. He mentioned at the point where there is sound is when the officer activated his camera.
Dr. Fuller asked which city Ms. Matthews resides in, how she managed to be in the car that night, and if she is employed now. He asked staff to confirm the amount of the fine and City Manager Joshua McMurray confirmed it is $500.
Ms. Matthews indicated she lives in Brentwood, her sister’s boyfriend informed her that the fireworks were going to happen in Oakley, so she went to watch, and she is employed.
Dr. Fuller inquired if the Council can sustain the violation or reduce it which City Attorney Derek Cole confirmed is within the Council’s authority and it also has the option to suspend it.
Dr. Fuller inquired where Ms. Matthews is employed and how much she makes.
Ms. Matthews responded she works for Markstein. She provided the amount she makes. 12 Vice Mayor Williams commented that even though she got the firework in Stockton, it is not legal in Oakley or Brentwood. She inquired if the Council upholds the fine if it has authority to divide payments into a management payment plan.
Mr. Cole explained that there have been a variety of Code Enforcement matters and the Council has always authorized staff, and staff has always worked with appellants, when instructed to develop a payment plan. He indicated that can happen here if it is the Council’s pleasure.
Vice Mayor Williams explained the reason for implementing the ordinance is because there is a huge fireworks issue within the City as the video demonstrates, and as much as she understands the financial hardship, she has concern that releasing the fine would undermine the purpose of the ordinance. She shared that she experienced a fire due to fireworks. She mentioned she believes they need to enforce the ordinance because if they dismiss the little ones it makes it harder to enforce the bigger ones. She mentioned if they sustain the citation, she would like staff to work with the appellant on a management payment plan.
Councilmember Shaw commented that the fine has already been reduced from $1,000 to $500 which she thinks is reasonable, and it was mentioned that the evidence did not support whether it was a large firework or a sparkler and taking Ms. Matthews word for it that it was a sparkler, the fine has already been reduced. She agreed with Vice Mayor Williams in that the ordinance is in place to make sure that people take it seriously to not bring fireworks to Oakley to protect all of its residents, and examples must be set, and she understands people make mistakes, but in terms of it impacting her future, it is a fine and undesirable, but if they approve a manageable payment plan, it can be a lesson learned, and the Council can be sure it is not setting an example that it will not just be waived when it is trying to be very strict on getting fireworks under control within the City.
Dr. Fuller commented he views the ordinance differently; when adopting an ordinance, the City is trying to cure a deficiency or correct a danger or nuisance, and people can bring it before them for adjudication, and in adjudicating, the Council can apply reasoning with the appellant.
He mentioned he finds that the appellant is taking responsibility for her actions, the fine was sustained, and people say it’s just a sparker, but if anyone has stepped on a hot sparkler, it can cause injury. He suggested they cut the fine in half and allow 6 payments.
Councilmember Henderson commented that the incident is sustainable, and the hearing officer already reduced the fine by 50%, so while he cannot support reducing it below $500 and it cannot be increased, he could see extending the payments out further.
Dr. Fuller suggested if they do that to go to 12 months for payment.
It was moved by Dr. Fuller and seconded by Councilmember Henderson to sustain the fine of $500 and provide direction to staff to enter into a payment plan between the City and appellant for payment of the fine over 12 months. Motion was unanimous and so ordered. (5-0)
5.5 Hearing for Special Assessment of Costs: 1430 Carpenter Road, Oakley, California (APN 034-070-031) (Libby Vreonis, City Clerk)
City Clerk Libby Vreonis requested confirmation if a representative of the property owner is present.
Mayor Meadows asked the audience if anyone was present to represent the property owner.
There being none, Ms. Vreonis proceeded with presentation of the staff report. 13 Dr. Fuller commented that he understands in the last two years there was a homicide at the property and an arrest was made, which City Manager Joshua McMurray confirmed is correct.
It was moved by Dr. Fuller and seconded by Vice Mayor Williams to adopt the resolution. Motion was unanimous and so ordered. (5-0)
5.6 Hearing for Special Assessment of Costs: 131 E. Ruby Street, Oakley, California (APN 035-133-012) (Libby Vreonis, City Clerk)
City Clerk Libby Vreonis requested confirmation if the property owner or a representative of the property owner is present.
Mayor Meadows mentioned she is approaching the podium.
Ms. Vreonis presented the staff report.
Vice Mayor Williams inquired if a payment plan could be set up rather than having it as an assessment on the tax roll, so it is more manageable.
Mayor Meadows commented that the property is currently for sale and there is an offer on it.
Mayor Meadows invited the property owner, Josephine Rodriguez, to provide oral argument.
Ms. Rodriguez commented that she is sorry about all of this, but it does have an offer and is due to close. She stated her age and that she is disabled.
Vice Mayor Williams inquired what happens to the amount owed if the property sells.
Mayor Meadows asked City Attorney Derek Cole to confirm if the amount would come out of the proceeds of sale by demand submitted through escrow.
Mr. Cole confirmed that they must follow the process of submitting it to the tax roll; however, because that would not occur until summer, they would immediately place the demand through escrow before the sale.
Ms. Vreonis indicated a Notice of Intent to Lien was recorded.
It was moved by Councilmember Shaw and seconded by Councilmember Henderson to adopt the resolution. Motion was unanimous and so ordered. (5-0) 14 6) REPORTS
6.1 CITY MANAGER
(a) City Manager
City Manager Joshua McMurray reported that the October new business license update has been provided. He announced that the Annual Tree Lighting ceremony will be held November 30 beginning at 5:30 p.m., Friday Night Bites will be held December 1, and the ribbon-cutting ceremony for the train platform will be held December 6 in the Downtown at 2 p.m. He wished everyone a Happy Thanksgiving.
(b) Business License Update
(c) City Attorney Report-Levine Act
City Attorney Derek Cole reported that he provided a Daily Journal article he wrote in the agenda packet regarding the Levine Act and he is available for any questions the Council may have.
Vice Mayor Williams inquired how candidates in the next election might be aware of these changes.
Mr. Cole explained that the FPPC has information on its webpage.
6.2 OAKLEY CITY COUNCIL/OAKLEY CITY COUNCIL ACTING AS THE SUCCESSOR
AGENCY TO THE OAKLEY REDEVELOPMENT AGENCY
(a) Reports from Council Liaisons to Regional Committees, Commissions and Boards AND Oakley City Council/Oakley City Council Acting as the Successor Agency to the Oakley Redevelopment Agency
Dr. Fuller reported he attended the Veterans Day ceremony. He thanked Supervisor Burgis for her speech regarding Vietnam. He also reported attending the Freedom Fuel Café at Freedom High School October 27 and another will be held November 3 and in December, he attended Cal State LA for an awards ceremony November 3, and he attended the Harvest Festival where many people and their dogs attended. He reported on ABAG election results and the BAHFA committee hearing he attended. He shared that he had over 125 trick-or-treaters and was glad to see a much more inclusive community and diversity of children.
Councilmember Shaw reported she attended the Tri-Delta Transit meeting and the Affordable Housing Ad-Hoc Advisory Committee meeting. She shared that The Oaks’ management team has a fully staffed maintenance crew as of 10/20, a new trash service to take out trash daily, and is working on pest control. She requested everyone provide The Oaks’ staff time to make changes and show improvements. She mentioned they have 78% occupancy and need it to be 92-93% and they are trying to get a better turnover rate for work orders for 3-5 days. She mentioned they have a meeting on 11/30 at 3 p.m. to address questions that came up during this past meeting, i.e., security, cameras, entry gate, inspection results, and they discussed pest maintenance plans and preventative maintenance plans. She also reported she attended the Twin Oaks grand opening but they were running behind and she had to leave early to go back to work, she completed the DA Academy November 1st, she attended the Mayors Conference November 2nd, she and Vice Mayor Williams met with Jamboree Housing who they are hoping to link with the City for affordable housing, and she attended the Veterans Day event. 15 Vice Mayor Williams reported “ditto” and that she will give more detail regarding the Tri-Delta meeting during the next Council meeting. She mentioned she and Councilmember Shaw met with Jamboree Housing at CalCities which she can discuss during the next item on agenda, she attended the Veterans Day ceremony, and she attended the Chamber of Commerce meeting.
Councilmember Henderson reported he attended the Diablo Water District meeting and Friday Night Bites. He commended staff on an excellent job on the Veterans Day program.
Mayor Meadows reported he attended the Mayors Conference, the Affordable Housing Ad-Hoc Advisory Committee Meeting, the Twin Oaks meeting, Friday Night Bites, and the Veterans Day ceremony.
(b) Requests for Future Agendas
Dr. Fuller requested a work session to ascertain the safety of the rail platform in the vicinity of the Downtown and Vintage Parkway which Vice Mayor Williams supported. 7) WORK SESSIONS
7.1 Library and O’Hara Residential Projects Design and Economic Feasibility Analysis Update (Joshua McMurray, City Manager)
City Manager Joshua McMurray presented the staff report.
Urban Field Studio representative Jane Lin, Urban Designer and Architect, along with Ryan Call, Architect, and Economic Planning Systems representative Tiefion Rice-Evans, Managing Principal, and Bex Allen, Associate, provided a presentation regarding the library, housing options at the O'Hara site, and residual land value.
Mr. McMurray explained that the building presented is feasible and it is important to live within means with the many priorities of the City. He explained the City is spending tens of millions of dollars to address E. Cypress, Laurel Road is a multi-million dollar project, and the library is another major project which is very important. He further explained that the City does not have capacity for $25 million to construct what they previously spoke about this year, the current library location was temporary, and he wants to present something realistic and achievable now.
He explained it will take team effort, the Council was supportive of higher density and in relation to residual land value, though it would generate substantial revenue, the City would get some of that, but not as much as thought. He mentioned they would dedicate about $2.5 mil from ARPA funding and $500k from public facilities fees established in 2004, but keeping in mind that they also have to pay off debt service with these fees for City Hall and the Recreation Center. He mentioned with city revenue and unassigned fund balance, he is confident there is about $4 mil from unassigned fund balance to dedicate, keeping 30% reserve intact. He mentioned about $9 million is available now to put into the project, providing about a 9,000 sq. ft. building (3 times the current size) and it takes the library off the high school campus and moves it to this campus.
He mentioned highlights of other funding sources such as grants. He mentioned the County received a $10 million grant for the Bay Point library and another round of funding will be available, hopefully next month. He mentioned he hopes the site plan and rendering will garner excitement in the community for the Friends of the Oakley Library to fundraise.
Ms. Lin added that in looking at Contra Costa County square footage per capita, Oakley is currently the lowest and this would be tripling the size of the current building. 16 Mr. Call commented that if they stay within the $9-$10 million benchmark, this will provide a nice product, and they can make sure there is flexibility in the concept if additional funding is raised.
Mr. McMurray mentioned they are seeking feedback; this is an opportunity for a starting point and to build upon.
Mayor Meadows inquired if it will it get the City $1.8 million in residual value.
Mr. McMurray explained that they do not know the answer. He explained when they interviewed a builder in the area the builder was not fond of the site for the type of funding they seek, but other affordable builders who use different funding may be more competitive, and that is why they would recommend leaving it open ended to make sure if there is a better way and someone is more creative, they have the mindset to be open to that.
Public Comments
Liz Fuller commented that in her 30 years of library experience, 9,000 square feet is not big enough and when they may want to expand, it will cost more, so it is better to build big upfront.
Supervisor Diane Burgis commented that Oakley is closer to having its own library than ever before and it is disappointing to see the numbers, but she doesn’t want to give up; she has more hope for a larger project. She mentioned if they are still asking questions about whether affordable housing can bring more money, she asked that they wait until February as she would like to work with representatives, the County Library Foundation, and the Friends of Oakley to see if they can get to $25 million. She mentioned there is a grant application process next month that could open up money and if they build smaller, it will cost more to build the next part.
She asked that they lean in and see what they can do.
Vice Mayor Williams inquired if they would still be able to develop some kind of rendering, so they do not miss the grant opportunity next month. She mentioned if there is $10 million for Bay Point, why not for Oakley. She mentioned that with the 55-acre park they didn’t get grant funding in relation to the rendering, and she doesn’t want to miss out on grant funding here.
Mr. McMurray mentioned they have time, they have the bones, and direction on the rendering will help.
Councilmember Shaw mentioned if there is hope and work that they can do, she would love to see if they can reach that number with a rendering and other potential source of funds and build the best library.
Mayor Meadows inquired if pushing it out would impact the timeline with the County and Mr.
McMurray indicated it would not.
Dr. Fuller inquired of the population that each of the five libraries in Berkeley serve.
Ms. Lin responded she will get a firm answer.
Mr. Call mentioned Berkeley also serves other communities such as El Cerrito as well as Oakland, so it is hard to pinpoint, but he can reach out to the Berkeley library to get foot traffic numbers.
Dr. Fuller inquired why Berkeley’s construction costs are lower. 17 Mr. Call explained that the costs are from 10 years ago but were high when built because of green-build requirements. He mentioned the Pleasanton example is high end and if they are judicious about supplies used, they could get it down to the Mountain House price.
Dr. Fuller mentioned $1.8-$2 million is a dream.
Mr. Evans mentioned it is optimistic, a dream would be more.
Dr. Fuller mentioned he doesn’t like to rely on grants and budget that way because many apply and few are approved, although Supervisor Burgis is pragmatic, and he agrees with what she has presented. He mentioned they are trying to put this together for a population of 43,000 and still growing so he would favor Supervisor Burgis getting access to more funding and connecting with other political figures. He suggested a repository library and work with federal or state government and tie the library to a project like O'Hara to go a lot further to sell the project and obtain other funding. He suggested putting it off to February. He mentioned he is not sure what other funding sources are available, but he is not big on bonds. He mentioned Oakley can’t do it on its own and suggested a lobbyist for the City could help, but it is expensive and maybe the City can’t afford it.
Councilmember Henderson commented that Oakley has needed a library for 20+ years and he is not sure if they can get to 24,000, but he is okay with extending to February or March and doing more work, but this team still needs to do what tasked with. He suggested splitting the difference build at 16,000, something to strive for but can live within means. He mentioned the community hasn’t had something to show to see what they can do with donations and local developers and bigger businesses. He suggested they find something attainable, design bigger knowing they have a scaled-down version, and split the difference.
Mayor Meadows expressed support for going after $25 million and having a rendering at the 24,000 square foot size. He mentioned if they shoot for 16,000 square feet that is what they will get; if they are not successful, they can back it down, but he thinks they should shoot for the stars and go big.
Councilmember Shaw agreed and mentioned she does not want to take affordable housing off the table if it can potentially bring the City some profit. She mentioned she and Vice Mayor Williams met with an organization that could potentially bring ideas for it. She supported shooting for the whole thing and scale back if needed.
Vice Mayor Williams agreed to shoot for the whole thing and scale back if needed. She mentioned this discussion left out seniors and veterans on the 9,000 square foot plan, and requested, if possible, to have alternate sites. She mentioned if they only get 16,000, she wants to have a back-up plan if they need a secondary spot and asked if there is a way to do that in the rendering.
Mayor Meadows mentioned architecturally he wants it to fit in with the rest of this campus.
Vice Mayor Williams inquired what the architectural style is of this campus.
Mr. Call mentioned it is traditional conservative and they will work with something complementary to this structure.
18 8) CLOSED SESSION
8.1 CONFERENCE WITH LEGAL COUNSEL?ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9: One Potential Case (letter from ACLU/EFF dated May 25, 2023, and email dated November 2, 2023)
Mayor Meadows read the closed session items into the record. He called for a break before going into closed session.
8.2 CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION
City of Oakley v. Scelsi, Contra Costa Sup. Ct. Case No. MSN16-1620 City of Oakley v. Rodriguez, Contra Costa Sup. Ct. Case No. N23-1091 County of Contra Costa et al. (and City of Oakley) v. Monsanto Company et al., Contra Costa Sup. Ct. Case No. C22-02818.
Schaefers v. BNSF Railway Company et. al. (and City of Oakley), Contra Costa Sup. Ct.
Case Nos. C22-01552 and C22-01555.
McCalister v. Moeckel at al. (and City of Oakley), Contra Costa Sup. Ct. Case No. C23- 00834
9) ADJOURN
There being no further business, the meeting was adjourned at 10:15 p.m.
Respectively Submitted,
Libby Vreonis
City Clerk
19 MEMORANDUM
City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.CI.Oakley.CA.US Date: November 15, 2023
To: Mayor and City Councilmembers
From: Derek P. Cole, City Attorney
CC: Joshua McMurray, City Manager
Subject: Closed Session Report-Out Memo
For Consideration at the City Council Meeting of December 12, 2023 Background and Analysis
The City Council considered the following closed session items during its regular meeting held November 14, 2023:
CONFERENCE WITH LEGAL COUNSEL-ANTICIPATED LITIGATION
Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9: One Potential Case (letter from ACLU/EFF dated May 25, 2023 and email dated November 2, 2023)
CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION
City of Oakley v. Scelsi, Contra Costa Sup. Ct. Case No. MSN16-1620 City of Oakley v. Rodriguez, Contra Costa Sup. Ct. Case No. N23-1091 County of Contra Costa et al. (and City of Oakley) v. Monsanto Company et al., Contra Costa Sup. Ct. Case No. C22-02818
Schaefers v. BNSF Railway Company et al. (and City of Oakley), Contra Costa Sup.
Ct. Case Nos. C22-01552 and C22-01555
McAlister v. Moeckel et al. (and City of Oakley), Contra Costa Sup. Ct. Case No.
C23-00834
Direction was provided to staff. There was no reportable action. 20 City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.CI.Oakley.CA.US Fiscal Impact
None.
Recommendation
Receive and file this report.
Attachments
None.
21 STAFF REPORT
City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.ci.oakley.ca.us DATE: December 12, 2023
TO: Joshua McMurray, City Manager
FROM: Libby Vreonis, City Clerk
SUBJECT: Regular Joint City Council / City Council Acting as the Successor Agency to the Oakley Redevelopment Agency/Oakley Public Financing Authority 2024 Meeting Dates
Background and Analysis
The regular joint Oakley City Council / Oakley City Council Acting as the Successor Agency to the Oakley Redevelopment Agency/Oakley Public Financing Authority meetings have traditionally been scheduled on the second and fourth Tuesdays of each month beginning at 6:30 p.m., and the second meetings in June, July, August, November and December have been canceled. Attached is a list of proposed meeting dates for 2024 for review and approval.
Consistency with the Oakley Strategic Plan 27+
This item is consistent with the Strategic Plan 27+ Community and Collaborative Partnerships Goals
Fiscal Impact
None
Staff Recommendation
Staff recommends that the Oakley City Council, Successor Agency and Public Financing Authority approve the attached list of proposed regular meeting dates for 2024 or approve other dates that would be more suitable.
Attachments
1. List of Proposed 2024 Meeting Dates for the Regular Joint Oakley City Council / Oakley City Council Acting as the Successor Agency to the Oakley Redevelopment Agency/Oakley Public Financing Authority
2. City Council Resolution Approving 2024 Meeting Dates
3. Successor Agency Resolution Approving 2024 Meeting Dates
4. Public Financing Authority Resolution Approving 2024 Meeting Dates Approved and
Forwarded to the
City Council
22 2024 REGULAR JOINT OAKLEY CITY COUNCIL/ OAKLEY CITY COUNCIL ACTING AS THE SUCCESSOR AGENCY TO THE OAKLEY REDEVELOPMENT AGENCY / *PUBLIC
FINANCING AUTHORITY MEETING DATES
Regular Joint Oakley City Council/Oakley City Council acting as the Successor Agency to the Redevelopment Agency meetings are held on the second and fourth Tuesdays at 6:30 pm in the Council Chambers, located at 3231 Main Street, Oakley, CA.
The meeting dates for 2024 are as follows:
January 9
January 23
February 13
February 27
March 12
March 26
April 9
April 23
May 14
May 28
June 11
July 9
August 13
September 10
September 24
October 8
October 22
November 12
December 10
No second meeting in the months of June, July, August, November and December *Oakley Public Financing Authority meetings will be held jointly with the Oakley City Council / Oakley City Council Acting as the Successor Agency to the Oakley Redevelopment Agency meetings the second Tuesday of each month unless otherwise noticed.
23 Resolution No. XX-23 Page 1 of 1
RESOLUTION NO. XX-23
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OAKLEY APPROVING 2024 MEETING DATES FOR THE REGULAR JOINT OAKLEY CITY COUNCIL/
OAKLEY CITY COUNCIL ACTING AS THE SUCCESSOR AGENCY TO THE
OAKLEY REDVELOPMENT AGENCY/OAKLEY PUBLIC FINANCING AUTHORITY BE IT RESOLVED by the City Council of the City of Oakley that the 2024 meeting dates Attached as Exhibit A for the Regular Joint Oakley City Council / Oakley City Council Acting as the Successor Agency to the Oakley Redevelopment Agency/Oakley Public Financing Authority are hereby approved.
PASSED AND ADOPTED by the City Council of the City of Oakley this 12th day of December, 2023 by the following vote:
AYES:
NOES:
ABSTENTION:
ABSENT:
APPROVED:
____________________
, Mayor
ATTEST:
____________________ ___________
Libby Vreonis, City Clerk Date
24 SA Resolution No. SA XX-23 Page 1 of 1
SA RESOLUTION NO. XX-23
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OAKLEY ACTING AS
THE SUCCESSOR AGENCY TO THE OAKLEY REDEVELOPMENT AGENCY APPROVING 2024 MEETING DATES FOR THE REGULAR JOINT OAKLEY CITY
COUNCIL/ OAKLEY CITY COUNCIL ACTING AS THE SUCCESSOR AGENCY TO
THE OAKLEY REDEVELOPMENT AGENCY/OAKLEY PUBLIC FINANCING
AUTHORITY
BE IT RESOLVED by the Oakley City Council of the City of Oakley, acting as the Successor Agency to the Oakley Redevelopment Agency, that the 2024 meeting dates attached as Exhibit A for the Regular Joint Oakley City Council / Oakley City Council Acting as the Successor Agency to the Oakley Redevelopment Agency/Oakley Public Financing Authority are hereby approved.
PASSED AND ADOPTED by the City Council of the City of Oakley this 12th day of December, 2023 by the following vote:
AYES:
NOES:
ABSTENTION:
ABSENT:
APPROVED:
____________________
, Mayor
ATTEST:
____________________ ___________
Libby Vreonis, City Clerk Date
25 Resolution No. PFA XX-23 Page 1 of 1
RESOLUTION NO. XX-23
A RESOLUTION OF THE OAKLEY PUBLIC FINANCING AUTHORITY APPROVING 2024 MEETING DATES FOR THE REGULAR JOINT OAKLEY CITY COUNCIL/
OAKLEY CITY COUNCIL ACTING AS THE SUCCESSOR AGENCY TO THE
OAKLEY REDEVELOPMENT AGENCY/OAKLEY PUBLIC FINANCING AUTHORITY BE IT RESOLVED by the City Council of the City of Oakley that the 2024 meeting dates attached as Exhibit A for the Regular Joint Oakley City Council / Oakley City Council Acting as the Successor Agency to the Oakley Redevelopment Agency/Oakley Public Financing Authority are hereby approved.
PASSED AND ADOPTED by the City Council of the City of Oakley this 12th day of December, 2023 by the following vote:
AYES:
NOES:
ABSTENTION:
ABSENT:
APPROVED:
____________________
, Chair
ATTEST:
____________________ ___________
Libby Vreonis, City Clerk Date
26 STAFF REPORT
City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.ci.oakley.ca.us DATE: December 12, 2023
TO: Joshua McMurray, City Manager
FROM: Jeri Tejeda, Administrative Services Director
SUBJECT: Development Impact Fee Five-Year Report
Background and Analysis
State law allows the City to charge fees to offset impacts associated with new development. Along with requirements related to the amount of the fees, nexus to impacts, and specifications for use of the fees, the Law requires that the City prepare annual five year reports for each fee program. The annual report must include a fee schedule, beginning and ending fund balances, revenues, expenditures, and project information. The five-year report must include information showing the fees are being spent timely and include supporting information about each program’s projects that support making a number of required findings. Once prepared and made available to the Public, it must also be presented to the City Council. The attached report is the City’s Five-Year Report for the period ending June 30, 2023, containing the prescribed information for each of the City’s Impact Fee Programs.
The legal requirements for enactment of a development impact fee program are set forth in the California Government Code sections 66000-66025 (the “Mitigation Fee Act”), the bulk of which was adopted as 1987’s Assembly Bill (AB) 1600 and thus are commonly referred to as “AB 1600 requirements”. Each fiscal year the City publishes a Development Impact Fee Report meeting the requirements of both California Government Code Section 66006(b) and 66001(d). The law also requires the report to be made available to the public within 180 days of the close of a fiscal year and that it be presented to the City Council at the next regular meeting not less than 15 days after it is made available to the public. This report was made available to the public on November 28, 2023.
Consistency with the Oakley Strategic Plan 27+
This item is consistent with our strategic plans, sustainable organization goal as we continue to strive for transparency and trust within the City.
Fiscal Impact
None
27 STAFF REPORT
CITY HALL | 3231 Main Street, Oakley, CA 94561 2
O (925) 625-7000 | F (925) 625-9859 | www.CI.Oakley.CA.US Staff Recommendation
Staff recommends that the City Council approve the Resolution accepting the attached Report and making the required findings pursuant to Government Code Sections 66000 et seq.
Attachments
1. Resolution
2. Five-Year Report
28 RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OAKLEY ACCEPTING
THE FIVE-YEAR DEVELOPMENT IMPACT FEE REPORT FOR THE PERIOD ENDING JUNE 30, 2023 AND MAKING REQUIRED FINDINGS AS REQUIRED BY GOVERNMENT CODE SECTIONS 66000 ET SEQ.
WHEREAS, in 1987 Assembly Bill 1600 (AB 1600) was adopted; and WHEREAS, State Law allows Cities to establish development impact fees to mitigate the impacts of new development on growing communities; and WHEREAS, the City of Oakley did, in 2003, adopt its existing development impact fee programs; and
WHEREAS, Sections 66000 et seq. of the California Government Code contains the provisions defining parameters of development impact fees, as well as reporting and maintenance requirements to ensure the ongoing appropriateness of the fees charged; and
WHEREAS, the attached Five-Year Report contains information that meets both the annual and five year reporting requirements described in the Code; and WHEREAS, State Law also requires that every five years the Council make the following specific findings for each fee program related to that portion of the account or fund remaining unexpended, whether committed or uncommitted:
a) Identify the purpose to which the fee is to be put;
b) Demonstrate a reasonable relationship between the fee and the purpose for which it is charged;
c) Identify all sources and amounts of funding anticipated to complete financing of incomplete improvements identified in the program;
d) Designate the approximate dates on which the funding referred to in c) is expected to be deposited into the appropriate account or fund; and WHEREAS, Staff recommends the City Council accept the attached report and incorporate it herein in order to make the required findings.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Oakley accepts the attached Five-Year Report and makes the following required findings for each of the City’s Development Impact Fee Programs, incorporating the information from the report into this resolution.
1. The report includes the stated purpose for each fee;
2. The report includes the amount of fees unexpended in each Fund at June 30, 2023 and sufficient detail regarding the expected use of the fees to demonstrate a reasonable relationship between the fee and the purpose for which it is charged;
29 3. The report includes the sources and amounts of funding anticipated to complete financing of incomplete improvements identified in each program;
4. The report was made available to the public on November 28, 2023, and within 180 day of the end of the fiscal year;
5. The report includes the approximate dates on which the funding is expected to be deposited into the appropriate account or fund to finance the incomplete improvements noted.
The foregoing resolution was introduced at a regular meeting of the City Council of the City of Oakley held on the 12th day of December 2023 and adopted by the following vote:
AYES:
NOES:
ABSTENTION:
ABSENT:
APPROVED:
MAYOR
ATTEST:
Libby Vreonis, CITY CLERK
30 Five Year Report
Development Impact Fees
For the City of Oakley
For Fiscal Year Ending June 30, 2023
Development Impact fees are fees, other than a tax or special assessment, which is charged by a local government agency to an applicant in connection with approval of a development project. The purpose of these fees is to defray all or a portion of the cost of public infrastructure related to the development project.
The legal requirements for enactment of a development impact program are set forth in the California Government Code sections 66000-66025 (the “Mitigation Fee Act”), the bulk of which was adopted as 1987’s Assembly Bill (AB) 1600 and thus are commonly referred to as “AB 1600 requirements.” The annual report must be made available to the public no later than 180 days after the end of the fiscal year, and must be presented to the City Council at least fifteen days after it is made available to the public. The five year report must be made available to the public following the fifth year the fees are collected and each five years thereafter.
This report is the City's Five-Year Report for the period ended June 30, 2023.
This report includes all of the Annual Report required data, and data that supports the findings required by the Code for the five-year period. Below, and on the following pages you will find for each fee program:
1. A brief description of the program.
2. Beginning and ending balances for the year.
3. Amount of fees collected and the interest earned during theyear.
4. Total Expenditures for the year.
5. A summary of fund balances and five year test.
6. A detailed list of current year disbursements by project, including the percentages funded by fees, including operating transfers.
7. Information listing the programs' projects expected to be funded with fees that have been collected but unspent, whether committed or not yet committed, including data from the City's most current Capital Improvement Plan.
8. A current schedule of fees.
31 The fee programs included in this report are the following:
Section A - Traffic Impact Fee Program
Section B - Park Impact Fee Program
Section C - Public Facilities Impact Fee Program
Section D - Fire Facilities Impact Fee Program
Program Descriptions
A. Traffic Impact Fee Program
The Traffic Impact Fee Program was established by the City on incorporation in 1999, and included separate Area of Benefit and Median Island Fees. In 2003, all of these programs were rolled up into a broader Traffic Impact Fee Program. The Program's stated purpose is to finance roadway improvements to reduce the impacts caused by future development in the City. The City accounts for the program in its Traffic Impact Fee Fund.
B. Park Impact Fee Program
In 2003, the City amended its existing Park Impact Fee Program. The stated purpose for the program is to acquire property and develop city parks to reduce the impacts caused by future development in the City. The City accounts for the program in its Park Impact Fee Fund.
C. Public Facilities Impact Fee Program
The Public Facilities Impact Fee Program was established by the City in 2003 to finance the acquisition, or design, engineering, construction and other costs related to the purchase or construction of the Civic Center, Community Center, and Corporation Yard detailed in the resolution establishing the fee. These facilities were identified as necessary to reduce the impacts caused by future development in the City. The City accounts for the program in its Public Facilities Impact Fee Fund.
D. Fire Facilities Impact Fee Program
The Fire Facilities Impact Fee Program was established by the City in 2003 to finance the acquisition, design, engineering, construction, upgrade and or other costs related to the improved fire facilities in Oakley and Knightsen. Specific projects were identified in the enabling legislation, although subject to revision by the City Council. 32 Attached Supporting Documentation
The pages following include the supporting documentation required to meet the annual program reporting requirements and to support the Council's ability to make the findings they are required to make for each program as part of this five year report.
The City's Capital Improvement Plan (CIP) is updated annually and provides a longerterm view of the City's plan for public improvements. The Fee Program revenues are budgeted and allocated through the annual CIP and City Budget process. References to CIP project numbers in the attachments have been provided where they are part of the adopted CIP.
33 Section A Summary of Annual Activity Fund Fee Interest & Fund Balance Income Misc Inc Expenditures Balance
06/30/22 22/23 22/23 22/23 06/30/23
$ 12,299,189 1,795,783 403,707 2,243,163 $ 12,255,516 *** ***
Section B Summary of Fund Balance
Five Year Revenue Test
Using First In First Out Method
Unspent Funds Representing Ending Fund Balance: Amount
Revenues Collected from FY 18/19 -
Revenues Collected from FY 19/20 -
Revenues Collected from FY 20/21 5,726,622
Revenues Collected from FY 21/22 4,329,404
Revenues Collected from FY 22/23 2,199,491
Deferred Impact Fees Receivable (606,402)
Total Ending Fund Balance $ 11,649,114
Section C Summary of Expenditures Future Future Future
Traffic Fee Add'l Appropriations & Funding
% % Funded Expenditures Appropriations Other Funding Sources & Expenditure Detail: CIP # Complete by Fee 22/23 23/24 - 27/28 23/24 - 27/28 Construction Administrative & Operating Expenditures 100% $ 340,979
Downtown Train Platform 205 33% 8% - 596,095 4,678,868 5,274,963 E. Cypress - Knightson Av Intersection Signal 247 14% 96% 1,262,802 9,038,355 406,352 9,444,707 O'Hara AV/Carpenter RD Intersection IMP 263 2% 100% 3,690 334,620 0 334,620 Main ST/Delta Intersection IMP 268 0% 100% - 200,000 0 200,000 Main ST/Brownstone Intersection IMP 269 0% 100% - 200,000 0 200,000 Hall St. Expansion 270 63% 100% - 28,000 0 28,000
Laurel RD Extension (Teton-Sellers) 273 38% 100% 86,446 224,660 0 224,660 FY22-23 Traffic Signal Modernization 278 100% 100% 200,198 - 0 0 Laurel RD Extension (Cloverbrook-O'Hara) 280 67% 100% 333,798 166,202 0 166,202 Bethel Island RD(Rock SLO Bridge-Delat) 285 100% 42% 15,250 - 0 0 $ 2,243,163 $ 10,787,933 $ 5,085,220 $ 15,873,153
TRAFFIC IMPACT FEES
Above includes $606,402 in deferred impact fees receivable from the Successor Agency to the Oakley Redevelopment Agency for a prior housing project. The balance is due on or before December 2063 at variable interest rate.
34 Section A Summary of Annual Activity Fund Fee Interest & Fund Balance Income Misc Inc Expenditures Balance
06/30/22 22/23 22/23 22/23 06/30/23
$ 5,906,365 898,632 500,961 832,807 $ 6,473,151 ***
***
Section B Summary of Fund Balance
Five Year Revenue Test
Using First In First Out Method
Unspent Funds Representing Ending Fund Balance: Amount
Revenues Collected from FY 18/19 -
Revenues Collected from FY 19/20 -
Revenues Collected from FY 20/21 2,485,102
Revenues Collected from FY 21/22 2,588,457
Revenues Collected from FY 22/23 1,399,593
Deferred Impact Fees Receivable (449,587)
Total Ending Fund Balance $ 6,023,564
Section C Summary of Expenditures Future Future
Park Fee Future Funding
% % Funded Expenditures Appropriations Additional Appropriations & Expenditure Detail: CIP # Complete by Fee 22/23 23/24 - 27/28 & Other Funding Sources Construction Administrative Fees & Expenses 100% 81,536 TBD
Oakley Regional Community Park 176 17% 16% 65,209 2,889,541 17,924 2,907,465 Holly Creek Restroom Construction 248 100% 100% 273,749 - - - Irrigation Well Install-Fredom Basin 265 0% 51% - 200,000 194,984 394,984 Enrico Cinquinin Park Construction 281 2% 100% 92,553 4,107,447 - 4,107,447 Holly creek Park Playground Resurfacing 284 100% 100% 319,760 - - - Koda Dog Park Shade Structure 287 0% 100% - 150,000 - 150,000 $ 832,807 $ 7,346,988 $ 212,907 $ 7,559,896
PARK IMPACT FEES
Above includes $449,587 in deferred impact fees
receivable from the Successor Agency to the
Oakley Redevelopment Agency for a prior housing
project. The balance is due on or before December
2063 at variable interest rate.
35 Section A Summary of Annual Activity Fund Fee Interest & Fund Balance Income Misc Inc Expenditures Balance
6/30/2022 22/23 22/23 22/23 06/30/23
$ 3,485,873 488,170 159,089 1,096,062 $ 3,037,070 ***
***
Section B Summary of Fund Balance
Five Year Revenue Test
Using First In First Out Method
Unspent Funds Representing Ending Fund Balance: Amount
Revenues Collected from FY 18/19 -
Revenues Collected from FY 19/20 -
Revenues Collected from FY 20/21 747,769
Revenues Collected from FY 21/22 1,642,042
Revenues Collected from FY 22/23 647,259
Deferred Impact Fees Receivable (143,904)
Total Ending Fund Balance $ 2,893,167
Section C Summary of Expenditures Future Future
Public Fac. Fee Future Funding
% % Funded Expenditures Appropriations Additional Appropriations & Expenditure Detail: CIP # Complete by Fee 22/23 23/24 - 27/28 & Other Funding Sources Construction Administrative Fees 100% $ 23,542 TBD
Transfer to Fund 351 2006 COP Debt Service Fund 100% 666,769 3,355,644 City Hall Roof Top Solar Proejct 286 54% 92% 324,259 275,241 50,000 $325,241 SR. Ctr Roof &HVAC Repair & Replacement 288 100% 100% $81,492 0 0 0 $ 1,096,062 $ 3,630,885 $ 50,000 $ 325,241
PUBLIC FACILITIES IMPACT FEES
Above includes $143,904 in deferred impact fees
receivable from the Successor Agency to the Oakley
Redevelopment Agency for a prior housing project.
The balance is due on or before December 2063 at
variable interest rate.
36 Section A Summary of Annual Activity Fund Fee Interest & Fund Balance Income Misc Inc Expenditures Balance
6/30/2022 22/23 22/23 22/23 6/30/2023
$ - - 617 617 $ - *
*
Section B Summary of Fund Balance
Five Year Revenue Test
Using First In First Out Method
Unspent Funds Representing Ending Fund Balance: Amount
Revenues Collected from FY 18/19 -
Revenues Collected from FY 19/20 -
Revenues Collected from FY 20/21 -
Revenues Collected from FY 21/22 -
Revenues Collected from FY 22/23 -
Total Ending Fund Balance $ -
Section C Summary of Expenditures Future Future
Fire Fac. Fee Future Funding
% % Funded Expenditures Appropriations Additional Appropriations & Expenditure Detail: CIP # Complete by Fee 22/23 23/24 - 27/28 & Other Funding Sources Construction Administrative Fees 100% $ 617 $ -
Co-Op Agreement with District for Station 55 $201,757 $136,023 $ 202,374 $ 136,023
FIRE PROTECTION FACILITIES IMPACT FEES
The conditions of approval for the Summerlake
Subdivision had required the developer of the
Summerlake Subdivision to construct a new Fire
Station on East Cypress Road across from this
subdivision. This task had been delayed for
several years, and finally in 2017 a settlement
was reached. A contractor and architect was
hired by the City for the design and build of this
new Fire Station. The project completed in FY
2020. The City entered into a Cooperative
agreement with the District and impact fees will
be remitted as they become available for the
additional costs of Station 55 that were
requested by the District. In FY 2021 an agreement
was made with the Fire District that all Fire Impact
Fees will be collected by the district at permit
issuance. The City is no longer collecting this fee
but will continue to do the reporting until the liability is paid off.
37 City of Oakley Impact Fee List
FY 23-24
Should you have any questions regarding
any of the impact fees, please feel free to
contact the Oakley Public Works and
Engineering Department or Planning
Division at (925) 625-7000.
Outside Agencies’ Phone Numbers:
• Ironhouse Sanitary District
(925) 625-2279
• Diablo Water District
(925) 625-3798
• Contra Costa County Flood
Control and Water Conservation
District
(925) 313-2000
• Oakley Union Elementary School
District
(925) 625-0700
• Liberty Union High School District
(925) 634-2166
• Antioch Unified School District
(925) 706-4100 (generally
properties west of Empire Avenue)
City of Oakley
3231 Main Street
Oakley, CA 94561
(925) 625-7000
City of Oakley Impact Fees
Fiscal Year 23-24
(Effective July 1, 2023)
This brochure provides a
summary of impact fees
associated with new
development and issuance of
building permits within the City of
Oakley.
A list of other agencies’ contact
information is also provided. It is
recommended any person
engaged in new development, or
that is receiving a building permit,
contact applicable outside
agencies for their current fees.
38 FY 23-24 Impact Fees by Land Use Category (fees are subject to change) Effective July 1, 2023
Fee Type
Single
Family
(per unit)
MultiFamily
(per unit)
Accessory
Dwelling
Unit***
(“ADU”)
Commercial
(per 1,000
sf,)
Commercial
Recreation
(per 1,000
sf.)
Business
Park (per
1,000 sf.)
Light
Industrial
(per 1,000
sf.)
Utility
Energy
(per 1,000
sf.)
Other (as
noted)
Oakley Traffic $14,960.88 $9,126.45 $4,289.43 $6,582.79 $8,826.61 $15,109.56 $8,826.61 $8,826.61 $14,960.88 (per peak hour trip)
RTDIM (Regional
Traffic) $23,785.50 $14,601.57 $6,862.74 $2,323.00 $2,323.00 $2,020.00 $2,020.00 $2,020.00 $27,983.06 (per peak hour trip) Park Acquisition $1,101.47 $719.86 $338.33 $162.31 $130.09 $324.62 $137.53 $137.53 Park Improvement $9,571.24 $6,254.45 $2,939.59 $1,409.98 $1,126.25 $2,817.48 $1,198.11 $1,198.11 Public Facilities $3,974.18 $2,602.16 $1,223.02 $586.84 $469.08 $1,171.75 $498.04 $498.04 General Plan* See “other” See “other” Not
charged See “other” See “other” See “other” See “other” See “other” $300.00 (per gross acre) South Oakley
Infrastructure Plan** See “other” See “other” Not charged See “other” See “other” See “other” See “other” See “other” $352.00 (per gross acre) Total $53,393.27 $33,304.49 $15,653.11 $11,064.92 $12,875.03 $21,443.41 $12,680.29 $12,680.29 * The General Plan fee is collected to reimburse the City for the costs associated with preparing and adopting the City’s General Plan. ** The SOIMP fee is collected to reimburse the City for the costs associated with preparing and adopting the SOIMP. *** ADU impact fees are only collected for ADUs that are 750 square feet or greater in floor area.
Additional fees may be required by outside agencies, such as sewer, water, school impact, and drainage fees. You are encouraged to contact the applicable agency to inquire about fee amounts. Some outside agency fees may be collected by the City and transferred to the applicable agency. For more information, see below:
• Contact Ironhouse Sanitary District at (925) 625-2279 for sewer connection fees. • Contact Diablo Water District at (925) 625-3798 for water service hook-up fees. • Contact Contra Costa County Flood Control and Water Conservation District at (925) 313-2000 for drainage impact fees. • Contact Oakley Union Elementary School District at (925) 625-0700 for school impact fees for all parcels east of Empire Avenue. • Contact Liberty Union High School District at (925) 634-2166 for school impact fees for all parcels east of Empire Avenue. • Contact Antioch Unified School District at (925) 706-4100 for school impact fees for all parcels west of Empire Avenue. • Contact Contra Costa Environmental Health at (925) 692-2500 for information on wells or septic systems. • Contact Contra Costa County Fire Protection District at (925) 941-3300 for related impact fees. 39 STAFF REPORT
City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.ci.oakley.ca.us DATE: December 12, 2023
TO: Joshua McMurray, City Manager
FROM: Jeri Tejeda, Administrative Services Director
SUBJECT: Consideration of a Resolution Repealing Resolution 103-19 and Designating a Board Member and an Alternate Board Member to the Municipal Pooling Authority of Northern California (MPA) Background and Analysis
At a regular meeting on September 11, 2019, the City Council adopted a resolution that designated the Finance Director as the City’s Board Member and the Assistant to the City Manager/Human Resources Manager as the City’s Alternate Board Member to the MPA. Since the Finance Director and the Assistant to the City Manager/Human Resources Manager position are no longer positions within the City we are required to update our resolution.
Staff believes these positions should continue to be held by those that work most closely with risk management and workers compensation claims and therefore recommend designating the Human Resource Manager as the Board Member and the Administrative Services Director as the Alternate Board Member. Either or both positions can attend MPA meetings, and the Alternate Board Member can vote on behalf of the City at Board meetings when the Board Member is not present at such meetings.
Having the two positions mentioned above participate in the MPA is expected to expand their knowledge of risk management issues and provide further benefit to the City of Oakley in the form of higher awareness of safety and liability concerns and lower numbers of claims or incidents that result in harm to the City, its residents, or its employees.
Consistency with the Oakley Strategic Plan 27+
This agenda item is consistent with the Strategic Plan 27+ goal for the City of Oakley sustainable organization and fiscal and financial responsibility.
Fiscal Impact
There is no fiscal impact.
Approved and
Forwarded to the
City Council
40 STAFF REPORT
CITY HALL | 3231 Main Street, Oakley, CA 94561 2
O (925) 625-7000 | F (925) 625-9859 | www.CI.Oakley.CA.US Staff Recommendation
Staff recommends the Council adopt a Resolution Repealing Resolution No. 103-19 and Designating a Board Member and an Alternate Board Member to the Municipal Pooling Authority of Northern California (MPA).
Attachments
1. Resolution
41 RESOLUTION NO. __-
A RESOLUTION OF THE OAKLEY CITY COUNCIL REPEALING RESOLUTION 103-19 AND DESIGNATING A BOARD MEMBER AND AN ALTERNATE
BOARD MEMBER TO THE MUNICIPAL POOLING AUTHORITY OF
NORTHERN CALIFORNIA
WHEREAS, the City Council of the Cit of Oakley is a member of the Municipal Pooling Authority of Northern California (MPA); and
WHERAS, the City Council previously adopted Resolution No. 103-19 designating the Finance Director as the City’s Board Member and the Assistant to the City Manager/HR Manager as the City’s Alternate Board member to the MPA; and WHEREAS, the Finance Director and Assistant to the City Manager/HR Manager are no longer position titles for the City; and
WHEREAS, the Human Resources Manager and the Administrative Services Director continue to be most directly involved in risk management and worker’s compensation; and
WHEREAS, the City would like to designate the Human Resources Manager as the Board Member and the Administrative Services Director as the Alternate Board Member.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Oakley does hereby repeal Resolution No. 103-19; and
BE IT FURTHER RESOLVED that the Human Resources Manager is hereby designated as the City’s Board Member to the MPA, and the Administrative Services Director is hereby designated as the City’s Alternate Board Member to the MPA.
PASSED AND ADOPTED by the City Council of the City of Oakley at a meeting held on the 12th of December, 2023 by the following vote:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
APPROVED: _______________________
42 MAYOR
ATTEST:
_______________________________
Libby Vreonis, CITY CLER K
43 STAFF REPORT
City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.ci.oakley.ca.us DATE: December 12, 2023
TO: Joshua McMurray, City Manager
FROM: Jeri Tejeda, Administrative Services Director
SUBJECT: Consideration of a Resolution approving the City’s Investment Policy for Fiscal Year 2023/2024
Background and Analysis
California Government Code Section 53646 and good financial practice recommends that local agencies prepare a written investment policy and that the governing body review and approve the policy on an annual basis.
The Policy being presented continues to incorporate all sections and information as recommendation by the Association of Public Treasurers of the United States and Canada and the California Municipal Treasurers Association, for Fiscal Year 2023/2024. It identifies Safety, Liquidity and Return on Investment, in that order, as the City’s Investment objectives; incorporates the “prudent investor” standard; and limits investments to those specifically approved by Government Code. Attached to this staff report is a red-lined copy of the proposed policy, showing the revisions that staff are recommending.
The attached proposed investment policy for Fiscal Year 2023/2024 includes changes that better align with the current practice of the City as well as updates the title of the Director, as during the reorganization of departments, the Finance Director title was eliminated.
Consistency with the Oakley Strategic Plan 27+
This agenda item is consistent with the Strategic Plan 27+ goal for the City of Oakley to leverage its financial resources for the long-term benefit of our residents and businesses while maintaining sufficient reserves to provide stability and ensure a successful future.
Fiscal Impact
There is no fiscal impact.
Approved and
Forwarded to the
City Council
44 STAFF REPORT
CITY HALL | 3231 Main Street, Oakley, CA 94561 2
O (925) 625-7000 | F (925) 625-9859 | www.CI.Oakley.CA.US Staff Recommendation
Staff recommends the Council adopt the attached Resolution Approving the City’s Investment Policy for Fiscal Year 2023/2024.
Attachments
1. Resolution
2. Statement of Investment Policy
45 RESOLUTION NO. __-
A RESOLUTION OF THE OAKLEY CITY COUNCIL APPROVING THE
INVESTMENT POLICY FOR FISCAL YEAR 2023-2024
WHEREAS, the City Council has established, and each year approves an Investment Policy regarding the investment of the City’s temporary idle cash; and WHERAS, the Policy delegates authority for investing the City’s funds to the Administrative Services Director; and
WHEREAS, the Policy specifies the City’s investment objectives in accordance with California Law and provides a framework for managing and investing the City’s funds in accordance with these objectives; and
WHEREAS, the Investment Policy itself requires the City’s Investment Policy be reviewed and approved by the City Council each year; and WHEREAS, the Administrative Services Director has reviewed the existing policy and recommends the City Council approve the attached policy for FY 2023-2024.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Oakley hereby approves the Investment Policy for FY 2023-2024 attached hereto as Exhibit A.
PASSED AND ADOPTED by the City Council of the City of Oakley at a meeting held on the 12th of December, 2023 by the following vote:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
APPROVED: _______________________
MAYOR
ATTEST:
_______________________________
Libby Vreonis, CITY CLERK
46 1 | P a g e
2023-24 Investment Policy
CITY OF OAKLEY
STATEMENT OF INVESTMENT POLICY
1. Purpose:
This statement provides guidelines for the prudent investment of the temporary idle cash of the City of Oakley (hereafter referred to as City) and outlines the policies for maximizing the efficiency of the City's cash management system. The goal is to enhance the economic status of the City while protecting its pooled cash.
2. Scope:
This Investment Policy (Policy) applies to all financial assets of the City. For purposes of this Policy, the City of Oakley includes the City, as Successor Agency to the Oakley Redevelopment Agency, and the Oakley Financing Authority, which are component units of the City of Oakley, controlled by the City Council, share the same administrative services of the City, and are "related entities" of the City. These funds are accounted for in the City's Annual Comprehensive Financial Report and include:
General Fund
Special Revenue Funds
Debt Service Funds
Capital Project Funds
Internal Service Funds
Trust and Agency Funds
The investment of bond proceeds held with trustees is directed by the City, but is governed by the restrictions on permitted investments in the applicable bond indenture or similar agreements.
The City retirement plans are with the California Public Employees Retirement System, and the City has no authority or oversight over the investments in any of the plans. Further, the City administers a deferred compensation plan through the ICMARetirement Corporation (ICMA-RC). Assets held in the ICMA plan are held in trust for the participants and are not assets managed by the City. The City does not have any authority over the investments held in these trusts.
3. Policy:
The City's cash management system should accurately monitor and forecast expenditures and revenues and allow the City to invest funds to the fullest extent possible, subject to the City's investment objectives, as described below. 47 2 | P a g e
2023-24 Investment Policy
4. Objectives:
The primary objectives, in priority order, of the City's investment activities shall be:
4.1. Safety: Safety of principal is the foremost objective of the investment program. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is required (as described in more detail in Sections 9 and 12 of this Policy).
4.2. Liquidity: The City's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated.
4.3. Return on investment: The City's investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the City's investment risk constraints and the cash flow characteristics of the portfolio.
5. Prudence
In accordance with California Government Code ("CGC") §53600.3, the Administrative Services Director or designee, who are authorized to make investment decisions on the City's behalf, are trustees and therefore fiduciaries subject to the "prudent investor standard":
"When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with the care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency."
6. Delegation of Authority:
Authority to manage the City's investment program is derived from the California Government Code Sections 53600 through 53609. Management responsibility for the investment program is hereby delegated to the Administrative Services Director (Director), who shall establish written procedures for the operation of the investment program consistent with this investment policy. Procedures should include reference to: safekeeping, repurchase agreements, wire transfer agreements, 48 3 | P a g e
2023-24 Investment Policy
collateral/depository agreements and banking service contracts. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the established procedures. The Director shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. The Director may also delegate investment decision making and execution authority to an investment advisor. The advisor shall follow the Investment Policy and such other written instructions as are provided. Independently of the City’s relationship with its investment advisor, the Director maintains the authority to purchase securities on behalf of the City, provided that they comply with the Investment Policy.
7. Ethics and Conflicts of Interest:
The investment responsibility carries with it the added duties of ensuring that investments placed are done so without the appearance of improper influence. Finance personnel involved in the investment function shall adhere to the state's Code of Economic Interest and to the following:
7.1. All persons authorized to place or approve investments shall annually submit a Statement of Economic Interest, also known as the Form 700. The Form 700 provides necessary information to the public about an official’s personal financial interests to ensure that officials are making decisions in the best interest of the public and not enhancing their personal finances. Additional guidance on disclosing potential conflicts of interest is available on the California Fair Political Practices Commission website.
7.2. Maintaining the Public Trust: All participants in the investment process shall seek to act responsibly as custodians of the public trust. Investment officials shall avoid any transaction that might impair public confidence in the City of Oakley's ability to govern effectively.
8. Authorized Financial Dealers and Institutions:
Should the City engage in investments outside of the use of savings, money market funds, and policy compliant investment pools (LAIF and CalTrust, etc.), the Director will establish and maintain a list of financial institutions authorized to provide investment services, and a list of approved security broker/dealers selected by credit worthiness, who maintain an office in the State of California. These may include "primary" dealers or regional dealers that qualify under Securities & Exchange 49 4 | P a g e
2023-24 Investment Policy
Commission Rule 15C3-1 (uniform net capital rule). No public deposit shall be made except in a qualified public depository as established by State laws.
All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions on the Director's list, must supply the Director with the following: Proof of National Security Dealers certification, trading resolution, proof of State of California registration, personal resume, certification of having read the City's investment policy, and depository contracts. In addition, a current audited financial statement is required to be on file for each financial institution and broker/dealer through which the City invests.
At a minimum, the task of maintaining a list of financial institutions and approved security broker/dealers shall include the Director's annual review of the financial condition and registrations of qualified bidders.
Before engaging in investment transactions with a broker/dealer, the Director shall have received from said firm a signed letter, attesting that the individual responsible for the City's account with that firm has reviewed the City of Oakley's Investment Policy and that the firm understands the policy and intends to present investment recommendations and transactions to the City that are appropriate under the terms and conditions of the Investment Policy.
If the City has an investment advisor, the investment advisor may use its own list of authorized broker-dealers to conduct transactions on behalf of the City.
Purchase and sale of securities will be made on the basis of competitive bids and offers with a minimum of three quotes being obtained, when practicable.
9. Authorized & Suitable Investments:
Investment of City funds is governed by the California Government Code Sections 53600 et seq. Within the investments permitted by the Government Code, the City seeks to further restrict eligible investment to the investments listed below. In the event an apparent discrepancy is found between this Policy and the Government Code, the more restrictive parameters will take precedence. The maximum allowable percentage limits and minimum credit quality requirements listed below apply at the time the security is purchased. 50 5 | P a g e
2023-24 Investment Policy
Credit criteria listed in this section refers to the credit quality of the issuing organization at the time the security is purchased. In the event of a downgrade below the minimum credit rating requirements listed below, the investment advisor, if so designated, must notify the Director of such downgrade within 15 days of the downgrade and will use their best professional judgment to determine the appropriate course of action.
Within the context of such limitations, the following investments are authorized, subject to the restrictions and limitations below:
Investment Type Maximum
Maturity
Maximum
Allowable
% of
Portfolio
Minimum Credit
Quality
Requirements
Gov’t Code
Section
Medium-Term Notes 5 years 30% "A" or equivalent
by an NRSRO
53601(k)
Mutual Funds
NIA 20% (10%
per fund)
"AAA" or
equivalent by two
NRSROs or
investment advisor
requirements
53601(1)(1)
Money Market Mutual
Funds
NIA 20%
"AAA" or
equivalent by tow
NRSROs or
investment advisor
requirements
53601(1)(2)
Asset-backed securities
5 years 20%
"AA" or
equivalent by an
NRSRO
53601(0)
Local Agency
Investment Fund
(LAIF)
NIA None None 16429.1
Shares of beneficial
interest in a Joint
Powers Authority (e.g.
Investment Trust of
California (CalTRUST)
or California Asset
Management Program
(CAMP))
NIA None None 53601(p)
Supranational
Obligations
5 years 30% "AA" or equivalent
by an NRSRO
53601(q)
Local Agency Bonds 5 years None None 53601(a)
U.S. Treasury
Obligations
5 years None None 53601(b)
51 6 | P a g e
2023-24 Investment Policy
State ObligationsCA and Others5 years None "A" or equivalent by an NRSRO
53601(d)
CA Local Agency
Obligations
5 years None "A" or equivalent
by an NRSRO
53601(e)
5 years None None 53601(f)
U.S. Agency/Government
Sponsored Enterprise
Obligations
Bankers' Acceptances 180 days 40% None 53601(g)
Commercial Paper- 270 days
or
Non-Pooled Funds less
25% "A-1" or equivalent
by an NRSRO 53601(h)
Commercial Paper- 270 days
or
Pooled Funds less
40% "A-1" or equivalent
by an NRSRO 53635(a)(l)
Negotiable
Certificates of Deposit
5 years 30% "A" or equivalent
by an NRSRO
5360l(i)
Placement Service
Certificates of Deposit
5 years 50%
FDIC or NCUA
coverage
53601.8 and
53635.8
Non-negotiable
Certificates of Deposit
5 years None None 53630 et seq.
Medium-Term Notes 5 years 30%
"A" or equivalent
by an NRSRO 53601(k)
Mutual Funds
NI
A
20% (10% per
fund)
"AAA" or
equivalent by two
NRSROs or
investment
advisor
requirements
53601(1)(1)
Money Market
Mutual Funds
NI
A
20%
"AAA" or
equivalent by two
NRSROs or
investment
advisor
requirements
53601(1)(2)
52 7 | P a g e
2023-24 Investment Policy
Asset-backed
securities 5
ye
ars
20%
"AA" or
equivalent by an
NRSRO
53601(0)
Local Agency
Investment Fund
(LAIF)
NI
A
None None 16429.1
Shares of beneficial
interest in a Joint
Powers Authority
(e.g. Investment Trust
of California
(CalTRUST) or
California Asset
Management Program
(CAMP))
NI
A
None None 53601(p)
Supranational
Obligations
5 yea
rs
30%
"AA" or
equivalent
by an NRSRO
53601(q)
NRSRO = Nationally Recognized Statistical Ratings Organization Prohibited Investments: Under the provisions of Government Code Sections 53601.6 and 53631.5, the City shall not invest any funds covered by this Investment Policy in inverse floaters, range notes, interest only strips derived from mortgage pools or any investment that may result in a zero-interest accrual if held to maturity.
Notwithstanding the prohibitions in the above paragraph, the City may invest in securities issued by, or backed by, the United States government that could result in zero- or negative-interest accrual if held to maturity, in the event of, and for the duration of, a period of negative market interest rates. The City may hold these instruments until their maturity dates.
10. Collateralization:
Collateralization will be required on investments in certificates of deposit (excluding negotiable certificates of deposit) over $250,000. Repurchase agreements are authorized and suitable investments, per California Code. However, the City does not choose to include them in its list of authorized and suitable investments, at this time.
If repurchase agreements were included in the list, they would also require collateralization. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be one hundred two percent (102%) of 53 8 | P a g e
2023-24 Investment Policy
market value of principal and accrued interest.
Collateral must be held by an independent third party with whom the City has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City and retained.
The right of collateral substitution is granted.
11. Safekeeping and Custody:
All security transactions entered into by the City shall be conducted on a deliveryversus-payment (DVP) basis. Securities will be held by a third-party custodian designated by the Director and evidenced by safekeeping receipts. For the investments that are managed by PFM, the Director has designated US Bank, who is tied to CAMP investments, as the third-party custodian. All CAMP-tied IPs have US Bank as their custodian and all securities are held there with CAMP being the sweep vehicle and keeper of cash. US Bank is the custodian for the City’s assets, and the City of Oakley believes that this arrangement with the City’s third-party investment manager (PFM) satisfies the safekeeping and custody requirements of this policy
12. Diversification:
The City will diversify its investments by security type and institution. Except as provided below, no more than five percent (5%) of the City's portfolio may be invested in any one institution, regardless of sector. The types of investments which are excluded from this limitation are:
• United States Treasury and federal agency/government-sponsored enterprise obligations,
• Supranational obligations,
• Bank certificates of deposit,
• Other certificates of deposit, and
• Money market funds and other pooled investment vehicles, including LAIF and shares of a JPA.
13. Maximum Maturities:
To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. Unless approved by the City Council at least three months prior to investment, the City will not directly invest in securities maturing more than 5 years from the date of purchase.
14. Reporting:
The Director is charged with the responsibility of including investment activities in the City's Annual Comprehensive Financial Report. Additionally, the Director shall provide a quarterly listing of investment transactions and a quarterly investment report to the City Council.
54 9 | P a g e
2023-24 Investment Policy
The quarterly investment report shall include the following information for each individual investment: description of investment instrument, issuer name, maturity date, credit rating, coupon rate, yield, purchase price, par value, book value, current market value and the source of the valuation. The quarterly investment report shall also state compliance of the portfolio to the statement of investment policy, or manner in which the portfolio is not in compliance and include a statement denoting the City's ability to meet its expenditure requirements for the next six months or provide an explanation as to why sufficient money may or may not be available.
15. Investment Policy Review:
The City's investment policy shall be reviewed by the Director and adopted by resolution annually by the City Council.
16. Other Constraints:
The City shall operate its investment portfolio within the many State and self-imposed constraints. It shall buy no stocks, shall not speculate, nor shall it deal in futures or options, or buy on margin. The City will not purchase inverse floaters, range notes, interest only strips or any security having an interest rate derived from an index, commodity price or other variable i.e. securities commonly known as derivatives.
17. Investment Pools/Mutual Funds
A thorough investigation of any pooled investment program and/or mutual fund is required prior to investing and on a continual basis. There shall be a questionnaire developed which will request the following information:
• A description of eligible investment securities, and a written statement of investment policy and objectives.
• A description of how interest is calculated and distributed, and how gains and losses are treated.
• A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited. • A description of who may invest in the program, how often, and what size of deposits and withdrawals are allowed.
• A schedule for receiving statements and portfolio listings. • Are reserves or retained earnings utilized?
• A fee schedule and method for assessing fee.
• Does the pool accept bond proceeds?
18. Internal Controls
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The Director is responsible for establishing and maintaining a system of internal controls to ensure that City assets are protected from loss arising from fraud, employee error, imprudent actions, theft or misuse, and to ensure compliance with this Policy, City-mandated procedures and federal and state laws. An internal control structure should include written procedures that encompass the following principles:
• Segregation of duties,
• Explicit delegation of authority and responsibility,
• Timely reconciliation and balancing,
• Documentation, recording, and record keeping,
• Management control and oversight,
• Dual or secondary authorization.
The control structure should cover timely projections of cash flow and funding needs, cash collection and disbursements, wire transfers, anti-theft and antifraud practices, depository and custody services, collateral management, broker/dealer services, trading and confirmation, and master repurchase agreements (if appropriate).
It should be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived, and (2) the valuation of costs and benefits requires estimates and judgments by management.
As part of its annual audit, the City’s auditor will review compliance with statues, policies and procedures.
19. Performance Standards
The investment portfolio shall be designed with the objective of principal preservation, liquidity and obtaining a market rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs.
In evaluating the performance of the City's portfolio in compliance with this Policy, it is expected that the City shall establish an appropriate performance benchmark and compare the total return of its portfolio to the total return of the benchmark.
The policy recognizes that reporting on a market basis will periodically cause market gains or losses to be reported. In most instances, such gains or losses will 56 11 | P a g e
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not be realized since individual securities may be held to maturity. However, it is also recognized that in the course of managing the City's investment portfolio, realized losses may be incurred from time to time as part of an actively managed portfolio strategy, if deemed appropriate and if such losses are incurred with the greater goal of purchasing new securities which are expected to produce higher earnings (net of realized losses) over time, or of improving the portfolio's overall credit quality or positioning.
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Glossary of Investment Policy Terms
Amortization of Costs: Reconciliation of the purchase price of a security and par value resulting in net interest.
Bank Deposit: Deposits in banks or other depository institutions that may be in the form of demand accounts (checking) or investments in accounts that have a fixed term and negotiated rate of interest
Bankers' Acceptance: A draft or bill or exchange accepted by a bank or trust company. The accepting institution, as well as the issuer, guarantees payment of the bill.
Benchmark: A passive index used to compare the performance, relative to risk and return, of an investor's portfolio.
Book Value: The value at which an asset is carried on a balance sheet.
Broker: A person or firm that acts as an intermediary by purchasing and selling securities for others rather than for its own account.
California Asset Management Program (CAMP): A pooled asset management program (joint powers authority) for California public agencies with professional investment services provided by PFM Asset Management LLC.
Cash Flow: A comparison of cash receipts (revenues) to required payments (debt service, operating expenses, etc.).
Certificate of Deposit (CD): A short-term, secured deposit in a financial institution that usually returns principal and interest to the lender at the end of the loan period.
CD Placement Service: A service that allows local agencies to purchase more than $250,000 in CDs from a single financial institution while still maintaining FDIC insurance coverage.
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Collateral: Securities, evidence of deposit or other property, which borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.
Collateralization of Deposit: Process by which a bank or financial institution pledges securities, or other deposits for the purpose of securing the repayment of deposited funds.
Commercial Paper (CP): An unsecured short-term promissory note issued by corporations or municipalities, with maturities ranging from 2 to 270 days.
Comprehensive Annual Financial Report (CAFR): The official annual report for the City. It includes combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with financerelated legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.
County Pooled Investment Funds: The aggregate of all funds from public agencies placed in the custody of the county treasurer or chief finance officer for investment and reinvestment.
Coupon: The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value.
Credit Rating: Various alphabetical and numerical designations used by credit rating or nationally recognized statistical rating organizations (NRSROs), institutional investors, Wall Street underwriters, and commercial rating companies to give relative indications of bond and note creditworthiness.
Long-term Ratings
The three most commonly used NRSROs are Standard & Poor's, Fitch Ratings, and Moody's. Standard & Poor's and Fitch Ratings use the same system, starting with their highest rating, of AAA, AA, A, BBB, BB, B, CCC, CC, C, and D for default. Moody's Investors Service uses Aaa, Aa, A, Baa, Ba, B, Caa, and Ca.
The top four letter categories are considered investment grade ratings. 59 14 | P a g e
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Each of the services use pluses (+), minuses (-), or numerical modifiers to indicate steps within each category. The S&P ratings from AA to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories. Moody's appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category.
Short-term Ratings
Standard & Poor's short-term ratings system is A-1+, A-3, B, C, and/ for default. Fitch Ratings use Fl+, F3, B, C, and/ for default. Finally, Moody's uses Pl and P3, anything below P3 is considered not prime.
Credit Risk: The chance that an issuer will be unable to make scheduled payments of interest and principal on an outstanding obligation. Another concern for investors is that the market's perception of an issuer/borrower's credit will cause the market value of a security to fall, even if default is not expected.
Custodian: A bank or other financial institution that keeps custody of stock certificates and other assets.
Dealer: Someone who acts as a principal in all transactions, including underwriting, buying, and selling securities, including from his/her own account.
Default Risk: The risk that issuers/borrowers will be unable to make the required payments on their debt obligations.
Delivery vs. Payment: The payment of cash for securities as they are delivered and accepted for settlement.
Diversification: The allocation of different types of assets in a portfolio to mitigate risks and improve overall portfolio performance.
Duration: Indicator of the effect of an interest rate change on a bond price.
The longer the duration, the greater the expected change in a portfolio's value when interest rates change.
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Federal Deposit Insurance Corporation (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per entity.
Financial Industry Regulatory Authority (FINRA): FINRA is the successor to the National Association of Securities Dealers (NASD) and the member regulation, enforcement and arbitration operations of the New York Stock Exchange. It is a non-governmental organization that regulates member brokerage firms and exchange markets. The government agency which acts as the ultimate regulator of the securities industry, including FINRA, is the Securities and Exchange Commission.
Government Sponsored Enterprises (GSE): Privately held corporations with public purposes created by the U.S. Congress to reduce the cost of capital for certain borrowing sectors of the economy. Securities issued by GSEs carry the implicit backing of the U.S. Government, but they are not direct obligations of the U.S. Government. For thisreason, these securities will offer a yield premium over Treasuries. Examples of GSEs currently include: Federal Home Loan Bank System (FHLB), Federal Farm Credit Banks Funding Corporation (FFCB), Federal Home Loan Mortgage Corporation (FHLMC), and the Federal National Mortgage Association (FNMA).
Interest: The amount a borrower pays to a lender for the use of his or her money.
Interest Rate Risk: Interest rate risk is the risk that an investment's value will change due to a change in the absolute level of interest rates, spread between two rates, shape of the yield curve, or any other interest rate relationship.
Liquidity: The measure of the ability to convert an instrument to cash on a given date at full face or par value.
Liquidity Risk: The risk that a security, sold prior to maturity, will be sold at a loss of value. For a local agency, the liquidity risk of an individual investment may not be as critical as how the overall liquidity of the portfolio allows the agency to meet its cash needs.
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Local Agency Investment Fund (LAIF): A voluntary investment fund open to government entities and certain non-profit organizations in California that is managed by the State Treasurer's Office.
Market Risk: The chance that the value of a security will decline as interest rates rise. In general, as interest rates fall, prices of fixed income securities rise. Similarly, as interest rates rise, prices fall. Market risk also isreferred to as systematic risk or risk that affects all securities within an asset class similarly.
Market Value: The price at which a security is trading and presumably could be purchased or sold at a particular point in time.
Master Repurchase Agreement: A written contract covering all future transactions between the parties to repurchase/reverse repurchase agreements that establishes each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer/lender to liquidate the underlying securities in the event of default by the seller/borrower.
Maturity: The date on which the principal or stated value of an investment becomes due and payable.
Medium Term Note: Corporate or depository institution debt securities meeting certain minimum quality standards (as specified in the California Government Code) with a remaining maturity of five years or less.
Money Market Mutual Funds: A sub-type of mutual funds that invest exclusively in short-term money market instruments. Seek the preservation of capital as a primary goal while maintaining a high degree of liquidity and providing income representative of the market for short- term investments.
Mutual Fund: An investment company that pools money and can invest in a variety of securities, including fixed-income securities and money market instruments.
National Credit Union Administration (NCUA): an independent federal agency that insures deposits at federally insured credit unions, currently up to $250,000.
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Nationally Recognized Statistical Rating Organization (NRSRO): A rating organization designated by the SEC as being nationally recognized.
Negotiable Certificates of Deposit: Generally, short-term debt instrument that usually pays interest and is issued by a bank, savings or federal association, state or federal credit union, or state-licensed branch of a foreign bank. The majority of negotiable CDs mature within six months while the average maturity is two weeks. Negotiable CDs are traded in a secondary market and are payable upon order to the bearer or initial depositor (investor). Negotiable CDs are insured by FDIC up to $250,000, but they are not collateralized beyond that amount.
Non-Negotiable Certificates of Deposit: CDs that carry a penalty if redeemed prior to maturity. A secondary market does exist for nonnegotiable CDs, but redemption includes a transaction cost that reduces returns to the investor. Non-negotiable CDs issued by banks and savings and loans are insured by the Federal Deposit Insurance Corporation up to the amount of $250,000, including principal and interest. Amounts deposited above this amount may be secured with other forms of collateral through an agreement between the investor and the issuer. Collateral may include other securities including Treasuries or agency securities such as those issued by the Federal National Mortgage Association.
Par Amount or Par Value: The principal amount of a note or bond which must be paid at maturity. Par, also referred to as the "face amount" of a security, is the principal value stated on the face of the security. A par bond is one sold at a price of 100 percent of its principal amount.
Portfolio: Combined holding of more than one stock, bond, commodity, real estate investment, cash equivalent, or other asset. The purpose of a portfolio is to reduce risk by diversification.
Premium: Premium means the difference between the par value of a security and the cost of the security, when the cost is above par. Investors pay a premium to purchase a security when the return to the investor (yield) is lower than the stated coupon (interest rate) on the investment.
Price: Price is the amount of monetary consideration required by a willing seller and a willing buyer to sell an investment on a particular date. 63 18 | P a g e
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Principal: The face value or par value of a debt instrument, or the amount of capital invested in a given security.
Prudent Investor Standard: A standard of conduct where a person acts with care, skill, prudence, and diligence when investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing funds. The test of whether the standard is being met is if a prudent person acting in such a situation would engage in similar conduct to ensure that investments safeguard principal and maintain liquidity.
Public Bank: A corporation, organized as either a nonprofit mutual benefit corporation or a nonprofit public benefit corporation for the purpose of engaging in the commercial banking business or industrial banking business that is wholly owned by a local agency, as specified, local agencies, or a joint powers authority.
Qualified Public Depository: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits.
Rate of Return: The yield obtainable on a security based on its purchase price or its current market price.
Repurchase Agreement: An agreement of one party (for example, a financial institution) to sell securities to a second party (such as a local agency) and simultaneous agreement by the first party to repurchase the securities at a specified price from the second party on demand or at a specified date.
Safekeeping: Offers storage and protection of assets provided by an institution serving as an agent.
Safety: In the context of investing public funds, safety relates to preserving the principal of an investment in an investment portfolio; local agencies address the concerns of safety by controlling exposure to risks.
Secondary Market: A market made for the purchase and sale of outstanding issues following the initial distribution.
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Supranational Institutions: International institutions formed by two or more governments that transcend boundaries to pursue mutually beneficial economic or social goals. There are three supranational institutions that issue obligations that are eligible investments by California local agencies: the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), and Inter-American Development Bank (IADB).
Total Return: Total return includesinterest, realized gains and losses, and unrealized gains and losses over a given period of time.
U.S. Agency Obligations: Bonds issued by agencies of the Federal government set up to supply credit to various classes of institutions.
Examples include the Small Business Administration (SBA) and the Government National Mortgage Association (Ginnie Mae). The timely payment of principal and interest on federal agency bonds are explicitly backed by the "full credit and faith and credit of the U.S. government," whereas government-sponsored enterprise (CSE) obligations receive the de facto backing of the federal government. Nevertheless, both U.S. agency obligations and government-sponsored enterprise obligations trade similarly and are often generally referred to collectively as "federal agency" obligations.
U.S. Treasury Obligations: Debt obligations of the U.S. Government sold by the Treasury Department in the forms of bills, notes, and bonds. Bills are short-term obligations that mature in one year or less and are sold at a discount. Notes are obligations that mature between one year and ten years.
Bonds are long-term obligations that generally mature in ten years or more.
Weighted Average Maturity: The average maturity of all the securities that comprise a portfolio, typically expressed in days or years.
Yield: The current rate of return on an investment security generally expressed as a percentage of the securities current price. 65 STAFF REPORT
City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.ci.oakley.ca.us DATE: December 14, 2023
TO: City Council
FROM: Joshua McMurray, City Manager
SUBJECT: Approval of a Modified Response to Civil Grand Jury Report No. 2306, Affordable Housing, “A Plan Without a Home”
Background and Analysis
The City Council approved the City’s response to The Contra Costa County Civil Grandy Jury issued Civil Grand Jury Report No. 2306, Affordable Housing, “A Plan Without a Home” on September 12, 2023. That response was provided to the Civil Grand Jury on September 13, 2023. The Civil Grand Jury sent the attached letter on November 16, 2023, stating that two of the City responses needed further clarification. Specifically, the City stated two areas “requires further analysis”. The response did not provide a date in which the analysis would be completed. Per Penal Code Section 933.05, the analysis needs to be completed within 6 months of the report date, which was June 14, 2023. That would require the analysis to be completed by December 14, 2023. Staff has had time to review the responses again, conduct additional analysis and has prepared the attached response which differs from the previously submitted response but captures our analysis of the two recommendations.
Consistency with the Oakley Strategic Plan 27+
These responses are consistent with the Strategic Plan 27+ Community and Economic Development goal.
Fiscal Impact
Costs include staff time to review and prepare the response to the Grand Jury Report.
Staff Recommendation
Approve the draft modified response to the Grand Jury Report and authorize the City Manager to send the response to the Civil Grand Jury.
Attachments
1. September 12, 2023 Staff Report
2. November 16, 2023 Letter from the 2023-2024 Civil Grand Jury Foreperson
3. Draft Response from the City of Oakley
Approved and
Forwarded to the
City Council
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Aaron Meadows
Mayor
Anissa Williams
Vice Mayor
Dr. George Fuller
Councilmember
Shannon Shaw
Councilmember
Hugh Henderson
Councilmember
City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.CI.Oakley.CA.US December 13, 2023
Contra Costa County Civil Grand Jury
P.O. Box 431
Martinez, CA 94553
Also via email to [email protected]
RE: City of Oakley’s Modified Response to Grand Jury Report No. 2306 “Affordable Housing: ‘A Plan Without a Home’”
Dear Foreperson Sarmento,
Pursuant to California Penal Code Section 933.05, this letter responds to your letter dated November 16, 2023, requesting that the City of Oakley submit a modified response to recommendation’s 8 and 10 included in the Grand Jury Report No. 2306, “Affordable Housing: ‘A Plan Without a Home’.” Although we did not commit to a time frame to complete the further analysis required for each recommendation, we have completed that analysis as of the date of this letter and the responses below reflect that.
The City Council reviewed and authorized this response at its December 12, 2023 City Council meeting.
R8. Cities should consider adopting an inclusionary housing ordinance as part of their standard development policy by the end of 2023 (if not already in place).
City response: The recommendation will not be implemented. The City has an adopted Housing Element which does not include any action programs to adopt an inclusionary housing ordinance. The City will satisfy the RHNA allocation per Policy Action 1.1 by rezoning sites where the base zoning would be amended to a minimum of 20 units per acre and maximum of 30 units per acre.
R10. Each city and the County should consider prioritizing Measure X funding requests that support projects that address RHNA targets for very low- and low-income residents. Each city and County should consider reporting regularly to their residents on the use of Measure X funds for such purposes.
City response: The recommendation will not be implemented. Measure X is a countywide 20-year, ½ cent sales tax approved by Contra Costa 124
City of Oakley | 3231 Main Street, Oakley, CA 94561 2
O (925) 625-7000 | F (925) 625-9859 | www.ci.oakley.ca.us County voters on November 3, 2020 “to keep Contra Costa’s regional hospital open and staffed; fund community health centers, emergency response; support crucial safety-net services; invest in early childhood services; protect vulnerable populations; and for other essential county services.” Under the Measure X Program Allocation Summary, only $10 million dollars (about 13% of FY 2022-23 funding and about 4.5% of total funding) were allocated to a Local Housing Trust Fund; for FY 2023-24, $12 million dollars were allocated. The Measure X Housing Funds are to be dispersed by the Department of Conservation and Development (DCD) and the Health Services’ Health, Housing and Homeless (HSD-H3) Services and the Housing Authority of the County of Contra Costa. The use of Measure X funds for housing are reported by the County here:
https://www.contracosta.ca.gov/8530/Measure-X The City does not need to duplicate the effort the County is putting forward to report on the use of Measure X funds.
Sincerely,
Joshua McMurray
City Manager
Enclosures:
CC: Aaron Meadows, Mayor
Anissa Williams, Vice mayor
Dr. George Fuller, Councilmember
Shannon Shaw, Councilmember
Hugh Henderson, Councilmember
Derek Cole, City Attorney
Danielle Navarro, Assistant City Manager
Brent Smith, Community Development Director
125
STAFF REPORT
City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.ci.oakley.ca.us Approved and
Forwarded to the
City Council
DATE: December 12, 2023
TO: Joshua McMurray, City Manager
FROM: Jeri Tejeda, Administrative Services Director
SUBJECT: Consideration of a Resolution Accepting the Annual Comprehensive Financial Report (ACFR), Memorandum on Internal Control, Required Communications and Report on agreed Upon Procedures for Fiscal Year 2022-2023.
Background and Analysis
The Fiscal Year 2022-2023 ACFR, including the City’s audited financial statements is attached. The Successor Agency to the Oakley Redevelopment Agency is also included in the ACFR. In accordance with State Law, the Auditors also performed agreed upon procedures to review our Appropriations Limit calculations and compliance. Maze and Associates performed the engagements and have issued an unmodified (clean) opinion on the financial statements, as presented.
The Auditor’s Memorandum on Internal Control and the Auditor’s Required Communications letter include the required communications from the Statement of Auditing Standards (SAS) No. 112 Communicating Internal Control Related Matters Identified in an Audit. SAS No. 112 requires that the Auditor report any “material weakness” or “significant deficiency” found during the audit. The attached Memorandum on Internal Control (MOIC) contains three (3) significant deficiencies for FY 2022/2023, to which staff has provided management responses. These can be found on pages 7-9 of attachment #3.
The Auditor’s “Report on Agreed Upon Procedures for Compliance with the Proposition 111 2022/2023 Appropriations Limit Increment” is also attached. The agreed upon procedures are less in scope than the audit, but in carrying out the procedures, the auditors walked through the calculation to ensure compliance with the appropriations limit calculation requirement. While there was a transposed number in the original calculation, it does not change that the appropriation limit is still within the limitation guidelines.
A representative of Maze & Associates will present the ACFR and other related documents to the City Council, which are attached to this staff report. City staff has prepared the transmittal letter, which starts on page i and the Management Discussion 126
STAFF REPORT
CITY HALL | 3231 Main Street, Oakley, CA 94561 2
O (925) 625-7000 | F (925) 625-9859 | www.CI.Oakley.CA.US and Analysis (MD&A), which starts on page 5 of the attached ACFR document. The MD&A is meant to help summarize much of the information that is provided in further detail in the ACFR report. Below are some highlights related to the City’s financial Health:
The net change in fund balance for the General Fund was a decrease of approx.$900,000 in Fiscal Year 2022/2023 and was anticipated due to the large one-time reserves transfer that was for capital projects. Among other shifts in the General Fund’s fund balance categories, the Capital Projects Reserve was decreased by $7.2 million as it was used to begin funding the Cypress Road Project.
General Fund Emergency Reserves are at 30% and shown on the ACFR as a separate line item to help the reader differentiate from fund balance that should only be used during times of economic downturn versus unassigned fund balance that is available for use.
Consistency with the Oakley Strategic Plan 27+
This agenda item is consistent with the Strategic Plan 27+’s Finance and Fiscal Responsibility Goal for the City of Oakley to leverage its financial resources for the long-term benefit of our residents and businesses while maintaining sufficient reserves to provide stability and ensure a successful future. It is also consistent with the Finance and Fiscal Responsibility objective to communicate on financial updates including financial health, priorities, and unexpected expenditures.
Fiscal Impact
There is no fiscal impact of adopting this resolution.
Staff Recommendation
Staff recommends the City Council adopt the attached resolution accepting the reports.
Attachments
1. Resolution
2. FY 2022-2023 ACFR
3. FY 2022-2023 Memorandum on Internal Control
4. FY 2022-2023 Required Communications
5. FY 2022-2023 Gann Limit Report
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RESOLUTION NO. ______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OAKLEY ACCEPTING
THE ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR), MEMORANDUM
ON INTERNAL CONTROL, REQUIRED COMMUNICATIONS, AND REPORT ON AGREED UPON PROCEDURES FOR FISCAL YEAR 2022-23
WHEREAS, each year the City hires an independent audit firm to complete an audit of the City’s books and records; and
WHEREAS, the City’s citizens, bondholders, bond insurers, rating agencies and others rely on the audited financial statements, and other related information published by the City to monitor the City’s financial health; and WHEREAS, the City publishes an Annual Comprehensive Financial Report (ACFR), which includes its audited Basic Financial Statements as defined in Governmental Accounting Standards, as well as Supplementary Information; and WHEREAS, the Auditor has as part of its most recently completed audit prepared a “Memorandum on Internal Control” outlining any significant deficiencies, material weaknesses, and/ or any additional suggestions the Auditor feels might be of benefit to the City; and
WHEREAS, the Auditor has prepared a letter of “Required Communications” which includes certain information related to the audit that professional standards require to be communicated to the City Council and management under generally accepted auditing standards, Government Auditing Standards and the Uniform Guidance; and
WHEREAS, the Auditor was also engaged to perform certain agreed upon procedures to verify the City’s Appropriations Limit calculations and has issued a report related thereto; and
WHEREAS, the ACFR, Memorandum on Internal Control, Required Communications and Report on Agreed Upon Procedures performed for Fiscal Year 2022-23 are attached hereto as Exhibits A, B, C and D.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Oakley accepts the attached ACFR, Memorandum of Internal Control, Required Communications and Report on Agreed-Upon Procedures performed for Fiscal Year 2022-23.
The foregoing resolution was introduced at a regular meeting of the City Council of the City of Oakley held on the 12th day of December 2023 and adopted by the following vote:
AYES:
NOES:
ABSTENTION:
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ABSENT:
APPROVED:____________________________
MAYOR
ATTEST:
___________________________
Libby Vreonis, CITY CLERK
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ANNUAL
COMPREHENSIVE
FINANCIAL
REPORT
FOR THE YEAR ENDED
JUNE 30, 2023
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CITY OF OAKLEY, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2023
PREPARED BY THE
FINANCE DEPARTMENT
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INTRODUCTORY SECTION
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CITY OF OAKLEY, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
Table of Contents
Page
INTRODUCTORY SECTION:
TABLE OF CONTENTS
Letter of Transmittal ................................................................................................................................................... i Organizational Chart ............................................................................................................................................. viii Elected Officials and Administrative Personnel ...................................................................................................... ix GFOA Certificate of Achievement ........................................................................................................................... x FINANCIAL SECTION:
Independent Auditor’s Report .................................................................................................................................. 1 Management’s Discussion and Analysis ................................................................................................................ 5 Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position ..................................................................................................................... 16 Statement of Activities .......................................................................................................................... 17 Fund Financial Statements:
Governmental Funds:
Balance Sheet .................................................................................................................................... 20 Reconciliation of the Governmental Funds Balance Sheet with the Statement of Net Position .............................................................................................................. 23 Statement of Revenues, Expenditures, and Changes in Fund Balances ........................................... 24 Reconciliation of the Net Change in Fund Balances Total Governmental Funds with the Statement of Activities ........................................................................................ 26 136
CITY OF OAKLEY, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
Table of Contents
Page
FINANCIAL SECTION (Continued):
Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:
General Fund ............................................................................................................................... 27 Lighting and Landscaping Districts ............................................................................................ 28 Public Protection ......................................................................................................................... 29 Low and Moderate Income Housing Asset ................................................................................. 30 Proprietary Funds:
Statement of Net Position ............................................................................................................ 32 Statement of Revenue, Expenses and Changes in Fund Net Position ........................................ 33 Statement of Cash Flows ............................................................................................................. 34 Fiduciary Funds:
Statement of Fiduciary Net Position ........................................................................................... 36 Statement of Changes in Fiduciary Net Position ........................................................................ 37 Notes to Basic Financial Statements ....................................................................................................... 39 Required Supplementary Information:
Schedule of the City’s Proportionate Share of the Net Pension Liability ................................................... 92 Schedule of Contributions ............................................................................................................................ 94 Supplemental Information:
Major Governmental Fund Other than the General Fund and Special Revenue Funds:
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Traffic Impact Fees ..................................................................................................................... 100 137
CITY OF OAKLEY, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
Table of Contents
Page
FINANCIAL SECTION (Continued):
Non-major Governmental Funds:
Combining Balance Sheets ............................................................................................................. 104 Combining Statements of Revenues, Expenditures, and Changes in Fund Balances ........................................................................................................................ 110 Combining Schedules of Revenues, Expenditures, and Changes in Fund Balances-Budget and Actual ........................................................................................ 116 Internal Service Funds:
Combining Statement of Net Position ............................................................................................ 126 Combining Statement of Revenue, Expenses and Changes in Fund Net Position ......................... 127 Combining Statement of Cash Flows ............................................................................................. 128
Custodial Funds:
Combining Statement of Net Position ................................................................................................ 130 Combining Statement of Changes in Net Position ............................................................................. 131 STATISTICAL SECTION:
Financial Trends:
Net Position by Component – Last Ten Fiscal Years .............................................................................. 137 Changes in Net Position – Last Ten Fiscal Years ................................................................................... 138 Fund Balances of Governmental Funds – Last Ten Fiscal Years ........................................................... 139 Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years .......................................... 140 Revenue Capacity:
Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ............................. 141 Property Tax Rates – All Overlapping Governments – Last Ten Fiscal Years ....................................... 142 Principal Property Tax Payers ................................................................................................................. 143 Property Tax Levies and Collections – Last Ten Fiscal Years ............................................................... 144 138
CITY OF OAKLEY, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
Table of Contents
Page
STATISTICAL SECTION (Continued):
Debt Capacity:
Ratio of Outstanding Debt by Type – Last Ten Fiscal Years .................................................................. 145 Computation of Direct and Overlapping Debt ........................................................................................ 146 Computation of Legal Bonded Debt Margin ........................................................................................... 147 Bonded Debt Pledged Revenue Coverage – Last Ten Fiscal Years ........................................................ 148 Demographic and Economic Information:
Demographic and Economic Statistics – Last Ten Fiscal Years ............................................................. 149 Principal Employers – Current Year and Nine Years Ago ...................................................................... 150 Operating Information:
Budgeted Full-Time Equivalent City Government Employees by Function – Last Ten Fiscal Years ....................................................................................................................... 151 Operating Indicators by Function/Program – Last Ten Fiscal Years ...................................................... 152 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years .................................................. 153
OTHER AUDIT REPORT
Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements performed in Accordance with Government Auditing Standards ............................................................................................................. 157 139
Aaron Meadows
Mayor
Anissa Williams
Vice Mayor
Dr. George Fuller
Councilmember
Shannon Shaw
Councilmember
Hugh Henderson
Councilmember
City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.CI.Oakley.CA.US December 12, 2023
To the Citizens of the City of Oakley,
and the Honorable Members of the Oakley City Council,
We are pleased to submit to you the City of Oakley’s Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2023. This report is published in accordance with State law that requires financial statements be presented in conformity with accounting principles generally accepted in the United States of America (GAAP) and audited in accordance with auditing standards generally accepted in the United States of America by a firm of licensed certified public accountants. It is also prepared to meet reporting standards set forth by the Governmental Finance Officers Association.
This letter of transmittal is designed to complement the Management’s Discussion and Analysis (MD&A) and should be read in conjunction with it.
The MD&A can be found immediately following the report of the independent auditors.
This report consists of management’s representations concerning the finances of the City. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, the management of the City has established a comprehensive internal control framework designed to both protect the government’s assets from loss, theft, or misuse and compile sufficient reliable information for the presentation of the City’s financial statements in conformity with GAAP. Given the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal control has been designed to provide reasonable, rather than absolute, assurance that the financial statements will be free from material misstatement.
To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and the changes in financial position of the governmental activities and the various funds of the City; and includes all disclosures necessary to enable the reader to gain an understanding of the City’s financial affairs.
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City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.ci.oakley.ca.us
CITY PROFILE
The City of Oakley is a community of approximately 45,000 residents located in the eastern portion of Contra Costa County in the San Francisco Bay Area. The City entity is a California municipality incorporated on July 1, 1999 and operates under a Council-City Manager form of government. The City Council is comprised of five members, three of which were elected by the voters, city-wide, serving in staggered four-year terms and two were elected to serve in their respective District from the 2022 election, also serving a staggered four-year term. The 2024 election will transition the three remaining at-large seats to District seats. The Council hires a City Manager to run the City’s day-to-day operations.
The City provides the following services: Legislative; Administrative; Building and Safety; Code Enforcement, Planning; Engineering; Streets, Parks, and Landscape Maintenance; Recreation; and Police Protection. Other community services that are provided by local special districts with their own governing boards include: Sewer, Water, Transit, Irrigation, Mosquito Abatement, Flood Control, Schools, and Fire Protection. The City contracts sanitation services with a local firm under a long-term franchise agreement.
FINANCIAL INFORMATION
Discussion and analysis of the City’s finances can be found in the MD&A section of the attached report. The information below includes a summary of what is recorded in the General Fund and certain Other Financial Information of ongoing interest but not included in the MD&A.
The Financial Statements presented in this ACFR include the City and its component unit, the Oakley Public Financing Authority. It is blended in the report since it is governed by the City Council sitting in a separate capacity and provides services exclusively to the City. The Oakley Redevelopment Agency was dissolved on January 31, 2012, and its assets and liabilities were transferred to the City, as Housing Successor, and to a Successor Agency. The Successor Agency is reported as a Private Purpose Trust Fund, since it is legally a separate Entity and its decisions and governance subject to the approval of parties other than the City Council.
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City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.ci.oakley.ca.us Each year, the City Council holds a strategic planning discussion and adopts a budget to direct the allocation of City resources in accordance with its strategic planning priorities. The process typically begins in January with internal budget reviews, followed by a strategic planning session in March, a budget workshop in May to discuss a Proposed Budget, and adoption of a final Recommended Budget in June. The development of the Fiscal Year 2023/24 Proposed Budget included a budget study session that was held at the May 9, 2023 Council meeting.
The City operates on a fiscal year that begins each July 1 and ends on June
30. The adopted Budget includes the annual update of the City’s Comprehensive Statement of Financial Policies, which serves as a framework for its financial practices, an update to its 10 Year Plan, and budgets for each of the funds under the City’s control. Budgetary control is established at the Fund level.
The City’s General Fund is its primary operating fund, and is used to account for Legislative, Administrative Services, Community Development, Recreation, Police and Public Works operations, and is where the City accounts for all its general-purpose revenues. It is distinguished from the City’s other governmental funds that are used to account for special purpose revenues, capital projects, debt service activities, and monies held for the benefit of others.
DEBT MANAGEMENT
The City generally does not incur debt, except in instances where there will be long-term benefits or where no other method of acquiring an asset is possible.
Equipment purchases are generally funded through the City’s Equipment Replacement Fund or with current revenues.
RESERVES
The City has sufficient reserves to meet its current and immediate future obligations. The Statement of Financial Policies contains reserve policies and the City’s Adopted Budget includes a 10 Year Plan which highlights the impact of near-term decisions on fund balances and reserves during the 10-year period. Furthermore, in order to maintain the 10 Year Plan’s relevance, twice each year (at budget adoption and again at mid-year), the City reviews and updates the assumptions used in the Plan.
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City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.ci.oakley.ca.us ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
In preparing the budget for FY 2023/24, management considered the following significant factors likely to affect the financial condition of the City:
With interest rates rising, home sales have dropped considerably from prior fiscal years therefore slowing the issuance of building permits. The FY 2023/2024 revenue projections were conservative at only anticipating 125 building permits for single family housing units remaining consistent with where FY 2022/2023 ended. Although conservative, it is still unknown if we will reach these numbers for FY 2023/2024. Property Tax revenue growth was budgeted at 6% for Fiscal Year 2023/2024, however, with the County Assessor subsequently reported an increase of over 8% in assessed valuations which is anticipated to increase revenue for property tax and property tax in lieu of vehicle license fee. To hedge against potentially further losses in revenue due to a possible recession, the City had assigned $1 million in excess of the 30% minimum reserve policy to the General Fund Emergency Reserve for Fiscal Year 2022/23. The City did not assign the $1 million in the FY 2023/2024 budget. Although it hasn’t been determined when or even if a recession will happen, if it does, it is anticipated to be mild and quick.
The City is also anticipating a rise in commercial and industrial development with the Contra Costa Logistic Center construction wrapping up in Fiscal Year 2022/23. The Center provides approximately 1.7 million square feet of new, Class A light industrial, warehousing, distribution, e-commerce fulfillment, and light manufacturing space that will serve as a regional catalyst for jobs and business in the City and beyond.
The City has accumulated reserves well in excess of its adopted policy level of 30% of anticipated General Fund expenditures. With an adequate reserve, the Council has appropriated the excess to fund one-time additional infrastructure and economic development investments. The City has several large projects in the coming years and any one-time expenditures used will be weighed against the 10-year plan to ensure all expenditures can be managed not only now but into the future.
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City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.ci.oakley.ca.us In December 2016 the California Public Employees Retirement System (“CalPERS”) lowered the discount rate assumption, the long-term rate of return from 7.50% to 7% over the subsequent three years. On November 15, 2021, the CalPERS Board voted to lower the rate further, from 7% to 6.8%. In FY 2017/18 the City set up a pension trust that will be used to reduce the unfunded accrued liability and/or provide rate stabilization in future years. At the end of FY 2022/2023 the City has $1,047,201 in the pension trust account that can be used to pay future pension costs. The City has also set aside reserves of $1,000,000 for consideration of future section 115 Trust investments or UAL pay-downs.
On March 11, 2021, the American Rescue Plan Act (ARPA) was signed into law. Section 9901 of the ARPA amended Title VI of the Social Security Act to add Section 603. This establishes the Coronavirus State & Local Fiscal Recovery Fund (CSLFRF) for local governments across the U.S. Every city and town received a funding allocation. In California, both large cities-entitlement cities (populations over 50,000) and small cities – non-entitlement cities (populations of less than 50,000, which includes the City of Oakley) have received ARPA funding allocations. In total, small cities (non-entitlement, cities including Oakley) in California received $1.2 billion. The City of Oakley received $10.2 million and to date has allocated all but $2.8 million to projects. This unallocated amount has been suggested to be used to help fund the Library project that is becoming a priority in upcoming years.
While the budget news was generally good, the City Council continues to support a budget process that uses recurring revenues for recurring expenditures and allocates one-time funds for one-time purposes, reflecting the Council’s commitment to conservative budgeting, controlling costs, and using the City’s revenues wisely.
LONG TERM FINANCIAL PLANNING
The City adopts a balanced budget for each fiscal year by June 30. The City has financial policies that include the use of one-time revenues being used for non-recurring or one-time expenditures including capital and reserves. The City has adopted a fund balance policy that requires the unassigned fund balance in the General Fund to be at least 30% of operating expenditures. As part of the budgeting process a 10-year financial projection is approved each year.
This creates the framework to evaluate the City’s success in ensuring service sustainability. Each year, a 5-year Capital Improvement Plan is created to build and maintain the core infrastructure of the City.
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City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.ci.oakley.ca.us
THE LOCAL AND REGIONAL ECONOMIES
Oakley’s local economy continues to grow. While commercial activity in the region has improved, commercial vacancies in nearby cities remain a viable and competing alternative to new ground-up construction in Oakley. New development and City initiatives bring infrastructure improvements and attractive new neighborhoods. These investments support the City’s efforts to attract new businesses and expand existing local employment opportunities.
The City continues the revitalization of the downtown area with the improvement and widening of Main Street. New commercial development is nearing completion in the downtown and grant funding has been received by the San Joaquin Joint Powers Authority to install an Amtrak train platform in the downtown area.
Like most small cities in metropolitan areas, Oakley’s economy is influenced strongly by the regional economy. It rises as the region expands and falls as the region contracts.
The San Francisco Bay Area led the country in economic growth in 2023, with a 3% increase in GDP, and employment for the City’s residents continues to improve. Oakley has a labor force of 19,900, with an unemployment rate of 4.5 % in September 2023, compared to 5.9% in 2022, 7.2 % in 2021 and 14.7% in 2020.
INDEPENDENT AUDITORS
State statutes require an annual audit by independent certified public accountants. The accounting firm of Maze & Associates has been engaged by the City to conduct this year’s audit. The auditor’s report on the basic financial statements is included in the financial section of the report.
AWARDS FOR EXCELLENCE IN FINANCIAL REPORTING
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 for its annual comprehensive financial report for the fiscal year ended June 30, 2022. To receive the award, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current annual comprehensive financial report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
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City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.ci.oakley.ca.us
AVAILABILITY TO THE PUBLIC
Once accepted by the Council, the report will be made available to the public at the City Offices, on the City’s website, at State and Federal repositories, and by providing copies to the City’s bond disclosure dissemination agent.
CONCLUSION
We are proud to deliver to you the City’s Annual Comprehensive Financial Report for the year ended June 30, 2023. The preparation of this report on a timely basis could not have been accomplished without the dedicated services of Finance Department staff and the assistance of many others in the City organization. We would like to express our appreciation to everyone who contributed to its preparation and thank you for your continued support in planning and conducting the financial operations of the City in a responsible and progressive manner.
Respectfully submitted,
Joshua McMurray Jeri Tejeda
City Manager Administrative Services Director
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CITY OF OAKLEY
ELECTED OFFICIALS AND
ADMINISTRATIVE PERSONNEL
JUNE 30, 2023
ELECTED OFFICIALS
Mayor Aaron Meadows
Vice-Mayor Anissa Williams
Council Member George Fuller
Council Member Hugh Henderson
Council Member Shannon Shaw
ADMINISTRATIVE PERSONNEL
City Manager Joshua McMurray
City Attorney Derek Cole
Finance Director Vacant
Chief of Police Paul Beard
City Clerk Libby Vreonis
Human Resources Director Jeri Tejeda
Community Development Director Brent Smith
Public Works Director/City Engineer Kevin Rohani
Recreation Director Vacant
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FINANCIAL SECTION
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INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and City Council
City of Oakley, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, each major fund and the aggregate remaining fund information of the City of Oakley, California, as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the Table of Contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2023, and the respective changes in financial position and, where applicable, cash flows thereof, and the respective budgetary comparisons listed in the Table of Contents as part of the basic financial statements for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirement relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
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Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that Management’s Discussion and Analysis and other Required Supplementary Information as listed in the Table of Contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
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Supplemental Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying Supplemental Information, as listed in the Table of Contents, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Supplemental Information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the Introductory Section and Statistical Section listed in the Table of Contents, but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 5, 2023 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Pleasant Hill, California
December 5, 2023
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MANAGEMENT’S DISCUSSION AND ANALYSIS
This discussion and analysis of the City of Oakley’s financial performance for the fiscal year ended June 30, 2023, provides an overview of year ending results based on the government-wide statements, an analysis on the City’s overall financial position and results of operations to assist users in evaluating the City’s financial position, and discussions of both significant changes that occurred in funds and significant budget variances. In addition, it describes the activities during the year for capital assets and long-term debt. It concludes with a description of currently known facts, decisions, and conditions that are expected to have a significant effect on the financial position or results of operations. Please read this management’s discussion and analysis in conjunction with the City’s financial statements.
FINANCIAL HIGHLIGHTS
• Government-wide net position increased by $13,246,577 or 4.19 percent this year. • Government-wide program expenditures exceeded program revenues by $7,563,455. • General Fund revenues were $2,160,775 more than budgeted; expenditures were $2,916,611 than budgeted.
• The General Fund Balance at the end of the year was $25,741,766 of which $16,585,152 was available/unassigned.
USING THIS ANNUAL REPORT
This annual report consists of a series of financial statements. The Statement of Net Position and Statement of Activities (on pages 16 and 17) provide information about the activities of the City as a whole and present a long-term view of the City’s finances. Fund financial statements start on page 20. For governmental activities, the fund financial statements tell how these services were financed in the short term as well as what remains for future spending. Fund financial statements also report the City’s operations in more detail than the government-wide statements by providing information about the City’s most significant funds and other funds. The remaining fiduciary fund statement provides financial information about activities for which the City acts solely as a trustee or agent for the benefit of those outside of the government. 5 156
REPORTING THE CITY AS A WHOLE
The Statement of Net Position and the Statement of Activities:
Our analysis of the City as a whole begins on page 5. One of the most important questions asked about the City’s finances is “Is the City as a whole better off or worse off as a result of the year’s activities?” The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities to answer this question. These statements include all assets, deferred outflows/inflows of resources and liabilities of the City using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are considered regardless of when cash is received or paid.
These two statements report the City’s net position and changes in net position. Net position is the difference between assets plus deferred outflows of resources and liabilities plus deferred inflows of resources, which is one way to measure the City’s financial health, or financial position. Over time, increases or decreases in the City’s net position is an indication of whether its financial health is improving or deteriorating. To put the City’s financial health in perspective, you will likely need to consider certain non-financial factors, such as changes in the economy, that impact consumer spending or property values. In the Statement of Net Position and the Statement of Activities, we include City activities from two categories:
Governmental activities – Most of the City’s basic services are reported in this category, and include general government (city manager, city clerk, finance, etc.), community development (planning and building, public works and parks, police protection, and recreation. Property taxes, sales tax, transient occupancy tax, user fees, interest income, franchise fees, state and federal grants, contributions from other agencies, and other revenues finance these activities.
Component unit activities – The City includes one additional legal entity in its report – the Oakley Public Financing Authority. Although legally separate, the City is financially accountable for this “component unit”.
REPORTING THE CITY’S MOST SIGNIFICANT FUNDS
Fund Financial Statements
The fund financial statements provide detailed information about the most significant funds (called “major” funds) and other funds (called “non-major” funds) – not the City as a whole.
Some funds are required by State law and/or by bond covenants; however, management has established other funds to help it control and manage money for particular purposes or to show that it is meeting legal responsibilities for the use of certain taxes, grants, and other resources.
The City’s funds are classified as Governmental Funds, Proprietary Funds or Fiduciary Funds. 6 157
Governmental Funds
Most of the City’s basic services are reported in governmental funds, which focus on how money flows in and out of those funds and the balances left at year-end that are available for spending.
These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. The differences of results in the Governmental Fund financial statements to those in the Government-Wide financial statements are explained in a reconciliation following each Governmental Fund financial statement.
Proprietary Funds - Internal Service Activities
The City has established Equipment Replacement, Information Technology and Capital Facilities Maintenance and Replacement Internal Services Funds. Internal Service Funds are operated in a manner similar to a private business enterprise. In the case of the Equipment Replacement Fund, it charges the other City funds to accumulate amounts sufficient to maintain and replace fleet vehicles at the end of their useful life. The Information Technology Fund is funded by transfers from the General Fund that are sufficient to replace computer equipment as necessary, and the Capital Facilities Maintenance and Replacement Fund charges the other City Funds to accumulate sufficient amounts to pay for major repairs and building systems replacements when they may occur. These Funds are reported using the accrual basis of accounting.
Trust and Custodial Funds - Reporting the City’s Fiduciary Responsibilities The City is the trustee, or fiduciary, for certain funds held on behalf of bondholders and other governmental agencies. The City’s fiduciary activities are reported in separate Statements of Fiduciary Net Position and Changes in Fiduciary Net Position. We exclude these activities from the City’s other financial statements because the City doesn’t own these assets and cannot use them to finance its operations. The City is the Successor Agency to the Oakley Redevelopment Agency, and the Successor Agency’s assets and liabilities are accounted for in a private purpose trust fund reported with the City’s other fiduciary funds.
THE CITY AS A WHOLE
For Fiscal Year 2022/2023, the City’s combined net position increased $13,246,577 from $315,982,936 to $329,229,513. The analysis below focuses on the net position (Table 1) and changes in net position (Table 2) of the City’s governmental activities. 7 158
Governmental Activities 2023 2022
Assets
Current and restricted assets $102,852,722 $93,117,201
Other Long-Term Assets 12,736,548 14,660,449
Capital assets 238,336,035 230,225,015
Total Assets 353,925,305 338,002,665
Deferred Outflows of Resources
Related to pensions (Note 11) 4,135,020 3,889,373
Liabilities
Long-term debt outstanding 7,915,000 8,245,000
Other liabilities 20,116,979 15,947,698
Total Liabilities 28,031,979 24,192,698
Deferred Inflows of Resources
Related to pensions (Note 11) 441,835 608,584
Related to leases (Note 14) 356,998 1,107,820
Total Deferred Inflows of Resources 798,833 1,716,404
Net Position
Net Investment in Capital Assets 230,421,035 221,980,015 Restricted 59,525,708 56,580,454
Unrestricted 39,282,770 37,422,467
Total Net Position $ 329,229,513 $ 315,982,936
Table 1
Net Position
As of June 30, 2023 and 2022
The City’s Net Position is made up of three components: Net Investment in Capital Assets; Restricted Net Position; and Unrestricted Net Position. Net Investment in Capital Assets, representing capital assets, and principally infrastructure assets, accounts for the majority of the City’s governmental activities’ net position.
The increase of $8,441,020 in Net Investment in Capital Assets resulted primarily from the contribution of subdivision infrastructure from developers including streets, improvements, traffic signals and landscaping. The largest dedicated infrastructure included Oakley Logistics Center and Stonewood Unit A. The City also has several large construction projects completed this year which includes Street Repair and Maintenance CIP # 246, the Police Parking Lot Expansion CIP #253 and the Holly Creek Restrooms CIP #288. 8 159
The increase of $2,945,254 in Restricted Net Position is primarily due to funds restricted for capital projects, as a result of current year project expenditures and carryover to the next year for project completion. The largest of these projects is E. Cypress-Knightsen Avenue CIP #247.
The increase of $1,860,303 in Unrestricted Net Position is primarily attributed to the General Fund revenues in excess of expenditures. With a conservative budget due to the uncertainties of the effect of inflation on the economy, property tax, and interest were all more than anticipated.
Large capital projects, primarily related to street repairs, were carried over to Fiscal Year 2023/2024, bringing Fiscal Year 2022/2023 expenditures in under budget.
Table 2
Changes in Net Position
As of June 30, 2023 and 2022
Governmental Activities 2023 2022
REVENUES
Program Revenues:
Charges for Services $20,818,777 $19,848,551
Operating Grants & Contributions 3,475,268 3,548,566
Capital Grants & Contributions 12,071,631 16,125,068
General Revenues:
Property tax 9,997,445 8,820,565
Sales tax 3,259,906 3,245,824
Other taxes 2,906,346 2,736,046
Use of money and property 3,231,632 (1,492,642)
Miscellaneous 1,414,703 1,158,483
Total Revenues 57,175,708 53,990,461
EXPENSES
Legislative 1,107,304 620,315
Administrative Services 3,605,591 1,236,007
Law Enforcement 12,909,496 10,004,447
Community Development and Housing 4,822,090 3,784,435
Public Works 20,106,673 16,987,021
Recreation 1,033,851 723,501
Interest on long-term debt 344,126 349,039
Total Expenses 43,929,131 33,704,765
Change in Net Position 13,246,577 20,285,696
Net Position – Beginning 315,982,936 295,697,240
Net Position – Ending $329,229,513 $315,982,936
9 160
Governmental Activities
Total governmental revenue for Fiscal Year 2022/2023 was $57,175,708. Capital Grants and Contributions, which account for 21% of revenue, saw a decrease of $4,053,437, from $16,125,068 in Fiscal Year 2022/2023 to $12,071,631 in Fiscal Year 2022/2023. This decrease is due to significantly higher-than-usual capital projects that were completed in Fiscal Year 2022/2023. Charges for Services, which account for 36% of revenue increased by $970,226, due to continuing development within the City of Oakley. Property Taxes increased $1,176,880 due to a general increase in property values as well as an increase in the number of new homes on commercial and industrial buildings being assessed. The use of money and property increased $4,724,274 due to the fluctuation of market rates and the increase in investment in money market accounts. The other categories experienced slight increases. The large increase in Use of Money and Property was the result of rising interest rates, which created exceptionally high market losses on existing investments in FY 2021/2022.
Total expenses were $43,929,131. Public Works, with $20,106,673 of expenses, represented the largest component of total governmental expenses. Administrative Services, Law Enforcement and Community Development also increased considerably; the increases were due to a large decrease in FY 2021/2022 from a combination of a one-time payment and an exceptionally large rate of return for CalPERS as well as salary increases due to moving from a merit-based system, to a step system. This change provided for at least a 5% salary increase for all staff with some staff receiving greater than 5%. In addition to the step system, all miscellaneous general staff received a 3% cost of living increase. Other categories remained comparable to the prior year with some seeing slight decreases.
Fiscal Year 2023 Government Activities
10 161
THE CITY’S FUNDS
On page 24, the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances is shown. The combined fund balance was $85,004,805, an increase of $7,254,041. The largest contributor was due to moving assigned reserves for Capital Projects of 7.2 million to unassigned fund balance to be used for the CIP project for Cypress Road.
The General Fund Balance decreased by $900,535 from the prior year. This was anticipated to be much larger at the beginning of the year. With property tax revenue and interest revenue coming in above the budget, this decrease was less than budgeted. One time reserves were used to transfer for capital projects for Cypress Road.
The General Fund Unassigned Fund Balance increased by $6,203,709, due primarily to the decrease of assigned reserves for capital projects of $7.2 million for use on capital projects. In Fiscal Year 2023/2024, $2.8 million of the Reserve for Capital Projects will remain available for future capital projects if needed.
General Fund revenues were $8,224,038 more than expenditures. That excludes Net Transfers of $9,577,974, which are categorized under Other Financing Sources (Uses).
General Fund Budgetary Highlights
For the City’s General Fund, actual revenues of $22,353,938 were $2,160,775 more than the final budgeted revenues of $20,193,163. Use of Money and Property, Property Tax, and Other Tax Revenues exceeded final budget by $1,909,127. The increase in assessed value of property was approximately 16.4%, which was better than the projected increase of 4.5%. With the inflation concern and direct effect of the economy during budget preparations, the Use of Money was anticipated to stay the same or decrease, as the effects of the rate changes were unknown.
However, the City received $987,832 more revenues than anticipated. 11 162
General Fund expenditures of $14,129,900 were $2,916,611 less than final budget of $17,046,511. Savings were realized primarily in Law Enforcement ($997,743) and Administrative Services ($697,121). The savings in Law Enforcement resulted from the timing on the hiring process for vacant police positions, creating a savings of just over $854,203 in Salaries and Benefits. The savings in Administrative Services resulted primarily from lower than anticipated Salaries and Benefit costs, consulting services, repairs and maintenance and risk management.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
At the end of Fiscal Year 2022/23, the City had $238,336,035 invested in a broad range of capital assets including land, streets, bridges, drainage systems, traffic lights, parks, buildings, vehicles and equipment. (See Table 3).
Table 3
Capital Assets
As of June 30, 2023 and 2022
Governmental Activities 2023 2022
Non Depreciable
-Land $18,535,225 $ 18,531,130
-Construction in Progress 11,585,659 7,234,020
Depreciable, net of Accumulated Depreciation:
-Machinery, Equipment and Vehicles 1,421,130 987,248
-Buildings and Improvements 24,334,114 20,725,953
-Park Improvements 14,738,950 15,680,626
-Infrastructure 167,720,957 167,066,038
Total Capital Assets $238,336,035 $230,225,015
Capital Assets increased by $8,111,020 during Fiscal Year 2022/23, with the most significant increases being in construction in progress ($4,351,639) and in building and improvements ($3,608,161). The City completed several large CIP projects including the Police Parking Lot, Streets Repair and Maintenance and the Holly Creek Restrooms. The increase in Building and Improvements consists mostly of developer dedicated improvements of the Oakley Logistic Center and Stonewood Unit 1.
The City’s FY 2023/24 Capital Improvement Budget calls for the spending of $16,290,939 on new capital projects, the majority being the construction of roadways, street repair and resurfacing and a regional park project. The projects will be financed primarily with Traffic Impact Fees, Measure J, Park Impact fees and General Fund Allocations. Additional information about the capital assets can be found in Note 7 of the financial statements. 12 163
Debt
At year-end, the City’s governmental activities had $7,915,000 of Outstanding Debt as shown in Table 4. In December 2016, the City issued the 2016 Lease Revenue Bonds of $10,025,000 to refinance the outstanding 2006 Certificates of Participation and to finance the construction of the Oakley Recreation Center. Additional information about the City’s debt can be found in Note 8 of the financial statements.
Table 4
Outstanding Debt at Year-End
Governmental Activities 2023 2022
2016 Lease Revenue Bonds $7,915,000 $8,245,000
During the year, the City made all of its current year debt service payments in a timely manner.
CONTACTING THE CITY FOR FINANCIAL INFORMATION
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact the City’s Finance Department at the City offices at 3231 Main Street, Oakley, California, by calling (925) 625-7010, or forwarding your inquiry via the “contact us” page on the City’s website (www.oakleyinfo.com). This Annual Comprehensive Financial Report (ACFR), as well as other financial documents, is posted in the Finance Department section of the City Website.
13 164
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165
CITY OF OAKLEY
STATEMENT OF NET POSITION
AND STATEMENT OF ACTIVITIES
The Statement of Net Position and the Statement of Activities summarize the entire City’s financial activities and financial position. They are prepared on the same basis as is used by most businesses, which means they include all the City’s assets and deferred outflows of resources and all its liabilities and deferred inflows of resources, as well as all its revenues and expenses. This is known as the full accrual basis—the effect of all the City’s transactions is taken into account, regardless of whether or when cash changes hands, but all material internal transactions between City funds have been eliminated.
The Statement of Net Position reports the difference between the City’s total assets and deferred outflows of resources and the City’s total liabilities and deferred inflows of resources, including all the City’s capital assets and all its long-term debt. The Statement of Net Position focuses the reader on the composition of the City’s Net Position, by subtracting total liabilities from total assets.
The Statement of Net Position summarizes the financial position of all of the City’s Governmental Activities in a single column. The City’s Governmental Activities include the activities of its General Fund, along with all its Special Revenue, Capital Projects and Debt Service Funds.
The Statement of Activities reports increases and decreases in the City’s Net Position. It is also prepared on the full accrual basis, which means it includes all the City’s revenues and all its expenses, regardless of when cash changes hands. This differs from the “modified accrual” basis used in the Fund financial statements, which reflect only current assets, current liabilities, available revenues and measurable expenditures.
The Statement of Activities presents the City’s expenses first, listed by program. Program revenues—that is, revenues which are generated directly by these programs—are then deducted from program expenses to arrive at the net expense of each governmental program. The City’s general revenues are then listed in the Governmental Activities and the Change in Net Position is computed and reconciled with the Statement of Net Position.
Both these Statements include the financial activities of the City and the Oakley Public Financing Authority, which is legally separate but is a component unit of the City because it is controlled by the City, which is financially accountable for the activities of the entity. 15 166
CITY OF OAKLEY
STATEMENT OF NET POSITION
JUNE 30, 2023
Governmental
Activities
ASSETS
Cash and investments available for operations (Note 3) $94,540,663 Cash and investments with fiscal agent (Note 3) 1,586,514 Accounts receivable, net of allowance
for doubtful accounts (Note 1F) 3,214,228
Interest receivable 185,767
Prepaids and deposits 1,368
Loans receivable (Note 5) 12,357,708
Land held for resale (Note 6) 3,324,182
Capital assets (Note 7):
Land and construction in progress 30,120,884
Depreciable, net 208,215,151
Leases receivable (Note 14) 378,840
Total Assets 353,925,305
DEFERRED OUTFLOWS OF RESOURCES
Related to pensions (Note 11) 4,135,020
LIABILITIES
Accounts payable 2,493,209
Accrued liabilities 128,053
Deposits payable 1,558,886
Unearned revenue 11,719,672
Interest payable 53,928
Claims payable - due in one year (Note 16) 75,850
Compensated absences (Note 1H):
Due within one year 374,788
Due in more than one year 1,499,155
Advance from Fire District, due in more than one year (Note 17D) 136,023 Net Pension Liability - Due in more than one year (Note 11) 2,077,415 Long-term debt (Note 8):
Due within one year 345,000
Due in more than one year 7,570,000
Total Liabilities 28,031,979
DEFERRED INFLOWS OF RESOURCES
Related to pensions (Note 11) 441,835
Related to leases (Note 14) 356,998
Total Deferred Inflows of Resources 798,833
NET POSITION (Note 10)
Net investment in capital assets 230,421,035
Restricted for:
Capital projects 48,059,852
Debt service 40,543
Low and moderate income housing 11,425,313
Total Restricted Net Position 59,525,708
Unrestricted net position 39,282,770
Total Net Position $329,229,513
See accompanying notes to financial statements
16 167
CITY OF OAKLEY
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2023
Net (Expense)
Revenue and Change
Program Revenues in Net Position
Operating Capital
Charges for Grants and Grants and Governmental
Functions/Programs Expenses Services Contributions Contributions Activities Governmental Activities:
Legislative $1,107,304 ($1,107,304)
Administrative Services 3,605,591 $806,653 $250,000 (2,548,938) Community Development 4,818,856 3,463,582 767,388 $758,109 170,223 Public Works 20,106,673 8,851,111 2,193,626 11,313,522 2,251,586 Housing Programs 3,234 (3,234)
Law Enforcement 12,909,496 7,381,365 264,254 (5,263,877) Recreation 1,033,851 316,066 (717,785)
Interest and fiscal charges 344,126 (344,126)
Total Governmental Activities $43,929,131 $20,818,777 $3,475,268 $12,071,631 (7,563,455) General revenues:
Taxes:
Property taxes 9,997,445
Sales taxes 3,259,906
Business license taxes 100,566
Transient occupancy taxes 262,190
Franchise taxes 2,543,590
Intergovernmental, unrestricted:
Motor vehicle in lieu 45,647
Use of money and property 2,776,211
Gain on sale of property 455,421
Miscellaneous 1,369,056
Total General Revenues 20,810,032
Change in Net Position 13,246,577
Net Position-Beginning 315,982,936
Net Position-Ending $329,229,513
See accompanying notes to financial statements
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169
FUND FINANCIAL STATEMENTS
Major funds are defined generally as having significant activities or balances in the current year.
MAJOR GOVERNMENTAL FUNDS
The funds described below were determined to be Major Funds by the City in fiscal 2023. Individual non-major funds may be found in the Supplemental Section.
GENERAL FUND
The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Revenues deposited in the General Fund include property tax, sales tax, franchise fees, business licenses, fines and forfeitures and fees for services. This fund is used to finance most of the City’s basic services including Legislative, General Administration, Law Enforcement, Public Works and Community Development.
LIGHTING AND LANDSCAPING DISTRICTS SPECIAL REVENUE FUND This fund accounts for assessments made upon parcels of land within the Lighting and Landscaping Zones #1, #2 and #3 and their use in accordance with the provisions of the State of California Streets and Highway Code.
PUBLIC PROTECTION SPECIAL REVENUE FUND
This fund accounts for dedicated Police Services Special Taxes and State COPS program funds.
LOW AND MODERATE INCOME HOUSING ASSET SPECIAL REVENUE FUND This fund accounts for the housing assets of the former Oakley Redevelopment Agency and loan repayments restricted to low and moderate income housing projects.
ARPA SPECIAL REVENUE FUND
This fund accounts for American Rescue Plan Act funding. The City is allowed to claim $10 million of the funds as an economic loss, which can be used to provide government services. The remaining $177,190 is being claimed as a partial reimbursement for special COVID-19 sick leave that the City’s General Fund has paid out during the pandemic.
TRAFFIC IMPACT FEES CAPITAL PROJECTS FUND
This fund accounts for fees assessed on new development to provide street and road improvements. 19 170
CITY OF OAKLEY
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2023
Lighting and
Landscaping Public
General Districts Protection
ASSETS
Cash and investments available for operations (Note 3) $20,620,632 $13,530,206 Cash and investments with fiscal agent (Note 3) 1,047,201 Accounts receivable, net of allowance
for doubtful accounts (Note 1F) 1,652,578
Interest receivable 59,582 26,291 $3,583
Due from other funds (Note 4C) 253,903
Prepaids and deposits 1,368
Loans receivable (Note 5) 94,370
Advances to other funds (Note 4B) 78,532
Leases receivable (Note 14) 378,840
Land held for resale (Note 6) 3,324,182
Total Assets $27,511,188 $13,556,497 $3,583
LIABILITIES
Accounts payable $668,697 $519,039
Accrued liabilities 127,613
Due to other funds (Note 4C) $3,583
Deposits payable 6,673
Unearned revenue 609,441
Advances from other funds (Note 4B) 78,532
Total Liabilities 1,412,424 597,571 3,583
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - accounts receivable
Unavailable revenue - loans receivable
Unavailable revenue - interest on advances to other funds Related to leases (Note 14) 356,998
Total Deferred Inflows of Resources 356,998
FUND BALANCES
Fund balance (Note 10):
Nonspendable 3,520,294
Restricted 1,047,201 12,958,926
Assigned 4,589,119
Unassigned 16,585,152
Total Fund Balances (Deficits) 25,741,766 12,958,926
Total Liabilities, Deferred Inflows of Resources
and Fund Balances $27,511,188 $13,556,497 $3,583
See accompanying notes to financial statements
20 171
Low and Moderate Traffic Other Total
Income Housing Impact Governmental Governmental
Asset ARPA Fees Funds Funds
$378,745 $9,128,678 $13,502,785 $35,457,709 $92,618,755 539,313 1,586,514
275 50,223 1,624,565 3,327,641
18,668 28,062 45,994 182,180
253,903
1,368
12,246,460 16,878 12,357,708
606,402 593,490 1,278,424
378,840
3,324,182
$12,625,205 $9,147,621 $14,204,350 $38,261,071 $115,309,515 $31,700 $131,829 $991,805 $2,343,070
127,613
250,320 253,903
1,552,213 1,558,886
8,951,564 1,662,221 496,446 11,719,672
$1,199,892 1,278,424
1,199,892 8,983,264 1,794,050 3,290,784 17,281,568
113,413 113,413
12,246,460 12,246,460
154,784 151,487 306,271
356,998
12,246,460 154,784 264,900 13,023,142
3,520,294
12,255,516 22,579,682 48,841,325
164,357 12,248,030 17,001,506
(821,147) (122,325) 15,641,680
(821,147) 164,357 12,255,516 34,705,387 85,004,805
$12,625,205 $9,147,621 $14,204,350 $38,261,071 $115,309,515 21 172
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173
CITY OF OAKLEY
Reconciliation of the
GOVERNMENTAL FUNDS - BALANCE SHEET
with the
STATEMENT OF NET POSITION
JUNE 30, 2023
Total fund balances reported on the governmental funds balance sheet: $85,004,805 Amounts reported for Governmental Activities in the Statement of Net Position are different from those reported in the Governmental Funds above because of the following:
CAPITAL ASSETS
Capital assets used in Governmental Activities are not current assets or financial resources and therefore are not reported in the Government Funds. 238,336,035
ALLOCATION OF INTERNAL SERVICE FUND NET POSITION
Internal service funds are not governmental funds. However, they are used by management to charge the costs of certain activities, such as insurance and central services and maintenance, to individual governmental funds. The net current assets of the Internal Service Funds are therefore included in Governmental Activities in the Statement of Net Position. 1,774,916
NON-CURRENT REVENUES
Revenues which are unavailable on the Fund Balance Sheets because they are not available currently are taken into revenue in the Statement of Activities. 12,552,731
LONG TERM ASSETS AND LIABILITIES
The assets and liabilities below are not due and payable in the current period and therefore are not reported in the Funds:
Long-term debt (7,915,000)
Interest payable (53,928)
Advance from Fire District (136,023)
Compensated absences (1,873,943)
Net pension liability and pension-related deferred outflows/inflows of resources 1,615,770 Claims Payable (75,850)
NET POSITION OF GOVERNMENTAL ACTIVITIES $329,229,513
See accompanying notes to financial statements
23 174
CITY OF OAKLEY
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2023
Lighting and
Landscaping Public
General Districts Protection
REVENUES
Property taxes $9,997,445
Sales tax 3,259,906
Other taxes 2,805,780 $850,354
Licenses and permits 2,927,063
Charges for services 261,605
Fines and forfeits 69,578
Intergovernmental 519,709 $165,271
Developer fees
Special assessments 4,669,248 7,271,116
Loan repayments
Use of money and property 1,152,532 344,994 (6,549)
Miscellaneous 1,360,320 2,750
Total Revenues 22,353,938 5,867,346 7,429,838
EXPENDITURES
Current:
Legislative 959,629
Administrative Services 2,514,347
Community Development 2,574,255
Public Works 2,294,579 4,182,810
Housing programs
Law Enforcement 4,546,265 7,431,708
Recreation 912,610
Capital outlay 328,215 228,861
Debt service:
Principal
Interest and fiscal charges 1,704
Total Expenditures 14,129,900 4,413,375 7,431,708
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 8,224,038 1,453,971 (1,870)
OTHER FINANCING SOURCES (USES)
Transfers in (Note 4A) 26,288
Transfers (out) (Note 4A) (9,577,974) (18,466)
Proceeds from sale of property 453,401
Total Other Financing Sources (Uses) (9,124,573) 7,822
NET CHANGE IN FUND BALANCES (900,535) 1,461,793 (1,870) FUND BALANCES (DEFICIT) AT BEGINNING OF YEAR 26,642,301 11,497,133 1,870 FUND BALANCES (DEFICIT) AT END OF YEAR $25,741,766 $12,958,926 See accompanying notes to financial statements
24 175
Low and Moderate Traffic Other Total
Income Housing Impact Governmental Governmental
Asset ARPA Fees Funds Funds
$527,545 $10,524,990
3,259,906
2,454,495 6,110,629
2,927,063
261,605
69,578
$569,832 3,618,701 4,873,513
$1,795,783 2,958,034 4,753,817
344,769 12,285,133
$1,819 1,819
88,741 145,877 381,308 538,731 2,645,634
22,400 17,416 1,402,886
90,560 715,709 2,199,491 10,459,691 49,116,573
959,629
2,514,347
406,787 1,733,405 4,714,447
123,855 3,613,905 10,215,149
3,234 3,234
11,977,973
912,610
163,045 2,119,308 7,477,305 10,316,734
330,000 330,000
25,484 344,622 371,810
28,718 569,832 2,243,163 13,499,237 42,315,933
61,842 145,877 (43,672) (3,039,546) 6,800,640
10,259,209 10,285,497
(689,057) (10,285,497)
453,401
9,570,152 453,401
61,842 145,877 (43,672) 6,530,606 7,254,041
(882,989) 18,480 12,299,188 28,174,781 77,750,764
($821,147) $164,357 $12,255,516 $34,705,387 $85,004,805 25 176
CITY OF OAKLEY
Reconciliation of the
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS
with the
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2023
The schedule below reconciles the Net Changes in Fund Balances reported on the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance, which measures only changes in current assets and current liabilities on the modified accrual basis, with the Change in Net Position of Governmental Activities reported in the Statement of Activities, which is prepared on the full accrual basis.
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $7,254,041 Amounts reported for governmental activities in the Statement of Activities are different because of the following:
CAPITAL ASSETS TRANSACTIONS
Governmental Funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense.
Capital expenditures are added back to fund balance 9,845,265 Depreciation expense is deducted from fund balance
(Depreciation expense is net of internal service fund depreciation of $659,791 which has already been allocated to serviced funds.) (9,127,462) Developer dedicated infrastructure is added to fund balance 7,328,995 Capital expenditures contributed to internal service funds (584,369) Capital assets contributed from internal service funds 466,908
LONG TERM DEBT PROCEEDS AND PAYMENTS
Repayment of bond principal is an expenditure in the governmental funds, but in the Statement of Net Position the repayment reduces long-term liabilities.
Repayment of debt principal is added back to fund balance 330,000
NON-CURRENT ITEMS
The amounts below included in the Statement of Activities do not provide or (require) the use of current financial resources and therefore are not reported as revenue or expenditures in governmental funds (net change):
Non-current portion of compensated absences (166,763)
Interest payable 2,200
Unavailable revenue 259,482
Advance from Fire District 201,757
Net pension liability (asset) and deferred outflows/inflows related to pensions (3,053,258) Claims payable 12,873
ALLOCATION OF INTERNAL SERVICE FUND ACTIVITY
Internal Service Funds are used by management to charge the costs of certain activities, such as equipment acquisition and maintenance to individual funds.
The portion of the net revenue (expense) of these Internal Service Funds arising out of their transactions with governmental funds is reported with governmental activities, because they service those activities.
Change in Net Position - Internal Service Fund 476,908
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $13,246,577 See accompanying notes to financial statements
26 177
CITY OF OAKLEY
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2023
Variance
Original Amended Actual Positive
Budget Budget Amounts (Negative)
REVENUES
Property taxes $8,849,000 $9,489,930 $9,997,445 $507,515 Sales taxes 2,800,000 3,200,000 3,259,906 59,906
Other taxes 2,392,000 2,392,000 2,805,780 413,780
Licenses and permits 3,654,300 3,009,300 2,927,063 (82,237) Charges for services 147,000 147,000 261,605 114,605
Fines and forfeits 109,600 74,600 69,578 (5,022)
Intergovernmental 419,600 419,600 519,709 100,109
Use of money and property 464,700 164,700 1,152,532 987,832 Miscellaneous 1,131,897 1,296,033 1,360,320 64,287
Total Revenues 19,968,097 20,193,163 22,353,938 2,160,775
EXPENDITURES
Current:
Legislative 1,080,498 1,081,940 959,629 122,311
Administrative Services 3,430,046 3,211,468 2,514,347 697,121 Community Development 3,146,780 3,038,636 2,574,255 464,381 Public Works 2,654,586 2,784,630 2,294,579 490,051
Law Enforcement 6,318,269 5,544,008 4,546,265 997,743
Recreation 1,004,934 1,004,934 912,610 92,324
Capital outlay 64,000 380,895 328,215 52,680
Total Expenditures 17,699,113 17,046,511 14,129,900 2,916,611
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 2,268,984 3,146,652 8,224,038 5,077,386
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers (out) (7,274,000) (9,574,000) (9,577,974) (3,974) Proceeds from sale of property 453,401 453,401
Total Other Financing Sources (Uses) (7,274,000) (9,574,000) (9,124,573) 449,427 NET CHANGE IN FUND BALANCES ($5,005,016) ($6,427,348) (900,535) $5,526,813 Fund balance at beginning of year 26,642,301
Fund balance at end of year $25,741,766
See accompanying notes to financial statements
27 178
CITY OF OAKLEY
LIGHTING AND LANDSCAPING DISTRICTS SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2023
Variance
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Other taxes $850,354 $850,354
Special assessments $4,621,847 $4,621,847 4,669,248 47,401 Use of money and property 31,700 31,700 344,994 313,294 Miscellaneous 2,750 2,750
Total Revenues 4,653,547 4,653,547 5,867,346 1,213,799
EXPENDITURES
Current:
Public Works 4,843,597 5,017,361 4,182,810 834,551
Capital outlay 250,000 250,000 228,861 21,139
Debt service:
Interest and fiscal charges 1,704 (1,704)
Total Expenditures 5,093,597 5,267,361 4,413,375 853,986
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (440,050) (613,814) 1,453,971 2,067,785
OTHER FINANCING SOURCES (USES)
Transfers in 194,000 194,000 26,288 (167,712)
Transfers (out) (18,466) (18,466)
Total Other Financing Sources (Uses) 194,000 194,000 7,822 (186,178) NET CHANGE IN FUND BALANCES ($246,050) ($419,814) 1,461,793 $1,881,607 Fund balance at beginning of year 11,497,133
Fund balance at end of year $12,958,926
See accompanying notes to financial statements
28 179
CITY OF OAKLEY
PUBLIC PROTECTION SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2023
Variance
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Intergovernmental $150,000 $150,000 $165,271 $15,271
Special assessments 7,250,000 7,199,070 7,271,116 72,046 Use of money and property 500 500 (6,549) (7,049)
Total Revenues 7,400,500 7,349,570 7,429,838 80,268
EXPENDITURES
Current:
Law Enforcement 7,400,500 7,349,570 7,431,708 (82,138)
Total Expenditures 7,400,500 7,349,570 7,431,708 (82,138) NET CHANGE IN FUND BALANCES (1,870) ($1,870)
Fund balance at beginning of year 1,870
Fund balance at end of year
See accompanying notes to financial statements
29 180
CITY OF OAKLEY
LOW AND MODERATE INCOME HOUSING ASSET SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2023
Variance
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Loan repayment $10,000 $10,000 $1,819 ($8,181)
Use of money and property 88,741 88,741
Total Revenues 10,000 10,000 90,560 80,560
EXPENDITURES
Current:
Housing programs 3,234 (3,234)
Debt service:
Interest 10,000 10,000 25,484 (15,484)
Total Expenditures 10,000 10,000 28,718 (18,718)
NET CHANGE IN FUND BALANCES 61,842 $61,842
Fund balance (deficit) at beginning of year (882,989)
Fund balance (deficit) at end of year ($821,147)
See accompanying notes to financial statements
30 181
PROPRIETARY FUNDS
INTERNAL SERVICE FUNDS
Internal service funds account for City operations financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services to other City funds be financed through user fees to those funds.
The concept of major funds does not extend to internal service funds because they do not do business with outside parties. For the Statement of Activities, the net revenues or expenses of the internal service fund is eliminated by netting them against the operations of the other City departments which generated them. The remaining balance sheet items are consolidated with these same funds in the Statement of Net Position. 31 182
CITY OF OAKLEY
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2023
Governmental
Activities -
Internal Service
Funds
ASSETS
Current:
Cash and investments available for operations (Note 3) $1,921,908 Receivables:
Interest 3,587
Total Current Assets 1,925,495
Noncurrent:
Capital assets (Note 7):
Depreciable, net 6,441,549
Total noncurrent Assets 6,441,549
Total Assets 8,367,044
LIABILITIES
Current:
Accounts payable 150,139
Accrued liabilities 440
Total Liabilities 150,579
NET POSITION (Note 10)
Investment in capital assets 6,441,549
Unrestricted 1,774,916
Total Net Position $8,216,465
See accompanying notes to financial statements
32 183
CITY OF OAKLEY
PROPRIETARY FUNDS
STATEMENT OF REVENUE, EXPENSES
AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2023
Governmental
Activities -
Internal Service
Funds
OPERATING REVENUES
Charges for services $1,167,779
Total Operating Revenues 1,167,779
OPERATING EXPENSES
Supplies 191,282
Depreciation 659,791
Total Operating Expenses 851,073
Operating Income (Loss) 316,706
NONOPERATING REVENUES (EXPENSES)
Gain on sale of capital assets 2,020
Interest income 40,721
Total Nonoperating Revenues 42,741
Income (Loss) Before Contributions and Transfers 359,447 Contributions 584,369
Capital assets contributed to governmental activities (466,908) Change in net position 476,908
BEGINNING NET POSITION 7,739,557
ENDING NET POSITION $8,216,465
See accompanying notes to financial statements
33 184
CITY OF OAKLEY
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2023
Governmental
Activities -
Internal Service
Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $1,167,779
Payments to suppliers (78,446)
Cash Flows from Operating Activities 1,089,333
CASH FLOWS FROM CAPITAL
FINANCING ACTIVITIES
Proceeds from sale of capital assets 2,020
Capital assets contributed to governmental activities (466,908) Acquisition of capital assets (257,105)
Cash Flows from Capital Financing Activities (721,993)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 38,875
Net Cash Flows 406,215
Cash and investments at beginning of period 1,515,693
Cash and investments at end of period $1,921,908
NONCASH TRANSACTIONS
Contributions of capital assets $584,369
Reconciliation of Operating Income (Loss) to Cash Flows from Operating Activities:
Operating income (loss) $316,706
Adjustments to reconcile operating income (loss) to cash flows from operating activities:
Depreciation 659,791
Net change in liabilities:
Accounts payable 113,851
Accrued liabilities (1,015)
Cash Flows from Operating Activities $1,089,333
See accompanying notes to financial statements
34 185
FIDUCIARY FUNDS
FIDUCIARY FUNDS
These funds are used to account for assets held by the City as an agent for individuals, private organizations, and other governments. The financial activities of these funds are excluded from the City-wide financial statements, but are presented in separate Fiduciary Fund financial statements.
Successor Agency to the Redevelopment Agency Private Purpose Trust Fund is used to account for the activities of the Successor Agency to the former Redevelopment Agency of the City of Oakley.
Custodial Funds are used to report resources, not in a trust, that are held by the City for other parties outside of the City’s reporting entity.
35 186
CITY OF OAKLEY
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2023
Successor Agency
to the
Redevelopment Agency
Private Purpose Custodial
Trust Fund Funds
ASSETS
Cash and investments (Note 3 and 18) $1,501,477 $3,517,367 Cash and investments with fiscal agent (Note 3 and 18) 1,988 519,081 Accounts receivable 2,000
Interest receivable 1,619 4,189
Loans receivable (Note 18B) 597,142
Total Assets 2,104,226 4,040,637
LIABILITIES
Accounts payable 1,500 $353,270
Interest payable 254,523
Due to other agencies 672,499
Long-term debt (Note 18C):
Due within one year 920,000
Due in more than one year 21,625,343
Total Liabilities 22,801,366 1,025,769
NET POSITION (DEFICIT)
Restricted for:
Held in Trust for private purpose (20,697,140)
Bondholders 3,014,868
Total Net Position (Deficit) ($20,697,140) $3,014,868
See accompanying notes to financial statements
36 187
Successor Agency
to the
Redevelopment Agency
Private-Purpose Custodial
Trust Fund Funds
ADDITIONS
Property taxes $2,086,738
Special assessments $1,955,555
Use of money and property 57,265 58,025
Total Additions 2,144,003 2,013,580
DEDUCTIONS
Administrative expenses 39,322
Redevelopment and economic development 250,000
Payments to bondholders and related fiscal charges 1,541,851 Debt service:
Interest and fiscal charges 835,202
Total Deductions 1,085,202 1,581,173
Change in Net Position 1,058,801 432,407
NET POSITION (DEFICIT) HELD IN TRUST FOR SUCCESSOR
AGENCY AND OTHER GOVERNMENTS
Beginning of year (21,755,941) 2,582,461
End of year ($20,697,140) $3,014,868
CITY OF OAKLEY
FIDUCIARY FUNDS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2023
See accompanying notes to financial statements
37 188
This Page Left Intentionally Blank
189
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Oakley was incorporated as a general law city on July 1, 1999. Oakley is a community of approximately 45,000 residents situated in Contra Costa County on the east side of San Francisco Bay.
Oakley is located approximately 50 miles east of the City of San Francisco. The City operates under the Council-Manager form of government and provides the following services: law enforcement, highways and streets, public improvements, planning and zoning, recreation, and general administration services.
The financial statements and accounting policies of the City conform with generally accepted accounting principles applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. Significant accounting policies are summarized below:
A. Reporting Entity
The City is governed by a five member council elected by City residents. The City is legally separate and fiscally independent which means it can issue debt, set and modify budgets and fees and sue or be sued.
The accompanying basic financial statements include only the financial activities of the City and the Oakley Public Financing Authority, which is a component unit controlled by and dependent on the City.
The Authority is included (“blended”) with funds of the City since it is governed by the City Council sitting in a separate capacity.
The Oakley Public Financing Authority is a separate governmental entity whose purpose is to assist in the financing and refinancing of certain redevelopment activities of the former Redevelopment Agency and certain programs and projects of the City. The Authority’s activities to date consist only of the purchase and resale of City or Redevelopment Agency debt issues, and the issuance of the 2004-1 Limited Obligation Bonds, the 2006-1 Infrastructure Revenue Bonds, the 2006 Certificates of Participation and the Refunding Revenue Bonds, Series 2012, the Refunding Revenue Bonds, Series 2014, and the 2016 Lease Revenue Bonds. Separate financial statements are not issued for the Oakley Public Financing Authority.
B. Basis of Presentation
The City’s Basic Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Government Accounting Standards Board is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States of America.
Government-wide Statements: The Statement of Net Position and the Statement of Activities display information about the primary government (the City) and its component units. These statements include the financial activities of the overall City government. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions.
The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational needs of a particular program and (c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. 39 190
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Fund Financial Statements: The fund financial statements provide information about the City's funds, including blended component units. The emphasis of fund financial statements is on major individual governmental funds, each of which is displayed in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds.
C. Major Funds
Major governmental funds are identified and presented separately in the fund financial statements. All other funds, called non-major funds, are combined and reported in a single column, regardless of their fund-type.
Major funds are defined as funds that have either assets and deferred outflows of resources, liabilities and deferred inflows of resources, revenues or expenditures/expenses equal to ten percent of their fund-type total and five percent of the grand total. The General Fund is always a major fund. The City may also select other funds it believes should be presented as major funds.
The City reported the following major governmental funds in the accompanying financial statements:
General Fund – The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Revenues deposited in the General Fund include property tax, sales tax, franchise fees, business licenses, fines and forfeitures and fees for services. This fund is used to account for most of the City’s basic services including Legislative, General Administration, Law Enforcement, Recreation and Community Development.
Lighting and Landscaping Districts Special Revenue Fund – This fund accounts for assessments made upon parcels of land within the Lighting and Landscaping Zones #1, #2 and #3 and their use in accordance with the provisions of the State of California Streets and Highway Code.
Public Protection Special Revenue Fund – This fund accounts for dedicated Police Services Special Taxes and State COPS program funds.
Low and Moderate Income Housing Asset Special Revenue Fund – This fund accounts for the housing assets of the former Oakley Redevelopment Agency and loan repayments restricted to low and moderate income housing projects.
ARPA Special Revenue Fund – This fund accounts for American Rescue Plan Act funding. The City is allowed to claim $10 million of the funds as an economic loss, which can be used to provide government services. The remaining $177,190 is being claimed as a partial reimbursement for special COVID-19 sick leave that the City’s General Fund has paid out during the pandemic.
Traffic Impact Fees Capital Projects Fund – This fund accounts for fees assessed on new development to provide street and road improvements.
40 191
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The City also reports the following fund types:
Internal Service Funds – The funds account for equipment replacement and capital facilities maintenance and replacement; all of which are provided to City departments on a cost reimbursement basis.
Fiduciary Funds – These funds are used to account for assets held by the City as an agent or trustee for individuals, private organizations, and other governments. The Successor Agency to the Redevelopment Agency Private-Purpose Trust Fund accounts for the accumulation of resources to be used for payments at appropriate amounts and times in the future. Custodial funds are used to account for assets held by the City for the Assessment Districts 2004-1 and 2006-1, assets held on behalf of the County for regional mitigation fees and on behalf of other agencies for other purposes. The financial activities of these funds are excluded from the City-wide financial statements, but are presented in separate Fiduciary Fund financial statements.
D. Basis of Accounting
The government-wide and fiduciary fund financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after year-end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, including lease liabilities, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Governmental capital asset acquisitions, including entering into contracts giving the City the right to use leased assets and right-to-use subscription assets, are reported as expenditures in governmental funds. Proceeds of governmental long-term debt and financing through leases are reported as other financing sources.
Those revenues susceptible to accrual are sales tax, transfer tax, fines, interest revenue and gross receipts taxes. Charges for services, and licenses and permits are not susceptible to accrual because they are not measurable until received in cash.
Non-exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include taxes, grants, entitlements, and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
The City may fund programs with a combination of cost-reimbursement grants, categorical block grants, special purpose revenues and general purpose revenues. While both restricted and unrestricted Net Position may be available to finance program expenditures the City’s policy is to first apply restricted purpose revenues to such programs, followed by general purpose revenues if necessary.
Certain indirect costs are included in program expenses reported for individual functions and activities. 41 192
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) E. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position or balance sheet report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.
In addition to liabilities, the statement of net position or balance sheet report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets or fund balance 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 only one item, which arises only under a modified accrual basis of accounting, that qualifies for reporting in this category.
Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet.
The governmental funds report unavailable revenues from four sources: accounts receivable, interest on interfund advances, loans receivable and leases receivable. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.
F. Accounts Receivable
Receivables at June 30, 2023 were comprised of the following:
Inter- Total Less Net
Governmental Activities: Taxes Accounts Governmental Receivables Allowance Receivables General Fund $1,348,521 $47,575 $256,482 $1,652,578 ($113,413) $1,539,165 ARPA Special Revenue Fund 275 275 275
Traffic Impact Fees Capital Projects Fund 50,223 50,223 50,223 Non-Major Governmental Funds 252,575 1,371,990 1,624,565 1,624,565 Total $1,348,521 $300,150 $1,678,970 $3,327,641 ($113,413) $3,214,228 G. Property Taxes and Special Assessment Revenue
Revenue is recognized in the fiscal year for which the tax and assessment is levied. The County of Contra Costa levies, bills and collects property taxes and special assessments for the City; under the County’s “Teeter Plan” the County remits the entire amount levied for secured taxes and handles all delinquencies, retaining interest and penalties. Secured and unsecured property taxes are levied on January 1 of the preceding fiscal year.
Secured property tax is due in two installments, on November 1 and February 1 and becomes a lien on those dates. It becomes delinquent on December 10 and April 10, respectively. Unsecured property tax is due on July 1, and becomes delinquent on August 31.
The term “unsecured” refers to taxes on personal property other than real estate, land and buildings.
These taxes are secured by liens on the personal property being taxed. Secured and unsecured property tax revenues are recognized by the City in the fiscal year they are assessed, provided they become available as defined above.
42 193
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) H. Compensated Absences
Compensated absences comprise unpaid vacation and certain compensated time off, which are accrued as earned. For all governmental funds, amounts expected to be paid out for permanent liquidation are recorded as fund liabilities; the long-term portion is recorded in the Statement of Net Position. The liability for compensated absences is determined annually. The changes in the compensated absences were as follows:
Governmental
Activities
Beginning Balance $1,707,180
Additions 690,006
Payments (523,243)
Ending Balance $1,873,943
Current Portion $374,788
The long-term portion of governmental activities compensated absences is liquidated primarily by the General Fund.
I. Prepaids and Deposits
Certain payments to vendors reflect costs applicable to future fiscal years and are recorded as prepaid items in both government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.
Prepaids and deposits in governmental funds are equally offset by nonspendable fund balance which indicates that they do not constitute available spendable resources even though they are a component of net current assets.
J. Fair Value Measurements
Fair value is defined as 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. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels based on the extent to which inputs used in measuring fair value are observable in the market.
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 inputs are inputs – other than quoted prices included within level 1 – that are observable for an asset or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for an asset or liability.
If the fair value of an asset or liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement.
43 194
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) K. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
L. Cash and Cash Equivalents
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition.
M. New and Inactive Funds
During fiscal year 2022-23, the City established the following funds:
• Opioid Remediation Special Revenue Fund accounts for funds received from the State from the settlement agreement with Janssen and Distributors. The settlement funds are restricted to uses related to opioid abatement.
• Officer Wellness and Mental Health Grant Special Revenue Fund accounts for grant funds received from the Bureau California Board of State and Community Corrections (BSCC). The Officer Wellness and Mental Health (Officer Wellness) Grant Program, established in the 2022 Budget Act, provides funds for the purpose of improving officer wellness and expanding mental health sources.
• Community Facilities District 2020-1 accounts for the activities associated with the operations and maintenance associated with the City’s Community parks and the public landscape, street lighting, and storm drain maintenance associated with the Contra Costa Logistics Center project.
The activity was previously reported as a component of the Lighting and Landscaping The OTS Police Grants Special Revenue Fund was closed as of July 1, 2022, but is expected to have activity in the future.
The Oakley Welcoming Special Revenue Fund and the Fire Impact Fees Capital Projects Fund were closed as of June 30, 2023.
44 195
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 2 – BUDGETS AND BUDGETARY ACCOUNTING
A. Budget Policy
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
1. The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them.
2. Work sessions are conducted to obtain citizen’s comments.
3. The budget is legally enacted by City Council resolution.
4. All appropriations transfers between funds must be approved by the City Council by resolution during the fiscal year. The City Manager is authorized to transfer unencumbered appropriations within a fund. In addition, amendments that are made to authorize spending of increased or new special purpose revenues may be approved by the City Manager. The legally adopted budget requires that expenditures not exceed total appropriations at the fund level.
5. Budgets are adopted for all Governmental Funds except the Opioid Remediation Special Revenue Fund and the Officer Wellness and Mental Health Grant Special Revenue Fund, as well as the 2006-1 Assessment District Capital Projects Fund, which is governed by bond convents.
In addition, the ARPA Special Revenue Fund is budgeted on a project length basis and therefore is not comparable on an annual basis.
6. Formal budgetary integration is employed as a management control device during the year for all budgeted funds.
7. Budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP).
8. Budgeted amounts appearing in the budgetary comparison statements are as originally adopted or as amended by the City Council or the City Manager, as authorized.
B. Encumbrances
Under encumbrance accounting, purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation. Encumbrance accounting is employed as an extension of formal budgetary integration in all budgeted funds.
Unexpended operating appropriations lapse at year end and must be reappropriated in the following year.
Unexpended capital projects appropriations are automatically reappropriated in the following year.
Encumbrances outstanding at year-end are recorded as restricted, committed or assigned fund balance, depending on the classification of the resources to be used to liquidate the encumbrance, since they do not constitute expenditures or liabilities.
45 196
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 2 – BUDGETS AND BUDGETARY ACCOUNTING (Continued)
C. Expenditures in Excess of Appropriations
The following funds incurred expenditures in excess of appropriations:
Fund
Excess of
Expenditures Over
Appropriations
Public Protection Special Revenue Fund $82,138
Low and Moderate Income Housing Asset Special Revenue Fund 18,718 Developer Deposits Special Revenue Fund 154,726
Fire Impact Fees Capital Projects Fund 202,374
The funds had sufficient revenues or other resources to finance these expenditures.
46 197
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 3 – CASH AND INVESTMENTS
The City pools cash from all sources and all funds, except cash of the Successor Agency and cash with fiscal agents, so that it can be invested at the maximum yield, consistent with safety and liquidity, while individual funds can make expenditures at any time.
A. Policies
The City and its fiscal agents invest in individual investments and in investment pools. Individual investments are evidenced by specific identifiable pieces of paper called securities instruments, or by an electronic entry registering the owner in the records of the institution issuing the security, called the book entry system. Individual investments are generally made by the City’s fiscal agents as required under its debt issues. In order to maximize security, the City employs the Trust Department of a bank as the custodian of all City managed investments, regardless of their form.
California Law requires banks and savings and loan institutions to pledge government securities with a market value of 110% of the City’s cash on deposit, or first trust deed mortgage notes with a market value of 150% of the deposit, as collateral for these deposits. Under California Law this collateral is held in a separate investment pool by another institution in the City’s name and places the City ahead of general creditors of the institution.
The City’s investments are carried at fair value, as required by generally accepted accounting principles.
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.
B. Classification
Cash and investments are classified in the financial statements as shown below:
City cash and investments:
Cash and investments available for operations $94,540,695 Cash and investments with fiscal agent 1,586,514
Total City Cash and Investments 96,127,209
Cash and investments in Fiduciary Funds (Separate Statement):
Successor Agency to the Redevelopment
Agency Private Purpose Trust Fund:
Cash available for operations 1,501,477
Cash and investments with fiscal agent 1,988
Custodial Funds:
Cash and investments available for operations 3,517,367 Cash and investments with fiscal agent 519,081
Total Cash and Investments $101,667,122
47 198
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 3 – CASH AND INVESTMENTS (Continued)
C. Investments Authorized by the California Government Code and the City’s Investment Policy The City’s Investment Policy and the California Government Code allow the City to invest in the following, provided the credit ratings of the issuers are acceptable to the City; and approved percentages and maturities are not exceeded. The table below also identifies certain provisions of the California Government Code or the City’s Investment Policy:
Authorized Investment Type
Maximum
Maturity
Minimum
Credit
Quality
Maximum
Percentage
of Portfolio
Maximum
Investment
In One Issuer
Local Agency Bonds 5 years No Limit No Limit
U.S. Treasury Obligations 5 years No Limit No Limit
State Obligations-California and Others 5 years A No Limit No Limit
California Local Agency Obligations 5 years A No Limit No Limit
U.S. Agency/Government Sponsored Obligations 5 years 33% No Limit
Bankers Acceptances 180 days 40% 30%
Commercial Paper – Non-Pooled Funds 270 days A-1 25% 10% (A)
Commercial Paper – Pooled Funds 270 days A-1 40% 10% (A)
Negotiable Certificates of Deposit 5 years A 30% No Limit
Placement Service Certificates of Deposit 5 years FDIC or NCUA Coverage
50% No Limit
Non-negotiable Certificates of Deposit 5 years No Limit No Limit Medium-Term Corporate Notes 5 years A 30% 10% (A)
Money Market Mutual Funds and Mutual Funds N/A AAA 20%/(10% per fund)
No Limit
Asset-Backed Securities 5 years AAA 20% No Limit
California Local Agency Investment Fund N/A No Limit $75 million per account
Shares of beneficial interest in a Joint Powers
Authority (e.g. Investment Trust of California
(CalTrust) or California Asset Management Program
(CAMP)
N/A No Limit No Limit
Supranational Obligations 5 years AA 30% No Limit
(A) The City may purchase no more than 10% of the outstanding commercial paper and medium-term notes of any single issuer.
48 199
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 3 – CASH AND INVESTMENTS (Continued)
D. Investments Authorized by Debt Agreements
The City and Successor Agency must maintain required amounts of cash and investments with trustees or fiscal agents under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged reserves to be used if the City fails to meet its obligations under these debt issues. The California Government Code requires these funds to be invested in accordance with City resolutions, bond indentures or State statutes. The table below identifies the investment types that are authorized for investments held by fiscal agents. The table also identifies certain provisions of these debt agreements:
Authorized Investment Type
Maximum
Maturity
Minimum
Credit
Quality
U.S. Government Securities N/A Aaa/AAA
U.S. Government Agency Securities N/A N/A
Local Agency Investment Fund N/A $75 million per
account
Bankers Acceptances 360 days A1/A1+/P1
Commercial Paper 270 days A-1+/P-1
Money Market Funds N/A A/AAAm/AAAm
Municipal Obligations N/A Aaa/AAA
Pre-refunded Municipal Obligations N/A Highest
General Obligations N/A A2/A
Investment Agreements/Contracts N/A A
Repurchase Agreements N/A N/A
Investments fully insured by the FDIC N/A N/A
Tax-exempt Obligations N/A Highest Rating
Short term Certificates of Deposit 360 days A1/A1+/P1
Certificates of Deposit N/A A
California Asset Management Program N/A N/A
Shares in a California Common Law Trust N/A N/A
E. Public Agencies Post-Employment Trust
On June 29, 2017, the City Council adopted resolution 86-17 approving the adoption of the Public Agencies Post-Employment Trust administered by Public Agency Retirement Services (PARS). The Trust is an irrevocable trust and qualifies as an Internal Revenue Section 115 trust. This trust will assist the City in mitigating the CalPERS contribution rate volatility. Investments of funds held in Trust are governed by the Investment Guideline Document for the investment account and by the agreement for administrative services with PARS, rather than the general provisions of the California Government Code or the City’s investment policy. The City elected a discretionary investment approach which allows the City to maintain oversight of the investment management, control on target yield and the portfolio’ risk tolerance, under the Balanced Index PLUS investment option. The assets in the Trust will eventually be used to fund pension plan obligations.
49 200
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 3 – CASH AND INVESTMENTS (Continued)
F. Interest Rate Risk and Fair Value Hierarchy
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Normally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City generally manages its interest rate risk by holding investments to maturity.
Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the distribution of the City’s investments by maturity or earliest call date:
Less Than One to
Investment Type One Year Five Years Total
Cash and Investments in City Treasury:
U.S. Treasury Notes $6,791,926 $16,227,474 $23,019,400
Medium Term Corporate Notes 287,229 3,763,829 4,051,058 Local Agency Investment Fund 11,894,307 11,894,307
Money Market Funds 1,846,120 1,846,120
Capital Asset Management Program 55,929,238 55,929,238
CalTRUST 281,105 281,105
Held by Fiscal Agents:
Capital Asset Management Program
PARS Balanced Index PLUS 1,047,201 1,047,201
Money Market Funds 1,060,382 1,060,382
Total Investments $79,137,508 $19,991,303 99,128,811
Cash deposits in banks 2,538,311
Total Cash and Investments $101,667,122
The City is a participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share. The balance is available for withdrawal on demand, and is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Each regular LAIF account is permitted to have up to 15 transactions per month, with a minimum transaction amount of $5,000, a maximum transaction amount of $75 million and at least 24 hours advance notice for withdrawals of $10 million or more. Bond proceeds accounts are subject to a one‐time deposit with no cap and are set up with a monthly draw down schedule. Included in LAIF’s investment portfolio are collateralized mortgage obligations, mortgage-backed securities, other asset-backed securities, loans to certain state funds, and floating rate securities issued by federal agencies, government-sponsored enterprises, United States Treasury Notes and Bills, and corporations. On June 30, 2023, these investments matured in an average of 260 days.
50 201
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 3 – CASH AND INVESTMENTS (Continued)
The City is a participant in the Short-Term Fund of the Investment Trust of California (CalTRUST), a joint powers authority and public agency established by its members under the provisions of Section 6509.7 of the California Government Code. Members and participants are limited to California public agencies. CalTRUST is governed by a Board of Trustees of seven Trustees, at least seventy-five percent of whom are from the participating agencies. The City reports its investment in CalTRUST at the fair value amount provided by CalTRUST, which is the same as the value of the pool shares. The balance is available for withdrawal on demand, and is based on the accounting records maintained by CalTRUST. Included in CalTRUST’s investment portfolio are: United States Treasury Notes, Bills, Bonds or Certificates of Indebtedness; registered state warrants or treasury notes or bonds; California local agency bonds, notes, warrants or other indebtedness; federal agency or United States governmentsponsored enterprise obligations; bankers acceptances; commercial paper; negotiable certificates of deposit; repurchase agreements; medium-term notes; money market mutual funds; notes, bonds or other obligation secured by a first priority security interest in securities authorized under Government Code Section 53651; and mortgage passthrough securities, collateralized mortgage obligations, and other asset – backed securities.
CalTRUST’s Short-Term Fund has a target portfolio duration of 0 to 2 years. On June 30, 2023, these investments matured in an average of 321 days. The investment in CalTRUST, classified in Level 2 of the fair value hierarchy, is valued based on the fair value factor provided by the CalTRUST, which is calculated as the average cost to net asset value per share of the Short-Term Fund. At June 30, 2023, the fair value approximated the City’s cost.
The City, as a CAMP shareholder, may withdraw all or any portion of the funds in each CAMP account at any time by redeeming shares. The CAMP Declaration of Trust permits the CAMP trustee to suspend the right of withdrawal from CAMP or to postpone the date of payment of redemption proceeds if the New York Stock Exchange is closed other than for customary weekend and holiday closings, if trading on the New York Stock Exchange is restricted, or if, in the opinion of the CAMP trustees, an emergency exists such that disposal of the CAMP pool securities or determination of its net asset value is not reasonably practicable. If the right of withdrawal is suspended, the City may either withdraw its request for that withdrawal or receive payment based on the net asset value of the CAMP pool next determined after termination of the suspension of the right of withdrawal. At June 30, 2023, the fair value approximated the City’s cost. At June 30, 2023, these investments have an average maturity of 26 days.
Money market funds are available for withdrawal on demand and at June 30, 2023 matured in an average of 23 days.
51 202
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 3 – CASH AND INVESTMENTS (Continued)
G. 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 is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the actual rating as of June 30, 2023 for each investment type as provided by Standard and Poor’s investment rating system.
Investment Type AAA/AAAm AA+/AA/AA- A+/A/A- Total
Cash and Investments in City Treasury:
Medium Term Corporate Notes $1,524,857 $2,526,201 $4,051,058 Capital Asset Management Program $55,929,238 55,929,238 CalTRUST 281,105 281,105
Money Market Funds 1,846,120 1,846,120
Held by Fiscal Agents:
Money Market Funds 1,060,382 1,060,382
Total Rated Investments $58,835,740 $1,805,962 $2,526,201 63,167,903 Local Agency Investment Fund 11,894,307
PARS Balanced Index PLUS 1,047,201
Exempt:
U.S. Treasury Notes 23,019,400
Total Investments $99,128,811
Not Rated:
52 203
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 3 – CASH AND INVESTMENTS (Continued)
H. Fair Value Hierarchy
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 fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs.
The following is a summary of the fair value hierarchy of the fair value of investments of the City as of June 30, 2020:
Measured at Measured at
Investment Type Level 1 Level 2 Net Asset Value Amortized Cost Total Cash and Investments in City Treasury:
U.S. Treasury Notes $23,019,400 $23,019,400
Medium Term Corporate Notes $4,051,058 4,051,058
Capital Asset Management Program $55,929,238 55,929,238 CalTRUST $281,105 281,105
Money Market Funds 1,846,120 1,846,120
Held by Fiscal Agents:
PARS Balanced Index PLUS 1,047,201 1,047,201
Money Market Funds 1,060,382 1,060,382
Total Investments $23,019,400 $4,051,058 $1,328,306 $58,835,740 87,234,504 Investments Exempt from Fair Value Hierarchy:
Local Agency Investment Fund 11,894,307
Cash deposits in banks 2,538,311
Total Cash and Investments $101,667,122
Investments classified in Level 1 of the fair value hierarchy were valued using quoted prices in active markets. All investments classified in Level 2 of the fair value hierarchy were valued using matrix pricing techniques maintained by various pricing vendors. These prices were obtained from various pricing sources from our custodian bank. The California Local Agency Investment Fund is exempt from classification in the fair value hierarchy. Fair value is defined as the quoted market value on the last trading day of the period.
I. Concentration of Credit Risk
At June 30, 2023, City had no significant investments in the securities of any individual issuers, other than U. S. Treasury securities, investment pools and money market funds.
53 204
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 4 – INTERFUND TRANSACTIONS
A. Transfers Between Funds
With Council approval, resources may be transferred from one City fund to another. Transfers are used:
to move revenue from the fund that statute or budget requires to collect the item to the fund that statute or budget requires to expend the item; distribute unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds in accordance with budgetary authorizations; to segregate money for anticipated capital projects; and to provide additional resources for current operations or debt service.
Transfers between Funds during the fiscal year ended June 30, 2023 and the purpose for each were as follows:
Transfer
Fund Receiving Transfer Fund Making Transfers Amount
Lighting and Landscaping Districts Special Revenue Fund General Fund $4,000 (A) Non-Major Governmental Fund 22,288 (A)
Non-Major Governmental Funds General Fund 9,573,974 (A), (B) Lighting and Landscaping Districts Special Revenue Fund 18,466 (C) Non-Major Governmental Funds 666,769 (A),(D)
Total Interfund Transfers $10,285,497
(A) To fund capital projects and administration.
(B) To close fund.
(C) To establish new fund.
(D) To fund debt service.
54 205
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 4 – INTERFUND TRANSACTIONS (Continued)
B. Long-Term Interfund Advances
At June 30, 2023, the funds below had made advances which were not expected to be repaid within the next year. The balances in the funds with the advance to other funds are offset by deferred inflow, or nonspendable or restricted fund balance.
Advanced
Advances to Other Funds Advances from Other Funds Amount General Fund Lighting and Landscaping Districts Special Revenue Fund $78,532 Traffic Impact Fees Capital Projects Fund Low and Moderate Income Housing Asset Special Revenue Fund 606,402 Non-Major Governmental Funds Low and Moderate Income Housing Asset Special Revenue Fund 593,490 Total Interfund Advances $1,278,424
Since the City’s formation in 1999, the General Fund has, on occasion, made advances to the Lighting and Landscaping Districts Special Revenue Fund to cure operating deficits in two of the Landscaping Districts. The advances bear interest at the City’s investment pool rate. The balance of these advances totaled $78,532 at June 30, 2023.
The Traffic Impact Fees Capital Projects Fund, Park Impact Fees Capital Projects Fund, and Public Facilities Impact Fees Capital Projects Fund agreed to accept deferred payment of impact fees by the former Redevelopment Agency to assist with the Courtyards at Cypress Grove affordable housing project.
Although no cash was advanced, these obligations were recorded as advances to the former Redevelopment Agency. The City’s Low and Moderate Income Housing Asset Special Revenue Fund, as Housing Successor to the former Redevelopment Agency’s housing activities, assumed the obligation to repay the advances, which will be repaid from future loan collections. The advances bear interest at the City’s annual pooled investment rate which was of 2.17% for fiscal year 2023. The balance outstanding at June 30, 2023 was $1,199,892.
C. Current Interfund Balances
Current interfund balances arise in the normal course of business and are expected to be repaid shortly after at the end of the fiscal year. The Public Protection and NPDES Special Revenue Funds and the Cypress Grove Capital Projects Fund owed the General Fund $3,583, $194,310, and $56,010, .respectively, as of June 30, 2023.
55 206
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 5 – LOANS RECEIVABLE
A. Low and Moderate Income Housing and City Loans Receivable The former Redevelopment Agency engaged in programs designed to encourage construction of or improvement in low-to-moderate income housing. Under these programs, grants or loans were provided under favorable terms to homeowners or developers who agreed to expend these funds in accordance with the Agency’s terms. With the dissolution of the Redevelopment Agency as discussed in Note 18, the City agreed to become the successor to the Redevelopment Agency’s housing activities and as a result the Low and Moderate Income Housing Asset Fund assumed the loans receivable of the Redevelopment Agency’s Low and Moderate Income Housing Fund. In addition, the City has made loans to certain employees and to local businesses for economic development. Although these loans and notes are expected to be repaid in full, their balance has been offset by unavailable revenue or nonspendable fund balance. The balances of the loans receivable, including accrued interest, on June 30, 2023 are set forth below:
Golden Oak Manor $1,267,548
Silver Oak Apartments 655,862
Oakley Senior Housing 629,688
Oakley Cypress Associates 3,818,750
Carol Lane 5,751,235
First Time Homebuyer 123,377
New Lifeline Ministries 16,878
Downtown Revitalization Loan Program 94,370
Total $12,357,708
B. Golden Oak Manor
Under the terms of a Loan Agreement dated December 19, 1994 between the Redevelopment Agency and the Developer, Golden Oak Manor, L.P., the Agency loaned the amount of $780,000 to construct 50 senior residential rental units, with 24 of the units being restricted to very low income households. The loan is secured by a deed of trust on the property, is due in 2054 and bears simple annual interest of 3 percent. Interest and principal are deferred for 60 years or upon transfer of the property to an unqualified entity. Any unpaid amounts are considered deferred; all deferred principal and interest is due when the note matures. During fiscal year 2017, the loan was assigned and transferred from Golden Oak Manor, L.P., to Golden Oak Manor II, L.P.
C. Silver Oak Apartments
Under the terms of a Loan Agreement dated May 1, 1998 between the Redevelopment Agency and the Developer, Ecumenical Association for Housing, the Agency loaned $374,220 along with an additional $99,206 in January 1999, for a total loan amount of $473,426, to fund the construction of 24 affordable housing units. The loan is secured by a deed of trust on the property, is due in 2058 and bears simple annual interest of 3 percent with principal and interest due annually to the extent there is “residual receipts” as defined in the agreement. Any unpaid amounts are considered deferred; all deferred principal and interest is due when the note matures.
56 207
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 5 – LOANS RECEIVABLE (Continued)
D. Oakley Senior Housing
Under the terms of a Loan Agreement dated February 8, 2000 between the Redevelopment Agency and the Developer, Oakley Senior Associates, L.P., the Agency loaned the amount of $1,800,000 to fund the acquisition and development costs to construct eighty units of affordable housing for low and moderate income seniors. The loan is secured by a deed of trust on the property, is due in 55 years from the issuance of the certificate of completion, but not later than 2058, and bears simple annual interest of 3 percent, with principal and interest due annually to the extent there is “residual receipts” as defined in the agreement. Any unpaid amounts are considered deferred; all deferred principal and interest is due when the note matures. The Agency received a payment of $547,000 from the developer during fiscal year 2002. A portion of the loan had been funded by the Redevelopment Agency Projects Fund, and with the dissolution of the Agency effective February 1, 2012, the assets of the Redevelopment Agency Projects Fund, including a portion of the Oakley Senior Housing loan in the amount of $623,082, were assumed by the Successor Agency as discussed in Note 18. In July 2022, the Successor Agency agreed to subordinate its loan to the primary lender on the project, which puts the Successor Agency’s loan in the second position.
E. Oakley Cypress Associates
Under the terms of the Loan Agreement dated December 1, 2005, the former Redevelopment Agency loaned $2.5 million to Oakley Cypress Associates to assist in the development of 96 affordable housing units. The loan is secured by a deed of trust on the property and bears simple interest of 3 percent annually. Principal and interest payments are due annually to the extent that Oakley Cypress Associates has “residual receipts” as defined in the agreement. The remaining balance of unpaid principal and accrued interest is due fifty-five years after the issuance of the certificate of completion, but no later than December 1, 2063.
F. Carol Lane
Under the terms of a Loan Agreement dated February 23, 2007 between the Redevelopment Agency and the Developer, 59 Carol Lane, L.P., the Agency loaned the amount of $3,858,753 to fund the acquisition and development costs to construct two hundred and eight units of senior and family affordable housing for low and very-low income households. The loan is secured by a deed of trust on the property, is due in 55 years from the issuance of the certificate of completion, but not later than 2062, and bears simple interest of 3 percent annually, with principal and interest due annually to the extent there are “residual receipts” as defined in the agreement. Any unpaid amounts are considered deferred; all deferred principal and interest is due when the note matures.
G. First-Time Homebuyer Program
The Redevelopment Agency administered a First-Time Homebuyers Program funded by Bond proceeds in the amount of $512,392 in 1994, under which low and moderate income individuals may qualify for first-time home buyer deferred second mortgages to purchase homes in the Oakley area. The individual loans are 30-year fixed rate deferred loans, bearing interest at a rate equal to two percent below the Lender’s rate and do not exceed $50,000. These loans are due thirty years from the date of issuance, but principal and accrued interest will be forgiven at maturity if the unit was owner occupied for the full thirty years. Under the terms of the Program, loans must be repaid in full if the property is sold to a nonqualified buyer.
57 208
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 5 – LOANS RECEIVABLE (Continued)
H. New Lifeline Ministries
The City installed frontage improvements that are to be paid by the property owner, New Lifeline Ministries. Under the terms of a June 2015 reimbursement agreement, New Lifeline Ministries agreed to reimburse the City for its costs incurred in the amount of $36,165. The loan is unsecured, bears interest of 1% and is repayable in equal monthly installments over 15 years. The balance of the loan as of June 30, 2023 was $16,878.
I. Revitalization Loan Program
In 2014, the City Council approved funds to be allocated for the Downtown Revitalization Loan Program. The goal of the Loan Program is to leverage public funds and private investment to further enhance the physical appearance and economic vitality of the commercial buildings and businesses in the downtown corridor. The long-term objectives of the program include improving the physical appearance of the buildings and area, encouraging the retention and attraction of businesses to the corridor, increasing property values, increasing tenant stability, increasing pedestrian walkability and creating a stronger “sense of place”. Loan funds under the program can be used for façade improvements, landscaping and exterior lighting, signage, ADA compliance, building infrastructure upgrades needed for new tenant conversion and demolition. The loan program requires that the applicant contribute minimum equity of 10% of the total projects.
The loans under this program are secured by a promissory note and a personal guarantee, as well as UCC filings on all equipment purchased by the loan. 50% of the loan, or $37,500, of the loan can be assumed and prepaid with no prepayment penalty, but is due and payable if the business is sold. The balance of the loan was $94,370 as of June 30, 2023.
NOTE 6 – LAND HELD FOR RESALE
The City has purchased parcels that are expected to be resold in the near future. Such land parcels are accounted for at the lower of cost or net realizable value or agreed-upon sales price if a disposition agreement has been made with a developer.
The balance of land held for resale in the General Fund at June 30, 2023 was $3,324,182.
58 209
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 7 – CAPITAL ASSETS
All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available, except for intangible right to use subscription assets, the measurement of which is described in Note 15 below. Contributed capital assets are valued at their estimated acquisition value on the date contributed.
All capital assets with limited useful lives are depreciated over their estimated useful lives. The purpose of depreciation is to spread the cost of capital assets equitably among all users over the life of these assets.
The amount charged to depreciation expense each year represents that year’s pro rata share of the cost of capital assets.
Depreciation is provided using the half-year convention method which is like the straight-line method in that the cost of the asset is divided by its expected useful life in years, but the asset is depreciated over 6 months instead over one year in its first year. The result is charged to expense each year until the asset is fully depreciated. The capitalization threshold for equipment with a cost of $5,000 or more and a useful life of more than two years, and for all buildings, improvements and infrastructure with a cost of $50,000 or more and a useful life of more than two years. The City has assigned the useful lives listed below to capital assets:
Buildings 40 years
Improvements 5-15 years
Machinery and Equipment 5 years
Vehicles 5 years
Roadways:
Streets (includes pavement, sidewalk,
curb & gutters, trees & signs)
7-40 years
Traffic Signals 25 years
Street Lights 40 years
Bridges 100 years
Parks and Recreation:
General Improvement 25 years
Specialty Features 10 years
Major outlays for capital assets and improvements are capitalized as projects are constructed. 59 210
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 7 – CAPITAL ASSETS (Continued)
A. Capital Assets Additions and Retirements
Capital asset balances comprise the following:
Balance as of Balance as of
June 30, 2022 Additions Retirements Transfers June 30, 2023 Governmental Activities:
Capital assets not being depreciated:
Land $18,531,130 $4,095 $18,535,225
Construction in Progress 7,234,020 9,728,799 ($5,377,160) 11,585,659 Total capital assets not being depreciated 25,765,150 9,732,894 (5,377,160) 30,120,884 Capital assets being depreciated:
Buildings and Improvements 28,653,876 2,735,010 1,896,469 33,285,355 Machinery and Equipment 2,846,495 417,714 62,947 3,327,156 Vehicles 2,119,127 423,760 ($196,795) (62,947) 2,283,145 Roadways:
Pavement 224,273,358 1,635,741 2,839,343 228,748,442
Sidewalks 11,732,776 219,935 11,952,711
Storm Drains 7,555,713 1,024,640 8,580,353
Curbs and Gutters 13,061,134 151,600 212,289 13,425,023 Traffic Signals 8,005,183 589,000 200,198 8,794,381
Regulatory Signs and Street Trees 5,048,824 848,479 228,861 6,126,164 Street Lights 4,602,008 119,500 4,721,508
Bridges 4,422,722 4,422,722
Parks and Recreation Structures 24,211,991 24,211,991
Total capital assets being depreciated 336,533,207 8,165,379 (196,795) 5,377,160 349,878,951 Less accumulated depreciation for:
Buildings and Improvements (7,927,923) (1,023,318) (8,951,241) Machinery and Equipment (2,380,281) (173,474) (62,947) (2,616,702) Vehicles (1,598,093) (234,118) 196,795 62,947 (1,572,469) Roadways:
Pavement (95,780,937) (5,909,259) (101,690,196)
Sidewalks (3,777,842) (172,210) (3,950,052)
Storm Drains (352,874) (322,721) (675,595)
Curbs and Gutters (3,819,039) (218,139) (4,037,178)
Traffic Signals (2,735,248) (317,312) (3,052,560)
Regulatory Signs and Street Trees (2,267,106) (314,446) (2,581,552) Street Lights (1,611,771) (116,354) (1,728,125)
Bridges (1,290,863) (44,226) (1,335,089)
Parks and Recreation Structures (8,531,365) (941,676) (9,473,041) Total accumulated depreciation (132,073,342) (9,787,253) 196,795 (141,663,800) Net capital assets being depreciated 204,459,865 (1,621,874) 5,377,160 208,215,151 Governmental activities capital assets, net $230,225,015 $8,111,020 $238,336,035 60 211
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 7 – CAPITAL ASSETS (Continued)
B. Capital Asset Contributions
Some capital assets may be acquired using federal and State grant funds, or they may be contributed by developers or other governments. These contributions are accounted for as revenues at the time the capital assets are contributed.
C. Depreciation Allocation
Depreciation expense is charged to functions and programs based on their usage of the related assets. The amounts allocated to each function or program are as follows:
Governmental Activities
Administrative Services $269,983
Public Works 8,857,479
Internal Service Funds 659,791
Total Depreciation $9,787,253
NOTE 8 – LONG-TERM DEBT
The City generally incurs long-term debt to finance projects or purchase assets which will have useful lives equal to or greater than the related debt. The City’s long-term debt is recorded only in the government-wide financial statements.
In governmental fund types, debt discounts and issuance costs are recognized in the current period.
A. Current Year Transactions and Balances
The City’s debt issue and transaction is shown below and discussed in detail thereafter.
Original
Issue Balance Balance Current
Amount June 30, 2022 Retirements June 30, 2023 Portion
2016 Lease Revenue Bonds
2.00-5.00%, due 5/1/2041 $10,025,000 $8,245,000 ($330,000) $7,915,000 $345,000 B. 2016 Lease Revenue Bonds
On December 1, 2016, the Oakley Public Financing Authority issued the 2016 Lease Revenue Bonds in the principal amount of $10,025,000 to: (i) refinance the outstanding 2006 Certificates of Participation together with related lease payment obligations, (ii) obtain additional funds to finance the construction of a community center and related facilities (the “2016 Project”), (iii) pay the premium of a debt service reserve policy for the Bonds and (iv) pay the costs of issuing the Bonds, including the premium for the Policy. Principal is payable annually and the interest is payable semi-annually through 2041. The 2006 Certificates of Participation were called on January 14, 2017. 61 212
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 8 – LONG-TERM DEBT (Continued)
Under the terms of the Trust Agreement for the 2016 Lease Revenue Bonds, an event of default occurs if (i) the Authority fails to pay interest or principal on the Bonds when due and payable, (ii) the Authority fails to observe or perform in any material way any other covenant or term contained in the Trust Agreement, (iii) the Authority commences a voluntary case under Title 11 of the United States Code, or (iv) an event of default occurs under the lease entered into in connection with the Bonds (the “Lease”).
The City has pledged City Hall as collateral for the Lease payments due to the Authority.
Upon the occurrence of an event of default, the Trustee may enforce all rights of the bond owners, including without limitation the right to receive and collect the lease payments payable by the City under the Lease (the “Lease Payments”) and declare the principal and interest of all of the Bonds then outstanding to be due and payable immediately; provided, that neither the Authority nor the Trustee may accelerate the Lease Payments or otherwise declare any Lease Payments not then in default to be immediately due and payable.
The City’s failure to pay Lease Payments when due, among other items, constitutes an event of default under the Lease. Upon the occurrence of an event of default under the Lease Agreement, the Authority may exercise any and all remedies available under law or granted under the Lease and the Trustee acting at the direction of the insurer of the Bonds, has the right to re-enter and re-let City Hall and to terminate the Lease.
C. Debt Service Requirements
Annual debt service requirements are shown below for the City’s long-term debt:
For the Year
Ending June 30 Principal Interest
2024 $345,000 $323,569
2025 360,000 309,769
2026 380,000 295,369
2027 395,000 280,169
2028 405,000 267,825
2029 - 2033 2,190,000 1,077,620
2034 - 2038 2,255,000 609,884
2039 - 2041 1,585,000 132,620
$7,915,000 $3,296,825
62 213
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 9 – ASSESSMENT DEBT WITH NO CITY COMMITMENT
On August 3, 2004, and July 19, 2006, the Oakley Public Financing Authority issued $17,150,000 principal amount of Revenue Bonds and $11,460,000 principal amount of Infrastructure Revenue Bonds to finance the construction and acquisition of certain public improvements within the City’s Special District Nos. 2004-1 and 2006-1, respectively. On March 3, 2012, the 2004 Bonds were refunded by the Refunding Revenue bonds, Series 2012 in the principal amount of $14,775,000. On October 15, 2014, the Oakley Public Financing Authority issued Refunding Revenue Bonds, Series 2014, in the principal amount of $9,070,000 to refund the 2006 Bonds. On July 28, 2021, the Oakley Public Financing Authority issued Refunding Revenue Bonds, Series 2021, in the principal amount of $10,496,000 to refund the 2012 Bonds.
The 2021 Bonds are secured only by revenues received as payment of assessments levied against property within Special District Nos. 2004-1 and 2006-1. Neither the faith and credit nor the general taxing power of the City of Oakley have been pledged to the payment of the Bonds. Therefore, the Bonds have been excluded from the accompanying financial statements. The outstanding balances of the 2014 and 2021 Bonds were $6,475,000 and $9,107,000, respectively, at June 30, 2023.
NOTE 10 – NET POSITION AND FUND BALANCES
Net Position is measured on the full accrual basis, while Fund Balance is measured on the modified accrual basis.
A. Net Position
Net Position is the excess of all the City’s assets and deferred outflows of resources over all its liabilities and deferred inflows of resources, regardless of fund. Net Position is divided into three captions. These captions apply only to Net Position, which is determined only at the Government-wide level, and are described below:
Net investment in capital assets describes the portion of Net Position which is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets.
Restricted describes the portion of Net Position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter. These principally include developer fees received for use on capital projects, debt service requirements, and redevelopment funds restricted to low and moderate income purposes.
Unrestricted describes the portion of Net Position which is not restricted to use.
B. Fund Balances
Governmental fund balances represent the net current assets of each fund. Net current assets generally represent a fund’s cash, receivables and deferred outflows of resources, less its liabilities and deferred inflows of resources.
The City’s fund balances are classified based on spending constraints imposed on the use of resources.
For programs with multiple funding sources, the City prioritizes and expends funds in the following order: Restricted, Committed, Assigned, and Unassigned. Each category in the following hierarchy is ranked according to the degree of spending constraint:
63 214
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 10 – NET POSITION AND FUND BALANCES (Continued)
Nonspendable represents balances set aside to indicate items do not represent available, spendable resources even though they are a component of assets. Fund balances required to be maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such as prepaids, notes receivable, and land held for redevelopment are included. However, if proceeds realized from the sale or collection of nonspendable assets are restricted, committed or assigned, then nonspendable amounts are required to be presented as a component of the applicable category.
Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires the resources to be used only for a specific purpose.
Committed fund balances have constraints imposed by formal action of the City Council, such as by Resolution or Ordinance, which are equally binding, and may be altered only by the same formal action of the City Council.
Assigned fund balances are amounts constrained by the City’s intent to be used for a specific purpose, but are neither restricted nor committed. Intent is expressed by the City Council or its designee and may be changed at the discretion of the City Council or its designee under the Appropriations Control Policy, the City Manager. This category includes encumbrances that are not to be liquidated by restricted or committed resources; nonspendables, when it is the City’s intent to use proceeds or collections for a specific purpose; and residual fund balances, if any, of Special Revenue, Capital Projects and Debt Service Funds, which have not been restricted or committed.
Unassigned fund balance represents residual amounts that have not been restricted, committed, or assigned. This includes the residual general fund balance and residual fund deficits, if any, of other governmental funds.
64 215
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 10 – NET POSITION AND FUND BALANCES (Continued)
Detailed classifications of the City’s Fund Balances, as of June 30, 2023, are below:
Major Major Capital
Special Revenue Funds Projects Fund
Low and Mod
Lighting and Income Traffic Other
General Landscaping Public Housing Impact Governmental
Fund Balance Classifications Fund District Protection Asset ARPA Fees Funds Total Nonspendables:
Items not in spendable form:
Prepaids and deposits $1,368 $1,368
Loans receivable 94,370 94,370
Land held for resale 3,324,182 3,324,182
Advances 78,532 78,532
Leases receivable 21,842 21,842
Total Nonspendable
Fund Balances 3,520,294 3,520,294
Restricted for:
Pension benefits 1,047,201 1,047,201
Lighting and landscaping services $12,958,926 12,958,926 Traffic impact projects $12,255,516 12,255,516
Public facilities impact projects $3,037,069 3,037,069
Street maintenance and improvement 4,313,342 4,313,342
2006-1 Assessment District 667,732 667,732
Community Facilities District #1 2,376,847 2,376,847
Community Facilities District 2015-1 2,353,025 2,353,025 Community Facilities District 2020-1 49,860 49,860
Citywide Community Facilities 1,085,360 1,085,360
Agricultural conservation 7,350 7,350
Debt service 40,543 40,543
Park impact fees 6,473,149 6,473,149
Cypress Grove improvements 59,740 59,740
Regional Park 2,115,665 2,115,665
Total Restricted Fund Balances 1,047,201 12,958,926 12,255,516 22,579,682 48,841,325 Assigned to:
Termination payments 300,000 300,000
Uninsured claims payable 450,000 450,000
Outlay projects 39,119 39,119
Capital projects 2,800,000 2,800,000
Unfunded pension liability 1,000,000 1,000,000
Government services $164,357 164,357
Main Street Projects 12,248,030 12,248,030
Total Assigned Fund Balances 4,589,119 164,357 12,248,030 17,001,506 Unassigned:
General Fund:
Unassigned - Emergency Reserve 7,820,955 7,820,955
Other Unassigned 8,764,197 8,764,197
Other fund deficits ($821,147) (122,325) (943,472)
Total Unassigned Fund Balances 16,585,152 (821,147) (122,325) 15,641,680 Total Fund Balances $25,741,766 $12,958,926 ($821,147) $164,357 $12,255,516 $34,705,387 $85,004,805 65 216
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 10 – NET POSITION AND FUND BALANCES (Continued)
C. Minimum Fund Balance Policies
The City’s Budget Policies require the City to strive to maintain the following fund balances:
1) A minimum of 30% of the annual operating expenditures in the General Fund’s Unassigned Fund Balance for emergencies and unforeseen operating or capital needs. The primary purpose of this reserve is to protect the City’s essential service programs and funding requirements during periods of economic downturn (defined as a recession lasting two or more years) or other unforeseen catastrophic costs not covered by the annually budgeted Contingency Reserve. Should the balance in the reserve fall below the 30% threshold, a plan to restore the level over a period of no more than five years is to be included in each proposed annual budget reviewed with the City Council until the reserve has been returned to at least 30% of General Fund operating expenditures. 2) Establish an account to accumulate funds to be used for payment of accrued employee benefits for terminated employees. The accumulated amount in the reserve will equal the projected payout of accumulated benefits requiring conversion to pay on retirement for employees then eligible for retirement so there are funds to pay out accumulated benefits requiring conversion to pay on termination. The balance of the reserve was $300,000 as of June 30, 2023. 3) Claims Reserves will be budgeted at a level which, together with purchased insurance, adequately protects the City. The City will maintain a reserve of two times its deductibles for those claims covered by the insurance pool of which the City is a member (currently the Municipal Pooling Authority of Northern California). In addition, the City will perform an annual analysis of past claims not covered by the pool, and reserve an appropriate amount to pay for uncovered claims, including Labor Code Section 4850 Salary Continuation payments. The balance of the reserve was $450,000 as of June 30, 2023.
4) The City had previously established a Vehicle and Equipment Replacement Reserve Fund for the accumulation of funds for the replacement of worn and obsolete vehicles and other capital equipment. In Fiscal Year 2021/2022, the City split that fund out into the Equipment Replacement Internal Service Fund (Fund 501) and the Information Technology Internal Service Fund (Fund 503). Adequate funds will be set aside in both of these funds each year to ensure that funds are available for asset replacement at the end of the respective assets’ life cycles. As of June 30, 2023, the balance of available resources was approximately $898,000 in the Equipment Replacement Internal Service Fund and $239,000 in the Information Technology Internal Services Fund.
Staff has created a schedule of vehicles and computer equipment, along with their estimated lives and replacement values, and determined that the cost to replace existing vehicles is approximately $158,000 per year and the cost to replace existing computer equipment is approximately $142,000 on average, per year. The revised policy will ensure the City’s ability to replace assets when they reach the end of their useful lives.
66 217
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 10 – NET POSITION AND FUND BALANCES (Continued)
5) The City will seek to build and maintain a Facilities Maintenance Capital Asset Reserve Fund for capital costs associated with the maintenance of all City building facilities. The reserve will be maintained at a level at least equal to projected five year facilities maintenance capital costs. Park operating funds shall budget annual capital replacement costs and use them to fund reserves for future equipment replacement and resurfacing needs. The balance of the Facilities Maintenance Capital Asset Reserve was $636,800 as of June 30, 2023 and many of the park operating funds do not have sufficient revenues to adequately fund reserves, which does not meet the targeted level.
However, management believes the balance is sufficient to fund all anticipated replacements. 6) The City will seek to build and maintain a Storm Drain Depreciation Reserve for costs associated with the major maintenance and capital improvement costs included in the Storm Drain (NPDES) program budget. The minimum reserve level will be 50% of the costs projected over the next five years, or $250 thousand per year as of June 30, 2020. The balance of the reserve, which is a component of the NPDES Special Revenue Fund’s Restricted Fund Balance, was zero as of June 30, 2023. The reserve is expected to be reestablished from future revenues. 7) The City will establish a Reserve for Qualifying Expenditures and will transfer into it from current revenues all amounts necessary to ensure compliance with Gann Limit provisions. These funds will be used solely to pay for Gann Limit excludable capital expenditures. To qualify, they must be for assets having a value greater than $100,000 and having a useful life of at least 10 years. The City was in compliance with the Gann Limit provisions as of June 30, 2023, and therefore was not required to establish a Reserve for Qualifying Expenditures as of June 30, 2023.
D. Fund Balance Deficit
The following funds had deficit fund balance as of June 30, 2023:
Special Revenue Funds:
Low and Moderate Income Housing Asset $821,147
NPDES 115,260
Creekside Park Restoration Grant 6,996
Developer Deposits 69
The deficits are expected to be eliminated by future revenues or funding from the General Fund.
67 218
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 10 – NET POSITION AND FUND BALANCES (Continued)
E. Net Investment in Capital Assets
The balances related to Net Investment in Capital Assets are comprised of the following as of June 30, 2023:
Governmental
Activities
Capital Assets, Net of Accumulated Depreciation $238,336,035 Less Capital Debt (7,915,000)
Net Investment in Capital Assets $230,421,035
NOTE 11 – PENSION PLAN
A. General Information about the Pension Plan
Plan Description – All qualified permanent, probationary and part-time employees are eligible to participate in the City’s Safety (police) and Miscellaneous (all other) Employee Pension Rate Plans. The City’s Miscellaneous and Safety Rate Plans are part of the public agency cost-sharing multiple-employer defined benefit pension plan (PERF C), which is administered by the California Public Employees’ Retirement System (CalPERS). PERF C consists of a miscellaneous pool and a safety pool (also referred to as “risk pools”), which are comprised of individual employer miscellaneous and safety rate plans, respectively. Individual employers may sponsor more than one miscellaneous and safety rate plan. The employer participates in one cost-sharing multiple-employer defined benefit pension plan regardless of the number of rate plans the employer sponsors. The City sponsors four rate plans (three miscellaneous and one safety). Benefit provisions under the Plan are established by State statute and City resolution.
CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.
Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries.
Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
In August 2010, the City Council authorized an amendment to the contract between the City and the CalPERS in order to establish a Tier 2 retirement benefits structure. The Tier 2 changed the retirement benefit formula from 2.5% @ 55 to 2% @ 60 for new miscellaneous employees hired on or after October 18, 2010. A Tier 3 structure was established to implement the provisions of the Pension Reform Act of 2013 (PEPRA), Assembly Bill 340, and is applicable to employees new to CALPERS, and hired after December 31, 2012, and not subject to grandfathering into the previously existing Tier 2 Rate Plan.
Effective August 12, 2015, the City established a Safety Rate Plan that provides benefits for safety employees hired after January 1, 2013 using the 2.7% @ 57 benefit formula.
68 219
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 11 – PENSION PLAN (Continued)
The Plan’s provisions and benefits in effect at June 30, 2023, are summarized as follows:
Miscellaneous
Classic Tier 1 Classic Tier 2 PEPRA Tier 3
Hire date
Prior to
October 18, 2010
On or after
October 18, 2010
On or after
January 1, 2013
Benefit formula 2.5% @ 55 2.0% @ 60 2.0% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 - 55 50 - 63 52 - 67
Monthly benefits, as a % of eligible compensation 2.0 % to 2.7% 1.092% - 2.418% 1.0% - 2.5% Required employee contribution rates 8.00% 7.00% 6.75%
Required employer contribution rates 12.21% 9.12% 7.47% Required UAL contribution $90,798 $13,982 $9,225
Safety
PEPRA
Hire date
On or after
January 1, 2013
Benefit formula 2.7% @ 57
Benefit vesting schedule 5 years service
Benefit payments monthly for life
Retirement age 50 - 57
Monthly benefits, as a % of eligible compensation 2.0% - 2.7% Required employee contribution rates 13.75%
Required employer contribution rates 13.44%
Required UAL contribution $35,322
Beginning in fiscal year 2016, CalPERS collects employer contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability (UAL). The dollar amounts are billed on a monthly basis or can be paid in a lump sum at a reduced amount. The City elected to make the lump sum contributions and the required contribution for the unfunded liability was $149,327 in fiscal year 2023, as shown in the table above.
Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.
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.
For the year ended June 30, 2023, the City’s total contributions to the Plan were $1,258,262. 69 220
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 11 – PENSION PLAN (Continued)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
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 Plan and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.
As of June 30, 2023, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan as follows:
Miscellaneous $679,302
Safety 1,398,113
Total Net Pension Liability (Asset) $2,077,415
Proportionate Share
of Net Pension
Liability (Asset)
The governmental activities net pension liability is liquidated primarily by the General Fund.
The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2022, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for the Plan as of June 30, 2021 and 2022 was as follows:
Proportion - June 30, 2021 0.02567%
Proportion - June 30, 2022 0.01800%
Change - Increase (Decrease) -0.00767%
70 221
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 11 – PENSION PLAN (Continued)
For the year ended June 30, 2023, the City recognized pension expense of $4,311,520. As of June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $1,258,262 Differences between actual and expected experience 56,191 ($26,182) Changes in assumptions 211,760
Change in employer's proportion and differences between the employer’s contributions and the employer’s
proportionate share of contributions 2,245,439 (415,653) Net differences between projected and actual earnings
on plan investments 363,368
Total $4,135,020 ($441,835)
$1,258,262 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Year Ended Annual
June 30 Amortization
2024 $1,043,098
2025 775,534
2026 394,217
2027 222,074
Total $2,434,923
71 222
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 11 – PENSION PLAN (Continued)
Actuarial Assumptions – For the measurement period ended June 30, 2022, the total pension liability was determined by rolling forward the June 30, 2021 total pension liability. The June 30, 2021 total pension liabilities were based on the following actuarial methods and assumptions for all benefit tiers:
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry-Age Actuarial Cost Method
Actuarial Assumptions:
Discount Rate 6.90%
Inflation 2.30%
Salary Increases (1)
Investment Rate of Return 6.90% (2)
Mortality Derived using CalPERS Membership Data for
all Funds (3)
Post Retirement Benefit Increase The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance
floor on purchasing power applies, 2.30%
thereafter
(1) Depending on age, service and type of employment
(2) Net of pension plan investment expenses, including inflation (3) The mortality table used was developed based on CalPERS-specific date. The table includes generational mortality improvement using the Society of Actuaries Sale 80% of Scale MP-2020.
For more details on this table, please refer to the November 2021 experience study report (based on CalPERS demographic data from 2001 to 2019) that can be found on the CalPERS website.
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2021 valuation were based on the results of a November 2021 actuarial experience study for the period 2001 to 2019. Further details of the Experience Study can be found on the CalPERS website.
Discount Rate – The discount rate used to measure the total pension liability for the Plan was 6.90%. The projection of cash flows used to determine the discount rate for the Plan assumed that contributions from all plan members in the Public Employees Retirement Fund (PERF) will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
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. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach.
The expected rate of return was then adjusted to account for assumed administrative expenses of 10 basis points.
72 223
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 11 – PENSION PLAN (Continued)
The expected real rates of return by asset class are as follows:
Asset Class (1)
Assumed
Asset Allocation
Real Return
(1), (2)
Global Equity - Cap-weighted 30.0% 4.54%
Global Equity - Non-Cap-weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-Backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage -5.0% -0.59%
Total 100.0%
(1) An expected inflation of 2.30% used for this period. (2) Figures are based on the 2021 Asset Liability Management Study.
Changes of Assumptions – Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate – The following presents the City’s proportionate share of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1- percentage point higher than the current rate:
1% Decrease 5.90%
Net Pension Liability (Asset) $5,291,641
Current Discount Rate 6.90%
Net Pension Liability (Asset) $2,077,415
1% Increase 7.90%
Net Pension Liability (Asset) ($561,449)
Pension Plan Fiduciary Net Position – Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. 73 224
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 11 – PENSION PLAN (Continued)
C. Subsequent Event - Reduction of CalPERS Discount Rate On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-
21. Based on the thresholds specified in CalPERS Funding Risk Mitigation policy, the excess return of
14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate used for funding purposes of 0.20%, from 7.00% to 6.80%. Since CalPERS was in the final stages of the four-year Asset Liability Management (ALM) cycle, the CalPERS Board elected to defer any changes to the asset allocation until the ALM process concluded, and the Board could make its final decision on the asset allocation in November 2021.
On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market assumptions, economic assumptions and administrative expense assumption support a discount rate of 6.90% (net of investment expense but without a reduction for administrative expense) for financial reporting purposes. This includes a reduction in the price inflation assumption from 2.50% to 2.30% as recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study also recommended modifications to retirement rates, termination rates, mortality rates and rates of salary increases that were adopted by the CalPERS Board.
These new assumptions are reflected in the GASB 68 accounting valuation reports for the June 30, 2022 measurement date.
NOTE 12 – OTHER POST-EMPLOYMENT BENEFITS
A. PORAC Retiree Medical Trust Plan
The City established a post-employment health care defined contribution plan in May 2016, pursuant to a negotiated Memoranda of Understanding (MOU) with its Oakley Police Officers Association employee bargaining unit. The City’s funding obligation for the plan is defined within the MOU and is a specified contribution of $450 per month per police employee. Police Management (Chief and Lieutenants) also receive the same benefit.
The administration of benefits for the plan rests with the plan administrator. The administrator for the plan is the Peace Officers Research Association of California (PORAC) Retiree Medical Trust. There are no vesting requirements to be eligible to use these funds post-employment for qualified medical expenses.
The benefit can only be used to purchase post-employment health insurance.
Contributions to the plan during fiscal year 2023 were $192,600.
B. Retirement Health Savings Plan
In February 2020, the City established a retirement health savings (RHS) plan for all non-safety employees. Effective July 1, 2022, the City's funding obligation for the plan is $1,300 per year per employee.
The administration of benefits for the plan rests with the plan administrator. The administrator for the plan is Mission Square Retirement (formerly ICMA RC). To be vested in the plan an employee must have 5 years of employment to be eligible to use these funds post-employment. The benefit can only be used to fund post-employment medical expenses.
Contributions to the plan during fiscal year 2023 were $60,324. 74 225
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 13 – DEFERRED COMPENSATION PLANS
City employees may also defer a portion of their compensation under City sponsored Deferred Compensation Plans. The City offers the opportunity to participate in one of two plans, one created in accordance with Internal Revenue Code Section 457, and one created in accordance with Internal Revenue Code 401a. Under the 457 Plan, different rules apply and amounts contributed may be either pre-tax or after-tax depending on applicable plan rules; under the 401a Plan participants are not taxed on the deferred portion of their compensation until distributed to them. Under both plans, distributions may be made only at termination, retirement, death or in an emergency as defined by each Plan.
The Plans are part of the public agency agent multiple‐employer defined contribution plans that are administered by Mission Square Retirement (formerly ICMA RC). Benefit provisions under the Plans are established by City resolution.
The City has no liability for any losses incurred by the Plans and does not participate in any gains, but does have the duty of due care that would be required of an ordinary prudent investor. The City has a contract with Mission Square to manage and invest the assets of each Plan. The administrator pools the assets of each Plan with those of other participants and does not make separate investments for the City.
The assets in the Plans are the sole property of the participants or their beneficiaries. Since the assets held under the Plans are not the City’s property and are not subject to claims by general creditors of the City, they have been excluded from these financial statements. The Plans require investments to be stated at fair market value and it requires all gains and losses on Plan investments to accrue directly to participant accounts.
The City contributes a 1% match of employee contributions to the 457 Plan for all employees, except those under the Oakley Police Officers Association. Police Department lieutenants receive an additional employer contribution of 2% of base pay, for a total contribution of 3%. The Police Chief receives a 1% match of his contributions to the 457 Plan. The City Manager receives a contribution of $500 per month, as well as a 1% match of his contributions to the 457 Plan. The employer contributions vest 60% after one year, increasing 10% per year until they are 100% vested in year five.
The City contributes a 1% match of employee earnings, excluding overtime and bonuses, to the 401a Plan for employees that work an average of 30 hours per week. The employer contributions vest 60% after one year, increasing 10% per year until they are 100% vested in year five.
If an employee participates in both plans, the maximum employer matching contribution is 1%, except for Police Department lieutenants, which is a maximum of 3%.
The City’s required contributions for the year ended June 30, 2023 totaled $50,525.
75 226
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 14 - LEASES
A. Policies
A lease is defined as a contract that conveys control of the right to use another entity’s nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an exchange or exchange-like transaction. Examples of nonfinancial assets include buildings, land, vehicles, and equipment. The City recognizes lease receivables or liabilities with an initial, individual value of $50,000 or more.
Lessee - The City does not have any noncancellable leases of nonfinancial assets as of June 30, 2023. If there were such leases outstanding, the City would recognize a lease liability and an intangible right‐to‐ use lease asset (lease asset) in the government‐wide financial statements.
At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight‐line basis over its useful life.
Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments as follows:
• The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.
• The lease term includes the noncancellable period of the lease. • Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.
Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the statement of net position.
Lessor - The City is a lessor for noncancellable leases of commercial space and communication sites.
The City recognizes a lease receivable and a deferred inflow of resources in the government‐wide and fund financial statements.
At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.
76 227
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 14 – LEASES (Continued)
Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts as follows:
• The City uses its estimated incremental borrowing rate as the discount rate for leases. • The lease term includes the noncancellable period of the lease. • Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.
The City monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.
B. Leases Receivable
The balances related to leases receivable and deferred inflows of resources as of June 30, 2023 were:
Lease Deferred Inflows
Receivable of Resources
General Fund
Leases Receivable (Lessor)
Facilities rentals:
Guanatos Ice Cream $66,737 $61,923
Communication sites:
American Tower 148,923 141,948
Sprint Nextel (T-Mobile) 163,180 153,127
Total Leases Receivable $378,840 $356,998
Facilities Rentals – The City leases commercial space to third parties. During the year ended June 30, 2023, the City had three leases that were subject to being recorded as leases receivable under generally accepted accounting principles. The original lease terms were from five years to fifteen years and as of June 30, 2023, the one remaining lease had two years remaining. Two of the leases could be renewed for one additional five year term and one lease can be renewed for up to three, five year terms upon written notice of the tenant. The City did not include the extension periods in the calculation of the lease receivable balances. In July and September 2023, the underlying property of two of the leases was sold and the leases were cancelled. As a result, the City reduced the balances of leases receivable and deferred inflows of resources to zero for those leases as of June 30, 2023, since they are no longer long-term leases. The City recognized $39,357 in lease revenue and $23,568 in interest revenue during the current fiscal year related to these leases. Also, the City has deferred inflows of resources associated with these leases that will be recognized as revenue over the lease term.
Communication Site Leases – The City leases various locations to third parties for the provisions of mobile/wireless communications services. During the year ended June 30, 2023, the City had two leases, with original lease terms ranging from twenty to thirty years, including the optional extension periods, and as of June 30, 2023, the leases had 4.6 to 5.8 years remaining. The City recognized $56,685 in lease revenue and $10,397 in interest revenue during the current fiscal year related to these leases. Also, the City has deferred inflows of resources associated with these leases that will be recognized as revenue over the lease term.
77 228
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 15 – SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS A Subscription-Based Information Technology Arrangement (SBITA) is a contract that conveys control of the right to use another party’s (a SBITA vendor’s) IT software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of time in an exchange or exchange-like transaction. The City recognizes SBITA assets/liabilities with an initial, individual value of $50,000 or more.
At the commencement of a SBITA, the City initially measures the subscription liability at the present value of payments expected to be made during the contract term. Subsequently, the subscription liability is reduced by the principal portion of payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for payments made at or before the SBITA commencement date, plus certain initial direct costs. Subsequently, the subscription asset is amortized on a straight‐line basis over shorter of the subscription term or the useful life of the underlying IT assets.
Key estimates and judgments related to SBITAs include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments as follows:
• The City uses the interest rate charged by the IT vendor as the discount rate. When the interest rate charged by the IT vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for subscription liabilities. • The subscription term includes the noncancellable period of the subscription.
The City monitors changes in circumstances that would require a remeasurement of its subscription and will remeasure the subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability.
Subscription assets are reported with other capital assets and subscription liabilities are reported on the statement of net position. City did not have any SBITAs that met the criteria for capitalization as of June 30, 2023.
78 229
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 16 – RISK MANAGEMENT
A. Municipal Pooling Authority of Northern California (MPA) The City is a member of the Municipal Pooling Authority of Northern California. The Authority provides coverage against various types of loss risks under the terms of a joint-powers agreement with the City and several other cities and governmental agencies. The City participates in the coverage programs as follows:
Types of Coverage (Deductible) Coverage Limits
Liability ($25,000) $29,000,000
Vehicle - Physical Damage ($3,000 for police vehicles, 250,000 $2,000 for all others)
Worker's Compensation (no deductible) 50,000,000
Property:
All Risk ($25,000), Fine Art and Copper Claims ($5,000), Water Claims ($150,000) 1,000,000,000 Flood* 25,000,000
Pollution Liability ($250,000) 1,000,000
Boiler and Machinery ($10,000) 100,000,000
Cyber Liability ($50,000) 2,000,000
Government Crime ($2,500) 5,000,000
Employment Liability ($50,000) 2,000,000
* $100,000 minimum deductible per occurrence, except Zones A and V, which are subject to a $250,000 deductible per occurrence.
The Authority is governed by a Board consisting of representatives from member municipalities. The Board controls the operations of the Authority, including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on the Board.
The City’s deposits with the Authority are in accordance with formulas established by the Authority.
Actual surpluses or losses are shared according to a formula developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating.
Audited financial statements for the Authority are available from MPA, 1911 San Miguel Drive, Suite 200, Walnut Creek, CA 94596.
79 230
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 16 – RISK MANAGEMENT (Continued)
B. Liability for Uninsured Claims
Claims and judgments, including a provision for claims incurred but not reported, are recorded when a loss is deemed probable of assertion and the amount of the loss is reasonably determinable. As discussed, above, the City has coverage for such claims, but it has retained the risk for the deductible, or uninsured portion of these claims. Settlements have not exceeded insurance coverage for the past three fiscal years.
The City’s liability for uninsured liability claims at June 30 was estimated by management based on claims experience during the fiscal year and was computed as follows:
June 30
2023 2022
Balance at beginning of year $88,723 $14,933
Liability for current fiscal year claims 2,927 76,956
Change in liability for prior fiscal year claims
and claims incurred but not reported (IBNR) 15,295 32,999 Claims paid (31,095) (36,165)
Balance at end of year $75,850 $88,723
NOTE 17 – COMMITMENTS AND CONTINGENCIES
A. Construction and Other Commitments
The City has the following outstanding construction commitments as of June 30, 2023 which are included in the balance of encumbrances in Note 17E:
East Cypress - Knightsen Avenue Intersection Signal $8,895,574 Downtown Gateway Plaza Roadway and Parking 3,379,527
Cypress Grove Subdivision Pump Station Building 1,293,664 City Hall Rooftop Solar Power 274,758
Downtown Parking Lot Project 268,514
Recreation Center Emergency Generator 262,848
Irrigation Well Installation at City's Freedom Basin Project 209,575 Sheriff Annex Building Demolition 113,000
Other Projects 66,046
80 231
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 17 – COMMITMENTS AND CONTINGENCIES (Continued)
B. Litigation
The City is subject to litigation arising in the normal course of business. In the opinion of the City Attorney, there is no presently filed litigation which is likely to have a material adverse effect on the financial position of the City.
C. Federal and State Grant Programs
The City participates in several federal and State grant programs. These programs are subject to audit by the City’s independent accountants in accordance with the provisions of the federal Single Audit Act as amended and applicable State requirements. No cost disallowances have been proposed as a result of audits completed to date; however, these programs are still subject to further examination by the grantors and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time. The City expects such amounts, if any, to be immaterial.
D. Funding Plan for Construction of Station 55 and Advance from Fire District In September 2018, the City entered into a cooperative funding agreement with the East Contra Costa Fire Protection District for the construction of Fire Station No. 55 in the Summer Lakes subdivision. Under the terms of a separate settlement agreement with a developer, the City received $3.12 million for the design and construction of Fire Station #55 along with the dedication of a one acre parcel on which the station is to be built. Under the terms of the cooperative funding agreement, the District agreed to advance $1.9 million to the City to complete the design and construction of Station 55. Within thirty days of final completion of the project, the City agrees to transfer title to Station 55 and the associated one acre parcel to the District.
Starting sixty days following the final completion of the project, the advance from the District is repayable on a monthly basis from fire facilities impact fees collected by the City in the previous month. Title was transferred to the Fire District in May 2021 and the fire station opened in June 2022. The advance of funds does not bear interest and the balance of the advance was $136,023 at June 30, 2023.
E. Encumbrances
Encumbrances outstanding as of June 30, 2023 by fund were as follows:
Major Governmental Funds:
General Fund $39,119
ARPA Special Revenue Fund 538,689
Traffic Impact Fees Capital Projects Fund 9,131,301
Non-Major Governmental Funds 5,949,374
Total Encumbrances $15,658,483
81 232
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 17 – COMMITMENTS AND CONTINGENCIES (Continued)
F. Developer Impact Fee Credits
In April 2022, the City entered into an agreement with a developer who is developing the Grand Cypress Preserve residential project. The City agreed to grant the developer impact fee credits and other reimbursements for its costs incurred, since the developer will construct certain improvements beyond what is needed to serve the specific project. The value of these credits and reimbursements do not increase for inflation, nor do they accrue interest.
Under the terms of the agreement, the developer is expected to install improvements with a total cost of $64,384,181 (Developer’s Cost), of which the City will provide fee credits or reimbursements totaling $28,607,255 (City’s Share), and if other future development of the property occurs, the City will reimburse the developer an additional amount which is the difference between the Developer’s Share and $45,282,801 (Full Fair-Share Amount).
Reimbursement of the City’s Share is payable from three sources: traffic impact fees (TIF) of $10,041,089, proceeds from the sale of property the City owns of $11,755,637, and $6,781,166 from other sources, which may include the issuance of bonds. The developer will receive fee credits for 100% of the TIF for the first 747 lost constructed. The final payment of the City’s Share is due within four months of the date the developer obtains approval from Contra Costa Water District for the construction of levee improvements.
Once the City has satisfied the City’s Share, the City is to reimburse the developer for 50% of the future developers’ share of TIF collected until the Full Fair-Share Amount is reimbursed.
As of June 30, 2023, no credits had been used and no reimbursements had been paid to the developer.
The accounting for the amounts due are not recorded as indebtedness since the payments (use of the credits or reimbursements) are contingent upon the developer’s development of residential lots or the collection of development fees from future building growth which has not yet occurred.
NOTE 18 – REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES A. REDEVELOPMENT DISSOLUTION
In an effort to balance its budget, the State of California adopted ABx1 26 on June 28, 2011, amended by AB1484 on June 27, 2012 (collectively referred to as the Dissolution Act), which suspended all new redevelopment activities except for limited specified activities as of that date and dissolved redevelopment agencies on January 31, 2012.
The suspension provisions prohibited all redevelopment agencies from a wide range of activities, including incurring new indebtedness or obligations, entering into or modifying agreements or contracts, acquiring or disposing of real property, taking actions to adopt or amend redevelopment plans and other similar actions, except actions required by law or to carry out existing enforceable obligations, as defined in ABx1 26.
82 233
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 18 – REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
In addition, the Dissolution Act directs the State Controller to review the activities of all redevelopment agencies and successor agencies to determine whether an asset transfer between an agency and any public agency occurred on or after January 1, 2011. If an asset transfer did occur and the public agency that received the asset is not contractually committed to a third party for the expenditure or encumbrance of the asset, the legislation purports to require the State Controller to order the asset returned to the redevelopment agency. The State Controller’s Office completed its asset transfer review in July 2015, which did not require the transfer of any additional assets to the Successor Agency.
Effective January 31, 2012, the Redevelopment Agency was dissolved. In accordance with the Dissolution Act, certain assets of the Redevelopment Agency Low and Moderate Income Housing Fund were distributed to a Housing Successor; and all remaining Redevelopment Agency assets and liabilities were distributed to a Successor Agency.
Under the provisions of ABx1 26, the City was eligible to elect to become the Housing Successor and retain the housing assets and elected to do so. On February 1, 2012, the Agency’s housing assets were transferred to the City’s Low and Moderate Income Housing Asset Special Revenue Fund. The activities of the Housing Successor are reported in the Low and Moderate Income Housing Assets Special Revenue Fund as the City has control of those assets, which may be used in accordance with the low and moderate income housing provisions of California Redevelopment Law.
The City also elected to become the Successor Agency and on February 1, 2012 the Redevelopment Agency’s remaining assets were distributed to and liabilities were assumed by the Successor Agency.
ABx1 26 requires the establishment of an Oversight Board to oversee the activities of the Successor Agency and one was established on April 17, 2012. The activities of the Successor Agency are subject to review and approval of the Oversight Board, which is comprised of seven members, including one member of City Council and one former Redevelopment Agency employee appointed by the Mayor.
The activities of the Successor Agency are reported in the Successor Agency to the Redevelopment Agency Private-Purpose Trust Fund as the activities are under the control of the Oversight Board and the Department of Finance. The City provides administrative services to the Successor Agency to wind down the affairs of the former Redevelopment Agency.
The Department of Finance issued the Successor Agency a Finding of Completion on August 15, 2014.
Cash and investments of the Successor Agency as of June 30, 2023 includes the following:
Cash available for operations:
Cash available for operations $128,421
Cash held for September 1, 2023 debt service payment 1,373,056 Cash and investments with fiscal agent 1,988
Total Cash and Investments $1,503,465
Details regarding cash and investments are discussed in Note 3. Information presented in the following footnotes represents other assets and liabilities of the Successor Agency as of June 30, 2023. 83 234
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 18 – REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
B. LOANS RECEIVABLE
The Successor Agency assumed the non-housing loans receivable of the Redevelopment Agency as of February 1, 2012. The Redevelopment Agency engaged in programs designed to encourage construction of or improvement to low-to-moderate income housing. Under these programs, grants or loans were provided under favorable terms to homeowners or developers who agreed to expend these funds in accordance with the Agency’s terms. The balance of the portion of the Oakley Senior Housing loan assumed by the Successor Agency as discussed in Note 5D above was $579,750 as of June 30, 2023.
C. LONG-TERM DEBT
The Successor Agency assumed the long-term debt of the Redevelopment Agency as of February 1, 2012.
1. Current Year Transaction and Balances
All of the long-term debt of the Successor Agency is comprised of Tax Allocation Bonds issued by the Redevelopment Agency. The Bonds are special obligations of the Agency and are secured only by the Agency’s tax increment revenues. Tax Allocation Bond transactions were as follows:
Original Issue Balance Balance Current
Amount June 30, 2022 Retirements June 30, 2023 Portion
2015A Tax Allocation Bonds
3.75-5.00%, due 9/01/2028 $2,595,000 $2,595,000 $2,595,000 2015B Tax Allocation Bonds
2.00-3.75%, due 9/01/2024 3,115,000 1,415,000 ($510,000) 905,000 $525,000 2018 Tax Allocation Refunding Bonds
3.25-6.00%, due 9/01/2038 18,655,000 17,910,000 (370,000) 17,540,000 395,000 Add: Unamortized Bond Premium 1,599,427 (94,084) 1,505,343 Total $23,519,427 ($974,084) $22,545,343 $920,000
2. Successor Agency 2015 Tax Allocation Bonds
On May 6, 2015, the Agency issued $2,595,000 in 2015 Tax Allocation Bonds, Series A, and $3,115,000 in 2015 Tax Allocation Bonds, Series B. The proceeds of these bonds, secured by property tax revenues in the Redevelopment Property Tax Trust Fund, were used to refund and defease the outstanding 2003 Tax Allocation Bonds. The 2003 Bonds were called on June 19, 2015.
Under the terms of the Trust Indenture for the 2015 Bonds, an event of default occurs if, among other things, the Successor Agency (i) fails to pay interest or principal on the 2015 Bonds when due and payable, (ii) fails to observe or perform any other covenant or term contained in the Trust Indenture, or (iii) commences a voluntary case under Title 11 of the United States Code. Upon the occurrence of an event of default, the Trustee may exercise any remedies available to the Trustee and the bond owners in law or at equity.
The 2015 Bonds are secured by the Successor Agency’s property tax revenues in the Redevelopment Property Tax Trust Fund. Annual principal payments on the Series A Bonds do not start till September 1, 2024, and semi-annual interest payments are due March 1 and September 1, through 2028. Annual principal payments on the Series B Bonds are due September 1, and semiannual interest payments are due March 1 and September 1, through 2024. 84 235
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 18 – REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
3. Successor Agency 2018 Tax Allocation Refunding Bonds On July 19, 2018, the Agency issued $18,655,000 in 2018 Tax Allocation Refunding Bonds. The proceeds of these bonds, secured by property tax revenues in the Redevelopment Property Tax Trust Fund, were used to refund and defease the outstanding 2008 Subordinate Tax Allocation Bonds. The refunding reduces the total debt service payments over 21 years by $7,649,546 and results in an economic gain (difference between the present values of the debt service payments on the old and new debt) of $3,097,278. The 2008 Bonds were called on September 1, 2018.
Under the terms of the Trust Indenture for the 2018 Bonds, an event of default occurs if, among other things, the Successor Agency (i) fails to pay interest or principal on the 2018 Bonds when due and payable, (ii) fails to observe or perform any other covenant or term contained in the Trust Indenture, or (iii) commences a voluntary case under Title 11 of the United States Code. Upon the occurrence of an event of default, the Trustee may exercise any remedies available to the Trustee and the bond owners in law or at equity.
The 2018 Bonds are secured by the Successor Agency’s property tax revenues in the Redevelopment Property Tax Trust Fund. The 2018 Bonds are on parity with the 2015 Bonds discussed above Annual principal payments on the 2018 Bonds are due September 1, and semiannual interest payments are due March 1 and September 1, through 2028.
4. Pledge of Tax Revenues
As discussed above, the Agency had pledged all future tax increment revenues, less amounts required to be set aside in the Redevelopment Agency Low and Moderate Income Housing Capital Projects Fund and certain tax increment pass through payments, for the repayment of both the 2003 and 2008A Tax Allocation Bonds (non-housing revenues). The Agency had also pledged tax increment revenues required to be set aside in the Redevelopment Agency Low and Moderate Income Housing Capital Projects Fund (housing revenue) for the repayment of a portion of the 2003 Tax Allocation Bonds. With the issuance of the 2018 Bonds, the tax increment revenue is pledged on parity with the 2015 and 2018 Bonds. The pledge of all future tax increment revenues ends upon repayment of the $28,751,810 remaining debt service on the 2015 and 2018 Bonds above, which is scheduled to occur in 2039.
With the dissolution of the Redevelopment Agency discussed above, Tax Increment is no longer distributed, and instead the Successor Agency receives payments from the County’s Redevelopment Property Tax Trust Fund (RPTTF) that are to be used to fund debt service on the Bonds, with no distinction between housing and non-housing revenues. Beginning in fiscal year 2012, under the provisions of the laws dissolving the Redevelopment Agency, the Successor Agency only receives the funds necessary to fulfill its approved obligations. Total property taxes available for distribution to the Successor Agency and other taxing entities for fiscal year 2023 calculated by the County Auditor-Controller was $8,366,419 and the total received by the Successor Agency for fiscal year 2023 debt service was $2,086,738 which represented 116% of the $1,798,100 of debt service.
85 236
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 18 – REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
5. Debt Service Requirements
Annual debt service requirements for the Bonds are shown below:
For the Year
Ending June 30 Principal Interest
2024 $920,000 $887,048
2025 955,000 846,489
2026 1,000,000 799,986
2027 1,050,000 748,736
2028 1,105,000 699,939
2029 - 2033 6,300,000 2,673,262
2034 - 2038 7,945,000 1,026,554
2039 - 2039 1,765,000 29,796
21,040,000 $7,711,810
Add: Unamortized
Premium 1,505,343
Net Long Term Debt $22,545,343
D. COMMITMENTS AND CONTINGENCIES
1. State Approval of Enforceable Obligations
The Successor Agency prepares a Recognized Obligation Payment Schedule (ROPS) semi-annually that contains all proposed expenditures for the subsequent six-month period. The ROPS is subject to the review and approval of the Oversight Board as well as the State Department of Finance.
Although the State Department of Finance may not question items included on the ROPS in one period, they may question the same items in a future period and disallow associated activities. The amount, if any, of current obligations that may be denied by the State Department of Finance in the future cannot be determined at this time.
2. State Asset Transfer Review
The activities of the former Redevelopment Agency and the Successor Agency were also subject to further examination by the State of California. The State Controller’s Office conducted a review of the propriety of asset transfers between the former Redevelopment Agency or the Successor Agency and any public agency that occurred on or after January 1, 2011. The results of that review were issued in July 2015 and although the review did identify ineligible transfers of assets from the former Redevelopment Agency to the City, the report reflected the current year and prior year transfers discussed in Note 18A and made no further demands for the return of assets to the Successor Agency.
86 237
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2023
NOTE 18 – REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
E. CONTRA COSTA COUNTYWIDE CONSOLIDATED OVERSIGHT BOARD On July 1, 2018, the duties of the Oakley Oversight Board transferred to a new Contra Costa Countywide Consolidated Oversight Board, which is responsible for overseeing the winddown affairs of all Successor Agencies in Contra Costa County, including the Successor Agency to the Oakley Redevelopment Agency.
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239
REQUIRED SUPPLEMENTARY INFORMATION
240
241
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242
REQUIRED SUPPLEMENTARY INFORMATION
Miscellaneous and Safety Rate Plans, a Cost Sharing-Employer Defined Benefit Pension Plan Last 10 Years*
SCHEDULE OF THE CITY'S PROPORTIONATE SHARE
OF THE NET PENSION LIABILITY
Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 Plan's Proportion of the Net Pension Liability (Asset) 0.04460% 0.05032% 0.04978% 0.02077% Plan's Proportionate Share of the Net Pension Liability/(Asset) $1,102,233 $1,380,410 $1,729,323 $2,059,612 Plan's Covered Payroll $1,972,266 $2,494,839 $3,497,131 $6,800,698 Plan's Proportionate Share of the Net Pension Liability/(Asset) as a Percentage of its Covered Payroll 55.89% 55.33% 49.45% 30.29% Plan's Fiduciary Net Position as a Percentage of the Plan’s Total Pension Liability 79.82% 78.40% 74.06% 73.31%
Notes to Schedule:
* - Fiscal year 2015 was the 1st year of implementation. 92 243
REQUIRED SUPPLEMENTARY INFORMATION
6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022
0.02053% 0.02258% 0.01526% -0.02567% 0.01800%
$1,978,129 $2,313,974 $1,660,558 ($1,388,239) $2,077,415 $8,031,468 $8,224,932 $8,331,862 $8,425,819 $8,601,562
24.63% 28.13% 19.93% -16.48% 24.15%
75.26% 75.26% 75.10% 88.29% 76.68%
93 244
REQUIRED SUPPLEMENTARY INFORMATION
Miscellaneous and Safety Rate Plans, a Cost Sharing-Employer Defined Benefit Pension Plan Last 10 Years*
SCHEDULE OF CONTRIBUTIONS
For the year Ended June 30 2015 2016 2017 2018
Actuarially determined contribution $296,613 $382,769 $746,429 $986,847 Contributions in relation to the actuarially determined contributions 296,613 382,769 746,429 986,847 Contribution deficiency (excess) $0 $0 $0 $0
Covered payroll $2,494,839 $3,497,131 $6,800,698 $8,031,468 Contributions as a percentage of covered payroll 11.89% 10.95% 10.98% 12.29% * Fiscal year 2015 was the 1st year of implementation.
94 245
REQUIRED SUPPLEMENTARY INFORMATION
2019 2020 2021 2022 2023
$1,038,446 $2,174,321 $1,595,273 $1,113,411 $1,258,262
1,038,446 2,174,321 1,595,273 1,113,411 1,258,262
$0 $0 $0 $0 $0
$8,224,932 $8,331,862 $8,425,819 $8,601,562 $9,842,108
12.63% 26.10% 18.93% 12.94% 12.78%
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SUPPLEMENTAL INFORMATION
248
249
MAJOR GOVERNMENTAL FUND, OTHER THAN
GENERAL FUND AND SPECIAL REVENUE FUNDS
TRAFFIC IMPACT FEES CAPITAL PROJECTS FUND
This fund accounts for fees assessed on new development to provide street and road improvements. 99 250
CITY OF OAKLEY
TRAFFIC IMPACT FEES
CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2023
Variance
Positive
Budget Actual (Negative)
REVENUES
Developer fees $3,553,132 $1,795,783 ($1,757,349)
Use of money and property 30,000 381,308 351,308
Miscellaneous 22,400 22,400
Total Revenues 3,583,132 2,199,491 (1,383,641)
EXPENDITURES
Current:
Community Development
Public Works 258,695 123,855 134,840
Capital outlay 13,392,952 2,119,308 11,273,644
Total Expenditures 13,651,647 2,243,163 11,408,484
NET CHANGE IN FUND BALANCES ($10,068,515) (43,672) $10,024,843 Fund balance at beginning of year 12,299,188
Fund balance at end of year $12,255,516
100
251
NON-MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
GAS TAX
This fund accounts for revenues and expenditures received from the State of California under Street and Highways Code Sections 2105, 2106, 2107 and 2107.5. This fund also accounts for the revenues and expenditures related to Senate Bill 1 (SB 1) Road Maintenance and Rehabilitation Program received from the State of California under Street and Highways Code Sections 2032. All allocations must be spent for street maintenance and construction.
NPDES
This fund accounts for storm water utility fees assessed on properties city-wide and used to pay for the “National Pollution Discharge Elimination System” to prevent further polluting of our streams and bays as mandated by the Federal government.
COMMUNITY FACILITIES DISTRICT #1
This fund accounts for maintenance and operations related to drainage and flood control at the Cypress Grove development.
COMMUNITY FACILITIES DISTRICT 2015-1
This fund accounts for the activities associated with the maintenance of neighborhood parks, community parks, regional parks, street lighting, landscaping and storm water detention facilities at Emerson Ranch.
OAKLEY WELCOMING
This fund accounts for the activities associated with the grant-funded Oakley Welcoming program under the You Me We Oakley! brand.
AG CONSERVATION
This fund accounts for the activities associated with establishing and carrying out the City’s agricultural conservation program.
CITYWIDE COMMUNITY FACILITIES DISTRICT
This fund was established to account for the activities associated with the maintenance of neighborhood parks and stormwater detention facilities in the areas of the 2015-2 Citywide Community Facility District.
REGIONAL PARK
This fund was established to account for the activities associated with the development and maintenance of the Oakley Regional Community Park.
CREEKSIDE PARK RESTORATION GRANT
This fund accounts for a grant from the Delta Conservancy with the purpose of developing plans to restore 775 linear feet of Marsh Creek to provide habitat for native fish and wildlife. Various partners will be participating in the analysis including American Rivers, Inc., Contra Costa Flood District and the adjacent property owner/developer.
101
252
NON-MAJOR GOVERNMENTAL FUNDS (Continued)
DEVELOPER DEPOSITS
This fund accounts for deposits received from contractors and property owners to offset the cost of providing certain Community Development services including processing applications and reviewing grading plans of applicant projects.
OPIOID REMEDIATION
This fund accounts for funds received from the State from the settlement agreement with Janssen and Distributors.
The settlement funds are restricted to uses related to opioid abatement.
OFFICER WELLNESS AND MENTAL HEALTH GRANT
This fund accounts for grant funds received from the Bureau California Board of State and Community Corrections (BSCC). The Officer Wellness and Mental Health (Officer Wellness) Grant Program, established in the 2022 Budget Act, provides funds for the purpose of improving officer wellness and expanding mental health sources.
COMMUNITY FACILITIES DISTRICT 2020-1
This fund accounts for the activities associated with the operations and maintenance associated with the City’s Community parks and the public landscape, street lighting, and storm drain maintenance associated with the Contra Costa Logistics Center project. The activity was previously reported as a component of the Lighting and Landscaping
CAPITAL PROJECTS FUNDS
MEASURE J
This fund accounts for the City’s portion of the half-cent County-wide sales tax levied to fund transportation improvements to local streets.
GENERAL CAPITAL PROJECTS
This fund accounts for revenues and expenditures related to General Fund contributions, grants and other funding accounts for capital projects not accounted for in other capital projects funds. It accounts for the total expenditures for each project charged to this fund.
PARK IMPACT FEES
This fund accounts for fees assessed on new development to provide for park acquisition and development.
PUBLIC FACILITIES IMPACT FEE
This fund accounts for fees assessed on new development to provide for public facilities.
FIRE IMPACT FEES
This fund accounts for fees assessed on new developments to provide for fire protection capital facilities.
MAIN STREET
This fund accounts for Main Street related projects funded by the General Fund. 102
253
NON-MAJOR GOVERNMENTAL FUNDS (Continued)
CYPRESS GROVE CAPITAL PROJECT
This fund accounts for funds from the 2004-1 Limited Obligation Bonds used to purchase infrastructure assets built by developers in the 2004-1 Assessment District area.
STREET MAINTENANCE REHAB
This fund was established to account for the accumulation of funds for the long-term maintenance of the City’s streets. The amounts transferred into the reserve will be used to augment the City’s Gas Tax, Measure J, and other street improvement revenues in completing street maintenance and improvement projects. The reserve shall be considered fully funded when the balance and the combination of anticipated special revenues eligible for street maintenance is sufficient to pay for the next 3 years’ anticipated maintenance, which is anticipated to occur by June 30, 2018.
2006-1 ASSESSMENT DISTRICT
This fund accounts for funds from the 2006 Infrastructure Revenue Bonds that will ultimately be used to purchase infrastructure assets built by developers in the 2006-1 Assessment District area.
DEBT SERVICE FUND
This fund accounts for principal and interest on the City’s debt issues. 103
254
CITY OF OAKLEY
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
JUNE 30, 2022
SPECIAL REVENUE FUNDS
Community
Community Facilities
Facilities District
Gas Tax NPDES District #1 2015-1
ASSETS
Cash and investments available for operations $2,023,664 $2,414,609 $2,492,560 Cash with fiscal agent
Accounts receivable, net 187,701 $147,805
Interest receivable 3,765 4,908 4,878
Advances to other funds
Total Assets $2,215,130 $147,805 $2,419,517 $2,497,438
LIABILITIES
Accounts payable $45,662 $31,179 $42,670 $144,413
Due to other funds 194,310
Deposits payable
Unearned revenue 37,576
Total Liabilities 45,662 263,065 42,670 144,413
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - accounts receivable
Unavailable revenue - interest on advances to other funds Total Deferred Inflows of Resources
FUND BALANCES
Restricted 2,169,468 2,376,847 2,353,025
Assigned
Unassigned (115,260)
Total Fund Balance 2,169,468 (115,260) 2,376,847 2,353,025 Total Liabilities, Deferred Inflows of Resources
and Fund Balances $2,215,130 $147,805 $2,419,517 $2,497,438 104
255
SPECIAL REVENUE FUNDS
Citywide Creekside
Community Park
Oakley Ag Facilities Regional Restoration Developer Opioid Welcoming Conservation District Park Grant Deposits Remediation $7,335 $1,291,826 $2,118,665 $12,822 $1,438,778 $17,988 139,162 113,413
15 2,269 36
$7,350 $1,294,095 $2,118,665 $12,822 $1,577,940 $131,437 $208,735 $19,818 $28,796
$3,000 1,549,213
$18,024
208,735 3,000 19,818 1,578,009 18,024
113,413
113,413
$7,350 1,085,360 2,115,665
(6,996) (69)
7,350 1,085,360 2,115,665 (6,996) (69)
$7,350 $1,294,095 $2,118,665 $12,822 $1,577,940 $131,437 (Continued)
105
256
CITY OF OAKLEY
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
JUNE 30, 2022
SPECIAL REVENUE
FUNDS CAPITAL PROJECTS FUNDS
Officer Community
Wellness Facilities General
and Mental District Capital
Health Grant 2020-1 Measure J Projects
ASSETS
Cash and investments available for operations $27,847 $49,775 $1,328,076 $6,999,342 Cash with fiscal agent
Accounts receivable, net 833,010
Interest receivable 57 85 2,784 8,724
Advances to other funds
Total Assets $27,904 $49,860 $2,163,870 $7,008,066
LIABILITIES
Accounts payable $19,996 $253,148
Due to other funds
Deposits payable
Unearned revenue $27,904 412,942
Total Liabilities 27,904 19,996 666,090
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - accounts receivable
Unavailable revenue - interest on advances to other funds Total Deferred Inflows of Resources
FUND BALANCES
Restricted $49,860 2,143,874
Assigned 6,341,976
Unassigned
Total Fund Balance 49,860 2,143,874 6,341,976
Total Liabilities, Deferred Inflows of Resources $27,904 $49,860 $2,163,870 $7,008,066 106
257
CAPITAL PROJECTS FUNDS
Park Public Fire Cypress Grove Street 2006-1
Impact Facilities Impact Impact Main Capital Maintenance Assessment Fees Fee Fees Street Project Rehab District
$5,937,253 $2,951,211 $624,959 $5,434,393 $247,871
$118,394 419,359
203,474
11,582 6,162 (21) 502
449,587 143,903
$6,601,896 $3,101,276 $624,959 $118,373 $5,434,393 $667,732 $13,991 $27,476 $149,301 $2,623 $3,997
56,010
13,991 27,476 149,301 58,633 3,997
114,756 36,731
114,756 36,731
6,473,149 3,037,069 59,740 $667,732
475,658 5,430,396
6,473,149 3,037,069 475,658 59,740 5,430,396 667,732
$6,601,896 $3,101,276 $624,959 $118,373 $5,434,393 $667,732 (Continued)
107
258
CITY OF OAKLEY
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
JUNE 30, 2023
Total
Debt Nonmajor
Service Governmental
Fund Funds
ASSETS
Cash and investments available for operations $38,735 $35,457,709 Cash with fiscal agent 1,560 539,313
Accounts receivable, net 1,624,565
Interest receivable 248 45,994
Advances to other funds 593,490
Total Assets $40,543 $38,261,071
LIABILITIES
Accounts payable $991,805
Due to other funds 250,320
Deposits payable 1,552,213
Unearned revenue 496,446
Total Liabilities 3,290,784
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - accounts receivable 113,413
Unavailable revenue - interest on advances to other funds 151,487 Total Deferred Inflows of Resources 264,900
FUND BALANCES
Restricted $40,543 22,579,682
Assigned 12,248,030
Unassigned (122,325)
Total Fund Balance 40,543 34,705,387
$40,543 $38,261,071
108
259
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260
CITY OF OAKLEY
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2023
SPECIAL REVENUE FUNDS
Community
Community Facilities
Facilities District
Gas Tax NPDES District #1 2015-1
REVENUES
Property taxes $527,545
Other taxes $755,327
Intergovernmental $2,107,700
Developer fees
Special assessments $344,769
Use of money and property 65,544 2,133 63,885 56,836
Miscellaneous 15,359 1,440
Total Revenues 2,188,603 531,118 408,654 812,163
EXPENDITURES
Current:
Community Development
Public Works 726,030 695,032 207,178 588,618
Capital outlay 1,406,418 473 190,159 40,285
Debt service:
Principal
Interest and fiscal charges
Total Expenditures 2,132,448 695,505 397,337 628,903
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 56,155 (164,387) 11,317 183,260
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers (out) (22,288)
Total Other Financing Sources (Uses) (22,288)
NET CHANGE IN FUND BALANCES 33,867 (164,387) 11,317 183,260 Fund balance (deficit) at beginning of year 2,135,601 49,127 2,365,530 2,169,765 Fund balances (deficit) at end of year $2,169,468 ($115,260) $2,376,847 $2,353,025 110
261
SPECIAL REVENUE FUNDS
Citywide Creekside
Community Park
Oakley Ag Facilities Regional Restoration Developer Opioid Welcoming Conservation District Park Grant Deposits Remediation $1,348,175 $312,564
$175,107
$1,369,475
$2,710 $191 24,837 22,651
2,710 191 1,373,012 335,215 175,107 1,369,475
140,626 1,369,543
1,209,314
12,309
1,209,314 12,309 140,626 1,369,543
2,710 191 163,698 322,906 34,481 (68)
3,974
3,974
6,684 191 163,698 322,906 34,481 (68)
(6,684) 7,159 921,662 1,792,759 (41,477) (1)
$7,350 $1,085,360 $2,115,665 ($6,996) ($69)
(Continued)
111
262
CITY OF OAKLEY
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2023
SPECIAL SPECIAL
REVENUE REVENUE
FUND FUND CAPITAL PROJECTS FUNDS
Officer Community
Wellness Facilities General
and Mental District Capital
Health Grant 2020-1 Measure J Projects
REVENUES
Property taxes
Other taxes $38,429
Intergovernmental $833,010 $81,228
Developer fees
Special assessments
Use of money and property 465 37,418 (5,416)
Miscellaneous
Total Revenues 38,894 870,428 75,812
EXPENDITURES
Current:
Community Development
Public Works 7,500 143,947
Capital outlay 299,497 3,330,817
Debt service:
Principal
Interest and fiscal charges
Total Expenditures 7,500 443,444 3,330,817
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 31,394 426,984 (3,255,005)
OTHER FINANCING SOURCES (USES)
Transfers in 18,466 7,560,000
Transfers (out)
Total Other Financing Sources (Uses) 18,466 7,560,000
NET CHANGE IN FUND BALANCES 49,860 426,984 4,304,995
Fund balance (deficit) at beginning of year 1,716,890 2,036,981 Fund balances (deficit) at end of year $49,860 $2,143,874 $6,341,976 112
263
CAPITAL PROJECTS FUNDS
Park Public Fire Cypress Grove Street 2006-1
Impact Facilities Impact Impact Main Capital Maintenance Assessment Fees Fee Fees Street Project Rehab District
$353,474 $68,182
898,632 488,170 $201,757
147,486 90,906 $3,441 $18,304
617
1,399,592 647,258 202,374 3,441 18,304
20,862 202,374
36,286
796,521 408,431 $773,992 56,010 $162,393
832,807 429,293 202,374 773,992 56,010 162,393
566,785 217,965 (773,992) (52,569) (162,393) 18,304
10,000 2,000,000
(666,769)
(666,769) 10,000 2,000,000
566,785 (448,804) (763,992) (52,569) 1,837,607 18,304
5,906,364 3,485,873 1,239,650 112,309 3,592,789 649,428 $6,473,149 $3,037,069 $475,658 $59,740 $5,430,396 $667,732 (Continued)
113
264
CITY OF OAKLEY
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2023
Total
Debt Nonmajor
Service Governmental
Fund Funds
REVENUES
Property taxes $527,545
Other taxes 2,454,495
Intergovernmental 3,618,701
Developer fees 2,958,034
Special assessments 344,769
Use of money and property $7,340 538,731
Miscellaneous 17,416
Total Revenues 7,340 10,459,691
EXPENDITURES
Current:
Community Development 1,733,405
Public Works 3,613,905
Capital outlay 7,477,305
Debt service:
Principal 330,000 330,000
Interest and fiscal charges 344,622 344,622
Total Expenditures 674,622 13,499,237
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (667,282) (3,039,546)
OTHER FINANCING SOURCES (USES)
Transfers in 666,769 10,259,209
Transfers (out) (689,057)
Total Other Financing Sources (Uses) 666,769 9,570,152
NET CHANGE IN FUND BALANCES (513) 6,530,606
Fund balance (deficit) at beginning of year 41,056 28,174,781 Fund balances (deficit) at end of year $40,543 $34,705,387 114
265
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266
CITY OF OAKLEY
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2023
SPECIAL REVENUE FUNDS
GAS TAX N.P.D.E.S.
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes $500,000 $527,545 $27,545
Other taxes
Intergovernmental: $2,230,547 $2,107,700 ($122,847)
Developer fees
Special assessments
Use of money and property 1,500 65,544 64,044 500 2,133 1,633 Miscellaneous 15,359 15,359 1,440 1,440
Total Revenues 2,232,047 2,188,603 (43,444) 500,500 531,118 30,618
EXPENDITURES
Current:
Community Development
Public Works 1,073,725 726,030 347,695 619,321 695,032 (75,711) Capital outlay 2,826,381 1,406,418 1,419,963 240,340 473 239,867 Debt service:
Principal
Interest and fiscal charges
Total Expenditures 3,900,106 2,132,448 1,767,658 859,661 695,505 164,156
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (1,668,059) 56,155 1,724,214 (359,161) (164,387) 194,774
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers (out) (190,000) (22,288) 167,712
Total Other Financing Sources (Uses) (190,000) (22,288) 167,712 NET CHANGE IN FUND BALANCES ($1,858,059) 33,867 $1,891,926 ($359,161) (164,387) $194,774 Fund balances (deficit) at beginning of year 2,135,601 49,127 Fund balances (deficit) at end of year $2,169,468 ($115,260) 116
267
SPECIAL REVENUE FUNDS
COMMUNITY FACILITIES
COMMUNITY FACILITIES DISTRICT #1 DISTRICT 2015-1 OAKLEY WELCOMING Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $673,381 $755,327 $81,946
$351,667 $344,769 ($6,898)
2,500 63,885 61,385 2,000 56,836 54,836 $2,710 $2,710
354,167 408,654 54,487 675,381 812,163 136,782 2,710 2,710 351,579 207,178 144,401 675,381 588,618 86,763
1,505,123 190,159 1,314,964 40,285 40,285
1,856,702 397,337 1,459,365 715,666 628,903 86,763
(1,502,535) 11,317 1,513,852 (40,285) 183,260 223,545 2,710 2,710 3,974 3,974
3,974 3,974
($1,502,535) 11,317 $1,513,852 ($40,285) 183,260 $223,545 6,684 $6,684 2,365,530 2,169,765 (6,684)
$2,376,847 $2,353,025
(Continued)
117
268
CITY OF OAKLEY
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2023
SPECIAL REVENUE FUNDS
CITYWIDE COMMUNITY
AG CONSERVATION FACILITIES DISTRICT
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
Other taxes $1,301,163 $1,348,175 $47,012
Intergovernmental:
Developer fees
Special assessments
Use of money and property $191 $191 800 24,837 24,037
Miscellaneous
Total Revenues 191 191 1,301,963 1,373,012 71,049
EXPENDITURES
Current:
Community Development
Public Works 1,409,754 1,209,314 200,440
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total Expenditures 1,409,754 1,209,314 200,440
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 191 191 (107,791) 163,698 271,489
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers (out) (10,829) 10,829
Total Other Financing Sources (Uses) (10,829) 10,829
NET CHANGE IN FUND BALANCES 191 $191 ($118,620) 163,698 $282,318 Fund balances (deficit) at beginning of year 7,159 921,662 Fund balances (deficit) at end of year $7,350 $1,085,360 118
269
SPECIAL REVENUE FUNDS
CREEKSIDE PARK
REGIONAL PARK RESTORATION GRANT DEVELOPER DEPOSITS
Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $150,000 $312,564 $162,564
$224,554 $175,107 ($49,447)
$1,369,475 $1,369,475
15,000 22,651 7,651
165,000 335,215 170,215 224,554 175,107 (49,447) 1,369,475 1,369,475 224,554 140,626 83,928 $1,214,817 1,369,543 (154,726)
31,679 12,309 19,370
31,679 12,309 19,370 224,554 140,626 83,928 1,214,817 1,369,543 (154,726) 133,321 322,906 189,585 34,481 34,481 (1,214,817) (68) 1,214,749 $133,321 322,906 $189,585 34,481 $34,481 ($1,214,817) (68) $1,214,749 1,792,759 (41,477)
$2,115,665 ($6,996) ($68)
(Continued)
119
270
CITY OF OAKLEY
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2023
SPECIAL REVENUE FUND CAPITAL PROJECTS FUND
COMMUNITY FACILITIES
DISTRICT 2020-1 MEASURE J
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
Other taxes $39,176 $38,429 ($747)
Intergovernmental $748,590 $833,010 $84,420
Developer fees
Special assessments
Use of money and property 465 465 2,500 37,418 34,918
Miscellaneous
Total Revenues 39,176 38,894 (282) 751,090 870,428 119,338
EXPENDITURES
Current:
Community Development
Public Works 34,662 7,500 27,162 218,319 143,947 74,372 Capital outlay 1,455,456 299,497 1,155,959
Debt service:
Principal
Interest and fiscal charges
Total Expenditures 34,662 7,500 27,162 1,673,775 443,444 1,230,331
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 4,514 31,394 26,880 (922,685) 426,984 1,349,669
OTHER FINANCING SOURCES (USES)
Transfers in 18,466 18,466
Transfers (out)
Total Other Financing Sources (Uses) 18,466 18,466
NET CHANGE IN FUND BALANCES $4,514 49,860 $45,346 ($922,685) 426,984 $1,349,669 Fund balances (deficit) at beginning of year 1,716,890
Fund balances (deficit) at end of year $49,860 $2,143,874 120
271
CAPITAL PROJECTS FUNDS
GENERAL CAPITAL PROJECTS PARK IMPACT FEES PUBLIC FACILITIES IMPACT FEE Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $81,228 $81,228 $203,000 $353,474 $150,474 $80,000 $68,182 ($11,818) 2,552,740 898,632 (1,654,108) 989,471 488,170 (501,301) (5,416) (5,416) 147,486 147,486 5,000 90,906 85,906
75,812 75,812 2,755,740 1,399,592 (1,356,148) 1,074,471 647,258 (427,213) 31,140 20,862 10,278
81,420 36,286 45,134
$7,650,969 3,330,817 4,320,152 7,631,009 796,521 6,834,488 692,180 408,431 283,749 7,650,969 3,330,817 4,320,152 7,712,429 832,807 6,879,622 723,320 429,293 294,027 (7,650,969) (3,255,005) 4,395,964 (4,956,689) 566,785 5,523,474 351,151 217,965 (133,186) 2,560,000 7,560,000 5,000,000
(666,769) (666,769)
2,560,000 7,560,000 5,000,000 (666,769) (666,769)
($5,090,969) 4,304,995 $9,395,964 ($4,956,689) 566,785 $5,523,474 ($315,618) (448,804) ($133,186) 2,036,981 5,906,364 3,485,873
$6,341,976 $6,473,149 $3,037,069
(Continued)
121
272
CITY OF OAKLEY
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2023
CAPITAL PROJECTS FUNDS
FIRE IMPACT FEES MAIN STREET
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
Other taxes
Intergovernmental
Developer fees $201,757 $201,757
Special assessments
Use of money and property
Miscellaneous 617 617
Total Revenues 202,374 202,374
EXPENDITURES
Current:
Community Development 202,374 (202,374)
Public Works
Capital outlay $1,257,049 $773,992 $483,057
Debt service:
Principal
Interest and fiscal charges
Total Expenditures 202,374 (202,374) 1,257,049 773,992 483,057
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (1,257,049) (773,992) 483,057
OTHER FINANCING SOURCES (USES)
Transfers in 10,000 10,000
Transfers (out)
Total Other Financing Sources (Uses) 10,000 10,000
NET CHANGE IN FUND BALANCES ($1,247,049) (763,992) $483,057 Fund balances (deficit) at beginning of year 1,239,650
Fund balances (deficit) at end of year $475,658
122
273
CAPITAL PROJECTS FUNDS
CYPRESS GROVE CAPITAL PROJECT STREET MAINTENANCE REHAB 2006-1 ASSESSMENT DISTRICT Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $3,441 $3,441 $18,304 $18,304
3,441 3,441 18,304 18,304
$62,377 56,010 6,367 $2,100,000 $162,393 $1,937,607
62,377 56,010 6,367 2,100,000 162,393 1,937,607
(62,377) (52,569) 9,808 (2,100,000) (162,393) 1,937,607 18,304 18,304 2,000,000 2,000,000
2,000,000 2,000,000
($62,377) (52,569) $9,808 ($100,000) 1,837,607 $1,937,607 18,304 $18,304 112,309 3,592,789 649,428
$59,740 $5,430,396 $667,732
(Continued)
123
274
CITY OF OAKLEY
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2023
DEBT SERVICE FUND
Variance
Positive
Budget Actual (Negative)
REVENUES
Property taxes
Other taxes
Intergovernmental
Developer fees
Special assessments
Use of money and property $7,340 $7,340
Miscellaneous
Total Revenues 7,340 7,340
EXPENDITURES
Current:
Community Development
Public Works
Capital outlay $35,000 35,000
Debt service:
Principal 330,000 330,000
Interest and fiscal charges 344,479 344,622 (143)
Total Expenditures 709,479 674,622 34,857
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (709,479) (667,282) 42,197
OTHER FINANCING SOURCES (USES)
Transfers in 666,769 666,769
Transfers (out)
Total Other Financing Sources (Uses) 666,769 666,769
NET CHANGE IN FUND BALANCES ($42,710) (513) $42,197
Fund balances (deficit) at beginning of year 41,056
Fund balances (deficit) at end of year $40,543
124
275
INTERNAL SERVICE FUNDS
Internal Service Funds are used to finance and account for special activities and services performed by a designated department for other departments in the City on a cost reimbursement basis.
The concept of major funds does not extend to internal service funds because they do not do business with outside parties. For the Statement of Activities, the net revenues or expenses of each internal service fund be eliminated by netting them against the operations of the other City departments which generated them. The remaining balance sheet items are consolidated with these same funds in the Statement of Net Position.
However, internal service funds are still presented separately in the Fund financial statements, including the funds below.
EQUIPMENT REPLACEMENT
This fund is used to finance and account for the replacement of equipment used by City departments.
CAPITAL FACILITIES MAINTENANCE AND REPLACEMENT
This fund is used to account for the maintenance and replacement of the City’s capital facilities used by City departments.
INFORMATION TECHNOLOGY
This fund is used to finance and accounts for the replacement of technology equipment used by City departments. 125
276
CITY OF OAKLEY
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2023
Capital Facilities
Equipment Maintenance and Information
Replacement Replacement Technology Total
ASSETS
Current:
Cash and investments available for operations $918,593 $749,345 $253,970 $1,921,908 Receivables:
Interest 1,607 1,373 607 3,587
Total Current Assets 920,200 750,718 254,577 1,925,495
Noncurrent:
Capital assets:
Depreciable, net 710,676 5,020,419 710,454 6,441,549
Total Noncurrent Assets 710,676 5,020,419 710,454 6,441,549 Total Assets 1,630,876 5,771,137 965,031 8,367,044
LIABILITIES
Accounts payable 21,221 113,918 15,000 150,139
Accrued liabilities 440 440
Total Liabilities 21,661 113,918 15,000 150,579
NET POSITION
Investment in capital assets 710,676 5,020,419 710,454 6,441,549 Unrestricted 898,539 636,800 239,577 1,774,916
Total Net Position $1,609,215 $5,657,219 $950,031 $8,216,465 126
277
CITY OF OAKLEY
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUE, EXPENSES
AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2023
Capital Facilities
Equipment Maintenance and Information
Replacement Replacement Technology Total
OPERATING REVENUES
Charges for services $361,779 $600,000 $206,000 $1,167,779 Total Operating Revenues 361,779 600,000 206,000 1,167,779
OPERATING EXPENSES
Supplies 153,838 776 36,668 191,282
Depreciation 232,017 252,199 175,575 659,791
Total Operating Expenses 385,855 252,975 212,243 851,073 Operating Income (Loss) (24,076) 347,025 (6,243) 316,706
NONOPERATING REVENUES (EXPENSES)
Gain on sale of assets 2,020 2,020
Interest income 24,611 12,608 3,502 40,721
Total Nonoperating Revenues 26,631 12,608 3,502 42,741
Income (Loss) Before Contributions and Transfers 2,555 359,633 (2,741) 359,447 Contributions 231,922 352,447 584,369
Capital assets contributed to governmental activities (466,908) (466,908) Change in net position 234,477 (107,275) 349,706 476,908 BEGINNING NET POSITION 1,374,738 5,764,494 600,325 7,739,557 ENDING NET POSITION $1,609,215 $5,657,219 $950,031 $8,216,465 127
278
CITY OF OAKLEY
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2023
Capital Facilities
Equipment Maintenance and Information
Replacement Replacement Technology Total
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $361,779 $600,000 $206,000 $1,167,779 Payments to suppliers (158,920) 113,142 (32,668) (78,446) Cash Flows from Operating Activities 202,859 713,142 173,332 1,089,333
CASH FLOWS FROM CAPITAL
FINANCING ACTIVITIES
Proceeds from sale of capital assets 2,020 2,020
Capital assets contributed to governmental activities (466,908) (466,908) Acquisition of capital assets (191,838) (65,267) (257,105) Cash Flows from Capital Financing Activities (189,818) (466,908) (65,267) (721,993)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest 23,915 11,740 3,220 38,875
Net Cash Flows 36,956 257,974 111,285 406,215
Cash and investments at beginning of period 881,637 491,371 142,685 1,515,693 Cash and investments at end of period $918,593 $749,345 $253,970 $1,921,908
NONCASH TRANSACTIONS
Contributions of capital assets $231,922 $352,447 $584,369 Reconciliation of Operating Income (Loss) to Cash Flows from Operating Activities:
Operating income (loss) ($24,076) $347,025 ($6,243) $316,706 Adjustments to reconcile operating income (loss) to cash flows from operating activities:
Depreciation 232,017 252,199 175,575 659,791
Net change in assets and liabilities:
Accounts payable (4,067) 113,918 4,000 113,851
Accrued liabilities (1,015) (1,015)
Cash Flows from Operating Activities $202,859 $713,142 $173,332 $1,089,333 128
279
CUSTODIAL FUNDS
Custodial Funds report resources, not in a trust, that are held by the City for other parties outside of the City’s reporting entity.
ASSESSMENT DISTRICT 2004-1
This fund accounts for Assessment District 2004-1 special assessment collections and debt service payments.
GENERAL AGENCY FUND
This fund accounts for fees established by the County to fund future County capital facilities from development that are collected via building permits and submitted to the County, as well as assets held on behalf of other agencies for other purposes.
ASSESSMENT DISTRICT 2006-1
This fund accounts for Assessment District 2006-1 special assessment collections and debt service payments. 129
280
Assessment General Assessment
District Agency District
2004-1 Fund 2006-1 Total
ASSETS
Cash and investments $1,594,285 $1,025,769 $897,313 $3,517,367 Cash and investments with fiscal agent 146,864 372,217 519,081 Interest receivable 2,714 1,475 4,189
Total Assets 1,743,863 1,025,769 1,271,005 4,040,637
LIABILITIES
Accounts payable 353,270 353,270
Due to other agencies 672,499 672,499
Total Liabilities 1,025,769 1,025,769
NET POSITION:
Restricted for:
Bondholders 1,743,863 1,271,005 3,014,868
Total Net Position $1,743,863 $1,271,005 $3,014,868
JUNE 30, 2022
COMBINING STATEMENT OF NET POSITION
CUSTODIAL FUNDS
CITY OF OAKLEY
130
281
Assessment General Assessment
District Agency District
2004-1 Fund 2006-1 Total
ADDITIONS
Special assessments $1,194,391 $761,164 $1,955,555
Use of money and properties 31,422 26,603 58,025
Total Additions 1,225,813 787,767 2,013,580
DEDUCTIONS
Administrative expenses 27,003 12,319 39,322
Payments to bondholders and related fiscal charges 905,921 635,930 1,541,851 Total Deductions 932,924 648,249 1,581,173
Change in Net Position 292,889 139,518 432,407
Beginning Net Position 1,450,974 1,131,487 2,582,461
Ending Net Position $1,743,863 $1,271,005 $3,014,868
CITY OF OAKLEY
CUSTODIAL FUNDS
COMBINING STATEMENT OF CHANGES IN NET POSITION
FOR THE YEAR ENDED JUNE 30, 2022
131
282
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283
STATISTICAL SECTION
284
285
STATISTICAL SECTION
This part of the City’s Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health. In contrast to the financial section, the statistical section information is not subject to independent audit.
Financial Trends
These schedules contain trend information to help the reader understand how the City’s financial performance and wellbeing have changed over time:
1. Net Position by Component
2. Changes in Net Position
3. Fund Balances of Governmental Funds
4. Changes in Fund Balance of Governmental Funds
Revenue Capacity
These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax:
1. Assessed and Estimated Actual Value of Taxable Property
2. Property Tax Rates, All Overlapping Governments
3. Principal Property Tax Payers
4. Property Tax Levies and Collections
Debt Capacity
These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future:
1. Ratio of Outstanding Debt by Type
2. Computation of Direct and Overlapping Debt
3. Computation of Legal Bonded Debt Margin
4. Bonded Debt Pledged Revenue Coverage, Former Redevelopment Agency Tax Allocation Bonds Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place:
1. Demographic and Economic Statistics
2. Principal Employers
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs:
1. Budgeted Full-Time Equivalent City Government Employees by Function
2. Operating Indicators by Function/Program
3. Capital Asset Statistics by Function/Program
Sources
Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports for the relevant year.
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287
CITY OF OAKLEY
Net Position by Component (000's)
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year Ended June 30,
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Primary government
Governmental activities
Net investment in capital assets $147,874 $147,685 $153,509 $170,799 $174,868 $185,805 $188,555 $214,187 $221,980 $230,421 Restricted 27,042 26,651 27,205 31,286 39,006 35,780 39,992 48,461 56,581 59,526 Unrestricted 14,338 13,898 17,784 20,395 19,286 19,877 24,020 33,049 37,422 39,283 Total governmental activities net position $189,254 $188,234 $198,498 $222,480 $233,160 $241,462 $252,567 $295,697 $315,983 $329,230 $0
$50
$100
$150
$200
$250
$300
$350
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Thousands
Net of Related Debt Restricted Unrestricted
137
288
CITY OF OAKLEY
Changes in Net Position (000's)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Fiscal Year Ended June 30,
2014 2015 2016 2017 2018 2019 2020 (a) 2021 2022 2023
Expenses
Governmental Activities:
Legislative $446 $466 $481 $604 $641 $754 $661 $722 $620 $1,107 Administrative Services 1,301 1,341 1,220 1,855 1,877 1,971 3,197 3,056 1,236 3,606 Community Development 1,819 1,843 2,152 2,088 3,160 4,019 4,572 3,437 3,782 4,819 Public Works 10,177 10,640 11,478 11,818 12,200 12,969 13,198 21,437 (b) 16,987 20,107 Housing Programs 8 45 85 3 3 4 4 3 3 3
Law Enforcement 7,694 8,314 8,230 8,066 9,097 9,567 10,257 10,139 10,005 12,909 Recreation 478 524 560 562 629 771 662 653 723 1,034
Interest and fiscal charges 317 301 292 476 400 390 378 373 349 344 Total Governmental Activities Expenses 22,240 23,474 24,498 25,472 28,007 30,445 32,929 39,820 33,705 43,929 Total Primary Government Expenses $22,240 $23,474 $24,498 $25,472 $28,007 $30,445 $32,929 $39,820 $33,705 $43,929 Program Revenues
Governmental Activities:
Charges for Services:
Administrative Services $266 $252 $395 $521 $549 $399 $889 $1,736 $1,240 $807 Community Development 1,154 1,375 2,133 2,151 3,137 2,759 3,312 4,785 3,832 3,464 Public Works 3,499 3,592 3,951 4,245 4,764 5,206 5,571 7,021 7,962 8,851 Law Enforcement 3,232 3,506 3,638 4,068 4,426 4,887 5,408 5,551 6,480 7,381 Recreation 69 73 98 126 166 189 583 281 334 316
Operating Grants and Contributions 1,503 1,714 1,356 1,309 1,619 2,090 2,246 2,895 3,549 3,475 Capital Grants and Contributions 2,625 2,715 5,040 10,324 10,562 8,430 10,090 45,155 16,125 12,072 Total Government Activities
Program Revenues 12,348 13,227 16,611 22,744 25,223 23,960 28,099 67,424 39,522 36,366 Total Primary Government
Program Revenues $12,348 $13,227 $16,611 $22,744 $25,223 $23,960 $28,099 $67,424 $39,522 $36,366 Net (Expense)/Revenue
Governmental Activities ($9,892) ($10,247) ($7,887) ($2,728) ($2,784) ($6,485) ($4,830) $27,604 $5,817 ($7,563) Total Primary Government Net Expense ($9,892) ($10,247) ($7,887) ($2,728) ($2,784) ($6,485) ($4,830) $27,604 $5,817 ($7,563) General Revenues and Other
Changes in Net Position
Governmental Activities:
Taxes:
Property Taxes $4,499 $5,331 $5,814 $6,233 $6,918 $7,435 $7,965 $8,569 $8,821 $9,997 Sales Taxes 1,521 1,506 1,753 1,774 1,826 2,041 2,183 2,485 3,246 3,260 Transient Occupancy Tax 195 196 210 267 276 270 233 240 261 262 Nonregulatory Franchise and Business 1,341 1,418 1,584 1,686 1,877 1,934 2,042 2,234 2,475 2,645 Intergovernmental, unrestricted:
Motor Vehicle In-Lieu 16 16 16 18 22 20 33 31 50 46
Other 186 2
Interest Earnings and Use of Property 436 519 557 563 881 1,645 1,573 756 (1,578) 2,776 Gain on Sale of Property 455
Other 871 1,056 1,890 1,340 1,665 1,440 1,907 1,210 1,194 1,369 Extraordinary / Special Item 362 (c) 6,327 (d) 14,642 (d) Total Government Activities 8,879 10,404 18,151 26,709 13,465 14,787 15,936 15,525 14,469 20,810 Total Primary Government $8,879 $10,404 $18,151 $26,709 $13,465 $14,787 $15,936 $15,525 $14,469 $20,810 Change in Net Position
Governmental Activities ($1,013) $157 $10,264 $23,981 $10,681 $8,302 $11,106 $43,129 $20,286 $13,247 Total Primary Government ($1,013) $157 $10,264 $23,981 $10,681 $8,302 $11,106 $43,129 $20,286 $13,247 NOTES:
(a) Revenues were reclassified in fiscal year 2019-20. Prior years have not been revised. (b) The City conveyed a completed fire station project totaling $3.3 million to the East Contra Costa County Fire Protection District which was recorded as an expenditure in the Statement of Activities. (c) Pursuant to a settlement agreement with the Department of Finance, the City transferred assets to the Successor Agency and the Successor Agency transferred assets to the City. (d) Pursuant to the Long Range Property Management Plan, the Successor Agency transferred assets to the City. 138
289
CITY OF OAKLEY
Fund Balances of Governmental Funds (000's)
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Fiscal Year Ended June 30,
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
General Fund
Nonspendable $3,654 $4,375 $7,000 $4,741 $4,704 $4,793 $4,104 $3,512 $3,537 $3,520 Restricted 560 559 559 559 202 429 644 1,110 974 1,047
Assigned 331 170 943 626 4,257 3,919 5,960 6,922 11,750 4,589 Unassigned 7,837 7,938 9,068 8,769 7,172 7,796 7,342 12,791 10,381 16,585 Total General Fund $12,382 $13,042 $17,570 $14,695 $16,335 $16,937 $18,050 $24,335 $26,642 $25,741 (a) All Other Governmental Funds
Nonspendable $18
Restricted $18,233 $17,525 $17,593 $24,517 $31,783 $24,004 $27,615 $37,235 45,152 $47,795 Assigned 668 829 622 4,434 3,132 3,543 6,625 7,770 6,869 12,412 Unassigned (1,467) (1,374) (1,401) (1,046) (1,039) (993) (920) (923) (931) (943) Total all other governmental funds $17,434 $16,980 $16,814 $27,905 $33,876 $26,554 $33,320 $44,082 $51,108 $59,264 (a) NOTES:
(a) The change in total fund balance for the General Fund and other governmental funds is explained in Management's Discussion and Analysis. $0
$10
$20
$30
$40
$50
$60
$70
$80
$90
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Millions
Reserved / Restricted Nonspendable Assigned Unreserved / Unassigned 139
290
CITY OF OAKLEY
Changes in Fund Balance of Governmental Funds (000's)
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Fiscal Year Ended June 30,
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Revenues
Taxes $7,446 $8,331 $9,213 $10,179 $11,499 $12,484 $13,663 $15,955 $17,836 $19,895 Licenses, permits and fees 1,345 1,285 2,024 2,348 2,562 1,772 2,331 4,740 3,816 2,927 Fines and forfeitures 159 135 138 133 133 129 105 77 106 70 Use of money and property 231 319 563 366 640 1,359 1,383 509 (1,451) 2,647 Intergovernmental revenues 2,471 2,651 3,030 3,015 3,757 5,092 2,961 3,171 4,197 4,874 Charges for services 8,941 9,259 11,578 14,635 16,131 12,490 18,283 24,184 22,209 17,301 Other 971 1,116 1,867 1,320 4,835 2,578 2,563 2,938 1,392 1,403 Total Revenues 21,564 23,096 28,413 31,996 39,557 35,904 41,289 51,574 48,105 49,117 Expenditures
Current:
Legislative 433 449 482 614 612 730 683 728 875 960
Administrative services 1,110 1,287 1,335 1,709 1,419 1,586 3,238 2,961 2,291 2,514 Community development 1,787 1,821 2,274 2,113 3,081 3,959 4,608 4,351 4,899 4,715 Public works 4,608 4,661 5,651 5,921 6,053 6,373 6,093 8,044 9,683 10,215 Housing programs 8 5 85 3 3 3 4 3 3 3
Law enforcement 7,458 7,975 8,098 8,038 9,202 9,779 9,807 9,772 10,610 11,978 Recreation 471 522 566 575 607 750 687 660 925 912
Estimated reduction in value
of property held for resale 40
Capital outlay 5,253 5,293 7,969 6,397 10,279 18,747 7,591 7,329 8,928 10,317 Debt service:
Principal repayment 255 265 275 6,725 275 280 295 305 315 330 Interest and fiscal charges 318 306 299 621 417 417 403 375 361 372 Total Expenditures 21,701 22,624 27,034 32,716 31,948 42,624 33,409 34,528 38,890 42,316 Excess (deficiency) of revenues over
(under) expenditures (137) 472 1,379 (720) 7,609 (6,720) 7,880 17,046 9,215 6,801 Other Financing Sources (Uses)
Transfers in 1,067 2,227 2,311 6,091 3,747 2,891 3,933 3,028 6,550 10,285 Transfers (out) (1,067) (2,227) (2,311) (6,091) (3,747) (2,891) (3,933) (3,028) (6,550) (10,285) Proceeds (loss) from sale of property 10 79 50 120 453
Lease revenue bonds issued 10,025
Bond issuance premium 157
Total other financing sources (uses) 10 79 10,232 120 453 Special item (274) 2,904 (1,294)
Net Change in fund balances ($137) $208 $4,362 $8,218 $7,609 ($6,720) $7,880 $17,046 $9,335 $7,254 Debt service as a percentage of
noncapital expenditures 3.5% 3.3% 3.0% 27.9% 3.2% 2.9% 2.7% 2.5% 2.3% 2.2% 140
291
CITY OF OAKLEY
ASSESSED AND ESTIMATED ACTUAL
VALUE OF TAXABLE PROPERTY (MILLIONS)
LAST TEN FISCAL YEARS
Real Property Total Real Total
Fiscal Residential Commercial Industrial Secured Unsecured Total Estimated Direct Year Property Property Property Other Property Property Assessed (a) Full Market (a) Tax Rate (b) 2014 $2,350 $103 $11 $124 $2,588 $41 $2,629 $2,629 1%
2015 2,869 112 11 131 3,123 38 3,161 3,161 1%
2016 3,105 112 11 147 3,375 42 3,417 3,417 1%
2017 3,314 130 11 190 3,645 48 3,693 3,693 1%
2018 3,639 142 11 166 3,958 58 4,016 4,016 1%
2019 3,997 148 45 143 4,333 53 4,386 4,386 1%
2020 4,272 153 56 196 4,677 70 4,747 4,747 1%
2021 4,528 165 64 233 4,990 70 5,060 5,060 1%
2022 4,841 173 120 227 5,361 75 5,436 5,436 1%
2023 5,589 185 244 217 6,235 97 6,332 6,332 1%
Source: Contra Costa County Auditor Controller Office Certificate of Assessed Valuations Notes:
(a) The State Constitution requires property to be assessed at one hundred percent of the most recent purchase price, plus the value of any new construction, plus an increment of no more than two percent annually. These values are considered to be full market values. (b) California cities do not set their own direct tax rate. The state constitution establishes the rate at 1% and allocates a portion of that amount, by an annual calculation, to all the taxing entities within a tax rate area.
The City of Oakley includes 44 tax rate areas.
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Millions
Unsecured Property Secured Property
141
292
CITY OF OAKLEY
PROPERTY TAX RATES
ALL OVERLAPPING GOVERNMENTS
(Rate Per $100 of Assessed Value)
LAST TEN FISCAL YEARS
Basic East Bay Oakley Liberty Brentwood Contra Antioch
County Regional Union Union Elementary Contra Costa Costa Unified Fiscal Wide Park School School School Community Water School Year Levy District District District District College BART Land Levy District Total 2014 $1.0000 $0.0078 $0.0757 $0.0328 $0.0639 $0.0133 $0.0075 $0.0042 $0.0809 $1.2861 2015 1.0000 0.0085 0.0614 0.0273 0.0522 0.0252 0.0045 0.0037 0.0764 1.2592 2016 1.0000 0.0067 0.0583 0.0237 0.0447 0.0220 0.0026 0.0035 0.0912 1.2527 2017 1.0000 0.0032 0.0433 0.0217 0.0698 0.0120 0.0080 0.0032 0.0864 1.2476 2018 1.0000 0.0021 0.0693 0.0450 0.0635 0.0114 0.0084 0.0030 0.0824 1.2851 2019 1.0000 0.0021 0.0641 0.0414 0.0445 0.0110 0.0070 0.0028 0.0870 1.2599 2020 1.0000 0.0094 0.0585 0.0399 0.0617 0.0188 0.0120 0.0026 0.0843 1.2872 2021 1.0000 0.0014 0.0527 0.0370 0.0445 0.0161 0.0139 0.0025 0.0789 1.2470 2022 1.0000 0.0020 0.0565 0.0360 0.0441 0.0176 0.0060 0.0023 0.0682 1.2327 2023 1.0000 0.0058 0.0441 0.0269 0.0498 0.0162 0.0140 0.0021 0.0804 1.2393 Source: Contra Costa County Auditor-Controller
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Per Hundred $
Antioch Unified School District Brentwood Elementary School District Contra Costa Community College Liberty Union School District East Bay Regional Park District Oakley Union School District BART Contra Costa Water Land Levy Basic County Wide Levy 142
293
CITY OF OAKLEY
Principal Property Tax Payers
Current Year and Nine Years Ago
2022-23 2013-14
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
ET Oakley LLC $84,366,000 1 1.33%
(Pending Appeals On Parcels)
NP Oakley LLC 65,773,947 2 1.04%
ACD TI Oakley LLC 34,928,578 3 0.55%
NPIF IV Oakley Building II LLC 29,587,140 4 0.47%
Civic Summer Lake North LLC 24,720,800 5 0.39%
Oakley Self Storage LP 23,759,583 6 0.38%
Stonewood Oakley LLC 22,330,116 7 0.35%
Cypress Square Commercial LLC 20,909,664 8 0.33%
Oakley Senior Housing LP 19,909,500 9 0.31%
Amazon Com Services LLC 17,006,335 10 0.27%
Cypress Square-S and R Associates $18,019,319 1 0.69%
Neroly Sports Club Investors 11,269,958 2 0.43%
Shea Homes LP 10,094,014 3 0.38%
Lucky No Cal Investor LLP 8,386,863 4 0.32%
Shurgard Storage Centers Inc. 7,909,118 5 0.30%
Brookfield Emerson Land LLC 6,400,000 6 0.24%
BMS Investments 3 LLC 6,309,969 7 0.24%
Simon-Oakley Town Center LLC 6,119,300 8 0.23%
HPH Properties LLP 5,823,891 9 0.22%
WEC 98D-30 LLC 5,557,605 10 0.21%
Subtotal $343,291,663 5.42% $85,890,037 3.27%
Total Net Assessed Valuation:
Fiscal Year 2022-2023 $6,332,000,000
Fiscal Year 2013-2014 $2,629,000,000
Source: HdL Companies (Contra Costa County Assessor Combined Tax Rolls and the SBE Non Unitary Tax Roll) 143
294
CITY OF OAKLEY
PROPERTY TAX LEVIES AND COLLECTIONS (THOUSANDS)
LAST TEN FISCAL YEARS
212
212
213
Percent
of Total
Current Percent Delinquent Total Tax
Fiscal Total Tax of Levy Tax Tax Collections
Year Tax Levy (a) Collections Collected Collections Collections to Tax Levy 2014 $1,941 $1,941 100.0% (a) $1,941 100.0%
2015 2,364 2,364 100.0% (a) 2,364 100.0%
2016 2,593 2,593 100.0% (a) 2,593 100.0%
2017 2,853 2,853 100.0% (a) 2,853 100.0%
2018 3,145 3,145 100.0% (a) 3,145 100.0%
2019 3,443 3,443 100.0% (a) 3,443 100.0%
2020 3,741 3,741 100.0% (a) 3,741 100.0%
2021 3,976 3,976 100.0% (a) 3,976 100.0%
2022 4,287 4,287 100.0% (a) 4,287 100.0%
2023 5,120 5,120 100.0% (a) 5,120 100.0%
Source: City of Oakley Records
NOTES: Amounts reported above include only the 1% basic property taxes allocated to the City. They do not include special taxes, assessments, or property taxes received in lieu of vehicle license fees. (a) The County apportions taxes under the alternative method of apportionment authorized under Revenue & Taxation Code sections 4701 et seq, under which the County provides the City with 100% of its tax levy.
The County retains any penalty and delinquency charges collected. $0.0
$200.0
$400.0
$600.0
$800.0
$1,000.0
$1,200.0
$1,400.0
$1,600.0
$1,800.0
$2,000.0
$2,200.0
$2,400.0
$2,600.0
$2,800.0
$3,000.0
$3,200.0
$3,400.0
$3,600.0
$3,800.0
$4,000.0
$4,200.0
$4,400.0
$4,600.0
$4,800.0
$5,000.0
$5,200.0
$5,400.0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Tax Collections Total Tax Levy (a)
144
295
CITY OF OAKLEY
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities (in thousands)
Lease Percentage
Fiscal Certificates of Revenue of Personal Per
Year Participation Bonds Total Income (a) Capita (a)
2014 $6,955 $0 $6,955 0.72% $183
2015 6,690 0 6,690 0.66% 175
2016 6,415 0 6,415 0.61% 160
2017 0 9,715 9,715 0.90% 236
2018 0 9,440 9,440 0.86% 226
2019 0 9,160 9,160 0.76% 219
2020 0 8,865 8,865 0.70% 209
2021 0 8,560 8,560 0.63% 200
2022 0 8,245 8,245 0.58% 185
2023 0 7,915 7,915 0.51% 176
Notes : Debt amounts exclude any premiums, discounts, or other amortization amounts.
Sources: City of Oakley
(a) See the Demographic Statistics schedule for personal income and population data. 145
296
CITY OF OAKLEY
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
JUNE 30, 2023
2022-23 Assessed Valuation, Excluding the Redevelopment Agency: $6,331,685,460 Total Debt City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/23 % Applicable (1) Debt 6/30/23 Bay Area Rapid Transit District $2,484,285,000 0.665% $16,520,495 Contra Costa Community College District 649,015,000 2.518% 16,342,198 Antioch Unified School District School Facilities Improvement District 97,781,533 8.641% 8,449,302 Liberty Union High School District 135,890,000 21.130% 28,713,557 Brentwood Union School District 105,685,076 0.128% 135,277 Oakley Union School District 37,520,000 87.411% 32,796,607 East Bay Regional Park District 175,955,000 1.052% 1,851,047 California Statewide Community Development Authority Assessment Districts 38,666,000 100.000% 38,666,000 City of Oakley 1915 Act Bonds 15,582,000 100.000% 15,582,000 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $159,056,483
DIRECT AND OVERLAPPING GENERAL FUND:
Contra Costa County General Fund Obligations $193,515,000 2.510% 4,857,227 Antioch Unified School District Certificates of Participation 21,937,207 7.280% 1,597,029 Liberty Union High School District General Fund Obligations 2,853,488 21.130% 602,942 City of Oakley Certificates of Participation 7,915,000 100.000% 7,915,000 TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT 14,972,198 Less: Contra Costa County supported obligations 1,278,327 TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT $13,693,871 OVERLAPPING TAX INCREMENT DEBT (Successor Agency): $21,040,000 100.000% $21,040,000 TOTAL DIRECT DEBT $7,915,000
TOTAL GROSS OVERLAPPING DEBT $187,153,681
TOTAL NET OVERLAPPING DEBT $185,875,354
GROSS COMBINED TOTAL DEBT $195,068,681 (2)
NET COMBINED TOTAL DEBT $193,790,354
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-bonded capital lease obligations.
Ratios to 2022-23 Assessed Valuation:
Direct Debt ($7,915,000)….......................................................................... 0.13% Overlapping Tax and Assessment Debt…..................................................... 2.51% Gross Combined Total Debt.......................................................................... 3.08% Net Combined Total Debt............................................................................. 3.06% Ratio to Successor Agency Redevelopment Incremental Valuation ($849,115,449):
Overlapping Tax Increment Debt…............................................................... ….. 2.48% Source: HdL Coren & Cone
NOTE: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. The percentage of overlapping debt applicable is estimated by using taxable assessed values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the City's boundaries and dividing it by each unit's total taxable assessed value. 146
297
CITY OF OAKLEY
COMPUTATION OF LEGAL BONDED DEBT MARGIN
JUNE 30, 2023
ASSESSED VALUATION:
Secured property assessed value, net of
exempt real property $6,332,000,000
BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a) $237,450,000 AMOUNT OF DEBT SUBJECT TO LIMIT:
Total Bonded Debt $0
Less Tax Allocation Bonds and Sales Tax Revenue
Bonds, Certificate of Participation not subject to limit 0 Amount of debt subject to limit 0
LEGAL BONDED DEBT MARGIN $237,450,000
Total net debt
Total Net Debt Legal applicable to the limit
Fiscal Debt Applicable to Debt as a percentage
Year Limit Limit Margin of debt limit
2014 $98,587,500 $0 $98,587,500 0.00%
2015 118,537,500 0 118,537,500 0.00%
2016 128,137,500 0 128,137,500 0.00%
2017 138,487,500 0 138,487,500 0.00%
2018 150,600,000 0 150,600,000 0.00%
2019 164,475,000 0 164,475,000 0.00%
2020 195,262,500 0 195,262,500 0.00%
2021 208,012,500 0 208,012,500 0.00%
2022 203,850,000 0 203,850,000 0.00%
2023 237,450,000 0 237,450,000 0.00%
NOTES:
(a) California Government Code, Section 43605 sets the debt limit at 15%. The Code section was enacted prior to the change in basing assessed value to full market value when it was previously 25% of market value. Thus, the limit shown as 3.75% is one-fourth the limit to account for the adjustment of showing assessed valuation at full cash value.
147
298
CITY OF OAKLEY
BONDED DEBT PLEDGED REVENUE COVERAGE
FORMER REDEVELOPMENT AGENCY TAX ALLOCATION BONDS
LAST TEN FISCAL YEARS
Tax Debt Service Requirements
Fiscal Increment
Year Revenue (a) Principal Interest Total Coverage
2014 $2,180,805 $610,000 (b) $1,585,609 (b) $2,195,609 0.99 2015 2,525,004 660,000 (b) 1,555,802 (b) 2,215,802 1.14 2016 2,133,349 425,000 (b) 1,310,054 (b) 1,735,054 1.23 2017 1,976,225 465,000 (b) 1,337,150 (b) 1,802,150 1.10 2018 2,093,153 510,000 (b) 1,317,650 (b) 1,827,650 1.15 2019 1,963,996 245,000 (b) (c) 1,101,416 (b) (c) 1,346,416 1.46 2020 1,982,174 540,000 (b) 1,017,321 (b) (c) 1,557,321 1.27 2021 1,933,455 815,000 (b) 994,885 (b) 1,809,885 1.07
2022 2,065,052 845,000 (b) 955,694 (b) 1,800,694 1.15
2023 2,086,738 880,000 (b) 918,100 (b) 1,798,100 1.16
(a) Beginning in fiscal year 2012, tax increment reported in this table is the amount calculated by the County Auditor-Controller. Under the provisions of the laws dissolving the Redevelopment Agency, the Successor Agency only receives the funds necessary to fulfill its approved obligations. (b) Debt service is paid by the Successor Agency.
(c) The Successor Agency refunded the 2008 Subordinate Tax Allocation Bonds in fiscal year 2019 with the issuance of the 2018 Tax Allocation Refunding Bonds.
Source: City of Oakley Annual Financial Statements
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Thousands
Tax Increment Revenue Debt Service Payment
148
299
CITY OF OAKLEY
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Contra
Total Per Capita Costa City
Fiscal City Personal Personal Unemployment County Population Year Population Income Income Rate (%) (a) Population % of County 2014 38,075 $968,323,000 $25,432 4.4% $1,074,702 3.50%
2015 38,124 1,010,134,000 26,496 7.7% 1,088,764 3.54%
2016 40,141 1,046,700,000 26,075 6.2% 1,102,684 3.50%
2017 41,199 1,074,714,000 26,085 5.5% 1,123,429 3.64%
2018 41,742 1,102,345,000 26,408 4.2% 1,149,363 3.67%
2019 41,759 1,197,857,000 28,684 3.5% 1,155,879 3.61%
2020 42,461 1,271,727,000 29,950 3.6% 1,153,526 3.68%
2021 42,895 1,366,625,000 31,859 9.9% 1,165,927 3.68%
2022 44,533 1,427,927,000 32,064 7.4% 1,156,555 3.85%
2023 44,995 1,558,005,000 34,626 4.3% 1,147,653 3.92%
(a) Data reported is for the prior calendar year.
Sources: HdL Coren & Cone
U.S. Department of Commerce, California State Department of Finance, Employment Development Department U.S. Census Bureau latest available data
0.00%
2.50%
5.00%
7.50%
10.00%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Unemployment Rate (%)
2.00%
2.50%
3.00%
3.50%
4.00%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
City Population as a % of County Population
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
$1,300
$1,400
$1,500
$1,600
$1,700
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Millions
Total Personal Income
$10
$15
$20
$25
$30
$35
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Thousands
Per Capita Personal Income
149
300
CITY OF OAKLEY
Principal Employers
Current Year and Nine Years Ago
2022-23 2013-14
Percentage Percentage
Number of of Total City Number of of Total City
Employer Employees Rank Employment Employees Rank Employment Amazon.com Services LLC 705 1 20.5%
Oakley Union Elementary School District 399 2 11.6% 420 1 24.8% Lucky's 74 3 2.1% 54 3 3.2%
Pet Food Express 72 4 2.1% 2 0.0%
McDonalds 45 5 1.3% 38 6 2.2%
Raley's 41 6 1.2% 48 5 2.8%
Dutch Bros Coffee 37 7 1.1%
Skipolini's 36 8 1.0%
Starbucks Coffee Store# 22433 36 8 1.0%
Starbucks Coffee Store# 9330 32 9 0.9%
Taco Bell 32 9 0.9%
Foundation Constructors Inc 30 10 0.9% 32 7 1.9%
Diamond Hills Sports Club and Spa 55 2 3.2%
Continente Nut LLC 49 4 2.9%
Round Table Pizza 29 8 1.7%
Delta Black Bear Diner 27 9 1.6%
Burger King 26 10 1.5%
BMS Investments, LLC, DBA Comfort Suites 26 10
Temples Auto Body & Towing, Inc 26 10 1.5%
Subtotal 1,539 44.7% 830 48.9%
Total City Day Population (A) 3,442 1,696
Source: City of Oakley Finance Department - Business Licenses Notes:
(A) Total City Day Population is the number of employees reported on business license applications by businesses located in Oakley. 150
301
CITY OF OAKLEY
Budgeted Full-Time Equivalent City Government Employees by Function Last Ten Fiscal Years
Adopted for Fiscal Year Ended June 30,
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function
General government* 11.46 12.08 12.89 13.36 14.13 14.61 15.92 15.82 16.49 17.23 Community development:
Public works* 11.88 12.46 14.74 14.78 15.03 16.13 16.13 15.13 15.71 15.23 Planning 2.00 1.75 2.00 2.00 2.50 2.80 3.00 2.90 3.00 3.00 Building & Safety* 4.45 5.50 6.25 6.33 6.60 6.68 7.46 8.90 8.35 8.40 Redevelopment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Law enforcement* 31.48 31.48 31.73 34.88 39.88 39.98 40.63 40.26 43.96 48.00 Recreation 5.37 5.37 5.78 6.16 6.64 8.60 8.60 7.77 11.08 11.08 Total 66.64 68.64 73.39 77.51 84.78 88.80 91.74 90.78 98.59 102.94 Notes:
Amounts reported are Full Time Equivalent (FTEs).
n/a means not available.
* The City Contracts for the following services:
City Attorney and IT services are contracted with an outside firm and included in the General Government total.
Police Services were contracted with the County Sheriff through April 30, 2016 and include contracting for a specific number of officers.
Police Records Supervisory services are contracted with an outside firm.
Building Inspection and Engineering Services were contracted with an outside firm until October 2013.
Source: City of Oakley Operating Budgets
0 20
40 60
80 100
120
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
FTE's
General government* Law enforcement* Public works* Planning Recreation Building & Safety* Redevelopment 151
302
CITY OF OAKLEY
Operating Indicators by Function/Program
Last Ten Fiscal Years
Fiscal Year Ended June 30,
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function/Program
Law enforcement:
Police (a) (b):
Violent crimes 54 46 52 54 51 59 33 29 127 133
Property crimes 468 429 615 491 511 465 537 554 580 553 Public Works:
Street resurfacing (miles) 1.54 8.62 0.25 0.42 8.50 1.40 5.60 1.50 3.80 4.50 Leisure Services:
Recreation:
Recreation activities participants 22,663 29,630 32,386 36,430 35,417 (c) 33,996 36,832 8,341 (d) 32,309 44,773 Source: City of Oakley
Notes:
(a) 2014 - 2017 data is prior calendar year's; 2018 is for fiscal year end. (b) Data from FB1 Uniformed Crime Reports (UCR)
(c) No indoor facility rentals with construction of Recreation Center (d) Large decrease due to COVID 19 Pandemic
152
303
CITY OF OAKLEY
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
Fiscal Year Ended June 30,
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function/Program
Law enforcement:
Police stations 11111 1 1111
Police patrol vehicles 25 26 28 29 28 23 27 29 29 31
Public works:
Miles of streets 131.00 131.00 133.00 136.00 136.00 139.00 141.00 142.00 142.00 143.00 Street lights 3,050 3,050 3,104 3,200 3,200 3,285 3,314 3,347 3,347 3,362 Traffic Signals 33 33 34 35 36 37 38 39 40 40
Recreation:
Community services:
City parks 30 31 32 33 34 36 37 37 37 37
City parks acreage 101.5 102.5 108.0 113.0 116.0 119.0 121.0 121.0 121.0 121.0 Community centers 2 2 1 1 0 (a) 1 (a) 1 1 1 1
Baseball/softball diamonds 8 8 8 9 9 10 10 10 10 10
Soccer/football fields 77899 9 9999
Skate features 33333 3 1111
BMX dirt track 10000 0 0000
Source: City of Oakley
Notes:
(a) Oakley Recreation Building closed for construction of Recreation Center. 153
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305
OTHER AUDIT REPORT
306
307
INDEPENDENT AUDITOR’S REPORT ON
INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Members of the City Council
City of Oakley, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the basic financial statements of the City of Oakley, California, as of and for the year ended June 30, 2023, and have issued our report thereon dated December 5, 2023.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We identified certain deficiencies in internal control that we consider to be significant deficiencies as listed on the Schedule of Significant Deficiencies included as part of our separately issued Memorandum on Internal Control dated December 5, 2023, which is an integral part of our audit and should be read in conjunction with this report.
157
308
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards.
We have also issued a separate Memorandum on Internal Control dated December 5, 2023 which is an integral part of our audit and should be read in conjunction with this report.
City’s Response to Findings
Government Auditing Standards require the auditor to perform limited procedures on the City’s response to the findings identified in our audit and described in our separately issued Memorandum on Internal Control dated December 5, 2023, which is an integral part of our audit and should be read in conjunction with this report. The City’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Pleasant Hill, California
December 5, 2023
158
309
CITY OF OAKLEY
MEMORANDUM ON INTERNAL CONTROL
FOR THE YEAR ENDED
JUNE 30, 2023
310
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311
CITY OF OAKLEY
MEMORANDUM ON INTERNAL CONTROL
For the Year Ended June 30, 2023
Table of Contents
Page
Memorandum on Internal Control ................................................................................................................... 1 Schedule of Significant Deficiencies ....................................................................................................... 3 Schedule of Other Matters ....................................................................................................................... 7 Current Status of Prior Year Significant Deficiencies ........................................................................... 13 Current Status of Prior Year Other Matters ........................................................................................... 15 312
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313
MEMORANDUM ON INTERNAL CONTROL
To the City Council of
the City of Oakley, California
In planning and performing our audit of the basic financial statements of the City of Oakley, California, as of and for the year ended June 30, 2023, in accordance with auditing standards generally accepted in the United States of America, we considered the City’s internal control over financial reporting (internal control) as a basis for designing our audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore material weaknesses or significant deficiencies may exist that were not identified. In addition, because of inherent limitations in internal control, including the possibility of management override of controls, misstatements due to error or fraud may occur and not be detected by such controls. However, as discussed below, we identified certain deficiencies in internal control that we consider to be significant deficiencies.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected on a timely basis. We did not identify any deficiencies in internal control that we consider to be material weaknesses.
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiencies in internal control included on the Schedule of Significant Deficiencies to be significant deficiencies.
Included in the Schedule of Other Matters are recommendations not meeting the above definitions that we believe are opportunities for strengthening internal controls and operating efficiency.
Government Auditing Standards require the auditor to perform limited procedures on the City’s response to the findings identified in our audit and described in the accompanying Schedule of Significant Deficiencies and Schedule of Other Matters. The City’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.
1 314
This communication is intended solely for the information and use of management, City Council, others within the organization, and agencies and pass-through entities requiring compliance with Government Auditing Standards, and is not intended to be and should not be used by anyone other than these specified parties.
Pleasant Hill, California
December 5, 2023
2 315
CITY OF OAKLEY
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF SIGNIFICANT DEFICIENCIES
2023-01 Accurate Year-End Close and Trial Balance Review The year-end financial closing and preparation of the general ledger data should be completed timely and accurately. In addition, well-managed organizations should develop a plan to ensure that adequate resources will remain available in the event of employee departures. Part of that is ensuring there are resources available to be utilized on short notice to fill gaps in key positions, especially in the Finance Department. These resources need to be in place throughout the fiscal year to ensure accounting processes and procedures continue and allow time for analysis of account balances and activities.
When the general ledger was provided for audit, we noted that five funds, including the General Fund and, did not balance in the trial balance report in the total amount of $109,419, and we also noted that the beginning fund balance of the General Fund did not agree to the prior year ending fund balance by an additional $1.141 million. In addition, during the year-end audit, City staff provided fifteen post-closing adjustments, some of which were known at the start of the audit and some that were discovered as the audit progressed.
We understand the beginning fund balance issues were caused by new accounts that were created during the prior year end closing that did not properly transition when the final year end closing procedures were performed to create the current year beginning balances. However, that error went undetected throughout fiscal year 2023, until the general ledger was provided for audit. We understand the significant number of post-closing adjustments were a byproduct of staff turnover in the Finance Department that put the closing procedures behind and did not allow time to complete the analysis of balances prior to providing the general ledger for audit.
When the general ledger accounts and funds are out of balances, it increases the risk that errors or misstatements may go undetected by staff and corrections may not be made in a timely manner. In addition, interim reports provided to City Council or other internal and external parties may be inaccurate.
The City should develop procedures to ensure that the general ledger funds are in balance at all times and that the beginning balances in the general ledger agree to the prior year ending balances in the audited financial statements. In addition, the City must develop procedures to ensure that accounts are analyzed throughout the fiscal year and after the year end close to ensure that all funds are in balance and additional closing entries are not required prior to providing the general ledger for audit.
Management’s Response:
As mentioned, there was an issue when accounts were created in the prior year and did not get created in the current year. Although the funds were out of balance it was a reporting issues and not an issue as to whether the entries had been made. Staff agrees with this assessment and will be implementing new procedures immediately to ensure that this does not happen in the future.
In addition, staff agrees with the assessment of needing a plan in place should key members of a department depart from the City. Staff believes this was addressed in August of 2023 when we recommended and Council approved a City Wide Reorganization. The reorganization has created tiers within each department having managers and directors so that if one position becomes vacant, there is someone qualified and able to fill in through the transition period. 3 316
CITY OF OAKLEY
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF SIGNIFICANT DEFICIENCIES
2023-02 Timely Preparation of Bank Reconciliations
Bank account and investment reconciliations are one of the most important internal controls a City can have, and the reconciliation cannot be considered complete until it has been reviewed and approved. To be an effective control, reconciliations and the associated review should be completed in their entirety as soon as reasonably possible after each month-end, usually within thirty to forty-five days of the bank statement date.
The City normally prepares two bank reconciliations per month. We selected three months of bank and investment reconciliations for testing of timely preparation and review and noted that five of the six reconciliations were not prepared timely as follows:
• August 2022 general checking account reconciliation was prepared and reviewed on December 22, 2022.
• December 2022 Successor Agency bank reconciliation was prepared on March 13, 2023 and reviewed on March 15, 2023.
• December 2022 general checking account reconciliation was prepared and reviewed on April 28, 2023.
• June 2023 Successor Agency bank reconciliation was prepared and reviewed on September 13, 2023.
• June 2023 general checking bank reconciliation was prepared and reviewed on October 23, 2023.
We understand the City experienced staff turnover during the past two years, which shifted priorities for existing staff to other tasks and delayed the bank reconciliation process.
By not completing and reviewing the bank reconciliations timely, accounting errors, misstatements and/or unauthorized activities may not be identified or corrected in a timely manner and could continue to accumulate to amounts that cannot be identified and resolved.
The City must implement procedures to ensure the timely preparation and review of bank reconciliations throughout the fiscal year.
Management’s Response:
Staff is aware these have not been completed timely. Continuous staff turnover and lack of resources have made it difficult to keep up on this. In August of 2022, a re-organization of City Departments was completed and we have hired an Accountant to help keep up with the demands of the department. As of this posting date, all bank reconciliations are current and up to date and we anticipate this to continue moving forward.
4 317
CITY OF OAKLEY
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF SIGNIFICANT DEFICIENCIES
2023-03 Inaccurate Customer Fees Charged
The rates charged in the City’s permit billing system should be consistent with the City’s Master Fee Schedule approved by the City Council. And, permit fee calculations should be reviewed for accuracy.
We tested twenty-five receipts and recalculated the fees using the City’s Master Fee Schedule, but we were unable to recalculate the fees for eight permits tested. After discussing the issue with City staff, we found that the differences noted were in the Strong Motion Instrumentation Program (SMIP) Fee, and Construction and Demolition Debris Recycling (C&D) Fee. The SMIP fee for the eight permits was charged at the 2019 rate, rather than the 2023 or other applicable rate, depending on when the permit was initiated, and for one of those permits, the C&D fee charged was $37.00, but the fee should have been $41.00.
Although the increase in the fees is not significant, we understand the SMIP issue has gone undetected since 2019, and City staff estimates the amount undercharged to be approximately $16 thousand over that time. And, it appears the C&D fee was not updated in the permit system to reflect the current rate.
We understand that staff responsible for calculating the permit fees were not aware of the changes to the Master Fee Schedule.
Errors in fee calculations or charging fees that are not in accordance with the Master Fee Schedule approved by the City Council could result in undercharging or overcharging customers and an understatement or overstatement of revenue.
The City should develop procedures to ensure that building permit fees are charged based on the current Master Fee Schedule.
Management’s Response:
Staff is in the process of implementing a procedure to ensure all staff is aware of any changes made to the fee schedule and Finance will be sure that the fees get implemented as approved by Council. Finance staff will also implement an audit of the fees, working with all departments, throughout the year to ensure that fees are charged correctly in the future. 5 318
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CITY OF OAKLEY
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
2023-04 Investment Policy Compliance
Section 15, Investment Policy Review, of the City’s Statement of Investment Policy and California Government Code Section 53646 require the annual review and adoption of the Investment Policy.
The City’s Statement of Investment Policy was adopted by City Council on March 28, 2023, but that is more than one year from the prior adoption on September 21, 2021.
We understand the delay was due to turnover of City staff.
The City is not in compliance with the annual review and adoption requirements of the Statement of Investment Policy.
The City should develop procedures to ensure the Statement of Investment Policy is reviewed and adopted by City Council timely – within a year of the prior adoption.
Management’s Response:
Staff is aware this was taken to Council later than expected. The review of the FY 2023/2024 Investment Policy is on the December 2023 Agenda and staff will ensure this happens timely in the future. 2023-05 Fee Documentation
Documentation of the basis of fees charged to customers should be checked for accuracy to ensure the City is receiving the correct amount for each payment made, regardless of whether it is a billed amount or an allocation, and the supporting documentation should be retained in the City’s records.
We selected twenty-five cash receipts for testing of accuracy and support and noted that there were six receipts for scan planning fees ($0.13 per page) related to the permit processing and issuance program that could not be recalculated as the receipt does not include page count. In addition, per review of one cash receipt tested that did include a ten-key tape with the page count, it appears the City charged $0.125 instead of $0.13 per page.
Without documentation showing the page count associated with the fees charged, the City is unable to recalculate the payment due and therefore may not be receiving or charging the accurate amount.
We understand the City does not have a policy for retaining the ten-key tape or other documentation of the number of pages scanned and the fee charged.
The City should require documentation of the page count be retained to ensure that the amount charged and collected is accurate. And, the City should determine whether the fee to be charged is $0.125 or the rounded amount of $.13 per page)
Management’s Response:
Staff will implement a process that will document the number of pages scanned to ensure the correct fee is collected based on page number per the Master Fee Schedule. 7 320
CITY OF OAKLEY
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
2023-06 Inactive Deposits Payable
Deposits payable held by the City should be related to active projects, or projects that have not yet started. Old balances should be researched to determine if the deposit should be returned to the depositor or recognized as revenue if the activity is complete.
The City has sixty-two individual deposits payable outstanding as of June 30, 2023, with a total liability of $1.16 million. We understand that certain of those deposits are related to old projects for which the deposit is no longer active and should be returned to the depositor. We also understand that the City has attempted to return those inactive balances, but they were returned to the City as undeliverable.
The City should determine whether the inactive deposits should be subjected to the escheatment process by which the City advertises the unclaimed balances in accordance with California Government Code Sections 50050- 50053 provisions. If the deposits remain unclaimed and are not subject to exemptions listed in the Government Code Sections 50050-50053, the City can transfer the funds to the General Fund.
Management’s Response:
The City reviews all deposits on an annual basis and make all attempts to return these to the depositor or claim them as revenue if warranted. We will continue to research this and make all attempts to return these to the depositor in a timely manner.
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CITY OF OAKLEY
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
NEW GASB PRONOUNCEMENTS OR PRONOUNCEMENTS NOT YET EFFECTIVE The following comment represents new pronouncements taking affect in the next few years. We cite them here to keep you informed of developments:
EFFECTIVE FISCAL YEARS 2022, 2023 and 2024:
GASB 99 – Omnibus 2022
The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The practice issues addressed by this Statement are as follows:
• Classification and reporting of derivative instruments within the scope of Statement No. 53, Accounting and Financial Reporting for Derivative Instruments, that do not meet the definition of either an investment derivative instrument or a hedging derivative instrument. • Clarification of provisions in Statement No. 87, Leases, as amended, related to the determination of the lease term, classification of a lease as a short-term lease, recognition and measurement of a lease liability and a lease asset, and identification of lease incentives. • Clarification of provisions in Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, related to (a) the determination of the public-private and publicpublic partnership (PPP) term and (b) recognition and measurement of installment payments and the transfer of the underlying PPP asset.
• Clarification of provisions in Statement No. 96, Subscription-Based Information Technology Arrangements, related to the subscription-based information technology arrangement (SBITA) term, classification of a SBITA as a short term SBITA, and recognition and measurement of a subscription liability.
• Extension of the period during which the London Interbank Offered Rate (LIBOR) is considered an appropriate benchmark interest rate for the qualitative evaluation of the effectiveness of an interest rate swap that hedges the interest rate risk of taxable debt. • Accounting for the distribution of benefits as part of the Supplemental Nutrition Assistance Program (SNAP)
• Disclosures related to nonmonetary transactions.
• Pledges of future revenues when resources are not received by the pledging government. • Clarification of provisions in Statement No. 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, as amended, related to the focus of the government-wide financial statements.
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CITY OF OAKLEY
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
GASB 99 – Omnibus 2022 (Continued)
• Terminology updates related to certain provisions of Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position • Terminology used in Statement 53 to refer to resource flows statements.
The Requirements of this Statement are Effective as Follows:
The requirements in paragraphs 26–32 related to extension of the use of LIBOR, accounting for SNAP distributions, disclosures of nonmonetary transactions, pledges of future revenues by pledging governments, clarification of certain provisions in Statement 34, as amended, and terminology updates related to Statement 53 and Statement 63 are effective upon issuance.
The requirements in paragraphs 11–25 related to leases, PPPs, and SBITAs are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter.
The requirements in paragraphs 4–10 related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement 53 are effective for fiscal years beginning after June 15, 2023, and all reporting periods thereafter.
Earlier application is encouraged and is permitted by individual topic.
How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement will enhance comparability in the application of accounting and financial reporting requirements and will improve the consistency of authoritative literature. Consistent authoritative literature enables governments and other stakeholders to more easily locate and apply the correct accounting and financial reporting provisions, which improves the consistency with which such provisions are applied. The comparability of financial statements also will improve as a result of this Statement. Better consistency and comparability improve the usefulness of information for users of state and local government financial statements.
EFFECTIVE FISCAL YEAR 2023/24:
GASB 100 – Accounting for Changes and Error Corrections The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability.
This Statement defines accounting changes as changes in accounting principles, changes in accounting estimates, and changes to or within the financial reporting entity and describes the transactions or other events that constitute those changes. As part of those descriptions, for (1) certain changes in accounting principles and (2) certain changes in accounting estimates that result from a change in measurement methodology, a new principle or methodology should be justified on the basis that it is preferable to the principle or methodology used before the change. That preferability should be based on the qualitative characteristics of financial reporting— understandability, reliability, relevance, timeliness, consistency, and comparability. This Statement also addresses corrections of errors in previously issued financial statements. 10 323
CITY OF OAKLEY
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
GASB 100 – Accounting for Changes and Error Corrections (Continued) This Statement prescribes the accounting and financial reporting for (1) each type of accounting change and (2) error corrections. This Statement requires that (a) changes in accounting principles and error corrections be reported retroactively by restating prior periods, (b) changes to or within the financial reporting entity be reported by adjusting beginning balances of the current period, and (c) changes in accounting estimates be reported prospectively by recognizing the change in the current period. The requirements of this Statement for changes in accounting principles apply to the implementation of a new pronouncement in absence of specific transition provisions in the new pronouncement. This Statement also requires that the aggregate amount of adjustments to and restatements of beginning net position, fund balance, or fund net position, as applicable, be displayed by reporting unit in the financial statements.
EFFECTIVE FISCAL YEAR 2024/25:
GASB 101 – Compensated Absences
The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures.
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CITY OF OAKLEY
MEMORANDUM ON INTERNAL CONTROL
CURRENT STATUS OF PRIOR YEAR
SIGNIFICANT DEFICIENCIES
2022-01 Compliance with Transportation Development Act Audit Requirements Transportation Development Act (TDA) grant funding received from the Metropolitan Transportation Commission (MTC) requires an audit when expenditures are incurred and/or when funding is requested from MTC. In addition, grant reimbursement requests should be reviewed by someone other than the preparer prior to mailing, including those for grant reimbursement requests.
During the fiscal year 2022 audit, we noted that the City received a payment of $130,000 from MTC and we inquired about whether a TDA audit was needed. Upon further research by Finance staff, it was determined that the funding was related to a reimbursement request filed for fiscal year 2021 expenditures, and the TDA grant funding had been accrued as accounts receivable and revenue at June 30, 2021. Therefore, the City should have undergone a TDA compliance audit for the year ended June 30, 2021, but no such audit was completed.
We understand that the Finance Department was not made aware of the TDA grant until fiscal year 2022, when the grant accrual was made during the fiscal year 2022 audit, and that City staff was also not aware that the grant was subject to a compliance audit. As a result, the City is not in compliance with the TDA compliance audit requirements of MTC.
We also understand that grant billings are prepared by the applicable department staff, but the billings are not reviewed by someone other than the preparer until the Finance Department staff reviews it when the receivable is collected.
The City should develop procedures to ensure that TDA audits are completed when grant expenditures are incurred and/or reimbursement is requested from MTC. In addition, the City should review all outstanding grant agreements to determine whether the City is in compliance with any associated audit requirements. Finally, the City should develop procedures to ensure that grants receivable billings are reviewed by someone other than the preparer prior to mailing.
Current Status:
Finance has been working closely with the Public Works team to ensure all future grants include Finance as part of the discussion so that required audits do not get missed in the future. 13 326
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CITY OF OAKLEY
MEMORANDUM ON INTERNAL CONTROL
CURRENT STATUS OF PRIOR YEAR
OTHER MATTERS
2022-02 Investment Policy Compliance
The City significantly revised its Investment Policy during fiscal year 2022 and hired an investment manager to assist with expanding the City’s investment portfolio. We reviewed the City’s Fiscal Year 2021-22 Investment Policy adopted on September 14, 2021 and noted the following:
a. Monthly and Quarterly Reporting
Section 14, Reporting, of the Investment Policy requires a monthly listing of investment transactions and a quarterly investment report to the City Council. Although we did note that the City files a quarterly investment report with the City Council, it does not appear that the City includes the monthly listing of transactions in that report or in a separate report to the City Council.
The City should either comply with the requirements of Section 14 of the Investment Policy or revise the Investment Policy to reflect the current practices.
b. Safekeeping and Custody
Section 11, Safekeeping and Custody, of the Investment Policy requires that all investment transactions “be conducted on a delivery-versus-payment (DVP basis). Securities will be held by a third-party custodian designated by the Director and evidenced by safekeeping receipts.” Although the City does have access to the investment purchase receipts for transactions initiated by the investment manager, the investments are held by the investment manager’s third-party custodian in an account in the name of the City.
The City should either require the use of its own third-party custodian to comply with the requirements of Section 11 of the Investment Policy, or revise the Investment Policy to reflect the current arrangement. c. Investment Reporting
Section 14, Reporting, of the Investment Policy and California Government Code Section 53646(b)(1) require a listing of investments, including the investment instrument, issuer name, maturity date, credit rating, coupon rate, yield, purchase price, par value, book value, current market value and the source of the valuation. Although the City includes the source of the market valuation in its quarterly Investment Report and the December 2021 and June 2022 Investment Reports indicate “See Detail”, the reports did not include the details for the individual investments in the City’s portfolio, and instead included only a summary statement of investments attachment.
The City should revise the Investment Report to comply with the requirements of Section 14 of the Investment Policy. If the City does not want to include the detailed listing of investments in the body of the Investment Report, then the detailed statement should be attached to the Investment Report, rather than the summary statement.
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CITY OF OAKLEY
MEMORANDUM ON INTERNAL CONTROL
CURRENT STATUS OF PRIOR YEAR
OTHER MATTERS
2022-02 Investment Policy Compliance (Continued)
d. Review of Internal Controls
Section 18, Internal Controls, of the City’s fiscal year 2021-22 Investment Policy requires the following:
The Finance Director shall establish an annual process for independent review of these controls, including cash and investment testing, by an external auditor. This review will help to ensure compliance with the City's investment policies and procedures.
As the City’s external auditors, we cannot be part of the City’s internal control structure. Although we have been engaged to audit the City’s financial statements, we have not been requested to perform an audit specific to the system of internal controls required by the Investment Policy. We would be happy to perform any procedures the City specifies regarding the investments as a separate engagement. Otherwise, the provisions should be revised to reflect current practices or removed from the Investment Policy.
Current Status:
Staff has updated the investment policy and it is a part of the December 12, 2023 agenda for council approval.
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CITY OF OAKLEY
MEMORANDUM ON INTERNAL CONTROL
CURRENT STATUS OF PRIOR YEAR
OTHER MATTERS
2022-03 Developer Dedicated Infrastructure Improvements Generally accepted accounting principles require that contributed capital assets be valued at their estimated acquisition value on the date contributed.
The City periodically receives contributions of developer constructed infrastructure improvements and the dollar amount capitalized is based on the original engineer’s estimate of the improvements expected to be installed.
Although the timing of the engineer’s estimate may sometimes be relatively close to the date the developer dedicates the capital assets to the City, that is not always the case. As a result, the estimated acquisition value of the assets on the City’s acceptance date may differ from the original engineer’s estimate.
Update for June 30, 2023: During our testing of one developer dedicated infrastructure transaction, we again noted the value capitalized was based on the original contract estimate of the assets installed and dedicated.
The City should develop procedures to estimate the acquisition value of developer dedicated infrastructure at the time of acceptance of the capital assets and use that amount to record the capital assets in the general ledger.
Current Status:
Finance staff will work with engineering staff to determine a process in estimating developer dedicated infrastructure in the future.
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CITY OF OAKLEY
REQUIRED COMMUNICATIONS
FOR THE YEAR ENDED
JUNE 30, 2023
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CITY OF OAKLEY
REQUIRED COMMUNICATIONS
For the Year Ended June 30, 2023
Table of Contents
Page
Required Communications ............................................................................................................... 1 Significant Audit Matters ........................................................................................................ 1 Qualitative Aspects of Accounting Practices .................................................................... 1 Difficulties Encountered in Performing the Audit ............................................................ 2 Corrected and Uncorrected Misstatements ...................................................................... 3 Disagreements with Management ..................................................................................... 3 Management Representations ........................................................................................... 3 Management Consultations with Other Independent Accountants ............................... 3 Other Audit Findings or Issues ........................................................................................ 3 Other Matters .......................................................................................................................... 3 334
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REQUIRED COMMUNICATIONS
To the City Council of
the City of Oakley, California
We have audited the basic financial statements of the City of Oakley for the year ended June 30, 2023.
Professional standards require we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information orally to the Mayor, City Manager and Human Resources Director during our discussion on August 7, 2023. Professional standards also require that we communicate to you the following information related to our audit.
Significant Audit Matters
Qualitative Aspects of Accounting Practices
Accounting Policies - Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by City are described in Note 1 to the financial statements. No new accounting policies were adopted, and the application of existing policies was not changed during the year.
The following pronouncements became effective, but did not have a material effect on the financial statements:
GASB 91 – Conduit Debt Obligations
GASB 94 – Public-Private and Public-Public Partnerships and Availability Payment Arrangements
GASB 96 – Subscription-Based Information Technology Arrangements GASB 99 – Omnibus 2022, paragraphs 11-25
Unusual Transactions, Controversial or Emerging Areas - We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. 1 336
Accounting Estimates - Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were:
Estimated Fair Value of Investments: Investments held by the City were measured by fair value as disclosed in Note 3 to the Financial Statements. Fair value is essentially market pricing in effect as of June 30, 2023. These fair values are not required to be adjusted for changes in general market conditions occurring subsequent to June 30, 2023.
Estimated Depreciation: Management’s estimate of the depreciation is based on useful lives determined by management. These lives have been determined by management based on the expected useful life of assets as disclosed in Note 7 to the financial statements. We evaluated the key factors and assumptions used to develop the depreciation estimate and determined that it is reasonable in relation to the basic financial statements taken as a whole.
Estimated Compensated Absences: Accrued compensated absences is estimated using accumulated unpaid leave hours and hourly pay rates in effect at the end of the fiscal year as disclosed in Note 1H. We evaluated the key factors and assumptions used to develop the accrued compensated absences and determined that it is reasonable in relation to the basic financial statements taken as a whole.
Estimated Net Pension Liability (Asset) and Pension-Related Deferred Outflows and Inflows of Resources: Management’s estimate of the net pension liability and deferred outflows/inflows of resources are disclosed in Note 11 to the financial statements and are based on accounting valuations determined by the California Public Employees Retirement System, which are based on the experience of the City. We evaluated the key factors and assumptions used to develop the estimates and determined that they are reasonable in relation to the basic financial statements taken as a whole.
Estimated Claims Liabilities: Management’s estimate of the claims liabilities payable is disclosed in Note 16 to the financial statements and is based on actuarial studies determined by the City’s joint powers authority insurance provider, which are based on the claims experience of the City.
We evaluated the key factors and assumptions used to develop the estimate and determined that it is reasonable in relation to the basic financial statements taken as a whole.
Disclosures - The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
2 337
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole, except for the post-closing entries to correct beginning fund balance as discussed in Memorandum on Internal Control comment 2023-01 and the post-closing entry to record the unearned revenue of $5 million related to the unspent American Rescue Plan Act Coronavirus State and Local Fiscal Recovery Funds.
Professional standards require us to accumulate all known and likely uncorrected misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. We have no such misstatements to report to the City Council.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in a management representation letter dated December 5, 2023.
Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.
Other Matters
We applied certain limited procedures to the required supplementary information that accompanies and supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the required supplementary information and do not express an opinion or provide any assurance on the required supplementary information. 3 338
We were engaged to report on the supplementary information which accompany the financial statements, but are not required supplementary information. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.
We were not engaged to report on the Introductory and Statistical Sections which accompany the financial statements, but are not required supplementary information. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.
******
This information is intended solely for the information and use of the City Council and management and is not intended to be and should not be used by anyone other than these specified parties.
Pleasant Hill, California
December 5, 2023
4 339
INDEPENDENT ACCOUNTANT’S REPORT ON
APPLYING AGREED UPON PROCEDURES FOR
COMPLIANCE WITH THE PROPOSITION 111
2022-2023 APPROPRIATIONS LIMIT INCREMENT
To the City Council of the
City of Oakley, California
We have performed the procedures enumerated below on the Appropriations Limit Worksheet (Worksheet) of the City of Oakley, California, for the year ended June 30, 2023. The City’s management is responsible for the Worksheet.
The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of these procedures, which were suggested by the League of California Cities and presented in their Article XIIIB Appropriations Limitation Uniform Guidelines, performed solely to assist you in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.
The procedures and associated findings are as follows:
A. We obtained the Worksheet and determined that the 2022-2023 Appropriations Limit of $14,843,735 and annual adjustment factors were adopted by Resolution of the City Council.
Although the Worksheet included the City population factor used in the calculation, neither the Resolution, nor the Worksheet indicated that the factor selected was the City population factor.
The Worksheet indicated the “Higher of the County Population Growth Factor,” but the Growth Factor used in the Worksheet was the higher City Population Growth Factor.
B. We recomputed the 2022-2023 Appropriations Limit by multiplying the 2021 2022 Prior Year Appropriations Limit by the Total Growth Factor. We recomputed the Total Growth Factor by multiplying the population option by the inflation option. However, in calculating the 2022-2023 Appropriations Limit, the City transposed the City Growth Factor of 1.0208 and instead used a City Growth Factor of 1.028. As a result, we calculated a revised 2022-2023 Appropriations Limit of $14,739,771.
C. For the Worksheet, we agreed the Per Capita Income Factor to a California State Department of Finance Worksheet. As noted above, the City Population Factor was transposed in the Worksheet and the County Population Factor was not included in the Worksheet.
We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the Worksheet.
Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. 340
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.
This report is intended solely for the information and use of management and the City Council and is not intended to be and should not be used by anyone other than those specified parties; however, this restriction is not intended to limit the distribution of this report, which is a matter of public record.
Pleasant Hill, California
December 5, 2023
341
STAFF REPORT
City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.ci.oakley.ca.us DATE: December 12, 2023
TO: Joshua McMurray, City Manager
FROM: Libby Vreonis, City Clerk
SUBJECT: Adopt a Resolution Approving the 2024 City Council Committee Appointment List
Background and Analysis
Each year after the Oakley City Council reorganizes, the City Council reviews the City Council Committee Appointment List for the upcoming year to decide which local and regional committees each Councilmember shall serve. The Mayor and Vice Mayor have traditionally been appointed to represent the City of Oakley on the Contra Costa County Mayors’ Conference and East County Mayors and City Managers Meeting. Attached is the proposed list for 2024.
Consistency with the Oakley Strategic Plan 27+
This matter is consistent with the Oakley Strategic Plan 27+ Community and Collaborative Partnerships Goal to build strong community and collaborative partnerships to be mutually beneficial and co-create shared goals.
Fiscal Impact
None.
Staff Recommendation
Staff recommends that the City Council review and discuss the 2024 City Council Committee Appointment List and adopt the final List as presented or as revised.
Attachments
1. Proposed 2024 City Council Committee Appointment List
2. Resolution Approving the 2024 City Council Committee Appointment List Approved and
Forwarded to the
City Council
342
Williams, Anissa
CalCities East Bay Division, Voting
CCC Mayors Conference
East County Mayors and City Managers
Ad Hoc Parks Subcommittee
Oakley Inter-Agency Subcommittee (Public School Liaison) Tri-Delta Transit
Fuller, George
Diablo Water District Liaison
East County Mayors and City Managers, Alternate
CCC Mayors Conference, Alternate
ABAG, Voting
East Bay Leadership Council (Liaison)
MCE Board, Alternate
Shaw, Shannon
Contra Contra Costa Fire Protection District Board (Liaison) ABAG, Alternate
Tri-Delta Transit
Henderson, Hugh
CalCities East Bay Division, Alternate
Board of Green Empowerment Zone
Ironhouse Sanitary District Liaison
Habitat Conservation Plan Exec. Committee/HCP Conservancy Meadows, Aaron
Ad Hoc Parks Subcommittee
MCE Board
Oakley Inter-Agency Subcommittee (Public School Liaison) TRANSPLAN/ECCRFFA/St. Route 4 Bypass (CC Rep)
343
Resolution No. XX-22 Page 1 of 1
RESOLUTION NO. X-23
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OAKLEY APPROVING THE 2024 CITY COUNCIL COMMITTEE APPOINTMENT LIST
BE IT RESOLVED by the City Council of the City of Oakley that the 2024 City Council Committee Appointment List attached as Exhibit A is hereby approved.
PASSED, APPROVED AND ADOPTED this 12th day of December 2023 by the following vote.
AYES:
NOES:
ABSTENTION:
ABSENT:
APPROVED:
___________________
, Mayor
ATTEST:
____________________ ________
Libby Vreonis, City Clerk Date
344
STAFF REPORT
City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.ci.oakley.ca.us DATE: December 12, 2023
TO: Joshua McMurray, City Manager
FROM: Danielle Navarro, Assistant City Manager
SUBJECT: Adopt a Resolution Extending the Term of the City of Oakley Affordable Housing Ad-Hoc Advisory Committee
Background and Analysis
At the August 8, 2023 City Council meeting, the Mayor requested that staff bring forward an item that would establish an Affordable Housing Ad-Hoc Advisory Committee (“Committee”). At its September 12th meeting, the Oakley City Council adopted a resolution establishing the Committee with the purpose of reviewing and discussing resident issues at The Oaks apartment complex and advising the City Council on those issues; the Committee was set to end on December 31, 2023.
The City Council appointed two residents of The Oaks and one member of The Oaks management team with decision-making authority to the Committee at its October 10th meeting. The Committee held a public meeting in October and again in November. In addition to the resident Committee members, four to six residents from The Oaks attended the October and November meetings and presented concerns about cleanliness, security, and maintenance, which the management appointee has been addressing. The Committee believes it would be beneficial to extend the end date to February 13, 2023 to allow the management team time to address and report back on the remaining items such as implementing new garbage service, the fire panel replacement, cameras, and the status of maintenance staffing levels.
Consistency with the Oakley Strategic Plan 27+
The purpose of the Affordable Housing Ad-Hoc Committee is consistent with the Oakley Strategic Plan 27+ Community Health and Safety and Community and Collaborative Partnerships goals.
Fiscal Impact
There is no fiscal impact other than minimal staff time.
Staff Recommendation
Staff recommends that the City Council adopt the proposed resolution extending the term of the City of Oakley Affordable Housing Ad-Hoc Advisory Committee.
Approved and
Forwarded to the
City Council
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STAFF REPORT
CITY HALL | 3231 Main Street, Oakley, CA 94561 2
O (925) 625-7000 | F (925) 625-9859 | www.CI.Oakley.CA.US Attachments
1. Proposed Resolution
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Resolution No. XX-23 Page 1 of 1
RESOLUTION NO. XX-23
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OAKLEY EXTENDING
THE TERM OF THE CITY OF OAKLEY AFFORDABLE HOUSING AD-HOC
ADVISORY COMMITTEE
WHEREAS, at its September 12, 2023 meeting, the Oakley City Council established an Affordable Housing Ad-Hoc Advisory Committee (“Committee”) consisting of Mayor Meadows, Councilmember Shaw, two Oaks apartment residents, and one member of The Oaks management team with decision-making authority; and WHEREAS, the Committee’s purpose is to review and discuss resident issues at The Oaks apartment complex and advise the City Council on those issues.; and WHEREAS, the Committee was established with an ending date of December 31, 2023; and
WHEREAS, the Committee feels believes it would be beneficial to extend the end date to February 13, 2023 to allow the management team time to address and report back on the remaining items.
NOW, THEREFORE, BE IT RESOLVED AND ORDERED, that the City Council of the City of Oakley does hereby extend the term of the City of Oakley Affordable Housing AdHoc Advisory Committee to February 13, 2023.
PASSED AND ADOPTED by the City Council of the City of Oakley this 12th day of December, 2023 by the following vote:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
APPROVED:
________________
ATTEST: Aaron Meadows, Mayor
______ _____
Libby Vreonis, City Clerk Date
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