Agenda packet — Pinole City Council, February 1, 2022 (part 2 of 3)

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Fireworks America Public Display Contract
6) BUYER, at its expense, agrees to provide adequate security to prevent any access to the DISPLAY SITE by members of the general public or any persons not expressly approved by FA. Any claim arising from damage to persons or property caused by any unauthorized access to the DISPLAY SITE is the sole responsibility of the BUYER. Should a multiple day setup be required, BUYER shall provide appropriate security during all the times FA is away from the DISPLAY SITE. 7) BUYER, at its expense, agrees to pay for any required "standby" Firemen, and/or any applicable permit costs and fees as required by state and local statutes, ordinances or regulations.

BUYER agrees to indemnify FA for any and all changes or adjustments made to the DISPLAY at the request of any governing legal authority.
8) BUYER, at its expense, shall provide FA sufficient parking, all necessary site and event passes and allow FA sufficient time and available access, as determined by FA, to safely and professionally setup and discharge the display and subsequently remove the display equipment from the DISPLAY SITE. 9) Should BUYER fail to comply or prove itself unable to comply with the requirements stated in paragraphs 5, 6, 7 and 8 herein, FA shall have no obligation to continue with the performance of the display and the BUYER agrees to pay the full contract price plus any additional associated expenses incurred by FA.
10) BUYER agrees to assume the risk of weather, or any other cause that is beyond FA’s control, that may prevent the display from being discharged on the scheduled date and time. In the event that FA, at its sole discretion, determines that the weather unsuitable for the discharge of the display, BUYER shall pay per the cancellation terms contained in paragraph 11 herein. 11) BUYER shall have the option to cancel this display at any time. If BUYER decides to cancel, BUYER agrees to pay to FA 35% of the display contract price and all other associated costs incurred by FA, including, but not limited to, permits, insurance, pyrotechnic operator's fee, transportation, choreography, custom design or any other provable expense associated with the execution of the Display. 12) BUYER agrees to hold FA harmless from all claims and penalties made against FA in the event that the display fails to start on time or is disrupted after commencement as a direct result of equipment or product malfunction or failure.
13) FA agrees to provide insurance coverage of Twenty Million Dollars, Bodily Injury and Property Damage and statutory limits for Worker's Compensation. This insurance covers the operations of FA only and does not extend to any other aspect of the event at which such a display may be held. FA’s operations are deemed complete when FA has vacated the premises.
14) Should BUYER fail to perform its obligations as set forth herein, BUYER agrees to indemnify, defend and hold FA harmless from all claims and suits made against FA in conjunction with the discontinuance or cancellation of the display.

Initial: _________

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Fireworks America Public Display Contract
15) FA agrees to defend, indemnify and hold harmless BUYER from and against all claims and liability arising out of the services to be performed by FA hereunder, except to the extent arising from BUYER'S negligence or willful misconduct.
16) The laws of the State of California shall govern this contract. It is agreed that any court of competent jurisdiction located in the County of San Diego, CA shall be proper venue for an action.

Should such action be brought to enforce or interpret the terms or provisions of this Contract, the prevailing party shall be entitled to reasonable attorney fees and costs in addition to any other relief to which they may be entitled.
17) Nothing in this contract shall be construed as forming a partnership, joint venture, agency or any form of legal relationship, other than contractual, between BUYER and FA. Neither party shall be held responsible for any agreements or obligations not expressly provided for herein and shall be severally responsible for their own separate debts and obligations. 18) BUYER shall not under any circumstances, be entitled to recover any consequential damages from FA. Nothing in this paragraph shall be construed as a modification or limitation on the insurance coverages afforded in Paragraph 13 herein. 19) Other Considerations: NONE
20) This agreement shall be binding on the parties and on their heirs, executors, administrators, successors and assigns.

In Witness the parties hereto, by or through their duly authorized agents, have set their hands and seals this 24th day of January, 2022.

Fireworks & Stage FX America, LLC. City of Pinole

Signature: ___________________________
Printed: ____________________________________
Jim Acker
Title:_______________________________________
Northern California Operations Manager
Date: ______________________________________

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CITY COUNCIL
REPORT 11A
DATE: FEBRUARY 1, 2022
TO: MAYOR AND COUNCIL MEMBERS
FROM: ANDREW MURRAY, CITY MANAGER

SANJAY MISHRA, PUBLIC WORKS DIRECTOR
SUBJECT: RECOMMENDED NEXT STEPS FOR THE FARIA HOUSE

RECOMMENDATION
Staff recommends that the City Council review staff’s recommended next steps regarding the Faria House and provide direction.

BACKGROUND
The City owns the two-story house located at 2100 San Pablo Avenue that is commonly referred to as the “Faria House.” The building was constructed in about 1890 and was originally located at what is now 1301 Pinole Valley Road.

In June 2020, the City Council created the Faria House Ad Hoc Committee to provide recommendations on the use of the house. The Committee provided its findings and recommendations to the City Council on November 17, 2020. At that meeting, the City Council discussed approving a memorandum of understanding (MOU) between the City and the Pinole History Museum (PHM) regarding the renovation of the Faria House and its lease to PHM but did not take any action. The City Council subsequently considered including funding for renovation of the Faria House in the fiscal year (FY) 2021/22 budget, but ultimately did not include such funding. The City Council did direct staff, at its meeting on June 29, 2021, to return to Council with a recommendation on next steps for the Faria House’s renovation. The history of the City’s ownership of and plans for the Faria House are well described in the staff report for the November 17, 2020 Council meeting, which is attached.

REVIEW AND ANALYSIS
The City has owned the Faria House for several years and conducts basic maintenance to the building and site to prevent deterioration. The building is currently uninhabitable.

The City has conducted some analysis of the nature and cost of the renovation that would be needed for the building to function as a local history museum, which is well described in the staff report for the November 17, 2020 Council meeting. 159 of 369
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It would benefit the community for the site to be put to productive use. The City has not reached a decision about whether to renovate the building, and for what purpose, and therefore the building remains uninhabitable and vacant. A significant amount of public input has been received regarding potential future renovation and uses of the building.

However, it is unclear to what degree the public input that has been received is representative of the views of the entire community.

City staff believes that additional information on the costs and benefits of different potential uses (“programming”) of the building, including as a local history museum, professional offices, and residences, would be informative as the Council considers different options. Costs would include one-time and ongoing costs to the City of different uses, and benefits would include those related to economic and community development.

In addition, City staff believes that community input from a representative sample of community members would be informative as the Council considers different options.

As such, City staff recommends that the City Council direct staff to solicit proposals from professional services firms to assess the costs and benefits of potential uses of the building, including at least the three potential uses noted above. City staff also recommends that the City Council direct staff to solicit proposals from professional services firms to conduct a community engagement process to gather input from a representative sample of the community on the preferred future use of the site. Staff estimates that it will cost $20,000 to hire a firm to conduct the cost and benefit assessment and $50,000 to hire a firm to conduct a community engagement process.

If the City Council directs staff to solicit proposals for an assessment of costs and benefits and a community engagement process, staff will return to Council with a recommendation for a firm to conduct both scopes of work and a request for a budget appropriation to fund the firms’ work.

FISCAL IMPACT
There is no financial impact created by receiving Council direction on this matter.

ATTACHMENT(S):

A – Staff Report for November 17, 2020 City Council Meeting Item 9A on Findings and Recommendations of the Faria House Ad Hoc Committee and Consideration of a Memorandum of Understanding (MOU) Regarding the Renovation of the Faria House and Lease to the Pinole History Museum
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CITY COUNCIL
REPORT 9A
DATE: NOVEMBER 17, 2020
TO: MAYOR AND COUNCIL MEMBERS
FROM: ANDREW MURRAY, CITY MANAGER

HECTOR DE LA ROSA, ASSISTANT CITY MANAGER
SUBJECT: FINDINGS AND RECOMMENDATIONS OF THE FARIA HOUSE AD

HOC COMMITTEE AND CONSIDERATION OF A MEMORANDUM OF

UNDERSTANDING (MOU) REGARDING THE RENOVATION OF THE

FARIA HOUSE AND LEASE TO THE PINOLE HISTORY MUSEUM

RECOMMENDATION
City staff recommends that the City Council receive the findings and recommendations of the Faria House Ad Hoc Committee (“Committee”) and consider a resolution (Attachment A) approving a memorandum of understanding (“MOU”) between the City and the Pinole History Museum (“PHM”) regarding the renovation of the Faria House and lease to PHM.

BACKGROUND
The building commonly referred to as the “Faria House” is a two-story residence constructed in about 1890 and originally located at what is now 1301 Pinole Valley Road. Over the past few decades, the former Pinole Redevelopment Agency (“Redevelopment Agency”) and the City have considered various options for the use of the property at 1301 Pinole Valley Road and the house itself.

In June 2020, the City Council created the Faria House Ad Hoc Committee (“Committee”) to provide recommendations to the City Council on the use of the house.

The Committee was specifically charged with providing recommendations on matters related to the Faria House’s renovation for use as a local history museum, including the site and building renovation designs and specifications, lease provisions and/or cost sharing agreements between the City and PHM, and options to fund the City’s share of the cost to renovate and maintain the Faria House building and site.

Below find a summary of the history of the house and property, and of the redevelopment of the property. Also find a summary of plans for the reuse of the house and renovation designs and cost estimates. Finally, find information regarding a potential MOU between the City and PHM addressing the renovation of the Faria House and lease to PHM that the Committee recommends that the City Council consider for approval.

ATTACHMENT A
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History of the Faria Farmstead
The property at 1301 Pinole Valley Road was historically known as the Faria Farmstead and consisted of seven buildings including a house, barn, and additional outbuildings.

The house sat atop a knoll with a view of Pinole Valley. It was built by carpenter William Allen in 1891 for his daughter Louise, as a wedding gift when she married James H.

Tennent, son of Samuel Tennent, one of Pinole’s early settlers. The Tennents soon sold the house along with 4.5 acres to a Mr. Morgan, who soon thereafter sold it to Joseph Dutra Faria, an immigrant from the Azores Islands. The Farias were one of the early families to settle in the area. The family eventually expanded the farmstead from the original 4.5 acres to over 280 acres. Joseph ran the farm alongside his son William, who remained at the ranch his entire life. The acreage once filled much of Pinole Valley and part of Hercules. The farm grew tomatoes, hay, and grain and raised cattle. William was a well-known local figure and landowner. He continued to run the farm and ranch through the 1950s, and passed away in the mid-1980s.

Redevelopment of the Faria Property and House
The site on which the Faria House was located was incorporated into the Pinole Vista Redevelopment Area in 1981. In 1996, the Redevelopment Agency purchased the then

6.5-acre parcel, including the house and other buildings, for $2.1 million (Attachment B).

A Feasibility Study Committee had identified in 1992 that a 47,000 square foot community center serving a variety of community meeting and recreational needs would be desirable within the Redevelopment Project Area. In 1994, a Municipal Services Task Force recommended that the center be built with redevelopment funds within the Redevelopment Project Area. City records indicate that the Faria House property was acquired by the Redevelopment Agency in part so that the Redevelopment Agency could preserve the option of building a community center on the site. Prior to and subsequent to the Redevelopment Agency’s acquisition of the property, various options were considered for the redevelopment of the site, including renovating the Faria House on the site for a future use to be determined, but no improvements were made.

In 2003, the Redevelopment Agency approved the acquisition of 2100 San Pablo Avenue, utilizing affordable housing funds, and hired an architect to create a vision for a “Heritage Park,” possibly including the Faria House, on the site. The vision included two phases, the relocation of the Faria House and related site improvements and the construction of three single-family cottages on the site.

The Redevelopment Agency sold a portion (4.9 acres) of 1301 Pinole Valley Road to Kaiser in 2005 for $5.2 million for the development of the Kaiser Pinole Medical Offices, which were completed in 2009. In 2015 and 2020, the City sold the two remaining portions, for $348,500 and $470,000, respectively.

The Faria House was relocated to 2100 San Pablo Avenue in 2005. The cost of the move and ancillary improvements was paid with Redevelopment Agency affordable housing funds. Therefore, the property underlying the Faria House and the building itself became the property of the Redevelopment Agency Affordable Housing Fund. 162 of 369
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In 2005 and 2006, the Redevelopment Agency considered various reuse options for the Faria House, including mixed commercial, residential, and public or nonprofit uses. In September 2006, following a presentation from the Pinole Historical Society (“PHS”), the Redevelopment Agency directed staff to create potential deal points for the use of the Faria House as a local history museum. Staff presented the potential deal points on October 17, 2006 (Attachment C). The Redevelopment Agency board moved to accept the deal points presented by PHS and directed staff to create the final documents.

In October 2007, the Council adopted a resolution approving expenditure of $400,000 to renovate the Faria House and a lease and grant agreement with PHS (Attachments D and E). Pursuant to the proposed lease, the City would contribute $400,000 to the renovation and PHS was required to raise the additional money needed to complete the renovation. In August 2008, the City received a letter from PHS stating that the PHS Board would not approve the lease and considered it “null and void.” It also stated that “given the ‘clean slate’, we have now entered new negotiations with City/RDA staff regarding use of the Faria House as a museum.”
In 2008, the Redevelopment Agency hired a professional museum consultant to conduct a study to determine the feasibility of PHS operating a museum in the Faria House. The results of the study were presented to the Redevelopment Agency in November 2009 (Attachment F). Discussion of reuse of the Faria House was then put on hold due to the Great Recession.

Post-Redevelopment Plans for the Faria House
When the Redevelopment Agency was dissolved in 2012 and the City of Pinole elected to become the Housing Successor Agency, responsible for the affordable housing assets of the Redevelopment Agency, the Faria House and the underlying parcel became the property of the City’s Housing Successor Agency. The Housing Successor Agency is responsible for using its assets to create or sustain affordable housing.

So that the City could use the Faria House for a purpose other than affordable housing, the City purchased the Faria House, excluding the underlying parcel, from the Housing Successor Agency in July 2016 for $30,000, which was the fair market value based on an appraisal and the cost of renovation. The City Council directed staff to identify possible uses of the property. In September 2016, staff presented the Council with a report on possible uses (Attachment G). Following a discussion, the City Council approved a motion to use the Faria House as a museum. The City Council also directed staff to obtain an estimate of the cost to renovate the Faria House to be suitable to serve as a public museum.

In September 2016, the City issued a letter of intent to dedicate the Faria House as a location and future venue for the Pinole History Museum (Attachment H). In August 2018, the City issued a letter of intent to establish an agreement with PHM for use of the Faria House as a technology-rich museum, noting that production of the project is conditional on obtaining sufficient financial resources (Attachment I). 163 of 369
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Renovation Design and Cost Estimate
In June 2018, the City executed a contract with Interactive Resources (IR, Attachment J), an architecture firm with extensive experience renovating historic structures, to design the improvements that would be required for the building to serve as a public museum. IR consulted with City staff as well as representatives of PHM to create a building program, which consisted of interior spaces for exhibits, an archive, a gift shop, and meeting spaces. IR completed 95% construction documents in December 2019.

These included an elevator to provide access to the second floor and were compliant with the California Historical Building Code, which is an adjunct to the California Building Code. IR’s subconsultant, Silva Cost Consulting (“Silva”), created an estimate for the renovation construction cost in January 2020, which was $1,419,837, including some improvements specific to a museum use and assuming a construction start date of summer 2020.

In June 2020, the City Council created the Faria House Ad Hoc Committee (Attachment K, “Committee”), which was specifically charged with providing recommendations on matters related to the Faria House’s renovation for use as a local history museum, including the site and building renovation designs and specifications, lease provisions and/or cost sharing agreements between the City and the Pinole History Museum (PHM), and options to fund the City’s share of the cost to renovate and maintain the Faria House building and site.

The Committee met on several occasions to review IR’s 95% construction documents and Silva’s estimate, as well as to receive input from PHM on the renovation design and cost estimate. The Committee and City staff engaged with IR and Silva to create an updated renovation design. The updated renovation scope does not include any updates to the building exterior or to the site (except potentially site modifications that might be required to meet recent ADA requirements). The design includes an elevator, the reuse of as much historic building material as feasible, and a multi-split HVAC system. Based on the updated renovation scope, Silva provided a revised renovation construction cost estimate on September 17, 2020 (Attachment L). The September 17, 2020 renovation construction cost estimate is $1,165,435 plus $66,326 for tenant improvements (special museum electrical work) and assumes construction in summer 2021. Note that the project has not yet completed the City’s planning or building review and permitting processes. As such, the design might need to be modified to meet City requirements.

The renovation construction cost is just one component of the project’s total project cost. In addition to the cost of the renovation construction, the project has also required architecture and engineering and will require construction project management, permits, and possibly site improvements. Together, those could amount to a total project cost of approximately $1,400,000 or more. This total project cost estimate does not include the furniture, fixtures, and equipment (FFE) that a museum would need to open. The total project cost estimate also does not include the cost of ongoing maintenance and 164 of 369
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renewal of the building and site, which City staff estimates could cost approximately $50,000 annually.

Cost Sharing Agreements and/or Lease Provisions Between the City and PHM The Committee was specifically charged with providing recommendations to the City Council on lease provisions and/or cost sharing agreements between the City and PHM.

The Committee met on several occasions to consider different cost sharing and lease options. The Committee sought the input of PHM on approaches and options. The Committee directed City staff to draft some form of agreement that would address the issues of the renovation and lease. Staff proposed a framework that involves a MOU between the two parties as well as a lease between the two parties. The Committee and staff worked together to create a draft MOU, which was reviewed by the City Council in closed session on November 3, 2020. At that meeting, the City Council provided direction to staff on the proposed MOU (Attachment M). The Council directed staff to share the proposed MOU with PHM for review and feedback.

The Committee is recommending that the City Council consider a resolution approving the proposed MOU. The MOU establishes that if PHM can raise funding sufficient to pay for tenant improvements and FFE, the City will complete the renovation of the Faria House if the total project cost is less than or equal to $1,200,000 million (including architecture, costs of entitlements and CEQA, construction management, construction, and site improvements, excluding tenant improvements and FFE). If those conditions are met, the City would also execute a lease with PHM for the Faria House with certain parameters.

Options to Fund the City’s Share of the Faria House Renovation and Maintenance In July 2020, City staff presented Council with information on potential funding sources for the Faria House renovation (Attachment N). One of the potential funding sources noted was unassigned General Fund balance, which includes the City’s share of the proceeds of the sale of former Redevelopment Agency properties. Note that on October 6, 2020, City staff presented the five-year forecast for the General Fund and Measure S Funds for fiscal year (FY) 2020/21 through FY 2024/25 (Attachment O). The forecast contains updated information on expected unassigned fund balance in the General Fund and Measure S Funds. The General Fund balance is now forecasted to be $3.9 million at the end of FY 2020/21, decline to $3.3 million at the end of FY 2022/23, then increase to $3.7 million at the end of FY 2024/25. Those totals include amounts from the sale of the Pinole Assisted Living Community (PALC) and the City’s share of proceeds from the sale of former Redevelopment Agency properties at Henry Avenue and Pinole Valley Road and the seven-acre parcel located at the Pinole Shores II Business Park. (Recall that aside from the unassigned General Fund balance discussed above, the City currently has and plans to maintain a distinct General Reserve equal to 50% of General Fund ongoing operating expenditures.)
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REVIEW AND ANALYSIS
The City has made numerous incremental investments in and statements of intent regarding the Faria House’s restoration and use as a local history museum over the years. The City now has information on the estimated one-time and ongoing cost to renovate and maintain the property upon which to base a decision regarding whether to renovate the building and lease it to PHM. The proposed MOU is fairly binding on the City. If the bids for project costs come in such that the total project cost to the City as defined is less than $1.2 million, and PHM meets the fundraising threshold, the City is obligated to carry out the renovation and enter a lease with PHM.

FISCAL IMPACT
Were the City Council to approve the execution of the MOU with PHM, the City would be obligated, if certain conditions precedent were met, to seek bids for the renovation. If the bids for the elements comprising the total project cost (architecture and engineering, construction management, environmental review and permits, construction, and possibly site improvements) totaled $1.2 million or less, the City would be obligated to conduct the renovation, provide up to 500 hours of City staff time for project management, lease the facility to PHM, and maintain the building and site. PHM would be required to pay for the tenant improvements, FFE, and operational expenses of running a museum. Note that if the total project cost totaled more than $1.2 million, the City would have the option of proceeding with the renovation if PHM offered to make up the funding gap.

ATTACHMENTS
A. Resolution
B. Faria House Purchase and Sale Agreement
C. Redevelopment Agency Potential Deal Points for the Use of the Faria House as a Local History Museum
D. Resolution Approving Expenditure of $400,000 to Renovate the Faria House E. Resolution Approving a Lease and Grant Agreement with PHS F. Feasibility Study Regarding PHS Operating a Museum in the Faria House G. Report to City Council on Possible Uses of the Faria House H. City Letter of Intent to Dedicate the Faria House as a Location and Future Venue for the Pinole History Museum
I. City Letter of Intent to Establish an Agreement with PHM for Use of the Faria House as a Museum
J. Contract with Interactive Resources
K. Resolution Creating the Faria House Ad Hoc Committee L. Revised Renovation Construction Cost Estimate of September 17, 2020 M. Proposed MOU between the City and the Pinole History Museum Regarding the Renovation of the Faria House and Lease to PHM
N. City Council Staff Report on Potential Funding Sources for the Faria House Renovation
O. Five-Year Forecast for the General Fund and Measure S Funds for Fiscal Year (FY) 2020/21 through FY 2024/25
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CITY COUNCIL
REPORT 11B
DATE: FEBRUARY 1, 2022
TO: MAYOR AND COUNCIL MEMBERS
FROM: ANDREW MURRAY, CITY MANAGER

SANJAY MISHRA, PUBLIC WORKS DIRECTOR
SUBJECT: RECOMMENDED NEXT STEPS FOR 2301 SAN PABLO AVENUE (“COMMUNITY CORNER”)

RECOMMENDATION
Staff recommends that the City Council review staff’s recommended next steps regarding the City-owned property at 2301 San Pablo Avenue and provide direction.

BACKGROUND
The vacant lot located at 2301 San Pablo Avenue (the “Property”), which is sometimes referred to as “Community Corner,” was transferred from the former Redevelopment Agency to the City for development under the Long Range Property Management Plan.

The Property previously housed a gasoline service station, which has been removed. The site was most recently improved in 2011 through a collaborative project with the Pinole Chamber of Commerce, called “The Community Corner,” that involved removing a perimeter chain link fence and installing gravel and mulch. The City conducts basic maintenance of the Property.

The City has received proposals to develop the Property and marketed it for sale on multiple occasions in the past, most recently with three other former Redevelopment Agency properties. Attached find the offering memorandum that was published regarding the Property in August 2021. The City Council did not pursue any of the offers received for the Property in response to that marketing.

Since the Property is former Redevelopment Agency property, it must be sold for fair market value and the proceeds distributed to the appropriate taxing entities. If the City desires to retain the Property for a public use, the City will need to pay the fair market value, to be distributed to the taxing entities.
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REVIEW AND ANALYSIS
It would benefit the community for the Property to be put to productive use. A number of potential uses for the site have been suggested over time, including commercial development, mixed-use development, and a public park.

City staff believes that additional information on the costs and benefits of different potential uses (“programming”) of the Property, including those noted above, would be informative as the Council considers different options. Costs would include one-time and ongoing costs to the City of different uses, and benefits would include those related to economic and community development. In addition, City staff believes that community input from a representative sample of community members would be informative as the Council considers different options.

As such, City staff recommends that the City Council direct staff to solicit proposals from professional services firms to assess the costs and benefits of potential uses of the site, including at least the three potential uses noted above. City staff also recommends that the City Council direct staff to solicit proposals from professional services firms to conduct a community engagement process to gather input from a representative sample of the community on the preferred future use of the site. Staff estimates that it will cost $10,000 to hire a firm to conduct the cost and benefit assessment and $30,000 to hire a firm to conduct a community engagement process. Note that the cost for community engagement might be substantially lower if the City hired a firm to undertake community engagement on multiple community issues simultaneously.

FISCAL IMPACT
There is no financial impact created by receiving Council direction on this matter.

ATTACHMENT(S):

A – City of Pinole Offering Memorandum for 2301 San Pablo Avenue 168 of 369
If interested in learning more about
this opportunity, please contact
Suzy Kim, the City’s consultant, at
510.295.4867 or [email protected]
Prepared and
presented by

CONTRA COSTA COUNTY
PINOLE
The City of Pinole is pleased to announce
the opportunity to purchase a level-finished
vacant lot located at 2301 San Pablo Avenue
(7,860 sq. ft.) in the heart of Old Town Pinole.

The City is seeking proposals to develop the
site with a vibrant commercial or mixed-use
project that welcomes visitors to the City’s
downtown.

CITY OF PINOLE, CONTRA COSTA COUNTY

MIXED-USE DEVELOPMENT OPPORTUNITY

IN OLD TOWN PINOLE
2301 SAN PABLO AVENUE
$240,000
San Jose
San
Francisco
Santa
Cruz
Oakland
Stockton
★Pinole
CalBRE Corporate Broker License #01930929

ATTACHMENT A
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The Community
Incorporated in 1903, Pinole is located in the San Francisco Bay Area on the shores of San Pablo Bay in Western Contra Costa County. Pinole’s strategic location includes easy access to Interstate 80, which connects Pinole to San Francisco/Oakland to the south and Sacramento to the north. State Route 4 links Pinole to nearby cities such as Concord, Martinez, Pleasant Hill, and Walnut Creek.

Pinole is known for its architectural heritage and rich historic past while offering the feel of a small-town community. The City offers a superb quality of life and has a growing population of over 19,000 residents with a median household income of over $100,000. Its location in the thriving Bay Area and easy access to a trade area population of nearly 120,000 people within a 10-minute drive time provides an ideal market for a commercial, residential, or mixed-use development. Pinole hosts several major national retailers such as Sprouts, Trader Joes, Best Buy, Target, In N Out, and Habit Burger. 2301 San Pablo Avenue is located on a major
intersection in the City’s commercial core.

Surrounding office, retail, and restaurant uses
bring foot and auto traffic. Popular eateries within
walking distance include Tina’s, Pear Street Bistro,
and East Bay Coffee Co. Fernandez Park, the
Pinole Youth Center, and Community Playhouse are
located across the street. Bayfront Park is a ten
minute walk away, offering sweeping views of the
Bay. The Pinole Valley Shopping Center and Hilltop
Mall are just two nearby shopping centers that and
provide residents with ample opportunities for
grocery and retail shopping. The properties also
provide access to schools at the elementary, middle,
and high school levels within 1.5 miles.

The City welcomes proposals to develop the site
with a vibrant commercial or mixed-use project that
welcomes visitors to the City’s downtown.

Low Vacancy Rates

4.4% Multi-Family and

3.0% Retail Submarket
Vacancy Rates
Trade Area:

Over 120,000 residents
within 10 minutes
Public Amenities
275 acres of public
parks and trails
2301 SAN PABLO AVENUE
401-162-001-2
$240,000
• Level-finished vacant lot with landscaping and walkways. • Full utility access, sidewalks, curbs, gutters, and driveway cut outs in place. • 5/8” water line/meter and 4” sewer lateral.
• Two ingress/egress points from San Pablo Avenue and Tennent Avenue. 7,860
Three Corridor Specific Plan San Pablo Avenue Sub-Area - CMU Commercial Mixed Use. The predominant use is commercial. This category is designed to provide for the integration of retail and service commercial uses with office and/or residential uses to create vibrant commercial and mixed-use development.

At least 51% of the total floor area should be commercial retail and service use. Up to 100% may be residential with an approved affordable housing agreement and community benefits as specified in the General Plan.

Properties in the TCSP are governed by the Specific Plan development standards, unless there is a standard that is silent, in which case the Pinole Zoning Code applies. 0 ft. minimum Build to Front Line and Side Yard setbacks with 5 ft. minimum Rear Yard setback

20.1 30.0
3 (40 ft.)
See City of Pinole Three Corridor Specific Plan Table 6.2. If affordable housing is pursued, the City may consider concessions under applicable density bonus laws.

Any projects with four or more residential units will be subject to the City’s inclusionary housing requirements. At least 15% of total units must be offered for sale or rent as an affordable unit.

See Municipal Code Section 17.32 for details.

The property is a former LUST cleanup site. Cleanup was completed in 2007. The case closure letter and other information may be found at
https://geotracker.waterboards.ca.gov/profile_report?global_id=T0601300264.

Prospective buyers are responsible for any desired environmental and other due diligence.

ADDRESS
APN
Price
Current
Improvements
Lot Size (sq. ft.)
Zoning District
Name/Description
Setbacks
Minimum Density
(units/ac.)
Maximum Density
(Units/ac.)
Maximum Stories
Permitted and
Conditional Uses
Notes
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Letters of Interest
Qualified investors are asked to submit a letter of interest that shall include, but not be limited to, the following details:
• Offer price
• Terms and Conditions for acquiring the property. Please note the City will require entitlements and building permits to be approved during escrow before transferring ownership. • Description of the proposed development, including preliminary estimates of scaling/unit mix (drawings of the proposed design are appreciated but not required) • Development Timeline from acquisition, to breaking ground, and completion of construction • Description of your experience with similar projects
• Financing plan
• Primary contact name, phone number, and e-mail address Offers will be accepted on an open-ended basis and reviewed when received. Don’t miss out on this unique opportunity!
Send letters of interest to the City’s consultant, Suzy Kim (Senior Associate with RSG, Inc.) via e-mail at [email protected].

Questions? Contact:

Suzy Kim at [email protected] or 510.295.4867
Kyle Westra at [email protected] 714.316.2197
Prepared and
presented by
CalBRE Corporate Broker License #01930929
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CITY COUNCIL 11C
REPORT
DATE: FEBRUARY 1, 2022
TO: MAYOR AND COUNCIL MEMBERS
FROM: MARKISHA GUILLORY, FINANCE DIRECTOR
SUBJECT: RECEIVE AND ACCEPT THE ANNUAL COMPREHENSIVE

FINANCIAL REPORT (ACFR) FOR THE FISCAL YEAR (FY) ENDED
JUNE 30, 2021

RECOMMENDATION
Staff recommends that the City Council receive and accept the Annual Comprehensive Financial Report (ACFR) for the fiscal year (FY) ended June 30, 2021.

BACKGROUND
Each year, the City publishes the ACFR, which contains the City of Pinole’s basic financial statements, auditor’s report, and important supplemental information. The ACFR is intended to present the reader with a comprehensive view of the City’s financial position and activities.

The Finance Department is responsible for preparation of the ACFR and assumes responsibility for its accuracy, completeness, and fairness. Badawi & Associates Certified Public Accountants, the City’s auditors, audited the City’s financial statements for the fiscal year ended June 30, 2021 to provide reasonable assurance that the financial statements are free of material misstatement and are fairly presented in accordance with generally accepted accounting principles (GAAP).

Badawi & Associates issued an unmodified opinion, the highest possible rating. This means that the financial statements are presented, in all material respects, in accordance with applicable financial reporting guidelines. Consistent with sound fiscal management practices and prudent public policy, these reports are presented to the City Council for review and acceptance to enhance transparency of local government.

A copy of the ACFR is available for public inspection at City Hall, 2131 Pear Street, and has been posted on the City’s website at:
https://www.ci.pinole.ca.us/city_government/finance/annual_comprehensive_financi al_report.

It is important to note that the Government Accounting Standards Board (GASB) issued Statement No. 98 that updates the title of this annual report from “Comprehensive Annual Financial Report” to “Annual Comprehensive Financial 172 of 369
City Council Report
February 1, 2022 2
Report” (ACFR). As such, the City has adopted the new title, which is reflected throughout this staff report, the ACFR, and the City’s website.

REVIEW AND ANALYSIS
The ACFR is organized into five sections:
• An introduction, which includes the Transmittal Letter; • Management’s Discussion and Analysis (MD&A);
• Basic Financial Statements and Notes;
• Supplemental information; and
• Statistical information.

The MD&A section (pages 5-18) of the ACFR presents an overview and analysis of the City’s financial activities for the fiscal year ended June 30, 2021. Staff encourages readers to consider the information presented in this section in conjunction with additional information that is furnished in the Transmittal Letter (pages i-v), the City’s basic financial statements (pages 23-40), and the notes to the financial statements (pages 43-84). Additionally, the ACFR is supplemented by several auditors’ reports on the matters of internal controls, compliance, and governance (Attachments B-F).

Financial Highlights
• The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of FY 2020/21 by $43.6 million (net position). Of this amount, $33.5 million is restricted for specific purposes (restricted net position), $43.8 million is the net investment in capital assets and $33.7 million represents a deficit in unrestricted net position. • The City’s net position increased by $0.1 million, a 0.2% increase at the close of FY 2020/21 as compared to FY 2019/20. This increase is primarily the result of the Wastewater Utility excess revenues. Overall, governmental activities net position decreased by $0.8 million while business-type activities increased by $0.9 million.
• Governmental funds reported ending balances of $56.6 million, an increase of $2.7 million in comparison to FY 2019/20.
• The General Fund balance is $40.0 million, which has various levels of restrictions. The General Fund as presented in the financial statements comprises the General Fund, Measure S 2006 Fund, Measure S 2014 Fund, General Reserve Fund, Equipment Reserve Fund, and Section 115 Trust Fund.

Of the $40.0 million balance, $12.4 million is unassigned, 15% higher in comparison to FY 2019/20 unassigned fund balance of $10.8 million. The 173 of 369
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February 1, 2022 3
unassigned fund balance represents the portion that is not restricted, committed, or assigned for specific purposes.

All requirements have been met to achieve the highest standard in government accounting and financial reporting for an ACFR, the Certificate of Achievement for Excellence in Financial Reporting issued by the Government Finance Officers Association of the United States and Canada (GFOA). The City has received this certificate annually for the last twenty-four consecutive fiscal years.

FISCAL IMPACT
There is no fiscal impact in accepting the FY 2020/21 ACFR.

ATTACHMENTS
A – City of Pinole Annual Comprehensive Financial Report for the year ended June 30, 2021.

B – Auditors’ Report on Internal Control for the year ended June 30, 2021.

C – Auditors’ Report on Measure S 2006 Agreed-Upon Procedures for the year ended June 30, 2021.

D – Auditors’ Report on Measure S 2014 Agreed-Upon Procedures for the year ended June 30, 2021.

E – Auditors’ Letter to Governing Body – SAS 114 for the year ended June 30, 2021.

F – Auditors’ Report on Agreed-Upon Procedures Applied to Appropriations Limit Schedule for year ending June 30, 2022.
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CITY OF PINOLE, CALIFORNIA
Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021

ATTACHMENT A
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CITY OF PINOLE, CALIFORNIA

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

PREPARED BY THE

FINANCE DEPARTMENT
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City of Pinole
Annual Comprehensive Financial Report
Table of Contents
Page

INTRODUCTORY SECTION
Transmittal Letter ....................................................................................................................................................................... i GFOA Award ............................................................................................................................................................................ vi Organization Chart ................................................................................................................................................................. vii Elected Officials and Administrative Personnel ................................................................................................................ viii City of Pinole Map ................................................................................................................................................................... ix

FINANCIAL SECTION
Independent Auditor’s Report ............................................................................................................................................... 1 Management Discussion and Analysis ................................................................................................................................ 5 Basic Financial Statements:

Government – Wide Financial Statements:

Statement of Net Position ............................................................................................................................................ 23 Statement of Activities ................................................................................................................................................. 24 Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet ............................................................................................................................................................. 30 Reconciliation of the Governmental Funds Balance Sheet
to the Government –Wide Statement of Net Position ...................................................................................... 31 Statement of Revenues, Expenditures and Changes
in Fund Balances .................................................................................................................................................... 32 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities .................................................................... 33 Proprietary Fund Financial Statements:

Statement of Fund Net Position .............................................................................................................................. 36 Statement of Revenues, Expenses and Changes in Net Position ........................................................................ 37 Statement of Cash Flows .......................................................................................................................................... 38 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position ....................................................................................................................... 39 Statement of Changes in Fiduciary Net Position .................................................................................................. 40 Notes to Basic Financial Statements ........................................................................................................................ 43 179 of 369
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Annual Comprehensive Financial Report
Table of Contents, Continued.

Page
FINANCIAL SECTION, Continued
Required Supplemental Information:

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual:

General Fund .................................................................................................................................................................... 87 Housing Programs Special Revenue Fund ................................................................................................................... 88 Budgetary Control and Budgetary Accounting:

Budgetary Control and Budgetary Accounting ........................................................................................................... 89 Defined Benefit Pension Plan:

Schedule of the City’s Proportionate Share of the Net Pension Liability .................................................................. 90 Schedule of Contributions .............................................................................................................................................. 90 Other Post Employment Benefits (OPEB):

Schedule of the City’s Net OPEB Liability and Related Ratios for the Measurement Periods Ended June 30 ................................................................................................................. 91 Supplemental Information:

Non-Major Governmental Funds:

Combining Balance Sheet ................................................................................................................................................. 94 Combining Statement of Revenues, Expenditures
and Changes in Fund Balances .................................................................................................................................... 98 Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual:

Public Works Capital Project ........................................................................................................................................ 102 Growth Impact Fund ..................................................................................................................................................... 103 Gas Tax Fund .................................................................................................................................................................. 104 Parkland Dedication Fund ............................................................................................................................................ 105 Measure C Fund ............................................................................................................................................................. 106 Storm Water Fund .......................................................................................................................................................... 107 Refuse Management Fund ............................................................................................................................................ 108 Adjudicated Asset Seizure Fund .................................................................................................................................. 109 Police Fund ...................................................................................................................................................................... 110 Cable TV Fund ................................................................................................................................................................ 111 Recreation Fund ............................................................................................................................................................. 112 Building and Planning Fund ........................................................................................................................................ 113 Development Services Fund ......................................................................................................................................... 114 Solid Waste Fund ........................................................................................................................................................... 115 CASP Certification and Training ................................................................................................................................. 116 Rate Stabilization Fund .................................................................................................................................................. 117 Schedule of General Fund’s Section 115 Pension Fund:

Schedule of Section 115 Pension Fund ........................................................................................................................ 118 180 of 369
City of Pinole
Annual Comprehensive Financial Report
Table of Contents, Continued.

STATISTICAL SECTION
Financial Trends:

Net Position by Component ............................................................................................................................................. 123 Changes in Net Position ................................................................................................................................................... 124 General Fund Tax Revenues by Source .......................................................................................................................... 125 Fund Balance - Governmental Funds ............................................................................................................................. 126 Changes in Fund Balance - Governmental Funds ......................................................................................................... 127 Revenue Capacity:

Assessed Value and Estimated Actual Value of Taxable Property ............................................................................. 128 Direct and Overlapping Property Tax Rates .................................................................................................................. 129 Principal Property Taxpayers .......................................................................................................................................... 130 Property Tax Levies and Collections .............................................................................................................................. 131 Taxable Sales by Category ................................................................................................................................................ 132 Direct and Overlapping Sales Tax Rates ........................................................................................................................ 133 Top 25 Sales Tax Producers .............................................................................................................................................. 134 Debt Capacity:

Ratios of Outstanding Debt by Type ............................................................................................................................... 135 Ratios of Net General Bonded Debt Outstanding ......................................................................................................... 136 Direct and Overlapping Governmental Activities Debt ............................................................................................... 137 Computation of Legal Debt Margin ................................................................................................................................ 138 Tax Allocation Bond Coverage ........................................................................................................................................ 139 Economic and Demographic Information:

Demographic and Economic Statistics ............................................................................................................................ 140 Principal Employers .......................................................................................................................................................... 141 Operating Information:

Full-Time Equivalent City Government Employees by Function/Program ............................................................. 142 Operating Indicators and Capital Asset Statistics by Function/Program ................................................................. 143 Capital Asset Statistics by Function/Program .............................................................................................................. 144 181 of 369
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2131 Pear Street Phone: (510) 724-9833
Pinole, CA 94564 FAX: (510) 724-9826
www.ci.pinole.ca.us
December 30, 2021
Members of the City Council
Residents of the City of Pinole
We are pleased to present the Annual Comprehensive Financial Report (ACFR) of the City of Pinole, California for the fiscal year (FY) ended June 30, 2021.

Introduction
The City is required to issue a complete set of financial statements each year in conformance with generally accepted accounting principles (GAAP) and audited by an independent, certified public accounting firm. The ACFR contains the financial statements as well as supplemental information.

City management assumes full responsibility for the completeness and reliability of all the information presented in the ACFR. Management has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with GAAP.

Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable, rather than absolute, assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

Badawi and Associates, an independent, certified public accounting firm, has audited the City of Pinole’s financial statements for the fiscal year ended June 30,2021. The objective of the audit was to provide reasonable assurance that the financial statements of the City are free of material misstatement. The audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating overall financial management presentation.

Badawi and Associates concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of Pinole’s financial statements for the year ended June 30, 2021 are fairly presented in conformity with GAAP. Their independent auditor’s report is the first component presented in the financial section of the ACFR.

Public agencies that receive federal funding above a certain monetary threshold are required to undergo an annual “Single Audit” that incorporates the audit of financial statements mentioned above as well as an auditor’s assessment of the City’s internal controls and compliance with legal requirements, particularly internal controls and compliance regarding administration of federal awards. The Single Audit Report is published as a separate document from the ACFR. A Single Audit Report is not required for the City for the fiscal year ended June 30, 2021 because federal expenditures for the year were below the $750,000 threshold.

GAAP requires that the ACFR include a narrative introduction, overview, and analysis of the City’s financial condition, provided by management in the form of the Management’s Discussion and Analysis i
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(MD&A), to accompany the basic financial statements. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the independent auditors report in the financial section of the ACFR.

Profile of the Government
The City of Pinole was incorporated on June 25, 1903. Pinole is primarily a residential community located in West Contra Costa County, approximately 30 miles northeast of San Francisco and 20 miles north of Oakland along Interstate 80. The City currently has a land area of 5 square miles and a population of 19,369.

The City operates under the Council-Manager form of government, with five Council Members elected citywide on a non-partisan basis. Council Members are elected to four-year staggered terms with three Council Members alternating election with two Council Members at two-year intervals. Each year, the Council appoints one of its members to serve as Mayor. The Council appoints the City Manager, City Attorney, and City Clerk. Policymaking and legislative authorities are vested in the City Council, which among other things, passes ordinances, adopts the budget, and appoints committees. The City Manager is responsible for carrying out the policies and ordinances of the City Council, for overseeing the day-to-day operations of the City, and for appointing the department directors.

Pinole is a full-service city, with 115.4 full-time equivalent authorized personnel in fiscal year 2020/21.

The City provides public safety (police and fire), public works (maintenance of streets and facilities), community development (land use and building regulation), recreation programs and parks, wastewater utilities, administration, and fiscal services.

The financial statements included in the ACFR cover the City (the primary government), and its component units if applicable. Component units are legally separate entities for which the primary government is financially accountable. Blended component units, although legally separate entities, are, in substance, part of the City’s operations, and data from these units are combined with data from the City. The City’s component unit, the City of Pinole Joint Powers Financing Authority is a separate government entity whose purpose is to assist with the financing or refinancing of public capital facilities within the City and is all blended. Discrete component units are reported in a separate column in the basic financial statements to emphasize their separateness from the City. The Successor Agency to the Pinole Redevelopment Agency is not a component unit of the City but is accounted for in a Private Purpose Trust Fund in the Fiduciary Funds segment of the financial report. The former Redevelopment Agency was considered a component unit of the City.

The City’s Economic Condition
Since March 2020, Pinole’s economy has been impacted by COVID-19 and the related Shelter in Place (SIP) orders. The budgetary impact to the City has primarily involved slightly decreased revenues, primarily in the user fee category. While the City experienced a slight decline in sales tax revenue from the initial SIP, the City did not experience a pronounced or prolonged loss of sales tax due to SIPs. In fact, sales tax rebounded quicker than industry experts initially predicted. The upward trend was most attributable to the rise in online sales. The long-term trend of the City’s economy is a strengthening local tax base in both retail sales and real property values. The region has a varied manufacturing, industrial, and commercial economic base. The City’s principal businesses are engaged in merchandising and retail sales. The local unemployment rate in 2021 was 7.0%, down from the 13.2% in 2020. Contra Costa County, which includes Pinole, has an unemployment rate of 6.3% in 2021, which is less than the state’s average rate of 7.9%.
ii
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Real property values continue to rise. Growth in home sales strengthened in the summer of 2020 as many cities saw an increase in properties for sale. Sales price increases in 2020 were reflected on the FY 2021/22 tax rolls. The median price of a detached single family residential home in Pinole increased by 19.3% from 2020.

Operating and Capital Budget
On June 29, 2021, the City Council adopted the FY 2021/22 Operating and Capital Budget. The Adopted FY 2021/22 Operating and Capital Budget is not structurally balanced. Staff strongly believes that the proposed budget is nonetheless prudent and responsible because the additional expenditures that it contains beyond the current year revenues are critical to achieving the City’s vision, mission, and goals; the City has substantial unassigned General Fund fund balance; and the City’s Long-Term Financial Plan forecasts that City revenues will notably increase in the near future due to the retirement of some significant debt. Per the City’s Structurally Balanced Budget Policy, if the final proposed budget is structurally imbalanced, staff should develop a plan to create a structurally balanced budget for the subsequent fiscal year. Staff intends to do so. The Adopted FY 2021/22 Operating and Capital Budget does not include any use of the City’s $8.7 million General Reserve.

The City received $2.3 million (one half) of its $4.6 million allocation from the American Rescue Plan Act (ARPA), and tentatively expects to receive additional new federal funding from a forthcoming federal infrastructure bill. Staff intends to seek Council’s direction on the appropriation of the ARPA funding over the course of FY 2021/22 and FY 2022/23. Staff believed that the expected new federal funding was too substantial an amount and contained too many specific requirements to seamlessly integrate its appropriation into the regular annual budget process.

Strategic Plan 2020 – 2025
In February 2020 the City Council adopted the City of Pinole Strategic Plan 2020 – 2025. The Strategic Plan expressed the City’s vision, mission, and goals. The Strategic Plan also identified 22 individual strategies (special projects) for staff to complete over a five-year timeframe to position the City to achieve the vision, mission, and goals.

The adoption of the Strategic Plan was momentous. It reaffirmed the City’s commitment to and focus on creating a safe and vibrant community and providing efficient and effective City services. It will take some time for staff to complete all 22 strategies and for the resulting changes in the community and City services to be fully realized. Despite needing to devote a significant amount of time to COVID-19 during the current fiscal year, City staff has nonetheless been able to make progress on several of the strategies.

Major Accomplishments and Initiatives
Despite needing to devote a significant amount of time to COVID-19 and advancing the Strategic Plan strategies, City staff has also been able to implement a limited number of new programs and services during the current fiscal year, such as a COVID-safe cooling center at the Senior Center, food distribution, holiday lights for downtown, expanded park restroom hours, and small business grants. iii
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Following are some major initiatives that were completed in FY 2020/21:
x Developed a Long-Term Financial Plan (LTFP) for FY 2020/21 – FY 2025/26, which was adopted by the City Council in June 2021. It provides a five-year outlook and forecast of General Fund revenues and expenditures. The LTFP identifies potential opportunities and challenges that the City may proactively address through the annual budget and capital improvement planning processes.
x Conducted a citywide Organizational Assessment that resulted in a new organizational structure. The new structure creates separate Community Development and Public Works Departments, as well as a new Community Services Department, which consolidates recreation and various other community-oriented services. It also creates some new departmental divisions and subdivisions to provide a clear home for some important functions, such as economic development and communication and engagement, that did not have a clear home in the former organizational structure.

Following are some major initiatives that are in progress and expected to be completed within the next fiscal year:
x Conduct a citywide asset condition assessment
x Update the City’s Emergency Operations Plan (EOP)
x Review, prioritize, and implement as appropriate the 2019 fire service study recommendations x Conduct a comprehensive fee study
x Update the General Plan and Three Corridors Specific Plan x Develop a comprehensive economic development strategy x Develop an employee attraction, retention, and development plan x Develop a strategic communication plan and public engagement plan x Develop a comprehensive Information Technology Plan
Financial Policies and Planning
The annual budget serves as the foundation of the City’s financial planning and control. The budget process begins in February when each department receives a preliminary proposed baseline budget for the upcoming fiscal year. The City Manager, Assistant City Manager, and Finance Director meet with each department director to discuss their budget requests and to make adjustments where necessary. The City Council Finance Subcommittee meets in May to review the draft proposed budget for the upcoming year. The City Council then reviews the revised proposed budget and final proposed budget, and then adopts a final budget prior to July 1. The operating budget includes proposed expenditures and the financing sources. Public meetings are conducted in June to obtain public comments. The budget is legally adopted through passage of a Council resolution no later than June

30. A budget review, which includes recommended additions or changes, is presented to the City Council on a quarterly basis. Any changes as a result of these reviews are legally adopted through Council resolution.

The Council exercises budgetary control at the functional department level. Formal budgetary integration is employed as a management control device during the fiscal year for the General Fund, Special Revenue Funds, Capital Project Funds, Enterprise Funds, and Internal Services Funds. The budgeted funds are adopted on a basis consistent with GAAP in the United States. Expenditures may not legally exceed budgeted appropriations at the fund level. Management does not have the authority to amend the budget without approval of the City Council. iv
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Public funds held by the City Treasury were invested in accordance with the City’s Investment Policy that was reviewed and adopted on October 6, 2020 and conforms to the California Government Code Section 53601. The permitted investments include U.S. treasury notes, bonds, or bills; instruments issued by a U.S. federal agency or a U.S. government sponsored enterprise; negotiable certificates of deposit (with certain restrictions); medium term corporate notes with a rating category of “AA” or better; commercial paper of “prime quality”; bankers acceptances; repurchase agreements not to exceed 30 days; money market mutual funds; and with the State of California Local Agency Investment Fund. The objectives of the City’s Investment Policy are to invest up to 100% of temporarily idle funds while maintaining safety, liquidity and yield. The Investment Policy is reviewed annually in conjunction with all financial policies to ensure its consistency with respect to the overall objectives, and its relevance to current laws and financial trends.

The City is a member of the Municipal Pooling Authority (MPA). This Joint Powers Authority (JPA) was formed to allow member agencies to pool together to provide cost effective risk management services and programs to member agencies. The MPA provides for general liability, workers compensation, autophysical damage, all risk fire and property, including earthquake, and boiler and machinery coverage.

The City also purchases employee benefit coverage through this pool which includes dental and orthodontic, life and long-term disability coverage.

Awards
The Government Finance Officers Association of the United States and Canada (GFOA) awarded the Certificate of Achievement for Excellence in Financial Reporting to the City of Pinole for its Comprehensive Annual Financial Report for the fiscal year ended June 30, 2020. This was the 24th consecutive year that the City has received the prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easy to read and efficiently organized comprehensive annual 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. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its continued eligibility for a certificate.

Acknowledgements
The preparation of the ACFR was made possible through the dedicated work of the Finance Department staff and with the cooperation of all City departments. Special thanks and acknowledgement are due to Maria Mata, Accountant; Anthony Colden, Accounting Specialist; and Chris Russell, Accounting Technician for their commitment and effectiveness in the maintenance of the City’s financial records.

I wish to acknowledge and thank the City Council for its leadership and commitment to ensuring the long-term fiscal health of the City.

Respectfully submitted,
Andrew Murray
City Manager
v
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Pinole
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2020
Executive Director/CEO
vi
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vii
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CITY OF PINOLE

ELECTED OFFICIALS AND

DEPARTMENT HEADS
JUNE 30, 2021

ELECTED OFFICIALS
Mayor
Mayor Pro Tem
Council Member
Council Member
Council Member
City Treasurer
Norma Martínez-Rubin
Vincent Salimi
Devin Murphy
Anthony Tave
Maureen Toms
Roy Swearingen

DEPARTMENT HEADS
City Manager
Assistant City Manager
City Attorney (Contract)
City Clerk
Development Services Director
Finance Director
Fire Chief
Police Chief
Andrew Murray
Hector De La Rosa
Eric Casher
Heather Iopu
Tamara Miller
Markisha Guillory
Chris Wynkoop
Neil Gang
viii
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ix
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x
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INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
of the City of Pinole
Pinole, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Pinole, California (City) as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

Management’s Responsibility 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; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements 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 entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
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To the Honorable Mayor and Members of the City Council
of the City of Pinole
Pinole, California

Page 2 ends

Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2021, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information, pension information, and OPEB information on pages 5-18 and 87-91 be presented to supplement the basic financial statements. Such information, 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.

Other 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 introductory section, combining and individual nonmajor fund financial statements, budgetary comparison schedules on pages 94 to 119 and statistical section, are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual nonmajor fund financial statements, and the budgetary comparison schedules on pages 94 to 119 are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such 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 combining and individual nonmajor fund financials statements, and the budgetary comparison schedules on pages 94 to 119 are fairly stated in all material respects in relation to the basic financial statements as a whole.

The introductory and statistical sections have 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.
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To the Honorable Mayor and Members of the City Council
of the City of Pinole
Pinole, California

Page 3 ends

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 30, 2021 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 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.

Badawi and Associates, CPAs
Berkeley, California
December 30, 2021
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MANAGEMENT’S DISCUSSION AND ANALYSIS
This section of the City of Pinole’s (City) Annual Comprehensive Financial Report presents a narrative overview and analysis of the City’s financial activities for the fiscal year ended June 30, 2021 (FY 2020/21).

We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal and the City’s basic financial statements which follow this section.

FINANCIAL HIGHLIGHTS
x The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of FY 2020/21 by $43.6 million (net position). Of this amount, $33.5 million is restricted for specific purposes (restricted net position), $43.8 million is the net investment in capital assets and $33.7 million represents a deficit in unrestricted net position. x The City’s net position increased by $0.1 million, a 0.2% increase at the close of FY 2020/21 as compared to FY 2019/20. This increase is primarily the result of the Wastewater Utility excess revenues. Overall, governmental activities net position decreased by $0.8 million while business-type activities increased by $0.9 million.
x Governmental funds reported ending balances of $56.6 million, an increase of $2.7 million in comparison to the prior fiscal year ending June 30, 2020. x The General Fund balance is $40.0 million, of which $12.4 million is unassigned.

GENERAL FUND BUDGETARY HIGHLIGHTS
x Actual General Fund revenues totaling $23.5 million were $3.4 million, or 17% higher than the final total revenue budget. Excess revenues were primarily in sales tax and investment earnings on the funds in the Section 115 Pension Trust.
x Actual General Fund expenditures totaling $19.9 million were 3.3 million, or 14.2% less than the total final expenditure budget. The savings primarily resulted from lower actual expenditures in public safety due to position vacancies and capital outlay due to deferred vehicle and equipment purchases.

OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements.

The City’s basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other required supplementary information and related notes, combining statements for non-major governmental funds, and individual fund financial statements and schedules. 5 197 of 369
Government-wide Financial Statements
Government-wide Financial Statements are designed to provide readers with a broad overview of City finances, in a manner similar to a private-sector business. The government-wide financial statements include the City (primary government); the City does not have any component units.

The Statement of Net Position presents information on all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the difference between the two reported as net position.

Over time, increases or decreases in net position may serve as an indicator of whether the financial position of the City is improving or deteriorating.

The Statement of Activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows (accrual basis of accounting). Thus, revenues and expenses are reported in this statement for some items that will result in cash flows in future fiscal periods, such as revenues pertaining to uncollected taxes and expenses pertaining to interest on long-term debt.

Both of these government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a substantial portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, public services, recreation, and community development. The business-type activities of the City include wastewater utility.

As of February 1, 2012, the activity of the Successor Agency to Pinole Redevelopment Agency (Successor Agency) is reported with the City’s fiduciary funds, which is not included in the government-wide statements since the resources of those funds are not available to support the City’s own programs. The Successor Agency is included as a fiduciary fund as the activities are under the control of an Oversight Board. The City provides administrative services to the Successor Agency to wind down the affairs of the former Redevelopment Agency.

Fund Financial Statements
Fund Financial Statements use fund accounting to segregate accounts for specific activities or objectives, including demonstrating finance-related legal compliance. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds, as described below.

Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental funds financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year.

The governmental funds focus is narrower than that of the government-wide financial statements. It is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. This comparison facilitates a better understanding of the long-term impact associated with the government’s near-term financing decisions. The governmental funds balance sheet and the governmental funds statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City maintains several individual governmental funds organized according to their type (general, special revenue, debt service, and capital projects). Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures and changes in fund balances for the major funds (see Notes to Basic Financial Statements). 6 198 of 369
Data from the remaining non-major governmental funds are combined into a single, aggregated presentation.

Individual fund data for each of these non-major governmental funds is provided as supplementary information in the form of combining statements.

Proprietary funds are generally used to account for services for which the City charges customers – either outside customers or internal units of departments in the City. Proprietary funds provide the same type of information as shown in the government-wide financial statements, only in more detail. The City maintains two types of proprietary funds, enterprise funds and internal service funds, as described below. x Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for the wastewater utility.
x Internal service funds are used by the City to establish reserves and account for employee benefits, equipment replacement, liability insurance, and retiree medical benefits. These funds serve both governmental and business-type functions and so they are allocated accordingly in the governmentwide financial statements. The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided as supplementary information in the form of combining statements.

Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Since the resources of these funds are not available to support the City’s own programs, they are not reflected in the government-wide financial statements. The fiduciary funds for the City consist of the Successor Agency to the Pinole Redevelopment Agency Private-Purpose Trust Fund.

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

Required Supplementary Information
Required Supplementary Information includes budgetary comparison schedules that have been provided for the major governmental funds to demonstrate compliance with the budget. Required supplementary information also includes schedules showing the City’s progress towards funding its pension plan and other post-employment benefits (OPEB). The City participates in California’s Public Employees Retirement System (CalPERS) for its pension plan and provides its employees with post-retirement health care benefits (OPEB).

Supplementary Information
Supplementary Information includes information for non-major governmental, non-major enterprise, internal service, and agency funds, and is presented immediately following the required supplementary information.

GOVERNMENT-WIDE FINANCIAL ANALYSIS
The following section provides a comparative analysis of government-wide data for FY 2020/21 and FY 2019/20. The Statement of Net Position will be discussed first, followed by a discussion of the Changes in Net Position.

The following table is a summary of the Statement of Net Position as of June 30, 2021 (2021) and June 30, 2020 (2020).
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Analysis of Net Position
Net position may serve as a useful indicator of a government’s financial position. The City’s assets and deferred outflows of resources exceeded its liabilities and deferred inflows by $43.6 million at the close of FY 2020/21. The City’s combined net position increased 0.2%, or $0.1 million from the prior fiscal year. This is primarily a result of changes in business activities due to Wastewater Utility excess revenues. x Net investment in capital assets (e.g. infrastructure, land, buildings, improvements other than buildings, construction in progress, and equipment), less any related debt used to acquire assets still outstanding, is $43.8 million (100% of the total). The City uses these capital assets to provide services to the community; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since generally capital assets are not used to liquidate these liabilities. The City's net investment in capital assets increased by $0.6 million (Note 5).
x Restricted net position of $33.5 million (77% of the total) represents resources that are subject to external restrictions on how they may be used. Of this amount, $7.8 million represents housing net position with $1.2 million of that amount representing properties held for housing resale or redevelopment (Note 4).
x Unrestricted net position, the part of net position that can be used to finance day-to-day operations without constraints established by debt covenants, enabling legislation, or other legal requirements, decreased by $2 million to negative $33.7 million. Governmental activities unrestricted net position was a negative $44.5 million (primarily as a result of implementing GASB Statement Nos. 45, 68, 71 and 75 related to pension and OPEB liabilities), and business-type activities net position was a positive $10.8 million.
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Analysis of Activities
The following table reflects the summary of changes in net position for governmental and business-type activities as of June 30, 2021 (2021) and June 30, 2020 (2020). 2021 2020 2021 2020 2021 2020
Revenues:

Program revenues:

Charges for services 2,877,798 $ 3,371,242 $ 7,527,056 $ 7,093,734 $ 10,404,854 $ 10,464,976 $ -0.60% Operating grants and
contributions 1,795,055 1,790,729 - - 1,795,055 1,790,729 0.20% Total program revenue 4,672,853 5,161,971 7,527,056 7,093,734 12,199,909 12,255,705 -0.50% General revenues:

Taxes:

Property tax 4,001,411 4,473,828 - - 4,001,411 4,473,828 -10.60% Sales tax 9,114,809 7,875,223 - - 9,114,809 7,875,223 15.70% Franchise tax 751,598 750,002 - - 751,598 750,002 0.20% Utility tax 2,329,873 2,215,084 - - 2,329,873 2,215,084 5.20% Transient occupancy tax 446,105 444,453 - - 446,105 444,453 0.40% Other taxes 468,987 452,815 - - 468,987 452,815 3.60%
Motor Vehicle in Lieu 2,004,884 1,922,881 - - 2,004,884 1,922,881 4.30% Gain on disposal of asset 83,209 3,231 - - 83,209 2476.30% 3,231 Investment Earnings 3,020,587 1,899,190 44,259 284,574 3,064,846 2,183,764 40.30% Miscellaneous 270,712 590,928 - 270,712 - 590,928 -54.20% Total general revenues 22,492,175 20,627,635 44,259 284,574 22,536,434 20,912,209 7.80% Total revenues 27,165,028 25,789,606 7,571,315 7,378,308 34,736,343 33,167,914 4.70% Expenses:

General government 4,957,477 4,596,909 - 4,957,477 - 4,596,909 7.80% Public safety 15,895,381 14,937,597 - 15,895,381 - 14,937,597 6.40% Public services 4,541,157 3,488,882 - 4,541,157 - 3,488,882 30.20% Recreation 949,734 1,146,587 - 949,734 - 1,146,587 -17.20% Community development 1,275,333 1,365,580 - 1,275,333 - 1,365,580 -6.60% Interest and fiscal charges 331,218 304,844 - 331,218 - 304,844 8.70% Wastewater utility - 6,688,530 - 5,704,747 6,688,530 5,704,747 17.20% Total expenses 27,950,300 25,840,399 5,704,747 - 34,638,830 31,545,146 9.80% Revenues over (under)
expenses (785,272) (50,793) 882,785 1,673,561 1,622,768 97,513 -94.00% Changes in Net Position (785,272) (50,793) 882,782 1,673,561 1,622,768 97,513 -94.00% Net position, beginning of
year, restated 20,835,535 20,886,328 22,695,934 21,022,373 43,531,469 41,908,701 3.90% Net position, end of year 20,050,263 $ 20,835,535 $ 23,578,719 $ 22,695,934 $ 43,628,982 $ 43,531,469 $ 0.20% Governmental Activities Business-type Activities Totals Total % Change
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Governmental Activities
Governmental activities net position decreased by $0.8 million. Key elements of the change in net position are as follows:
x Program revenue, charges for services reflected a decrease of $0.5 million (14.6%) over FY 2019/20.

This is the result of decreased permit and fee revenue from development activity. Permit fees for a significant development project were received in the prior year. x General revenue reflected an increase of $1.8 million (9.0%) over FY 2019/20. This is largely attributable to an increase in sales tax revenue of $1.2 million primarily due to County pool receipts from online sales and investment earnings of $1.1 million (59%) over FY 2019/20 as a result of increased earnings in the Section 115 Pension Fund which is recorded as restricted cash in the General Fund.

Expenses increased by $2.1 million (8.2%) over FY 2019/20. The most significant changes were in public safety with an increase of $1.0 million (6.4%), and public services with an increase of $1.1 million (30.2%).

Public Safety costs increase were due to increase pension costs and overtime.

Business-type Activities
Business-type activities increased the City’s net position by $0.9 million, exceeding the total increase in net position of $0.1 million. Key elements of the change in net position are as follows:
x The City’s sole business-type activity is the operation of its Water Pollution Control Plant (WPCP) Wastewater Utility, which is accounted for in a proprietary-type enterprise fund. The WPCP accounts for the collection, treatment and disposal of wastewater generated by city residents and businesses.

The operation and maintenance of the City’s Wastewater Utility should be a self-supporting enterprise that is paid for by monthly service charges to all residential and commercial users. The City’s business-type activities provide the same type of information as the proprietary fund financial statements, but are presented in a more summarized format. x Program revenues increased $0.004 million (0.2%) over the prior fiscal year. x There was an increase in expenses over the prior fiscal year of $1.0 million (17.2%). Depreciation expense is considered a cost of service in proprietary funds, which accounted for $1.1 million in FY 2020/21 (Note 5).
x The City of Pinole is financing its share of the Water Pollution Control Plant Upgrade project through a low interest loan from the State Revolving Loan Fund. The City has been approved for a loan in the amount of $26.6 million by the State Water Resources Control Board. In order to repay the loan, the City Council approved Resolution Number 2013-47 with scheduled rate increases over a five-year period, beginning July 1, 2013. The rate plan was amended July 17, 2018 by Resolution Number 2018-

66. The 2020 monthly rate for single family residents was $69.34. 10 202 of 369
Fund Financial Analysis
The City uses fund accounting to segregate accounts for specific activities or objectives, including demonstrating finance-related legal compliance.

Governmental Funds
The following table presents the Governmental Funds’ balances as of June 30, 2021:

The City implemented GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions in fiscal year 2010-11 (Note 11). This Statement provides more clearly defined fund balance categories to make the nature and extent of the constraints placed on a government’s fund balances more transparent.

At June 30, 2021, the City’s governmental funds reported combined fund balances of $56.6 million, which is an increase of $2.1 million (3.9%) when compared to the prior fiscal year, FY 2019/20. This increase is increased investment interest and the proceeds from loan repayment.

Nonspendable fund balances constitute $0.3 million, (0.6%) of the combined governmental fund balance and cannot be spent either because the underlying resources are not in a spendable form or because the government is legally or contractually required to maintain the resources intact.

Restricted fund balances constitute $33.5 million, (59.3%) of the combined governmental fund balance and are constrained for a specific purpose by external parties, constitutional provision, or enabling legislation.

Assigned fund balances constitute $10.4 million (18.3%) of the combined governmental fund balance and are constrained by City Council for reserves for economic uncertainty as well as certain capital projects.

Assigned fund balances are intended to be used for specific purposes and have been identified as such by the City Council or the City Manager who has been delegated authority by the City Council to assign amounts.

Unassigned fund balances constitute $12.4 million (21.8%) of the combined governmental fund balance and consist of amounts that have not been classified as nonspendable, restricted, or assigned. 11 203 of 369
Analysis of Governmental Funds
General Fund
The designated major Governmental funds in FY 2020/21 are the General Fund and the Housing Fund. A major fund is defined as those funds whose revenues, expenditures/expenses, assets or liabilities are at least 10 percent of the total for their fund category (governmental or enterprise) and 5 percent of the aggregate of all governmental and enterprise funds in total.

The General Fund is the primary operating fund of the City. The General Fund is used to report the financial results of the daily operations of the City. The major revenue sources are Property Tax, Sales Tax, and Utility Users’ Tax. The major expenditures are salaries and administrative expenses.

The fund balance for the General Fund increased by $2.2 million (5.8%), as a net result of revenues in excess of expenditures in the current fiscal year of $3.6 million, offset by other financing uses in the amount of $1.4 million resulting from operating contributions to other operating funds.

General Fund revenue increased by $2.2 million (10.2%) this fiscal year as compared to FY 2019/20. The largest components of this increase are sales tax revenue, investment earnings, and the transfer in from the Section 115 pension trust to offset the increase in pension costs.

General Fund expenditures increased $1.2 million this fiscal year (6.5%) this fiscal year compared to FY 2019/20. This is primarily attributed to a $0.8 million increase in public safety costs for salary and benefits.

Capital outlay costs increased by $0.3 million due to additional vehicle purchases. General administration costs increase by $0.2 million due to cost allocation changes. 12 204 of 369
Revenue
The following table highlights the General Fund revenue by source as of June 30, 2021.

Revenue by Source
% of Total FY 2020/21
Taxes and assessments 79% 18,540,071 $
Intergovernmental 1% 298,719
Loan Repayments 0% 55,197
Investment earnings 12% 2,861,375
Rents and ground leases 1% 121,030
Charges for services 6% 1,521,791
Other revenues 1% 143,698
Total 100% 23,541,881 $
Taxes and
assessments
79%
Intergovernmental
1%
Loan Repayments
0%
Investment
earnings
12%
Rents and ground
leases
1%
Charges for
services
6%
Other revenues
1%
Revenue by Source
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Expenditures
The following table highlights the General Fund expenditures by function as of June 30, 2021.

General
administration
20%
Public safety
64%
Public services
6%
Community
development
1%
Debt service
3%
Capital outlay
6%
Expenditures by Function
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Other Governmental Funds
These funds are not presented separately in the Basic Financial statements, but are presented individually as Supplemental Information.

Other governmental funds revenue decreased by $0.8 million this fiscal year as compared to FY 2019/20. This is largely the result of net decreases in charges for services mostly in recreation due to program closures, interest earnings, and other miscellaneous revenues.

Other governmental funds expenditures increased by $0.9 million this fiscal year as compared to FY 2019/20.

This is largely in the capital outlay category as a result of infrastructure projects completed this fiscal year, notably the residential slurry seal project.

Proprietary Fund
Wastewater Utility
The Wastewater Utility Funds net position increased by $0.9 million, 3.9% over the prior fiscal year to a total of $23.6 million. Operating income for FY 2020/21 was $1.5 million, as revenues increased $0.4 million, while expenses increased $1.0 million.

The Fund’s Net Position is comprised of $12.8 million net investment in capital assets and $10.8 million in unrestricted net assets at June 30, 2021. The increased rates for the sewage collection and treatment fees have successfully restored positive cash flows to the City’s Business-type Activities, stabilizing the fiscal condition of this enterprise activity.

Fiduciary Fund
The Successor Agency to the Pinole Redevelopment Agency Private Purpose Trust Fund On December 29, 2011, the California Supreme Court upheld Assembly Bill 1x-26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. In accordance with the timeline set forth in the bill, all redevelopment agencies in the State of California were dissolved and ceased to operate as legal entity as of February 1, 2012.

The Successor Agency is a separate legal entity which was formed to hold the assets of the former Redevelopment Agency pursuant to City Council action. The activity of the Successor Agency is overseen by an Oversight Board comprised of individuals appointed by various government agencies (Note 1).

Recognizing the need for short-term borrowing to finance the General Fund cash flow (Working Capital) needs following the fiscal distress resulting from the Economic Recession of 2008, internal borrowing between the City and its former Redevelopment Agency was authorized in April of 2008. The amounts advanced ($2.5 million) by the Redevelopment Agency was to be repaid with interest over a period of no more than fifteen years commencing the 2013/14 fiscal year. Repayment of the debt was secured with a collateralized investment agreement pledging City assets (real property and facilities having commercial value in excess of the amount authorized for the borrowing) against the borrowing. The initial repayment of $263,300 was made in 2014. The City repaid the remaining balance of the Note Payable during fiscal year 2019/20, and the balance remaining at June 30, 2021 is $0 (Note 6).
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CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets:

The City’s net investment in capital assets for its governmental and business-type activities as of June 30, 2021 was $43.8 million. This investment in capital assets includes: infrastructure, land, construction-in-progress, buildings, and improvements, equipment, vehicles, streets and roads, storm drains, bridges, parks, and sewer lines. Infrastructure assets are items that are normally immovable and of value to the City such as roads, bridges, streets and sidewalks, drainage systems, lighting systems, and similar items (Note 5).

Capital assets for the governmental and business-type activities are presented below to illustrate changes from the prior year:

Debt Administration:

Each of the City’s debt issues is discussed in detail in Note 7 to the financial statements. At June 30, 2021 the City’s remaining long-term debt is comprised of a Pension Obligation Bond bearing interest rates ranging from 5.67% to 6.12%, as follows:
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Other long-term liabilities include accrued payroll obligations (vested compensated absences accrued).

ECONOMIC OUTLOOK AND MAJOR INITIATIVES
The economy of the City and its major initiatives for the coming year are discussed in detail in the accompanying Transmittal Letter (page i-v). The most significant financial initiatives facing the City are, as follows:
x COVID-19 impacts to the community and the region continue to be monitored. Although there has been no direct significant fiscal impact to the City to date, management is continuing to evaluate the financial effect it may potentially have on the revenues and city programs. x American Rescue Plan Act (ARPA) enacted in March 2021 provides relief funding to governments in response to the negative economic impacts of the COVID-19 pandemic. The City’s allocation was determined to be $4,605,009 to be received in two tranches one year apart. The first tranche received in July 2021 will be allocated programs in accordance with statutory allowable uses, including providing direct support to businesses and households.
x City’s Strategic Plan 2020-2025 adopted in February 2020 identifies 22 individual strategies (special projects) for staff to complete over a five-year timeframe to position the City to achieve the vision, mission, and goals. Under Goal 2 – Financially Stable Pinole, several initiatives are underway or have been completed, including development of a long-term financial plan and a comprehensive user fee study.
x Long-Term Financial Plan for Fiscal Year (FY) 2021/22 – FY 2025/26 was adopted in June 2021. It provides a five-year outlook and forecast of General Fund revenue and expenditures. The LTFP identifies future potential opportunities and challenges that the City may proactively address through the annual budget and capital improvement planning processes. x Comprehensive User Fee Study is underway. The study will consist of a thorough evaluation of City user fees and charges to determine cost recovery levels and appropriateness of the City’s fee structure.

Additionally, the study will be used as the basis to update the master fee schedule. x Capital Facility and Public Infrastructure projects are progressing according to construction scheduling, with primary focus on repairs to City streets/roadways and renovation of the joint use Wastewater Treatment Plant operated cooperatively with the City of Hercules. The City adopted a Five-Year Capital Improvement Plan on June 29, 2021 which identifies capital needs and funding for the next five years.
x Redevelopment Dissolution activities are progressing with the submission of a Long-Range Property Management Plan and annual Recognized Obligation Payment Schedules to the State Department of Finance. The City’s legal complaint against the State regarding Asset Transfers was resolved in May of 2014, based on a Court Ruling. Despite strong language from the Court regarding the unfair consequences of the adopted dissolution legislation, the Judicial Decision was not favorable to the City. In June (2014), the City Council decided that it would not appeal the Court’s decision in this matter.
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REQUESTS FOR INFORMATION
This financial report is designed to provide our residential and business community, taxpayers, customers, investors, and creditors with a general overview of the City’s finances. Questions concerning any information provided in this report or requests for additional information should be addressed to the City of Pinole, Finance Department, 2131 Pear Street, Pinole, CA 94564. Alternatively, you may send your inquiries via email to [email protected].
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BASIC

FINANCIAL STATEMENTS
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GOVERNMENT-WIDE

FINANCIAL STATEMENTS
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City of Pinole
Statement of Net Position
June 30, 2021
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments $ 17,123,487 32,462,333 $ 49,585,820 $ Accounts receivable 2,928,976 562,306 3,491,282
Prepaid items 315,552 1,089,184 1,404,736
Inventory 18,782 3,586 22,368
Land held for redevelopment 1,222,070 - 1,222,070
Due from private-purpose trust fund 2,541,575 - 2,541,575 Restricted cash - pension 19,442,495 - 19,442,495
Capital assets:

Land and construction in progress 6,908,335 - 6,908,335 Capital assets being depreciated, net 24,100,473 44,207,569 68,308,042 Total assets 62,986,132 89,940,591 152,926,723

DEFERRED OUTFLOWS OF RESOURCES
Pension related amounts 7,049,756 783,397 7,833,153
OPEB related amounts 8,602,568 955,842 9,558,410
Total deferred outflows of resources 15,652,324 1,739,239 17,391,563

LIABILITIES
Accounts Payable 1,926,606 778,199 2,704,805
Unearned revenue 297,481 - 297,481
Deposits payable 131,000 - 131,000
Long-term liabilities:

Due within one year 374,845 1,028,753 1,403,598
Due in more than one year 3,305,202 30,505,550 33,810,752 Other postemployment benefits:

Due in more than one year 41,861,011 4,651,224 46,512,235 Net pension liability:

Due in more than one year 33,027,646 3,669,717 36,697,363 Total liabilities 80,923,791 40,633,443 121,557,234

DEFERRED INFLOWS OF RESOURCES
Pension related amounts 1,441,040 160,118 1,601,158
OPEB related amounts 3,177,821 353,091 3,530,912
Total deferred inflows of resources 4,618,861 513,209 5,132,070

NET POSITION
Net investment in capital assets 31,008,808 12,783,593 43,792,401 Restricted for:

Streets & roads 2,098,148 - 2,098,148
Capital projects 3,019,807 - 3,019,807
Public safety 1,131,116 - 1,131,116
Storm sewer 1,853 - 1,853
Housing activities 7,835,512 - 7,835,512
Pension 19,442,495 - 19,442,495
Unrestricted (44,487,476) 10,795,126 (33,692,350)
Total net position $ 20,050,263 $ 23,578,719 $ 43,628,982 Primary Government
See accompanying notes to the basic financial statements. 23 215 of 369
City of Pinole
Statement of Activities
For the year ended June 30, 2021
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Primary Government:

Governmental activities:

General government $ 4,957,477 $ 686,519 $ 309,260 $ -
Public safety 15,895,381 1,440,572 430,252 -
Public services 4,541,157 74,897 1,055,543 -
Recreation 949,734 172,486 - -
Community development 1,275,333 503,324 - -
Interest and fiscal charges 331,218 - - -
Total governmental activities 27,950,300 2,877,798 1,795,055 - Business-type activities:

Wastewater utility 6,688,530 7,527,056 - -
Total business-type activities 6,688,530 7,527,056 - -
Total primary government $ 34,638,830 $ 10,404,854 $ 1,795,055 $ - General Revenues:

Taxes:

Property taxes
Sales taxes
Franchise taxes
Utility taxes
Transient occupancy taxes
Other taxes
Unrestricted motor vehicle in lieu
Gain on disposal of assets
Investment earnings
Miscellaneous
Total general revenues
Change in net position
Net position - beginning of year
Net position - end of year
Program Revenues
See accompanying notes to the basic financial statements. 24 216 of 369
Governmental Business-Type
Total Activities Activities Total
$ (3,961,698) 995,779 $ - $ (3,961,698) $
1,870,824 (14,024,557) - (14,024,557)
1,130,440 (3,410,717) - (3,410,717)
172,486 (777,248) - (777,248)
503,324 (772,009) - (772,009)
- (331,218) - (331,218)
4,672,853 (23,277,447) - (23,277,447)
7,527,056 - 838,526 838,526
7,527,056 - 838,526 838,526
$ (23,277,447) 12,199,909 838,526 (22,438,921)
4,001,411 - 4,001,411
9,114,809 - 9,114,809
751,598 - 751,598
2,329,873 - 2,329,873
446,105 - 446,105
468,987 - 468,987
2,004,884 - 2,004,884
83,209 - 83,209
3,020,587 44,259 3,064,846
270,712 - 270,712
44,259 22,492,175 22,536,434
882,785 (785,272) 97,513
22,695,934 20,835,535 43,531,469
$ 23,578,719 20,050,263 $ 43,628,982 $
and Changes in Net Position
Net (Expense) Revenue
Primary Government
25 217 of 369
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26 218 of 369
FUND

FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Funds Financial Statements
27 219 of 369
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28 220 of 369

GOVERNMENTAL FUND FINANCIAL STATEMNTS
General Fund is used for all the general revenues of the City not specifically levied or collected for other City funds, and the related expenditures. The major revenue sources for this fund are property taxes, sales taxes, utility users tax, franchise fees, business licenses, unrestricted revenues from the State, fines and forfeitures and interest income.

Expenditures are made for public safety, recreation, and the other services described above.

Housing Programs Fund receives tax increment funds through Redevelopment Property Tax Trust Funds, representing 20% set-aside for housing activities. Funds are expended for approved housing activities. 29 221 of 369
City of Pinole
Balance Sheet
Governmental Funds
June 30, 2021
Housing
Programs Non-Major
General Special Revenue Governmental
Fund Fund Funds Totals
ASSETS
Cash and investments $ 4,073,170 19,457,868 $ 8,931,295 $ 32,462,333 $ Accounts receivable 2,443,403 710 484,863 2,928,976
Due from other funds 111,110 - - 111,110
Due from private-purpose trust - 2,541,575 - 2,541,575
Prepaid items and supplies - - 315,552 315,552
Inventory 18,782 - - 18,782
Land held for redevelopment - 1,222,070 - 1,222,070
Restricted cash - Pension 19,442,495 - - 19,442,495
Total assets $ 41,473,658 $ 7,837,525 $ 9,731,710 $ 59,042,893

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities $ 2,013 1,417,029 $ 507,564 $ 1,926,606 $ Unearned revenue 53,505 - 243,976 297,481
Deposits payable 35,924 - 95,076 131,000
Due to other funds - - 111,110 111,110
Total liabilities 1,506,458 2,013 957,726 2,466,197
Fund Balances:

Nonspendable 18,782 - 315,552 334,334
Restricted 19,623,678 7,835,512 6,069,741 33,528,931
Assigned 7,836,178 - 2,526,571 10,362,749
Unassigned 12,488,562 - (137,880) 12,350,682
Total fund balances 39,967,200 7,835,512 8,773,984 56,576,696 Total liabilities, deferred inflows of
resources, and fund balances $ 7,837,525 41,473,658 $ 9,731,710 $ 59,042,893 $ Major Funds
See accompanying notes to the basic financial statements. 30 222 of 369
City of Pinole
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2021
Total Fund Balances - Total Governmental Funds $ 56,576,696 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 used in governmental activities are not financial resources and therefore are not reported in the governmental funds, net of accumulated depreciation of $64,279,558 31,008,808
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 (3,680,047)
Deferred outflows related to pension 7,049,756
Deferred outflows related to OPEB 8,602,568
Net OPEB liability (41,861,011)
Net pension liability (33,027,646)
Deferred inflows related to pension (1,441,040)
Deferred inflows related to OPEB (3,177,821)
Net Position of Governmental Activities $ 20,050,263
See accompanying notes to the basic financial statements. 31 223 of 369
Statement of Revenues, Expenditures and Changes in Fund Balances Housing
Programs Non-Major
General Special Revenue Governmental
Fund Fund Funds Totals
REVENUES:

Taxes and assessments 18,540,071 $ - $ 515,762 $ 19,055,833 $ Intergovernmental revenues 298,719 - 1,557,624 1,856,343 Loan repayments 55,197 52,715 - 107,912
Contributions - - 14,274 14,274
Investment earnings 2,861,375 7,374 19,560 2,888,309
Rents and ground leases 121,030 - 10,305 131,335
Charges for services 1,521,791 - 923,108 2,444,899
Fines, forfeitures and penalties 13,166 - 28,070 41,236 Other revenues 130,532 - 411,147 541,679
Total revenues 60,089 23,541,881 3,479,850 27,081,820
EXPENDITURES:

Current:

General government 3,876,560 - 442,944 4,319,504
Public safety 12,775,129 - 1,113,961 13,889,090
Public services 1,120,420 - 328,398 1,448,818
Recreation - - 820,918 820,918
Community development 173,504 44,092 987,604 1,205,200
Capital outlay 1,424,147 - 1,507,873 2,932,020
Debt service:

Principal 227,389 - - 227,389
Interest and fiscal charges 331,218 - - 331,218
Total expenditures 44,092 19,928,367 5,201,698 25,174,157

REVENUES OVER (UNDER)
EXPENDITURES 15,997 3,613,514 (1,721,848) 1,907,663
OTHER FINANCING SOURCES (USES):

Proceeds from sale of asset 83,209 - - 83,209
Transfers in - - 1,681,841 1,681,841
Transfers out (1,528,336) - (153,505) (1,681,841)
Total other financing sources (uses) (1,445,127) 1,528,336 - 83,209 Net change in fund balances 2,168,387 15,997 (193,512) 1,990,872 FUND BALANCES:

Beginning of year 37,798,813 7,819,515 8,967,496 54,585,824 End of year $ 39,967,200 $ 7,835,512 $ 8,773,984 $ 56,576,696 City of Pinole
Governmental Funds
For the year ended June 30, 2021
Major Funds
See accompanying notes to the basic financial statements. 32 224 of 369
City of Pinole
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities For the year ended June 30, 2021
Net Change in Fund Balances - Total Governmental Funds $ 1,990,872 Governmental funds report capital outlays as expenditures while governmental activities report depreciation expense to allocate those expenditures over the life of the assets:

Capital outlay $ 1,848,938
Gain on disposal of assets 83,209
Proceed from sale of assets (83,209)
Depreciation expense (1,614,246)
Total capital assets $ 234,692 234,692
Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position:

Bond principal payments 227,389
Some expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds:

Accrued compensated absences (75,202)
Net difference between OPEB expense and contributions subsequent at the measurement date (1,674,432)
Net difference between pension expense and contributions subsequent at the measurement date (1,488,591)
Total $ (3,238,225) (3,238,225)
Change in Net Position of Governmental Activities $ (785,272) Amounts reported for governmental activities in the Statement of Activities are different because of the following:

See accompanying notes to the basic financial statements. 33 225 of 369
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34 226 of 369

PROPRIETARY FUND FINANCIAL STATEMNTS
Wastewater Utility fund this fund accounts for wastewater utility services provided by the City and it is the City's intent that the cost of providing these services be financed primarily through user charges.
35 227 of 369
City of Pinole
Statement of Net Position
Proprietary Funds
Business-type
Activities
Wastewater Utility
Enterprise Fund
ASSETS
Current assets:

Cash and investments 17,123,487 $
Accounts receivable 562,306
Prepaid items 1,089,184
Inventory 3,586
Total current assets 18,778,563
Noncurrent assets:

Capital assets being depreciated, net 44,207,569
Total assets 62,986,132

DEFERRED OUTFLOWS OF RESOURCES
Pension and OPEB related amounts 1,739,239
Total deferred inflows of resources 1,739,239

LIABILITIES
Current liabilities:

Accounts Payable 778,199 $
Compensated absences - current 31,727
Bonds payable - current 329,000
Notes payable - current 668,026
Total current liabilities 1,806,952
Noncurrent liabilities:

Compensated absences - noncurrent 78,600
Net OPEB liability 4,651,224
Bonds payable - noncurrent 6,321,000
Notes payable - noncurrent 24,105,950
Net Pension liability 3,669,717
Total noncurrent liabilities 38,826,491
Total liabilities 40,633,443

DEFERRED INFLOWS OF RESOURCES
Pension and OPEB related amounts 513,209
Total deferred inflows of resources 513,209

NET POSITION
Net investment in capital assets 12,783,593
Unrestricted 10,795,126
Total net position $ 23,578,719
June 30, 2021
See accompanying notes to the basic financial statements. 36 228 of 369
City of Pinole
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
Business-type
Activities
Wastewater Utility
Enterprise Fund
OPERATING REVENUES:

Charges for services $ 7,527,056
Total operating revenues 7,527,056
OPERATING EXPENSES:

Sewer treatment plant 3,711,856
Sewer maintenance 1,238,765
Depreciation 1,116,577
Total operating expenses 6,067,198
OPERATING INCOME (LOSS): 1,459,858
NONOPERATING REVENUES (EXPENSES):

Interest revenue 44,259
Interest expense (621,332)
Total nonoperating revenues (expenses) (577,073)
Change in net position 882,785
NET POSITION:

Beginning of year 22,695,934
End of year $ 23,578,719
For the year ended June 30, 2021
See accompanying notes to the basic financial statements. 37 229 of 369
Business-type
Activities
Wastewater Utility
Enterprise Fund
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers $ 7,814,314
Cash paid to suppliers (4,533,991)
Cash paid to employees (1,707,321)
Net cash provided by operating activities 1,573,002

CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:

Acquisition and construction of capital assets (446,823) Principal paid on capital debt (1,000,857)
Interest paid on capital debt (621,332)
Net cash used in capital and related
financing activities (2,069,012)
CASH FLOWS FROM INVESTING ACTIVITIES:

Interest and dividends 44,259
Net cash provided by investing activities 44,259
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (451,751) CASH AND CASH EQUIVALENTS:

Beginning of year 17,575,238
End of year $ 17,123,487

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:

Operating income (loss) $ 1,459,858
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:

Depreciation 1,116,577
(Increase) decrease in assets:

Accounts receivables 287,258
Inventory 4,101
Deferred outflows of resources (708,890)
Increase (decrease) in liabilities:

Accounts payable (1,586,852)
Compensated absences (59,391)
Net OPEB liability 1,013,262
Net Pension Liability 278,276
Deferred inflows of resources (231,197)
Net cash provided by (used in) operating activities $ 1,573,002 City of Pinole
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2021
See accompanying notes to the basic financial statements. 38 230 of 369
City of Pinole
Statement of Fiduciary Net Position
Fiduciary Funds
Private-Purpose
Trust Fund
Custodial
Funds
ASSETS
Cash and cash equivalents 6,152,251 $ 163,725 $
Accounts receivable - 4,618
Notes receivable, net of allowance 233,261 -
Land held for redevelopment 3,151,254 -
Capital assets not being depreciated 2,504,793 -
Capital assets being depreciated, net 7,827,802 -
Total assets 163,725 19,873,979

LIABILITIES
Accounts payable 13,196 3,645
Deposits payable 130,285 56,238
Due to City - 2,541,575
Due to County - 18
Interest Payable 112,245 -
Bonds payable:

Due within one year 4,125,000 -
Due in more than one year 7,790,000 -
Total liabilities 14,628,721 143,481

NET POSITION
Held in trust for dissolution of RDA 5,245,258 -
Held in trust for other government - 20,244
Total net position $ 5,245,258 $ 20,244
June 30, 2021
See accompanying notes to the basic financial statements. 39 231 of 369
City of Pinole
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
Private-Purpose
Trust Fund
Custodial
Funds
ADDITIONS:

Property taxes 6,111,602 $ - $
Investment income 3,185 98
Charges for services - 79
Other revenues 12,682 -
Total additions 177 6,127,469
DEDUCTIONS:

Operating cost 352,370 -
Depreciation 260,282 -
Debt interest 275,848 -
Total Deductions - 888,500
Change in fiduciary net position 177 5,238,969
NET POSITION:

Beginning of year, as restated 6,289 20,067
End of year 5,245,258 $ 20,244 $
For the year ended June 30, 2021
See accompanying notes to the basic financial statements. 40 232 of 369

NOTES TO BASIC FINANCIAL

STATEMENTS
41 233 of 369
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42 234 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Pinole was incorporated June 25, 1903. The City is primarily a residential community located in Contra Costa County, twenty-four miles east of San Francisco on Interstate 80. The City provides the following services: public safety (police and fire), parks, streets and highways, sanitation and health services, culture-recreation, public improvements, planning and zoning, and general administration services. The City's population has remained relatively stable for some years; population at June 30, 2021 was 19,369.

The City operates under the Council-Manager form of government, with five elected Council members served by a full-time City Manager and staff. At June 30, 2021, the City's staff comprised 86 full-time and 30 part-time employees who are responsible for the following City-provided services:

Public Safety - The City employs 22 sworn and 17 non-sworn police personnel to provide round-the-clock police services from a central station, and 15 personnel to provide round-the-clock fire services from one fire station.

Sanitation and Health Service - The City maintains a sewage treatment plant with 8 employees, the plant provides wastewater treatment services to the residents of the City of Pinole and the City of Hercules.

Parks, Streets and Highways - The City builds and maintains its streets, curbs, gutters, parks and related public property with a force of 10 employees. Major projects may be contracted out to reduce costs.

Recreation, Public Improvements, Planning, Zoning, Administration - Recreation, Public Improvements, Planning, Zoning, Administration and other services are provided by a total of 44 employees.

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. The Reporting Entity
The accompanying basic financial statements present the financial activities of the City along with the financial activities of its blended component unit, which is an entity for which the City is financially accountable. Together these entities comprise the primary government for reporting purposes. Although they are separate legal entities, a blended component unit is in substance part of the City's operations and is reported as an integral part of the City's financial statements. The City's component unit, which is described below, is all blended.

City of Pinole Joint Powers Financing Authority
The Pinole Joint Powers Financing Authority (Authority) is a separate government entity whose purpose is to assist with the financing or refinancing of public capital facilities within the City. The Authority has the power to purchase bonds issued by any local agency and may sell such bonds to public or private purchasers. The Authority is controlled by the City and has the same governing body as the City, which also performs all accounting and administrative functions for the Authority. The financial activities of the Authority are included in the Wastewater Utility Fund and the Private-Purpose Trust Fund. 43 235 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued 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.

These statements require that the financial statements described below be presented.

Government-wide Financial Statements:

The Statement of Net Position and Statement of Activities display information about the reporting government as a whole. They include the activities of the overall City government except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. The statements distinguish between governmental and business-type activities of the City. The City's net position is reported in three parts - net investment in capital assets; restricted net position; and unrestricted net position. The City first utilizes restricted resources to finance qualifying activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange revenues. Business-type activities are financed in whole or in part by fees charged to external parties for goods or services.

The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and 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 for 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.

Fund Financial Statements:

The fund financial statements provide information about the City's funds, including fiduciary funds and its blended component unit. Each fund is accounted for by providing a separate set of self-balancing accounts that constitute its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues and expenditure/expenses. Funds are organized into three major categories:
governmental, proprietary, and fiduciary. An emphasis is placed on major funds within the governmental and proprietary categories with each major fund displayed in a separate column. A fund is considered major if it is the primary operating fund of the City or meets the criteria described on the following page:
44 236 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Presentation, Continued
a. Total assets and deferred outflows of resources, liabilities and deferred inflows of resources, revenues, or expenditures/expenses of that individual governmental or enterprise fund are at least 10 percent of the corresponding total for all funds of that category or type; and b. Total assets and deferred outflows of resources, liabilities and deferred inflows of resources, revenues, or expenditures/expenses of the individual governmental fund or enterprise fund are at least 5 percent of the corresponding total for all governmental and enterprise funds combined.

All remaining governmental funds are aggregated and reported as nonmajor funds in a single column, regardless of their fund type.

The funds of the financial reporting entity are described below:

Governmental Funds:

General Fund - The general fund is the general operating fund of the City and is always classified as a major fund. It is used to account for all activities except those legally or administratively required to be accounted for in other funds.

Special Revenue Funds - Special revenue funds are used to account for the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purpose other than debt service or capital projects.

Debt Service Fund - Debt service funds are used to account for financial resources that are restricted, committed, or assigned to expenditure for principal and interest.

Capital Project Funds - Capital project funds are used to account for financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets.

Proprietary Funds:

Enterprise Funds - Enterprise funds are used to account for business-like activities provided to the general public. These activities are financed primarily by user charges and the measurement of financial activity focuses on net income measurement similar to the private sector.

Fiduciary Funds (not included in government-wide statements):

Fiduciary fund financial statements consist of a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position. Fiduciary funds are accounted for using the full accrual basis of accounting. The City reports the following fiduciary funds:

Custodial Funds - Custodial Funds are clearing type funds for the collection of taxes or deposits held in trust, on behalf of individuals, private organizations, and other governments for which the City has a custodial responsibility.

Private-Purpose Trust Funds - Private purpose trust funds are used to report all other trust arrangements under which principal and income benefit individuals, private organizations, or other governments. 45 237 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Presentation, Continued
Major Funds
The City reports the following major governmental funds in the accompanying financial statements:

General Fund - This is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

Housing Programs Fund - This fund receives tax increment funds from the Successor Agency representing 20% set-aside restricted for housing activities; funds are expended for approved housing activities.

Wastewater Utility Fund - The City has one enterprise fund, which is a major fund. This fund is used to account for the collection of sewer service fees and the related cost of maintenance and repair of the sewer treatment plant.

The City also reports the following fund types:

Custodial Funds - These funds are custodial in nature and account for assets held by the City as an agent for other governmental units or individuals.

Private Purpose Trust Fund - This fund was created as a result of the State order to dissolve California Redevelopment Agencies. As a Successor Agency, this fund is used to track the activity by the Oversight Board and the State Department of Finance to dissolve the Agency. Separate audited financial statements for the Successor Agency may be obtained from the City.

C. Basis of Accounting and Measurement Focus
Measurement focus is a term used to describe "which" transactions are recorded within the various financial statements. Basis of accounting refers to "when" revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements regardless of the measurement focus applied.

Measurement Focus
On the government-wide Statement of Net Position and the Statement of Activities, both governmental and business-type activities are presented using the economic resources measurement focus as defined in item "b" below.

In the fund financial statements, the "current financial resources" measurement focus or the "economic resources" measurement focus is used as appropriate.
46 238 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C. Basis of Accounting and Measurement Focus, Continued a. All governmental funds are accounted for using a "current financial resources" measurement focus. With this measurement focus, only current assets and current liabilities generally are included on their balance sheets. Their operating statements present sources and uses of available spendable financial resources during a given period. These funds use fund balance as their measure of available spendable financial resources at the end of the period. b. The government-wide financial statements utilize an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and deferred outflows of resources and liabilities and deferred inflows of resources (whether current or noncurrent) are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned, while expenses are recognized in the period in which the liability is incurred.
c. All Fiduciary funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting.

Basis of Accounting
In the government-wide Statement of Net Position and Statement of Activities, both governmental and business-type activities are presented using the accrual basis of accounting. In addition, all fiduciary funds use the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset is used.

Revenues, expenses, gains, losses, assets and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place.

In the fund financial statements, governmental funds are presented on the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when "measurable and available". Measurable means knowing or being able to reasonably estimate the amount. Available means collectible within the current period or soon enough thereafter to pay current liabilities. The City defines available to be within 60 days of year-end. Expenditures (including capital outlay) are recorded when the related fund liability is incurred, except for general obligation bond principal and interest which are reported when due. Governmental capital asset acquisitions are reported as expenditures in governmental funds. Proceeds for governmental long-term debt and acquisitions under capital leases are reported as other financing sources.

Those revenues susceptible to accrual include taxes, intergovernmental revenues, interest and charges for services. Certain indirect costs are included in program expenses reported for individual functions and activities.
47 239 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C. Basis of Accounting and Measurement Focus, Continued Basis of Accounting, Continued
Grant revenues are recognized in the fiscal year in which all eligibility requirements are met. Under the terms of grant agreements, the City may fund certain programs with a combination of costreimbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted net position are available to finance program expenditures. The City's policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary.

All proprietary funds utilize the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset is used. Proprietary funds distinguish operating revenues and expenses from Nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary funds' principal operations. The principal operating revenues of the sewer and enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as Nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed.

D. Property Taxes
California Constitution Article XIII A, limits the combined property tax rate to one percent of a property's assessed valuation. Additional taxes may be imposed with voter approval. Assessed value is calculated at one hundred percent of a property's fair value, as defined by Article XIII A, and may be increased no more than two percent per year unless a change in ownership occurs. The state legislature has determined the method of distributing the one percent tax levy among the various taxing jurisdictions.

Property tax revenues are recognized in the fiscal year for which taxes and assessments are 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 and handles all delinquencies, retaining interest and penalties.

Tax collections are the responsibility of the County Tax Collector. Taxes and assessments on secured and utility rolls which constitute a lien against the property, may be paid in two installments; the first is due November 1 of the fiscal year and is delinquent if not paid by December 10; and the second is due on February 1 of the fiscal year and is delinquent if not paid by April 10. Unsecured personal property taxes do not constitute a lien against real property unless the tax becomes delinquent. Payment must be made in one installment, which is delinquent if not paid by August 31 of the fiscal year. Significant penalties are imposed by the County for late payment.

Tax levy dates are attached annually on January 1 preceding the fiscal year for which the taxes are levied.

The fiscal year begins July 1 and ends June 30 of the following year. Taxes are levied on both real and unsecured and personal property, as it exists at that time. Liens against real estate, as well as the tax on personal property, are not relieved by subsequent renewal or change in ownership. 48 240 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued E. Cash and Investments
The City pools the cash of all funds, except for monies deposited with fiscal agents in accordance with related bond indentures. The cash and investments balance in each fund represents that fund's equity share of the City's cash and investment pool. As the City places no restrictions on the deposit or withdrawal of a particular fund's equity in the pool, the pool operates like a demand deposit account for the participating funds.

Interest income earned on pooled cash and investments is allocated quarterly to the various funds based on month-end balances and is adjusted at fiscal year-end. Interest income on restricted cash and investments with fiscal agents is credited directly to the related funds.

The City's investments are carried at fair value. The fair value of equity and debt securities is determined based on sales prices or bid-and-asked quotations from SEC-registered securities exchanges or NASDAQ dealers. LAIF determines the fair value of their portfolio quarterly and reports a factor to the City; the City applies that factor to convert its share of LAIF from amortized cost to fair value. This amount is included in cash and cash equivalents in the balance sheet of the governmental funds. Changes in fair value are allocated to each participating fund.

For purposes of the statement of cash flows, the City has defined cash and cash equivalents to be change and petty cash funds, equity in the City's cash and investment pool, and restricted non-pooled investments with initial maturities of three months or less.

F. Accounts and Interest Receivable
In the government-wide statements, receivables consist of all revenues earned at year-end and not yet received. Receivables are recorded in the financial statements net of any allowance for doubtful accounts if applicable, and estimated refunds due. Major receivable balances for the governmental activities include sales and use taxes, franchise taxes, grants, police fines and other fees. Federal and state grants are considered receivable and accrue as revenue when reimbursable costs are incurred. Business-type activities report utilities and interest earnings as their major receivables.

In the fund financial statements, material receivables in governmental funds include revenue accruals such as sales tax, franchise tax, and grants and other similar intergovernmental revenues since they are usually both measurable and available. Nonexchange transactions collectible but not available are recorded as deferred inflows of resources in the fund financial statements in accordance with modified accrual, but not in the government-wide financial statements in accordance with the accrual basis. Interest and investment earnings are recorded when earned only if paid within 60 days since they would be considered both measurable and available. Long-term loans in governmental funds are treated as expenditures in the year advanced and as revenues in the year repayment is measurable and available.

Proprietary fund material receivables consist of all revenues earned at year-end and not yet received.

Utility accounts receivable and interest earnings compose the majority of proprietary fund receivables. 49 241 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued G. Prepaid Expenses and Inventory
Inventories are stated at cost (average cost per unit) for governmental and proprietary funds. Supplies of the General Fund consist of expendable supplies held for consumption. The cost is recorded as an expenditure/expense in the General Fund at the time individual items are consumed, rather than purchased. Inventories of governmental funds are offset by nonspendable fund balance to indicate they do not constitute resources available for future appropriation. Enterprise Fund supplies consist primarily of items held for internal use.

Prepaid items are also recognized under the consumption method. Payments to vendors that reflect costs applicable to future accounting periods are recorded as prepaid items in both government-wide and fund financial statements.

H. Capital Assets
The accounting treatment over property, plant and equipment depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the government-wide or fund financial statements.

Government-wide Statements:

In the government-wide financial statements, capital assets with a historical cost over $5,000 are accounted for as capital assets. All capital assets are valued at historical cost, or estimated historical cost if actual is unavailable. Contributed capital assets are valued at their estimated fair market value on the date contributed. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition value on the date donated.

Depreciation is provided using the straight line method which means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated. 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 of all exhaustible capital assets is recorded as an allocated expense in the Statement of Activities, while accumulated depreciation is reflected in the Statement of Net Position. The City has assigned the useful lives listed below to capital assets:

Buildings 50 years
Equipment 5-10 years
Vehicles 5-10 years
Streets and roads 50 years
Bridges 75 years
Street drainage 100 years
Parks 70 years
Wastewater infrastructure 50 years
50 242 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued H. Capital Assets, Continued
Fund Financial Statements
In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for the same as in the government-wide statements.

I. Long Term Liabilities
In the government-wide financial statements and the proprietary fund types in the fund financial statements, long-term liabilities, and other long term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Initial issue bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. The difference between the reacquisition price of refunding bonds and the net carrying amount of refunded debt (deferred amount on refunding) is amortized over the shorter of the lives of the refunding debt or remaining life of the refunded debt. Bond issuance costs, except for insurance, are expensed in the period incurred. Amortization of bond premiums or discounts, insurance costs, and deferred amounts on refunding is included in interest expense.

In the fund financial statements, governmental fund types recognize bond premiums, discounts, and issuance costs during the period issued. The face amount of debt issued is reported as other financing sources. Premiums received are reported as other financing sources, while discounts are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

J. Compensated Absences
Compensated absences comprise unused vacation leave and compensatory time off, which are accrued as earned. The City's liability for compensated absences is recorded in the government-wide Statement of Net Position for governmental funds and the Statement of Net Position for proprietary funds as appropriate. A liability is calculated for all the costs of compensated absences based upon benefits earned by employees in the current period for which there is a probability of payment at termination. The salary and related payroll costs are those in effect at June 30, 2021. The amount of accrued sick pay is not due upon termination and therefore is not recorded as a liability for the City. The liability for compensated absences is determined annually.

K. Deferred Outflows/Inflows of Resources
In addition to assets, the Statement of Net Position or balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position or fund balance that applies to future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. 51 243 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued K. Deferred Outflows/Inflows of Resources, Continued
In addition to liabilities, the Statement of Net Position or balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position 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.

L. Pension
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City's California Public Employees' Retirement System (CalPERS) plan (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 CalPERS.

For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

M. Other Postemployment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense have been determined on the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms.

Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:

Valuation Date June 30, 2019
Measurement Date June 30, 2020
Measurement Period July 1, 2019 to June 30, 2020
N. Interfund Transactions
Interfund transactions are reflected as either loans, services provided, reimbursements, or transfers. Loans are reported as receivables and payables as appropriate and are subject to elimination upon consolidation and are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as "internal balances". Advances between funds, as reported in the fund financial statements, are offset by a nonspendable fund balance account in applicable governmental funds to indicate that they are not available for appropriation and are not available financial resources.

Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund, and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or proprietary funds are netted as part of the reconciliation to the government-wide presentation.
52 244 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued O. Net Position and Fund Equity
Government-wide Statements
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 categories. These categories apply only to net position, which is determined at the government-wide level, and are described below:
a. Net investment in capital assets - Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction, or improvement of those assets.
b. Restricted net position - Consists of net position with constraints placed on the use either by (1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments; or (2) law through constitutional provisions or enabling legislation. c. Unrestricted net position - All other net position that do not meet the definition of "restricted" or "net investment in capital assets".

Fund Statements
The governmental fund financial statements present fund balances based on classifications that comprise a hierarchy that is based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the respective governmental funds can be spent. The classifications used in the governmental fund financial statements are as follows:
a. Nonspendable - Amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. b. Restricted - Amounts that are restricted for specific purposes when constraints placed on the use of resources are either (a) externally imposed by creditors, grantors, contributors, laws, or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation.
c. Committed - Amounts that can only be used for specific purposes pursuant to constraints imposed by formal action (Resolution) of the government's highest level of decision-making authority (City Council).
d. Assigned - Amounts that are constrained by the government's intent to be used for specific purposes but are neither restricted nor committed. Pursuant to City Council Resolution 2011-71, the designation of assignments of fund balance is determined by the City Manager. e. Unassigned - Amounts representing the residual classification for the general fund and residual negative fund balance of special revenue and capital project funds.

Further detail about the City's fund balance classification is described in Note 11. 53 245 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued P. Grant Funding
Under the terms of grant agreements, the City funds certain programs by a combination of specific costreimbursement grants, categorical block grants, and general revenues. Thus, when program expenses are incurred, there are both restricted and unrestricted net position available to finance the program. The City's policy is to first apply cost-reimbursement grant resources to such programs, followed by general revenues.

Q. Revenues for Enterprise Activities
Operating revenues for proprietary funds are those that result from providing services and producing and delivering goods and/or services. It also includes all revenue not related to capital and related financing, noncapital financing or investing activities.

R. Deferred Compensation
City employees may defer a portion of their compensation under a City sponsored Deferred Compensation Plan created in accordance with Internal Revenue Code Section 457. Under these Plans, participants are not taxed on the deferred portion of their compensation until distributed to them; distributions may be made only at termination, retirement, death or in an emergency as defined by the Plan.

The laws governing deferred compensation plan assets require plan assets to be held by a trust for the exclusive benefit of plan participants and their beneficiaries. Since the assets held under these plans are not the City's property and are not subject to City control, they have been excluded from these financial statements.

S. Use of Estimates
The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from these estimates.

T. Implementation of Governmental Accounting Standards Board (GASB) Pronouncements In 2021, the City adopted new accounting standards in order to conform to the following Governmental Accounting Standards Board Statements:

GASB Statement No. 84 – Fiduciary Activities – The objective of this statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. The City restated its beginning net position of the custodial funds as part of implementation of this statement.
54 246 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued T. Implementation of Governmental Accounting Standards Board (GASB) Pronouncements, Continued GASB Statement No. 90 – Majority Equity Interests – The primary objectives of this Statement are to improve the consistency and comparability of reporting a government’s majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units. It defines a majority equity interest and specifies that a majority equity interest in a legal separate organization should be reported as an investment if a government’s holding of the equity interest that meets the definition of an investment should be measured using the equity method, unless it is held by a special purpose government engaged only in fiduciary activities, a fiduciary fund, or an endowment (including permanent and term endowments) or permanent fund. Those governments and funds should measure the majority equity interest at fair value. The requirements of this statement did not apply to the City for the current fiscal year.

GASB Statement No. 93 – Interbank Offered Rates (except LIBOR removal and lease modifications) – Some governments have entered into agreements in which variable payments made or received depend on an interbank offered rate (IBOR) –most notably, the London Interbank Offered Rate (LIBOR). As a result of global reference rate reform, LIBOR is expected to cease to exist in its current form at the end of 2021, prompting governments to amend or replace financial instruments for the purpose of replacing LIBOR with other reference rates, by either changing the reference rate or adding or changing fallback provisions related to the reference rate. GASB Statement No. 53, Accounting and Financial Reporting for Derivative Instruments, as amended, requires a government to terminate hedge accounting when it renegotiates or amends a critical term of a hedging derivative instrument, such as the reference rate of a hedging derivative instrument’s variable payment. In addition, in accordance with GASB Statement No. 87, Leases, as amended, replacement of the rate on which variable payments depend in a lease contract would require a government to apply the provisions for lease modifications, including remeasurement of the lease liability or lease receivable. The objective of GASB Statement No. 93 is to address those and other accounting and financial reporting implications that result from the replacement of an IBOR. The requirements of this statement did not apply to the City for the current fiscal year.

GASB Statement No. 98 – The Annual Comprehensive Financial Report – This statement establishes the term annual comprehensive financial report and its acronym ACFR. That new term and acronym replace instances of comprehensive annual financial report and its acronym in the generally accepted accounting principles for state and local governments. The City has elected to early implement the provisions of this Statement during the current fiscal year and duly changed its report titles.

2. CASH AND INVESTMENTS
The City maintains a cash and investment pool for all funds. Certain restricted funds that are held and invested by independent outside custodians through contractual agreements are not pooled. These restricted funds include cash and investment held by trustees. 55 247 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

2. CASH AND INVESTMENTS, Continued
A. Summary of Cash and Investments
Cash and investments as of June 30, 2021 were classified in the accompanying financial statements as follows:

Cash and investments were carried at fair value as of June 30, 2021 and consisted of the following:

B. Deposits
The carrying amount of the City’s cash deposit was $2,634,843 at June 30, 2021. Balance before reconciling amounts were a positive amount of $2,536,912 at June 30, 2021. The City has waived collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The remaining amount was collateralized with securities pledged by the pledging financial institution in the City’s name.

The California Government Code (Code) requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. The Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name.

The market value of pledged securities must equal at least 110% of the City’s cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits.
56 248 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

2. CASH AND INVESTMENTS, Continued
B. Deposits, Continued
The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated to the various funds based on the period-end cash and investment balances.

Interest income from cash and investments with fiscal agents is credited directly to the related fund.

C. Investments Authorized by the California Government Code and the City's Investment Policy Investments are reported at fair value. California statutes authorize Cities to invest idle or surplus funds in a variety of credit instruments as provided for in the California Government Code, Section 53600, Chapter 4 – Financial Affairs. The table below identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restricted) that address interest rate risk, credit risk, and concentration of credit risk. The table does not address investments of debt proceeds held by the bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy. The City’s permissible investments described on the following page. 57 249 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

2. CASH AND INVESTMENTS, Continued
C. Investments Authorized by the California Government Code and the City's Investment Policy, Continued D. Investments Authorized by Debt Agreements
Investment of debt issuances held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy.

The table below identifies the investment types that are authorized by bond trustees. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.
58 250 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

2. CASH AND INVESTMENTS, Continued
E. Investment Valuation
Investments (except money market accounts that are included as part of restricted cash and investments) are measured at fair value on a recurring basis. Recurring fair value measurements are those that GASB Statements require or permit in the statement of net position at the end of each reporting period. Fair value measurements are categorized based on the valuation inputs used to measure an asset’s fair value.

Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. Investments’ fair value measurements are as follows at June 30, 2021:

Level 2 inputs are valued based on matrix pricing which use observable market inputs such as yield curves and market indices that are derived principally from or corroborated by observable market data by correlation to other means.

F. Disclosure Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City's interest rate risk is mitigated is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. 59 251 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

2. CASH AND INVESTMENTS, Continued
F. Disclosure Relating to Interest Rate Risk, Continued The sensitivity of the fair values of the City's investments (including investments held by bond trustees) to market rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity as of June 30, 2021:

G. Disclosures Relating to Credit Risk
Generally, 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 minimum rating required by (where applicable) the California Government Code or debt agreements, and the actual rating as of the fiscal year for each investment type. 60 252 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

2. CASH AND INVESTMENTS, Continued
H. Disclosures Relating to Credit Risk
Concentration of Credit Risk - The City complies with the limitations on the amount that can be invested in any one issuer as stipulated by the California Government Code. There were no investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of total City investments at June 30, 2021.

Custodial Credit Risk – Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g. broker-dealer) to a transaction, a government will not be able to recover the value for its investment or collateral securities that are in the possession of another party.

I. Investment in State and County Investment Pools
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California.

The City’s investments with LAIF at June 30, 2021 and 2020, include a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments include the following:

Structured Notes – are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or have embedded forwards or options.

Asset-Backed Securities – the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables.

As of June 30, 2021, the City had $29,440,298 invested in LAIF, which had invested 2.31% of the pool investment funds in Structured Notes and Asset-Backed Securities as compared to 3.37% in the previous year. The LAIF fair value factor of 1.00008297 was used to calculate the fair value of the investments in LAIF.

Interest income from pooled investments is allocated to those funds which are required by law or administrative action to receive interest. Interest is allocated quarterly based on the average ending cash balances for the previous three months in each fund receiving interest.

3. NOTES AND LOANS RECEIVABLE
The City engages in programs designed to encourage construction or improvement in low-to-moderate income housing or other projects. Under these programs, grants or loans are provided under favorable terms to businesses, homeowners or developers who agree to spend these funds in accordance with the City's terms.
61 253 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

3. NOTES AND LOANS RECEIVABLE, Continued
These notes and loans receivable, including interest, comprised of the following at June 30, 2021 and are explained in detail below:

A. Housing Rehabilitation
The City has provided loans to various homeowners for rehabilitation of property. These loans are secured by second deeds of trust on the property and have a range of interest rates from 2% to 6% with a maximum fifteen-year term. The balance of these notes receivable totaled $33,673 at June 30, 2021.

B. First Time Home-Buyer
In 1995, the City implemented a first time homebuyer program designed to encourage home ownership among low-income persons by providing down payment assistance. Under this program, loans are provided at no interest and are due upon sale or transfer of the property, refinance or payoff of the first mortgage, recordation of a third mortgage or default of the first mortgage. At the time of the loan repayment, the City shares in equity appreciation based on the City's loan share of the original purchase price. The balance of the notes receivable arising from this program at June 30, 2021 was $268,095.

C. Bridge Housing
The Agency assisted Bridge Housing Corporation with its acquisition and development of the Pinole Grove Senior Housing Project by providing $900,000 in the form of land and cash in return for a note bearing simple interest at a rate of 3% per year, secured by a deed of trust on the Project.

Principal and interest are due annually but are payable only from surplus cash flow as defined in the note.

The Project is not expected to generate a surplus cash flow and under the terms of the note, any unpaid principal and interest remaining at the expiration of the note in the year 2024 will be forgiven if Bridge Housing maintains the affordability of the project for an additional nineteen years. As of June 30, 2021, the outstanding balance was $1,024,514.

D. Alvarez Court
In August 2000, the City approved a loan of up to $609,000 to assist the Resources for Community Development with the development of a housing project for persons with disabilities. In August 2002 the City amended the loan agreement, increasing the loan amount to $988,000. The term of the loan is 40 years from the date of final closing by Housing and Urban Development, bearing a simple interest at a rate of 4% and is secured by first deed of trust. As of June 30, 2021, the total outstanding balance was $1,772,978. 62 254 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

3. NOTES AND LOANS RECEIVABLE, Continued
E. Eastbluff Apartments
In 1996, the Pinole Redevelopment Agency assisted Eastbluff Associates with its development of the Eastbluff Apartments by providing $975,000 in exchange for a note. The note was renegotiated in April 2016 and is secured by a deed of trust. The note bears an annual compound interest rate of 2.25% for a term of 55 years or until full repayment of the principal balance of the loan. Payments are the greater of $63,375 per year or 50% of the surplus cash flow as defined in the terms of the Note. As of June 30, 2021, the outstanding balance was $1,095,849.

F. Allowance for Doubtful Notes
The City has several programs under which it extends loans to qualifying individuals or groups for the purpose of improving the City's housing stock and/or its supply of low-and-moderate income housing.

Some of these loans provide for the eventual forgiveness of the loan balance if the borrower complies with all the terms of the loan over its full term. The City has provided a 100% allowance for all notes receivable subject to long-term deferral and/or payment from future refinancing as well as all notes receivable having subordination provisions, except for those accounts that have current payment activity and are not delinquent at June 30, 2021.

4. LAND HELD FOR HOUSING
At June 30, 2021, the City held the following properties for resale or redevelopment with a total value of $1,222,070:
811 San Pablo Avenue
612 Tennent Avenue
2100/2150 San Pablo Avenue
63 255 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

5. CAPITAL ASSETS
Capital asset activity for the fiscal year ended June 30, 2021 was as follows:
64 256 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

5. CAPITAL ASSETS, Continued

6. ADVANCES TO/ADVANCES FROM PRIVATE-PURPOSE TRUST FUND On May 6, 2008 the City Council and former Pinole Redevelopment Agency approved a resolution for the former Pinole Redevelopment Agency to advance the City $2,500,000 to provide sufficient working capital to address the structural deficit in the City's General Fund. The terms of the advance, as amended in April of 2011, provide for the payment of interest at the rate of 3.8% over 15 years and additional oneyear deferral of commencement of payments to fiscal year 2014. The agreement terms allow for a capitalized interest payment deferral period of three years followed by amortization of the principal and interest in equal annual payments of $263,300 for the succeeding twelve years. As of June 30, 2021 the balance outstanding on the advance was $0.

An advance of $2,541,575 from the Housing Program Fund was to assist the Successor Agency with administrative, operation, program cost, repay SERAF payments (2009-10 and 2010-11) to the State of California funded by Housing Set Aside Fund.
65 257 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

7. LONG-TERM LIABILITIES
A. Governmental Activities
The following is a summary of changes in the City's long-term liabilities related to governmental activities for the fiscal year ended June 30, 2021:

A description of the long-term liabilities related to governmental activities at June 30, 2021 follows:

Pension Obligation Bonds
In June 2006 the City authorized the issuance of $16,800,000 of 2006 Series A-1 and A-2 Bonds. The Taxable Pension Obligation Bonds in the aggregate principal of $6,214,630 were issued to finance the City's unfunded accrued actuarial liability with CalPERS. Repayment on the Bonds will be from General Fund revenues Non voter-approved debt. Principal payments are due annually in June until 2036. Future debt service payments are as follows:

Compensated Absences
Compensated absences comprise unused vacation leave and compensatory time off, which are accrued as earned. No compensation is payable for sick leave. The City's liability for compensated absences is recorded in various governmental funds as appropriate. The liability for compensated absences is determined annually.
66 258 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

7. LONG-TERM LIABILITIES, Continued
A. Governmental Activities, Continued
The net changes of the long-term portion of accrued vacation and sick leave liabilities are allocated among departments on the statement of activities as follows:

The following funds have been used to liquidate compensated absences:

A - General Fund B - Non-Major Funds
B. Business-type Activities
The following is a summary of changes in the City's long-term liabilities related to business-type activities for the fiscal year ended June 30, 2021.
67 259 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

7. LONG-TERM LIABILITIES, Continued
A description of the long-term liabilities related to business-type activities at June 30, 2021 is as follows:
2016 Wastewater Revenue Refunding Bonds
On June 30, 2016, the City of Pinole issued an $8,251,000 2016 Wastewater Revenue Refunding Bond (Bank Qualified) to redeem its 2006 Wastewater Revenue Bonds. The bonds bear annual interest at 2.95% which is payable semi-annually on March 1 and September 1 of each year through 2036. Principal payments are due annually beginning on September 1, 2016 through 2036. The bond is secured with pledged net wastewater revenues. Future debt service payments are as follows:

Principal Interest
2022 329,000 $ 191,322 $
2023 341,000 181,440
2024 347,000 171,292
2025 362,000 160,834
2026 372,000 150,008
2027-2031 2,025,000 576,710
2032-2036 2,357,000 254,157
2037 517,000 7,626
Total $ 6,650,000 $ 1,693,390
Due within one year $ 329,000 $ 191,322
Due after one year 6,321,000 1,502,068
Total $ 6,650,000 $ 1,693,390
Year Ending
June 30,
2016 Wastewater Revenue
68 260 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

7. LONG-TERM LIABILITIES, Continued
B. Business-type Activities, Continued
2016 Clean Water State Revolving Fund
In May 2016, the City entered into a loan agreement with the State of California Water Resources Control Board to provide funding for its 50% share of upgrades to the Pinole-Hercules Wastewater Pollution Control Plant to achieve compliance with Regional Water Quality Board NPDES. Funds are drawn on the agreement as work is completed up to a maximum amount of $26.7 million plus any construction period interest. The loan accrues interest at a rate of 1.7 percent annually. Annual principal payments are due each July 1, commencing July 1, 2020. Final payment is due July 2049. Net revenues, defined as all sewer enterprise fund revenues less operations and maintenance costs (excluding depreciation and amortization expenses), is pledged for future debt service. As of June 30, 2021, the total debt outstanding on the loan is $24,773,976. The table below includes future debt service requirements related to this amount.

Compensated Absences
Compensated absences comprise unused vacation leave and compensatory time off, which are accrued as earned. No compensation is payable for sick leave. The City's liability for compensated absences is recorded in various governmental funds and proprietary funds as appropriate. The liability for compensated absences is determined annually.

Compensated absences for proprietary fund will be paid by the respective fund in which the expense was accrued. The activities for the year ended June 30, 2021 are as follows:
69 261 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

8. INTERFUND TRANSACTIONS
A. Interfund Transfers to/from Other Funds
Transfers between funds during the fiscal year ended June 30, 2021 were as follows:

Inter-fund transfers are not presented on the Statement of Revenues, Expenditures, and Changes in Fund Balance for the governmental funds as they are presented on a net basis.

9. DEFINED BENEFIT PENSION PLAN
A. General Information about the Pension Plans
Plan Description - All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS.) The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other). Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools.

Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors five rate plans (two miscellaneous and three 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 (age 52 for Miscellaneous Plan members if membership date is on or after January 1, 2013) with statutorily reduced benefits. All members are eligible for non- duty disability benefits after 5 years of service. The death benefit is one of the following: the Special Death Benefit (Safety only), 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.
70 262 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

9. DEFINED BENEFIT PENSION PLAN, Continued
A. General Information about the Pension Plans, Continued The rate plan provisions and benefits in effect for the year ended June 30, 2021, are summarized as follows:

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.

The City’s contribution to the Plan for the measurement period ended June 30, 2020 were $3,367,332. 71 263 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

9. DEFINED BENEFIT PENSION PLAN, Continued
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2021, the City reported net pension liability for its proportionate share of the net pension liability of the Plan of $36,697,363.

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, 2018, 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, 2018 rolled forward to June 30, 2019 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, 2019 and 2020 was as follows:

Proportion - June 30, 2019 0.33097 %
Proportion - June 30, 2020 0.33728 %
Change - Increase (Decrease) 0.00631 %
For the year ended June 30, 2021, the City recognized pension expense of $5,443,139. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
$3,789,111 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, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
72 264 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

9. DEFINED BENEFIT PENSION PLAN, Continued
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
Actuarial Assumptions- The total pension liabilities for the measurement date June 30, 2020 were determined using the following actuarial assumptions:

Changes in Assumptions - There were no changes of assumptions during the measurement period ended June 30, 2020. Deferred inflows of resources for changes in assumptions presented in the deferred outflows/inflows table above represents the portion of the changes of assumptions related to prior measurement periods.

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

The long-term expected rate of return on pension plan investments was determined using a buildingblock 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. 73 265 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

9. DEFINED BENEFIT PENSION PLAN, Continued
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
In determining the long-term expected rate of return, staff took into account both short-term and longterm market return expectations as well as the expected pension fund (Public Employees’ Retirement Fund) cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.

The table on the next page reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses. 74 266 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

9. DEFINED BENEFIT PENSION PLAN, Continued
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
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:

Pension Plan Fiduciary Net Position - Detailed information about the pension plan's fiduciary net position is available in the separately issued CalPERS financial reports.

Payables to the Pension Plan - At June 30, 2021, the City reported $0 for outstanding amounts of contributions for the CalPERS Cost Sharing Multiple-Employer Plan.

10. OTHER POST EMPLOYMENT BENEFITS (OPEB)
A. Description of the Plan
The City sponsors and administers a single-employer health care plan for its employees. The plan includes healthcare coverage to long-service retirees. At retirement, City employees can elect Blue Shield, Kaiser, PERS Care, or PERS Choice medical coverage through the City at the City's expense. As the City's OPEB benefits are administered by City personnel, no separate financial statements are issued.

B. Employees Covered
The City currently pays health insurance premiums of $2,028 per month per family. For the year ended June 30, 2021, the City had 105 retired employees. The City currently has 100 active employees who may become eligible to retire and receive benefits in the future. Eligibility requirements include retirement directly from the City under CalPERS at age 55 years CalPERS service or disability. 75 267 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

10. OTHER POST EMPLOYMENT BENEFITS (OPEB), Continued
C. Contributions
Employees hired before July 1, 2010 receive a City contribution toward their retiree health premium equal to that provided to current active employees. Employees shall be offered the option to opt into the vesting program as soon after the program implementation as allowed per CalPERS regulations.

Employees hired on or after July 1, 2010 receive a City contribution toward their retiree health premium in an amount as described by Government Code Section 22893 (the PERS vesting schedule). Government Code Section 22893 currently reads that the percentage of employer contribution payable for postretirement health benefits for an employee of a contracting agency subject to this section shall, except as provided in subdivision (b) be based on the member's completed years of credited state service at retirement as shown in the following table:

D. Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2020, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2019. The total OPEB liability in the June 30, 2019 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement date. 76 268 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

10. OTHER POST EMPLOYMENT BENEFITS (OPEB), Continued
E. Discount Rate
The discount rate used to measure the total OPEB liability was 3.50%. The City’s OPEB Plan is an unfunded plan, therefore the discount rate was set to the rate of tax-exempt, high quality 20-year municipal bonds, as of the valuation date.

F. Changes in the Total OPEB Liability
Sensitivity of the Total OPEB liability to Changes in the Discount Rate – The following presents the total OPEB liability of the City for the Plan, calculated using the discount rate for the Plan, as well as what the City’s total OPEB 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:
77 269 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

10. OTHER POST EMPLOYMENT BENEFITS (OPEB), Continued
F. Changes in the Total OPEB Liability, Continued
Sensitivity of the Total OPEB liability to Changes in the Healthcare Cost Trend Rate – The following presents the total OPEB liability of the City for the Plan, calculated using the healthcare cost trend rate for the Plan, as well as what the City’s total OPEB liability would be if it were calculated using a healthcare cost trend rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

G. Recognition of Deferred Outflows and Deferred Inflows of Resources Gains and losses related to changes in total OPEB liability are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The recognition period differs depending on the source of the gain or loss:

H. OPEB Expenses and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2021, the City recognized OPEB expense of $3,122,046. For the fiscal year ended June 30, 2021, the City reported deferred outflows of resources related to OPEB from the following sources:
78 270 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

10. OTHER POST EMPLOYMENT BENEFITS (OPEB), Continued
H. OPEB Expenses and Deferred Outflows/Inflows of Resources Related to OPEB, Continued The $1,261,566 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2020 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2022. Other amounts reported as deferred inflows of resources related to OPEB will be recognized as expense as follows:

11. FUND BALANCE
GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions provides more clearly defined fund balance categories to make the nature and extent of the constraints placed on a government’s fund balances more transparent.

The City of Pinole has established the following fund balance policies:

Committed Fund Balance: Only the City Council may have the authority to create or change a fund balance commitment. Commitments may be changed or lifted only by the City Council taking the same formal action that imposed the constraint originally.

Assigned Fund Balance: Amounts that are constrained by the City's intent to be used for specific purposes, but are neither restricted nor committed, should be reported as assigned fund balance. The policy hereby delegates the authority to assign amounts to be used for specific purposes to the City Manager and the Finance Director for the purpose of reporting these amounts in the annual financial statements.

The accounting policies of the City consider restricted fund balance to have been spent first when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available.

Similarly, when an expenditure is incurred for purposes for which amounts in any of the unrestricted classifications of fund balance could be used, the City considers committed amounts to be reduced first, followed by assigned amounts, and unassigned amounts.
79 271 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

11. FUND BALANCE, Continued
As of June 30, 2021, fund balances consisted of the following:
80 272 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

12. RISK MANAGEMENT
The City manages risk of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters by participating in the public entity risk pools described below and by retaining certain risks.

Public entity risk pools are formally organized and separate entities established under the Joint Exercise of Powers Act of the State of California which exercise full powers and authorities within the scope of the related Joint Powers Agreements including the preparation of annual budgets, accountability for all funds, the power to make and execute contracts and the right to sue and be sued. Each risk pool is governed by a board consisting of representatives from member municipalities. Each board controls the operations of the respective risk pool, including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on that board. Obligations and liabilities of these risk pools are not the member's responsibility.

Risk Coverage - The City is a member of the Municipal Pooling Authority of Northern California (MPA).

MPA provides coverage against the following types of loss risks under terms of joint-powers agreement with the City and several other cities and governmental agencies as follows:

The MPA is governed by a Board consisting of representatives from member municipalities. The Board controls the operations of the MPA, 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 MPA are in accordance with formulas established by the MPA. 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.

During the fiscal year ended June 30, 2021, the City contributed $1,084,929 for coverage.

Financial statements may be obtained from Municipal Pooling Authority of Northern California, 1911 San Miguel Drive, Suite 200, Walnut Creek, CA 94596.

13. DEFICIT FUND BALANCES AND NET POSITION
As of June 30, 2021, the following funds had a fund deficit:
81 273 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

14. SUCCESSOR AGENCY PRIVATE PURPOSE TRUST FOR ASSETS OF FORMER

REDEVELOPMENT AGENCY
The Pinole Redevelopment Agency (the "former RDA") was formed in 1972 to finance redevelopment projects in the Agency of Pinole pursuant to the State of California Health and Safety Code, Section 3300.

On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 that provided for the dissolution of all redevelopment agencies in the State of California as of February 1, 2012, at which time the City of Pinole elected to take over as the Successor Agency (the "Agency").

The asset and liabilities of the former RDA were transferred to the Successor Agency on February 1, 2012 as a result of the dissolution. The Successor Agency acts in a fiduciary capacity to wind down affairs of the former RDA which includes disposing of the assets and liabilities, and its activities are reported in the fiduciary private-purpose trust fund.

A. Capital Assets
Capital asset activity for the fiscal year ended June 30, 2021 was as follows:
82 274 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

14. SUCCESSOR AGENCY PRIVATE PURPOSE TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY, Continued
B. Long-term Liabilities
The following is a summary of changes in the Agency's long-term liabilities related to governmental activities for the fiscal year ended June 30, 2021:

A description of the long-term liabilities related to fiduciary activities at June 30, 2021 follows:

Bonds Payable
On August 6, 2015, the Successor Agency to the Pinole Redevelopment Agency issued $29,735,000 of tax allocation refunding bonds to redeem bonds held by the former Pinole Redevelopment Agency (1998A, 1998B, 1999, 2003A, 2003B, 2004 (Housing), 2004B (2nd Subordinate), 2004A (2nd Subordinate), 2004A (3rd Subordinate). The 2015A Tax Allocation Refunding Bond (Tax-Exempt) in the amount of $19,810,000 bears an interest rate of 2.270% which is payable semi-annually on February 1 and August 1 of each year through 2023. Principal payments are due annually on August 1 through 2023. The 2015B Tax Allocation Refunding Bond (Taxable) bears an interest rate of 2.340% which is payable semi-annually on February 1 and August 1 of each year through 2020. Principal payments are due annually on August 1 through 2020. 2015 Series A Tax Allocation Bond
Debt service requirements are shown below for bonds payable long-term debt:

15. CONTINGENCIES AND COMMITMENTS
The City is subject to litigation arising in the normal course of business. In the opinion of the City Attorney there is no pending litigation which is likely to have a material adverse effect on the financial position of the City.

Grant Awards - The City participates in certain Federal and State assisted grant programs. These programs are subject to program compliance audits by the grantors or their representatives. Any liability for reimbursement which may arise as the result of these audits is not believed to be material. 83 275 of 369
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2021

16. PRIOR PERIOD ADJUSTMENTS
The City record period adjustments to update the beginning fiduciary net position balance of the custodial funds as part of implementation of GASB Statement No. 84. 84 276 of 369

REQUIRED

SUPPLEMENTARY INFORMATION
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86 278 of 369
City of Pinole
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes and assessments 16,580,489 $ 17,666,472 $ 18,540,071 $ 873,599 $ Intergovernmental revenues 92,026 592,657 298,719 (293,938) Loan repayments - 55,197 55,197 -
Investment earnings 150,000 150,000 2,861,375 2,711,375 Rents and ground leases 126,712 126,712 121,030 (5,682) Charges for services 1,456,290 1,456,290 1,521,791 65,501 Fines, forfeitures and penalties 36,050 36,050 13,166 (22,884) Other revenues 23,100 89,774 130,532 40,758
Total revenues 20,173,152 18,464,667 23,541,881 3,368,729 EXPENDITURES:

Current:

General administration 3,453,266 3,881,366 3,876,560 4,806 Public safety 13,339,707 13,691,507 12,775,129 916,378
Public works 1,167,301 1,167,301 1,120,420 46,881
Community development 227,201 227,201 173,504 53,697
Capital outlay 3,280,472 3,688,048 1,424,147 2,263,901
Debt service:

Principal 227,389 227,389 227,389 -
Interest and fiscal charges 327,611 328,718 331,218 (2,500) Total expenditures 23,211,530 22,022,947 19,928,367 3,283,163 REVENUES OVER (UNDER) EXPENDITURES (3,038,378) (3,558,280) 3,613,514 6,651,892 OTHER FINANCING SOURCES (USES):

Proceeds from sale of asset 1,000 1,000 83,209 82,209
Transfers out (1,310,955) (1,529,762) (1,528,336) 1,426 Total other financing sources (uses) (1,528,762) (1,309,955) (1,445,127) 83,635 Net change in fund balances $ (4,868,235) $ (4,567,140) 2,168,387 $ 6,735,527 FUND BALANCES:

Beginning of year 37,798,813
End of year $ 39,967,200
For the year ended June 30, 2021
Budget Amounts
87 279 of 369
City of Pinole
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Housing Programs Special Revenue Fund
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Loan Repayments 55,000 $ 1,805,000 $ 52,715 $ (1,752,285) $ Investment earnings 50,000 50,000 7,374 (42,626)
Total revenues 1,855,000 105,000 60,089 (1,794,911)
EXPENDITURES:

Current:

Community development 174,903 174,903 44,092 130,811
Total expenditures 174,903 174,903 44,092 130,811
Net change in fund balances $ 1,680,097 (69,903) $ 15,997 (1,664,100) $ FUND BALANCES:

Beginning of year 7,819,515
End of year $ 7,835,512
For the year ended June 30, 2021
Budget Amounts
88 280 of 369
City of Pinole
Notes to Required Supplementary Information
For the year ended June 30, 2020

1. BUDGETARY CONTROL AND BUDGETARY ACCOUNTING
A. Budgetary Control and Budgetary Accounting
Annually, the City Manager submits to the City Council a proposed operating budget for the following fiscal year. This budget includes proposed expenditures, by fund and department, and the revenues expected to finance them. Public hearings are conducted to obtain taxpayer comments and the budget is legally enacted through passage of a resolution. Any revisions which alter total expenditures of any fund must be approved by the City Council.

Budgets are adopted on a basis consistent with generally accepted accounting principles. Budget to actual comparisons in this report use this budgetary basis. Unexpended appropriations lapse at year-end and must be re-appropriated in the following year.

Budgeted amounts are as originally adopted, or as amended by the City Council. 89 281 of 369
City of Pinole
Notes to Required Supplementary Information
For the year ended June 30, 2020

2. DEFINED BENEFIT PENSION PLAN
A. Schedule of the City’s Proportionate Share of the Net Pension Liability – Last 10 Years* B. Schedule of Contributions – Last 10 Years*
Fiscal year: 2021 2020 2019 2018 2017 2016 2015
Measurement date: 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 Proportion of the net pension liability 0.33728% 0.33097% 0.32602% 0.31631% 0.31346% 0.30817% 0.30594% Proportionate share of the net pension liability 36,697,363 $ 33,914,595 $ 31,416,057 $ 31,369,644 $ 27,123,752 $ 21,152,634 $ 18,565,336 $ Covered payroll 8,979,455 $ 8,488,051 $ 7,653,834 $ 7,521,153 $ 7,470,896 $ 7,687,029 $ 7,659,156 $ Proportionate Share of the net pension liability
as percentage of covered payroll 408.68% 399.56% 410.46% 417.09% 363.06% 275.17% 242.39% Plan fiduciary net position as a percentage of
the total pension liability 75.10% 75.26% 75.26% 73.31% 74.06% 78.40% 79.82% Notes to Schedule:
* Fiscal year 2015 was the 1st year of implementation.

Assumption chages : The CalPERS discount rate was increased from 7.5% to 7.65 in fiscal year 2016, and then decreased from 7.65 to 7.15 in fiscal year 2018. The Calpers mortality assumption were also adjusted in fiscal year 2019 90 282 of 369
City of Pinole
Notes to Required Supplementary Information
For the year ended June 30, 2020

3. OTHER POST EMPLOYMENT BENEFITS (OPEB)
A. Schedule of the City’s Net OPEB Liability and Related Ratios for the Measurement Periods Ended June 30 (1)
Measurement Period 2020 2019 2018
Total OPEB Liability
Service Cost 1,615,428 $ 1,227,488 $ 1,274,335 $
Interest on the total OPEB liability 1,308,423 1,391,794 1,298,734 Differences between expected and actual experience - (2,333,030) - Changes of assumptions 8,431,861 1,956,937 (1,655,481)
Benefit payments, including refunds of employee contributions (1,223,092) (1,199,486) (1,169,676) Net change in total OPEB liability 1,043,703 10,132,620 (252,088) Total OPEB liability - beginning 35,335,912 36,379,615 35,588,000 Total OPEB liability - ending $ 36,379,615 46,512,235 $ 35,335,912 $ Covered-employee payroll 10,708,319 $ 10,199,027 $ 9,399,404 $ Total OPEB liability as a percentage of covered-employee payroll 434.36% 356.70% 375.94% Notes to Schedule:

Changes of benefit terms: None
(1) Historical information is required only for measurement periods for which GASB 75 is applicable. Future years' information will be displayed up to 10 years as information becomes available.

Change of assumptions: For the measurement date June 30, 2020, discount rate was updated based on municipal bond rate and ACA Excise Tax removed
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SUPPLEMENTARY INFORMATION
93 285 of 369
Capital
Projects Fund
Public Works
Capital Growth Gas
Projects Impact Tax
ASSETS
Cash and investments $ 3,152,774 $ 141,492 $ 334,150
Accounts receivables 131,183 - 65,892
Prepaid and supplies - - -
Total assets $ 3,283,957 $ 141,492 $ 400,042

LIABILITIES

AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities $ 250,849 $ - $ 43,525 Unearned revenue 131,183 - -
Deposits payable - - -
Due to other funds 81,844 - -
Total liabilities 463,876 - 43,525
Fund Balances:

Nonspendable - - -
Restricted 324,852 141,492 356,517
Assigned 2,495,229 - -
Unassigned - - -
Total fund balances 2,820,081 141,492 356,517
Total liabilities
and fund balances $ 3,283,957 $ 141,492 $ 400,042
Special Revenue Funds
City of Pinole
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2021
94 286 of 369
Adjudicated
Parkland Storm Refuse Asset
Dedication Measure C Water Management Seizure Police
$ 1,741,696 104,448 $ 10,147 $ 187,345 $ 88,225 $ 1,002,421 $ 38,451 - - 5,032 - 104,898
315,552 - - - - -
$ 2,095,699 104,448 $ 10,147 $ 192,377 $ 88,225 $ 1,107,319 $ $ 66 - $ 4,294 $ - $ 884 $ 79 $
38,450 - - - - 61,285
- - 4,000 - - -
- - - - - -
38,516 - 8,294 - 884 61,364
315,552 - - - - -
1,741,631 104,448 1,853 192,377 87,341 1,043,775
- - - - - 2,180
- - - - - -
2,057,183 104,448 1,853 192,377 87,341 1,045,955
$ 2,095,699 104,448 $ 10,147 $ 192,377 $ 88,225 $ 1,107,319 $ Special Revenue Funds
95 287 of 369
Cable Building
TV Recreation & Planning
ASSETS
Cash and investments $ - $ 74,456 $ 26,653
Accounts receivables 35,004 7,256 600
Prepaid and supplies - - -
Total assets $ 35,004 $ 81,712 $ 27,253

LIABILITIES

AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities $ 5,169 $ 35,902 $ 156,901 Unearned revenue 3,700 9,358 -
Deposits payable - 7,290 4,665
Due to other funds 29,266 - -
Total liabilities 38,135 52,550 161,566
Fund Balances:

Nonspendable - - -
Restricted - - -
Assigned - 29,162 -
Unassigned (3,131) (134,313) -
Total fund balances (3,131) 29,162 (134,313)
Total liabilities
and fund balances $ 35,004 $ 81,712 $ 27,253
Special Revenue Funds
City of Pinole
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2021
96 288 of 369
Total
Nonmajor
Development Solid Waste CASP Certification Rate Governmental Services Fund & Training Stabilization Funds
$ 1,777,332 86,267 $ 27,482 $ 176,407 $ 8,931,295 $
88,270 - 8 8,269 484,863
- - - - 315,552
$ 1,865,602 86,267 $ 27,490 $ 184,676 $ 9,731,710 $
$ 2,240 7,582 $ 73 $ - $ 507,564 $
- - - - 243,976
- 79,121 - - 95,076
- - - - 111,110
2,240 86,703 73 - 957,726
- - - - 315,552
1,863,362 - 27,417 184,676 6,069,741
- - - - 2,526,571
- (436) - - (137,880)
1,863,362 (436) 27,417 184,676 8,773,984
$ 1,865,602 86,267 $ 27,490 $ 184,676 $ 9,731,710 $
Special Revenue Funds
97 289 of 369
Capital
Projects Fund
Public Works
Capital Growth Gas
Projects Impact Tax
REVENUES:

Taxes and assessments 42,525 $ - $ - $
Intergovernmental revenues 149,002 - 795,113
Contributions - - -
Investment earnings 76 477 1,877
Rents and ground leases 11,250 - -
Charges for services - 32,090 -
Fines, forfeitures and penalties - - -
Other revenues 16,255 - 9,074
Total revenues 32,567 219,108 806,064
EXPENDITURES:

Current:

General administration - - -
Public safety - - -
Public works 64,868 - 559,471
Recreation - - -
Community development - - -
Capital outlay 687,833 - 817,521
Total expenditures - 752,701 1,376,992
REVENUES OVER (UNDER) EXPENDITURES 32,567 (533,593) (570,928) OTHER FINANCING SOURCES (USES):

Proceeds from sale of asset - - -
Transfers in 500,000 - -
Transfers out - - -
Total other financing sources (uses) - 500,000 -
Net change in fund balances 32,567 (33,593) (570,928)
FUND BALANCES:

Beginning of year 2,853,674 108,925 927,445
End of year 2,820,081 $ 141,492 $ 356,517 $
City of Pinole
Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2021
Special Revenue Funds
98 290 of 369
Adjudicated
Parkland Storm Refuse Asset
Dedication Measure C Water Management Seizure Police
$ - - $ 260,430 $ - $ - $ 187,448 $
390,147 - - 66,635 - 156,727
- - - - - -
6,298 351 52 1,009 234 3,099
- - - - - -
- 16,027 - - - -
- - - - 545 27,525
- - - - - -
396,445 16,378 260,482 67,644 779 374,799
48,930 - 2,222 - - -
- - - - - 328,398
111,905 - 272,838 102,639 - -
- - - - - -
- - - - - -
- - - - - -
160,835 - 275,060 102,639 - 328,398
16,378 235,610 (14,578) (34,995) 779 46,401
- - - - - -
- - - - - 29,428
- - (107,805) - - -
- - (107,805) - - 29,428
16,378 235,610 (14,578) (142,800) 779 75,829
88,070 1,821,573 16,431 335,177 86,562 970,126
$ 104,448 $ 2,057,183 $ 1,853 $ 192,377 $ 87,341 $ 1,045,955 Special Revenue Funds
99 291 of 369
Cable Building
TV Recreation & Planning
REVENUES:

Taxes and assessments $ 25,359 $ - $ -
Intergovernmental revenues - - -
Contributions - 14,274 -
Investment earnings - 477 (423)
Rents and ground leases - (945) -
Charges for services 223,342 141,657 503,324
Fines, forfeitures and penalties - - -
Other revenues 342 6,938 -
Total revenues 249,043 162,401 502,901
EXPENDITURES:

Current:

General administration 391,792 - -
Public safety - - -
Public works - - -
Recreation - 820,918 -
Community development - - 987,604
Capital outlay - 2,519 -
Total expenditures 391,792 823,437 987,604
REVENUES OVER (UNDER) EXPENDITURES (142,749) (661,036) (484,703) OTHER FINANCING SOURCES (USES):

Proceeds from sale of asset - - -
Transfers in 174,853 632,055 192,000
Transfers out - - -
Total other financing sources (uses) 174,853 632,055 192,000 Net change in fund balances 32,104 (28,981) (292,703)
FUND BALANCES:

Beginning of year (35,235) 58,143 158,390
End of year $ (3,131) $ 29,162 $ (134,313)
City of Pinole
Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2021
Special Revenue Funds
100 292 of 369
Total
CASP Nonmajor
Development Solid Waste Certification Rate Funds
Services Fund & Training Stabilization Totals
$ - - $ - $ - $ 515,762 $
- - - - 1,557,624
- - - - 14,274
5,804 229 - - 19,560
- - - - 10,305
- - 6,668 - 923,108
- - - - 28,070
347,367 - - 31,171 411,147
353,171 229 6,668 31,171 3,479,850
- - - - 442,944
- - - - 328,398
2,240 - - - 1,113,961
- - - - 820,918
- - - - 987,604
- - - - 1,507,873
2,240 - - - 5,201,698
350,931 229 6,668 31,171 (1,721,848)
- - - - -
- - - 153,505 1,681,841
- (45,700) - (153,505) -
- (45,700) - 153,505 1,528,336
229 305,231 6,668 184,676 (193,512)
(665) 1,558,131 20,749 8,967,496 -
$ (436) $ 1,863,362 $ 27,417 $ 184,676 $ 8,773,984
Special Revenue Funds
101 293 of 369
City of Pinole
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Public Works Capital Projects
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes and assessments 42,780 $ 42,780 $ 42,525 $ (255) $ Intergovernmental revenues - - 149,002 149,002
Investment earnings - - 76 76
Rents and ground leases 15,000 15,000 11,250 (3,750)
Other revenues - 14,584 16,255 1,671
Total revenues 72,364 57,780 219,108 146,744
EXPENDITURES:

Current:

Public works 51,927 62,746 64,868 (2,122)
Capital outlay 2,840,581 2,244,457 687,833 1,556,624
Total expenditures 2,307,203 2,892,508 752,701 1,554,502 REVENUES OVER (UNDER) EXPENDITURES (2,234,839) (2,834,728) (533,593) 1,701,246 OTHER FINANCING SOURCES (USES):

Transfers in 500,000 500,000 500,000 -
Total other financing sources (uses) 500,000 500,000 500,000 - Net change in fund balances $ (1,734,839) (2,334,728) $ (33,593) 1,701,246 $ FUND BALANCES:

Beginning of year 2,853,674
End of year $ 2,820,081
Budget Amounts
For the year ended June 30, 2021
102 294 of 369
City of Pinole
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Growth Impact Special Revenue Fund
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Investment earnings - $ - $ 477 $ 477 $
Charges for services - - 32,090 32,090
Total revenues - 32,567 - 32,567
EXPENDITURES:

Capital outlay 8,000 8,000 - 8,000
Total expenditures 8,000 8,000 - 8,000
Net change in fund balances $ (8,000) $ (8,000) 32,567 $ 40,567 FUND BALANCES:

Beginning of year 108,925
End of year $ 141,492
For the year ended June 30, 2021
Budget Amounts
103 295 of 369
City of Pinole
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Gas Tax Special Revenue Fund
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental revenues 861,465 $ 861,465 $ 795,113 $ (66,352) $ Investment earnings 5,000 5,000 1,877 (3,123)
Other revenues - 7,636 9,074 1,438
Total revenues 874,101 866,465 806,064 (68,037)
EXPENDITURES:

Current:

Public works 459,175 466,811 559,471 (92,660)
Capital outlay 1,109,395 1,141,245 817,521 323,724
Total expenditures 1,608,056 1,568,570 1,376,992 231,064 Net change in fund balances $ (733,955) (702,105) $ (570,928) 163,027 $ FUND BALANCES:

Beginning of year 927,445
End of year $ 356,517
For the year ended June 30, 2021
Budget Amounts
104 296 of 369
City of Pinole
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Parkland Dedication Special Revenue Fund
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Investment earnings - $ - $ 351 $ 351 $
Charges for services - - 16,027 16,027
Total revenues - 16,378 - 16,378
EXPENDITURES:

Capital outlay - - - -
Total expenditures - - - -
Net change in fund balances $ - $ 16,378 - $ 16,378
FUND BALANCES:

Beginning of year 88,070
End of year $ 104,448
For the year ended June 30, 2021
Budget Amounts
105 297 of 369
City of Pinole
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Measure C Special Revenue Fund
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental revenues 380,000 $ 390,147 $ 390,147 $ - $ Investment earnings 8,000 8,000 6,298 (1,702)
Total revenues 398,147 388,000 396,445 (1,702)
EXPENDITURES:

Current:

General administration 48,930 48,930 48,930 -
Public works 113,668 113,668 111,905 1,763
Capital outlay 618,000 618,000 - 618,000
Total expenditures 780,598 780,598 160,835 619,763
Net change in fund balances $ (382,451) (392,598) $ 235,610 618,061 $ FUND BALANCES:

Beginning of year 1,821,573
End of year $ 2,057,183
For the year ended June 30, 2021
Budget Amounts
106 298 of 369
City of Pinole
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Storm Water Special Revenue Fund
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes and assessments 266,470 $ 324,505 $ 260,430 $ (64,075) $ Investment earnings 150 150 52 (98)
Total revenues 324,655 266,620 260,482 (64,173)
EXPENDITURES:

Current:

Public works 377,717 377,717 272,838 104,879
Total expenditures 377,717 377,717 275,060 102,657
Net change in fund balances $ (53,062) (111,097) $ (14,578) 38,484 $ FUND BALANCES:

Beginning of year 16,431
End of year $ 1,853
For the year ended June 30, 2021
Budget Amounts
107 299 of 369
City of Pinole
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Refuse Management Special Revenue Fund
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental revenues 60,060 $ 60,060 $ 66,635 $ 6,575 $ Investment earnings 6,000 6,000 1,009 (4,991)
Total revenues 66,060 66,060 67,644 1,584
EXPENDITURES:

Current:

Public works 126,417 126,417 102,639 23,778
Total expenditures 126,417 126,417 102,639 23,778
REVENUES OVER (UNDER) EXPENDITURES (60,357) (60,357) (34,995) 25,362 OTHER FINANCING SOURCES (USES):

Transfers out - (107,805) (107,805) -
Total other financing sources (uses) (107,805) - (107,805) - Net change in fund balances $ (60,357) $ (168,162) (142,800) $ 25,362 FUND BALANCES:

Beginning of year 335,177
End of year $ 192,377
For the year ended June 30, 2021
Budget Amounts
108 300 of 369
City of Pinole
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Adjudicated Asset Seizure Special Revenue Fund
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Investment earnings - $ - $ 234 $ 234 $
Fines, forfeitures and penalties - - 545 545
Total revenues - - 779 779
EXPENDITURES:

Current:

Public safety - - - -
Total expenditures - - - -
Net change in fund balances $ - $ - 779 $ 779
FUND BALANCES:

Beginning of year 86,562
End of year $ 87,341
For the year ended June 30, 2021
Budget Amounts
109 301 of 369
City of Pinole
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Police Special Revenue Fund
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes and assessments 170,266 $ 170,266 $ 187,448 $ 17,182 $ Intergovernmental revenues 250,000 156,727 156,727 -
Investment earnings 5,600 5,600 3,099 (2,501)
Fines, forfeitures and penalties 45,000 45,000 27,525 (17,475) Total revenues 377,593 470,866 374,799 (2,794)
EXPENDITURES:

Current:

Public safety 451,933 451,933 328,398 123,535
Capital outlay 7,500 7,500 - 7,500
Total expenditures 459,433 459,433 328,398 131,035
REVENUES OVER (UNDER) EXPENDITURES (81,840) 11,433 46,401 128,241 OTHER FINANCING SOURCES (USES):

Transfers in - 26,807 29,428 2,621
Transfers out - - - -
Total other financing sources (uses) 26,807 - 29,428 2,621 Net change in fund balances $ 11,433 $ (55,033) 75,829 $ 130,862 FUND BALANCES:

Beginning of year 970,126
End of year $ 1,045,955
For the year ended June 30, 2021
Budget Amounts
110 302 of 369
City of Pinole
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Cable TV Special Revenue Fund
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes and assessments 35,000 $ 26,486 $ 25,359 $ (1,127) $ Contributions 3,600 3,600 - (3,600)
Charges for services 313,695 134,010 223,342 89,332
Other revenues - - 342 342
Total revenues 164,096 352,295 249,043 84,947
EXPENDITURES:

Current:

General administration 477,409 423,906 391,792 32,114
Capital outlay 61,900 21,700 - 21,700
Total expenditures 445,606 539,309 391,792 53,814
REVENUES OVER (UNDER) EXPENDITURES (281,510) (187,014) (142,749) 138,761 OTHER FINANCING SOURCES (USES):

Transfers in 160,124 160,124 174,853 14,729
Total other financing sources (uses) 160,124 160,124 174,853 14,729 Net change in fund balances $ (121,386) (26,890) $ 32,104 153,490 $ FUND BALANCES:

Beginning of year (35,235)
End of year $ (3,131)
For the year ended June 30, 2021
Budget Amounts
111 303 of 369
City of Pinole
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Recreation Special Revenue Fund
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Contributions 13,250 $ 18,050 $ 14,274 $ (3,776) $
Investment earnings - - 477 477
Rents and ground leases 86,600 250 (945) (1,195)
Charges for services 532,407 81,407 141,657 60,250
Other revenues 2,732 500 6,938 6,438
Total revenues 100,207 634,989 162,401 62,194
EXPENDITURES:

Current:

Recreation 1,298,524 820,562 820,918 (356)
Capital outlay - 2,874 2,519 355
Total expenditures 823,436 1,298,524 823,437 (1)
REVENUES OVER (UNDER) EXPENDITURES (723,229) (663,535) (661,036) 62,193 OTHER FINANCING SOURCES (USES):

Transfers in 651,831 651,831 632,055 (19,776)
Total other financing sources (uses) 651,831 651,831 632,055 (19,776) Net change in fund balances $ (71,398) (11,704) $ (28,981) 42,417 $ FUND BALANCES:

Beginning of year 58,143
End of year $ 29,162
For the year ended June 30, 2021
Budget Amounts
112 304 of 369
City of Pinole
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Building and Planning Special Revenue Fund
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental revenues 160,000 $ 160,000 $ - $ (160,000) $ Investment earnings 7,000 7,000 (423) (7,423)
Charges for services 647,700 647,700 503,324 (144,376)
Other revenues 6,000 6,000 - (6,000)
Total revenues 820,700 820,700 502,901 (317,799)
EXPENDITURES:

Current:

Community development 1,500,338 1,500,338 987,604 512,734 Capital outlay 3,000 3,000 - 3,000
Total expenditures 1,503,338 1,503,338 987,604 515,734
REVENUES OVER (UNDER) EXPENDITURES (682,638) (682,638) (484,703) 197,935 OTHER FINANCING SOURCES (USES):

Transfers in - 192,000 192,000 -
Total other financing sources (uses) 192,000 - 192,000 - Net change in fund balances $ (682,638) $ (490,638) (292,703) $ 197,935 FUND BALANCES:

Beginning of year 158,390
End of year $ (134,313)
For the year ended June 30, 2021
Budget Amounts
113 305 of 369
City of Pinole
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Development Services Special Revenue Fund
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Investment earnings - $ - $ 229 $ 229 $
Total revenues - - 229 229
Net change in fund balances $ - $ - 229 $ 229
FUND BALANCES:

Beginning of year (665)
End of year $ (436)
For the year ended June 30, 2021
Budget Amounts
114 306 of 369
City of Pinole
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Solid Waste Special Revenue Fund
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Investment earnings 8,000 $ 8,000 $ 5,804 $ (2,196) $
Other revenues 360,000 360,000 347,367 (12,633)
Total revenues 368,000 368,000 353,171 (14,829)
EXPENDITURES:

Current:

Public works - - 2,240 2,240
Capital outlay 20,000 237,800 - 237,800
Total expenditures 237,800 20,000 2,240 235,560
REVENUES OVER (UNDER) EXPENDITURES 130,200 348,000 350,931 220,731 OTHER FINANCING SOURCES (USES):

Transfers out - (45,700) (45,700) -
Total other financing sources (uses) (45,700) - (45,700) - Net change in fund balances $ 348,000 $ 84,500 305,231 $ 220,731 FUND BALANCES:

Beginning of year 1,558,131
End of year $ 1,863,362
For the year ended June 30, 2021
Budget Amounts
115 307 of 369
City of Pinole
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual CASP Certification & Training Special Revenue Fund
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Charges for services - $ - $ 6,668 $ 6,668 $
Total revenues - 6,668 - 6,668
EXPENDITURES:

Current:

General administration - - - -
Total expenditures - - - -
Net change in fund balances $ - $ 6,668 - $ 6,668
FUND BALANCES:

Beginning of year 20,749
End of year $ 27,417
For the year ended June 30, 2021
Budget Amounts
116 308 of 369
City of Pinole
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Rate Stabilization Fund
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Other revenues - $ 31,171 $ 31,171 $ - $
Total revenues 31,171 - 31,171 -
EXPENDITURES:

Current:

General administration - - - -
Total expenditures - - - -
REVENUES OVER (UNDER) EXPENDITURES 31,171 - 31,171 -
OTHER FINANCING SOURCES (USES):

Transfers in 153,505 - 153,505 -
Total other financing sources (uses) 153,505 - 153,505 - Net change in fund balances $ 184,676 - $ 184,676 $ -
FUND BALANCES:

Beginning of year -
End of year $ 184,676
For the year ended June 30, 2021
Budget Amounts
117 309 of 369
City of Pinole
Section 115 Pension Fund Schedule
(General Fund)
June 30, 2021
Section 115 *
Pension
Fund
ASSETS
Restricted cash - Pension $ 19,442,495
Total assets $ 20,110,333

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES
Liabilities:

Due to general fund $ 667,838
Total liabilities 667,838

FUND BALANCES
Restricted 19,442,494
Total fund balances $ 19,442,494
* The City's Section 115 Pension Fund is included as part of the General Fund and is being separately reported above on stand-alone basis for informational purposes only. Interfund activities between the Section 115 Pension Fund and other internal-use funds included in the General Fund have been eliminated for reporting in the Basic Financial Statements.
118 310 of 369
Section 115 Pension Fund Schedule
Section 115 *
Pension
Fund
REVENUES:

Investment earnings $ 2,792,381
Total revenues 2,792,381
EXPENDITURES:

Current:

General government 86,587
Total expenditures 86,587

REVENUES OVER (UNDER)
EXPENDITURES 2,705,794
OTHER FINANCING SOURCES (USES):

Transfers out (1,352,111)
Total other financing sources (uses) (1,352,111)
Net change in fund balances 1,353,683
FUND BALANCES:

Beginning of year 18,088,811
End of year $ 19,442,494
* The City's Section 115 Pension Fund is included as part of the General Fund and is being separately reported above on stand-alone basis for informational purposes only. Interfund activities between the Section 115 Pension Fund and other internal-use funds included in the General Fund have been eliminated for reporting in the Basic Financial Statements.

City of Pinole
(General Fund)
For the year ended June 30, 2021
119 311 of 369
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120 312 of 369

STATISTICAL SECTION (UNAUDITED)
121 313 of 369
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122 314 of 369
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Governmental activities Net investment in capital assets 35,021,089 $ 35,773,981 $ 36,296,765 $ 34,962,909 $ 33,764,294 $ 32,700,833 $ 31,758,414 $ 29,977,958 $ 30,774,116 $ 31,008,808 $ Restricted 11,286,730 11,530,930 2,591,393 2,591,393 2,591,393 17,755,625 17,938,328 31,048,458 32,045,457 33,528,931 Unrestricted 14,727,078 11,842,896 (2,498,114) (21,819,095) (17,014,950) (31,148,654) (34,044,994) (41,104,957) (41,984,038) (44,487,476) Total governmental activities net position 61,034,897 $ 59,147,807 $ 36,390,044 $ 15,735,207 $ 19,340,737 $ 19,307,804 $ 15,651,748 $ 19,921,459 $ 20,835,535 $ 20,050,263 $ Business-type activities Net investment in capital assets 9,444,118 $ 9,051,860 $ 9,921,073 $ 11,223,296 $ 13,869,394 $ 14,364,860 $ 13,381,134 $ 13,088,528 $ 12,452,490 $ 12,783,593 $ Unrestricted 3,395,880 4,546,425 5,205,241 4,984,154 4,584,135 5,649,110 6,241,700 7,883,837 10,243,444 10,795,126 Total business-type activities net position 12,839,998 $ 13,598,285 $ 15,126,314 $ 16,207,450 $ 18,453,529 $ 20,013,970 $ 19,622,834 $ 20,972,365 $ 22,695,934 $ 23,578,719 $ Primary government Net investment in capital assets 44,465,207 $ 44,825,841 $ 46,217,838 $ 46,186,205 $ 47,633,688 $ 47,065,693 $ 45,139,548 $ 43,066,486 $ 43,226,606 $ 43,792,401 $ Restricted 11,286,730 11,530,930 2,591,393 2,591,393 2,591,393 17,755,625 17,938,328 31,048,458 32,045,457 33,528,931 Unrestricted 18,122,958 16,389,321 2,707,127 (16,834,941) (12,430,815) (25,499,544) (27,803,294) (33,221,120) (31,740,594) (33,692,350) Total primary government net position 73,874,895 $ 72,746,092 $ 51,516,358 $ 31,942,657 $ 37,794,266 $ 39,321,774 $ 35,274,582 $ 40,893,824 $ 43,531,469 $ 43,628,982 $

CITY OF PINOLE
NET POSITION BY COMPONENT, Last Ten Fiscal Years
123 315 of 369
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
ExpensesGovernmental Activities: General government 6,644,902 $ 5,996,378 $ 4,718,160 $ 4,373,166 $ 4,368,671 $ 5,952,688 $ 3,482,534 $ 4,931,705 $ 4,596,909 $ 4,957,477 $ Public safety 9,153,942 8,855,816 9,281,461 9,321,934 10,086,963 10,326,947 12,202,527 12,060,171 14,937,597 15,895,381 Public services 2,472,400 1,488,713 2,685,493 2,673,746 3,878,498 2,568,265 3,217,759 3,416,574 3,488,882 4,541,157 Recreation 1,527,911 1,467,915 1,074,585 1,150,267 1,067,952 1,151,760 1,145,227 1,069,375 1,146,587 949,734 Community development 3,218,191 654,535 779,147 833,061 1,184,385 1,065,848 1,642,031 2,338,177 1,365,580 1,275,333 Interest and fiscal changes 1,345,952 149,097 280,173 290,860 305,569 338,507 331,464 287,729 304,844 331,218 Total government activity expenses 24,363,298 $ 18,612,454 $ 18,819,019 $ 18,643,034 $ 20,892,038 $ 21,404,015 $ 22,021,542 $ 24,103,731 $ 25,840,399 $ 27,950,300 $ Business-type activities: Wastewater utility 4,998,178 5,427,396 4,859,118 4,883,256 5,316,022 4,597,454 5,193,994 4,930,113 5,704,747 6,688,530 Total business-type activities expenses 4,998,178 5,427,396 4,859,118 4,883,256 5,316,022 4,597,454 5,193,994 4,930,113 5,704,747 6,688,530 Total primary government expenses 29,361,476 $ 24,039,850 $ 23,678,137 $ 23,526,290 $ 26,208,060 $ 26,001,469 $ 27,215,536 $ 29,033,844 $ 31,545,146 $ 34,638,830 $ Program RevenuesGovernmental Activities: Charges for services: General government 1,068,236 $ 286,722 $ 502,094 $ 590,359 $ 236,512 $ 354,357 $ 648,409 $ 643,524 $ 678,065 $ 686,519 $ Public safety 102,560 146,658 586,131 534,095 461,330 640,785 1,435,741 1,186,008 1,388,295 1,440,572 Public services 705,701 461,578 946,387 573,320 545,273 310,073 153,810 169,758 66,676 74,897 Recreation 1,163,599 927,758 1,195,728 998,792 871,497 783,783 846,822 770,397 501,860 172,486 Community development 534,533 1,083,517 527,441 666,863 244,449 162,634 1,153,907 2,368,209 736,346 503,324 Operating grants and contributiions 2,127,097 948,062 1,026,339 1,203,058 1,464,456 227,184 11,483,081 2,136,212 1,790,729 1,795,055 Capital grants and contributions 96,886 755,433 640,884 1,068,087 1,094,371 1,262,813 - - - - Total governmental program revenues 5,798,612 4,609,728 5,425,004 5,634,574 4,917,888 3,741,629 15,721,770 7,274,108 5,161,971 4,672,853 Business-type activities: Charges for services: Wastewater utility 5,633,904 5,961,605 6,473,147 6,912,213 7,541,964 6,315,563 6,524,537 7,211,834 7,093,734 7,527,056 Capital grants and contributions 218,193Total business-type program revenues 5,633,904 6,179,798 6,473,147 6,912,213 7,541,964 6,315,563 6,524,537 7,211,834 7,093,734 7,527,056 Total primary government program revenues 11,432,516 $ 10,789,526 $ 11,898,151 $ 12,546,787 $ 12,459,852 $ 10,057,192 $ 22,246,307 $ 14,485,942 $ 12,255,705 $ 12,199,909 $ Net (Expense)/RevenueNet (Expense)/Revenue Governmental (18,564,686) (14,002,726) (13,394,015) (13,008,460) (15,974,150) (17,662,386) (6,299,772) (16,829,623) (20,678,428) (23,277,447) Net (Expense)/Revenue Business-type 635,726 752,402 1,614,029 2,028,957 2,225,942 1,718,109 1,330,543 2,281,721 1,388,987 838,526 Total primary government net expense (17,928,960) (13,250,324) (11,779,986) (10,979,503) (13,748,208) (15,944,277) (4,969,229) (14,547,902) (19,289,441) (22,438,921) Change in Net PositionGovernmental activities 15,894,132 (1,887,090) (22,757,764) (4,193,825) (2,388,176) (32,933) 12,710,019 2,874,178 (50,793) (785,272) Business-type activities 688,725 758,287 1,602,798 (2,037,223) (2,246,079) 1,721,679 1,389,501 2,411,362 1,673,561 882,785 Total primary government 16,582,857 (1,128,803) (21,154,966) (6,231,048) (4,634,255) 1,688,746 14,099,520 5,285,540 1,622,768 97,513

CITY OF PINOLE
CHANGES IN NET POSITION, Last Ten Fiscal Years
(accrual basis of accounting)
124 316 of 369
(b) (a) ( c )
Fiscal
Year Property Tax Sales Tax
Franchise
Tax Transfer Tax
Occupancy
Tax Utility Tax Other Total
2012 1,792,274 4,688,836 572,499 51,630 208,498 1,930,758 1,554,431 10,798,926 2013 2,006,791 4,896,120 565,095 75,542 223,413 1,975,666 1,503,333 11,245,960 2014 2,637,749 5,164,841 667,030 94,992 302,329 1,880,224 1,542,483 12,289,648 2015 5,048,149 6,120,157 656,564 84,136 391,165 1,843,618 1,762,254 15,906,044 2016 3,333,712 7,859,195 687,737 79,181 459,393 1,876,318 1,826,513 16,122,050 2017 3,392,870 7,411,905 717,013 98,593 478,940 2,066,623 1,942,511 16,108,455 2018 4,555,300 8,162,816 747,625 90,328 513,368 1,926,796 2,068,842 18,065,075 2019 3,775,074 8,281,048 735,311 91,954 485,499 1,812,844 2,205,899 17,387,628 2020 4,473,828 7,689,917 750,002 70,764 444,453 1,809,832 2,304,932 17,543,727 2021 4,001,411 8,927,361 751,598 119,254 446,105 1,939,726 2,354,617 18,540,071 (c) Includes Business License Taxes
Source: City of Pinole Finance

CITY OF PINOLE

GENERAL FUND TAX REVENUE BY SOURCE

LAST TEN FISCAL YEARS
(a) City of Pinole utility tax went into effect July 1991. This tax was repealed by the voters in November 1997 and reinstated in November 1998, and reaffirmed by voters in November 2004, November 2012, and November 2018. (b) Voter ratification November 2006 of 1/2-cent local user tax applied to retail sales effective April 2007. Voter ratification November 2014 of additional 1/2-cent local user tax applied to retail sales effective April 2015. $10,000
$100,000
$1,000,000
$10,000,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Fiscal Year Property Tax Sales Tax Franchise Tax Transfer Tax Occupancy Tax Utility Tax Other 125 317 of 369
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General Fund Nonspendable 11,299,227 $ 8,950,035 $ 11,157 $ - $ 7,275 $ 6,712 $ 12,669 $ 13,178 $ 463,067 $ 18,782 $ Restricted - - - - - - 133,586 17,346,090 18,255,487 19,623,678 Assigned 1,587,255 2,209,430 2,899,585 1,030,000 - - 2,531,677 2,531,677 7,672,065 7,836,178 Committed - 12,599,292 - - - - - - 579,257 - Unassigned 20,730,658 (3,464,498) (2,914,406) 4,261,995 9,062,287 11,700,289 23,249,204 14,909,608 10,828,937 12,488,562 Total General Fund 33,617,140 $ 20,294,259 $ (3,664) $ 5,291,995 $ 9,069,562 $ 11,707,001 $ 25,927,136 $ 34,800,553 $ 37,798,813 $ 39,967,200 $ All Other Governmental Funds Nonspendable 7,023,664 $ 2,591,393 $ 2,591,393 $ 6,882,968 $ - $ - $ 315,552 $ 315,552 $ Restricted 3,060,465 6,787,458 15,103,453 14,074,122 11,665,834 10,872,657 18,250,952 14,306,945 13,756,009 13,905,253 Assigned 1,340,327 783,083 3,661,477 - - 2,366,429 2,800,614 2,751,350 2,526,571 Committed - - - - - 2,304,515 - - - -
Unassigned reported in: Special revenue funds - - - (611,270) 4,248,108 (371,162) (43,673) (29,052) (35,900) (137,880) Capital project funds - 933,006 (24,842) (265,778) - - - - - - Debt service funds - - (3,018,401) - - - - - - -
Total all other governmental funds 3,060,465 $ 16,084,455 $ 15,434,686 $ 16,858,551 $ 18,505,335 $ 19,688,978 $ 20,573,708 $ 17,078,507 $ 16,787,011 $ 16,609,496 $ [1]
Notes:[1] Fund balance increased as a result of revenue in excess of expenditures at fiscal year-end. Sale of property in General Fund.

CITY OF PINOLE
FUND BALANCES, GOVERNMENTAL FUNDS, Last Ten Fiscal Years (modified accrual basis of accounting)
126 318 of 369
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
RevenuesTaxes 13,474,038 $ 10,373,826 $ 11,456,712 $ 15,111,311 $ 15,111,374 $ 15,453,213 $ 16,599,387 $ 15,853,006 $ 15,874,731 $ 19,055,833 $ Intergovernmental 3,427,388 2,745,954 3,426,928 3,313,973 3,462,621 877,090 1,460,655 2,188,347 1,860,599 1,856,343 Loan repayments 109,343 48,464 108,021 45,666 85,849 145,457 15,023 1,656,645 544,892 107,912Contributions 96,886 174,153 94,032 51,313 65,317 146,112 30,595 22,746 24,889 14,274 Investment earnings 22,214 113,723 595,808 311,168 188,790 16,188 88,092 1,529,630 1,790,740 2,888,309 Rents and ground leases 821,723 301,537 273,435 264,301 224,952 300,441 303,618 274,153 185,594 131,335 Charges for service 2,694,734 2,543,872 2,645,656 2,929,952 3,892,535 3,997,423 5,307,234 4,616,561 4,726,675 2,444,899 Fines, forfeitures and penalties 58,172 50,170 60,734 58,863 41,564 48,442 75,670 89,911 68,576 41,236 Gain (loss) on sale of property (1,192,929) - - - - - - - - - Other revenues 451,942 405,411 137,713 778,737 365,857 532,173 834,086 746,909 709,677 541,679 Total revenues 19,963,511 16,757,110 18,799,039 22,865,284 23,438,859 21,516,539 24,714,360 26,977,908 25,786,373 27,081,820 ExpendituresGeneral administration 3,689,592 2,903,879 2,506,878 2,411,271 3,007,506 3,035,822 3,257,220 3,802,406 4,029,981 4,319,504 Public safety 9,051,515 8,807,959 9,206,393 9,165,922 9,635,264 10,067,977 10,535,903 11,801,897 12,975,773 13,889,090Public services 904,149 696,343 1,822,928 1,628,204 2,460,827 1,712,315 1,485,090 1,648,377 1,680,617 1,448,818 Recreation 1,467,895 1,439,933 1,038,572 1,107,168 906,302 1,042,006 960,325 1,069,375 1,000,400 820,918 Community development 584,483 1,520,667 742,413 818,580 945,646 935,276 1,596,240 1,237,892 1,333,476 1,205,200 Debt service - Principal 3,148,966 334,287 381,144 373,007 369,177 363,151 361,674 356,117 301,709 227,389Debt service - Interest 1,345,952 149,097 280,173 290,860 305,569 338,507 331,464 287,729 304,844 331,218Capital outlay 1,002,678 1,209,901 1,598,513 368,007 1,289,967 200,403 1,098,789 1,419,264 1,466,664 2,932,020 Total expenditures 21,195,230 17,062,066 17,577,014 16,163,019 18,920,258 17,695,457 19,626,705 21,623,057 23,093,464 25,174,157 Other financing sources (uses)
Bond, note and loan proceeds 296,926 - 458,000 - - - - - - - Capital lease financing - - - - - - - - - -
Gain (loss) on sale of property - 6,064 6,559 17,259 1,909 10,017,210 3,140 13,855 83,209 Transfers in - - - 447,050 446,000 671,364 826,926 7,135,205 1,170,058 1,681,841 Transfers out - - - (447,050) (446,000) (671,364) (826,926) (7,135,205) (1,170,058) (1,681,841) Transfers from enterprise fund - - - - - - - - - -Extraordinary item (5,828,864) - (22,634,276) - - - - - - - Total other financing sources (5,531,938) 6,064 (22,169,717) 17,259 1,909 - 10,017,210 3,140 13,855 83,209Net change in fund balance (6,763,657) $ (298,892) $ (20,947,692) $ 6,719,524 $ 4,520,510 $ 3,821,082 $ 15,104,865 $ 5,357,991 $ 2,706,764 $ 1,990,872 $ Debt service as a % of noncapital expenditures 22.3% 3.0% 4.1% 4.2% 3.8% 4.0% 3.7% 3.2% 2.8% 2.5%

CITY OF PINOLE
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS, Last Ten Fiscal Years (modified accrual basis of accounting)
127 319 of 369
Total Real
Fiscal Residential Commercial Industrial Secured Unsecured Total Estimated Total Direct Year Property Property Property Other Property Property Assessed (a) Full Market (a) Tax Rate 2012 1,307,568,620 344,375,136 2,504,602 32,746,389 1,687,194,747 54,954,754 1,742,149,501 2,070,370,467 0.1884% 2013 1,260,099,385 336,541,044 2,554,690 32,245,615 1,631,440,734 51,157,272 1,682,598,006 1,999,599,470 0.1884%2014 1,322,470,290 326,179,820 2,605,779 53,249,619 1,704,505,508 55,296,246 1,759,801,754 2,091,348,404 0.1884%2015 1,496,137,773 339,520,240 2,617,605 72,710,914 1,910,986,532 63,501,588 1,974,488,120 2,346,481,682 0.1884%2016 1,607,057,208 373,896,531 2,669,901 71,708,925 2,055,332,565 57,423,148 2,112,755,713 2,510,798,889 0.1884%2017 1,712,024,334 424,465,946 2,710,613 40,142,846 2,179,343,739 52,646,667 2,231,990,406 2,652,497,398 0.1884%2018 1,815,946,452 437,410,538 2,764,822 52,717,127 2,308,838,939 50,669,026 2,359,507,965 2,804,039,266 0.1884%2019 1,930,860,892 481,974,623 21,572,321 17,844,755 2,452,252,591 54,318,451 2,506,571,042 2,978,809,026 0.1884%2020 2,054,262,264 510,162,994 22,004,780 17,718,345 2,604,148,383 55,881,828 2,660,030,211 3,161,179,903 0.1884%2021 2,156,140,583 520,189,147 22,444,868 19,105,066 2,717,879,664 58,104,679 2,775,984,343 3,298,979,793 0.1884% Source: Contra Costa County Assessor Combined Tax Rolls-HdL Coren & Cone report. [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.

CITY OF PINOLE

ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS
Real Property
[a] The State Constitution requires property to be assessed at one hundred percent of the most recent purchase price, plus an increment of no more than two percent annually, plus any local overrides. These values are considered to be full market values. 128 320 of 369
Fiscal
Year
Basic County
Wide Levy
Bay Area Rapid
Transit
East Bay
Regional Park
District
Community
College District
West Contra
Costa Unified
School District
Total Direct and
Overlapping Tax
Rates [1]
2012 1.0000 0.0041 0.0071 0.0144 0.2322 1.2578
2013 1.0000 0.0043 0.0051 0.0087 0.2157 1.2338
2014 1.0000 0.0075 0.0078 0.0133 0.2818 1.3104
2015 1.0000 0.0045 0.0085 0.0252 0.2803 1.3185
2016 1.0000 0.0026 0.0067 0.0220 0.2781 1.3094
2017 1.0000 0.0080 0.0032 0.0120 0.2604 1.2836
2018 1.0000 0.0084 0.0021 0.0114 0.2397 1.2616
2019 1.0000 0.0070 0.0021 0.0110 0.2390 1.2591
2020 1.0000 0.0120 0.0094 0.0188 0.2379 1.2781
2021 1.0000 0.0139 0.0014 0.0161 0.2432 1.2746
Source : Contra Costa County Auditor-Controller Office
[1] Rates are per $100 of assessed value.

CITY OF PINOLE

PROPERTY TAX RATES

DIRECT AND OVERLAPPING GOVERNMENTS
PER $100 OF ASSESSED VALUE

LAST TEN FISCAL YEARS

0.0010

0.0100

0.1000

1.0000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Basic County Wide Levy Bay Area Rapid Transit
East Bay Regional Park District Community College District West Contra Costa Unified School District Total Direct and Overlapping Tax Rates [1] 129 321 of 369
Taxpayer
Taxable Assessed
Value
Percent of Total
City Taxable
Assessed Value
Taxable Assessed
Value
Percent of Total
City Taxable
Assessed Value
1030 Bayview Far Road LLC $ 16,964,642 0.62% $ -
Che Chen and Shu Fen Liu Trust 23,280,749 0.86% -
Gateway Pinole Vista LLC 72,481,539 2.67% -
Fairfield Bayside LLC 38,672,527 1.42% -
Kaiser Foundation Health Plan 38,029,284 1.40% 32,462,762 1.92% NHI-Reit of Next House LLC 18,820,416 0.69% -
Pinole Ridge Mall LLC 20,321,325 0.75% -
ROIC Pinole Vista LLC 38,934,952 1.43% -
SCG Pinole Valley Shopping Center 42,744,462 1.57% -
Target Corporation 19,800,407 0.73% -
Alpha Beta Company - 14,323,779 0.85%
Appian Associates - 14,809,062 0.88%
Dayton Hudson Corporation - 16,902,129 1.00%
Jackson Retail Venture LLC - 15,378,673 0.91%
KW Pinole - 17,861,368 1.06%
Peter L. Thingpen - 16,255,388 0.96%
Pinole Vista LLC - 27,600,000 1.64%
Public Storage Institutional Fund II - 12,131,935 0.72% Thomas Fitzgerald Trust - 11,671,029 0.69%
$ 330,050,303 12.14% $ 179,396,125 10.63%
Total Net Assessed Valuation:

Fiscal Year 2020-21 $ 2,717,879,664
Fiscal Year 2011-12 1,687,194,747
Source: Contra Costa County Assessor Combined Tax Rolls-HdL Coren & Cone reports.

Note: Information is shown in alphabetical order.

CITY OF PINOLE

PRINCIPAL PROPERTY TAXPAYERS

CURRENT AND NINE YEARS PRIOR
2020-21 2011-12
130 322 of 369
Redevelopment/ Value of Effective
Successor Agency Total Percent Value of City Redevelopment Local Tax Rate Effective Taxrate for Fiscal City Property Tax Property Tax Property Tax of Levy Property Subject to Property Subject to Applied to Taxrate for Redevelopment Year Levied & Collected Levied & Collected Levied & Collected Collected [3] Local Tax Rate Local Tax Rate Assessed Value City Levy Agency Levy 2012 1,578,328 $ 8,724,669 $ [1] 10,302,997 $ 100% 859,343,223 $ 853,177,005 $ 1,712,520,228 $ 0.18% 1.02% 2013 1,538,826 105,121 [2] 1,643,946 100% 824,577,292 829,059,723 1,653,637,015 0.19% 0.01% 2014 1,622,419 105,121 [2] 1,727,540 100% 868,918,982 862,888,372 1,731,807,354 0.19% 0.01% 2015 1,856,378 105,121 [2] 1,961,498 100% 990,967,092 956,240,628 1,947,207,720 0.19% 0.01% 2016 1,967,011 105,121 [2] 2,072,131 100% 1,048,130,045 1,037,786,268 2,085,916,313 0.19% 0.01% 2017 2,059,786 104,251 [2] 2,164,037 100% 1,105,435,408 1,100,258,798 2,205,694,206 0.19% 0.01% 2018 2,185,033 104,295 [2] 2,289,328 100% 1,170,940,384 1,162,783,781 2,333,724,165 0.19% 0.01% 2019 2,321,597 104,321 [2] 2,425,918 100% 1,242,741,110 1,238,557,132 2,481,298,242 0.19% 0.01% 2020 2,493,410 104,354 [2] 2,597,764 100% 1,332,924,560 1,302,307,451 2,635,232,011 0.19% 0.01% 2021 2,635,767 104,548 [2] 2,740,315 100% 1,404,588,081 1,346,717,824 2,751,305,905 0.19% 0.01% Source: Contra Costa County
Notes:
[1] Redevelopment Agency [Component Financial Unit] dissolved effective 02/01/2012 pursuant to State Law (ABx1-26) [2] The City of Pinole serves as the Successor Agency to the Pinole Redevelopemnt Agency which dissolved effective 02/01/2012 pursuant to State Law (ABx1-26) [3] Pursuant to Revenue & Taxation Code 4701 all property taxes levied are distributed by County Costa County to the City (reference Footnote 1)

CITY OF PINOLE

PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN FISCAL YEARS
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
$9.00
$10.00
$11.00
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Levied & Collected
$0.80
$1.30
$1.80
$2.30
$2.80
$3.30
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Assessed Value
131 323 of 369
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 [a] [b]
Major Business Groups
Autos and Transportation 121,195 $ 127,938 $ 124,234 $ 128,585 $ 143,531 $ 142,634 $ 129,758 $ 149,328 $ 125,285 $ 131,364 $ Building and Construction 177,786 194,806 205,843 228,851 235,399 256,743 252,433 248,668 240,333 287,086 Business and Industry 90,571 114,078 90,046 74,621 74,664 69,064 68,148 81,173 80,562 66,279 Food and Drugs 322,851 327,071 332,824 369,426 354,347 366,064 376,151 408,251 422,665 467,507 Fuel and Service Stations 392,505 428,169 426,327 431,453 393,583 355,390 362,450 482,117 370,686 412,186 General Consumer Goods 1,147,145 1,182,031 1,182,294 1,229,774 1,298,176 1,343,309 1,347,691 1,323,599 1,110,168 1,299,328 Restaurants and Hotels 533,913 576,500 618,795 660,763 711,659 715,966 715,885 813,411 724,290 741,032 Adjustments & Others - - 35,173 (50,925) 24,448 - 506 5,972 1,211 484 Point of Sale s/totals 2,785,966 2,950,593 3,015,536 3,072,548 3,235,807 3,249,170 3,253,022 3,512,519 3,075,200 3,405,266 County Pool Allocations 320,353 311,692 366,939 408,386 431,500 499,708 490,660 519,400 747,782 927,704 State Pool Allocations 1,000 1,571 2,064 2,129 2,400 2,637 1,903 1,829 1,710 2,650 Local Transaction Tax [a] 1,592,160 1,684,995 1,796,832 1,894,578 3,789,711 3,953,872 4,089,586 4,402,698 3,944,917 4,654,311Administrative Cost - SBE (48,012) (49,811) (54,106) (58,890) (82,268) (95,537) (90,183) (87,797) (79,691) (62,570) Fiscal Year Totals 4,651,467 $ 4,899,040 $ 5,127,265 $ 5,318,751 $ 7,377,150 $ 7,609,850 $ 7,744,988 $ 8,348,649 $ 7,689,918 $ 8,927,361 $ City Direct Sales Tax Rate 1.25% 1.25% 1.25% 1.25% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% Notes:
[a] "Adjustment" reflects "True-up" reconciliation payment for "Triple-Flip" Reimbursement for State Fiscal Recovery Bond Financing Program.[b] Effective 04/01/15 additional 1/2% local transaction tax (Measure "S" 2014) authorized Source: HdL Coren & Cone

CITY OF PINOLE

TAXABLE SALES BY CATEGORY

LAST TEN FISCAL YEARS YEARS
132 324 of 369
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Taxing Jurisdiction / Purpose [c]
Overlapping Sales TaxesState General Fund 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%State Fiscal Recovery Fund 0.25% 0.25% 0.25% 0.25% 0.25% 0.00% 0.00% 0.00% 0.00% 0.00%State Education Protection Account 0.00% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%County Health & Welfare Programs 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% [a] City/County Public Safety Programs 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% County of Contra Costa Transactions and Use Tax 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.50%Contra Costa Transportation Authority 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%Bay Area Rapid Transit 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%West County Transit Authority 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% Overlapping Sales Taxes 7.50% 7.75% 7.75% 7.75% 7.75% 7.50% 7.50% 7.50% 7.50% 8.00% City Direct Sales TaxesBradley Burns Authority 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% [b] Measure "S" Authority - 2006 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% [c] Measure "S" Authority - 2014 0.00% 0.00% 0.00% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% Direct Sales Taxes 1.25% 1.25% 1.25% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% [d] Total Sales Tax Levy - City of Pinole 8.75% 9.00% 9.00% 9.50% 9.50% 9.25% 9.25% 9.25% 9.25% 9.75% Notes:
[a] Effective 01/01/94 SCA-1 (Proposition-172) additional 1/2% statewide sales tax restricted to public safety programs[b] Effective 04/01/07 additional 1/2% local transaction tax (Measure "S" 2006) authorized [c] Effective 04/01/15 additional 1/2% local transaction tax (Measure "S" 2014) authorized [d] The City direct sales tax rate may only be changed with ratification by the electors of the City. The maximum levy permited by the State Legislature for combined direct and overlapping sales tax is 10.25%Source: California Department of Tax and Fee Administration

CITY OF PINOLE

DIRECT AND OVERLAPPING SALES TAX RATES

LAST TEN FISCAL YEARS YEARS
133 325 of 369

BUSINESS NAME BUSINESS CATEGORY

APPIAN CHEVRON SERVICE STATIONS

BEST BUY ELECTRONICS/APPLIANCE STORES

BEVMO CONVENIENCE STORES/LIQUOR

BURLINGTON COAT FACTORY FAMILY APPAREL

CENTRAL CONCRETE SUPPLY BUILDING MATERIALS

DOLAN'S PINOLE LUMBER BUILDING MATERIALS

FOOD MAXX GROCERY STORES

IN-N-OUT BURGER QUICK-SERVICE RESTAURANTS

MICHAELS ARTS & CRAFTS ART/GIFT/NOVELTY STORES

O'REILLY AUTO PARTS AUTOMOTIVE SUPPLY STORES

PETSMART SPECIALTY STORES

PINOLE CHEVRON SERVICE STATIONS

PINOLE FLYERS SERVICE STATIONS

PINOLE SHELL SERVICE STATIONS

PINOLE VALLEY ARCO SERVICE STATIONS

SAFEWAY GROCERY STORES

SMART STOP SERVICE STATIONS

STAPLES OFFICE SUPPLIES/FURNITURE

TARGET DISCOUNT DEPARTMENT STORES

TJ MAXX FAMILY APPAREL

TRADER JOES GROCERY STORES

ULTA BEAUTY SPECIALTY STORES

VALERO CORNER STORE SERVICE STATIONS

WALGREENS PHARMACIES AND DRUG STORES

WESTLAKE ACE HARDWARE BUILDING MATERIALS
PERCENT OF FISCAL YEAR TOTAL PAID BY TOP 25 ACCOUNTS = 61.26% Source: State Board of Equilization (HdL Companies)
Note: Information is shown in alphabetical order.

CITY OF PINOLE
TOP 25 SALES TAX PRODUCERS
YEAR ENDED JUNE 30, 2021
134 326 of 369
Fiscal
Year
Redevelopment
Bonds
Pension
Obligation
Bonds
Notes and
Mortgages
Capital
Leases
Wastewater
Revenue
Bonds
Clean Water
State
Revolving
Fund
Total Primary
Government
Percentage
of Personal
Income Per Capita
2012 45,315,000 $ 5,047,180 $ 987,385 $ 296,925 $ 9,420,000 $ - $ 61,066,490 $ 7.3% 3,308 $ 2013 [a] 4,750,189 [a] 259,630 9,220,000 - 14,229,819 1.7% 762 2014 [a] 4,478,467 [a] 608,209 9,005,000 - 14,091,676 1.7% 755 2015 [a] 4,206,695 [a] 506,973 8,775,000 - 13,488,668 1.4% 718 2016 [a] 3,941,977 [a] 402,514 8,251,000 - 12,595,491 1.3% 665 2017 [a] 3,686,615 [a] 294,724 7,866,000 6,786,599 18,633,938 1.7% 982 2018 [a] 3,436,175 [a] 183,490 7,576,000 15,164,357 26,360,022 2.3% 1,370 2019 [a] 3,194,853 [a] 68,695 7,278,000 21,741,571 32,283,119 2.6% 1,656 2020 [a] 2,961,839 [a] - 6,968,000 25,456,833 35,386,672 2.5% 1,814 2021 [a] 2,734,450 [a] - 6,650,000 24,773,976 34,158,426 2.2% 1,764 Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements. [a]
Sources:

City of Pinole Finance Department State of California Department of FinanceUS Department of Commerce, Bureau of Economic Analysis Due to the dissolution of Revelopment Agencies effective February 1, 2012, these bonds and notes were transferred to the Successor Agency to the Pinole Redevelopment Agency.

Governmental Activities

CITY OF PINOLE

RATIOS OF OUTSTANDING DEBT BY TYPE

LAST TEN FISCAL YEARS YEARS
Business-type Activities
135 327 of 369
Fiscal
Year
Redevelopment
Bonds
Pension
Obligation
Bonds
Bonds Paid with
Restricted
Redevelopment Tax
Increments
Total - Net of
Bonds Paid with
Restricted Tax
Levies
Percentage of
Taxable Value
of Property Per Capita
2012 45,315,000 $ $ 5,047,180 $ (45,315,000) $ 5,047,180 0.59% [a] 272 $ 2013 [b] 4,750,189 4,750,189 - 0.58% [a] 254
2014 [b] 4,478,467 4,478,467 - 0.52% [a] 238
2015 [b] 4,206,695 4,206,695 - 0.42% [a] 222
2016 [b] 3,941,977 3,941,977 - 0.38% [a] 210
2017 [b] 3,986,615 3,986,615 - 0.36% [a] 210
2018 [b] 3,436,175 3,436,175 - 0.29% [a] 179
2019 [b] 3,194,853 3,194,853 - 0.26% [a] 164
2020 [b] 2,961,839 2,961,839 - 0.22% [a] 152
2021 [b] 2,734,450 2,734,450 - 0.19% [a] 141
Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements. [a] Based on Assessment Value net of restricted Redevelopment Tax Increment [b]
Sources:

City Finance Department
Contra Costa County Office of the Auditor-Controller
General Bonded Debt Outstanding

CITY OF PINOLE

RATIOS OF NET GENERAL BONDED DEBT OUTSTANDING,

LAST TEN FISCAL YEARS YEARS
Due to the dissolution of Revelopment Agencies effective February 1, 2012, these bonds and notes were transferred to the Successor Agency to the Pinole Redevelopment Agency. 136 328 of 369
2020-21 Assessed Valuation: $ 2,775,957,905
Total Debt [1] City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2021 % Applicable Debt 6/30/21 Bay Area Rapid Transit District $ 1,871,890,000 0.324% $ 6,064,924 Contra Costa Community College District 596,325,000 1.231% 7,340,761 West Contra Costa Unified School District 1,214,983,000 7.863% 95,534,113 West Contra Costa Healthcare District Parcel Tax Obligations 51,237,000 7.386% 3,784,365 East Bay Regional Park District 133,170,000 0.519% 691,152 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 113,415,315
DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Contra Costa County General Fund Obligations $ 254,570,000 1.227% $ 3,123,574 Contra Costa County Pension Obligation Bonds 44,925,000 1.227% 551,230 Contra Costa County Fire Protection Pension Obligations 26,670,000 0.011% 2,934 West Contra Costa Unified School District Certificates of Participation 7,105,000 7.863% 558,666 City of Pinole Pension Obligation Bonds 2,734,449 100.000% 2,734,449 Alameda-Contra Costa Transit District Authority 11,655,000 0.034% 3,963 GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 6,974,816 Less: Contra Costa County obligations supported from revenue funds 849,852 NET DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 6,124,964 OVERLAPPING TAX INCREMENT DEBT (Successor Agency): $ 11,915,000 100.000% 11,915,000 $ TOTAL DIRECT DEBT $ 2,734,449
TOTAL GROSS OVERLAPPING DEBT $ 129,570,682
TOTAL NET OVERLAPPING DEBT $ 128,720,830
GROSS COMBINED TOTAL DEBT $ [2] 132,305,131
NET COMBINED TOTAL DEBT $ 131,455,279
Ratios to 2020-21 Assessed Valuation:

Total Gross Direct and Overlapping Tax and Assessment Debt........……….. 4.09% Total Direct Debt ($2,734,449)...................................…...................................... 0.10% Gross Combined Total Debt.............................................................................…. 4.77% Net Combined Total Debt ………………………………………………………. 4.74%
Ratios to Redevelopment Successor Agency Incremental Valuation ($1,346,717,824):

Total Overlapping Tax Increment Debt …………………………………………….. 0.88% Notes:
[2] Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.

Source : California Municipal Statistics, Inc.
[1] The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.

CITY OF PINOLE

DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
JUNE 30, 2021
137 329 of 369
ASSESSED VALUATION:

Secured property assessed value, net of exempt real property 2,751,305,905 $ BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) [a] $ 103,173,971 AMOUNT OF DEBT SUBJECT TO LIMIT: $ 2,734,450
LEGAL BONDED DEBT MARGIN: $ 105,908,421
Fiscal Year
Total assessed
value of all real and
personal property Debt Limit [a]
Total Net Debt
Applicable to Limit Legal Debt Margin
Total net Debt
applicable to the
limit as a
percentage of debt
limit
2012 1,712,520,228 $ $ 64,219,509 $ 5,047,180 $ 59,172,329 7.86% 2013 1,653,637,015 62,011,388 4,750,189 57,261,199 7.66% 2014 1,731,807,354 64,942,776 4,478,467 60,464,309 6.90% 2015 1,947,207,720 73,020,290 4,206,695 68,813,595 5.76% 2016 2,085,916,313 78,221,862 3,941,977 74,279,885 5.04% 2017 2,205,694,206 82,713,533 3,686,615 79,026,918 4.46% 2018 2,333,724,165 87,514,656 3,436,176 84,078,480 3.93% 2019 2,481,298,242 93,048,684 3,194,854 89,853,830 3.43% 2020 2,635,232,011 98,821,200 2,961,839 95,859,361 3.00% 2021 2,751,305,905 103,173,971 2,734,450 100,439,521 2.65% Note:

Source: City of Pinole Finance Department
[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.

CITY OF PINOLE

COMPUTATION OF LEGAL DEBT MARGIN

LAST TEN FISCAL YEARS
138 330 of 369
Net Revenue
Fiscal Gross Operating Available for
Year Revenue [a] Expenses [b] Debt Service Principal Interest Total Coverage 2012 5,633,904 $ 4,369,206 $ 1,264,699 $ 200,000 $ 428,973 $ 628,973 $ 2.01 2013 5,961,605 4,806,424 1,155,182 200,000 420,973 620,973 1.86 2014 6,473,147 4,232,789 2,240,358 215,000 411,329 626,329 3.58 2015 6,912,213 4,253,609 2,658,605 230,000 399,648 629,648 4.22 2016 7,541,964 4,688,712 2,853,252 240,000 387,310 627,310 4.55 2017 6,315,563 4,055,187 2,260,376 385,000 157,267 542,267 4.17 2018 6,524,537 4,676,225 1,848,313 290,000 227,770 517,770 3.57 2019 7,211,834 4,413,017 2,798,818 298,000 219,097 517,097 5.41 2020 7,093,734 4,986,437 2,107,297 310,000 210,129 520,129 4.05 2021 7,527,056 6,067,198 1,459,858 318,000 200,866 518,866 2.81 Notes:
[a]
[b]
Source: City of Pinole Finance
Includes all wastewater operating revenue, non-operating interest revenue, connection fees and other non-operating revenue.

Includes all wastewater operating expenses less depreciation.

CITY OF PINOLE

REVENUE BOND COVERAGE

WASTEWATER REVENUE BONDS

LAST TEN FISCAL YEARS
Debt Service Requirements

0.00 1.00

2.00 3.00

4.00 5.00

6.00 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Coverage
139 331 of 369
Fiscal Year
City Population
[a]
Personal Income
[b]
Median
Household
Income [c]
Per Capita
Personal
Income
School
Enrollment [d]
Unemployment
Rate [e]
2012 18,560 1,029,430,400 93,500 55,465 3,543 5.8%2013 18,665 1,064,110,315 93,500 57,011 3,603 5.0%2014 18,794 1,158,424,572 93,500 61,638 3,483 3.9%2015 18,946 1,207,845,392 93,500 63,752 3,348 3.9%2016 18,739 1,007,052,599 93,600 53,741 3,260 4.9%2017 18,975 1,069,696,650 97,400 56,374 3,192 4.1%2018 19,236 1,150,235,856 104,400 59,796 3,190 3.5%2019 19,498 1,239,234,386 111,700 63,557 3,255 3.2%2020 19,505 1,419,281,325 119,200 72,765 3,463 13.2% 2021 19,369 1,579,580,688 125,600 81,552 3,498 7.0%
Data Sources:(a) State of California Department of Finance, estimated population. (b) Bureau of Economic Analysis, U.S. Department of Commerce.(c) State of California, Department of Housing and Community Development, Division of Housig Policy Development.(d) State of California Department of Education.(e) State of California Employment Development Department

CITY OF PINOLE

DEMOGRAPHIC STATISTICS

LAST TEN FISCAL YEARS

8.0%6.0%4.0%2.0%0.0%

14.0%12.0%10.0%
Unemployment Rate
19,600 19,400 19,200 19,000 18,800 18,600 18,400 18,200 18,000 City Population
140 332 of 369
Employer
Employee
Count
Percentage
of City Total Employer
Employee
Count
Percentage
of City Total
West Contra Costa USD 2.07% West Contra Costa USD 201 2.92% 277 Target 178 1.84% Lucky's / Food Max 1.78% 169
Kaiser Health Center 1.46% Target 142 136 1.43%
City of Pinole 1.28% City of Pinole 124 1.06% 101
Sprouts Farmers Market 1.24% Best Buy 120 1.14% 108
Lucky 1.06% K-Mart 103 1.08% 103
In-N-Out Burger 1.04% Safeway 101 0.82% 78
MV Public Transportation, Inc. 100 1.03% Trader Joe's 0.75% 71 Trader joe's 99 1.02% Burlington Coat Factory 0.73% 69
Best Buy 0.94% Round Table Pizza 91 0.68% 65
Top 10 Employer Count 1,259 1,177
Total Workforce 12.98% 9,700 12.39% 9,500
Data Sources:

City of Pinole (Business Licensing)
California Department of Education
Employment Development Department

CITY OF PINOLE

CURRENT AND NINE YEARS AGO
2021 2012

PRINCIPAL EMPLOYERS
141 333 of 369
[b]
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Function / Program [a]
General government
Administration 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.5 5.5 6.5
Finance 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5
Planning 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Building 1.0 1.0 2.0 2.0 2.0 2.5 3.5 3.5 4.0 4.0
Other 2.0 4.0 4.0 4.0 3.0 3.0 3.0 3.0 2.8 2.8
Police
Sworn 28.0 27.0 27.0 27.0 27.0 27.0 28.0 28.0 28.0 28.0 Non-sworn 13.0 13.0 13.0 13.0 14.5 14.5 17.5 18.0 18.5 18.5 Fire
Sworn 15.0 15.0 15.0 15.0 15.0 14.0 14.0 14.0 14.0 14.0 Non-sworn - - - - 0.5 1.0 1.0 1.0 1.0 1.0
Public Works
Engineering 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0
Maintenance 6.0 6.0 6.0 6.0 10.0 10.0 10.0 10.0 11.3 11.3 Redevelopment 3.0 - - - - - - - - -
Parks and recreation 8.0 8.0 11.0 11.0 13.0 13.0 13.0 13.0 11.5 11.5 Wastewater collection and treatment 13.0 13.0 13.0 13.0 10.5 10.5 10.5 10.5 10.5 10.5 Total 101.5 99.5 103.5 103.5 108.0 108.0 113.0 114.0 114.4 115.4 Notes:
[a] Paid employees only (excluding reserves and volunteers)[b] Redevelopment Staffing eliminated effective 02/01/2012, following dissolution of Agency pursuant to new State Legislation (ABx1-26) Source: City of Pinole Annual Budget Documents

CITY OF PINOLE

FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS YEARS
142 334 of 369
Date of Incorporation 1903
Form of Government Council-Manager
Number of Employees(including police & fire) Full-time 86 Part-time 30Area in square miles 5 square miles Statistics by Fiscal Year 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Fire Protection :

Number of fire personnel & officers (incl. Reserves) 15 15 15 15 15 15 15 17 15 15 Number of calls answered 2,086 2,574 2,493 2,515 2,647 2,406 1,908 2,205 2,250 2,000 Number of inspections conducted 375* 231 168 89 45 404 60 7 48 55 Number of building plan reviews 35 292821346650253261
Number of fire investigations Not Available Not Available Not Available Not Available Not Available Not Available 2 Not Available Not Available 51Police Protection :

Number of police personnel & officers (incl. Reserves) 46 46 46 45.5 41.5 41.5 40 40 40 41 Number of police personnel per thousand population 2.37 2.36 2.36 2.37 2.19 2.21 2.11 2.13 2.14 2.21 Community Development:

Number of residential building permits 905 843 749 690 777 1027 1061 800 651 608 Valuation of residential building permits 8,978,646 $ 7,043,338 $ 8,012,647 $ 7,293,429 $ 8,613,376 $ 11,969,126 $ 6,485,860 $ 6,140,140 $ 4,974,080 $ 4,240,627 $ Number of commercial building permits 45 43 153 84 92 46 22 43 59 46 Valuation of commercial building permits 2,453,802 $ 2,749,091 $ 4,354,070 $ 11,752,779 $ 2,275,774 $ 8,053,064 $ 1,961,346 $ 5,671,577 $ 5,187,465 $ 5,547,362 $ Sewer System:

Daily average treatment in gallons 2,553,562 2,255,055 2,277,331 2,151,096 2,914,000 2,381,151 2,449,863 2,579,625 2,776,986 2,907,205 Maximum daily capacity of treatment plant in gallons 4,060,000 4,060,000 4,060,000 4,060,000 4,060,000 4,060,000 4,060,000 4,060,000 4,060,000 4,060,000 Source: City of Pinole Finance
*A contributing factor to the increase is the implementation of the Fire operation permit.

CITY OF PINOLE

OPERATING INDICATORS BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS
$
$8,000,000 $6,000,000 $4,000,000 $2,000,000
$14,000,000 $12,000,000 $10,000,000
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Valuation of residential buildingpermits Valuation of commercialbuilding permits 50 504540353025201510
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Number of policepersonnel & officers(incl. Reserves) Number of policepersonnel per thousandpopulation 143 335 of 369
City Streets:

Miles of streets 63 Number of street lights 373 (city owned) 971 (electric & private utility)
Statistics by Fiscal Year 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Fire Protection : Number of stations 1111111111
Police Protection : Number of stations 1111111111
Number of patrol units 13 13 13 13 13 13 13 13 13 13
Number of security units 2222222222
Recreation and culture : Swim Center 1111111111
Community Theater 1111111111 Senior Center 1111111111
Youth Center 1111111111
Pre-school Center 1111111111
Number of parks & park acreage
15; 64 total
acres
15; 64 total
acres
15; 64 total
acres
15; 64 total
acres
15; 64 total
acres
15; 64 total
acres
15; 64 total
acres
15; 64 total
acres
15; 64 total
acres
15; 64 total
acres
Sewer System: Sanitary sewers 50 miles 50 miles 50 miles 50 miles 50 miles 50 miles 50 miles 50 miles 50 miles 50 miles Miles of storm drains 34 miles 34 miles 34 miles 34 miles 34 miles 34 miles 34 miles 34 miles 34 miles 34 miles Number of treatment plants 1111111111 Number of service connections 5,416 5,416 5,416 5,416 5,416 5,416 5,416 5,414 5,414 5,423 Schools: Elementary-public 5555444444
Elementary-private 1111111111
Junior High School-public 1 1 1 1 1 1 1 1 1 1
High School-public 1111111111
Source: City of Pinole Finance

CITY OF PINOLE

CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS
144 336 of 369
Pinole, California
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
For the year ended June 30, 2021

ATTACHMENT B
337 of 369
338 of 369

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
Independent Auditor’s Report
To the Honorable Mayor and Members of the City Council
of the City of Pinole
Pinole, 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 financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Pinole, California (City), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements and have issued our report thereon dated December 30, 2021.

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 entity’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 have not been identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
339 of 369
To the Honorable Mayor and Members of the City Council
of the City of Pinole
Pinole, California

Page 2 ends

2 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 financial statements. 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 or other matters that are required to be reported under Government Auditing Standards.

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 results of that testing, and not to provide an opinion on the effectiveness of the entity’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 entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Badawi & Associates, CPAs
Berkeley, California
December 30, 2021
340 of 369
2006 Measure S Fund
Pinole, California
Independent Accountants’ Report on
Agreed-Upon Procedures Applied to
Schedule of Measure S Revenues and
Expenditures
For the year ended June 30, 2021

ATTACHMENT C
341 of 369
342 of 369
INDEPENDENT ACCOUNTANT’S REPORT
To the Honorable Mayor and Members of the City Council
of the City of Pinole
Pinole, California
We have performed the procedures enumerated below on the attached schedule of 2006 Measure S revenues and expenditures (Schedule) for the year ended June 30, 2021. The City of Pinole (City)’s management is responsible for the Measure S revenue and expenditures.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of assisting the City with respect to the Schedule for the year ended June 30, 2021. 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 the associated findings are as follows:

1. Verify that Measure S transactions were accounted for separately in the accounting records to allow for accountability.

Finding: No exceptions were noted as a result of our procedures.

2. Verify that Measure S tax revenue was deposited in total into the City’s accounts by obtaining remittance advices from the State of California for amounts deposited into the Measure S Fund.

Finding: No exceptions were noted as a result of our procedures.

3. Review salary reports and expenditure details to verify that the Measure S Fund was charged for the purpose that was specified to the registered voters of the City through election materials and City resolutions distributed to the voters.

Finding: No exceptions were noted as a result of our procedures.

4. Compare actual revenues and expenses to budgeted amounts to determine that variances were appropriate.

Finding: No exceptions were noted as a result of our procedures. 343 of 369
To the Honorable Mayor and Members of the City Council
of the City of Pinole
Pinole, California
2 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 AICPA. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the Schedule for the year ended June 30, 2021. 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.

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 the City Council and management of the City, and is not intended to be and should not be used by anyone other than these specified parties.

Badawi & Associates, CPAs
Berkeley, California
January 13, 2022
344 of 369
City of Pinole 2006 Measure S Fund
Schedule of Revenues and Expenditures
For the year ended June 30, 2021
3 *This schedule is prepared using the modified accrual basis of accounting. 345 of 369
2014 Measure S Fund
Pinole, California
Independent Accountants’ Report on
Agreed-Upon Procedures Applied to
Schedule of Measure S Revenues and
Expenditures
For the year ended June 30, 2021

ATTACHMENT D
346 of 369
347 of 369
INDEPENDENT ACCOUNTANT’S REPORT
To the Honorable Mayor and Members of the City Council
of the City of Pinole
Pinole, California
We have performed the procedures enumerated below on the attached schedule of 2014 Measure S revenues and expenditures (Schedule) for the year ended June 30, 2021. The City of Pinole (City)’s management is responsible for the Measure S revenue and expenditures.

The procedures and the associated findings are as follows:

1. Verify that Measure S transactions were accounted for separately in the accounting records to allow for accountability.

Finding: No exceptions were noted as a result of our procedures.

2. Verify that Measure S tax revenue was deposited in total into the City’s accounts by obtaining remittance advices from the State of California for amounts deposited into the Measure S Fund.

Finding: No exceptions were noted as a result of our procedures.

4. Compare actual revenues and expenses to budgeted amounts to determine that variances were appropriate.

Finding: No exceptions were noted as a result of our procedures. 348 of 369
To the Honorable Mayor and Members of the City Council
of the City of Pinole
Pinole, California
2 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 AICPA. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the Schedule for the year ended June 30, 2021. 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.

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.

Badawi & Associates, CPAs
Berkeley, California
January 13, 2022
349 of 369
City of Pinole 2014 Measure S Fund
Schedule of Revenues and Expenditures
For the year ended June 30, 2021
3 *This schedule is prepared using the modified accrual basis of accounting. 350 of 369
Pinole, California
Auditors’ Communication with
Those Charged with Governance
For the year ended June 30, 2021

ATTACHMENT E
351 of 369
352 of 369
December 30, 2021
To The Honorable Mayor and Members
of the City Council of the City of Pinole
Pinole, California
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Pinole, California (City) for the year ended June 30, 2021. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit.

Our Responsibilities under U.S. Generally Accepted Auditing Standards and Government Auditing Standards
As stated in our engagement letter dated April 20, 2021, our responsibility, as described by professional standards, is to express opinions about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. Our audit of the financial statements does not relieve you or management of your responsibilities.

As part of our audit, we considered the internal control of the City. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning internal control.

As part of obtaining reasonable assurance about whether the financial statements are free from material misstatement, we performed tests of the City’s compliance with certain provisions of laws, regulations, contracts, and grants. However, providing an opinion on compliance with those provisions is not an objective of our audit.

Planned Scope and Timing of the Audit
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit involves judgment about the number of transactions to be examined and the areas to be tested.

Our audit included obtaining an understanding of the city and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing, and extent of further audit procedures. Material misstatements may result from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the entity or to acts by management or employees acting on behalf of the entity.

We performed the audit according to the timing previously communicated to you on the engagement letter.
353 of 369
To The Honorable Mayor and Members
of the City Council of the City of Pinole
Pinole, California

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Pinole City CouncilFebruary 1, 2022

Pinole City Council
February 1, 2022