is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements
In performing an audit in accordance with GAAS, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information, defined benefit pension plan information, and OPEB plan information on pages 5-18 and 91-95 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.
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To the Honorable Mayor and Members of the City Council
of the City of Pinole
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements, budgetary comparison schedules, and the schedule of section 115 pension fund on pages 98 to 123 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, budgetary comparison schedules 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, combining and individual nonmajor fund financial statements, the budgetary comparison schedules, and the schedule of section 115 pension fund on pages 98 to 123 are fairly stated in all material respects in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the ACFR. The other information comprises the introductory section and the statistical section but does not include the financial statements and our auditor's report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 30, 2022 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of 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 & Associates, CPAs
Berkeley, California
December 30, 2022
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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 (FY) ended June 30, 2022 (FY 2021/22). 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
The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of FY 2021/22 by $37.7 million (net position). Of this amount, $34.1 million is restricted for specific purposes (restricted net position), $44.6 million is the net investment in capital assets and $41.2 million represents a deficit in unrestricted net position. The City’s net position decreased by $5.9 million, a 14% decrease at the close of FY 2021/22 as compared to FY 2020/21. This decrease is primarily the result of a substantial increase in deferred inflow of resources for pension related amounts. Overall, governmental activities net position decreased by $6.2 million while business-type activities increased by $0.3 million. Governmental funds reported ending balances of $54.3 million, a decrease of $2.3 million in comparison to the prior FY 2020/21.
The General Fund balance closed at $35.3 million, of which $9.4 million is unassigned.
GENERAL FUND BUDGETARY HIGHLIGHTS
Actual General Fund revenues totaling $19.1 million were $2.0 million, or 9% lower than the final total revenue budget of $21.0 million. Actual revenues were lower primarily attributable to significant interest income loss.
Actual General Fund expenditures totaling $21.9 million were $4.2 million, or 16% less than the total final expenditure budget of $26.1 million. The savings primarily resulted from lower actual expenditures in capital outlay due to deferred capital improvements.
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.
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. 5 1062 of 1216
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).
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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. 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.
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 government-wide 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 2021/22 and FY 2020/21. The Statement of Net Position will be discussed first, followed by a discussion of the Changes in Net Position.
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The following table is a summary of the Statement of Net Position as of June 30, 2022 (2022) and June 30, 2021 (2021).
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 $37.7 million at the close of FY 2021/22. The City’s combined net position decreased 13.5%, or $5.9 million from the prior fiscal year.
This is primarily a result of changes in business activities due to a substantial increase in deferred inflow of resources for pension related amounts. CalPERS reported a large return on plan assets during measurement period 2021; and most of this gain is deferred to be amortized for future years. 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 $44.6 million (118% 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 $0.8 million (Note 6).
Restricted net position of $34.1 million (91% of the total) represents resources that are subject to external restrictions on how they may be used. Of this amount, $7.7 million represents housing net position with $1.2 million of that amount representing properties held for housing resale or redevelopment (Note 5).
2022 2021 2022 2021 2022 2021
Assets:
Current and other assets 59.0 $ 58.9 $ 19.5 $ 18.8 $ 78.5 $ 77.7 $ 1.00% Capital assets 31.0 31.8 43.3 44.2 75.1 75.2 -0.10%
Total assets 89.9 90.8 62.8 63.0 153.6 152.9 0.50%
Deferred outflows of resources 14.3 15.7 1.6 1.7 15.9 17.4 -8.60% Liabilities:
Current liabilities 2.3 4.1 0.7 0.8 4.8 3.1 54.80%
Long-term liabilities 78.6 64.6 37.4 39.8 102.0 118.4 -13.90% Total liabilities 80.9 68.7 38.1 40.6 106.8 121.5 12.10% Deferred inflows of resources 22.6 4.7 2.4 0.5 25.0 5.2 380.80% Net position:
Net Investment in capital assets 31.7 31.0 12.9 12.8 44.6 43.8 1.80% Restricted 33.5 34.1 33.5 34.1 1.80%
Unrestricted (44.5) (52.2) 11.0 10.8 (41.2) (33.7) 22.20% Total net position $ 20.1 13.8 $ 23.9 $ 23.6 $ 37.7 $ 43.6 $ -13.50% Governmental
Activities
Business-type
Activities Totals Total %
Change
Summary of Net Position
(in millions)
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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, increased by $7.4 million to negative $41.2 million. Governmental activities unrestricted net position was a negative $52.1 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 $11.0 million.
Analysis of Activities
The following table reflects the summary of changes in net position for governmental and business-type activities as of June 30, 2022 (2022) and June 30, 2021 (2021).
2022 2021 2022 2021 2022 2021
Revenues:
Program revenues:
Charges for services 6,054,032 $ 2,877,798 $ 7,770,772 $ 7,527,056 $ 13,824,804 $ 10,404,854 $ 32.90% Operating grants and
contributions 2,020,534 1,795,055 - 2,020,534 - 1,795,055 12.60% Capital grants and
contributions 712,728 - - 712,728 - 0.00% -
Total program revenue 8,787,294 4,672,853 7,770,772 7,527,056 16,558,066 12,199,909 35.70% General revenues:
Taxes:
Property tax 4,211,331 4,001,411 - 4,211,331 - 4,001,411 5.20% Sales tax 9,879,126 9,114,809 - 9,879,126 - 9,114,809 8.40% Franchise tax 788,146 751,598 - 788,146 - 751,598 4.90% Utility tax 2,495,570 2,329,873 - 2,495,570 - 2,329,873 7.10% Transient occupancy tax 487,687 446,105 - 487,687 - 446,105 9.30% Other taxes 566,726 468,987 - 566,726 - 468,987 20.80%
Motor Vehicle in Lieu 2,079,739 2,004,884 - 2,079,739 - 2,004,884 3.70% Gain on disposal of asset 275,759 83,209 - 275,759 - 231.40% 83,209 Investment Earnings (2,657,045) 3,020,587 (196,758) 44,259 (2,853,803) 3,064,846 -193.10% Miscellaneous 127,813 270,712 - 127,813 - 270,712 -52.80% Total general revenues 18,254,852 22,492,175 (196,758) 18,058,094 44,259 22,536,434 -19.90% Total revenues 27,042,146 27,165,028 7,574,014 7,571,315 22,025,731 34,736,343 -36.60% Expenses:
General government 5,539,414 4,957,477 - 5,539,414 - 4,957,477 11.70% Public safety 19,255,147 15,895,381 - 19,255,147 - 15,895,381 21.10% Public services 3,943,251 4,541,157 - 3,943,251 - 4,541,157 -13.20% Recreation 1,878,342 949,734 - 1,878,342 - 949,734 97.80% Community development 2,271,609 1,275,333 - 2,271,609 - 1,275,333 78.10% Interest and fiscal charges 388,876 331,218 - 388,876 - 331,218 17.40% Wastewater utility 7,266,212 6,688,530 7,266,212 6,688,530 8.60% Total expenses 33,276,639 27,950,300 7,266,212 6,688,530 40,542,851 34,638,830 17.00% Revenues over (under) expenses (6,234,493) (785,272) 307,802 882,785 (5,926,691) -6177.80% 97,513 Changes in Net Position (6,234,493) (785,272) 307,802 882,782 (5,926,691) -6177.80% 97,513 Net position, beginning of year,
restated 20,050,263 20,835,535 23,578,719 22,695,934 43,628,982 43,531,469 0.20% Net position, end of year 13,815,770 $ 20,050,263 $ 23,886,521 $ 23,578,719 $ 37,702,291 $ 43,628,982 $ -13.60% Governmental Activities Business-type Activities Totals Total % Change
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Governmental Activities
Governmental activities net position decreased by $6.2 million. Key elements of the change in net position are as follows:
Program revenue and charges for services reflected an increase of $4.1 million (88.0%) over FY 2020/21.
General revenue reflected a decrease of $4.2 million (18.8%) over FY 2020/21. This is largely attributable to a decrease in interest income of $2.7 million due to investment losses mainly in the Section 115 Pension Trust investment portfolio.
Expenses increased by $5.3 million (19.1%) over FY 2020/21. The most significant changes were in public safety with an increase of $3.4 million (21.1%), recreation with an increase of $0.9 million (97.8%), and community development with an increase of $0.9 million (78.1%).
Business-type Activities
Business-type activities net position increased by $0.3 million. Key elements of the change in net position are as follows:
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 selfsupporting 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. Program revenues increased $0.2 million (3.2%) over the prior fiscal year. There was an increase in expenses over the prior fiscal year of $0.6 million (8.6%). Depreciation expense is considered a cost of service in proprietary funds, which accounted for $1.2 million in FY 2021/22 (Note 6).
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 was approved for a loan in the amount of $26.7 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 fiveyear period, beginning July 1, 2013. The rate plan was amended July 17, 2018 by Resolution Number 2018-66. The 2021 monthly rate for single family residents was $71.44 and $60.72 for multi-family residents.
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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, 2022:
Governmental Fund Balances
General Fund
Other
Governmental
Funds
Total
Governmental
Funds
Nonspendable $ 45,296 $ 315,552 $ 360,848
Restricted 17,271,818
17,236,034
34,507,852
Assigned 8,533,768
2,069,680
10,603,448
Unassigned 9,405,968
(600,971)
8,804,997
Total Fund Balances $ 35,256,850 $ 19,020,295 $ 54,277,145 The City implemented GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions in fiscal year 2010-11 (Note 12). 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, 2022, the City’s governmental funds reported combined fund balances of $54.3 million, which is a decrease of $2.3 million (4.1%) when compared to the prior fiscal year, FY 2020/21. This largely results from a net decrease in the restricted fund balance due to interest income loss mostly in the pension fund.
Also, the unassigned fund balance decreased due to the funding of new positions, special projects, and normal cost escalation.
Nonspendable fund balances constitute $0.4 million, (0.7%) 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 $34.5 million, (63.6%) 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 $10.6 million (19.5%) 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 $8.8 million (16.2%) of the combined governmental fund balance and consist of amounts that have not been classified as nonspendable, restricted, or assigned.
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Analysis of Governmental Funds
General Fund
The designated major Governmental funds in FY 2021/22 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 decreased by $4.7 million (11.8%), as a net result of expenditures in excess of revenues in the current fiscal year of $2.8 million, and other financing uses in the amount of $1.9 million resulting from operating contributions to other operating funds.
General Fund revenue decreased by $4.5 million (19%) this fiscal year as compared to FY 2020/21. The largest component of this decrease was the loss of interest income resulting from negative returns on investments.
General Fund expenditures increased $2.0 million this fiscal year (9.9%) this fiscal year compared to FY 2020/21. This is primarily attributed to increases in public safety for salary and benefits costs including overtime and new hires; and payouts for a FLSA settlement agreement.
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Revenue
The following table highlights the General Fund revenue by source as of June 30, 2022.
Revenue by Source
% of Total FY 2021/22
Taxes and assessments 104% $ 19,811,026
Intergovernmental 0% 60,784
Contributions 0% 5,000
Investment earnings -14% (2,632,879)
Rents and ground leases 1% 97,103
Charges for services 9% 1,669,964
Other revenues 0% 60,058
Total 100% $ 19,071,056
Taxes and
assessments,
104%
Intergovernmental,
0%
Contributions, 0%
Investment
earnings, -14%
Rents and ground
leases, 1%
Charges for
services, 9% Other revenues,
0%
Revenue by Source
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Expenditures
The following table highlights the General Fund expenditures by function as of June 30, 2022.
Expenditures by Function
% of Total FY 2021/22
General administration 17% $ 3,777,341
Public safety 68% 14,837,394
Public services 6% 1,330,703
Recreation 1% 253,414
Community development 1% 263,181
Debt service 3% 633,696
Capital outlay 4% 813,040
Total 100% $ 21,908,769
General
administration, 17%
Public safety, 68%
Public works, 6%
Recreation, 1%
Community
development, 1%
Debt service, 3% Capital outlay, 4%
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 increased by $4.2 million this fiscal year as compared to FY 2020/21.
This is largely the result of increases in the collection of development impact fees due to a major multi-unit housing development, and the first installment of the City’s allocation of the American Rescue Plan Act (ARPA) funds.
Other governmental funds expenditures increased by $2.1 million this fiscal year as compared to FY 2020/21. This is largely due to net increases in the capital outlay category as a result of infrastructure projects completed this fiscal year, recreation personnel expenditures due to reorganization, and allowable expenditures funded by ARPA funds including small business assistance programs.
Proprietary Fund
Wastewater Utility
The Wastewater Utility Funds net position increased by $0.3 million, 1.3% over the prior fiscal year to a total of $23.9 million. Operating income for FY 2021/22 was $1.0 million, as revenues increased $0.2 million, while expenses increased $0.7 million.
The Fund’s Net Position is comprised of $12.9 million net investment in capital assets and $11.0 million in unrestricted net assets at June 30, 2022. 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. 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 7).
An advance of $4.3 million 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. At June 30, 2022, the balance outstanding on the advance was $862,883.
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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, 2022 was $44.6 million. This investment in capital assets includes: infrastructure, land, construction-inprogress, 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 6).
Capital assets for the governmental and business-type activities are presented below to illustrate changes from the prior year:
Capital Assets at Year-end
2022 2021 Net Change
Governmental Activities
Land (and Construction-in-progress) $ 7,492,981 $ 6,908,335 $ 418,521 Buildings & Improvements 16,048,771 15,959,889
88,882
Equipment 5,994,835 5,929,753
65,082
Vehicles 4,745,213 4,636,944
108,269
Streets & Roads 52,526,060 51,462,868
1,063,192
Storm Drains 2,880,999 2,880,999
-
Bridges 3,117,473 3,117,473
-
Parks 2,502,680 2,502,680
-
Leased Equipment 95,874 -
95,874
Less accumulated depreciation
(63,636,295) (62,390,133)
(1,246,162)
Totals 31,768,591 31,008,808 759,783
Business-type activities
Sewer Lines 7,650,185 7,650,185 -
Buildings & Improvements 51,766,267 51,765,446
821
Vehicles 1,013,454 1,008,306
5,148
Equipment 3,293,203 3,259,400
33,803
Less accumulated depreciation
(20,432,481) (19,475,768)
(956,713)
Totals $ 43,290,628 $ 44,207,569 $ (916,941)
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Debt Administration:
Each of the City’s debt issues is discussed in detail in Note 8 to the financial statements. At June 30, 2022 the City’s remaining long-term debt related to governmental activities is comprised of a Pension Obligation Bond, as follows:
Outstanding Debt
Balance Balance
Governmental Activity Debt: June 30, 2022 June 30, 2021 Net Change Pension Obligation bonds $ 2,512,885 $ 2,734,450 $ (221,565) Total Debt $ 2,512,885 $ 2,734,450 $ (221,565)
Other long-term liabilities related to governmental activities include accrued payroll obligations (vested compensated absences accrued).
Other Long-term Liabilities
Balance Balance
Other Long-term Liabilities: June 30, 2022 June 30, 2021 Net Change Compensated Absences $ 943,925 $ 945,597 $ (1,672)
Total Other Long-term Liabilities $ 943,925 $ 945,597 $ (1,672)
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:
Fiscal Year (FY) 2022/23 Operating and Capital Budget was adopted by the City Council on June 21, 2022. The Adopted FY 2022/23 Operating and Capital Budget is not structurally balanced.
Staff strongly believes that the 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 2022/23 Operating and Capital Budget does not include any use of the City’s General Reserve.
COVID-19 impacts to the community and the region continue to be monitored. City management is continuing to evaluate the financial effect it may potentially have on the revenues and city programs.
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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 total allocation was $4.6 million. The City Council approved the use of a portion of the ARPA funds for a small business assistance grant program and a community gift card program. A portion of the funds was also used to support mandatory weekly COVID testing for public safety staff. The City Council allocated the remaining funds to the General Fund in the FY 2022/23 budget to recapture revenue loss resulting from the economic impact of the pandemic. 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.
Long-Term Financial Plan for Fiscal Year (FY) 2022/23 – FY 2026/27 was adopted in June 2022.
It provides a five-year outlook and forecast of revenue and expenditures for all City funds. The LTFP identifies future potential opportunities and challenges that the City may proactively address through the annual budget and capital improvement planning processes. The financial forecast will be extended from a five-year to a ten-year horizon.
Capital Facility and Public Infrastructure projects are progressing according to construction scheduling, with primary focus on repairs to City streets/roadways and facilities. The City adopted a Five-Year Capital Improvement Plan on June 21, 2022 which identifies capital needs and funding for the next five years.
Successor Agency Dissolution activities are winding down as the former Redevelopment Agency’s outstanding debt service will be paid off in FY 2023/24. Dissolution is expected to occur sometime after the final debt service payment.
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, 2022
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments $ 35,484,793 $ 18,072,768 $ 53,557,561 Accounts receivable 3,308,577 339,808 3,648,385
Prepaid items 328,883 1,089,184 1,418,067
Inventory 31,965 3,446 35,411
Lease receivable 722,639 - 722,639
Land held for resale 1,222,070 1,222,070 -
Due from private-purpose trust fund 862,883 - 862,883
Restricted cash - pension 17,106,937 17,106,937 -
Capital assets:
Land and construction in progress 7,492,981 7,492,981 - Capital assets being depreciated, net 24,275,610 43,290,628 67,566,238 Total assets 90,837,338 62,795,834 153,633,172
DEFERRED OUTFLOWS OF RESOURCES
Pension related amounts 7,256,054 806,323 8,062,377
OPEB related amounts 7,048,785 783,199 7,831,984
Total deferred outflows of resources 14,304,839 1,589,522 15,894,361
LIABILITIES
Accounts Payable 2,062,986 705,848 2,768,834
Unearned revenue 1,815,138 1,815,138 -
Deposits payable 199,977 - 199,977
Long-term liabilities:
Due within one year 336,095 1,036,400 1,372,495
Due in more than one year 3,193,334 29,533,786 32,727,120 Other postemployment benefits:
Due in more than one year 39,814,616 4,423,846 44,238,462 Net pension liability:
Due in more than one year 21,271,573 2,363,487 23,635,060 Total liabilities 68,693,719 38,063,367 106,757,086
DEFERRED INFLOWS OF RESOURCES
Lease receivable 713,501 - 713,501
Pension related amounts 16,898,923 1,877,661 18,776,584 OPEB related amounts 5,020,263 557,807 5,578,070
Total deferred inflows of resources 22,632,687 2,435,468 25,068,155
NET POSITION
Net investment in capital assets 31,695,972 12,863,679 44,559,651 Restricted for:
Streets & roads 2,739,200 2,739,200 -
Capital projects & others 5,483,165 5,483,165 -
Public safety 1,267,536 1,267,536 -
Housing activities 7,746,133 7,746,133 -
Pension 17,106,937 17,106,937 -
Unrestricted (52,223,172) 11,022,842 (41,200,330)
Total net position $ 13,815,771 $ 23,886,521 $ 37,702,292 Primary Government
See accompanying notes to the basic financial statements. 23 1080 of 1216
City of Pinole
Statement of Activities
For the year ended June 30, 2022
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Primary Government:
Governmental activities:
General government $ 5,539,414 $ 2,106,826 $ 605,308 $ 28,327 Public safety 19,255,147 1,925,962 288,894 -
Public services 3,943,251 739,693 1,126,332 684,401
Recreation 1,878,342 379,374 - -
Community development 2,271,609 902,764 - -
Interest and fiscal charges 388,876 - - -
Total governmental activities 33,276,639 6,054,619 2,020,534 712,728 Business-type activities:
Wastewater utility 7,266,212 7,770,772 - -
Total business-type activities 7,266,212 7,770,772 - -
Total primary government $ 40,542,851 $ 13,825,391 $ 2,020,534 $ 712,728 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 1081 of 1216
Governmental Business-Type
Total Activities Activities Total
$ (2,798,953) 2,740,461 $ - $ (2,798,953) $
(17,040,291) 2,214,856 - (17,040,291)
(1,392,825) 2,550,426 - (1,392,825)
(1,498,968) 379,374 - (1,498,968)
(1,368,845) 902,764 - (1,368,845)
(388,876) - - (388,876)
(24,488,758) 8,787,881 - (24,488,758)
- 7,770,772 504,560 504,560
- 7,770,772 504,560 504,560
$ (24,488,758) 16,558,653 504,560 (23,984,198)
- 4,211,331 4,211,331
- 9,879,126 9,879,126
- 788,146 788,146
- 2,495,570 2,495,570
- 487,687 487,687
- 566,726 566,726
- 2,079,739 2,079,739
- 275,759 275,759
(2,657,632) (196,758) (2,854,390)
127,814 127,814 -
18,254,266 18,057,508 (196,758)
(6,234,492) 307,802 (5,926,690)
20,050,263 23,578,719 43,628,982
$ 13,815,771 $ 23,886,521 $ 37,702,292
and Changes in Net Position
Net (Expense) Revenue
Primary Government
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FUND
FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Funds Financial Statements
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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 1086 of 1216
City of Pinole
Balance Sheet
Governmental Funds
June 30, 2022
Housing
Programs Non-Major
General Special Revenue Governmental
Fund Fund Funds Totals
ASSETS
Cash and investments 16,347,650 $ 5,662,041 $ 13,475,102 $ 35,484,793 $ Accounts receivable 2,596,110 516 711,951 3,308,577
Due from other funds 724,358 - - 724,358
Due from private-purpose trust 862,883 - - 862,883
Prepaid items and supplies 13,331 - 315,552 328,883
Inventory - 31,965 - 31,965
Lease receivable 711,253 - 11,386 722,639
Land held for redevelopment 1,222,070 - 1,222,070 -
Restricted cash - Pension 17,106,937 - 17,106,937 -
Total assets $ 37,531,604 $ 7,747,510 $ 14,513,991 $ 59,793,105
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities 1,453,165 $ 1,377 $ 608,444 $ 2,062,986 $ Unearned revenue 39,715 - 1,775,423 1,815,138
Deposits payable 79,172 - 120,805 199,977
Due to other funds - - 724,358 724,358
Total liabilities 1,572,052 1,377 3,229,030 4,802,459
Deferred inflows of resources:
Lease receivable 702,702 - 10,799 713,501
Total deferred inflows of resources 702,702 - 10,799 713,501 Fund Balances:
Nonspendable 45,296 - 315,552 360,848
Restricted 17,271,818 7,746,133 9,489,901 34,507,852
Assigned - 8,533,768 2,069,680 10,603,448
Unassigned 9,405,968 - (600,971) 8,804,997
Total fund balances 35,256,850 7,746,133 11,274,162 54,277,145 Total liabilities, deferred inflows of
resources, and fund balances $ 37,531,604 $ 7,747,510 $ 14,513,991 $ 59,793,105 Major Funds
See accompanying notes to the basic financial statements. 30 1087 of 1216
City of Pinole
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2022
Total Fund Balances - Total Governmental Funds $ 54,277,145 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 $63,624,878 31,768,591
The assets, deferred outflows of resources, liabilities and deferred inflows of resources below are not due and payable in the current period and therefore are not reported in the Funds:
Long-term debt (3,529,429)
Deferred outflows related to pension 7,256,054
Deferred outflows related to OPEB 7,048,785
Total OPEB liability (39,814,616)
Net pension liability (21,271,573)
Deferred inflows related to pension (16,898,923)
Deferred inflows related to OPEB (5,020,263)
Net Position of Governmental Activities $ 13,815,771
See accompanying notes to the basic financial statements. 31 1088 of 1216
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 19,811,026 $ - $ 592,611 $ 20,403,637 $ Intergovernmental revenues 60,784 - 2,777,167 2,837,951 Loan repayments - 11,658 - 11,658
Contributions 5,000 - 5,574 10,574
Investment earnings (2,632,879) (44,948) (76,327) (2,754,154) Rents and ground leases 96,516 - 24,625 121,141
Charges for services 1,669,964 - 3,911,050 5,581,014
Fines, forfeitures and penalties 10,411 - 28,981 39,392 Other revenues 49,648 41,492 424,035 515,175
Total revenues 8,202 19,070,470 7,687,716 26,766,388
EXPENDITURES:
Current:
General government 3,777,341 - 997,908 4,775,249
Public safety 14,837,394 - 306,565 15,143,959
Public services 1,330,703 - 1,117,948 2,448,651
Recreation 253,414 - 1,319,669 1,573,083
Community development 263,181 97,581 1,782,386 2,143,148 Capital outlay 813,040 - 1,814,467 2,627,507
Debt service:
Principal 244,820 - - 244,820
Interest and fiscal charges 388,876 - - 388,876
Total expenditures 97,581 21,908,769 7,338,943 29,345,293
REVENUES OVER (UNDER)
EXPENDITURES (2,838,299) (89,379) 348,773 (2,578,905)
OTHER FINANCING SOURCES (USES):
Proceeds from sale of asset 257,182 - 22,172 279,354
Transfers in - 2,129,233 - 2,129,233
Transfers out (2,129,233) - (2,129,233) -
Total other financing sources (uses) (1,872,051) 2,151,405 - 279,354 Net change in fund balances (4,710,350) (89,379) 2,500,178 (2,299,551) FUND BALANCES:
Beginning of year 39,967,200 7,835,512 8,773,984 56,576,696 End of year $ 35,256,850 $ 7,746,133 $ 11,274,162 $ 54,277,145 City of Pinole
Governmental Funds
For the year ended June 30, 2022
Major Funds
See accompanying notes to the basic financial statements. 32 1089 of 1216
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, 2022
Net Change in Fund Balances - Total Governmental Funds $ (2,299,551) 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 $ 2,337,867
Gain on disposal of assets 275,759
Proceed from sale of assets (279,354)
Depreciation/amortization expense (1,670,364)
Total capital assets $ 663,908 663,908
Debt proceeds are reported as financing sources in governmental funds and thus contribute to the liabilitites and not affect the statement of activities.
Similarly, repayment of principal is an expenditure in the governmental funds, but reduces the liability in the statement of net position Repayment of debt and lease principal $ 244,820
Total $ 244,820 244,820
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 $ 1,671
Net difference between OPEB expense and contributions subsequent to the measurement date (1,349,828)
Net difference between pension expense and contributions subsequent to the measurement date (3,495,512)
Total $ (4,843,669) (4,843,669)
Change in Net Position of Governmental Activities $ (6,234,492) 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 1090 of 1216
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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.
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City of Pinole
Statement of Net Position
Proprietary Funds
Business-type
Activities
Wastewater Utility
Enterprise Fund
ASSETS
Current assets:
Cash and investments 18,072,768 $
Accounts receivable 339,808
Prepaid items 1,089,184
Inventory 3,446
Total current assets 19,505,206
Noncurrent assets:
Capital assets being depreciated, net 43,290,628
Total assets 62,795,834
DEFERRED OUTFLOWS OF RESOURCES
Pension and OPEB related amounts 1,589,522
Total deferred inflows of resources 1,589,522
LIABILITIES
Current liabilities:
Accounts Payable 705,848
Compensated absences - current 16,017
Bonds payable - current 341,000
Notes payable - current 679,383
Total current liabilities 1,742,248
Noncurrent liabilities:
Compensated absences - noncurrent 127,220
Net OPEB liability 4,423,846
Bonds payable - noncurrent 5,980,000
Notes payable - noncurrent 23,426,566
Net Pension liability 2,363,487
Total noncurrent liabilities 36,321,119
Total liabilities 38,063,367
DEFERRED INFLOWS OF RESOURCES
Pension and OPEB related amounts 2,435,468
Total deferred inflows of resources 2,435,468
NET POSITION
Net investment in capital assets 12,863,679
Unrestricted 11,022,842
Total net position $ 23,886,521
June 30, 2022
See accompanying notes to the basic financial statements. 36 1093 of 1216
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 7,770,772 $
Total operating revenues 7,770,772
OPERATING EXPENSES:
Sewer treatment plant 4,381,607
Sewer maintenance 1,158,652
Depreciation 1,196,496
Total operating expenses 6,736,755
OPERATING INCOME (LOSS): 1,034,017
NONOPERATING REVENUES (EXPENSES):
Gain on disposal of assets 67,262
Interest revenue (196,758)
Interest expense (596,719)
Total nonoperating revenues (expenses) (726,215)
Change in net position 307,802
NET POSITION:
Beginning of year 23,578,719
End of year $ 23,886,521
For the year ended June 30, 2022
See accompanying notes to the basic financial statements. 37 1094 of 1216
Business-type
Activities
Wastewater Utility
Enterprise Fund
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers 7,993,270 $
Cash paid to suppliers (5,612,470)
Cash paid to employees 571,278
Net cash provided by operating activities 2,952,078
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Proceeds from sale of assets 67,262
Acquisition and construction of capital assets (279,555) Principal paid on capital debt (997,027)
Interest paid on capital debt (596,719)
Net cash used in capital and related
financing activities (1,806,039)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest and dividends (196,758)
Net cash provided by investing activities (196,758)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 949,281 CASH AND CASH EQUIVALENTS:
Beginning of year 17,123,487
End of year $ 18,072,768
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Operating income (loss) $ 1,034,017
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities:
Depreciation 1,196,496
(Increase) decrease in assets:
Accounts receivables 222,498
Inventory 140
Deferred outflows of resources 149,717
Increase (decrease) in liabilities:
Accounts payable (72,351)
Compensated absences 32,910
Net OPEB liability (227,378)
Net Pension Liability (1,306,230)
Deferred inflows of resources 1,922,259
Net cash provided by (used in) operating activities $ 2,952,078 City of Pinole
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2022
See accompanying notes to the basic financial statements. 38 1095 of 1216
FIDUCIARY FUND FINANCIAL STATEMNTS
Private Purpose Trust Fund - this fund accounts for the successor Agency's activities Custodial Funds - this fund accounts for assets held on behalf of other governments 39 1096 of 1216
City of Pinole
Statement of Fiduciary Net Position
Fiduciary Funds
Private-Purpose
Trust Fund
Custodial
Funds
ASSETS
Cash and cash equivalents $ 6,340,748 $ 159,690
Notes receivable, net of allowance 10,054 -
Land held for redevelopment 2,469,715 -
Capital assets not being depreciated 2,429,793 -
Capital assets being depreciated, net 7,474,516 - Total assets 159,690 18,724,826
LIABILITIES
Accounts payable 11,589 4,734
Deposits payable 128,144 56,238
Due to City - 862,883
Due to County - 18
Interest Payable - 73,386
Bonds payable:
Due within one year 4,220,000 -
Due in more than one year 3,570,000 - Total liabilities 139,733 8,787,259
NET POSITION
Held in trust for dissolution of RDA 9,937,567 -
Held for other government - 19,957
Total net position $ 19,957 9,937,567 $
June 30, 2022
See accompanying notes to the basic financial statements. 40 1097 of 1216
City of Pinole
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
Private-Purpose
Trust Fund
Custodial
Funds
ADDITIONS:
Property taxes $ 6,220,857 $ -
Investment income (27,548) (287)
Other revenues 5,131 -
Gain on disposal of assets 40,169 -
Total additions 6,238,609 (287)
DEDUCTIONS:
Operating cost 261,330 -
Depreciation 260,282 -
Debt interest 184,787 -
Land sale proceeds transfer to Contra Costa County 839,901 - Total Deductions 1,546,300 -
Change in fiduciary net position 4,692,309 (287)
NET POSITION:
Beginning of year 5,245,258 20,244
End of year $ 9,937,567 $ 19,957
For the year ended June 30, 2022
See accompanying notes to the basic financial statements. 41 1098 of 1216
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NOTES TO BASIC FINANCIAL
STATEMENTS
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City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
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, 2022 was 18,628.
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, 2022, the City's staff comprised 97 full-time and 27 part-time employees who are responsible for the following City-provided services:
Public Safety - The City employs 21 sworn and 21 non-sworn police personnel to provide round-the-clock police services from a central station, and 16 personnel to provide round-the-clock fire services from one fire station.
Sanitation and Health Service - The City maintains a sewage treatment plant with 9 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 12 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 45 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. 45 1102 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
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:
46 1103 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
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. 47 1104 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
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 – This fund is used to account for funds collected from asset seizure, funds held in the police evidence trust, and private donations received for the community assistance program.
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.
48 1105 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
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.
49 1106 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
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. 50 1107 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
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. 51 1108 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
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. Leases Receivable
The City’s leases receivable are measured at the present value of lease payments expected to be received during the lease terms. Deferred inflows of resources are recorded for the leases. The deferred inflow of resources is recorded at the initiation of the lease in an amount equal to the initial recording of the lease receivable.
I. 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
52 1109 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued I. 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.
J. 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.
K. 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, 2022. 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.
L. 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 assets or fund balance that applies to future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. 53 1110 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued L. 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 assets or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.
M. 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.
N. 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, 2021
Measurement Date June 30, 2021
Measurement Period July 1, 2020 to June 30, 2021
O. 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.
54 1111 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued P. 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. 55 1112 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Q. 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.
R. 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.
S. 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.
T. 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.
U. Implementation of Governmental Accounting Standards Board (GASB) Pronouncements In 2022, the City adopted new accounting standards in order to conform to the following Governmental Accounting Standards Board Statements:
GASB Statement No. 87 – Leases – The objective of this statement is to recognize in the financial statements certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. The requirements of this statement have been implemented during the current fiscal year. 56 1113 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued U. Implementation of Governmental Accounting Standards Board (GASB) Pronouncements, Continued GASB Statement No. 89 – Construction-Period Interest – The objectives of this Statement are (1) to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and (2) to simplify accounting for interest cost incurred before the end of a construction period. The requirements of this Statement did not apply to the City for the current fiscal year.
GASB Statement No. 92 – Omnibus 2020 – The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. The requirements of this Statement did not apply to the City for the current fiscal year.
GASB Statement No. 97 - Certain Component Unit Criteria, And Accounting And Financial Reporting For Internal Revenue Code Section 457 Deferred Compensation Plans—an Amendment Of GASB Statements No. 14 And No. 84, And A Supersession Of GASB Statement No. 32 - The primary objectives of this Statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans. The requirements of this statement have been implemented during 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 last fiscal year.
GASB Statement No. 99 – Omnibus - 2022 – The primary objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The requirements of this Statement did not apply to the City for the current fiscal year.
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. 57 1114 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
2. CASH AND INVESTMENTS, Continued
A. Summary of Cash and Investments
Cash and investments as of June 30, 2022 were classified in the accompanying financial statements as follows:
Cash and investments were carried at fair value as of June 30, 2022 and consisted of the following:
B. Deposits
The carrying amount of the City’s cash deposit was $2,074,632 at June 30, 2022. Balance before reconciling amounts were a positive amount of $2,279,244 at June 30, 2022. 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.
Cash &
Investments
Restricted cash
& Investments Total
Governmental activities 35,484,793 $ 17,106,937 $ 52,591,730 $ Business-type activities 18,072,768 - 18,072,768
Total government-wide cash and investments 53,557,561 17,106,937 70,664,498 Fiduciary activities 6,500,438 - 6,500,438
Total cash and investments 60,057,999 $ 17,106,937 $ 77,164,936 $ Cash on hand $ 1,920
Deposits with financial institution 2,074,631
Total cash on hand and deposits 2,076,551
Money Market 11,973,449
Local Agency Investment Funds 34,573,283
CalTrust 3,250,212
Investments held by custodian 8,184,503
Restricted cash and investment with PARS 17,106,937
Total investments 75,088,384
Total cash and investments $ 77,164,935
58 1115 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
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 are described below.
Authorized Investment Type
Maximum
Maturity
Maximum
Percentage of
Portfolio
Maximum
Investment in
One Issuer
U.S. Treasury Obligations 5 years None None
U.S. Agency Securities 5 years 40% None
Repurchases Agreements 30 days 10% None
Banker's Acceptances 180 days 40% 10%
Commercial Paper (Minimum rating of "A" or higher) 180 days 15% None Medium Term corporate Notes (Minimum rating of
"AA" or higher) 5 years 15% 5%
Negotiable Certificates of Deposit issued in California 5 years 10% None Negotiable Certificates of Deposit 5 years 30% None
Local Agency Investment Fund (LAIF) N/A None None
Insured savings account or money market account N/A None None Mutual Funds N/A 15% None
Restricted Real Estate Asset Sale rated "AAA" or higher 10 years 15% None 59 1116 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
2. CASH AND INVESTMENTS, 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.
Authorized Investment Type
Maximum
Maturity
Maximum
Percentage of
Portfolio
Maximum
Investment in
One Issuer
U.S. Treasury Obligations None None None
U.S. Agency Securities None None None
State of Municipal Bonds or Notes rated "AA" or better None None None Repurchase Agreements rated "A" or better 30 days None None Investment Agreements and Contracts None None None
Money Market Funds rated "AA-m" or better N/A None None Certificates of Deposit None None None
Commercial Paper rated "A-1" or better None None None
Federal Funds or Bankers Acceptances 1 year None None
Local Agency Investment fund (LAIF) None None None
60 1117 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
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, 2022:
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.
Investments Level 1 Inputs Level 2 Inputs Level 3 Inputs Federal agency securities $ 466,210 $ 466,210 - $ $ -
Corporate notes 1,687,595 1,687,595 - -
Negotiable certificates of deposits 3,374,469 3,374,469 - - Restricted Cash & investment with PARS 17,106,937 17,106,937 - - Total subject to levelling 22,635,211 $ 22,635,211 - $ $ - Investments not subject to levelling
Money Market 11,973,449
Mutual Funds 2,656,229
Local Agency Investment Fund 34,573,283
Caltrust 3,250,212
Total $ 75,088,384
Total Fair
Value
Fair Value Measurements Using
61 1118 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
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, 2022:
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. 12 Months
or less 1-5 years
Total
Fair Value
Money Market 11,973,449 $ - $ 11,973,449 $
Local Agency Investment Fund 34,573,283 - 34,573,283
Caltrust 3,250,212 - 3,250,212
Securities of U.S. Government:
Federal agency securities - 466,210 466,210
Corporate notes 746,085 941,510 1,687,595
Negotiable certificates of deposits 1,726,334 1,648,135 3,374,469 Mutual Funds 2,656,229 2,656,229 -
Restricted cash & investment with PARS 17,106,937 17,106,937 - Total $ 72,032,529 $ 3,055,855 $ 75,088,384
Remaining Maturity
S&P Moody's N/A
Money Market 11,973,449 $ Not rated
Local Agency Investment Fund 34,573,283 Not rated
Caltrust 3,250,212 Aaf N/A
Securities of U.S. Government
Federal Agency Securities 466,210 AA+ Aaa
Corporate Notes 941,510 AA+ Aaa
Corporate Notes 746,085 AAA Aaa
Negotiable certificates of deposits 3,374,469 Not rated Mutual Funds 2,656,229 Not rated
Restricted cash - PARS 17,106,937 Not rated
Total 75,088,384 $
Rating as of Fiscal Year End
62 1119 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
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, 2022.
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, 2022 and 2021, 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, 2022, the City had $34,573,283 invested in LAIF, which had invested 1.88% of the pool investment funds in Structured Notes and Asset-Backed Securities as compared to 2.31% in the previous year. The LAIF fair value factor of 0.987125414 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.
63 1120 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
3. NOTES AND LOANS RECEIVABLE, Continued
These notes and loans receivable, including interest, comprised of the following at June 30, 2022 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 $30,685 at June 30, 2022.
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, 2022 was $240,075.
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, 2022, the outstanding balance was $1,039,904
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, 2022, the total outstanding balance was $1,812,498 Notes Receivable
Less: Allowance for
Doubtful Notes
Housing Rehabilitation 30,685 $ (30,685) $
First Time Home-Buyer 240,075 (240,075)
Bridge Housing Loan 1,039,904 (1,039,904)
Alvarez Court 1,812,498 (1,812,498)
Eastbuff Apartment Loan 1,120,505 (1,120,505)
Total $ 4,243,667 $ (4,243,667)
64 1121 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
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, 2022, the outstanding balance was $1,120,505.
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, 2022.
4. LEASES RECEIVABLE
A. Community Playhouse Lease
In June 2019, the City entered into a lease agreement with Pinole Community Players. Under the lease, the lessee pays the City $5,000 per year (with a 5% increase every year) for a period of 5 years. The lease receivable is measured as the present value of the future minimum rent payments expected to be received during the lease term at a discount rate of 2.00%. For the year ended June 30, 2022, the City recognized $5,119 of lease revenue and $292 of interest revenue under the lease.
B. Post Office Building Lease
In September 2015, the City entered into office building lease agreement with United States Postal Services (USPS), with two renewal options of 5 years each. Under the first renewal option, the lessee pays the city $87,966 per year (with an 8.00% increase after five years). for a period of 5 years. It is reasonably certain that the second renewal option will be exercised. The lease receivable is measured as the present value of the future minimum rent payments expected to be received during the lease term at a discount rate of
1.390%, which is USPS weighted average discount rate on operating leases. For the year ended June 30, 2022, the City recognized $77,495 of lease revenue and $10,471 of interest revenue under the lease. 65 1122 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
4. LEASES RECEIVABLE, Continued
B. Post Office Building Lease, Continued
The future payments on the leases as of June 30, 2022 were as follows:
5. LAND HELD FOR RESALE
At June 30, 2022, 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
Principal Interest Principal Interest Principal Interest 2023 5,494 $ 187 $ 78,579 $ 9,387 $ 84,073 $ 9,574 $
2024 5,892 74 79,678 8,288 85,570 9,574
2025 - 80,793 - 7,173 80,793 7,173
2026 - 87,818 - 6,012 87,818 6,012
2027 - 90,234 - 4,769 90,234 4,769
2028-2032 - 294,151 - 6,690 294,151 6,690
Total $ 11,386 $ 261 $ 711,253 $ 42,319 $ 722,639 $ 43,792 Year Ending
June 30,
Community Playhouse Lease Post Office Building Lease Total 66 1123 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
6. CAPITAL ASSETS
Capital asset activity for the fiscal year ended June 30, 2022 was as follows:
Balance
June 30, 2021 Balance
(restated) Additions Retirements Transfers June 30, 2022 Governmental activities:
Nondepreciable assets:
Land 6,313,621 $ - $ - $ - $ 6,313,621 $
Construction in progress 594,714 686,082 - (101,436) 1,179,360 Total nondepreciable assets 6,908,335 686,082 (101,436) - 7,492,981 Capital assets being depreciated
Buildings and improvements 15,959,889 (12,554) - 101,436 16,048,771 Equipment 5,929,753 65,082 - 5,994,835 -
Vehicles 4,636,944 523,512 (415,243) 4,745,213 -
Streets and roads 51,462,868 1,063,192 - 52,526,060 -
Storm drains 2,880,999 - - 2,880,999 -
Bridges 3,117,473 - - 3,117,473 -
Parks 2,502,680 - - 2,502,680 -
Leased equipment 95,874 - - 95,874 -
Total capital assets being depreciated 86,586,480 1,651,786 (427,797) 101,436 87,911,905 Accumulated depreciation
Buildings and improvements 11,132,958 254,090 (12,554) 11,374,494 - Equipment 4,827,810 253,020 - 5,080,830 -
Vehicles 2,970,277 390,508 (411,648) 2,949,137 -
Streets and roads 38,988,423 683,359 - 39,671,782 -
Storm drains 1,415,875 23,066 - 1,438,941 -
Bridges 1,955,746 36,783 - 1,992,529 -
Parks 1,099,044 5,570 - 1,104,614 -
Accumulated amortization
Leased assets 23,968 - - 23,968 -
Total accumulated depreciation & amortization 62,390,133 1,670,364 (424,202) 63,636,295 - Net depreciable assets 24,196,347 (18,578) (3,595) 101,436 24,275,610 Total net capital assets $ 667,504 31,104,682 $ $ (3,595) $ 31,768,591 - $ General administration $ 123,189
Public safety 480,521
Public services 973,839
Recreation 85,941
Community development 6,874
Total depreciation/amortization expense $ 1,670,364
Depreciation/amortization expense for capital assets was charged to functions as follows:
67 1124 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
6. CAPITAL ASSETS, Continued
Intangible Right-to-Use Assets:
In FY 2022, the City implemented the guidance in GASB No. 87, leases and recognized the value of equipment leased under long-term contract. The leased intangible assets and related amortization have been reported on the governmental activity capital assets schedule.
As of June 30, 2022, the City had 9 photocopiers leased from Ray Morgan Company. The intangible rightto- use asset is being amortized over 5 years, the term of the lease. Terms of the lease are described in Note8A
Balance Balance
June 30, 2021 Additions Retirements Transfers June 30, 2022 Business-type activities
Depreciable assets:
Buildings and improvements 51,765,446 $ 821 $ - $ - $ 51,766,267 $ Sewer lines 7,650,185 - - 7,650,185 -
Equipment 3,259,400 33,803 - 3,293,203 -
Vehicles 1,008,306 244,930 (239,782) 1,013,454 -
Total depreciable assets 63,683,337 279,554 (239,782) 63,723,109 - Accumulated depreciation
Buildings and improvements 8,871,622 945,969 - 9,817,591 - Sewer lines 8,101,763 83,699 - 8,185,462 -
Equipment 1,923,732 40,075 - 1,963,807 -
Vehicles 578,651 126,753 (239,782) 465,622 -
Total accumulated depreciation 19,475,768 1,196,496 (239,782) 20,432,481 - Net depreciable assets 44,207,569 (916,942) - 43,290,628 - Total net capital assets $ 44,207,569 $ (916,942) $ - $ 43,290,628 - $ $ 1,196,496
$ 1,196,496
Depreciation expense for capital assets was charged to functions as follows:
Wastewater Utility
68 1125 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
7. 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, 2022 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. At June 30, 2022, the balance outstanding on the advance was $862,883.
8. 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, 2022:
A description of the long-term liabilities related to governmental activities at June 30, 2022 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.
Lease Liabilities
In FY 2022, the City implemented the guidance in GASB No. 87, Leases, for accounting and reporting leases.
On May 6, 2020, the City leased copiers from Ray Morgan Company to acquire the right to use 9 copiers in the amount of $95,874 for a period of 60 months. The lease requires a monthly lease payment of 2,079.99 starting 2021 through 2025. For the purpose of discounting future payments on the lease, the City used an interest rate of 2%.
Balance
July 1, 2021 Balance Current
(restated) Addition Retirements June 30, 2022 Portion
Governmental Activity Debt:
2006 Pension Obligation Bond 2,734,450 $ - $ (221,565) $ 2,512,885 $ 215,586 $ Lease Liability 95,874 - (23,255) 72,619 24,960
Compensated Absences 945,597 765,859 (767,531) 943,925 96,785 Total Governmental Activity Debt $ 765,859 3,775,921 $ (1,012,351) $ 3,529,429 $ 337,331 $ 69 1126 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
8. LONG-TERM LIABILITIES, Continued
A. Governmental Activities, Continued
Future debt service payments for governmental activities 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.
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
Principal Interest Principal Interest
2023 215,586 $ 379,414 $ 24,960 $ 1,236 $
2024 207,790 402,210 24,203 757
2025 203,321 431,679 23,456 268
2026 195,585 454,415 - -
2027 191,228 483,773 - -
2028-2032 879,366 2,840,634 - -
2033-2036 620,009 2,819,990 - -
Total $ 2,512,885 $ 7,812,115 $ 72,619 $ 2,261
Due within one year 215,586 $ $ 379,414 $ 24,960 $ 1,236 Due after one year 2,297,299 7,432,701 47,659 1,025
Total $ 2,512,885 $ 7,812,115 $ 72,619 $ 2,261
Year Ending
June 30,
2006 Pension Obligation Bond Lease Liability
Balance
July 1, 2021 Additions Retirements
Balance
June 30, 2022
Current
Portion
General Administration 68,816 $ 80,145 $ (68,476) $ 80,485 $ 7,581 $ A Public Safety 562,698 510,778 (474,464) 599,012 64,753 A Public Services 158,368 129,609 (88,169) 199,808 16,383 B Recreation 149,683 36,578 (127,080) 59,181 6,062 B
Community Development 6,032 8,749 (9,342) 5,439 2,006 B Total $ 765,859 945,597 $ (767,531) $ 943,925 $ 96,785 $ 70 1127 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
8. LONG-TERM LIABILITIES, Continued
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, 2022.
A description of the long-term liabilities related to business-type activities at June 30, 2022 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:
Balance
June 30, 2021 Addition Retirements
Balance
June 30, 2022
Current
Portion
Business-type Activity Debt:
2016 Wastewater Revenue Refunding Bond 6,650,000 $ - $ (329,000) $ 6,321,000 $ 341,000 $ 2016 Clean Water State Revolving Fund 24,773,976 - (668,027) 24,105,949 679,383 Compensated Absences 110,327 152,302 (119,392) 143,237 16,017 Total Business-Type Activity Debt $ 152,302 31,534,303 $ (1,116,419) $ 30,570,186 $ 1,036,400 $ Principal Interest
2023 $ 341,000 $ 181,440
2024 347,000 171,292
2025 362,000 160,834
2026 372,000 150,008
2027 381,000 138,901
2028-2032 2,089,000 516,029
2033-2037 2,429,000 183,564
Total $ 6,321,000 $ 1,502,068
Due within one year 341,000 $ $ 181,440
Due after one year 5,980,000 1,320,628
Total $ 6,321,000 $ 1,502,068
Year Ending
June 30,
2016 Wastewater Revenue
71 1128 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
8. 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, 2022, the total debt outstanding on the loan is $24,105,949. 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, 2022 are as follows:
Principal Interest
2023 $ 679,383 $ 409,801
2024 690,932 398,252
2025 702,678 386,506
2026 714,624 374,560
2027 726,772 362,412
2028-2032 3,823,443 1,622,477
2033-2037 4,159,675 1,286,245
2038-2042 4,525,475 920,445
2043-2047 4,923,443 522,477
2048-2050 3,159,524 108,027
Total $ 24,105,949 $ 6,391,202
Due within one year 679,383 $ $ 409,801
Due after one year 23,426,566 5,981,401
Total $ 24,105,949 $ 6,391,202
Year Ending
June 30,
2016 Clean Water State Revolving
Balance
July 1, 2021 Additions Retirements
Balance
June 30, 2022
Current
Portion
Wastewater Utility Fund 110,327 $ 152,302 $ (119,392) $ 143,237 $ 16,017 $ Total $ 110,327 $ 152,302 $ (119,392) $ 143,237 $ 16,017 72 1129 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
9. INTERFUND TRANSACTIONS
A. Interfund Transfers to/from Other Funds
Transfers between funds during the fiscal year ended June 30, 2022 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.
B. Due to/from Other Funds
These balances represent short term loans between funds which are expected to be reimbursed within one year. The composition of due to/from balances at June 30, 2022 consisted of the following:
10. 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.
Transfer From Transfer To Description of Transfer Amount General Fund Cable Television Fund Cable TV contributions $ 197,184 General Fund Capital Projects Fund Funding for projects 500,000 General Fund Recreation Fund Recreation operating contributions 950,998 General Fund Building & Planning Fund Building fund operating contributions 481,051 Total $ 2,129,233
Due From Due to
Fund Other Funds Other Funds
Governmental Activities
General Fund $ 724,358 $ -
Non-Major Funds 724,358 -
Total Governmental Funds $ 724,358 $ 724,358
73 1130 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
10. DEFINED BENEFIT PENSION PLAN, Continued
A. General Information about the Pension Plans, Continued 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.
The rate plan provisions and benefits in effect for the year ended June 30, 2022, are summarized as follows:
The City’s Net Pension liability is generally liquidated by the general fund and wastewater fund.
Miscellaneous-Classic Miscellaneous-PEPRA
Hire Date Prior to July 1, 2013 On or after July 1, 2013 Benefit vesting schedule 5 years service 5 years service Benefit payment Monthly for life Monthly for life
Retirement age 55 62
Monthly benefits, as a % of annual salary 2.5% 2.0%
Required employee contribution rates 7.96% 6.750%
Required employer contribution rates* 12.200% 7.590%
Required UAL payment $ 1,131,835 $ 5,154
Safety-Classic Safety-PEPRA (Fire)
Hire Date Prior to July 1, 2013 On or after January 1, 2013 Benefit vesting schedule 5 years service 5 years service Benefit payments Monthly for life Monthly for life
Retirement age 55 57
Monthly benefits, as a % of annual salary 3.0% 2.7%
Required employee contribution rates 8.99% 13.00%
Required employer contribution rates 21.790% 13.130%
Required UAL payment (Police) $ 1,537,025 $ 2,808
Safety-PEPRA (Police)
Hire Date On or after January 1, 2013
Benefit vesting schedule 5 years service
Benefit payments Monthly for life
Retirement age 57
Monthly benefits, as a % of annual salary 2.7%
Required employee contribution rates 13.00%
Required employer contribution rates (Police)* 13.130%
Required UAL payment (Police) $ 8,296
* The employer contribution rate reflects the employer’s normal cost rate and does not include unfunded 74 1131 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
10. DEFINED BENEFIT PENSION PLAN, Continued
A. General Information about the Pension Plans, Continued 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, 2021, were $3,789,111 B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2022, the City reported net pension liability for its proportionate share of the net pension liability of the Plan of $23,635,060.
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, 2021, 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, 2020 rolled forward to June 30, 2021 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 measurement date June 30, 2020 and 2021 was as follows:
Proportion - June 30, 2020 0.33728 %
Proportion - June 30, 2021 0.43702 %
Change - Increase (Decrease) 0.09974 %
For the year ended June 30, 2022, the City recognized pension expense of $8,159,509. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension contributions subsequent to measurement date $ 4,275,635 $ - Differences between actual and expected experience 3,396,878 - Net differences between projected and actual earnings on plan investments - 17,100,676
Change in employer's proportion 389,864 -
Differences between actual contributions and proportionate share of contributions - 1,675,908
Total $ 8,062,377 $ 18,776,584
75 1132 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
10. DEFINED BENEFIT PENSION PLAN, Continued
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
$4,275,635 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, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Actuarial Assumptions- The total pension liabilities for the measurement date June 30, 2021 were determined using the following actuarial assumptions:
Changes in Assumptions - There were no changes of assumptions during the measurement period ended June 30, 2021.
Fiscal Year
Ending June 30:
2023 $ (3,058,240)
2024 (3,340,338)
2025 (3,874,315)
2026 (4,716,949)
Valuation Date June 30, 2020
Measurement Date June 30, 2021
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 7.15%
Inflation 2.50%
Salary Increases Varies by Entry Age and Service
Investment Rate of Return (1) 7.15%
Mortality (2) Derived using CalPERS' Membership Data for all Funds Post Retirement Benefit Increase Contract COLA up to 2.50% until Purchasing Power Protection Allowance Floor on Purchasing Power applies
(1) Net of pension plan investment expenses.
(2) The mortality table used was developed based on CalPERS' specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale 90% of scale MP 2016. For more details on this table, please refer to the December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015) that can be found on the CalPERS website. 76 1133 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
10. DEFINED BENEFIT PENSION PLAN, Continued
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
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.
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. 77 1134 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
10. DEFINED BENEFIT PENSION PLAN, Continued
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued
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.
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, 2022, the City reported $0 for outstanding amounts of contributions for the CalPERS Cost Sharing Multiple-Employer Plan.
Assumed
Asset Real Return Real Return
Asset Class (1) Allocation Years 1 - 10 (2) Years 11+(3) Global equity 50.00% 4.80% 5.98%
Fixed income 28.00% 1.00% 2.62%
Inflation assets 0.00% 77.00% 1.81%
Private equity 8.00% 6.30% 7.23%
Real assets 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% (0.92)%
Total 100%
(1) In the System's ACFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-Term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities. (2)
An expected inflation of 2.00% used for this period.
(3)
An expected inflation of 2.92% used for this period.
1% Decrease 6.15%
Net Pension Liability $ 41,158,063
Current Discount Rate 7.15%
Net Pension Liability $ 23,635,060
1% Increase 8.15%
Net Pension Liability $ 9,204,864
78 1135 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
11. 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, 2022, the City had 112 retired employees. The City currently has 97 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.
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:
Inactive employees or beneficiaries currently receiving benefits 99 Inactive entitled to but not yet receiving benefits 13
Active employees 97
Total 209
Credited Years of
Service
Percentage of
Employer
Contributions
10 50
11 55
12 60
13 65
14 70
15 75
16 80
17 85
18 90
19 95
20 or more 100
79 1136 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
11. OTHER POST EMPLOYMENT BENEFITS (OPEB), Continued
D. Total OPEB Liability
The City’s total OPEB liability was measured as of June 30, 2021, and the total OPEB liability used to calculate the total OPEB liability was determined by an actuarial valuation as of June 30, 2021. The total OPEB liability in the June 30, 2021 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement date.
E. Discount Rate
The discount rate used to measure the total OPEB liability was 2.16%. 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
Valuation Date June 30, 2021
Measurement Date June 30, 2021
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate 2.16% - Bond Buyer 20-Bond Index
Inflation 2.5% annually
Salary Increases
Mortality, Retirement, Disability, Termination
Mortality Improvement Based on CalPERS Experience Study and Review of Actuarial Assumptions published in November 2021 for Public Agency Miscellaneous, Police, and Fire members.
Healthcare cost trend rates Based on 2021 Getzen model that reflects actual premium increases from 2021 to 20222 followed by 5.75% non-Medicare / 5.40% Medicare in 2022, decreasing gradually to an ultimate rate of 4.04% by 2075 Entry-Age Normal Cost Method
2.8% - Aggregated
CalPERS 1997-2015 Experience Study
Total OPEB
Liability
Balance at June 30, 2021 (Measurement
date June 30, 2020) $ 46,512,235
Changes in the year:
Service cost 2,241,980
Interest on the total pension liability 1,063,633
Differences between actual and
expected experience (4,050,407)
Changes in assumptions (270,144)
Benefit payments (1,258,835)
Net changes (2,273,773)
Balance at June 30, 2022 (Measurement
date June 30, 2021) $ 44,238,462
80 1137 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
11. OTHER POST EMPLOYMENT BENEFITS (OPEB), Continued
F. Changes in the Total OPEB Liability, Continued
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:
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:
The City’s total OPEB liability is generally liquidated by the general fund and wastewater fund. 1% Decrease - 1.16%
Total OPEB liability 53, $ 330,094
Current Discount Rate - 2.16%
Total OPEB liability 44, $ 238,462
1% Increase - 3.16%
Total OPEB liability 37, $ 311,255
1% Decrease
Total OPEB liability 36,871,189 $
Current Healthcare Trend Rate
Total OPEB liability 44,238,462 $
1% Increase
Total OPEB liability 53,940,641 $
Net difference between projected
and actual earnings on OPEB plan 5 years, straight line of amortizaion investments
All amounts
Expected average remaining
service lifetime (EARSL)
(6 years at June 30, 2021)
81 1138 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
11. OTHER POST EMPLOYMENT BENEFITS (OPEB), Continued
H. OPEB Expenses and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2022, the City recognized OPEB expense of $2,783,583. For the fiscal year ended June 30, 2022, the City reported deferred outflows of resources related to OPEB from the following sources:
The $1,283,772 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2021 measurement date will be recognized as a reduction of the total OPEB liability during the fiscal year ending June 30, 2023. Other amounts reported as deferred inflows of resources related to OPEB will be recognized as expense as follows:
12. 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.
Deferred Outflows
of Resources
Deferred Inflows
of Resources
OPEB contributions subsequent
to measurement date $ 1,283,772 $ -
Changes in assumptions 6,548,212 1,097,613
Differences between expected
and actual experience - 4,480,457
Total $ 7,831,984 $ 5,578,070
Fiscal Year
Ending June 30:
2023 $ (102,761)
2024 468,740
2025 639,035
2026 685,219
2027 (720,091)
Deferred
Outflows/(Inflows) of
82 1139 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
12. FUND BALANCE, Continued
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.
As of June 30, 2022, fund balances consisted of the following:
Nonmajor
General Housing Governmental
Fund Programs Funds Total
Fund Balances
Nonspendable fund balance:
Inventory $ 31,965 $ - $ 31,965 - $
Prepaid items and supplies 13,331 315,552 - 328,883
Total Nonspendable 45,296 315,552 - 360,848
Restricted fund balance for:
Housing Redevelopment 7,746,133 - 7,746,133 -
Real estate maintenance 164,881 - 164,881 -
Police - 1,209,961 - 1,209,961
Growth impact - 2,701,825 - 2,701,825
Gas Tax - 729,304 - 729,304
Measure C - 2,009,896 - 2,009,896
Refuse Management - 150,843 - 150,843
Capital projects - 331,724 - 331,724
Solid Waste - 2,063,224 - 2,063,224
CASP Certification - 35,590 - 35,590
Rate Stabilization - 199,959 - 199,959
Adjudicated Asset Seizure - 57,575 - 57,575
Pension Fund 17,106,937 - 17,106,937 -
Total Restricted 17,271,818 7,746,133 9,489,901 34,507,852 Assigned fund balance for:
Capital projects - 2,062,012 - 2,062,012
General reserve 8,192,602 - 8,192,602 -
Emergency reserve 100,000 - 100,000 -
Equipment reserve 241,166 - 241,166 -
Police - - 2,180 2,180
Recreation - - 5,488 5,488
Total Assigned fund balance 8,533,768 2,069,680 - 10,603,448 Unassigned fund balance
Minimum fund balance reserve 9,405,968 (600,971) - 8,804,997 9,405,968 (600,971) - 8,804,997
Total Fund Balances $ 35,256,850 $ 7,746,133 $ 11,274,162 $ 54,277,145 83 1140 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
13. 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, 2022, the City contributed $1,337,703 for coverage.
Financial statements may be obtained from Municipal Pooling Authority of Northern California, 1911 San Miguel Drive, Suite 200, Walnut Creek, CA 94596.
14. DEFICIT FUND BALANCES AND NET POSITION
As of June 30, 2022, the following funds had a fund deficit:
Type of Coverage (Deductible) Coverage Limits
Liability ($25,000) including errors and omissions for Public Officials $ 29,000,000 All Risk Fire and Property ($5,000) 1,000,000,000
Workers' Compensation (no deductible) 50,000,000
Vehicle Physical Damage ($3,000 for police, $2,000 all others) 250,000 Fund Deficit
Parkland dedication $ (22,653)
Storm water $ (38,938)
Cable TV $ (5,227)
Building and Planning $ (532,755)
Development Services $ (1,398)
84 1141 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
15. 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, 2022 was as follows:
Balance
June 30, 2021 Additions Retirements
Balance
June 30, 2022
Fiduciary Activities:
Capital assets not being depreciated:
Land 2,504,793 $ - $ (75,000) $ 2,429,793 $
Total assets not being depreciated - 2,504,793 (75,000) 2,429,793 Capital assets being depreciated:
Buildings and improvements 9,478,371 - (284,759) 9,193,612 Streets and roads 3,024,273 - 3,024,273 -
Bridges 433,276 - 433,276 -
Parks 159,935 - 159,935 -
Total capital assets being depreciated 13,095,855 (284,759) - 12,811,096 Accumulated depreciation:
Buildings and improvements 3,518,053 193,566 (191,755) 3,519,864 Streets and roads 1,500,084 57,438 1,557,522 -
Bridges 89,981 9,278 99,259 -
Parks 159,935 - 159,935 -
Total accumulated depreciation 5,268,053 260,282 (191,755) 5,336,580 Net depreciable assets 7,827,802 (260,282) (93,004) 7,474,516 Total fiduciary activities capital assets, net $ 10,332,595 $ (168,004) (260,282) $ $ 9,904,309 85 1142 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
15. 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, 2022:
A description of the long-term liabilities related to fiduciary activities at June 30, 2022 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:
16. 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.
Balance
July 1, 2021 Addition Retirements
Balance
June 30, 2022
Current
Portion
Tax Allocation Bonds:
2015 Series A Bonds 11,915,000 $ - $ (4,125,000) $ 7,790,000 $ 4,220,000 $ Total long-term debt $ 14,950,000 $ (4,125,000) - $ $ 7,790,000 $ 4,220,000 For the Year
Ending June 30 Principal Interest
2023 4,220,000 $ 128,936 $
2024 3,570,000 40,520
Total 7,790,000 $ 169,456 $
86 1143 of 1216
City of Pinole
Notes to Basic Financial Statements
For the year ended June 30, 2022
17. PRIOR PERIOD ADJUSTMENTS
The City record period adjustments to correct impact fees collections that should have been accounted in Growth Impact Fund but were instead accounted in Parkland Dedication Fund.
Fund Balance, as Fund Balance, as
Previously Reported Restated at
at June 30, 2021 Cash & Investment June 30, 2021
Fund Financial Statements:
Non-Major Governmental Funds:
Growth Impact Fund $ 141,492 118,507 259,999 $
Parkland Dedication Fund 104,448 (118,507) (14,059)
Total Non-Major Governmental Funds $ 245,940 $ - $ 245,940 Prior Period Adjustments
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REQUIRED
SUPPLEMENTARY INFORMATION
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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 18,315,666 $ 19,130,853 $ 19,811,026 $ 680,173 $ Intergovernmental revenues 87,026 87,026 60,784 (26,242) Contributions - - 5,000 5,000
Investment earnings 150,000 150,000 (2,632,879) (2,782,879) Rents and ground leases 126,712 126,712 96,516 (30,196) Charges for services 1,487,365 1,487,365 1,669,964 182,599 Fines, forfeitures and penalties 22,050 22,050 10,411 (11,639) Other revenues 23,774 23,774 49,648 25,874
Total revenues 21,027,780 20,212,593 19,070,470 (1,957,310) EXPENDITURES:
Current:
General administration 3,845,907 4,006,512 3,777,341 229,171 Public safety 14,604,316 14,689,107 14,837,394 (148,287) Public works 1,937,649 1,964,928 1,330,703 634,225
Recreation 427,025 427,025 253,414 173,611
Community development 389,885 403,885 263,181 140,704
Capital outlay 3,308,039 4,080,481 813,040 3,267,441
Debt service:
Principal 221,565 221,565 244,820 (23,255)
Interest and fiscal charges 354,542 354,542 388,876 (34,334) Total expenditures 26,148,045 25,088,928 21,908,769 4,239,276 REVENUES OVER (UNDER) EXPENDITURES (4,876,335) (5,120,265) (2,838,299) 2,281,966 OTHER FINANCING SOURCES (USES):
Proceeds from sale of asset 601,000 601,000 257,182 (343,818) Transfers out (1,333,455) (2,270,197) (2,129,233) 140,964 Total other financing sources (uses) 121,231 538,423 (1,872,051) (2,410,474) Net change in fund balances $ (4,755,104) $ (4,581,842) (4,710,350) $ (128,508) FUND BALANCES:
Beginning of year 39,967,200
End of year $ 35,256,850
For the year ended June 30, 2022
Budget Amounts
91 1148 of 1216
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 1,683,692 $ 1,683,692 $ 11,658 $ (1,672,034) $ Investment earnings 50,000 50,000 (44,948) (94,948)
Other revenues - - 41,492 41,492
Total revenues 1,733,692 1,733,692 8,202 (1,725,490)
EXPENDITURES:
Current:
Community development 228,798 228,798 97,581 131,217
Total expenditures 228,798 228,798 97,581 131,217
Net change in fund balances $ 1,504,894 1,504,894 $ (89,379) (1,594,273) $ FUND BALANCES:
Beginning of year 7,835,512
End of year $ 7,746,133
For the year ended June 30, 2022
Budget Amounts
92 1149 of 1216
City of Pinole
Notes to Required Supplementary
Information For the year ended June 30, 2022
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. 93 1150 of 1216
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: 2022 2021 2020 2019 2018 2017 2016 2015
Measurement date: 6/30/2021 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 0.43702% 0.33728% 0.33097% 0.32602% 0.31631% 0.31346% 0.30817% 0.30594% Proportionate share of the net pension liability 23,635,060 $ 36,697,363 $ 33,914,595 $ 31,416,057 $ 31,369,644 $ 27,123,752 $ 21,152,634 $ 18,565,336 $ Covered payroll $ 9,515,674 $ 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 248.38% 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 88.29% 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 Fiscal year 2022 2021 2020 2019 2018 2017 2016 2015
Contractually required contribution (actuarially
determined) $ 4,275,635 $ 3,789,111 $ 3,367,332 $ 2,886,708 2,298,114 $ 2,067,225$ 1,529,134$ 1,403,576 $ Contribution in relation to the actuarially
determined contributions $ 4,275,635 $ 3,789,111 3,367,332 2,886,708 2,298,114 2,067,225 1,529,134 1,470,096 Contribution deficiency (excess) $ - $ - -$ -$ -$ -$ $ (66,520) - $ Covered payroll $ 9,515,674 10,540,843 $ 8,979,455$ 8,488,051$ 7,653,834$ 7,521,153$ 7,470,896$ 7,687,029 $ Contributions as a percentage of covered payroll 40.56% 39.82% 37.50% 34.01% 30.03% 27.49% 20.47% 19.12% Note to Schedule
Valuation date:** 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 * Fiscal year 2015 was the 1st year of implementation.
** Date of actuarial valuation used to determine the contractually required contribution.
Methods and assumptions used to determine contribution rates:
Valuation date 6/30/2019
Actuarial cost method Entry Age
Amortization method Level of percentage of payroll, closed Assets valuation method Market Value
Inflation 2.50%
Salary increases Depending on age, service, and type of employment Investment rate of return 7.00%
Retirement age 50 for all plans, with the exception of 52 for Miscellaneous PEPRA 2%@62 Mortality Based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board.
City of Pinole
Notes to Required Supplementary
Information For the year ended June 30, 2022
94 1151 of 1216
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)
Fiscal Year: 2022 2021 2020 2019 2018
Measurement Period 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 Total OPEB Liability
Service Cost $ 2,241,980 $ 1,615,428 $ 1,227,488 $ 1,274,335 $ 1,472,000 Interest on the total OPEB liability 1,063,633 1,308,423 1,391,794 1,298,734 1,128,000 Differences between expected and actual experience (4,050,407) - (2,333,030) - - Changes of assumptions (270,144) 8,431,861 1,956,937 (1,655,481) (4,636,000) Benefit payments, including refunds of employee contributions (1,258,835) (1,223,092) (1,199,486) (1,169,676) (986,000) Net change in total OPEB liability (2,273,773) 10,132,620 1,043,703 (252,088) (3,022,000) Total OPEB liability - beginning 46,512,235 36,379,615 35,335,912 35,588,000 38,610,000 Total OPEB liability - ending $ 44,238,462 $ 46,512,235 $ 36,379,615 $ 35,335,912 $ 35,588,000 Covered-employee payroll 10,998,667 $ $ 10,708,319 $ 10,199,027 $ 9,399,404 $ 9,306,000 Total OPEB liability as a percentage of covered-employee payroll 402.22% 434.36% 356.70% 375.94% 382.42% Notes to Schedule:
June 30, 2020, discount rate was updated based on municipal bond rate and ACA Excise Tax removed June 30, 2021, discount rate has decreased from 2.21% to2.16% based on updated municipal bond index 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:
City of Pinole
Notes to Required Supplementary
Information For the year ended June 30, 2022
95 1152 of 1216
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96 1153 of 1216
SUPPLEMENTARY INFORMATION
97 1154 of 1216
Capital
Projects Fund
Public Works
Capital Growth Gas
Projects Impact Tax
ASSETS
Cash and investments $ 2,591,806 $ 2,706,768 $ 673,885
Accounts receivables 41,275 - 101,516
Prepaid and supplies - - -
Lease receivables - - -
Total assets $ 2,633,081 $ 2,706,768 $ 775,401
LIABILITIES
AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ 156,830 $ 4,943 $ 46,097 Unearned revenue - - -
Deposits payable - - -
Due to other funds 82,515 - -
Total liabilities 239,345 4,943 46,097
Deferred inflows of resources:
Lease receivables - - -
Fund Balances:
Nonspendable - - -
Restricted 331,724 2,701,825 729,304
Assigned 2,062,012 - -
Unassigned - - -
Total fund balances 2,393,736 2,701,825 729,304
Total liabilities, deferred inflows of
resources, and fund balances $ 2,633,081 $ 2,706,768 $ 775,401 Special Revenue Funds
City of Pinole
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
98 1155 of 1216
Adjudicated
Parkland Storm Refuse Asset
Dedication Measure C Water Management Seizure Police
$ 2,014,927 - $ - $ 140,811 $ 60,459 $ 1,146,114 $
- - 91,417 10,032 - 66,027
315,552 - - - - -
- - - - - -
$ 2,330,479 - $ 91,417 $ 150,843 $ 60,459 $ 1,212,141 $ $ 5,031 - $ - $ - $ 2,884 $ - $
- - - - - -
- - 4,000 - - -
- 22,653 126,355 - - -
5,031 22,653 130,355 - 2,884 -
- - - - - -
315,552 - - - - -
2,009,896 - - 150,843 57,575 1,209,961
- - - - - 2,180
(22,653) - (38,938) - - -
(22,653) 2,325,448 (38,938) 150,843 57,575 1,212,141
$ 2,330,479 - $ $ 91,417 $ 150,843 $ 60,459 $ 1,212,141 Special Revenue Funds
99 1156 of 1216
Cable Building
TV Recreation & Planning
ASSETS
Cash and investments $ - $ 46,915 $ -
Accounts receivables 50,990 9,079 237,650
Prepaid and supplies - - -
Due from other funds - 11,386 -
Total assets $ 50,990 $ 67,380 $ 237,650
LIABILITIES
AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ 376 $ 44,053 $ 296,243 Unearned revenue 6,524 - -
Deposits payable - 7,040 30,644
Due to other funds 49,317 - 443,518
Total liabilities 56,217 51,093 770,405
Deferred inflows of resources:
Lease receivables - 10,799 -
Fund Balances:
Nonspendable - - -
Restricted - - -
Assigned - 5,488 -
Unassigned (5,227) (532,755) -
Total fund balances (5,227) 5,488 (532,755)
Total liabilities, deferred inflows of
resources, and fund balances $ 50,990 $ 67,380 $ 237,650 Special Revenue Funds
City of Pinole
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
100 1157 of 1216
Total
American Nonmajor
Development Solid Waste CASP Certification Rate Rescue Plan Governmental Services Fund & Training Stabilization Act Fund Funds
$ 1,961,088 85,305 $ 35,657 $ 199,959 $ 1,811,408 $ 13,475,102 $ 103,941 - 24 - - 711,951
- - - - - 315,552
- - - - - 11,386
$ 2,065,029 85,305 $ 35,681 $ 199,959 $ 1,811,408 $ 14,513,991 $ $ 1,805 7,582 $ 91 $ - $ 42,509 $ 608,444 $
- - - - 1,768,899 1,775,423
- 79,121 - - - 120,805
- - - - - 724,358
1,805 86,703 91 - 1,811,408 3,229,030
- - - - - 10,799
- - - - - 315,552
2,063,224 - 35,590 199,959 - 9,489,901
- - - - - 2,069,680
(1,398) - - - (600,971) -
(1,398) 2,063,224 35,590 199,959 11,274,162 -
$ 85,305 $ 2,065,029 $ 35,681 $ 199,959 $ 1,811,408 $ 14,513,991 Special Revenue Funds
101 1158 of 1216
Capital
Projects Fund
Public Works
Capital Growth Gas
Projects Impact Tax
REVENUES:
Taxes and assessments 49,768 $ - $ - $
Intergovernmental revenues 666,243 - 850,633
Contributions - - -
Investment earnings (286) (10,747) (5,932)
Rents and ground leases - - -
Charges for services - 2,452,573 -
Fines, forfeitures and penalties 160 - -
Other revenues - - 18,050
Total revenues 2,441,826 715,885 862,751
EXPENDITURES:
Current:
General administration - - -
Public safety - - -
Public works 43,267 - 470,394
Recreation - - -
Community development - - -
Capital outlay 1,598,963 - 19,570
Total expenditures - 1,642,230 489,964
REVENUES OVER (UNDER) EXPENDITURES 2,441,826 (926,345) 372,787 OTHER FINANCING SOURCES (USES):
Proceeds from sale of asset - - -
Transfers in 500,000 - -
Total other financing sources (uses) - 500,000 -
Net change in fund balances 2,441,826 (426,345) 372,787 FUND BALANCES:
Beginning of year, as restated 2,820,081 259,999 356,517 End of year $ 2,393,736 $ 2,701,825 $ 729,304
City of Pinole
Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2022
Special Revenue Funds
102 1159 of 1216
Adjudicated
Parkland Storm Refuse Asset
Dedication Measure C Water Management Seizure Police
$ - - $ 255,408 $ - $ - $ 265,501 $
470,247 - - 66,826 - 161,285
- - - - - -
(23,258) (8,594) 883 (1,769) (766) (11,856)
- - - - - -
- - - - - -
- - - - - 28,821
- - - - - -
446,989 (8,594) 256,291 65,057 (766) 443,751
49,664 - - - - -
- - - - 29,000 277,565
128,654 - 297,082 106,591 - -
- - - - - -
- - - - - -
- 406 - - - -
- 178,724 297,082 106,591 29,000 277,565
(8,594) 268,265 (40,791) (41,534) (29,766) 166,186
- - - - - -
- - - - - -
- - - - - -
(8,594) 268,265 (40,791) (41,534) (29,766) 166,186
(14,059) 2,057,183 1,853 192,377 87,341 1,045,955
$ (22,653) $ 2,325,448 $ (38,938) $ 150,843 $ 57,575 $ 1,212,141 Special Revenue Funds
103 1160 of 1216
Cable Building
TV Recreation & Planning
REVENUES:
Taxes and assessments $ 21,934 $ - $ -
Intergovernmental revenues - - -
Contributions - 5,574 -
Investment earnings 1,297 5,545 3,072
Rents and ground leases - 24,625 -
Charges for services 216,836 330,704 902,764
Fines, forfeitures and penalties - - -
Other revenues - 1,972 -
Total revenues 240,067 368,420 905,836
EXPENDITURES:
Current:
General administration 414,638 - -
Public safety - - -
Public works - - -
Recreation 1,319,669 - -
Community development - 1,782,386 -
Capital outlay 24,709 45,595 2,943
Total expenditures 439,347 1,365,264 1,785,329
REVENUES OVER (UNDER) EXPENDITURES (199,280) (996,844) (879,493) OTHER FINANCING SOURCES (USES):
Proceeds from sale of asset - 22,172 -
Transfers in 197,184 950,998 481,051
Total other financing sources (uses) 197,184 973,170 481,051 Net change in fund balances (2,096) (23,674) (398,442)
FUND BALANCES:
Beginning of year, as restated (3,131) 29,162 (134,313) End of year $ (5,227) $ 5,488 $ (532,755)
City of Pinole
Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2022
Special Revenue Funds
104 1161 of 1216
Total
CASP American Nonmajor
Development Solid Waste Certification Rate Rescue Plan Funds Services Fund & Training Stabilization Act Fund Totals
$ - - $ - $ - $ - $ 592,611 $
28,327 - - - 533,606 2,777,167
- - - - - 5,574
(20,738) (962) - (2,216) - (76,327)
- - - - - 24,625
- - 8,173 - - 3,911,050
- - - - - 28,981
386,514 - - 17,499 - 424,035
394,103 (962) 8,173 15,283 533,606 7,687,716
- - - - 533,606 997,908
- - - - - 306,565
71,960 - - - - 1,117,948
- - - - - 1,319,669
- - - - - 1,782,386
- 122,281 - - 1,814,467 -
- 194,241 - - 533,606 7,338,943
(962) 199,862 8,173 15,283 - 348,773
- - - - - 22,172
- - - - 2,129,233 -
- - - - 2,151,405 -
(962) 199,862 8,173 15,283 2,500,178 -
(436) 1,863,362 27,417 184,676 8,773,984 -
$ (1,398) $ 2,063,224 $ 35,590 $ 199,959 $ 11,274,162 - $ Special Revenue Funds
105 1162 of 1216
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 54,768 $ 54,768 $ 49,768 $ (5,000) $ Intergovernmental revenues - 289,594 666,243 376,649
Investment earnings - - (286) (286)
Rents and ground leases 15,000 15,000 - (15,000)
Fines, forfeitures and penalties - - 160 160
Other revenues 7,500 7,500 - (7,500)
Total revenues 366,862 77,268 715,885 349,023
EXPENDITURES:
Current:
Public works 71,160 71,160 43,267 27,893
Capital outlay 2,366,269 2,613,269 1,598,963 1,014,306
Total expenditures 2,684,429 2,437,429 1,642,230 1,042,199 REVENUES OVER (UNDER) EXPENDITURES (2,317,567) (2,360,161) (926,345) 1,391,222 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 $ (1,817,567) (1,860,161) $ (426,345) 1,391,222 $ FUND BALANCES:
Beginning of year 2,820,081
End of year $ 2,393,736
Budget Amounts
For the year ended June 30, 2022
106 1163 of 1216
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 - $ - $ (10,747) $ (10,747) $
Charges for services 229,834 229,834 2,452,573 2,222,739 Total revenues 229,834 229,834 2,441,826 2,211,992
EXPENDITURES:
Capital outlay 258,000 243,070 - 243,070
Total expenditures 243,070 258,000 - 243,070
Net change in fund balances $ (13,236) (28,166) $ 2,441,826 2,455,062 $ FUND BALANCES:
Beginning of year, as restated 259,999
End of year $ 2,701,825
For the year ended June 30, 2022
Budget Amounts
107 1164 of 1216
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 906,667 $ 906,667 $ 850,633 $ (56,034) $ Investment earnings 5,000 5,000 (5,932) (10,932)
Other revenues 7,636 7,636 18,050 10,414
Total revenues 919,303 919,303 862,751 (56,552)
EXPENDITURES:
Current:
Public works 510,283 510,283 470,394 39,889
Capital outlay 564,445 564,445 19,570 544,875
Total expenditures 1,074,728 1,074,728 489,964 584,764
Net change in fund balances $ (155,425) (155,425) $ 372,787 528,212 $ FUND BALANCES:
Beginning of year 356,517
End of year $ 729,304
For the year ended June 30, 2022
Budget Amounts
108 1165 of 1216
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 - $ - $ (8,594) $ (8,594) $
Total revenues - (8,594) - (8,594)
EXPENDITURES:
Capital outlay - - - -
Total expenditures - - - -
Net change in fund balances $ - $ (8,594) - $ (8,594)
FUND BALANCES:
Beginning of year, as restated (14,059)
End of year $ (22,653)
For the year ended June 30, 2022
Budget Amounts
109 1166 of 1216
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 390,147 $ 475,247 $ 470,247 $ (5,000) $ Investment earnings 8,000 (3,152) (23,258) (20,106)
Total revenues 472,095 398,147 446,989 (25,106)
EXPENDITURES:
Current:
General administration 48,930 48,930 49,664 (734)
Public works 150,259 150,259 128,654 21,605
Capital outlay 738,000 738,000 406 737,594
Total expenditures 937,189 937,189 178,724 758,465
Net change in fund balances $ (465,094) (539,042) $ 268,265 733,359 $ FUND BALANCES:
Beginning of year 2,057,183
End of year $ 2,325,448
For the year ended June 30, 2022
Budget Amounts
110 1167 of 1216
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 323,978 $ 323,978 $ 255,408 $ (68,570) $ Investment earnings 150 150 883 733
Total revenues 324,128 324,128 256,291 (67,837)
EXPENDITURES:
Current:
Public works 420,685 437,685 297,082 140,603
Total expenditures 437,685 420,685 297,082 140,603
Net change in fund balances $ (113,557) (96,557) $ (40,791) 72,766 $ FUND BALANCES:
Beginning of year 1,853
End of year $ (38,938)
For the year ended June 30, 2022
Budget Amounts
111 1168 of 1216
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 $ 66,826 $ 6,766 $ Investment earnings 6,000 6,000 (1,769) (7,769)
Total revenues 66,060 66,060 65,057 (1,003)
EXPENDITURES:
Current:
Public works 140,858 140,858 106,591 34,267
Total expenditures 140,858 140,858 106,591 34,267
Net change in fund balances $ (74,798) (74,798) $ (41,534) 33,264 $ FUND BALANCES:
Beginning of year 192,377
End of year $ 150,843
For the year ended June 30, 2022
Budget Amounts
112 1169 of 1216
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 - $ - $ (766) $ (766) $
Total revenues - - (766) (766)
EXPENDITURES:
Current:
Public safety 86,562 86,562 29,000 (57,562)
Total expenditures 86,562 86,562 29,000 57,562
Net change in fund balances $ (86,562) $ (86,562) (29,766) $ 56,796 FUND BALANCES:
Beginning of year 87,341
End of year $ 57,575
For the year ended June 30, 2022
Budget Amounts
113 1170 of 1216
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 $ 265,501 $ 95,235 $ Intergovernmental revenues 156,727 156,727 161,285 4,558 Investment earnings 5,600 5,600 (11,856) (17,456)
Fines, forfeitures and penalties 45,000 45,000 28,821 (16,179) Total revenues 377,593 377,593 443,751 66,158
EXPENDITURES:
Current:
Public safety 321,523 321,523 277,565 43,958
Capital outlay 7,500 7,500 - 7,500
Total expenditures 329,023 329,023 277,565 51,458
Total other financing sources (uses) - - - -
Net change in fund balances $ 48,570 $ 48,570 166,186 $ 117,616 FUND BALANCES:
Beginning of year 1,045,955
End of year $ 1,212,141
For the year ended June 30, 2022
Budget Amounts
114 1171 of 1216
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 52,972 $ 52,972 $ 21,934 $ (31,038) $ Contributions 5,000 5,000 - (5,000)
Investment earnings - - 1,297 1,297
Charges for services 316,956 316,956 216,836 (100,120)
Total revenues 374,928 374,928 240,067 (134,861)
EXPENDITURES:
Current:
General administration 508,070 508,070 414,638 93,432
Capital outlay 62,696 62,696 24,709 37,987
Total expenditures 570,766 570,766 439,347 131,419
REVENUES OVER (UNDER) EXPENDITURES (195,838) (195,838) (199,280) (3,442) OTHER FINANCING SOURCES (USES):
Transfers in 160,124 197,184 197,184 -
Total other financing sources (uses) 197,184 160,124 197,184 - Net change in fund balances $ 1,346 (35,714) $ (2,096) (3,442) $ FUND BALANCES:
Beginning of year (3,131)
End of year $ (5,227)
For the year ended June 30, 2022
Budget Amounts
115 1172 of 1216
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 62,050 $ 6,000 $ 5,574 $ (426) $
Investment earnings - - 5,545 5,545
Rents and ground leases 69,250 23,457 24,625 1,168
Charges for services 385,778 262,170 330,704 68,534
Other revenues 2,844 3,638 1,972 (1,666)
Total revenues 295,265 519,922 368,420 73,155
EXPENDITURES:
Current:
Recreation 1,529,462 1,373,900 1,319,669 54,231
Capital outlay 12,586 42,500 45,595 (3,095)
Total expenditures 1,416,400 1,542,048 1,365,264 51,136 REVENUES OVER (UNDER) EXPENDITURES (1,121,135) (1,022,126) (996,844) 124,291 OTHER FINANCING SOURCES (USES):
Proceeds from sale of asset - - 22,172 (22,172)
Transfers in 673,331 1,091,962 950,998 (140,964)
Total other financing sources (uses) 1,091,962 673,331 973,170 (118,792) Net change in fund balances $ (29,173) (348,795) $ (23,674) 5,499 $ FUND BALANCES:
Beginning of year 29,162
End of year $ 5,488
For the year ended June 30, 2022
Budget Amounts
116 1173 of 1216
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 205,000 $ 205,000 $ - $ (205,000) $ Investment earnings 7,000 7,000 3,072 (3,928)
Charges for services 1,387,700 1,387,700 902,764 (484,936) Other revenues 6,000 6,000 - (6,000)
Total revenues 1,605,700 1,605,700 905,836 (699,864)
EXPENDITURES:
Current:
Community development 1,724,753 2,611,632 1,782,386 829,246 Capital outlay 3,000 3,000 2,943 57
Total expenditures 2,614,632 1,727,753 1,785,329 829,303 REVENUES OVER (UNDER) EXPENDITURES (1,008,932) (122,053) (879,493) 129,439 OTHER FINANCING SOURCES (USES):
Transfers in - 481,051 481,051 -
Total other financing sources (uses) 481,051 - 481,051 - Net change in fund balances $ (122,053) $ (527,881) (398,442) $ 129,439 FUND BALANCES:
Beginning of year (134,313)
End of year $ (532,755)
For the year ended June 30, 2022
Budget Amounts
117 1174 of 1216
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 - $ - $ (962) $ (962) $
Total revenues - - (962) (962)
Net change in fund balances $ - $ - (962) $ (962)
FUND BALANCES:
Beginning of year (436)
End of year $ (1,398)
For the year ended June 30, 2022
Budget Amounts
118 1175 of 1216
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:
Intergovernmental revenues - $ 28,327 $ 28,327 $ - $
Investment earnings 8,000 8,000 (20,738) (28,738)
Other revenues 360,000 360,000 386,514 26,514
Total revenues 396,327 368,000 394,103 (2,224)
EXPENDITURES:
Current:
Public works 118,645 121,645 71,960 (49,685)
Capital outlay 642,800 642,800 122,281 520,519
Total expenditures 764,445 761,445 194,241 570,204
Net change in fund balances $ (368,118) (393,445) $ 199,862 567,980 $ FUND BALANCES:
Beginning of year 1,863,362
End of year $ 2,063,224
For the year ended June 30, 2022
Budget Amounts
119 1176 of 1216
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 - $ - $ 8,173 $ 8,173 $
Total revenues - 8,173 - 8,173
EXPENDITURES:
Current:
General administration - - - -
Total expenditures - - - -
Net change in fund balances $ - $ 8,173 - $ 8,173
FUND BALANCES:
Beginning of year 27,417
End of year $ 35,590
For the year ended June 30, 2022
Budget Amounts
120 1177 of 1216
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:
Investment earnings - $ - $ (2,216) $ (2,216) $
Other revenues - - 17,499 17,499
Total revenues - 15,283 - 15,283
EXPENDITURES:
Current:
General administration - - - -
Total expenditures - - - -
Net change in fund balances $ - $ 15,283 - $ 15,283
FUND BALANCES:
Beginning of year 184,676
End of year $ 199,959
For the year ended June 30, 2022
Budget Amounts
121 1178 of 1216
City of Pinole
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual American Rescue Plan Act Fund
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental revenues - $ 2,302,505 $ 533,606 $ (1,768,899) $ Total revenues 2,302,505 - 533,606 (1,768,899)
EXPENDITURES:
Current:
General administration - 533,606 - 533,606
Total expenditures - 533,606 - (533,606)
Net change in fund balances $ 2,302,505 - $ (2,302,505) - $ FUND BALANCES:
Beginning of year -
End of year $ -
For the year ended June 30, 2022
Budget Amounts
122 1179 of 1216
City of Pinole
Section 115 Pension Fund Schedule
(General Fund)
June 30, 2022
Section 115 *
Pension
Fund
ASSETS
Restricted cash - Pension 17,106,978 $
Total assets $ 17,106,978
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
Liabilities:
Due to general fund $ 1,061,757
Total liabilities 1,061,757
FUND BALANCES
Restricted 16,045,221
Total fund balances 16,045,221
Total liabilities, deferred inflows of
resources, and fund balances $ 17,106,978
* 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.
123 1180 of 1216
Section 115 Pension Fund Schedule
Section 115 *
Pension
Fund
REVENUES:
Investment earnings (2,248,500) $
Total revenues (2,248,500)
EXPENDITURES:
Current:
General government 87,037
Total expenditures 87,037
REVENUES OVER (UNDER)
EXPENDITURES (2,335,537)
OTHER FINANCING SOURCES (USES):
Transfers out (1,061,736)
Total other financing sources (uses) (1,061,736)
Net change in fund balances (3,397,273)
FUND BALANCES:
Beginning of year 19,442,494
End of year $ 16,045,221
City of Pinole
(General Fund)
For the year ended June 30, 2022
* 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.
124 1181 of 1216
STATISTICAL SECTION (UNAUDITED)
125 1182 of 1216
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126 1183 of 1216
City of Pinole, CA
Statistical Section
This part of the City of Pinole's Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health.
Contents
Financial Trends
These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time.
Revenue Capacity
These schedules contain trend information to help the reader assess the factors affecting the City's ability to generate its most significant revenue sources, primarily tax revenues.
Debt Capacity
These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place and to help make comparisons over time and with other governments.
Operating Information
These schedules contain information about the City's operations and resources to help the reader understand how the City's financial information relates to the services the City provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year.
The City implemented GASB Statement 34 in 2004; schedules presenting government-wide information include information beginning in that year. 127 1184 of 1216
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Governmental activities Net investment in capital assets 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 $ 31,695,972 $ Restricted 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 34,342,971 Unrestricted 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) (52,223,172) Total governmental activities net position 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 $ 13,815,771 $ Business-type activities Net investment in capital assets 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 $ 12,863,679 $ Unrestricted 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 11,022,842 Total business-type activities net position 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 $ 23,886,521 $ Primary government Net investment in capital assets 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 $ 44,559,651 $ Restricted 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 34,342,971 Unrestricted 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) (41,200,330) Total primary government net position 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 $ 37,702,292 $
CITY OF PINOLE
NET POSITION BY COMPONENT, Last Ten Fiscal Years
128 1185 of 1216
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
ExpensesGovernmental Activities: General government 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 $ 5,539,414 $ Public safety 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 19,255,147 Public services 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 3,943,251 Recreation 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 1,878,342 Community development 654,535 779,147 833,061 1,184,385 1,065,848 1,642,031 2,338,177 1,365,580 1,275,333 2,271,609 Interest and fiscal changes 149,097 280,173 290,860 305,569 338,507 331,464 287,729 304,844 331,218 388,876 Total government activity expenses 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 33,276,639 Business-type activities: Wastewater utility 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 7,266,212 Total business-type activities expenses 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 7,266,212 Total primary government expenses 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 $ 40,542,851 $ Program RevenuesGovernmental Activities: Charges for services: General government 286,722 $ 502,094 $ 590,359 $ 236,512 $ 354,357 $ 648,409 $ 643,524 $ 678,065 $ 686,519 $ 2,106,826 $ Public safety 146,658 586,131 534,095 461,330 640,785 1,435,741 1,186,008 1,388,295 1,440,572 1,925,962 Public services 461,578 946,387 573,320 545,273 310,073 153,810 169,758 66,676 74,897 739,693 Recreation 927,758 1,195,728 998,792 871,497 783,783 846,822 770,397 501,860 172,486 379,374 Community development 1,083,517 527,441 666,863 244,449 162,634 1,153,907 2,368,209 736,346 503,324 902,764 Operating grants and contributiions 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 2,020,534 Capital grants and contributions 755,433 640,884 1,068,087 1,094,371 1,262,813 - - - - 712,728 Total governmental program revenues 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 8,787,881 Business-type activities:
Charges for services: Wastewater utility 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 7,770,772 Capital grants and contributions 218,193 - - - - - - - - - Total business-type program revenues 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 7,770,772 Total primary government program revenues 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 $ 16,558,653 $ Net (Expense)/RevenueNet (Expense)/Revenue Governmental (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) $ (24,488,758) $ Net (Expense)/Revenue Business-type 752,402 1,614,029 2,028,957 2,225,942 1,718,109 1,330,543 2,281,721 1,388,987 838,526 504,560 Total primary government net expense (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) $ (23,984,198) $ Change in Net PositionGovernmental activities (1,887,090) $ (22,757,764) $ (4,193,825) $ (2,388,176) $ (32,933) $ 12,710,019 $ 2,874,178 $ (50,793) $ (785,272) $ (6,234,492) $ Business-type activities 758,287 1,602,798 (2,037,223) (2,246,079) 1,721,679 1,389,501 2,411,362 1,673,561 882,785 307,802 Total primary government (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 $ (5,926,690) $
CITY OF PINOLE
CHANGES IN NET POSITION, Last Ten Fiscal Years
(accrual basis of accounting)
129 1186 of 1216
(b) (a) ( c )
Fiscal
Year Property Tax Sales Tax
Franchise
Tax Transfer Tax
Occupancy
Tax Utility Tax Other Total
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 2022 4,182,262 9,613,625 788,146 124,946 487,687 2,063,773 2,550,587 19,811,026 (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
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Fiscal Year Property Tax Sales Tax Franchise Tax Transfer Tax Occupancy Tax Utility Tax Other 130 1187 of 1216
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General Fund Nonspendable 8,950,035 $ 11,157 $ - $ 7,275 $ 6,712 $ 12,669 $ 13,178 $ 463,067 $ 18,782 $ 45,296 $ Restricted - - - - - 133,586 17,346,090 18,255,487 19,623,678 17,271,818 Assigned 2,209,430 2,899,585 1,030,000 - - 2,531,677 2,531,677 7,672,065 7,836,178 8,533,768 Committed 12,599,292 - - - - - - 579,257 - -
Unassigned (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 9,406,554 Total General Fund 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 $ 35,257,436 $ All Other Governmental Funds Nonspendable 7,023,664 $ 2,591,393 $ 2,591,393 $ 6,882,968 $ - $ - $ 315,552 $ 315,552 $ 315,552 $ Restricted 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 17,236,034 Assigned 1,340,327 783,083 3,661,477 - - 2,366,429 2,800,614 2,751,350 2,526,571 2,069,680 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) (600,971) Capital project funds 933,006 (24,842) (265,778) - - - - - - - Debt service funds - (3,018,401) - - - - - - - -
Total all other governmental funds 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 $ 19,020,295 $ [1]
Notes:
CITY OF PINOLE
FUND BALANCES, GOVERNMENTAL FUNDS, Last Ten Fiscal Years (modified accrual basis of accounting)
[1] Fund balance increased as a result of revenue in excess of expenditures at fiscal year-end. Sale of property in General Fund. 131 1188 of 1216
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
RevenuesTaxes 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 $ 20,403,637 $ Intergovernmental 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 2,837,951 Loan repayments 48,464 108,021 45,666 85,849 145,457 15,023 1,656,645 544,892 107,912 11,658 Contributions 174,153 94,032 51,313 65,317 146,112 30,595 22,746 24,889 14,274 10,574 Investment earnings 113,723 595,808 311,168 188,790 16,188 88,092 1,529,630 1,790,740 2,888,309 (2,754,154) Rents and ground leases 301,537 273,435 264,301 224,952 300,441 303,618 274,153 185,594 131,335 121,141 Charges for service 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 5,581,014 Fines, forfeitures and penalties 50,170 60,734 58,863 41,564 48,442 75,670 89,911 68,576 41,236 39,392 Other revenues 405,411 137,713 778,737 365,857 532,173 834,086 746,909 709,677 541,679 515,174 Total revenues 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 26,766,387 ExpendituresGeneral administration 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 4,775,249 Public safety 8,807,959 9,206,393 9,165,922 9,635,264 10,067,977 10,535,903 11,801,897 12,975,773 13,889,090 15,143,959 Public services 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 2,448,651 Recreation 1,439,933 1,038,572 1,107,168 906,302 1,042,006 960,325 1,069,375 1,000,400 820,918 1,573,083 Community development 1,520,667 742,413 818,580 945,646 935,276 1,596,240 1,237,892 1,333,476 1,205,200 2,143,148 Debt service - Principal 334,287 381,144 373,007 369,177 363,151 361,674 356,117 301,709 227,389 244,820 Debt service - Interest 149,097 280,173 290,860 305,569 338,507 331,464 287,729 304,844 331,218 388,876 Capital outlay 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 2,627,507 Total expenditures 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 29,345,293 Other financing sources (uses)Bond, note and loan proceeds - 458,000 - - - - - - - - Gain (loss) on sale of property 6,064 6,559 17,259 1,909 10,017,210 3,140 13,855 83,209 279,354 Transfers in - - 447,050 446,000 671,364 826,926 7,135,205 1,170,058 1,681,841 2,129,233 Transfers out - - (447,050) (446,000) (671,364) (826,926) (7,135,205) (1,170,058) (1,681,841) (2,129,233) Transfers from enterprise fund - - - - - - - - - -
Extraordinary item - (22,634,276) - - - - - - - -
Total other financing sources 6,064 (22,169,717) 17,259 1,909 - 10,017,210 3,140 13,855 83,209 279,354 Net change in fund balance (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 $ (2,299,552) $ Debt service as a % of noncapital expenditures 3.0% 4.1% 4.2% 3.8% 4.0% 3.7% 3.2% 2.8% 2.5% 2.4%
CITY OF PINOLE
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS, Last Ten Fiscal Years (modified accrual basis of accounting)
132 1189 of 1216
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 (b) 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% 2022 2,243,018,566 523,349,776 25,857,496 20,790,834 2,813,016,672 56,076,525 2,869,093,197 3,409,630,355 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. 133 1190 of 1216
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]
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
2022 1.0000 0.0060 0.0020 0.0176 0.2939 1.3195
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
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
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] 134 1191 of 1216
Taxpayer
Taxable Assessed
Value
Percent of Total
City Taxable
Assessed Value
Taxable Assessed
Value
Percent of Total
City Taxable
Assessed Value
Che Chen and Shu Fen Liu Trust 23,521,935 $ 0.84% 20,270,500 $ 1.24% Gateway Pinole Vista LLC 73,232,443 $ 2.60%
Fairfield Bayside LLC 39,073,423 $ 1.39%
Kaiser Foundation Health Plan 38,423,265 $ 1.37% 33,112,015 $ 2.03% NHI-Reit of Next House LLC 18,526,252 $ 0.66%
Pinole Ridge Mall LLC 20,531,851 $ 0.73% 1,127,127,418 $ 69.09% ROIC Pinole Vista LLC 39,368,313 $ 1.40% 21,201,954 $ 1.30% SCG Pinole Valley Shopping Center 43,187,292 $ 1.54%
Target Corporation 20,005,538 $ 0.71%
Appian Associates $ 0.93% 15,105,240
Dayton Hudson Corporation $ 1.06% 17,240,171
KW Pinole $ 1.30% 21,214,297
Peter L. Thingpen $ 1.12% 18,229,967
Thomas Fitzgerald Trust 17,134,028 $ 0.61% 11,843,777 $ 0.73% TKG Pinole LLC $ 3.69% 60,138,399
$ 11.84% 1,345,483,738 333,004,340 $ 82.47%
Total Net Assessed Valuation:
Fiscal Year 2021-22 $ 2,813,016,672
Fiscal Year 2012-13 $ 1,631,440,734
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
2021-22 2012-13
135 1192 of 1216
Fiscal
Year
City Property
Tax Levied &
Collected
Redevelopment/
Successor Agency
Property Tax
Levied & Collected
Total Property
Tax Levied &
Collected
Percent of
Levy
Collected [3]
Value of City
Property Subject to
Local Tax Rate
Value of
Redevelopment
Property Subject to
Local Tax Rate
Local Tax Rate
Applied to Assessed
Value
Effective
Taxrate for
City Levy
Effective Taxrate
for Redevelopment
Agency Levy
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% 2022 2,736,121 104,569 [2] 2,840,690 100% 1,456,806,850 1,387,850,611 2,844,657,461 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
$1.20
$1.40
$1.60
$1.80
$2.00
$2.20
$2.40
$2.60
$2.80
$3.00
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Millions
Total Property Tax…
$0.80
$1.30
$1.80
$2.30
$2.80
$3.30
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Billions
Local Tax Rate Applied to…
136 1193 of 1216
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 [a] [b]
Major Business Groups
Autos and Transportation 127,938 $ 124,234 $ 128,585 $ 143,531 $ 142,634 $ 129,758 $ 149,328 $ 125,285 $ 131,364 $ 145,204 $ Building and Construction 194,806 205,843 228,851 235,399 256,743 252,433 248,668 240,333 287,086 253,926 Business and Industry 114,078 90,046 74,621 74,664 69,064 68,148 81,173 80,562 66,279 79,061 Food and Drugs 327,071 332,824 369,426 354,347 366,064 376,151 408,251 422,665 467,507 435,658 Fuel and Service Stations 428,169 426,327 431,453 393,583 355,390 362,450 482,117 370,686 412,186 596,460 General Consumer Goods 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 1,333,100 Restaurants and Hotels 576,500 618,795 660,763 711,659 715,966 715,885 813,411 724,290 741,032 936,053 Adjustments & Others - 35,173 (50,925) 24,448 - 506 5,972 1,211 484 5,260 Point of Sale s/totals 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 3,784,722 County Pool Allocations 311,692 366,939 408,386 431,500 499,708 490,660 519,400 747,782 927,704 861,541 State Pool Allocations 1,571 2,064 2,129 2,400 2,637 1,903 1,829 1,710 2,650 343 Local Transaction Tax [a] 1,684,995 1,796,832 1,894,578 3,789,711 3,953,872 4,089,586 4,402,698 3,944,917 4,654,311 5,041,168 Administrative Cost - SBE (49,811) (54,106) (58,890) (82,268) (95,537) (90,183) (87,797) (79,691) (62,570) (74,149) Fiscal Year Totals 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 $ 9,613,625 $ City Direct Sales Tax Rate 1.25% 1.25% 1.25% 1.75% 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
137 1194 of 1216
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2022-22 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% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%State Education Protection Account 0.25% 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% 0.50% 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 7.75% 7.75% 7.75% 7.75% 7.50% 7.50% 7.50% 7.50% 8.00% 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% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% Direct Sales Taxes 1.25% 1.25% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% 1.75% [d] Total Sales Tax Levy - City of Pinole 9.00% 9.00% 9.50% 9.50% 9.25% 9.25% 9.25% 9.25% 9.75% 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
138 1195 of 1216
BUSINESS NAME BUSINESS CATEGORY
7 ELEVEN SERVICE STATIONS
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
MCDONALDS QUICK-SERVICE RESTAURANTS
MICHAELS ARTS & CRAFTS ART/GIFT/NOVELTY STORES
O'REILLY AUTO PARTS AUTOMOTIVE SUPPLY STORES
ORIGINAL MELS DINER QUICK-SERVICE RESTAURANTS
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
TARGET DISCOUNT DEPARTMENT STORES
TJ MAXX FAMILY APPAREL
TRADER JOES GROCERY STORES
ULTA BEAUTY SPECIALTY STORES
WESTLAKE ACE HARDWARE BUILDING MATERIALS
PERCENT OF FISCAL YEAR TOTAL PAID BY TOP 25 ACCOUNTS = 59.99% 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, 2022
139 1196 of 1216
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
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$ 2022 [a] 2,512,885 [a] - 6,321,000 24,105,950 32,939,835 2.3% 1,768$ 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
140 1197 of 1216
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
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
2022 [b] 2,512,885 2,512,885 - 0.17% [a] 135
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. 141 1198 of 1216
2021-22 Assessed Valuation: $ 2,869,093,197
Total Debt [1] City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2022 % Applicable Debt 6/30/22 Bay Area Rapid Transit District $ 2,521,570,000 0.322% $ 8,119,455 Contra Costa Community College District 598,780,000 1.230% 7,364,994 West Contra Costa Unified School District 1,244,985,065 7.939% 98,839,364 West Contra Costa Healthcare District Parcel Tax Obligations 44,580,000 7.488% 3,338,150 East Bay Regional Park District 184,590,000 0.515% 950,639 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 118,612,602
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Contra Costa County General Fund Obligations 224,500,000 $ 1.226% 2,752,370 $ Contra Costa County Fire Protection Pension Obligations 10,900,000 0.011% 1,199 West Contra Costa Unified School District Certificates of Participation 6,005,000 7.939% 476,737 City of Pinole Pension Obligation Bonds 2,512,884 100.000% 2,512,884 Alameda-Contra Costa Transit District Certificates of Participation 11,655,000 0.033% 3,846 GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT 5,747,036 $ Less: Contra Costa County obligations supported from revenue funds 707,318 TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT 5,039,718 $ OVERLAPPING TAX INCREMENT DEBT (Successor Agency): $ 100.000% 7,790,000 7,790,000 $ TOTAL DIRECT DEBT $ 2,512,884
TOTAL GROSS OVERLAPPING DEBT $ 129,636,754
TOTAL NET OVERLAPPING DEBT $ 128,929,436
GROSS COMBINED TOTAL DEBT $ 132,149,638 [2]
NET COMBINED TOTAL DEBT $ 131,442,320
Ratios to 2021-22 Assessed Valuation:
Total Overlapping Tax and Assessment Debt.....................................…............. 4.13% Total Direct Debt ($2,512,884)...................................….................................... 0.09% Gross Combined Total Debt................................................................................ 4.61% Net Combined Total Debt ……………………...……………..…….…………....…… 4.58% Ratios to Redevelopment Successor Agency Incremental Valuation ($1,387,850,611):
Total Overlapping Tax Increment Debt ………………………….….…....……….… 0.56% Notes:
[2] Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.
Source : California Municipal Statistics, Inc.
CITY OF PINOLE
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
JUNE 30, 2022
[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.
142 1199 of 1216
ASSESSED VALUATION:
Secured property assessed value, net of exempt real property $ 2,844,657,461 BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) [a] $ 106,674,655 AMOUNT OF DEBT SUBJECT TO LIMIT: 2,512,885
LEGAL BONDED DEBT MARGIN: $ 109,187,540
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
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% 2022 2,844,657,461 106,674,655 2,512,885 104,161,770 2.36% 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
143 1200 of 1216
Net Revenue
Fiscal Gross Operating Available for
Year Revenue [a] Expenses [b] Debt Service Principal Interest Total Coverage 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 2022 7,770,772 6,736,755 1,034,017 329,000 191,322 520,322 1.99 Notes:
[a]
[b] Includes all wastewater operating expenses less depreciation.
Source: City of Pinole Finance
Includes all wastewater operating revenue, non-operating interest revenue, connection fees and other non-operating revenue.
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 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Coverage
144 1201 of 1216
Fiscal Year
City Population
[a]
Personal Income
[b]
Median
Household
Income [c]
Per Capita
Personal
Income
School
Enrollment [d]
Unemployment
Rate [e]
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%
2022 18,628 1,432,455,944 142,800 76,898 3,802 3.0%
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
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
Unemployment Rate
18,000
18,200
18,400
18,600
18,800
19,000
19,200
19,400
19,600
City Population
145 1202 of 1216
Employer
Employee
Count
Percentage
of City Total Employer
Employee
Count
Percentage
of City Total
Target 237 2.42% West Contra Costa USD 320 7.50%
West Contra Costa USD 185 1.89% Lucky's / Food Max 169 3.96% Kaiser Health Center 144 1.47% Target 136 3.19%
City of Pinole 117 1.19% Best Buy 108 2.53%
In-N-Out Burger 110 1.12% K-Mart 107 2.51%
Sprouts Farmers Market 100 1.02% City of Pinole 99 2.32% Trader joe's 98 1.00% Safeway 78 1.83%
MV Public Transportation, Inc. 97 0.99% Kaiser Health Center 75 1.76% Pathway to Choices 85 0.87% Trader Joe's 71 1.66%
Burlington Coat Factory 82 0.84% Round Table Pizza 65 1.52% Top 10 Employer Count 1,255 1,228
Total Workforce 9,800 12.81% 4,265 28.79%
Data Sources:
City of Pinole (Business Licensing)
California Department of Education
Employment Development Department
CITY OF PINOLE
CURRENT AND NINE YEARS AGO
2022 2013
PRINCIPAL EMPLOYERS
146 1203 of 1216
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Function / Program [a]
General government
Administration 5.0 5.0 5.0 5.0 5.0 5.0 5.5 5.5 6.5 7.5
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 1.5 2.0
Building 1.0 2.0 2.0 2.0 2.5 3.5 3.5 4.0 4.0 4.0
Other 4.0 4.0 4.0 3.0 3.0 3.0 3.0 2.8 3.8 3.8
Police
Sworn 27.0 27.0 27.0 27.0 27.0 28.0 28.0 28.0 28.0 28.0 Non-sworn 13.0 13.0 13.0 14.5 14.5 17.5 18.0 18.5 18.2 19.3 Fire
Sworn 15.0 15.0 15.0 15.0 14.0 14.0 14.0 14.0 14.0 16.0 Non-sworn - - - 0.5 1.0 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 2.5 4.0
Maintenance 6.0 6.0 6.0 10.0 10.0 10.0 10.0 11.3 10.3 12.3 Redevelopment - - - - - - - - - -
Parks and recreation 8.0 11.0 11.0 13.0 13.0 13.0 13.0 11.5 11.5 12.5 Wastewater collection and treatment 13.0 13.0 13.0 10.5 10.5 10.5 10.5 10.5 10.5 11.5 Total 99.5 103.5 103.5 108.0 108.0 113.0 114.0 114.4 115.2 125.2 Notes:
[a] Paid employees only (excluding reserves and volunteers) Source: City of Pinole Annual Budget Documents
CITY OF PINOLE
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS YEARS
147 1204 of 1216
Date of Incorporation 1903
Form of Government Council-ManagerNumber of Employees(including police & fire) Full-time 97 Part-time 27Area in square miles 5 square miles Statistics by Fiscal Year 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Fire Protection : Number of fire personnel & officers (incl. Reserves) 17 15 15 15 15 15 15 15 17 15 Number of calls answered 2,548 2,086 2,574 2,493 2,515 2,647 2,406 1,908 2,205 2,250 Number of inspections conducted 491 375* 231 168 89 45 404 60 7 48 Number of building plan reviews 46 35 29 28 21 34 66 50 25 32 Number of fire investigations Not Available Not Available Not Available Not Available Not Available Not Available Not Available 2 Not Available Not AvailablePolice Protection : Number of police personnel & officers (incl. Reserves) 46 46 46 46 45.5 41.5 41.5 40 40 40 Number of police personnel per thousand population 2.47 2.37 2.36 2.36 2.37 2.19 2.21 2.11 2.13 2.14 Community Development: Number of residential building permits 1038 905 843 749 690 777 1027 1061 800 651 Valuation of residential building permits 12,320,050 $ 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 $ Number of commercial building permits 45 45 43 153 84 92 46 22 43 59 Valuation of commercial building permits 2,197,897 $ 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 $ Sewer System: Daily average treatment in gallons 2,726,016 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 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
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Valuation of residential
building permits
Valuation of commercial
building permits
50 504540353025201510
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Number of police
personnel & officers (incl.
Reserves)
Number of police
personnel per thousandpopulation
148 1205 of 1216
City Streets:
Miles of streets 63 Number of street lights 373 (city owned) 971 (electric & private utility)
Statistics by Fiscal Year 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Fire Protection : Number of stations 1 111111111
Police Protection : Number of stations 1 111111111
Number of patrol units 11 13 13 13 13 13 13 13 13 13
Number of security units 2 222222222
Recreation and culture : Swim Center 1 111111111
Community Theater 1 111111111 Senior Center 1 111111111 Youth Center 1 111111111
Pre-school Center 1 111111111
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 1 111111111
Number of service connections 5,416 5,416 5,416 5,416 5,416 5,416 5,416 5,416 5,414 5,414Schools: Elementary-public 5 555544444 Elementary-private 2 222222111
Junior High School-public 1 111111111
High School-public 1 111111111
Source: City of Pinole Finance
CITY OF PINOLE
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
149 1206 of 1216
City of
Pinole
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, 2022
ATTACHMENT B
1207 of 1216
1208 of 1216
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, 2022. 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, 2022. 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. 1209 of 1216
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, 2022. 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 11, 2023
1210 of 1216
City of Pinole 2014 Measure S Fund
Schedule of Revenues and Expenditures
For the year ended June 30, 2022
3 *This schedule is prepared using the modified accrual basis of accounting.
Sales and use taxes $ 2,498,944
Investment earnings (54,761)
Other revenue 141,440
Total revenues 2,585,623
EXPENDITURES:
Salary 351,159
Benefits 198,276
Improvements 1,217,488
Insurance 17,111
Professional Services 42,576
Admin expense 220,480
Travel and training 15,000
Total expenditures $ 2,062,090
1211 of 1216
City of
Pinole
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, 2022
ATTACHMENT C
1212 of 1216
1213 of 1216
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, 2022. 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, 2022. 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. 1214 of 1216
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, 2022. 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 11, 2023
1215 of 1216
City of Pinole 2006 Measure S Fund
Schedule of Revenues and Expenditures
For the year ended June 30, 2022
3 *This schedule is prepared using the modified accrual basis of accounting.
REVENUES:
Sales and use taxes $ 2,501,974
Investment earnings (20,227)
Other revenue 409,557
Total revenues 2,891,304
EXPENDITURES:
Salary 1,293,889
Benefits 850,371
Equipment 31,842
Insurance 74,708
Professional Services 346,110
Admin expense 6,266
Total expenditures $ 2,603,186
1216 of 1216