Pinole City Council
March 19, 2024

Business-type
Activities
Wastewater Utility
Enterprise Fund
OPERATING REVENUES:

Charges for services $ 7,831,703
Total operating revenues 7,831,703
OPERATING EXPENSES:

Sewer treatment plant 3,566,812
Sewer maintenance 1,235,899
Depreciation 984,911
Total operating expenses 5,787,622
OPERATING INCOME (LOSS) 2,044,081
NONOPERATING REVENUES (EXPENSES):

Interest revenue 401,683
Interest expense (576,372)
Total nonoperating revenues (expenses) (174,689)
Changes in net position 1,869,392
NET POSITION:

Beginning of year, as restated (Note 18) 18,393,663
End of year $ 20,263,055
City of Pinole
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Fund
For the Year Ended June 30, 2023
See accompanying Notes to the Basic Financial Statements. 40

Business-type
Activities
Wastewater Utility
Enterprise Fund
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers $ 7,586,869
Cash paid to suppliers (3,387,666)
Cash paid to employees (2,285,592)
Net cash provided by operating activities 1,913,611
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Gain on disposal of capital assets 93,066
Acquisition and construction of capital assets (365,322) Principal payment of long-term debt (1,020,383)
Interest paid on debt (591,241)
Net cash (used in) capital and related financing activities (1,883,880) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest and dividends 289,762
Net cash provided by investing activities 289,762
Net change in cash and cash equivalents 319,493
CASH AND CASH EQUIVALENTS:

Beginning of year 18,072,768
End of year $ 18,392,261

RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES:

Operating income $ 2,044,081
Adjustments to reconcile operating to net
cash provided by (used in) operating activities:

Depreciation 984,911
Changes in operating assets and liabilities, and
deferred outflows and inflows of resources:

Other receivables 338,691
Due from other governments (583,525)
Prepaid items (3,196)
Inventory (12,161)
Deferred outflow pension-related items (919,369)
Deferred outflow OPEB-related items 166,689
Accounts payable (30,693)
Accrued liabilities 59,594
Compensated absences 35,034
Net pension liability 1,434,660
Total OPEB liability (795,243)
Deferred inflows - pension related (1,421,814)
Deferred inflows - OPEB related 615,952
Total adjustments (130,470)
Net cash provided by operating activities $ 1,913,611
City of Pinole
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2023
See accompanying Notes to the Basic Financial Statements. 41

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42

FIDUCIARY FUND FINANCIAL STATEMENTS
43

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44

Total
Fiduciary
Funds
ASSETS
Cash and cash equivalents $ 5,755,586
Interest receivable 18,295
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 7,218,846
Total assets 17,902,289

LIABILITIES
Accounts payable 19,354
Deposits payable 164,529
Unearned revenue 23,668
Interest payable 34,442
Bonds payable - due within one year 3,570,000
Total liabilities 3,811,993

NET POSITION
Restricted for:

Held in trust for dissolution of RDA 14,069,748
Individuals, organizations, and other governments 20,548 Total net position $ 14,090,296
City of Pinole
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2023
See accompanying Notes to the Basic Financial Statements. 45

Total
Fiduciary
Funds
ADDITIONS:

Property taxes $ 4,753,505
Investment income 49,065
Total additions 4,802,570
DEDUCTIONS:

Operating costs 324,147
Depreciation 255,670
Interest expense 89,981
Total deductions 669,798
Change in net position 4,132,772
NET POSITION:

Beginning of year 9,957,524
End of period $ 14,090,296
City of Pinole
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2023
See accompanying Notes to the Basic Financial Statements. 46

47 NOTES TO THE BASIC FINANCIAL STATEMENTS

48 This page intentionally left blank.

City of Pinole
Index to the Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
49 Page
Note 1 – Summary of Significant Accounting Policies ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 51 A. The Reporting Entity ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 51 B. Basis of Presentation ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 52 C. Property Taxes ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 54 D. Cash and Investments ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 55 E. Cash and Investments with Fiscal Agents ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 55 F. Fair Value Measurement ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 55 G. Accounts and Interest Receivable ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 55 H. Prepaid Items and Inventory ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 56 I. Leases Receivable ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 56 J. Capital Assets ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 57 K. Subscription-Based Information Technology Arrangements (SBITAs) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 57 L. Lease Liabilities ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 58 M. Long Term Liabilities ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 59 N. Pension ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 59 O. Other Postemployment Benefits (OPEB) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 59 P. Deferred Outflows/Inflows of Resources ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 60 Q. Interfund Transactions ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 60 R. Net Position and Fund Balances ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 61 S. Spending Policy ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 62 T. Grant Funding ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 62 U. Deferred Compensation ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 62 V. Use of Estimates ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 62 W. Implementation of Governmental Accounting Standards Board (GASB) Pronouncements ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 63 X. New GASB Pronouncement ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 63 Note 2 – Cash and Investments ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 64 A. Summary of Cash and Investments ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 64 B. Deposits ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 64 C. Investments Authorized by the California Government Code and the City's Investment Policy ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 65 D. Investments Authorized by Debt Agreements ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 66 E. Investment Valuation ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 66 F. Disclosure Relating to Interest Rate Risk ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 67 G. Disclosures Relating to Credit Risk ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 67 H. Investment in State and County Investment Pools ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 68 Note 3 – Notes Receivable ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 68 Note 4 – Lease Receivablesꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 70 Note 5 – Land Held For Resaleꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 70 Note 6 – Capital Assetsꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 71 A. Governmental Activities ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 71 B. Business- Type Activities ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 72

City of Pinole
Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023
50 Page
Note 7 – Long-Term Liabilities ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 73 A. Governmental ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 73 B. Business-Type Activities ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 74 Note 8 – Interfund Transactionsꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 76 A. Interfund Transfers to/from Other Funds ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 76 B. Due to/from Other Funds ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 76 Note 9 – Defined Benefit Pension Planꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 76 A. General Information about the Pension Plans ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 76 B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 78 Note 10 – Other Post-Employment Benefits (OPEB)ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 82 A. Summaryꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 82 B. Description of the Plan ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 82 C. Employees Covered ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 82 D. Contributions ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 82 E. Total OPEB Liability ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 83 F. Discount Rate ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 83 G. Changes in the Total OPEB Liability ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 84 H. Recognition of Deferred Outflows and Deferred Inflows of Resources ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 84 I. OPEB Expenses and Deferred Outflows/Inflows of Resources Related to OPEB ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 85 Note 11 – Fund Balanceꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 85 Note 12 – Risk Managementꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 87 Note 13 – Deficit Fund Balances ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 87 Note 14 – Successor Agency Private Purpose Trust for Assets of Former Redevelopment Agency ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 88 A. Capital Assets ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 88 B. Long-term Liabilities ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 88 Note 15 – Contingencies and Commitmentsꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 89 Note 16 – Net Investment in Capital Assets ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 89 Note 17 – Joint Powers Agreementsꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 90 A. Pinole/Hercules Wastewater Treatment Plant ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 90 Note 18 – Prior Period Adjustments ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 90

City of Pinole
Notes to the Basic Financial Statements
For the Year Ended June 30, 2023
51 Note 1 – Summary of Significant Accounting Policies
The City of Pinole, California (the “City”) 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), parks, streets and highways, sanitation, culture-recreation, public improvements, planning and zoning, and general administration services.

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, 2023, the City's staff comprised 93 full-time and 24 part-time employees who are responsible for the following City-provided services:

Public Safety - The City employs 19 sworn and 22 non-sworn police personnel to provide round-the-clock police services from a central station.

Sanitation - 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 13 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 54 employees.

The financial statements and accounting policies of the City conform with accounting principles generally accepted in the United States of America ("U.S. GAAP") 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 blended.

Pinole Joint Powers Financing Authority
The Pinole Joint Powers Financing Authority (the “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.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
52 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Presentation
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. City resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

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

Government-wide Financial Statements:

The Government-Wide Financial Statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, 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. On an accrual basis, revenue from sales taxes is recognized in the period in which the taxable sale takes place. Revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the year when use is first permitted, matching requirements, in which the City must provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are provided to the City on a reimbursement basis. Fiduciary activities are not included in these statements.

Certain types of transactions are reported as program revenues for the City in three categories:
 Charges for services
 Operating grants and contributions
 Capital grants and contributions
Certain eliminations have been made in regards to interfund activities, payables and receivables. 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 service fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:
 Due from and to other funds
 Transfers in and out
Governmental Fund Financial Statements
A Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances are presented for all major governmental funds and aggregated nonmajor funds. Accompanying schedules are presented to reconcile and explain the differences in fund balances as presented in these statements, to the net position presented in the government-wide financial statements. The City has presented all major funds that met the applicable criteria.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
53 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Presentation (Continued)
All governmental funds are accounted for on a spending or “current financial resources” measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures and Change in Fund Balances presents increases (revenue and other financing sources) and decreases (expenditures and other financing uses) in net current assets.

Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both “measurable” and “available” to finance expenditures of the current period.

Revenues are recognized as soon as they are both “measurable” and “available”. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property tax, sales tax, intergovernmental revenues and other taxes. Expenditures are recorded in the accounting period in which the related fund liability is incurred.

The City reports the following major 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.
 Housing Program Special Revenue Fund – The housing program special revenue fund is used to account for the proceeds tax increment funds through Redevelopment Property Tax Trust Funds that are restricted or committed to expenditure for approved housing activities.  America Rescue Plan Act Special Revenue Fund – This fund is used to account for moneys allocated to the City from the federal government from the economic recovery bill that was signed into law by President Biden on March 11, 2021 to respond to the COVID-19 public health emergency and its negative economic impacts.

Proprietary Fund Financial Statements
Proprietary funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Net Position presents increases (revenues) and decreases (expenses) in total 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.

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 fund’s principal ongoing operations. The principal operating revenues of the Sewer fund are charges to customers for services. Operating expenses for the proprietary funds include the costs of services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

The City reports one major proprietary fund:
 Wastewater Utility Fund -The Wastewater Utility 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.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
54 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Presentation (Continued)
Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Net Position and a Statement of Changes in Fiduciary Net Position. The City’s fiduciary funds represent custodial funds and private purpose trust funds. Both custodial funds and the private purpose trust funds are accounted for on the full accrual basis of accounting where the assets associated with the activity are controlled by the City and the assets are not derived 1) solely from the government’s own-source revenues or 2) from government-mandated nonexchange transactions or voluntary nonexchange transactions.

The City reports the following two types of 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. This fund is used to account for funds collected from asset seizure and private donations received for the community assistance program.  Private-Purpose Trust Fund - Private purpose trust fund is used to report all other trust arrangements under which principal and income benefit individuals, private organizations, or other governments. 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.

C. 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.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
55 Note 1 – Summary of Significant Accounting Policies (Continued) D. 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. The Local Agency Investment Fund ("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.

E. Cash and Investments with Fiscal Agents
Cash and investments with fiscal agents are restricted for the redemption of bonded debt, for acquisition and construction of capital projects, and pension contributions.

F. Fair Value Measurement
U.S. GAAP defines fair value, establishes a framework for measuring fair value and establishes disclosure about fair value measurement. Investments, unless otherwise specified at fair value in the financial statements, are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Levels of inputs are as follows:

 Level 1 –Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.
 Level 2 –Inputs, other than quoted prices included in Level 1, that are observable for the assets or liabilities through corroboration with market data at the measurement date.  Level 3 –Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the assets or liabilities at the measurement date.

G. 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.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
56 Note 1 – Summary of Significant Accounting Policies (Continued) G. Accounts and Interest Receivable (Continued)
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.

H. Prepaid Items 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.

I. Leases Receivable
The City is a lessor for leases of buildings and recognizes lease receivables and deferred inflows of resources in the financial statements. Variable payments based on future performance or usage of the underlying asset are not included in the measurement of the lease receivable.

At the commencement of a lease, the lease receivable is measured at the present value of payments expected to be received during the lease term. The City established a threshold of $5,000 for lease receivables. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflows of resources are initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflows of resources are recognized as revenue over the life of the lease term in a systematic and rational method.

Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.  The City uses incremental borrowing rate (IBR) provided by the financial institution at July 1, 2021 for existing leases or the current rate at the time a new lease is executed.  The lease term includes the noncancelable period of the lease plus any option periods that are likely to be exercised.
 Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
57 Note 1 – Summary of Significant Accounting Policies (Continued) I. Leases Receivables (Continued)
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.

J. Capital Assets
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.

The City defines infrastructure assets as the basic physical assets that allow the City to function. The assets include the street system, wastewater system, park and recreation lands and improvement system, and buildings combined with the site amenities such as parking and landscaped areas used by the City in the conduct of its business.

Major outlays for capital assets and improvements are capitalized as projects are constructed. Capital assets acquired under finance purchase are capitalized at the net present value of the total finance payments.

Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method.

The lives used for depreciation purposes are as follows:

Asset Type Years
Infrastructure 50-75
Buildings and improvement 50-100
Machinery, equipment, and vehicles 5-10
K. Subscription-Based Information Technology Arrangements (SBITAs) The City has a policy to recognize a subscription liability and a right‐to‐use subscription asset (subscription asset) in the financial statements. The City recognizes subscription liabilities with an initial, individual value of $5,000 or more with a subscription term greater than one year. Variable payments based on future performance of the City, usage of the underlying IT asset, or number of user seats are not included in the measurement of the subscription liability, rather, those variable payments are recognized as outflows of resources (expenses) in the period the obligation for those payments is incurred.

At the commencement of a SBITA, the City initially measures the subscription liability at the present value of payments expected to be made during the subscription term. Subsequently, the subscription liability is reduced by the principal portion of subscription payments made.

Subscription assets are recorded at the amount of the initial measurement of the subscription liabilities, less any payments made to the SBITA vendor before the commencement of the subscription term, and capitalizable initial implementation cost, less any incentives received from the SBITA vendor at or before the commencement of the subscription term.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
58 Note 1 – Summary of Significant Accounting Policies (Continued) K. Subscription-Based Information Technology Arrangements (SBITAs) (Continued)  Preliminary Project Stage: Outlays are expensed as incurred.  Initial Implementation Stage: Outlays are capitalized as an addition to the subscription asset.

Upon adoption, the City elected to exclude the capitalizable outlays associated with the initial implementation stage and the operation and additional implementation stage that were incurred prior to the implementation of this Statement in the measurement of subscription assets as of July 1, 2022.

Subscription assets are reported within capital assets and subscription liabilities are reported with long-term liabilities on the statement of net position. Subscription assets are amortized using the straight-line method over the shorter of the subscription term or the useful life of the underlying IT asset, unless the subscription contains a purchase option that the City has determined is reasonably certain of being exercised. In this case, the subscription asset is amortized over the useful life of the underlying IT asset.

Key estimates and judgments related to SBITA include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments.
 The City uses the interest rate charged by the SBITA vendor as the discount rate. When the interest rate charged by the SBITA vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for SBITA.
 The subscription term includes the noncancellable period of the SBITA. Subscription payments included in the measurement of the subscription liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

L. Lease Liabilities
The City recognizes lease liabilities with an initial, individual value of $5,000 or more with a lease term greater than one year in the government-wide and proprietary fund financial statements. Variable payments based on future performance of the City or usage of the underlying asset are not included in the measurement of the lease liability. Lease assets are reported within capital assets and lease liabilities are reported with long-term liabilities on the statement of net position.

At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made.

Key estimates and judgments related to leases liabilities include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.  The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.
 The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure any lease asset or liability if certain changes occur that are expected to significantly affect the amount of the lease liability.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
59 Note 1 – Summary of Significant Accounting Policies (Continued) M. Long Term Liabilities
In the Government-Wide Financial Statements and Proprietary Fund Financial Statements, long-term debt and other long-term obligations are reported as liabilities in the appropriate activities. Bonds payable are reported net of the applicable bond premium or discount. Debt issuance costs except for any portion related to prepaid insurance were recognized as expense in the period incurred. Premium or discount not considered as part of the reacquisition price was amortized over the life of the bond.

The governmental fund financial statements do not present long-term liabilities. Consequently, long-term debt is shown as a reconciling item in the Reconciliation of the Governmental Funds Balance Sheet to the GovernmentWide Statement of Net Position.

N. 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.

The following timeframes are used for pension reporting:

CalPERS
Valuation date June 30, 2021
Measurement date June 30, 2022
Measurement period July 1, 2021 to June 30, 2022
O. Other Postemployment Benefits (OPEB)
For the purpose of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s OPEB Plan and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, the OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value, except for money market investments, which are reported at amortized cost.

General Fund is typically used to liquidate OPEB liabilities for governmental funds.

The following timeframes are reported OPEB reporting:

OPEB
Valuation date June 30, 2021
Measurement date June 30, 2022
Measurement period July 1, 2021 to June 30, 2022

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
60 Note 1 – Summary of Significant Accounting Policies (Continued) O. Other Postemployment Benefits (OPEB)(Continued)
Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. The first amortized amounts are 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 amortization period differs depending on the sources of gain or loss. The difference between projected and actual earnings is amortized on a straight-line basis over 5 years. All other amounts are amortized on a straight-line basis over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) at the beginning of the measurement period.

P. Deferred Outflows/Inflows of Resources
The statement of net position and balance sheet – governmental funds reports separate sections for deferred outflows of resources and deferred inflows of resources, when applicable.

Deferred Outflows of Resources represent outflows of resources (consumption of net position) that applies to future periods and that, therefore, will not be recognized as an expense until that time.

Deferred Inflows of Resources represent inflows of resources (acquisition of net position) that applies to future periods and that, therefore, are not recognized as revenue until that time.

Q. 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.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
61 Note 1 – Summary of Significant Accounting Policies (Continued) R. Net Position and Fund Balances
In the Government-Wide Financial Statements and proprietary fund financial statements, net position is classified as follows:

Net Investment in Capital Assets – This component of net position consists of capital assets, net of accumulated depreciation and amortization, reduced by the outstanding balances of retention payable and debt that are attributable to the acquisition, construction, or improvement of those assets, and related deferred outflows and inflows of resources, net of unspent debt proceeds.

Restricted – This component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets.

Unrestricted – This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position.

In the Governmental Fund Financial Statements, fund balances are classified as follows:

Nonspendable – Nonspendable fund balances are items that cannot be spent because they are not in spendable form, such as prepaid items and inventories, or items that are legally or contractually required to be maintained intact, such as principal of an endowment or revolving loan funds.

Restricted – Restricted fund balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes externally imposed restrictions by creditors, such as through debt covenants, grantors, contributors, laws or regulations of other governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation.

Committed – Committed fund balances encompass the portion of net fund resources, the use of which is constrained by limitations that the government imposes upon itself at its highest level of decision making, normally the governing body, and that remain binding unless removed in the same manner. The City Council is considered the highest authority for the City. Adoption of a resolution by the City Council is required to commit resources or to rescind the commitment.

Assigned – Assigned fund balances encompass the portion of net fund resources reflecting the government’s intended use of resources. Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. The City Council has authorized by resolution the City Manager or the City Fiscal Officer for that purpose.

Unassigned – This amount is for any portion of the fund balances that do not fall into one of the above categories. The General Fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount.

However, in governmental funds other than General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
62 Note 1 – Summary of Significant Accounting Policies (Continued) S. Spending Policy
Government-Wide Financial Statements and the Proprietary Fund Financial Statements When expenses are incurred for purposes for which both restricted and unrestricted components of net position are available, the City’s policy is to apply the restricted component of net position first, then the unrestricted component of net position as needed.

Governmental Fund Financial Statements
When expenditures are incurred for purposes for which all restricted, committed, assigned and unassigned fund balances are available, the City’s policy is to apply in the following order, except for instances wherein an ordinance specifies the fund balance:
 Restricted
 Committed
 Assigned
 Unassigned
T. 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.

U. 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.

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

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
63 Note 1 – Summary of Significant Accounting Policies (Continued) W. Implementation of Governmental Accounting Standards Board (GASB) Pronouncements GASB Statement No. 91 In May 2019, GASB issued Statement No. 91, Conduit Debt Obligations (GASB Statement No. 91), to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. Implementation of this Statement did not have a significant effect on the City’s financial statements for the fiscal year ended June 30, 2023.

GASB Statement No. 94 In March 2020, GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements (GASB Statement No. 94) to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). This Statement also provides guidance for accounting and financial reporting for availability payment arrangements (APAs).

Implementation of this Statement did not have a significant effect on the City’s financial statements for the fiscal year ended June 30, 2023.

GASB Statement No. 96 In May 2020, GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements (GASB Statement No. 96), to provide guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset- -an intangible asset and a corresponding subscription liability: (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. Implementation of this Statement had a moderate effect on the City’s financial statements for the fiscal year ended June 30, 2023.

GASB Statement No. 99 - In April 2022, the GASB issued Statement No. 99, Omnibus 2022. The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The Statement is effective immediately for the requirements related to extension of the use of LIBOR, accounting for SNAP distributions, disclosures of nonmonetary transactions, pledges of future revenues by pledging governments, clarification of certain provisions in Statement 34, as amended, and terminology updates related to Statement 53 and Statement 63. The Statement is effective for fiscal year years beginning after June 15, 2022 for requirements related to leases, PPPs, and SBITAS. Implementation of this Statement did not have a significant effect on the City’s financial statements for the fiscal year ended June 30, 2023.

X. New GASB Pronouncements
The Agency is currently evaluating its accounting practices to determine the potential impact on the financial statements for the following GASB Statements:

In June 2022, GASB issued Statement No. 100, Accounting Changes and Error Corrections – an Amendment of GASB Statement No. 62. The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. Application of this statement is effective for the City’s fiscal year ending June 30, 2024.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
64 Note 1 – Summary of Significant Accounting Policies (Continued) X. New GASB Pronouncements(Continued)
In June 2022, GASB issued Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. Application of this statement is effective for the City’s fiscal year ending June 30, 2025.

Note 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.

A. Summary of Cash and Investments
Cash and investments as of June 30, 2023 were classified in the accompanying financial statements as follows:

Fiduciary Funds
Governmental Business-Type Statement of
Activities Activities Total Net Position Total
Cash and investments $ 33,580,842 $ 18,392,261 $ 51,973,103 $ 5,755,586 $ 57,728,689 Cash and investments with fiscal agents 16,787,831 16,787,831 - 16,787,831 - Total cash and investments $ 50,368,673 $ 18,392,261 $ 68,760,934 $ 5,755,586 $ 74,516,520 Government-Wide Statement of Net Position
Cash and investments for the City at June 30, 2023, consisted of the following:

Cash:

Cash on hand $ 1,920
Deposits with financial institution 2,587,492
Total cash 2,589,412
Investments:

Local Agency Investment funds 33,597,160
CalTrust 3,277,010
Money Market Fund 14,259,253
Corporate Notes 921,490
Federal Agency Securities 457,675
Negotiable Certificates of Deposit 2,626,689
Restricted cash and investment with PARS 16,787,831
Total investments 71,927,108
Total cash and investments $ 74,516,520
B. Deposits
The carrying amount of the City’s cash deposit was $2,587,492 at June 30, 2023. Balance before reconciling amounts was the amount of $3,107,439 at June 30, 2023. 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.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
65 Note 2 – Cash and Investments (Continued)
B. Deposits (Continued)
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.

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.

Maximum Maximum
Maximum Percentage Investment in
Authorized Investment Types Maturity of Portfolio 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% None
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 ** Limit set by LAIF governing Board not California Government Code * Based on state law requirements or City investment policy requirements, whichever is more restrictive.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
66 Note 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.

Maximum Maximum
Maximum Percentage Investment in
Authorized Investment Types Maturity of Portfolio 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
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, 2023:

Investments measured by fair value level: Total Level 2 Federal Agency Securities $ 457,675 $ 457,675
Corporate Notes 921,490 921,490
Negotiable Certificates of Deposits 2,626,689 2,626,689 Total investments by fair value level 4,005,854 $ 4,005,854 Investments not subject to the fair value hierarchy:

Local Agency Investment Fund 33,597,160
CalTrust 3,277,010
Restricted cash and investment with PARS 16,787,831
Money market mutual funds 14,259,253
Total investments not subject to the fair value hierarchy 67,921,254 Total investments $ 71,927,108
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.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
67 Note 2 – Cash and Investments (Continued)
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.

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, 2023:
12 Months 13 to 24 More than 24
Investment Type or less Months Months Total
Held by City:

Money Market 14,259,253 $ - $ $ 14,259,253 - $
Local Agency Investment Fund 33,597,160 - 33,597,160 -
Caltrust 3,277,010 - 3,277,010 -
Securities of U.S. Government:

Federal agency securities 457,675 - 457,675 -
Corporate notes - 921,490 - 921,490
Negotiable certificates of deposits 739,726 1,641,689 245,274 2,626,689 Held by Trustees:

Restricted cash & investments with PARS 16,787,831 - 16,787,831 - Total investments $ 68,660,980 $ 2,099,364 $ 1,166,764 $ 71,927,108 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.

Investment Type Total
Moody's
Rating as of
June 30, 2023
Held by City:

Securities of U.S. Government:

Federal agency securities 457,675 $ Aaa
Corporate notes 921,490 Aaa
Total Rated Investments 1,379,165
Not rated:

Local Agency Investment Fund 33,597,160
CalTrust 3,277,010
Money market fund 14,259,253
Negotiable certificates of deposits 2,626,689
Restricted Cash-PARS 16,787,831
Total investments $ 71,927,108

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
68 Note 2 – Cash and Investments (Continued)
G. Disclosures Relating to Credit Risk (Continued)
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, 2023.

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.

H. Investment in State and County Investment Pools
The City is a participant in LAIF which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City’s investments in LAIF at June 30, 2023 included a portion of pool funds invested in Structure Notes and Asset-Backed Securities:

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 that have embedded forwards or options.

Asset-Backed Securities, the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from 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, 2023, the City had $33,597,160 invested in LAIF, which had invested 2.78% of the pool investment funds in Structured Notes and Asset-Back Securities. LAIF determines fair value on its investment portfolio based on market quotations for those securities where market quotations are readily available and based on amortized cost or best estimate for those securities where market value is not readily available. LAIF is reported at amortized cost, which approximates fair value.

Note 3 – Notes Receivable
Notes receivables of the City as of June 30, 2023, were:

Housing Rehabilitation $ 29,929
First time Home-Buyer 236,706
Bridge Housing Loan 1,066,904
Alvarez Court 1,852,018
Eastbluff Apartment Loan 1,145,716
811 San Pablo Ave 4,380,000
Subtotal 8,711,273
Less:Allowance for uncollectible loans (4,331,273)
Total $ 4,380,000

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
69 Note 3 – Notes Receivable (Continued)
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 $29,929 at June 30, 2023.

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, 2023 was $236,706.

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, 2023, the outstanding balance was $1,066,904 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, 2023, the total outstanding balance was $1,852,018 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, 2023, the outstanding balance was $1,145,716.

Disposition and Development Agreement. In 2021, the City entered into an agreement with Satellite Affordable Housing Associates (Developer) to develop, construct and operate the Thirty-Three unit affordable rental apartment project and provided the purchase loan and construction loan to Developer in amount of $3,180,000 with a veering a simple interest rate of 3%. In March, 2023, both parties entered into an amendment of the agreement to increase the loan to $4,380,000 and lower the interest rate from 3% to 0%. As of June 30, 2023, the outstanding balance was $4,380,000.

Allowance for doubtful accounts
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, 2023.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
70 Note 4 – Lease Receivables
The City leases various types of property including land and buildings. Leases receivable consist of agreements with other entities for the “right–to–use” the underlying assets at various locations owned by the City. The remaining terms of the agreements range from 2 to 5 years. The interest rates used calculated the net present value of the lease receivable ranged from 1.39% to 2%.

For the fiscal year ended June 30, 2023, the City recognized $91,444 and $9,574 in lease revenue and interest income, respectively, and the outstanding net present value of the lease receivable amount is $644,060.

A summary of changes in lease receivable for the governmental activities for the year ended June 30, 2023 is as follows:

Balance Balance Due within Due in More
July 1, 2022 Additions Deletions June 30, 2023 One Year Than One Year Leases receivable $ 722,638 $ (78,578) - $ $ 644,060 $ 91,064 $ 552,996 Classification
The future payments on the leases as of June 30, 2023 were as follows:

Year Ending
June 30, Principal Interest Total
2024 91,064 $ 8,548 $ 99,612 $
2025 80,793 7,173 87,966
2026 87,818 6,012 93,830
2027 90,234 4,770 95,004
2028 91,496 3,507 95,003
2029-2032 202,655 3,185 205,840
Total $ 33,195 644,060 $ 677,255 $
The amortization of deferred inflow-lease related future revenue were as follow:

Year Ending Amortization
June 30, Schedule
2024 91,444 $
2025 86,045
2026 86,045
2027 86,045
2028 86,045
2029-2032 186,433
Total $ 622,057
Note 5 – Land Held For Resale
At June 30, 2023, the City held the properties at 2100/2150 San Pablo Ave for resale or redevelopment with a total value of $355,062.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
71 Note 6 – Capital Assets
A. Governmental Activities
The following is a summary of changes in capital assets for the governmental activities for the year ended June 30 2023:

Balance
July 1, 2022, Balance
as restated Additions Deletions June 30, 2023
Capital assets, not being depreciated
Land 6,313,621 $ - $ $ 6,313,621 - $
Construction in progress 1,179,360 470,320 1,649,680 -
Total capital assets, not being depreciated 7,492,981 470,320 7,963,301 - Capital assets, being depreciated
Building and improvements 16,048,771 - (8,370) 16,040,401 Machinery, equipment and vehicles 10,740,048 343,098 (2,357,468) 8,725,678 Infrastructure 61,027,212 51,687 61,078,899 -
Total capital assets, being depreciated 87,816,031 394,785 (2,365,838) 85,844,978 Accumulated depreciation:

Building and improvements (11,374,494) (254,809) 4,190 (11,625,113) Machinery, equipment and vehicles (8,029,967) (645,672) 1,644,879 (7,030,760) Infrastructure (44,207,866) (736,490) (44,944,356) -
Total accumulated depreciation (63,612,327) (1,636,971) 1,649,069 (63,600,229) Total capital assets, being depreciated, net 24,203,704 (1,242,186) (716,769) 22,244,749 Right to use lease assets, being amortized
Machinery, equipment and vehicles 95,874 8,057 - 103,931 Total right to use lease assets, being amortized 95,874 8,057 - 103,931 Accumulated amortization:

Machinery, equipment and vehicles (23,968) (24,372) - (48,340) Total accumulated amortization (23,968) (24,372) - (48,340) Total right to use assets, being amortized, net 71,906 (16,315) - 55,591 Subscrpiton assets, being amortized 508,465 157,640 - 666,105 Less accumulated amortization (357,163) (115,682) (472,845) - Total subscription assets, net 151,302 41,958 - 193,260 Total capital assets, net $ 31,919,893 $ (746,223) $ (716,769) $ 30,456,901 Depreciation/amortization expense for capital assets was charged to functions as follows:

General government $ 184,066
Public safety 430,926
Public works 1,069,592
Recreation 85,649
Community development 6,792
Total depreciation/amortization expense $ 1,777,025

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
72 Note 6 – Capital Assets (Continued)
B. Business-Type Activities
The following is a summary of changes in capital assets for the business-type activities for the year ended June 30, 2023:

July 1, 2022, Balance
as restated Additions Deletions Transfers June 30, 2023 Capital assets, not being depreciated
Construction in progress $ 124,930 - $ $ - $ 124,930 - $ Total capital assets, not being depreciated 124,930 - - 124,930 - Capital assets, being depreciated
Building and improvements 42,322,987 59,880 (1,525,795) 40,857,072 - Equipment 2,316,830 (1,089,544) 2,645 1,229,931 -
Vehicles 742,493 177,869 - 920,362 -
Infrastructure 7,474,337 - - 7,474,337 -
Total capital assets, being depreciated 52,856,647 240,394 (2,615,339) 50,481,702 - Accumulated depreciation:

Building and improvements (5,227,088) (785,265) 1,429,275 (4,583,078) - Equipment (1,313,598) (17,945) 1,092,998 (238,545) -
Vehicles (366,523) (100,845) - (467,368) -
Infrastructure (8,111,980) (80,856) - (8,192,836) -
Total accumulated depreciation (15,019,189) (984,911) 2,522,273 (13,481,827) - Total capital assets, being depreciated, net 37,837,458 (744,517) (93,066) 36,999,875 - Total capital assets, net $ 37,837,458 $ (619,587) $ (93,066) $ 37,124,805 - $ Depreciation expense for capital assets was charged to functions as follows:

Wastewater Fund 984,911
Total depreciation expense $ 984,911

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
73 Note 7 – Long-Term Liabilities
A. Governmental Activities
The following is a summary of changes in the City's long-term liabilities related to governmental activities for the fiscal year ended June 30, 2023:

Balance
July 1, 2022, Balance Due within Due in More
as restated Additions Retirements June 30, 2023 One Year Than One Year Long-term liabilities
2006 Pension Obligation Bonds 2,512,885 $ $ (215,586) - $ $ 2,297,299 $ 207,790 $ 2,089,509 Leases payable: 72,619 8,057 (24,067) 56,609 25,633 30,976 Subscription payable: 118,626 157,640 (99,696) 176,570 103,386 73,184 Total long-term debts 2,704,130 165,697 (339,349) 2,530,478 336,809 2,193,669 Compensated absences 943,925 701,652 (825,610) 819,967 174,488 645,479 Total long-term liabilities $ 867,349 3,648,055 $ (1,164,959) $ 3,350,445 $ 511,297 $ 2,839,148 $ Classification
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 Nonvoter-approved debt. Principal payments are due annually in June until 2036. As of June 30, 2023, the principal balance of outstanding bonds was $2,297,299.

The annual debt service requirements (principal and interest) to maturity for the 2006 Pension Obligation Bonds are as follows:

Year Ending
June 30, Principal Interest Total
2024 207,790 $ 402,210 $ 610,000 $
2025 203,321 431,679 635,000
2026 195,585 454,415 650,000
2027 191,228 483,773 675,001
2028 186,704 513,296 700,000
2029-2033 854,456 2,985,544 3,840,000
2034-2036 458,215 2,161,784 2,619,999
Total $ 2,297,299 $ 7,432,701 $ 9,730,000
Lease payable
The City has entered leases for the right of way leases. The terms of the agreements are 60 months. The calculated interest rate used range from 2% to 6.63%/ As of June 30, 2023, the outstanding balance of the leases is $56,609.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
74 Note 7 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
Lease payable (Continued)
Principal and interest payments to maturity at June 30, 2023 are as follows:

Year Ending
June 30, Principal Interest Total
2024 25,633 $ 1,233 $ 26,866 $
2025 26,219 648 26,867
2026 1,631 275 1,906
2027 1,742 165 1,907
2028 1,384 46 1,430
Total $ 2,367 56,609 $ 58,976 $
Subscription payable
The City entered into subscription agreements with various vendors for software. The terms of the agreements are ranging from 32 months to 84 months. The calculated interest rates range from 6.47% to 6.63%. As of June 30, 2023, the capitalized right-to-use assets related to SBITAs were $193,260 and the total subscription liability was $176,570, of which $103,386 is reported as a current liability representing the amount due within the next fiscal year.

The future subscription payments are as follows:

Year Ending
June 30, Principal Interest Total
2024 $ 103,386 $ 10,772 $ 114,158
2025 36,385 4,040 40,425
2026 17,809 2,440 20,249
2027 18,990 1,259 20,249
Total $ 176,570 $ 18,510 $ 195,080
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, 2023:

Balance Balance Due within Due in More
July 01, 2022 Additions Retirements June 30, 2023 One Year Than One Year Public borrowings:
2016 Wastewater Revenue Refunding Bond 6,321,000 $ $ (341,000) - $ $ 5,980,000 $ 347,000 $ 5,633,000 2016 Clean Water State Revolving Fund 24,105,949 (679,383) - 23,426,566 690,932 22,735,634 Total bonds payable 30,426,949 (1,020,383) - 29,406,566 1,037,932 28,368,634 Compensated absences 143,237 166,140 (131,106) 178,271 35,677 142,594 Total long-term liabilities $ 30,570,186 $ 166,140 $ (1,151,489) $ 29,584,837 $ 1,073,609 $ 28,511,228 Classification

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
75 Note 7 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
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. As of June 30, 2023, the principal balance of outstanding bonds was $5,980,000.

Future debt service payments are as follows:

Year Ending
June 30, Principal Interest Total
2024 347,000 $ 171,292 $ 518,292 $
2025 362,000 160,834 522,834
2026 372,000 150,008 522,008
2027 381,000 138,901 519,901
2028 395,000 127,455 522,455
2029-2033 2,150,000 453,504 2,603,504
2034-2037 1,973,000 118,634 2,091,634
Total $ 1,320,628 5,980,000 $ 7,300,628 $
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, 2023, the total debt outstanding on the loan is $23,426,566.

Future debt service payments are as follows:

Year Ending
June 30, Principal Interest Total
2024 690,932 $ 398,252 $ 1,089,184 $
2025 702,678 386,506 1,089,184
2026 714,624 374,560 1,089,184
2027 726,772 362,412 1,089,184
2028 739,127 350,057 1,089,184
2029-2033 3,888,442 1,557,478 5,445,920
2034-2038 4,230,389 1,215,530 5,445,919
2039-2043 4,602,408 843,512 5,445,920
2044-2048 5,007,142 438,778 5,445,920
2049-2050 2,124,052 54,316 2,178,368
Total $ 5,981,401 23,426,566 $ 29,407,967 $

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
76 Note 8 – Interfund Transactions
A. Interfund Transfers to/from Other Funds
Transfers between funds during the fiscal year ended June 30, 2023 were as follows:

Nonmajor
Governmental
Transfers In General Fund1 Funds2 Total
General Fund 2,896,444 $ 4,071,404 $ 6,967,848 $
Nonmajor Governmental Funds 1,918,824 - 1,918,824
Total 4,815,268 $ 4,071,404 $ 8,886,672 $
Transfers Out
1 General Fund support of certain capital projects, recreation operating contribution, and IT services. 2 Nonmajor Governmental Funds represents a transfer from the American Rescue Plan Act Fund to reimburse the General Fund.

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, 2023 consisted of the following:

Due From Due To Description Amount
General Fund Storm Water Fund Deficit cash balance $ 97,592 General Fund Building and Planning Fund Deficit cash balance 1,398,659 General Fund Public Works Capital Projects Funds Deficit cash balance 241,752 General Fund Cable TV Deficit cash balance 65,943
Total $ 1,803,946
Note 9 – Defined Benefit Pension Plan
A. General Information about the Pension Plans
Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (“Plan”) administered by the California Public Employees' Retirement System (“CalPERS”). The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other). Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the safety and miscellaneous 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.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
77 Note 9 – 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, 2023, are summarized as follows:

Hire Date Classic PEPRA
Benefit formula 2% @ 55 2% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments Monthly for life Monthly for life
Retirement age 55 62
Monthly benefits, as a % of eligible compensation 2.0% to 2.5% 2.0% Required employee contribution rates 8.000% 6.750%
Required employer contribution rates 12.210% 7.470%
Final Annual Compensation 1 year 3 year
Hire Date Classic PEPRA Police PEPRA Fire
Benefit formula 3% @ 55 2.7% @ 57 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 55 50 - 57 50 - 57
Monthly benefits, as a % of eligible compensation 3.000% 2.700% 2.000% to 2.700% Required employee contribution rates 9.00% 13.000% 13.000% Required employer contribution rates 21.840% 12.780% 12.780% Final Annual Compensation 1 year 3 years 3 years
Miscellaneous Cost- Sharing Plans
Safety Cost-Sharing Plans
Employees Covered
At June 30, 2022, the measurement date, the following employees were covered by the benefit terms for the Plan:

Miscellaneous Plans Safety Plans
Active employees 61 35
Transferred and terminated employees 89 42
Retired employees and beneficiaries 118 102
Total 268 179

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
78 Note 9 – Defined Benefit Pension Plan (Continued)
A. General Information about the Pension Plans (Continued) Contributions
Section 20814(c) of the California Public Employees' Retirement Law (“PERL”) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through the CalPERS' annual actuarial valuation process. The actuarially determined rate is based on the estimated amount necessary to pay the Plan's allocated share of the risk pool's costs of benefits earned by employees during the year, and any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions Actuarial Methods and Assumptions Used to Determine Total Pension Liability For the measurement period ended June 30, 2022, the total pension liability was determined by rolling forward the June 30, 2021 total pension liability. The June 30, 2022 total pension liabilities were based on the following actuarial methods and assumptions:

Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increases
Investment Rate of Return
Mortality Rate Table1
Post Retirement Benefit Increase
Entry Age Normal in accordance with the requirement of GASB Statement No. 68

6.90%

2.30%
Varies by Entry Age and Service
1 The mortality table used for June 30, 2022 was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website.

6.90%
Derived using CalPERS’ Membership Data for all Funds. .

The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter
Change of Assumption
In 2022, the discount rate was reduced from 7.15 percent to 6.90 percent.

Long-Term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
79 Note 9 – Defined Benefit Pension Plan (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Long-Term Expected Rate of Return (Continued)
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 basis points. The expected real rates of return by asset class are as follows:

Asset Class1 Asset Real Return 1,2
Global Equity - Cap-weighted 30.00% 4.54%
Global Equity - Non-cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
100.00% 1
An expected inflation of 2.30% used for this period.
2 Figures are based on the 2021-2022 Asset Liability Management study.

Discount Rate
The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the plans as of the measurement date, calculated using the discount rate of 6.90%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.90%) or 1 percentage-point higher (7.90%) than the current rate:

Discount Rate - 1% Current Discount Discount Rate + 1%
(5.90%) Rate (6.90%) (7.90%)
Miscellaneous Plan $ 25,857,513 $ 18,093,979 $ 11,706,518 Safety Plan 35,967,168 24,214,798 14,609,891
$ 61,824,681 $ 42,308,777 $ 26,316,409
Plan's Aggregate Net Pension Liability/(Asset)

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
80 Note 9 – Defined Benefit Pension Plan (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Pension Plan Fiduciary Net Position
Detailed information about the plan’s fiduciary net position is available in the separately issued CalPERS financial report.

Proportionate Share of Net Pension Liability and Pension Expense The following table shows the plan’s proportionate share of the risk pool collective net pension liability over the measurement period:

Plan Total Pension Plan Fiduciary Net Plan Net Pension
Miscellaneous Liability Position Liability/(Asset)
Balance at: 6/30/21 (Valuation date) 53,089,849 $ 42,169,171 $ 10,920,678 Balance at: 6/30/22 (Measurement date) 56,951,625 38,857,646 18,093,979 Net Changes during 2021-2022 3,861,776 (3,311,525) 7,173,301 Safety
Balance at: 6/30/21 (Valuation date) 78,104,216 $ 65,389,834 $ 12,714,382 Balance at: 6/30/22 (Measurement date) 85,101,396 60,886,598 24,214,798 Net Changes during 2021-2022 6,997,180 (4,503,236) 11,500,416 Increase (Decrease)
The City's net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2022, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. The City's proportion of the net pension liability was based on a projection of the City's long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. The City's proportionate share of the net pension liability for the Plan as of measurement date June 30, 2021 and 2022 was as follows:

Miscellaneous Safety
Proportion June 30, 2021 0.57513% 0.36229%
Proportion June 30, 2022 0.38669% 0.35239%
Change - Increase (Decrease) -0.18845% -0.00990%
For the year ended June 30, 2023, the City recognized pension (credit)/expense in the amounts of ($2,784,773) and $1,273,687 for the miscellaneous plan and safety plan, respectively, for a total of $(1,511,086).

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
81 Note 9 – Defined Benefit Pension Plan (Continued)
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Proportionate Share of Net Pension Liability and Pension Expense (Continued) As of June 30, 2022, the measurement date, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

Deferred Outflows Deferred Inflows Deferred Outflows Deferred Inflows of Resources of Resources of Resources of Resources
Pension contributions made subsequent
to measurement date 2,148,835 $ - $ 2,584,516 $ - $
Difference between expected and actual
experience 363,362 (243,364) 1,002,163 (262,954)
Changes in assumptions 1,854,106 - 2,441,585 -
Differences difference between projected
and actual investment earnings 3,314,337 - 3,823,855 -
Adjustment due to differences in proportion (2,104,947) 15,427 1,428,312 - Difference between the City's contributions
and proportionate share of contributions 14,355 (108,089) - (2,067,550) Total $ (2,456,400) 7,710,422 $ 11,280,431 $ (2,330,504) $ Miscellaneous Plan Safety Plan
$2,148,835 and $2,584,516 reported as deferred outflows of resources related to pensions for miscellaneous plan and safety plan, respectively, resulting from the City’s contributions subsequent to the measurement date will be recognized as a reduction of the collective net pension liability in the year ending June 30, 2024. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in the future pension expense as follows:

Year Ended June 30, Miscellaneous Plan Safety Plan
2024 511,429 $ 1,763,970 $
2025 388,804 1,448,877
2026 177,793 819,964
2027 2,027,161 2,332,600
2028 - -
Thereafter - -
$ 6,365,411 3,105,187 $
Deferred Outflows/(Inflows) of Resources

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
82 Note 10 – Other Post-Employment Benefits (OPEB)
A. Summary
Governmental Business-Type
Activities Activities Total
Deferred outflows of resources:

Employer contributions made
subsequent to the measurement date $ 1,228,970 $ 136,552 $ 1,365,522 Changes in assumptions 4,319,622 479,958 4,799,580
Total deferred outflows of resources $ 5,548,592 $ 616,510 $ 6,165,102 Total OPEB liability:

Total OPEB liability $ 32,657,422 $ 3,628,603 $ 36,286,025 Total OPEB liability $ 32,657,422 $ 3,628,603 $ 36,286,025 Deferred inflows of resources:

Difference between expected and actual experience $ 3,313,752 $ 368,195 $ 3,681,947 Changes in assumptions 7,250,088 805,564 8,055,652
Total deferred inflows of resources $ 10,563,840 $ 1,173,759 $ 11,737,599 OPEB Expense $ 1,115,546 $ 123,950 $ 1,239,495
B. 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.

C. Employees Covered
As of the June 30, 2022 measurement date (June 30, 2021 valuation date), the following current and former employees were covered by the benefit terms under the Plan:

Active employees 97
Transferred and terminated employees 13
Retired employees and beneficiaries 99
Total 209
D. 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.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
83 Note 10 – Other Post-Employment Benefits (OPEB) (Continued) D. Contributions (Continued)
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:

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
E. Total OPEB Liability
The City’s total OPEB liability was measured as of June 30, 2022, and 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.

Actuarial Assumptions:

Discount Rate
Inflation
Paryoll growth
Investment rate of return
Healthcare Trend Rate Based on 2021 Getzen model that reflects actual premium increases through 2023, followed by 5.50% non-Medicare / 5.30% Medicare in 2023, decreasing gradually to an ultimate rate of 4.04% in 2075

3.54%

2.30%

2.8% wage iflation plus seniority, merit, and promotion salary increases based on CalPERS Experience Study and Review of Actuarial Assumptions published in November 2021
N/A; OPEB plan is unfunded
F. Discount Rate
The discount rate used to measure the total OPEB liability was 3.54%. 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.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
84 Note 10 – Other Post-Employment Benefits (OPEB) (Continued) G. Changes in the Total OPEB Liability
Total OPEB
Liability
Balance at June 30, 2021 (Measurement Date) $ 44,238,462 Changes Recognized for the Measurement Period:

Service Cost 1,960,338
Interest on the total OPEB liability 984,103
Difference between expected and actual experience (343,035) Changes of assumptions (9,270,071)
Benefit payments (1,283,772)
Net Changes during July 1, 2021 to June 30, 2022 (7,952,437) Balance at June 30, 2022 (Measurement Date) 36,286,025 $ 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:

Discount Rate - 1% Current Discount Discount Rate + 1%
(2.54%) Rate (3.54%) (4.54%)
$ 42,667,450 $ 36,286,025 $ 31,285,812
Plan's Total OPEB Liability
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:

Healthcare Cost
-1% Trend Rates 1%
$ 30,605,874 $ 36,286,025 $ 43,626,183
Plan's Total OPEB Liability
H. 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: using 5 years, straight line of amortization for the net difference between projected and actual earnings on OPEB plan investment, and using expected average remaining service lifetime (EARSL) for all amounts. The City’s total OPEB liability is generally liquidated by the general fund and wastewater fund.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
85 Note 10 – Other Post-Employment Benefits (OPEB) (Continued) I. OPEB Expenses and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2023, the City recognized OPEB expense of $1,239,495. For the fiscal year ended June 30, 2023, the City reported deferred outflows of resources related to OPEB from the following sources:

Deferred outflows Deferred inflows
of Resources of Resources
Employer contributions made
subsequent to the measurement date 1,365,522 $ - $
Difference between expected and actual experience - (3,681,947) Changes of assumptions 4,799,580 (8,055,652)
Total 6,165,102 $ (11,737,599) $
The $1,365,522 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2022 measurement date will be recognized as a reduction of the total OPEB liability during the fiscal year ending June 30, 2024. Other amounts reported as deferred inflows of resources related to OPEB will be recognized as expense as follows:

Fiscal Year Deferred Outflows/
Ended June 30 (Inflows) of Resources
2024 (1,133,445) $
2025 (963,150)
2026 (916,966)
2027 (2,322,277)
2028 (1,602,181)
Thereafter -
$ (6,938,019)
Note 11 – Fund Balance
GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions provides more clearly defined fund balance categories to make the nature and extent of the constraints placed on a government’s fund balances more transparent.

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

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

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

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
86 Note 11 – 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.

Housing Non-major
General Programs Governmental
Fund Fund Funds Total
Nonspendable
Prepaid items 227,938 $ - $ 328,952 $ 556,890 $
Inventory 15,966 - - 15,966
Total nonspendable - 243,904 328,952 572,856
Restricted
Housing Redevelopment - 8,203,719 - 8,203,719
Real estate maintenance 148,246 - - 148,246
Public safety - - 1,381,784 1,381,784
Growth impact - - 3,340,034 3,340,034
Gas Tax - - 1,131,871 1,131,871
Parkland Dedication - - 406 406
Measure C - - 1,826,817 1,826,817
Refuse Management - - 97,901 97,901
Community development - - 11,776 11,776
Solid Waste - - 2,348,813 2,348,813
CASP Certification - - 42,944 42,944
Rate Stabilization - - 204,362 204,362
Pension Fund 14,627,313 - - 14,627,313
Total restricted 8,203,719 14,775,559 10,386,708 33,365,986 Committed
General reserve 9,025,297 - - 9,025,297
Equipment reserve 286,732 - - 286,732
Emergency reserve 100,000 - - 100,000
Total committed 9,412,029 - 9,412,029 -
Assigned
Capital projects - 3,280,685 - 3,280,685
Total assigned - 3,280,685 - 3,280,685
Unassigned (deficit) 12,123,654 (1,560,650) - 10,563,004 Total fund balances $ 36,555,146 $ 8,203,719 $ 12,435,695 $ 57,194,560

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
87 Note 12 – Risk Management
The City manages risk of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters by participating in the public entity risk pools described below and by retaining certain risks.

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

Risk Coverage - The City is a member of the Municipal Pooling Authority of Northern California (MPA). MPA provides coverage against the following types of loss risks under terms of joint-powers agreement with the City and several other cities and governmental agencies as follows:

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 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, 2023, the City contributed $1,679,800 for coverage.

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

Note 13 – Deficit Fund Balances
As of June 30, 2023, the following funds had a fund deficit:

Fund Fund Type Deficit
Recreation Fund Special Revenue Fund $ (21,035)
Building & Planning Fund Special Revenue Fund (1,526,215)

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
88 Note 14 – Successor Agency Private Purpose Trust for Assets of Former Redevelopment Agency The Pinole Redevelopment Agency (the "former RDA") was formed in 1972 to finance redevelopment projects in the Agency of Pinole pursuant to the State of California Health and Safety Code, Section 3300. On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 that provided for the dissolution of all redevelopment agencies in the State of California as of February 1, 2012, at which time the City of Pinole elected to take over as the Successor Agency (the "Agency").

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

A. Capital Assets
Capital asset activity for the fiscal year ended June 30, 2023 was as follows:

Balance Balance
July 1, 2022, Additions June 30, 2023
Capital assets, not being depreciated
Land $ 2,429,793 $ 2,429,793 - $
Total capital assets, not being depreciated 2,429,793 2,429,793 - Capital assets, being depreciated
Building and improvements 9,193,612 9,193,612 -
Infrastructure 3,617,484 3,617,484 -
Total capital assets, being depreciated 12,811,096 12,811,096 - Accumulated depreciation:

Building and improvements (3,519,864) (188,954) (3,708,818) Infrastructure (1,816,716) (66,716) (1,883,432)
Total accumulated depreciation (5,336,580) (255,670) (5,592,250) Total capital assets, being depreciated, net 7,474,516 (255,670) 7,218,846 Total capital assets, net $ 9,904,309 $ (255,670) $ 9,648,639 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, 2023:

Balance Debt Debt Balance Due within Due in More
July 1, 2022 Issued Retired June 30, 2023 One Year Than One Year Public borrowings:
2015 Series A Bonds - Successor Agency
Private Purpose Trust 7,790,000 $ - $ (4,220,000) $ 3,570,000 $ 3,570,000 $ - $ Total $ - 7,790,000 $ (4,220,000) $ 3,570,000 $ 3,570,000 $ - $ Classification

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
89 Note 14 – Successor Agency Private Purpose Trust for Assets of Former Redevelopment Agency (Continued) B. Long-term Liabilities (Continued)
2015 Series A Tax Allocation Bond
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. As of June 30, 2023, the principal balance of outstanding bonds was $3,570,000 which will be paid in the fiscal year 2024.

Note 15 – Contingencies and Commitments
The City is subject to litigation arising in the normal course of business. In the opinion of the City Attorney there is no pending litigation which is likely to have a material adverse effect on the financial position of the City.

Grant Awards - The City participates in certain Federal and State assisted grant programs. These programs are subject to program compliance audits by the grantors or their representatives. Any liability for reimbursement which may arise as the result of these audits is not believed to be material.

Note 16 – Net Investment in Capital Assets
Net Investment in Capital Assets at June 30, 2023 consisted of the following:

Governmental Business-Type
Activities Activities
Net investment in capital assets:

Capital assets, nondepreciable 7,963,301 $ 124,930 $
Capital assets, depreciable/amortizable, net 22,493,600 36,999,875 Long-term debt:

Retention payable (16,645) -
Leases payable (56,609) -
Subscription payable (176,570) -
2016 Wastewater Revenue Refunding Bond - (5,980,000)
2016 Clean Water State Revolving Fund - (23,426,566)
Total net investment in capital assets 30,207,077 $ 7,718,239 $

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2023
90 Note 17 – Joint Powers Agreements
The City is a member of the joint powers agencies described below. Each of these agencies is governed by a board, which controls their operation, including selection of management and approval of operating budgets, independent of influence by member municipalities beyond their representation on the board.

A. Pinole/Hercules Wastewater Treatment Plant
On January 23, 2001, the cities of Pinole and Hercules entered into a joint powers agreement for the operation and ownership of the Pinole/Hercules Wastewater Treatment Plant (Plant). The City of Hercules retains responsibility for the operation and maintenance of its wastewater collection system. The City of Hercules has an undivided fifty percent (50%) ownership interest in the Plant. The City of Pinole has the right and responsibility to manage and operate the Plant. Also, the City of Pinole maintains the records and accounts for all the transactions.

Note 18 – Prior Period Adjustments
Net position for governmental and business-type activities were restated as of July 1, 2022 as follows:

Governmental Business-type
Activities Activities Total
Net position, as previously reported, at July 1, 2022 13,815,771 $ 23,886,521 $ 37,702,292 $ Reclassification of related pension balances 39,689 (39,689) - To adjust the capital assets beginning balance - (5,453,169) (5,453,169) GASB 96 implementation 32,676 - 32,676
Net position at July 1, 2022, as restated $ 18,393,663 13,888,136 $ 32,281,799 $ The beginning fund balance at July 1, 2022 of the General Fund financial statement was restated as follows:

Fund balance, as previously reported, at July 1, 2022 $ 35,256,850 To adjust interest payable 30,145
Fund balance at July 1, 2022, as restated $ 35,286,995
The beginning net position at July 1, 2022 of the Wastewater Utility Enterprise Fund financial statement was restated as follows:

Net position, as previously reported, at July 1, 2022 $ 23,886,521 To adjust the capital assets beginning balance (5,453,169) To reallocate the pension related fund balance (39,689) Net position at July 1, 2022, as restated $ 18,393,663

REQUIRED SUPPLEMENTARY INFORMATION
91

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92

1 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.
2 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. 3 Budgeted amounts are as originally adopted, or as amended by the City Council. 4 Budgeted appropriations for the various governmental funds become effective each July 1. The City Council may amend the budget during the fiscal year. The legal level of budgetary control has been established at function level. Appropriations generally lapse at the end of the fiscal year to the extent they have not been expended.

The City followed these procedures in establishing the budgetary data reflected in the General-Purpose Financial Statements:

City of Pinole
Required Supplementary Information
Notes to the Budgetary Comparison Schedules
For the Year Ended June 30, 2023
Budget and Budgetary Accounting
93

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94

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Taxes and assessments 20,106,309 $ 20,106,309 $ 20,717,898 $ 611,589 $ Intergovernmental revenues 87,026 87,026 87,236 210
Investment earnings 1,290,017 1,290,017 1,214,267 (75,750) Rents and ground leases 126,712 126,712 95,432 (31,280) Charges for services 1,515,477 1,515,477 1,927,404 411,927 Fines, forfeitures and penalties 22,050 22,050 17,579 (4,471) Other revenues 23,774 23,774 26,103 2,329
Total revenues 23,171,365 23,171,365 24,085,919 914,554 EXPENDITURES:

Current:

General administration 3,856,832 3,990,265 4,296,051 (305,786) Public safety 15,872,135 15,899,484 16,763,627 (864,143) Public works 2,232,766 2,378,199 1,792,716 585,483
Recreation 454,022 454,022 355,146 98,876
Community development 527,464 572,897 398,604 174,293
Capital outlay 3,654,936 3,873,702 802,648 3,071,054
Debt Service:

Principal 215,586 215,586 338,125 (122,539)
Interest and fiscal charges 380,521 380,521 401,206 (20,685) Total expenditures 27,764,676 27,194,262 25,148,123 2,616,553 REVENUES OVER (UNDER) EXPENDITURES (4,593,311) (4,022,897) (1,062,204) 3,531,107 OTHER FINANCING SOURCES (USES):

Proceeds from sale of asset 1,000 1,000 12,080 11,080
Proceeds from issuance of debt - - 165,695 165,695
Transfers in 6,842,547 6,842,547 6,967,848 125,301
Transfers out (4,088,492) (4,671,362) (4,815,268) (143,906) Total other financing sources (uses) 2,172,185 2,755,055 2,330,355 158,170 Net change in fund balance $ (2,421,126) (1,267,842) $ 1,268,151 3,689,277 $ FUND BALANCE:

Beginning of year 35,286,995
End of year $ 36,555,146
City of Pinole
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual General Fund
For the Year Ended June 30, 2023
Budgeted Amounts
95

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment earnings 50,000 $ 50,000 $ 111,176 $ 61,176 $ Other revenues 867,883 867,883 23,172 (844,711)
Total revenues 917,883 917,883 134,348 (783,535)
EXPENDITURES:

Current:

Community development 327,475 3,588,685 609,106 2,979,579 Total expenditures 3,588,685 327,475 609,106 2,979,579
REVENUES OVER (UNDER) EXPENDITURES (2,670,802) 590,408 (474,758) 2,196,044 OTHER FINANCING SOURCES (USES):

Proceeds from sale of asset - - 932,344 932,344
Total other financing sources (uses) - - 932,344 932,344 Net change in fund balance $ (2,670,802) 590,408 $ 457,586 3,128,388 $ FUND BALANCE:

Beginning of year 7,746,133
End of year $ 8,203,719
City of Pinole
Budgetary Comparison Schedule
Housing Programs Special Revenue Fund
For the Year Ended June 30, 2023
Budgeted Amounts
96

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Intergovernmental revenues 2,302,505 $ 2,302,505 $ 4,071,404 $ 1,768,899 $ Total revenues 2,302,505 2,302,505 4,071,404 1,768,899
REVENUES OVER (UNDER) EXPENDITURES 2,302,505 2,302,505 4,071,404 1,768,899 OTHER FINANCING SOURCES (USES):

Transfers out (4,090,010) (4,090,010) (4,071,404) 18,606 Total other financing sources (uses) (4,090,010) (4,090,010) (4,071,404) 18,606 Net change in fund balance $ (1,787,505) (1,787,505) $ - 1,787,505 $ FUND BALANCE:

Beginning of year -
End of year $ -
City of Pinole
Budgetary Comparison Schedule
American Rescue Plan Act Fund
For the Year Ended June 30, 2023
Budgeted Amounts
97

Measurement period, year ended 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 Plan's proportion of the net pension liability 0.2655100% 0.2659200% 0.2713000% 0.2715300% 0.2770700% Plan's proportionate share of
the net pension liability 18,093,979 $ 10,920,678 $ 16,004,315 $ 15,121,848 $ 14,125,442 $ Plan's covered-employee payroll 5,786,490 $ 5,156,131 $ 4,783,129 $ 4,343,990 $ 4,157,778 $ Plan's proportionate share of
the net pension liability as a percentage
of covered-employee payroll 312.69% 211.80% 334.60% 348.11% 339.74% Plan's fiduciary net position 38,857,645 $ 42,169,171 $ 35,326,833 $ 33,710,618 $ 32,674,876 $ Plan's fiduciary net position as a percentage
of the total pension liability 68.23% 79.43% 68.82% 69.03% 69.82% 1 Information only presented from the implementation year Miscellaneous Plan
City of Pinole
Required Supplementary Information
Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios For the Year Ended June 30, 2023
Cost-Sharing Multiple Employer Miscellaneous Plan
98

Measurement period, year ended 6/30/2017 6/30/2016 6/30/2015 6/30/2014 1 Plan's proportion of the net pension liability 0.2846100% 0.2849400% 0.2990880% 0.1255000% Plan's proportionate share of
the net pension liability 14,317,779 $ 12,368,264 $ 10,147,708 $ 7,809,298 $ Plan's covered-employee payroll 3,865,597 $ 3,643,157 $ 3,755,854 $ 3,769,634 $ Plan's proportionate share of
the net pension liability as a percentage
of covered-employee payroll 370.39% 339.49% 270.18% 207.16% 32178808
Plan's fiduciary net position 31,266,917 $ 28,655,555 $ 30,646,409 $ 12,287,961 $ Plan's fiduciary net position as a percentage
of the total pension liability 68.59% 69.85% 75.12% 61.14% 1 Information only presented from the implementation year City of Pinole
Required Supplementary Information
Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios (Continued) Miscellaneous Plan
Cost-Sharing Multiple Employer Miscellaneous Plan
For the Year Ended June 30, 2023
99

Measurement period, year ended 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 Plan's proportion of the net pension liability 0.303110% 0.297990% 0.304450% 0.311100% 0.308530% Plan's proportionate share of
the net pension liability 24,214,798 $ 12,714,382 $ 20,693,050 $ 18,793,747 $ 17,290,615 $ Plan's covered-employee payroll 4,754,353 $ 4,359,543 $ 4,197,326 $ 4,144,060 $ 5,496,056 $ Plan's proportionate share of
the net pension liability as a percentage
of covered-employee payroll 509.32% 129.11% 241.00% 224.74% 213.58% Plan's fiduciary net position 60,886,598 $ 65,389,834 $ 54,757,252 $ 54,136,140 $ 50,751,672 $ Plan's fiduciary net position as a percentage
of the total pension liability 71.55% 83.72% 72.57% 74.23% 74.59% 1 Information only presented from the implementation year Safety Plan
City of Pinole
Required Supplementary Information
Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios (Continued) Cost-Sharing Multiple Employer Safety Plan
For the Year Ended June 30, 2023
100

Measurement period, year ended 6/30/2017 6/30/2016 6/30/2015 6/30/2014 1 Plan's proportion of the net pension liability 0.310790% 0.315420% 0.318363% 0.172860% Plan's proportionate share of
the net pension liability 17,051,864 $ 14,755,488 $ 11,004,090 $ 10,753,040 $ Plan's covered-employee payroll 3,655,556 $ 3,827,739 $ 3,931,175 $ 3,889,522 $ Plan's proportionate share of
the net pension liability as a percentage
of covered-employee payroll 219.99% 196.37% 161.75% 151.85% Plan's fiduciary net position 48,664,063 $ 45,052,163 $ 46,720,579 $ 45,904,832 $ Plan's fiduciary net position as a percentage
of the total pension liability 74.05% 75.33% 80.94% 81.02% 1 Information only presented from the implementation year Safety Plan
Cost-Sharing Multiple Employer Safety Plan
City of Pinole
Required Supplementary Information
Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2023
101

Fiscal Year: 2022-23 2021-22 2020-21 2019-20 2018-19
Contractually determined
contribution (actuarially determined) 2,148,835 $ 1,888,941 $ 1,689,822 $ 1,503,913 $ 1,302,704 $ Contributions in relation to the
actuarially determined contributions (2,148,835) (1,888,941) (1,689,822) (1,503,913) (1,302,704) Contribution deficiency (excess) $ - - $ - $ - $ - $
Covered payroll 7,092,800 $ 5,786,490 $ 5,156,131 $ 4,782,129 $ 4,343,990 $ Contributions as a percentage of
covered payroll 30.30% 32.64% 32.77% 31.45% 29.99%
Notes to Schedule
Methods and assumptions used to determine contribution rates:

Actuarial cost method
Amortization method/period
Asset valuation method
Inflation
Salary increases
Payroll growth 2.800%
Investment rate of return 6.9% net of pension plan investment and administrative expenses.

Retirement age
Mortality
Varies by entry age and service
Entry Age Normal
For details, see June 30, 2023 Funding Valuation Report

2.30%
The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 and 2019.

Preretirement and Post-retirement mortality rates include generational mortality improvement using The probabilities of retirement are based on the 2021 CalPERS Experience Study for the period from 2001 and 2019.

The actuarial methods and assumption used to set the actuarially determined contributions for Fiscal Year 2023were derived from the June 30, 2021 funding valuation report.

Actuarial Value of Assets. For details, see June 30, 2023 Funding Valuation Report.

City of Pinole
Required Supplementary Information
Schedule of Contributions - Pensions
For the Year Ended June 30, 2023
Miscellaneous Plan
Cost-Sharing Multiple Employer Miscellaneous Plan
102

Fiscal Year: 2017-18 2016-17 2015-16 2014-15
Contractually determined
contribution (actuarially determined) 1,058,603 $ 941,653 $ 853,299 $ 641,629 $ Contributions in relation to the
actuarially determined contributions (1,058,603) (941,653) (853,299) (641,629) Contribution deficiency (excess) $ - - $ - $ - $
Covered payroll 4,157,778 $ 3,865,597 $ 3,643,157 $ 3,755,854 $ Contributions as a percentage of
covered payroll 25.46% 24.36% 23.42% 17.08%
Miscellaneous Plan
City of Pinole
Required Supplementary Information
Schedule of Contributions - Pensions (Continued)
For the Year Ended June 30, 2023
Cost-Sharing Multiple Employer Miscellaneous Plan
103

Fiscal Year: 2022-23 2021-22 2020-21 2019-20 2018-19
Contractually determined
contribution (actuarially determined) 2,584,516 $ 2,386,694 $ 2,099,289 $ 1,863,419 $ 1,584,004 $ Contributions in relation to the
actuarially determined contributions (2,584,516) (2,386,694) (2,099,289) (1,863,419) (1,584,004) Contribution deficiency (excess) $ - - $ - $ - $ - $
Covered payroll 4,737,035 $ 4,754,358 $ 4,359,543 $ 4,197,326 $ 4,144,060 $ Contributions as a percentage of
covered payroll 54.56% 50.20% 48.15% 44.40% 38.22%
Notes to Schedule
Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age Normal
Amortization method/period
Asset valuation method
Inflation
Salary increases
Payroll growth 2.800%
Investment rate of return 6.9% net of pension plan investment and administrative expenses.

Retirement age
Mortality
The actuarial methods and assumption used to set the actuarially determined contributions for Fiscal Year 2023 were derived from the June 30, 2021 funding valuation report.

Actuarial Value of Assets. For details, see June 30, 2023 Funding Valuation Report.

City of Pinole
Required Supplementary Information
Schedule of Contributions - Pensions (Continued)
Cost-Sharing Multiple Employer Safety Plan
For the Year Ended June 30, 2023
The probabilities of retirement are based on the 2021 CalPERS Experience Study for the period from 2001 and 2019.

The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 and 2019.

Preretirement and Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries.

Varies by entry age and service
For details, see June 30, 2023 Funding Valuation Report

2.30%
Safety Plan
104

Fiscal Year: 2017-18 2016-17 2015-16 2014-15
Contractually determined
contribution (actuarially determined) 1,239,511 $ 1,125,572 $ 1,027,403 $ 826,196 $ Contributions in relation to the
actuarially determined contributions (1,239,511) (1,125,572) (1,027,403) (826,196) Contribution deficiency (excess) $ - - $ - $ - $
Covered payroll 3,496,056 $ 3,655,556 $ 3,827,739 $ 3,931,175 $ Contributions as a percentage of
covered payroll 35.45% 30.79% 26.84% 21.02%
For the Year Ended June 30, 2023
Safety Plan
City of Pinole
Required Supplementary Information
Schedule of Contributions - Pensions (Continued)
Cost-Sharing Multiple Employer Safety Plan
105

Measurement period, year ending: 6/30/2022 6/30/2021 6/30/2020 6/30/2019 Total OPEB liability
Service cost 1,960,338 $ 2,241,980 $ 1,615,428 $ 1,227,488 $ Interest 984,103 1,063,633 1,308,423 1,391,794
Changes of benefit terms - - - -
Differences between expected and actual experience (343,035) (4,050,407) - (2,333,030) Changes of assumptions (9,270,071) (270,144) 8,431,861 1,956,937 Benefit payments, including
refunds of member contributions (1,283,772) (1,258,835) (1,223,092) (1,199,486) Change in total OPEB liability (2,273,773) (7,952,437) 10,132,620 1,043,703 Total OPEB liability - beginning 46,512,235 44,238,462 36,379,615 35,335,912 Total OPEB liability - ending (a) $ 44,238,462 36,286,025 $ 46,512,235 $ 36,379,615 $ Covered-employee payroll $ 10,998,667 11,487,256 $ 10,708,319 $ 10,199,027 $ Plan net OPEB liability as a
percentage of covered-employee payroll 315.88% 402.22% 434.36% 356.70% Notes to Schedule
No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75. 1 Information only presented from the implementation year Change of assumptions:

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 June 30, 2022, discount rate has increased from 2.16% to3.54% based on updated municipal bond index City of Pinole
Required Supplementary Information
Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios For the Year Ended June 30, 2023
106

Measurement period, year ending: 6/30/2018 6/30/2017 1
Total OPEB liability
Service cost $ 1,472,000 1,274,335 $
Interest 1,128,000 1,298,734
Changes of benefit terms - -
Differences between expected and actual experience - -
Changes of assumptions (4,636,000) (1,655,481)
Benefit payments, including
refunds of member contributions (1,169,676) (986,000)
Change in total OPEB liability (3,022,000) (252,088)
Total OPEB liability - beginning 38,610,000 35,588,000
Total OPEB liability - ending (a) $ 35,588,000 35,335,912 $ Covered-employee payroll $ 9,306,000 9,399,404 $
Plan net OPEB liability as a
percentage of covered-employee payroll 375.94% 382.42%
Notes to Schedule
No assets are accumulated in a trust that meets the criteria in paragraph 4 of Statement 75. 1 Information only presented from the implementation year Change of assumptions:

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 June 30, 2022, discount rate has increased from 2.16% to3.54% based on updated municipal bond index City of Pinole
Required Supplementary Information
Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios (Continued) For the Year Ended June 30, 2023
107

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108

SUPPLEMENTARY INFORMATION
109

Capital Projects Funds:

Public Works Capital Projects Fund - This fund is used to account for financial resources that are restricted, committed, or assigned for expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets.

Special Revenue Funds:

Growth Impact Fund - This fund is used to account for development fees collected to mitigate the impact of new development. Specifically, it provides for the expansion, design, construction, or upgrade to facilities, roadways, and equipment. The City collects impact fees for police, fire protection, municipal, community, water, roadways and drainage.

Gas Tax Fund - This fund is used to account for the receipt and subsequent expenditure of the City’s share of the State levied tax on gasoline and other vehicle fuels.

Parkland Dedication Fund - This fund is used to account for development fees collected to mitigate the impact of new development on parks and open space.

Measure C Fund - This fund is used to account for special override sales tax revenues collected by the Contra Costa Transportation Authority (CCTA) and reapportioned to the cities for local street projects.

Storm Water Fund - This fund is used to account for moneys received from the Contra Costa County Flood Control and Water Conservation District for use in funding the National Pollutant Discharge Elimination System Program and Drainage System Maintenance activities.

Refuse Management Fund -This fund is used to account for funds received from Republic Services, Inc. from a surcharge it assesses on customer rates for solid waste services.

Adjudicated Asset Seizure Fund - This fund is used to account for receipt and subsequent expenditure of various asset seizure moneys.

Police Fund - This fund is used to account for various grants received to augment law enforcement services and traffic safety.

Cable TV Fund - This fund is used to account for revenues and expenditures related to the operation of the Pinole Community Television (PCTV). Revenue is received from video production charges to other cities, Public, Educational, and Governmental (PEG) access fees and the General Fund. PEG fees are designated for equipment purchases.

Recreation Fund - This fund is used to account for program fees, fundraising proceeds, and donations for Recreation programs. Resources are used towards staffing and maintenance costs to operate the programs.

Building and Planning Fund - This fund is used to account for fees collected for building permits and plan check fees. Fees collected are used to cover the cost involved in plan checks and inspections performed.

Development Services Fund - This fund is used to account for developer deposits.

Solid Waste Fund - This fund is used to account for funds received from Republic Services, Inc. from a surcharge it assesses on customer rates for solid waste services. These funds are set aside for future solid waste capital projects and for a rate stabilization fund. This fund accounts for the capital projects portion.

Non-Major Governmental Funds
110

Special Revenue Funds (Continued):

CASP Certification and Training Fund - This fund is used to account for moneys collected from business license applicants. The funds will be used for increased certified access specialists (CASp) training and certification and to facilitate compliance with construction-related accessibility requirements.

Rate Stabilization Fund - This fund is used to account for funds received from Republic Services, Inc. from a surcharge it assesses on customer rates for solid waste services. The portion in of revenue allocated to this fund is set aside as a rate stabilization fund.

Non-Major Governmental Funds (Continued)
111

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112

Capital
Projects Fund
Public Works
Capital Growth Gas Parkland
Projects Impact Tax Dedication Measure C
ASSETS
Cash and investments 3,568,697 $ 3,323,296 $ 1,009,892 $ - $ 1,833,498 $ Accounts receivable - - 182,924 - -
Lease receivable - - - - -
Interest receivable - 16,738 5,362 406 10,840
Prepaid items and supplies - - - - 315,552
Total assets $ 3,340,034 3,568,697 $ 1,198,178 $ 406 $ 2,159,890 $

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
Liabilities:

Accounts payable 46,260 - 66,307 - 17,521
Accrued liabilities - - - - -
Unearned revenue - - - - -
Deposits payable - - - - -
Due to other funds 241,752 - - - -
Advances from other funds - - - - -
Total liabilities - 288,012 66,307 - 17,521
Deferred inflows of resources:

Lease receivables - - - - -
Total deferred inflows
of resources - - - - -
Fund Balances (Deficits):

Nonspendable - - - - 315,552
Restricted - 3,340,034 1,131,871 406 1,826,817
Assigned 3,280,685 - - - -
Unassigned (deficit) - - - - -
Total fund balances (deficits) 3,340,034 3,280,685 1,131,871 406 2,142,369 Total liabilities, deferred
inflows of resources,
and fund balances $ 3,340,034 3,568,697 $ 1,198,178 $ 406 $ 2,159,890 $ (Continued)
Combining Balance Sheet
Special Revenue Funds
June 30, 2023
Non-Major Governmental Funds
City of Pinole
113

Adjudicated
Storm Refuse Asset Cable
Water Management Seizure Police TV
ASSETS
Cash and investments - $ 92,330 $ 36,743 $ 1,274,483 $ 7,203 $ Accounts receivables 102,376 4,989 - 64,358 85,188
Lease receivable - - - - -
Interest receivable - 582 237 7,211 -
Prepaid items and supplies - - - - -
Total assets $ 97,901 102,376 $ 36,980 $ 1,346,052 $ 92,391 $

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
Liabilities:

Accounts payable 784 - 884 - 223
Accrued liabilities - - - 112 8,119
Unearned revenue - - - 252 6,524
Deposits payable 4,000 - - - -
Due to other funds 97,592 - - - 65,943
Advances from other funds - - - - -
Total liabilities - 102,376 884 364 80,809
Deferred inflows of resources:

Lease receivables - - - - -
Total deferred inflows
of resources - - - - -
Fund Balances (Deficits):

Nonspendable - - - - -
Restricted - 97,901 36,096 1,345,688 11,582
Assigned - - - - -
Unassigned (deficit) - - - - -
Total fund balances (deficits) 97,901 - 36,096 1,345,688 11,582 Total liabilities, deferred
inflows of resources,
and fund balances $ 97,901 102,376 $ 36,980 $ 1,346,052 $ 92,391 $ (Continued)
Special Revenue Funds
City of Pinole
Combining Balance Sheet (Continued)
June 30, 2023
Non-Major Governmental Funds
114

CASP
Building Development Solid Waste Certification
Recreation & Planning Services Fund & Training
ASSETS
Cash and investments 47,323 $ 49 $ 66,471 $ 2,225,711 $ 42,998 $ Accounts receivables 12,789 390,460 - 112,068 40
Lease receivable 11,386 - - - -
Interest receivable - - 426 13,058 -
Prepaid items and supplies 13,400 - - - -
Total assets $ 390,509 84,898 $ 66,897 $ 2,350,837 $ 43,038 $

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
Liabilities:

Accounts payable 64,237 442,733 7,582 2,024 94
Accrued liabilities 26,326 26,866 - - -
Unearned revenue 330 - - - -
Deposits payable 9,640 48,466 59,121 - -
Due to other funds - 1,398,659 - - -
Advances from other funds - - - - -
Total liabilities 1,916,724 100,533 66,703 2,024 94
Deferred inflows of resources:

Lease receivables 5,400 - - - -
Total deferred inflows
of resources - 5,400 - - -
Fund Balances (Deficits):

Nonspendable 13,400 - - - -
Restricted - - 194 2,348,813 42,944
Assigned - - - - -
Unassigned (deficit) (34,435) (1,526,215) - - -
Total fund balances (deficits) (1,526,215) (21,035) 194 2,348,813 42,944 Total liabilities, deferred
inflows of resources,
and fund balances $ 390,509 84,898 $ 66,897 $ 2,350,837 $ 43,038 $ (Continued)
Special Revenue Funds
Combining Balance Sheet (Continued)
City of Pinole
June 30, 2023
Non-Major Governmental Funds
115

Total
Nonmajor
Rate Governmental
Stablization Funds
ASSETS
Cash and investments $ 13,731,863 203,169 $
Accounts receivables 955,192 -
Lease receivable 11,386 -
Interest receivable 56,053 1,193
Prepaid items and supplies 328,952 -
Total assets $ 15,083,446 204,362 $

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
Liabilities:

Accounts payable 648,649 -
Accrued liabilities 61,423 -
Unearned revenue 7,106 -
Deposits payable 121,227 -
Due to other funds 1,803,946 -
Advances from other funds - -
Total liabilities 2,642,351 -
Deferred inflows of resources:

Lease receivables 5,400 -
Total deferred inflows
of resources 5,400 -
Fund Balances (Deficits):

Nonspendable 328,952 -
Restricted 10,386,708 204,362
Assigned 3,280,685 -
Unassigned (deficit) (1,560,650) -
Total fund balances (deficits) 12,435,695 204,362
Total liabilities, deferred
inflows of resources,
and fund balances $ 15,083,446 204,362 $
Combining Balance Sheet (Continued)
Special Revenue Funds
City of Pinole
June 30, 2023
Non-Major Governmental Funds
116

Capital
Projects Fund
Public Works
Capital Growth Gas Parkland
Projects Impact Tax Dedication Measure C
REVENUES:

Taxes and assessments 52,256 $ - $ - $ - $ - $
Intergovernmental revenues 837,918 - 905,449 - 49,790
Investment earnings (losses) (283) 60,820 19,555 766 40,587 Rents and ground leases - - - - -
Charges for services - 577,389 - - -
Fines, forfeitures and penalties - - - - -
Other revenues - - 1,417 - -
Total revenues 638,209 889,891 926,421 766 90,377
EXPENDITURES:

Current:

General administration - - - - -
Public safety - - - - -
Public works 48,101 - 507,442 - 212,502
Recreation - - - - -
Community development - - - - -
Capital outlay 454,841 - 16,412 - 60,954
Total expenditures - 502,942 523,854 - 273,456

REVENUES OVER
(UNDER) EXPENDITURES 638,209 386,949 402,567 766 (183,079) OTHER FINANCING SOURCES (USES):

Transfers in 500,000 - - 22,293 -
Total other financing sources (uses) - 500,000 - 22,293 - NET CHANGES IN FUND BALANCES 638,209 886,949 402,567 23,059 (183,079) FUND BALANCES (DEFICITS):

Beginning of year 2,393,736 2,701,825 729,304 (22,653) 2,325,448 End of year 3,280,685 $ 3,340,034 $ 1,131,871 $ 406 $ 2,142,369 $ (Continued)
For the Year Ended June 30, 2023
Special Revenue Funds
City of Pinole
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds
117

Adjudicated
Storm Refuse Asset Cable
Water Management Seizure Police TV
REVENUES:

Taxes and assessments 257,888 $ - $ - $ 239,924 $ 18,756 $ Intergovernmental revenues - 66,948 - 165,271 -
Investment earnings (losses) (819) 2,213 869 26,795 -
Rents and ground leases - - - - -
Charges for services - - - - 277,903
Fines, forfeitures and penalties - - - 26,111 -
Other revenues - - - - -
Total revenues 69,161 257,069 869 458,101 296,659
EXPENDITURES:

Current:

General administration - - - - 497,627
Public safety - - 16,000 324,554 -
Public works 293,564 122,103 - - -
Recreation - - - - -
Community development - - - - -
Capital outlay - - 6,348 - 4,978
Total expenditures 122,103 293,564 22,348 324,554 502,605

REVENUES OVER
(UNDER) EXPENDITURES (52,942) (36,495) (21,479) 133,547 (205,946) OTHER FINANCING SOURCES (USES):

Transfers in 75,433 - - - 222,755
Total other financing sources (uses) - 75,433 - - 222,755 NET CHANGES IN FUND BALANCES (52,942) 38,938 (21,479) 133,547 16,809 FUND BALANCES (DEFICITS):

Beginning of year (38,938) 150,843 57,575 1,212,141 (5,227) End of year - $ 97,901 $ 36,096 $ 1,345,688 $ 11,582 $
(Continued)
Special Revenue Funds
Non-Major Governmental Funds
For the Year Ended June 30, 2023
City of Pinole
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) 118

CASP
Building Development Solid Waste Certification
Recreation & Planning Services Fund & Training
REVENUES:

Taxes and assessments - $ 496,067 $ - $ - $ - $
Intergovernmental revenues - 20,000 - - -
Investment earnings (losses) (3,470) (18,196) 1,592 48,432 - Rents and ground leases 21,256 - - - -
Charges for services 429,974 710,036 - - 7,354
Fines, forfeitures and penalties - 8,902 - - -
Other revenues 9,518 32 - 433,111 -
Total revenues 1,216,841 457,278 1,592 481,543 7,354
EXPENDITURES:

Current:

General administration 7,068 - - - -
Public safety - - - - -
Public works - - - 94,152 -
Recreation 1,575,076 - - - -
Community development - 2,210,301 - - -
Capital outlay - - - 101,802 -
Total expenditures 2,210,301 1,582,144 - 195,954 -

REVENUES OVER
(UNDER) EXPENDITURES (993,460) (1,124,866) 1,592 285,589 7,354 OTHER FINANCING SOURCES (USES):

Transfers in 1,098,343 - - - -
Total other financing sources (uses) - 1,098,343 - - -
NET CHANGES IN FUND BALANCES (993,460) (26,523) 1,592 285,589 7,354 FUND BALANCES (DEFICITS):

Beginning of year 5,488 (532,755) (1,398) 2,063,224 35,590 End of year (21,035) $ (1,526,215) $ 194 $ 2,348,813 $ 42,944 $ (Continued)
For the Year Ended June 30, 2023
Special Revenue Funds
City of Pinole
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
119

Special
Revenue Funds Total
Nonmajor
Rate Funds
Stabilization Total
REVENUES:

Taxes and assessments $ 1,064,891 - $
Intergovernmental revenues 2,045,376 -
Investment earnings (losses) 183,264 4,403
Rents and ground leases 21,256 -
Charges for services 2,002,656 -
Fines, forfeitures and penalties 35,013 -
Other revenues 444,078 -
Total revenues 5,796,534 4,403
EXPENDITURES:

Current:

General administration 504,695 -
Public safety 340,554 -
Public works 1,277,864 -
Recreation 1,575,076 -
Community development 2,210,301 -
Capital outlay 645,335 -
Total expenditures 6,553,825 -

REVENUES OVER
(UNDER) EXPENDITURES (757,291) 4,403
OTHER FINANCING SOURCES (USES):

Transfers in 1,918,824 -
Total other financing sources (uses) 1,918,824 -
NET CHANGES IN FUND BALANCES 1,161,533 4,403
FUND BALANCES (DEFICITS):

Beginning of year 11,274,162 199,959
End of year $ 12,435,695 204,362 $
(Continued)
For the Year Ended June 30, 2023
Non-Major Governmental Funds
City of Pinole
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) 120

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Taxes and assessments 56,411 $ 56,411 $ 52,256 $ (4,155) $ Intergovernmental revenues 1,590,968 1,590,968 837,918 (753,050) Investment earnings - - (283) (283)
Rents and ground leases 15,000 15,000 - (15,000)
Other revenues 7,500 7,500 - (7,500)
Total revenues 1,669,879 1,669,879 889,891 (779,988)
EXPENDITURES:

Current:

Public works 71,460 71,460 48,101 23,359
Capital outlay 2,782,003 2,782,003 454,841 2,327,162 - Total expenditures 2,853,463 2,853,463 502,942 2,350,521 REVENUES OVER (UNDER) EXPENDITURES (1,183,584) (1,183,584) 386,949 1,570,533 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 balance $ (683,584) (683,584) $ 886,949 1,570,533 $ FUND BALANCE:

Beginning of year 2,393,736
End of year $ 3,280,685
City of Pinole
Budgetary Comparison Schedule
Public Works Capital Projects
For the Year Ended June 30, 2023
Budgeted Amounts
121

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment earnings - $ - $ 60,820 $ 60,820 $
Charges for services 1,608,476 493,000 577,389 84,389
Total revenues 493,000 1,608,476 638,209 145,209
EXPENDITURES:

Current:

Capital outlay 58,000 58,000 - 58,000 - Total expenditures 58,000 58,000 - 58,000 REVENUES OVER (UNDER) EXPENDITURES 435,000 1,550,476 638,209 203,209 Net change in fund balance $ 435,000 1,550,476 $ 638,209 203,209 $ FUND BALANCE:

Beginning of year 2,701,825
End of year $ 3,340,034
City of Pinole
Budgetary Comparison Schedule
Growth Impact Special Revenue Fund
For the Year Ended June 30, 2023
Budgeted Amounts
122

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Intergovernmental revenues 990,635 $ 990,635 $ 905,449 $ (85,186) $ Investment earnings 5,000 5,000 19,555 14,555
Other revenues 7,636 7,636 1,417 (6,219)
Total revenues 1,003,271 1,003,271 926,421 (76,850)
EXPENDITURES:

Current:

Public works 560,647 560,647 507,442 53,205
Capital outlay 583,910 633,910 16,412 617,498
Total expenditures 1,194,557 1,144,557 523,854 670,703
REVENUES OVER (UNDER) EXPENDITURES (191,286) (141,286) 402,567 593,853 Net change in fund balance $ (191,286) (141,286) $ 402,567 593,853 $ FUND BALANCE:

Beginning of year 729,304
End of year $ 1,131,871
City of Pinole
Budgetary Comparison Schedule
Gas Tax Special Revenue Fund
For the Year Ended June 30, 2023
Budgeted Amounts
123

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment earnings - $ - $ 766 $ 766 $
Charges for services 1,293,134 - - -
Total revenues - 1,293,134 766 766
REVENUES OVER (UNDER) EXPENDITURES - 1,293,134 766 766
OTHER FINANCING SOURCES (USES):

Transfers in - 22,294 22,293 (1)
Total other financing sources (uses) 22,294 - 22,293 (1) Net change in fund balance $ 22,294 1,293,134 $ 23,059 765 $ FUND BALANCE (DEFICIT):

Beginning of year (22,653)
End of year $ 406
City of Pinole
Budgetary Comparison Schedule
Parkland Dedication Special Revenue Fund
For the Year Ended June 30, 2023
Budgeted Amounts
124

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Intergovernmental revenues 382,848 $ 382,848 $ 49,790 $ (333,058) $ Investment earnings 8,000 8,000 40,587 32,587
Total revenues 390,848 390,848 90,377 (300,471)
EXPENDITURES:

Current:

Public works 257,880 265,849 212,502 53,347
Capital outlay 382,000 379,031 60,954 318,077 - Total expenditures 644,880 639,880 273,456 371,424 REVENUES OVER (UNDER) EXPENDITURES (254,032) (249,032) (183,079) 70,953 Net change in fund balance $ (254,032) (249,032) $ (183,079) 70,953 $ FUND BALANCE:

Beginning of year 2,325,448
End of year $ 2,142,369
City of Pinole
Budgetary Comparison Schedule
Measure C Special Revenue Fund
For the Year Ended June 30, 2023
Budgeted Amounts
125

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Taxes and assessments 253,272 $ 253,272 $ 257,888 $ 4,616 $ Investment earnings 150.00 150.00 (819) (969)
Total revenues 253,422 253,422 257,069 3,647
EXPENDITURES:

Current:

Public works 336,938 336,938 293,564 43,374 - Total expenditures 336,938 336,938 293,564 43,374 REVENUES OVER (UNDER) EXPENDITURES (83,516) (83,516) (36,495) 47,021 OTHER FINANCING SOURCES (USES):

Transfers in - 75,433 75,433 -
Total other financing sources (uses) 75,433 - 75,433 -
Net change in fund balance $ (8,083) (83,516) $ 38,938 47,021 $ FUND BALANCE (DEFICIT):

Beginning of year (38,938)
End of year $ -
City of Pinole
Budgetary Comparison Schedule
Storm Water Special Revenue Fund
For the Year Ended June 30, 2023
Budgeted Amounts
126

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Intergovernmental revenues 60,060 $ 60,060 $ 66,948 $ 6,888 $ Investment earnings 6,000 6,000 2,213 (3,787)
Total revenues 66,060 66,060 69,161 3,101
EXPENDITURES:

Current:

Public works 167,825 167,825 122,103 45,722 - Total expenditures 167,825 167,825 122,103 45,722 REVENUES OVER (UNDER) EXPENDITURES (101,765) (101,765) (52,942) 48,823 Net change in fund balance $ (101,765) (101,765) $ (52,942) 48,823 $ FUND BALANCE:

Beginning of year 150,843
End of year $ 97,901
City of Pinole
Budgetary Comparison Schedule
Refuse Management Special Revenue Fund
For the Year Ended June 30, 2023
Budgeted Amounts
127

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment earnings - $ - $ 869 $ 869 $
Total revenues - - 869 869
EXPENDITURES:

Current:

Public safety 58,231 58,231 16,000 42,231
Capital outlay - - 6,348 (6,348) - Total expenditures 58,231 58,231 22,348 35,883 REVENUES OVER (UNDER) EXPENDITURES (58,231) (58,231) (21,479) 36,752 Net change in fund balance $ (58,231) (58,231) $ (21,479) 36,752 $ FUND BALANCE:

Beginning of year 57,575
End of year $ 36,096
City of Pinole
Budgetary Comparison Schedule
Adjudicated Asset Seizure Special Revenue Fund
For the Year Ended June 30, 2023
Budgeted Amounts
128

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Taxes and assessments 170,266 $ 170,266 $ 239,924 $ 69,658 $ Intergovernmental revenues 156,727 156,727 165,271 8,544 Investment earnings 5,600 5,600 26,795 21,195
Fines, forfeitures and penalties 45,000 45,000 26,111 (18,889) Total revenues 377,593 377,593 458,101 80,508
EXPENDITURES:

Current:

Public safety 511,991 511,991 324,554 187,437
Capital outlay 7,500 7,500 - 7,500 - Total expenditures 519,491 519,491 324,554 194,937 REVENUES OVER (UNDER) EXPENDITURES (141,898) (141,898) 133,547 275,445 Net change in fund balance $ (141,898) (141,898) $ 133,547 275,445 $ FUND BALANCE:

Beginning of year 1,212,141
End of year $ 1,345,688
City of Pinole
Budgetary Comparison Schedule
Police Special Revenue Fund
For the Year Ended June 30, 2023
Budgeted Amounts
129

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Taxes and assessments 52,972 $ 52,972 $ 18,756 $ (34,216) $ Charges for services 316,956 316,956 277,903 (39,053)
Other revenues 5,000 5,000 - (5,000)
Total revenues 374,928 374,928 296,659 (78,269)
EXPENDITURES:

Current:

General administration 596,395 596,395 497,627 98,768
Capital outlay 50,387 50,387 4,978 45,409 - Total expenditures 646,782 646,782 502,605 144,177 REVENUES OVER (UNDER) EXPENDITURES (271,854) (271,854) (205,946) 65,908 OTHER FINANCING SOURCES (USES):

Transfers in 160,124 222,755 222,755 -
Total other financing sources (uses) 222,755 160,124 222,755 - Net change in fund balance $ (49,099) (111,730) $ 16,809 65,908 $ FUND BALANCE (DEFICIT):

Beginning of year (5,227)
End of year $ 11,582
City of Pinole
Budgetary Comparison Schedule
Cable TV Special Revenue Fund
For the Year Ended June 30, 2023
Budgeted Amounts
130

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Intergovernmental revenues 51,268 $ 51,268 $ - $ (51,268) $ Investment earnings - - (3,470) (3,470)
Rents and ground leases 107,913 19,513 21,256 1,743
Charges for services 385,016 397,636 429,974 32,338
Other revenues 13,803 19,803 9,518 (10,285)
Total revenues 488,220 558,000 457,278 (30,942)
EXPENDITURES:

Current:

General administration - - 7,068 (7,068)
Recreation 1,811,034 1,986,815 1,575,076 411,739
Capital outlay 107,000 107,000 - 107,000 - Total expenditures 2,093,815 1,918,034 1,582,144 511,671 REVENUES OVER (UNDER) EXPENDITURES (1,605,595) (1,360,034) (1,124,866) 480,729 OTHER FINANCING SOURCES (USES):

Transfers in 675,831 1,098,343 1,098,343 -
Total other financing sources (uses) 1,098,343 675,831 1,098,343 - Net change in fund balance $ (507,252) (684,203) $ (26,523) 480,729 $ FUND BALANCE (DEFICIT):

Beginning of year 5,488
End of year $ (21,035)
City of Pinole
Budgetary Comparison Schedule
Recreation Special Revenue Fund
For the Year Ended June 30, 2023
Budgeted Amounts
131

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Taxes and assessments 2,427,800 $ 551,383 $ 496,067 $ (55,316) $ Intergovernmental revenues 225,000 225,000 20,000 (205,000) Investment earnings 7,000 7,000 (18,196) (25,196)
Charges for services 2,162,649 1,499,169 710,036 (789,133) Fines, forfeitures and penalties - - 8,902 8,902
Other revenues 6,000 6,000 32 (5,968)
Total revenues 2,288,552 4,828,449 1,216,841 (1,071,711) EXPENDITURES:

Community development 2,406,793 2,375,760 2,210,301 165,459 Capital outlay 4,000 4,000 - 4,000 - Total expenditures 2,379,760 2,410,793 2,210,301 169,459 REVENUES OVER (UNDER) EXPENDITURES (91,208) 2,417,656 (993,460) (902,252) Net change in fund balance $ (91,208) 2,417,656 $ (993,460) (902,252) $ FUND BALANCE (DEFICIT):

Beginning of year (532,755)
End of year $ (1,526,215)
City of Pinole
Budgetary Comparison Schedule
Building and Planning Special Revenue Fund
For the Year Ended June 30, 2023
Budgeted Amounts
132

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment earnings - $ - $ 1,592 $ 1,592 $
Total revenues - - 1,592 1,592
REVENUES OVER (UNDER) EXPENDITURES - - 1,592 1,592
Net change in fund balance $ - - $ 1,592 1,592 $
FUND BALANCE (DEFICIT):

Beginning of year (1,398)
End of year $ 194
City of Pinole
Budgetary Comparison Schedule
Development Services Special Revenue Fund
For the Year Ended June 30, 2023
Budgeted Amounts
133

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment earnings 8,000 $ 8,000 $ 48,432 $ 40,432 $
Other revenues 360,000 360,000 433,111 73,111
Total revenues 368,000 368,000 481,543 113,543
EXPENDITURES:

Current:

Public works 155,478 155,478 94,152 61,326
Capital outlay 527,300 227,300 101,802 125,498 - Total expenditures 382,778 682,778 195,954 186,824 REVENUES OVER (UNDER) EXPENDITURES (14,778) (314,778) 285,589 300,367 Net change in fund balance $ (14,778) (314,778) $ 285,589 300,367 $ FUND BALANCE:

Beginning of year 2,063,224
End of year $ 2,348,813
City of Pinole
Budgetary Comparison Schedule
Solid Waste Special Revenue Fund
For the Year Ended June 30, 2023
Budgeted Amounts
134

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Charges for services - $ - $ 7,354 $ 7,354 $
Total revenues - - 7,354 7,354
REVENUES OVER (UNDER) EXPENDITURES - - 7,354 7,354
Net change in fund balance $ - - $ 7,354 7,354 $
FUND BALANCE:

Beginning of year 35,590
End of year $ 42,944
City of Pinole
Budgetary Comparison Schedule
CASP Certification & Training Special Revenue Fund
For the Year Ended June 30, 2023
Budgeted Amounts
135

Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:

Investment earnings - $ - $ 4,403 $ 4,403 $
Other revenues 15,000 15,000 - (15,000)
Total revenues 15,000 15,000 4,403 (10,597)
REVENUES OVER (UNDER) EXPENDITURES 15,000 15,000 4,403 (10,597) Net change in fund balance $ 15,000 15,000 $ 4,403 (10,597) $ FUND BALANCE:

Beginning of year 199,959
End of year $ 204,362
City of Pinole
Budgetary Comparison Schedule
Rate Stabilization Fund
For the Year Ended June 30, 2023
Budgeted Amounts
136

FIDUCIARY FUNDS
Private Purpose Trust Fund - this fund accounts for the successor Agency's activities.

Custodial Funds:

Unadjudicated Asset Seizure Fund - This fund is used to account for receipt of various asset seizure moneys awaiting adjudication.

Developer Fees - This fund is used to account for receipt of developer deposits.

Pinole Public School Fund - This fund is used to account for receipt and subsequent expenditure of donations to fund public school projects or programs.

Community Assistance Program Fund - This fund is used to account for receipt and subsequent expenditure of donations for community assistance programs or events.

Police Evidence Fund - This fund is used to account for moneys collected as police evidence. 137

Private-Purpose Unadjudicated Asset Developer
Trust Fund Seizure Fund Fees Fund
ASSETS
Cash and investments $ 24,998 5,591,805 $ 4,869 $
Interest receivable 18,138 - 147
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 7,218,846 - -
Total assets 17,738,351 4,869 25,145

LIABILITIES
Accounts payable 7,905 - 11,449
Deposit payable 56,238 - -
Unearned Revenue 18 - -
Interest payable 34,442 - -
Bonds payable - due within one year 3,570,000 - - - Total liabilities 3,668,603 - 11,449

NET POSITION
Restricted for:

Held in trust for dissolution of RDA - 14,069,748 -
Individuals, organizations, and other governments 13,696 - 4,869 Total net position $ 13,696 14,069,748 $ 4,869 $
Custodian Funds
June 30, 2023
City of Pinole
Combining Statement of Fiduciary Net Position
Fiduciary Funds
138

Community
Pinole Public Assistance Police
School Funds Program Fund Evidence Fund Total
ASSETS
Cash and investments $ 23,650 1,752 $ 108,512 $ 5,755,586 $ Interest receivable 10 - - 18,295
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 - - - 7,218,846
Total assets 23,650 1,762 108,512 17,902,289

LIABILITIES
Accounts payable - - - 19,354
Deposit payable - - 108,291 164,529
Unearned Revenue - 23,650 - 23,668
Interest payable - - - 34,442
Bonds payable - due within one year - - - 3,570,000
Total liabilities 23,650 - 108,291 3,811,993

NET POSITION
Restricted for:

Held in trust for dissolution of RDA - - - 14,069,748
Individuals, organizations, and other governments - 1,762 221 20,548 Total net position $ - 1,762 $ 221 $ 14,090,296 $
Custodian Funds
June 30, 2023
City of Pinole
Combining Statement of Fiduciary Net Position (Continued) Fiduciary Funds
139

Private-Purpose Unadjudicated Asset Developer
Trust Fund Seizure Fund Fees Fund
ADDITIONS:

Property taxes $ 4,753,505 $ - - $
Investment income 48,474 - 542 - Total additions 542 4,801,979 - DEDUCTIONS:

Operating costs 324,147 - -
Depreciation 255,670 - -
Interest expense 89,981 - -
Total deductions - 669,798 -
Change in net position 542 4,132,181 -
NET POSITION:

Beginning of year 9,937,567 4,869 13,154
End of year $ 14,069,748 $ 4,869 13,696 $
Custodian Funds
For the Year Ended June 30, 2023
City of Pinole
Combining Statement of Changes in Fiduciary Net Position Fiduciary Funds
140

Community
Pinole Public Assistance Program Police
School Funds Fund Evidence Fund Total
ADDITIONS:

Property taxes - $ - $ - $ 4,753,505 $
Investment income 38 11 49,065 -
Total additions - 38 11 4,802,570
DEDUCTIONS:

Operating costs - - - 324,147
Depreciation - - - 255,670
Interest expense - - - 89,981
Total deductions - - - 669,798
Change in net position - 38 11 4,132,772
NET POSITION:

Beginning of year 1,724 210 9,957,524 -
End of year $ 1,762 $ 221 - $ 14,090,296 $
Custodian Funds
For the Year Ended June 30, 2023
City of Pinole
Combining Statement of Changes in Fiduciary Net Position (Continued) Fiduciary Funds
141

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142

STATISTICAL SECTION
(Unaudited)
143

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144

Financial Trends:

Net Position by Component – Last Ten Fiscal Years 146
Changes in Net Position – Last Ten Fiscal Years 148
General Fund Tax Revenue by Source – Last Ten Fiscal Years 151 Fund Balances Governmental Funds – Last Ten Fiscal Years 152 Changes in Fund Balances Governmental Funds – Last Ten Fiscal Years 154 Revenue Capacity:

Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years 157 Direct and Overlapping Governments – Last Ten Fiscal Years 158 Principal Property Taxpayers – Last Ten Fiscal Years 159 Property Tax Levies and Collections – Last Ten Fiscal Years 161 Taxable Sales by Category – Last Ten Fiscal Years 162
Direct and Overlapping Sales Tax Rates – Last Ten Fiscal Years 164 Top 25 Sales Tax Producers – Last Ten Fiscal Years 165
Debt Capacity:

Ratios of Outstanding Debt by Type – Last Ten Fiscal Years 166 Ratios of Net General Bonded Debt Outstanding – Last Ten Fiscal Years 167 Direct and Overlapping Governmental Activities Debt 168 Computation of Legal Debt Margin – Last Ten Fiscal Years 169 Revenue Bond Coverage – Last Ten Fiscal Years 170
Demographic and Economic Information:

Demographic Statistics – Last Ten Fiscal Years 171
Principal Employers – Current Year and Ten Years Ago 173 Operating Information:

Operating Indicators by Function/Program – Last Ten Fiscal Years 174 Full-Time Equivalent City Government Employees by Function/Program – Last Ten Fiscal Years 177 Capital Asset Statistics by Function/Program– Last Ten Fiscal Years 178 City of Pinole
Statistical Section
For the Year Ended June 30, 2023
145

2014 2015 2016 2017 2018
Governmental activities
Net investment in capital assets $ 34,962,909 36,296,765 $ 33,764,294 $ 32,700,833 $ 31,758,414 $ Restricted 2,591,393 2,591,393 2,591,393 17,755,625 17,938,328 Unrestricted (deficit) (21,819,095) (2,498,114) (17,014,950) (31,148,654) (34,044,994) Total governmental activities net position $ 15,735,207 36,390,044 $ 19,340,737 $ 19,307,804 $ 15,651,748 $ Business-type activities
Net investment in capital assets $ 11,223,296 9,921,073 $ 13,869,394 $ 14,364,860 $ 13,381,134 $ Unrestricted 4,984,154 5,205,241 4,584,135 5,649,110 6,241,700 Total business-type activities net position $ 16,207,450 15,126,314 $ 18,453,529 $ 20,013,970 $ 19,622,834 $ Primary government
Net investment in capital assets $ 46,186,205 46,217,838 $ 47,633,688 $ 47,065,693 $ 45,139,548 $ Restricted 2,591,393 2,591,393 2,591,393 17,755,625 17,938,328 Unrestricted (deficit) (16,834,941) 2,707,127 (12,430,815) (25,499,544) (27,803,294) Total primary government net position $ 31,942,657 51,516,358 $ 37,794,266 $ 39,321,774 $ 35,274,582 $ City of Pinole
Net Position by Component
Last Ten Fiscal Years
146

2019 2020 2021 2022 2023
Governmental activities
Net investment in capital assets $ 30,774,116 29,977,958 $ 31,008,808 $ 31,695,972 $ 30,207,077 $ Restricted 32,045,457 31,048,458 33,528,931 34,342,971 29,854,090 Unrestricted (deficit) (41,984,038) (41,104,957) (44,487,476) (52,223,172) (39,009,363) Total governmental activities net position $ 20,835,535 19,921,459 $ 20,050,263 $ 13,815,771 $ 21,051,804 $ Business-type activities
Net investment in capital assets $ 12,452,490 13,088,528 $ 12,783,593 $ 12,863,679 $ 7,718,239 $ Unrestricted 10,243,444 7,883,837 10,795,126 11,022,842 12,544,816 Total business-type activities net position $ 22,695,934 20,972,365 $ 23,578,719 $ 23,886,521 $ 20,263,055 $ Primary government
Net investment in capital assets $ 43,226,606 43,066,486 $ 43,792,401 $ 44,559,651 $ 37,925,316 $ Restricted 32,045,457 31,048,458 33,528,931 34,342,971 29,854,090 Unrestricted (deficit) (31,740,594) (33,221,120) (33,692,350) (41,200,330) (26,464,547) Total primary government net position $ 43,531,469 40,893,824 $ 43,628,982 $ 37,702,292 $ 41,314,859 $ City of Pinole
Net Position by Component (Continued)
Last Ten Fiscal Years
147

2014 2015 2016 2017 2018
Expenses
Governmental Activities:

General government 4,718,160 $ 4,373,166 $ 4,368,671 $ 5,952,688 $ 3,482,534 $ Public safety 9,281,461 9,321,934 10,086,963 10,326,947 12,202,527 Public services 2,685,493 2,673,746 3,878,498 2,568,265 3,217,759 Recreation 1,074,585 1,150,267 1,067,952 1,151,760 1,145,227 Community development 779,147 833,061 1,184,385 1,065,848 1,642,031 Interest and fiscal changes 280,173 290,860 305,569 338,507 331,464 Total government activity expenses 18,819,019 $ 18,643,034 $ 20,892,038 $ 21,404,015 $ 22,021,542 $ Business-type activities:

Wastewater utility 4,859,118 4,883,256 5,316,022 4,597,454 5,193,994 Total business-type activities expenses 4,859,118 4,883,256 5,316,022 4,597,454 5,193,994 Total primary government expenses $ 23,526,290 23,678,137 $ 26,208,060 $ 26,001,469 $ 27,215,536 $ Program Revenues
Governmental Activities:

Charges for services:

General government 502,094 $ 590,359 $ 236,512 $ 354,357 $ 648,409 $ Public safety 586,131 534,095 461,330 640,785 1,435,741 Public services 946,387 573,320 545,273 310,073 153,810 Recreation 1,195,728 998,792 871,497 783,783 846,822
Community development 527,441 666,863 244,449 162,634 1,153,907 Operating grants and contributiions 1,026,339 1,203,058 1,464,456 227,184 11,483,081 Capital grants and contributions 640,884 1,068,087 1,262,813 - Total governmental program revenues 5,425,004 5,634,574 3,823,517 3,741,629 15,721,770 Business-type activities:

Charges for services:

Wastewater utility 6,473,147 6,912,213 7,541,964 6,315,563 6,524,537 Capital grants and contributions - - - - -
Total business-type program revenues 6,473,147 6,912,213 7,541,964 6,315,563 6,524,537 Total primary government program revenues 11,898,151 $ 12,546,787 $ 11,365,481 $ 10,057,192 $ 22,246,307 $ Net (Expense)/Revenue
Net (Expense)/Revenue Governmental (13,394,015) (13,008,460) (17,068,521) (17,662,386) (6,299,772) Net (Expense)/Revenue Business-type 1,614,029 2,028,957 2,225,942 1,718,109 1,330,543 Total primary government
net (Expense)/Revenue (11,779,986) (10,979,503) (14,842,579) (15,944,277) (4,969,229) Change in Net Position
Governmental activities (22,757,764) (4,193,825) (1,293,805) (32,933) 12,710,019 Business-type activities 1,602,798 (2,037,223) (2,246,079) 1,721,679 1,389,501 Total primary government $ (6,231,048) (21,154,966) $ (3,539,884) $ 1,688,746 $ 14,099,520 $ City of Pinole
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
148

2019 2020 2021 2022 2023
Expenses
Governmental Activities:

General government 4,931,705 $ 4,596,909 $ 4,957,477 $ 5,539,414 $ 4,226,526 $ Public safety 12,060,171 14,937,597 15,895,381 19,255,147 12,985,795 Public services 3,416,574 3,488,882 4,541,157 3,943,251 4,390,575 Recreation 1,069,375 1,146,587 949,734 1,878,342 1,926,541 Community development 2,338,177 1,365,580 1,275,333 2,271,609 2,982,917 Interest and fiscal changes 287,729 304,844 331,218 388,876 410,766 Total government activity expenses 24,103,731 $ 25,840,399 $ 27,950,300 $ 33,276,639 $ 26,923,120 $ Business-type activities:

Wastewater utility 4,930,113 5,704,747 6,688,530 7,266,212 5,787,622 Total business-type activities expenses 4,930,113 5,704,747 6,688,530 7,266,212 5,787,622 Total primary government expenses $ 31,545,146 29,033,844 $ 34,638,830 $ 40,542,851 $ 32,710,742 $ Program Revenues
Governmental Activities:

Charges for services:

General government 643,524 $ 678,065 $ 686,519 $ 2,106,826 $ 936,883 $ Public safety 1,186,008 1,388,295 1,440,572 1,925,962 1,840,283 Public services 169,758 66,676 74,897 739,693 365,748
Recreation 770,397 501,860 172,486 378,787 711,156
Community development 2,368,209 736,346 503,324 902,764 1,236,488 Operating grants and contributiions 2,136,212 1,790,729 1,795,055 2,020,534 5,594,961 Capital grants and contributions - - - 712,728 865,743
Total governmental program revenues 7,274,108 5,161,971 4,672,853 8,787,294 11,551,262 Business-type activities:

Charges for services:

Wastewater utility 7,211,834 7,093,734 7,527,056 7,770,772 7,831,703 Capital grants and contributions - - - - -
Total business-type program revenues 7,211,834 7,093,734 7,527,056 7,770,772 7,831,703 Total primary government program revenues 14,485,942 $ 12,255,705 $ 12,199,909 $ 16,558,066 $ 19,382,965 $ Net (Expense)/Revenue
Net (Expense)/Revenue Governmental (16,829,623) (20,678,428) (23,277,447) (24,489,345) (15,371,858) Net (Expense)/Revenue Business-type 2,281,721 1,388,987 838,526 504,560 2,044,081 Total primary government
net (Expense)/Revenue (14,547,902) (19,289,441) (22,438,921) (23,984,785) (13,327,777) Change in Net Position
Governmental activities 2,874,178 (50,793) (785,272) (6,234,493) 7,163,668 Business-type activities 2,411,362 1,673,561 882,785 307,802 1,869,392 Total primary government $ 1,622,768 5,285,540 $ 97,513 $ (5,926,691) $ 9,033,060 $ City of Pinole
Changes in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
149

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150

(b) (a) ( c )
Fiscal Year Property Tax Sales Tax
Franchise
Tax Transfer Tax
Occupancy
Tax Utility Tax Other Total
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 2023 4,985,909 9,328,351 875,058 69,881 456,288 2,312,830 2,689,580 20,717,898 (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
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Fiscal Year Property Tax Sales Tax Franchise Tax Transfer Tax Occupancy Tax Utility Tax Other
151

2014 2015 2016 2017 2018
General Fund
Nonspendable 11,157 $ - $ 7,275 $ 6,712 $ 12,669 $
Restricted - - - - 133,586
Assigned 2,899,585 1,030,000 - - 2,531,677
Committed - - - - -
Unassigned (2,914,406) 4,261,995 9,062,287 11,700,289 23,249,204 Total General Fund (3,664) $ 5,291,995 $ 9,069,562 $ 11,707,001 $ 25,927,136 $ All Other Governmental Funds
Nonspendable 2,591,393 $ 2,591,393 $ 6,882,968 $ - $
Restricted 15,103,453 14,074,122 11,665,834 10,872,657 18,250,952 Assigned 783,083 3,661,477 - - 2,366,429
Committed - - - 2,304,515 -
Unassigned reported in:

Special revenue funds - (611,270) 4,248,108 (371,162) (43,673) Capital project funds (24,842) (265,778) - - -
Debt service funds (3,018,401) - - - -
Total all other governmental funds 15,434,686 $ 16,858,551 $ 18,505,335 $ 19,688,978 $ 20,573,708 $ City of Pinole
Fund Balances Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
152

2019 2020 2021 2022 2023
General Fund
Nonspendable 13,178 $ 463,067 $ 18,782 $ 45,296 $ 243,904 $ Restricted 17,346,090 18,255,487 19,623,678 17,271,818 14,775,559 Assigned 2,531,677 7,672,065 7,836,178 8,533,768 -
Committed - 579,257 - - 9,412,029
Unassigned 14,909,608 10,828,937 12,488,562 9,406,554 12,123,654 Total General Fund 34,800,553 $ 37,798,813 $ 39,967,200 $ 35,257,436 $ 36,555,146 $ All Other Governmental Funds
Nonspendable - $ 315,552 $ 315,552 $ 315,552 $ 328,952 $ Restricted 14,306,945 13,756,009 13,905,253 17,236,034 18,590,427 Assigned 2,800,614 2,751,350 2,526,571 2,069,093 3,280,685 Committed - - - - -
Unassigned reported in:

Special revenue funds (29,052) (35,900) (137,880) (600,971) (1,560,650) Capital project funds - - - - -
Debt service funds - - - - -
Total all other governmental funds 17,078,507 $ 16,787,011 $ 16,609,496 $ 19,019,708 $ 20,639,414 $ City of Pinole
Fund Balances Governmental Funds (Continued)
Last Ten Fiscal Years
(modified accrual basis of accounting)
153

2014 2015 2016 2017 2018
Revenues
Taxes 11,456,712 $ 15,111,311 $ 15,111,374 $ 15,453,213 $ 16,599,387 $ Intergovernmental 3,426,928 3,313,973 3,462,621 877,090 1,460,655 Loan repayments 108,021 45,666 85,849 145,457 15,023
Contributions 94,032 51,313 65,317 146,112 30,595
Investment earnings 595,808 311,168 188,790 16,188 88,092 Rents and ground leases 273,435 264,301 224,952 300,441 303,618 Charges for service 2,645,656 2,929,952 3,892,535 3,997,423 5,307,234 Fines, forfeitures and penalties 60,734 58,863 41,564 48,442 75,670 Gain (loss) on sale of property - -
Other revenues 137,713 778,737 365,857 532,173 834,086
Total revenues 18,799,039 22,865,284 23,438,859 21,516,539 24,714,360 Expenditures
General administration 2,506,878 2,411,271 3,007,506 3,035,822 3,257,220 Public safety 9,206,393 9,165,922 9,635,264 10,067,977 10,535,903 Public services 1,822,928 1,628,204 2,460,827 1,712,315 1,485,090 Recreation 1,038,572 1,107,168 906,302 1,042,006 960,325 Community development 742,413 818,580 945,646 935,276 1,596,240 Debt service - Principal 381,144 373,007 369,177 363,151 361,674 Debt service - Interest 280,173 290,860 305,569 338,507 331,464 Capital outlay 1,598,513 368,007 1,289,967 200,403 1,098,789 Total expenditures 17,577,014 16,163,019 17,695,457 19,626,705 Other financing sources (uses)
Bond, note and loan proceeds 458,000 - - - -
Capital lease financing
Gain (loss) on sale of property 6,559 17,259 1,909 10,017,210 Transfers in - 447,050 446,000 671,364 826,926
Transfers out - (447,050) (446,000) (671,364) (826,926) Transfers from enterprise fund - - - - -
Extraordinary item (22,634,276) - - - -
Total other financing sources (22,169,717) 17,259 1,909 - 10,017,210 Net change in fund balance (20,947,692) $ 6,719,524 $ 23,440,768 $ 3,821,082 $ 15,104,865 $ Debt service as a % of
noncapital expenditures 4.1% 4.2% -52.3% 4.0% 3.7%
City of Pinole
Changes in Fund Balances Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
154

2019 2020 2021 2022 2023
Revenues
Taxes 15,853,006 $ 15,874,731 $ 19,055,833 $ 20,403,637 $ 21,782,789 $ Intergovernmental 2,188,347 1,860,599 1,856,343 2,837,951 6,204,016 Loan repayments 1,656,645 544,892 107,912 11,658 -
Contributions 22,746 24,889 14,274 10,574 -
Investment earnings 1,529,630 1,790,740 2,888,309 (2,754,154) 1,508,707 Rents and ground leases 274,153 185,594 131,335 121,141 116,688 Charges for service 4,616,561 4,726,675 2,444,899 5,581,014 3,930,060 Fines, forfeitures and penalties 89,911 68,576 41,236 39,392 52,592 Gain (loss) on sale of property - - - - -
Other revenues 746,909 709,677 541,679 515,174 491,936
Total revenues 26,977,908 25,786,373 27,081,820 26,766,387 34,086,788 Expenditures
General administration 3,802,406 4,029,981 4,319,504 4,775,249 4,800,746 Public safety 11,801,897 12,975,773 13,889,090 15,143,959 17,104,181 Public services 1,648,377 1,680,617 1,448,818 2,448,651 3,069,163 Recreation 1,069,375 1,000,400 820,918 1,573,083 1,930,222 Community development 1,237,892 1,333,476 1,205,200 2,143,148 3,218,011 Debt service - Principal 356,117 301,709 227,389 244,820 338,125 Debt service - Interest 287,729 304,844 331,218 388,876 401,206 Capital outlay 1,419,264 1,466,664 2,932,020 2,627,507 1,447,983 Total expenditures 21,623,057 23,093,464 25,174,157 29,345,293 32,309,637 Other financing sources (uses)
Bond, note and loan proceeds - - - - 165,695
Capital lease financing
Gain (loss) on sale of property 3,140 13,855 83,209 279,354 944,424 Transfers in 7,135,205 1,170,058 1,681,841 2,129,233 8,886,672 Transfers out (7,135,205) (1,170,058) (1,681,841) (2,129,233) (8,886,672) Transfers from enterprise fund - - - - -
Extraordinary item - - - - -
Total other financing sources 3,140 13,855 83,209 279,354 1,110,119 Net change in fund balance 5,357,991 $ 2,706,764 $ 1,990,872 $ (2,299,552) $ 2,887,270 $ Debt service as a % of
noncapital expenditures 3.2% 2.8% 2.5% 2.4% 2.4%
City of Pinole
Changes in Fund Balances Governmental Funds (Continued) Last Ten Fiscal Years
(modified accrual basis of accounting)
155

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156

Total Real
Fiscal Residential Commercial Industrial Secured Unsecured Total Estimated Total Direct Year Property Property Property Other Property Property Assessed (a) Full Market (a) (b) 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% 2023 2,420,638,572 535,935,832 28,005,918 23,417,929 3,007,998,251 59,630,604 3,067,628,855 3,645,570,131 0.1884% Source: Contra Costa County Assessor Combined Tax Rolls-HdL Coren & Cone report.

City of Pinole
Assessed and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
[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.

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. 157

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]
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
2023 1.0000 0.0140 0.0058 0.0162 0.2564 1.2924
Source : Contra Costa County Auditor-Controller Office
[1] Rates are per $100 of assessed value.

Last Ten Fiscal Years
City of Pinole
Property Tax Rates
Direct and Overlapping Governments
Per $100 of Assessed Value

0.0010

0.0100

0.1000

1.0000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
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] 158

Taxpayer
Taxable Assessed
Value
Percent of Total City
Taxable Assessed
Value
Taxable Assessed
Value
Percent of Total City
Taxable Assessed
Value
Appian Associates $ 0.90% 15,407,341
Che Chen and Shu Fen Liu Trust 23,992,372 $ 0.80% 20,675,909 1.21% Dayton Hudson Corporation 1.14% 19,444,067
Fairfield Bayside LLC 39,841,993 1.32%
Gateway Pinole Vista LLC 71,300,000 2.37%
Kaiser Foundation Health Plan 39,191,729 1.30% 35,945,142 2.11% KW Pinole 1.28% 21,837,738
NHI-Reit of Next House LLC 20,677,333 0.69%
Peter L. Thingpen 1.23% 20,991,311
Pinole Ridge Mall LLC 20,942,485 0.70%
Public Storage 0.77% 13,197,567
ROIC Pinole Vista LLC 42,405,072 1.41% 21,625,988 1.27% SCG Pinole Valley Shopping Center 42,180,000 1.40%
Target Corporation 20,405,648 0.68%
Thomas Fitzgerald Trust 17,476,703 0.58% 12,614,060 0.74% TKG Pinole LLC 3.53% 60,094,040
$ 11.25% 241,833,163 338,413,335 $ 14.19%
Total Net Assessed Valuation:

Fiscal Year 2022-23 3,007,998,251 $
Fiscal Year 2013-14 1,704,505,508 $
Source: Contra Costa County Assessor Combined Tax Rolls-HdL Coren & Cone reports.

Note: Information is shown in alphabetical order.
2022-23 2013-14
City of Pinole
Principal Property Taxpayers
Current and Nine Years Prior
159

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160

Redevelopment/ Value of Effective
Successor Agency Total Percent Value of City Redevelopment Local Tax Rate Effective Taxrate for Fiscal City Property Tax Property Tax Property Tax of Levy Property Subject to Property Subject to Applied to Taxrate for Redevelopment Year Levied & Collected Levied & Collected Levied & Collected Collected Local Tax Rate Local Tax Rate Assessed Value City Levy Agency Levy 2014 1,622,419 $ 105,121 $ [1] $ 100% 868,918,982 1,727,540 $ 862,888,372 $ 1,731,807,354 $ 0.19% 0.01% 2015 1,856,378 105,121 [1] 1,961,498 100% 990,967,092 956,240,628 1,947,207,720 0.19% 0.01% 2016 1,967,011 105,121 [1] 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 [1] 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 [1] 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 [1] 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 [1] 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 [1] 2,740,315 100% 1,404,683,713 1,346,717,824 2,751,401,537 0.19% 0.01% 2022 2,736,121 104,569 [1] 2,840,690 100% 1,457,104,818 1,387,850,611 2,844,955,429 0.19% 0.01% 2023 2,949,258 104,569 [1] 3,053,827 100% 1,568,575,641 1,475,686,706 3,044,262,347 0.19% 0.01% Source: Contra Costa County
Notes:

City of Pinole
Property Tax Levies and Collections
Last Ten Fiscal Years
[1] 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) $1.00
$1.50
$2.00
$2.50
$3.00
$3.50
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Millions
Levied & Collected
$0.80
$1.30
$1.80
$2.30
$2.80
$3.30
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Billions
Assessed Value
161

2013-14 2014-15 2015-16 2016-17 2017-18
[b]
Major Business Groups
Autos and Transportation 124,234 $ 128,585 $ 143,531 $ 142,634 $ 129,758 $ Building and Construction 205,843 228,851 235,399 256,743 252,433 Business and Industry 90,046 74,621 74,664 69,064 68,148 Food and Drugs 332,824 369,426 354,347 366,064 376,151
Fuel and Service Stations 426,327 431,453 393,583 355,390 362,450 General Consumer Goods 1,182,294 1,229,774 1,298,176 1,343,309 1,347,691 Restaurants and Hotels 618,795 660,763 711,659 715,966 715,885 Adjustments & Others [a] 35,173 (50,925) 24,448 - 506
Point of Sale s/totals 3,015,536 3,072,548 3,235,807 3,249,170 3,253,022 County Pool Allocations 366,939 408,386 431,500 499,708 490,660 State Pool Allocations 2,064 2,129 2,400 2,637 1,903
Local Transaction Tax 1,796,832 1,894,578 3,789,711 3,953,872 4,089,586 Administrative Cost - SBE (54,106) (58,890) (82,268) (95,537) (90,183) Fiscal Year Totals 5,127,265 $ 5,318,751 $ 7,377,150 $ 7,609,850 $ 7,744,988 $ City Direct Sales Tax Rate 1.25% 1.25% 1.75% 1.75% 1.75% Notes:
[a]
[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
"Adjustment" reflects "True-up" reconciliation payment for "Triple-Flip" Reimbursement for State Fiscal Recovery Bond Financing Program. 162

2018-19 2019-20 2020-21 2021-22 2022-23
Major Business Groups
Autos and Transportation 149,328 $ 125,285 $ 131,364 $ 145,204 $ 141,027 $ Building and Construction 248,668 240,333 287,086 253,926 236,384 Business and Industry 81,173 80,562 66,279 79,061 69,661 Food and Drugs 408,251 422,665 467,507 435,658 440,943
Fuel and Service Stations 482,117 370,686 412,186 596,460 351,757 General Consumer Goods 1,323,599 1,110,168 1,299,328 1,333,100 1,364,953 Restaurants and Hotels 813,411 724,290 741,032 936,053 1,011,530 Adjustments & Others 5,972 1,211 484 5,260 11,511
Point of Sale s/totals 3,512,519 3,075,200 3,405,266 3,784,722 3,627,766 County Pool Allocations 519,400 747,782 927,704 861,541 798,304 State Pool Allocations 1,829 1,710 2,650 343 1,966
Local Transaction Tax [a] 4,402,698 3,944,917 4,654,311 5,041,168 4,976,048 Administrative Cost - SBE (87,797) (79,691) (62,570) (74,149) (75,735) Fiscal Year Totals 8,348,649 $ 7,689,918 $ 8,927,361 $ 9,613,625 $ 9,328,349 $ City Direct Sales Tax Rate 1.75% 1.75% 1.75% 1.75% 1.75% Notes:
[a]
[b] Effective 04/01/15 additional 1/2% local transaction tax (Measure "S" 2014) authorized Source: HdL Coren & Cone
"Adjustment" reflects "True-up" reconciliation payment for "Triple-Flip" Reimbursement for State Fiscal Recovery Bond Financing Program.

City of Pinole
Taxable Sales by Category (Continued)
Last Ten Fiscal Years
163

2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Taxing Jurisdiction / Purpose [c]
Overlapping Sales Taxes
State 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% 0.00% 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% 0.50% 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% 7.50% 7.50% 7.50% 7.50% 8.00% 8.00% 8.00% City Direct Sales Taxes
Bradley 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% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% Direct Sales Taxes 1.25% 1.75% 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% 9.50% 9.50% 9.25% 9.25% 9.25% 9.25% 9.75% 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
164

BUSINESS NAME BUSINESS CATEGORY

1. APPIAN CHEVRON SERVICE STATIONS

2. APPLEBEE'S FULL-SERVICE RESTAURANTS

3. BEST BUY ELECTRONICS/APPLIANCE STORES

4. BEVMO CONVENIENCE STORES/LIQUOR

5. BURLINGTON COAT FACTORY FAMILY APPAREL

6. DOLAN'S PINOLE LUMBER BUILDING MATERIALS

7. FOOD MAXX GROCERY STORES

8. HOME GOODS FURNITURE STORES

9. IN-N-OUT BURGER QUICK-SERVICE RESTAURANTS

10. MCDONALDS QUICK-SERVICE RESTAURANTS

11. MICHAELS ARTS & CRAFTS ART/GIFT/NOVELTY STORES

12. O'REILLY AUTO PARTS AUTOMOTIVE SUPPLY STORES

13. ORIGINAL MELS DINER QUICK-SERVICE RESTAURANTS

14. PANDA EXPRESS LIMITED-SERVICE RESTAURANTS

15. PETSMART SPECIALTY STORES

16. PINOLE CHEVRON SERVICE STATIONS

17. PINOLE SHELL SERVICE STATIONS

18. PINOLE VALLEY ARCO SERVICE STATIONS

19. SAFEWAY GROCERY STORES

20. SHOE PALACE SHOE STORES

21. TARGET DISCOUNT DEPARTMENT STORES

22. TJ MAXX FAMILY APPAREL

23. TRADER JOES GROCERY STORES

24. ULTA BEAUTY SPECIALTY STORES

25. WESTLAKE ACE HARDWARE BUILDING MATERIALS
PERCENT OF FISCAL YEAR TOTAL PAID BY TOP 25 ACCOUNTS = 57.41% 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, 2023
165

Fiscal
Year
Redevelopment
Bonds
Pension
Obligation
Bonds
Notes and
Mortgages
Leases
Payable
Subscription
Payable
Wastewater
Revenue
Bonds
Clean Water
State
Revolving
Fund
Total Primary
Government
Percentage
of Personal
Income
Per
Capita
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 2.0% 1,764 2022 [a] 2,512,885 [a] 72,619 118,626 6,321,000 24,105,950 33,131,080 1.9% 1,779 2023 [a] 2,297,299 [a] 56,609 176,570 5,980,000 23,426,566 31,937,044 1.8% 1,751 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 Finance
US 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
Business-type Activities
166

Fiscal Year 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
2014 4,478,467 $ - $ 4,478,467 $ 0.52% [a] 238 $
2015 4,206,695 - 4,206,695 0.42% [a] 222
2016 3,941,977 - 3,941,977 0.38% [a] 210
2017 3,986,615 - 3,986,615 0.36% [a] 210
2018 3,436,175 - 3,436,175 0.29% [a] 179
2019 3,194,853 - 3,194,853 0.26% [a] 164
2020 2,961,839 - 2,961,839 0.22% [a] 152
2021 2,734,450 - 2,734,450 0.19% [a] 141
2022 2,512,885 - 2,512,885 0.17% [a] 135
2023 2,297,299 - 2,297,299 0.15% [a] 126
Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements. [a]
Sources:

City Finance Department
Contra Costa County Office of the Auditor-Controller
Based on Assessment Value net of restricted Redevelopment Tax Increment City of Pinole
Ratios of Net General Bonded Debt Outstanding
Last Ten Fiscal Years
General Bonded Debt Outstanding
167

2022-23 Assessed Valuation: 3,067,628,855 $
Total Debt [1] City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2023 % Applicable Debt 6/30/23 Bay Area Rapid Transit District 2,484,285,000 $ 0.322% 7,999,398 $ Contra Costa Community College District 649,015,000 1.220% 7,917,983 West Contra Costa Unified School District 1,188,146,381 7.877% 93,590,290 West Contra Costa Healthcare District Parcel Tax Obligations 43,000,000 7.428% 3,194,040 East Bay Regional Park District 175,955,000 0.510% 897,371 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 113,599,081
DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Contra Costa County General Fund Obligations 193,515,000 $ 1.216% 2,353,142 $ West Contra Costa Unified School District Certificates of Participation 4,850,000 7.877% 382,035 City of Pinole Pension Obligation Bonds 2,297,298 100.000% 2,297,298 City of Pinole Capital Lease Obligations 47,659 100.000% 47,659 Alameda-Contra Costa Transit District Certificates of Participation 11,220,000 0.032% 3,590 TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT 5,083,724 $ Less: Contra Costa County obligations supported from revenue funds 619,301 TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT 4,464,423 $ OVERLAPPING TAX INCREMENT DEBT (Successor Agency): $ 100.000% 3,570,000 3,570,000 $ TOTAL DIRECT DEBT $ 2,344,957
TOTAL GROSS OVERLAPPING DEBT $ 119,907,848
TOTAL NET OVERLAPPING DEBT $ 119,288,547
GROSS COMBINED TOTAL DEBT $ [2] 122,252,805
NET COMBINED TOTAL DEBT $ 121,633,504
Ratios to 2022-23 Assessed Valuation:

Total Overlapping Tax and Assessment Debt.....................................….... 3.70% Total Direct Debt ($2,344,957)...................................…........................... 0.08% Gross Combined Total Debt........................................................................ 3.99% Net Combined Total Debt ……………………...……………..…….………3.97%
Ratios to Redevelopment Successor Agency Incremental Valuation ($1,475,686,706):

Total Overlapping Tax Increment Debt ………………………….….….... 0.24% Notes:
[2] Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.

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

June 30, 2023
Direct and Overlapping Governmental Activities Debt
City of Pinole
168

ASSESSED VALUATION:

Secured property assessed value, net of exempt real property 3,044,262,347 $ BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) [a] 114,159,838 $ AMOUNT OF DEBT SUBJECT TO LIMIT: $ 2,297,299
LEGAL BONDED DEBT MARGIN: $ 116,457,137
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
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 2,751,401,537 103,177,558 2,734,450 100,443,108 2.65% 2022 2,844,955,429 106,685,829 2,512,885 104,172,944 2.36% 2023 3,044,262,347 114,159,838 2,297,299 111,862,539 2.01% 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
169

Net Revenue
Fiscal Gross Operating Available for
Year Revenue [a] Expenses [b] Debt Service Principal Interest Total Coverage 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 2023 7,831,703 5,787,622 2,044,081 341,000 181,440 522,440 3.91 Notes:
[a] Includes all wastewater operating revenue, non-operating interest revenue, connection fees and other non-operating revenue. [b] Includes all wastewater operating expenses less depreciation.

Source: City of Pinole Finance
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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Coverage
170

Fiscal Year
City Population
[a] Personal Income [b]
Median
Household
Income [c]
Per Capita
Personal
Income [d]
School
Enrollment [e]
Unemployment Rate
[f]
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 1,672,687,471 125,600 86,359 3,498 7.0%
2022 18,628 1,766,567,752 142,800 94,834 3,802 3.0%
2023 18,244 1,734,037,468 147,900 95,047 3,747 2.7%
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) Bureau of Economic Analysis, U.S. Department of Commerce. (e) State of California Department of Education.
(f) 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
$17,500
$18,000
$18,500
$19,000
$19,500
$20,000
City Population
171

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172

Employer
Employee
Count
Percentage of City
Total Employer
Employee
Count
Percentage of City
Total
Target 237 2.52% West Contra Costa USD 320 7.39%
West Contra Costa USD 204 2.17% Lucky's / Food Max 140 3.23% Kaiser Health Center 144 1.53% Target 136 3.14%
City of Pinole 116 1.23% City of Pinole 112 2.59%
In-N-Out Burger 110 1.17% K-Mart 104 2.40%
Lucky 103 1.10% Best Buy 85 1.96%
Sprouts Farmers Market 100 1.06% Kaiser Health Center 75 1.73% Trader Joes 98 1.04% Trader Joes 69 1.59%
MV Public Transportation, Inc 97 1.03% Safeway 67 1.55% Best Buy Stores 91 0.97% Round Table Pizza 52 1.20%
Top 10 Employer Count 1,300 1,160
Total Workforce 9,400 13.83% 4,332 26.78%
Data Sources:

City of Pinole (Business Licensing)
California Department of Education
Employment Development Department
City of Pinole
Current Year and Nine Years Ago
2023 2014
Principal Employers
173

Date of Incorporation 1903
Form of Government Council-Manager
Number of Employees(including police & fire)
Full-time 90
Part-time 24
Area in square miles 5 square miles
Statistics by Fiscal Year 2023 2022 2021 2020 2019
Fire Protection:**
Number of fire personnel & officers (incl. Reserves) 0 17 15 15 15 Number of calls answered Not Available 2,548 2,086 2,574 2,493 Number of inspections conducted Not Available 491 375* 231 168 Number of building plan reviews Not Available 46 35 29 28 Number of fire investigations Not Available Not Available Not Available Not Available Not Available Police Protection :

Number of police personnel & officers (incl. Reserves) 49.3 47.3 46 46 46 Number of police personnel per thousand population 2.70 2.54 2.37 2.36 2.36

Community Development:

Number of residential building permits 1018 1038 905 843 749 Valuation of residential building permits 29,010,799 $ 12,320,050 $ 8,978,646 $ 7,043,338 $ 8,012,647 $ Number of commercial building permits 46 45 45 43 153
Valuation of commercial building permits 6,281,089 $ 2,197,897 $ 2,453,802 $ 2,749,091 $ 4,354,070 $ Sewer System:

Daily average treatment in gallons 3,120,000 2,726,016 2,553,562 2,255,055 2,277,331 Maximum daily capacity of treatment plant in gallons 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. ** Fire Protection Services are provided by ConFire effective March 2023 City of Pinole
Operating Indicators by Function/Program
Last Ten Fiscal Years
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
2023 2021 2019 2016 2014
Valuation of residential
building permits
Valuation of commercial
building permits
174

Date of Incorporation 1903
Form of Government Council-Manager
Number of Employees(including police & fire)
Full-time 90
Part-time 24
Area in square miles 5 square miles
Statistics by Fiscal Year 2017 2016 2015 2014
Fire Protection:**
Number of fire personnel & officers (incl. Reserves) 15 15 15 17 Number of calls answered 2,647 2,406 1,908 2,205
Number of inspections conducted 45 404 60 7
Number of building plan reviews 34 66 50 25
Number of fire investigations Not Available Not Available 2 Not Available Police Protection :

Number of police personnel & officers (incl. Reserves) 41.5 41.5 40 40 Number of police personnel per thousand population 2.19 2.21 2.11 2.13

Community Development:

Number of residential building permits 777 1027 1061 800 Valuation of residential building permits 8,613,376 $ 11,969,126 $ 6,485,860 $ 6,140,140 $ Number of commercial building permits 92 46 22 43
Valuation of commercial building permits 2,275,774 $ 8,053,064 $ 1,961,346 $ 5,671,577 $ Sewer System:

Daily average treatment in gallons 2,914,000 2,381,151 2,449,863 2,579,625 Maximum daily capacity of treatment plant in gallons 4,060,000 4,060,000 4,060,000 4,060,000 *A contributing factor to the increase is the implementation of the Fire operation permit. ** Fire Protection Services are provided by ConFire effective March 2023 City of Pinole
Operating Indicators by Function/Program (Continued)
Last Ten Fiscal Years
0 10
20 30
40 50
60 2023 2021 2019 2016 2014
Number of police personnel &
officers (incl. Reserves)
Number of police personnel
per thousand population
175

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176

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function / Program [a]
General government
Administration 5.0 5.0 5.0 5.0 5.0 5.5 5.5 6.5 7.5 9.0
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 1.5 2.0 2.0
Building 2.0 2.0 2.0 2.5 3.5 3.5 4.0 4.0 5.0 5.5
Other 4.0 4.0 3.0 3.0 3.0 3.0 2.8 3.8 - -
Police
Sworn 27.0 27.0 27.0 27.0 28.0 28.0 28.0 28.0 28.0 30.0 Non-sworn 13.0 13.0 14.5 14.5 17.5 18.0 18.5 18.2 19.3 19.3 Fire [b]
Sworn 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 2.5 4.0 6.5
Maintenance 6.0 6.0 10.0 10.0 10.0 10.0 11.3 10.3 12.3 12.3 Redevelopment - - - - - - - - - -
Parks and recreation 11.0 11.0 13.0 13.0 13.0 13.0 11.5 11.5 15.3 16.2 Wastewater collection and treatment 13.0 13.0 10.5 10.5 10.5 10.5 10.5 10.5 11.5 11.5 Total 103.5 103.5 108.0 108.0 113.0 114.0 114.4 115.2 125.2 115.6 Notes:
[a] Paid employees only (excluding reserves and volunteers) [b] Fire protection services are provided by ConFire effective March 2023.

Source: City of Pinole Annual Budget Documents
City of Pinole
Full-Time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years
177

City Streets:

Miles of streets 63
Number of street lights 373 (city owned)
971 (electric & private utility)
Statistics by Fiscal Year 2023 2022 2021 2020 2019
Fire Protection :

Number of stations* 21111
Police Protection :

Number of stations 11111
Number of patrol units 11 11 13 13 13
Number of security units 32222

Recreation and culture :

Swim Center 11111
Community Theater 11111
Senior Center 11111
Youth Center 11111
Pre-school Center 11111
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
Sewer System:

Sanitary sewers 50 miles 50 miles 50 miles 50 miles 50 miles Miles of storm drains 34 miles 34 miles 34 miles 34 miles 34 miles Number of treatment plants 11111
Number of service connections 5,455 5,416 5,416 5,416 5,416 Schools:

Elementary-public 55555
Elementary-private 22222
Junior High School-public 11111
High School-public 11111
*Fire protection services are provided by ConFire
Source: City of Pinole Finance
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
City of Pinole
178

City Streets:

Miles of streets 63
Number of street lights 373 (city owned)
971 (electric & private utility)
Statistics by Fiscal Year 2018 2017 2016 2015 2014
Fire Protection :

Number of stations* 11111
Police Protection :

Number of stations 11111
Number of patrol units 13 13 13 13 13
Number of security units 22222

Recreation and culture :

Swim Center 11111
Community Theater 11111
Senior Center 11111
Youth Center 11111
Pre-school Center 11111
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
Sewer System:

Sanitary sewers 50 miles 50 miles 50 miles 50 miles 50 miles Miles of storm drains 34 miles 34 miles 34 miles 34 miles 34 miles Number of treatment plants 11111
Number of service connections 5,416 5,416 5,416 5,416 5,414 Schools:

Elementary-public 54444
Elementary-private 22211
Junior High School-public 11111
High School-public 11111
City of Pinole
Capital Asset Statistics by Function/Program (Continued) Last Ten Fiscal Years
179

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180

City of Pinole
2006 Measure S Fund
Pinole, California
Independent Accountant’s Report
on Agreed-Upon Procedures Applied
to Schedule of Measure S Revenues and Expenditures
For the Year Ended June 30, 2023

200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707
INDEPENDENT ACCOUNTANT’S REPORT

ON APPLYING AGREED-UPON PROCEDURES
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 accompanying Schedule of Measure S Revenues and Expenditures (the “Schedule”) of the City of Pinole, California (the “City”) for the year ended June 30, 2023. The City is responsible for the Schedule.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of meeting the requirements of City Ordinance 2006-07, Amending Chapter 3.28 of the City’s Municipal Code, “Transactions and Use Tax” To Levy a One-Half Cent Transactions and Use Tax”. The City has agreed to and acknowledged that the procedures performed are appropriate for its purposes. 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. Obtained and reviewed City Ordinance 2006-07, Amending Chapter 3.28 of the City’s Municipal Code, “Transactions and Use Tax” To Levy a One-Half Cent Transactions and Use Tax”.

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

2. Obtained a Schedule of Measure S Revenues and Expenditures for the fiscal year and agreed totals reported on the schedule to the City’s trial balance.

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

3. 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.

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

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

To the Honorable Mayor and Members of the City Council
of the City of Pinole

2 5. Review salary reports and expenditure details to verify that the funds expensed complied with the purpose that was specified to the registered voters of the City through election materials and City resolutions that were distributed to the voters.

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

6. 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.

7. Report any findings regarding compliance with Chapter 3.28 of the City’s Municipal Code as a result of the procedures performed.

Finding: No exceptions were noted.

We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respective on the accompanying schedule. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters 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.

Santa Ana, California
February 27, 2024

City of Pinole
Measure S Fund
Schedule of Revenues and Expenditures
For the Year Ended June 30, 2023
3 Revenues:

Sales and use taxes 2,467,529 $
Investment earnings 43,429
Other revenue 434,260
Total revenues $ 2,945,218
Expenditures:

Salary 981,925 $
Benefits 859,256
Equipment 7,718
Insurance 81,196
Professional services 254,964
Administration expense 4,986
Total expenditures $ 2,190,045
*This schedule is prepared using the modified accrual basis of accounting.

City of Pinole
2014 Measure S Fund
Pinole, California
Independent Accountant’s Report
on Agreed-Upon Procedures Applied
to Schedule of Measure S Revenues and Expenditures
For the Year Ended June 30, 2023

200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707
INDEPENDENT ACCOUNTANT’S REPORT

ON APPLYING AGREED-UPON PROCEDURES
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 accompanying Schedule of Measure S Revenues and Expenditures (the “Schedule”) of the City of Pinole, California (the “City”) for the year ended June 30, 2023. The City is responsible for the Schedule.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of meeting the requirements of City Ordinance 2014-03, Amending Chapter 3.30 of the City’s Municipal Code, “Transactions and Use Tax” To Levy a One-Half Cent Transactions and Use Tax. The City has agreed to and acknowledged that the procedures performed are appropriate for its purposes. 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. Obtained and reviewed City Ordinance 2014-03, Amending Chapter 3.30 of the City’s Municipal Code, “Transactions and Use Tax” To Levy a One-Half Cent Transactions and Use Tax”.

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

2. Obtained a Schedule of Measure S Revenues and Expenditures for the fiscal year and agreed totals reported on the schedule to the City’s trial balance.

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

3. 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.

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

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

To the Honorable Mayor and Members of the City Council
of the City of Pinole

2 5. Review salary reports and expenditure details to verify that the funds expensed complied with the purpose that was specified to the registered voters of the City through election materials and City resolutions that were distributed to the voters.

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

6. 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.

7. Report any findings regarding compliance with Chapter 3.30 of the City’s Municipal Code as a result of the procedures performed.

Finding: No exceptions were noted.

We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respective on the accompanying schedule. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters 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.

Santa Ana, California
February 27, 2024

City of Pinole
Measure S Fund
Schedule of Revenues and Expenditures
For the Year Ended June 30, 2023
3 Revenues:

Sales and use taxes 2,464,819 $
Investment earnings 101,631
Other revenue 178,823
Total revenues $ 2,745,273
Expenditures:

Salary 365,856 $
Benefits 241,251
Equipment 1,021,031
Insurance 19,190
Professional services 301,287
Administration expense 338,663
Total expenditures $ 2,287,278
*This schedule is prepared using the modified accrual basis of accounting

City of Pinole
Pinole, California
Independent Accountants’ Report on
Agreed-Upon Procedures Applied to
Appropriations Limit Schedule
For the Year Ended June 30, 2023

200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707
INDEPENDENT ACCOUNTANTS’ REPORT ON

APPLYING AGREED-UPON PROCEDURES
To the Honorable Mayor and Members of City Council
of the City of Pinole
Pinole, California
We have performed the procedures enumerated below on the accompanying Appropriations Limit Schedule of the City of Pinole, California (the “City”) for the year ended June 30, 2023. The management at the City is responsible for the Appropriations Limit Schedule.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of meeting the requirements set forth in Section 1.5 of Article XIII-B of the California Constitution. The procedures, which were suggested by the League of California Cities and presented in the publication entitled Agreed-upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution were performed solely to assist you in meeting the requirements. 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. We obtained the completed worksheets used by the City to calculate its appropriations limit for the year ended June 30, 2023, and compared the limit and annual calculation factors that were adopted by resolution of City Council. We also compared the population and inflation options that were selected by a recorded vote of the City Council.

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

2. For the accompanying Appropriations Limit Schedule, we added the prior year’s limit to the total adjustments, and compared the resulting amount to the current year’s limit.

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

3. We compared the current year information presented in the accompanying Appropriations Limit Schedule to corresponding information in worksheets used by the City.

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

4. We compared the appropriations limit presented in the accompanying Appropriations Limit Schedule to the appropriations limit adopted by the City Council.

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

To the Honorable Mayor and Members of 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 American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respective on the accompanying Appropriation Limit Schedule. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters 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. However, this report is a matter of public record and its distribution is not limited.

Santa Ana, California
March 6, 2024

City of Pinole
Appropriations Limit Schedule
For the Year Ended June 30, 2023
3 Amount Source
A. Appropriations Limit from FY 2021-2022 147,186,126 $ B. Adjustment Factors:

1. Growth in County Population 0.9959 State Department of Finance

2. California per Capita Personal Income Growth 1.0755 State Department of Finance

3. Adjustment Factor 1.0711 B1*B2
C. Annual Adjustment Increase 10,463,528 A * (B3 - 1)
D. Other Adjustments:
1) Loss reponsibility (-) – N/A
2) Transfer to private (-) – N/A
3) Transfer to fees (-) – N/A
4) Assumed responsibility (-) – N/A
E. Total Adjustments 10,463,528 (C+D)
F. Appropriations Limit FY 2022-2023 157,649,654 $ (A+E) Prior Year appropriations
limit adopted by the City
See accompanying Notes to Appropriations Limit Schedule.

City of Pinole
Notes to Appropriations Limit Schedule
For the Year Ended June 30, 2023
4 Note 1 – Purpose of Limited Procedures Review
Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), California governmental agencies are restricted as to the amount of annual appropriations from proceeds of taxes. Effective for years beginning on or after July 1, 1990, under Section 1.5 of Article XIIIB, the annual calculation of the appropriations limit is subject to a limited procedures review in connection with the annual audit.

Note 2 – Method of Calculation
Under Section 10.5 of Article XIIIB, for fiscal years beginning on or after July 1, 1990, the appropriations limit is required to be calculated based on the limit for the fiscal year 1986-87, adjusted for the inflation and population factors discussed in Notes 3 and 4 below.

Note 3 – Population Factors
A California governmental agency may use as its population factor either the annual percentage change of the jurisdiction’s own population or the annual percentage change in population of the county where the jurisdiction is located. The factor adopted by the City for the year 2022-2023 represents the annual percentage change in population for the County.

Note 4 – Inflation Factors
A California governmental agency may use as its inflation factor either the annual percentage change in the 4th quarter per capita personal income (which percentage is supplied by the State Department of Finance) or the percentage change in the local assessment roll from the preceding year due to the change of local nonresidential construction. The factor adopted by the City for the year 2022-2023 represents the percentage change in California per capita personal income.

Note 5 – Other Adjustments
A California government agency may be required to adjust its appropriations limit when certain events occur, such as the transfer of responsibility for municipal services to, or from, another government agency or private entity. The City had no such adjustments for the year 2022-2023.

City of Pinole
Pinole, California
Independent Accountants’ Report on
Agreed-Upon Procedures Applied to
Appropriations Limit Schedule
For the Year Ending June 30, 2024

200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707
INDEPENDENT ACCOUNTANTS’ REPORT ON

APPLYING AGREED-UPON PROCEDURES
To the Honorable Mayor and Members of City Council
of the City of Pinole
Pinole, California
We have performed the procedures enumerated below on the accompanying Appropriations Limit Schedule of the City of Pinole, California (the “City”) for the year ending June 30, 2024. The management at the City is responsible for the Appropriations Limit Schedule.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of meeting the requirements set forth in Section 1.5 of Article XIII-B of the California Constitution. The procedures, which were suggested by the League of California Cities and presented in the publication entitled Agreed-upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution were performed solely to assist you in meeting the requirements. 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. We obtained the completed worksheets used by the City to calculate its appropriations limit for the year ending June 30, 2024, and compared the limit and annual calculation factors that were adopted by resolution of City Council. We also compared the population and inflation options that were selected by a recorded vote of the City Council.

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

2. For the accompanying Appropriations Limit Schedule, we added the prior year’s limit to the total adjustments, and compared the resulting amount to the current year’s limit.

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

3. We compared the current year information presented in the accompanying Appropriations Limit Schedule to corresponding information in worksheets used by the City.

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

4. We compared the appropriations limit presented in the accompanying Appropriations Limit Schedule to the appropriations limit adopted by the City Council.

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

To the Honorable Mayor and Members of 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 American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respective on the accompanying Appropriation Limit Schedule. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters 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. However, this report is a matter of public record and its distribution is not limited.

Santa Ana, California
March 6, 2024

City of Pinole
Appropriations Limit Schedule
For the Year Ending June 30, 2024
3 Amount Source
A. Appropriations Limit FY 2022-2023 157,649,654 $ Prior year B. Adjustment Factors:
1) Growth in County Population 0.9964 State Department of Finance 2) California per Capita Personal Income Growth 1.0444 State Department of Finance 3) Adjustment Factor 1.0406 (B1*B2)
C. Annual Adjustment Increase 6,406,907 [A*(B3-1)]
D. Other Adjustments:
1) Loss responsibility (-) - N/A
2) Transfer to private (-) - N/A
3) Transfer to fees (-) - N/A
4) Assumed responsibility (+) - N/A
E. Total Adjustments 6,406,907 (C+D)
F. Appropriations Limit FY 2023-2024 164,056,561 $ (A+E) See accompanying Notes to Appropriations Limit Schedule.

City of Pinole
Notes to Appropriations Limit Schedule
For the Year Ending June 30, 2024
4 Note 1 – Purpose of Limited Procedures Review
Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), California governmental agencies are restricted as to the amount of annual appropriations from proceeds of taxes. Effective for years beginning on or after July 1, 1990, under Section 1.5 of Article XIIIB, the annual calculation of the appropriations limit is subject to a limited procedures review in connection with the annual audit.

Note 2 – Method of Calculation
Under Section 10.5 of Article XIIIB, for fiscal years beginning on or after July 1, 1990, the appropriations limit is required to be calculated based on the limit for the fiscal year 1986-87, adjusted for the inflation and population factors discussed in Notes 3 and 4 below.

Note 3 – Population Factors
A California governmental agency may use as its population factor either the annual percentage change of the jurisdiction’s own population or the annual percentage change in population of the county where the jurisdiction is located. The factor adopted by the City for the year 2023-2024 represents the annual percentage change in population for the County.

Note 4 – Inflation Factors
A California governmental agency may use as its inflation factor either the annual percentage change in the 4th quarter per capita personal income (which percentage is supplied by the State Department of Finance) or the percentage change in the local assessment roll from the preceding year due to the change of local nonresidential construction. The factor adopted by the City for the year 2023-2024 represents the percentage change in California per capita personal income.

Note 5 – Other Adjustments
A California government agency may be required to adjust its appropriations limit when certain events occur, such as the transfer of responsibility for municipal services to, or from, another government agency or private entity. The City had no such adjustments for the year 2023-2024.