Pinole City Council
January 21, 2025

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
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, 2022
Measurement date June 30, 2023
Measurement period July 1, 2022 to June 30, 2023
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, 2023
Measurement date June 30, 2023
Measurement period July 1, 2022 to June 30, 2023

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
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 assets) 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 assets) 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.

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.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
61 Note 1 – Summary of Significant Accounting Policies (Continued) R. Net Position and Fund Balances (Continued)
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.

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.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
62 Note 1 – Summary of Significant Accounting Policies (Continued) S. Spending Policy (Continued)
Governmental Fund Financial Statements (Continued)
 Restricted
 Committed
 Assigned
 Unassigned
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, 2024
63 Note 1 – Summary of Significant Accounting Policies (Continued) W. Implementation of Governmental Accounting Standards Board (GASB) Pronouncements 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. Implementation of this Statement had a moderate effect on the City’s financial statements for the fiscal year ended June 30, 2024.

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

GASB Statement No. 101 – 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.

GASB Statement No. 102 – In December 2023, GASB issued Statement No. 102, Certain Risk Disclosures. This Statement requires a government to assess whether a concentration or constraint makes the primary government reporting unit or other reporting units that report a liability for revenue debt vulnerable to the risk of a substantial impact. Additionally, this Statement requires a government to assess whether an event or events associated with a concentration or constraint that could cause the substantial impact have occurred, have begun to occur, or are more likely than not to begin to occur within 12 months of the date the financial statements are issued.

Application of this statement is effective for the City’s fiscal year ending June 30, 2025.

GASB Statement No. 103 – In April 2024, GASB issued Statement No. 103, Financial Reporting Model Improvements. The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. Application of this statement is effective for the City’s fiscal year ending June 30, 2026.

GASB Statement No. 104 – In September 2024, GASB issued Statement No. 104, Disclosure of Certain Capital Assets. This Statement requires certain types of capital assets to be disclosed separately in the capital assets note disclosures required by Statement 34. Lease assets recognized in accordance with Statement No. 87, Leases, and intangible right-to-use assets recognized in accordance with Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, should be disclosed separately by major class of underlying asset in the capital assets note disclosures. Subscription assets recognized in accordance with Statement No. 96, Subscription-Based Information Technology Arrangements, also should be separately disclosed. In addition, this Statement requires intangible assets other than those three types to be disclosed separately by major class.

Application of this statement is effective for the City’s fiscal year ending June 30, 2026.

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.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
64 Note 2 – Cash and Investments (Continued)
A. Summary of Cash and Investments
Cash and investments as of June 30, 2024 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 $ 30,869,394 $ 19,001,498 $ 49,870,892 $ 1,918,004 $ 51,788,896 Cash and investments with fiscal agents 15,816,975 1,089,183 16,906,158 16,906,158 - Total cash and investments $ 46,686,369 $ 20,090,681 $ 66,777,050 $ 1,918,004 $ 68,695,054 Government-Wide Statement of Net Position
Cash and investments for the City at June 30, 2024, consisted of the following:

Cash:

Cash on hand 1,920 $
Deposits with financial institution 3,436,965
Total cash 3,438,885
Investments:

Local Agency Investment funds 29,172,353
CalTrust 3,427,211
Money Market Fund 12,477,790
Corporate Notes 940,090
Federal Agency Securities 478,135
Negotiable Certificates of Deposit 2,943,637
Restricted cash and investment with PARS 15,816,953
Total investments 65,256,169
Total cash and investments $ 68,695,054
B. Deposits
The carrying amount of the City’s cash deposit was $3,436,965 at June 30, 2024. Balance before reconciling amounts was the amount of $3,938,260 at June 30, 2024. The City has waived collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The remaining amount was collateralized with securities pledged by the pledging financial institution in the City’s name.

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

The market value of pledged securities must equal at least 110% of the City’s cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits.

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.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
65 Note 2 – Cash and Investments (Continued)
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, 2024
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, 2024:

Investments measured by fair value level: Total Level 2 Federal Agency Securities $ 478,135 $ 478,135
Corporate Notes 940,090 940,090
Negotiable Certificates of Deposits 2,943,637 2,943,637 Total investments by fair value level 4,361,862 $ 4,361,862 Investments not subject to the fair value hierarchy:

Local Agency Investment Fund 29,172,353
CalTrust 3,427,211
Restricted cash and investment with PARS 15,816,953
Money market mutual funds 12,477,790
Total investments not subject to the fair value hierarchy 60,894,307 Total investments $ 65,256,169
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, 2024
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, 2024:
12 Months 13 to 24 More than 24
Investment Type or less Months Months Total
Held by City:

Money Market 12,477,790 $ - $ $ 12,477,790 - $
Local Agency Investment Fund 29,172,353 - 29,172,353 -
Caltrust 3,427,211 - 3,427,211 -
Securities of U.S. Government:

Federal agency securities 478,135 - 478,135 -
Corporate notes - 940,090 - 940,090
Negotiable certificates of deposits 1,949,927 745,074 248,636 2,943,637 Held by Trustees:

Restricted cash & investments with PARS 15,816,953 - 15,816,953 - Total investments $ 63,322,369 $ 745,074 $ 1,188,726 $ 65,256,169 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
S&P Rating
as of June 30,
2024
Held by City:

Securities of U.S. Government:

Federal agency securities 478,135 $ AA+
Corporate notes 940,090 AA+
Total Rated Investments 1,418,225
Not rated:

Local Agency Investment Fund 29,172,353
CalTrust 3,427,211
Money market fund 12,477,790
Negotiable certificates of deposits 2,943,637
Restricted Cash-PARS 15,816,953
Total investments $ 65,256,169

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
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, 2024.

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 Local Agency Investment Fund (LAIF)
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. As of June 30, 2024, the City had $29,172,353 invested in LAIF. 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, 2024, were:

Housing Rehabilitation $ 29,929
First time Home-Buyer 233,221
Bridge Housing Loan 1,076,908
Alvarez Court 1,891,538
Eastbluff Apartment Loan 1,096,203
811 San Pablo Ave 4,380,000
Subtotal 8,707,799
Less:Allowance for uncollectible loans (4,327,798)
Total $ 4,380,001
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, 2024.

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, 2024 was $233,221.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
69 Note 3 – Notes Receivable (Continued)
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, 2024, the outstanding balance was $1,076,908.

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, 2024, the total outstanding balance was $1,891,538.

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, 2024, the outstanding balance was $1,096,203.

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, 2024, 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, 2024.

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 to calculate the net present value of the lease receivable ranged from 1.39% to 2%.

For the fiscal year ended June 30, 2024, the City recognized $91,444 and $8,548 in lease revenue and interest income, respectively, and the outstanding net present value of the lease receivable amount is $564,381.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
70 Note 4 – Lease Receivables (Continued)
A summary of changes in lease receivable for the governmental activities for the year ended June 30, 2024 is as follows:

Balance Balance Due within Due in More
July 1, 2023 Additions Deletions June 30, 2024 One Year Than One Year Leases receivable $ 644,060 $ (79,679) - $ $ 564,381 $ 92,178 $ 472,203 Classification
The future payments on the leases as of June 30, 2024 were as follows:

Year Ending
June 30, Principal Interest Total
2025 $ 92,178 $ 7,434 $ 99,612
2026 87,818 6,012 93,830
2027 90,234 4,770 95,004
2028 91,496 3,507 95,003
2029 92,776 2,227 95,003
2030-2032 109,879 957 110,836
Total $ 564,381 $ 24,907 $ 589,288
The amortization of deferred inflow-lease related future revenue were as follow:

Year Ending Amortization
June 30, Schedule
2025 86,045 $
2026 86,045
2027 86,045
2028 86,045
2029 86,045
2030-2032 100,387
Total $ 530,612
Note 5 – Land Held For Resale
At June 30, 2024, 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, 2024
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 2024:

Balance Balance
July 1, 2023 Additions Deletions Transfers June 30, 2024 Capital assets, not being depreciated
Land $ 6,313,621 $ - $ - $ 6,313,621 - $
Construction in progress 1,649,680 1,400,187 (198,966) - 2,850,901 Total capital assets, not being depreciated 7,963,301 1,400,187 (198,966) - 9,164,522 Capital assets, being depreciated
Building and improvements 16,040,401 70,070 (8,863) 55,321 16,156,929 Machinery, equipment and vehicles 8,725,678 597,545 - 9,323,223 - Infrastructure 61,078,899 221 - 143,645 61,222,765
Total capital assets, being depreciated 85,844,978 667,836 (8,863) 198,966 86,702,917 Accumulated depreciation:

Building and improvements (11,625,113) (255,116) - (11,880,229) - Machinery, equipment and vehicles (7,030,760) (560,418) 8,863 (7,582,315) - Infrastructure (44,944,356) (734,595) - (45,678,951) -
Total accumulated depreciation (63,600,229) (1,550,129) 8,863 (65,141,495) - Total capital assets, being depreciated, net 22,244,749 (882,293) - 198,966 21,561,422 Right to use lease assets, being amortized
Machinery, equipment and vehicles 103,931 - - - 103,931 Total right to use lease assets, being amortized 103,931 - - - 103,931 Accumulated amortization:

Machinery, equipment and vehicles (48,340) (25,580) - - (73,920) Total accumulated amortization (48,340) (25,580) - - (73,920) Total right to use assets, being amortized, net 55,591 (25,580) - - 30,011 Subscription assets, being amortized 666,105 489,198 - 1,155,303 - Less accumulated amortization (472,845) (204,824) - (677,669) - Total subscription assets, net 193,260 284,374 - - 477,634 Total capital assets, net $ 30,456,901 $ 776,688 $ - $ 31,233,589 - $ Depreciation/amortization expense for capital assets was charged to functions as follows:

General government $ 286,692
Public safety 290,992
Public works 1,115,746
Recreation 81,217
Community development 5,886
Total depreciation/amortization expense $ 1,780,533

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
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, 2024:

Balance Balance
July 1, 2023* Additions Deletions Transfers June 30, 2024 Capital assets, not being depreciated
Construction in progress $ 124,930 $ 242,708 $ - $ 367,638 - $ Total capital assets, not being depreciated 124,930 242,708 - 367,638 - Capital assets, being depreciated
Building and improvements 40,857,072 - - 40,857,072 -
Equipment 1,229,931 - - 1,229,931 -
Vehicles 920,362 (131,162) - 789,200 -
Infrastructure 7,474,337 - - 7,474,337 -
Total capital assets, being depreciated 50,481,702 (131,162) - 50,350,540 - Accumulated depreciation:

Building and improvements (7,057,028) (798,002) - (7,855,030) - Equipment (909,494) (15,161) - (924,655) -
Vehicles (467,368) (129,161) 131,162 (465,367) -
Infrastructure (5,047,937) (81,033) - (5,128,970) -
Total accumulated depreciation (13,481,827) (1,023,357) 131,162 (14,374,022) - Total capital assets, being depreciated, net 36,999,875 (1,023,357) - 35,976,518 - Total capital assets, net $ 37,124,805 $ (780,649) $ - $ 36,344,156 - $ *Certain prior year accumulated depreciation amounts have been reclassified for consistency with the current year presentation.

These reclassifications had no effect on the reported results of operations or total accumulated depreciation.

Depreciation expense for capital assets was charged to the wastewater fund in amount of $1,023,357 for the year ended June 30, 2024.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
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, 2024:

Balance Balance Due within Due in More
July 1, 2023 Additions Retirements June 30, 2024 One Year Than One Year Long-term liabilities
2006 Pension Obligation Bonds 2,297,299 $ $ (207,790) - $ $ 2,089,509 $ 203,321 $ 1,886,188 Leases payable: 56,609 (25,633) - 30,976 26,219 4,757
Subscription payable: 176,570 126,215 (103,386) 199,399 85,994 113,405 Total long-term debts 2,530,478 126,215 (336,809) 2,319,884 315,534 2,004,350 Claims payable 28,825 5,317,205 (5,324,378) 21,652 21,652 - Compensated absences 819,967 833,387 (807,546) 845,808 277,451 568,357 Total long-term liabilities $ 3,379,270 $ 6,276,807 $ (6,468,733) $ 3,187,344 $ 614,637 $ 2,572,707 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, 2024, the principal balance of outstanding bonds was $2,089,509.

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
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 180,806 539,194 720,000
2029-2033 830,625 3,134,375 3,965,000
2034-2036 301,240 1,473,760 1,775,000
Total $ 2,089,509 $ 7,030,492 $ 9,120,001
Leases 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, 2024, the outstanding balance of the leases is $30,976.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
74 Note 7 – Long-Term Liabilities (Continued)
A. Governmental Activities (Continued)
Leases payable (Continued)
Principal and interest payments to maturity at June 30, 2024 are as follows:

Year Ending
June 30, Principal Interest Total
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 $ 30,976 $ 1,134 $ 32,110
Subscription payable
The City entered into subscription agreements with various vendors for software. The terms of the agreements are ranging from 36 months to 84 months. The calculated interest rates range from 6.47% to 6.63%. As of June 30, 2024, the capitalized right-to-use assets related to SBITAs were $477,634 and the total subscription liability was $199,399, of which $85,994 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
2025 85,994 $ 12,724 $ 98,718 $
2026 72,683 7,710 80,393
2027 29,493 2,754 32,247
2028 11,229 772 12,001
Total $ 199,399 $ 23,960 $ 223,359
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, 2024:

Balance Balance Due within Due in More
July 01, 2023 Additions Retirements June 30, 2024 One Year Than One Year Public borrowings:
2016 Wastewater Revenue Refunding Bond 5,980,000 $ $ (347,000) - $ $ 5,633,000 $ 362,000 $ 5,271,000 2016 Clean Water State Revolving Fund 23,426,566 (690,932) - 22,735,634 702,678 22,032,956 Total bonds payable 29,406,566 (1,037,932) - 28,368,634 1,064,678 27,303,956 Compensated absences 178,271 185,674 (148,776) 215,169 46,835 168,334 Total long-term liabilities $ 29,584,837 $ 185,674 $ (1,186,708) $ 28,583,803 $ 1,111,513 $ 27,472,290 Classification

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
75 Note 7 – Long-Term Liabilities (Continued)
B. Business-Type Activities (Continued)
2016 Wastewater Revenue Refunding Bonds
On June 30, 2016, the City 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 semiannually 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, 2024, the principal balance of outstanding bonds was $5,633,000.

Future debt service payments are as follows:

Year Ending
June 30, Principal Interest Total
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 404,000 115,670 519,670
2030-2034 2,217,000 389,090 2,606,090
2035-2037 1,502,000 67,378 1,569,378
Total $ 1,149,336 5,633,000 $ 6,782,336 $
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, 2024, the total debt outstanding on the loan is $22,735,634.

Future debt service payments are as follows:

Year Ending
June 30, Principal Interest Total
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 751,693 337,491 1,089,184
2030-2034 3,954,545 1,491,375 5,445,920
2035-2039 4,302,306 1,143,614 5,445,920
2040-2044 4,680,649 765,271 5,445,920
2045-2049 5,092,263 353,657 5,445,920
2050 1,070,977 18,207 1,089,184
Total $ 5,583,150 22,735,634 $ 28,318,784 $

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
76 Note 8 – Interfund Transactions
A. Interfund Transfers to/from Other Funds
Transfers between funds during the fiscal year ended June 30, 2024 were as follows:

Transfers In General Fund1,2 Total
General Fund $ 3,146,313 $ 3,146,313
Building & Planning Fund 67,000 67,000
Nonmajor Governmental Funds 2,228,594 2,228,594
Total 5,441,907 $ $ 5,441,907
Transfers Out
1 Pension Trust contribution to the General Fund and General fund contribution to the General Reserve. 2 General Fund and Measure S Fund support of recreation, PCTV, and certain capital projects: General fund contribution to community development information system.

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, 2024 consisted of the following:

Due From Due To Description Amount
General Fund Storm Water Fund Deficit cash balance $ 211,640 General Fund Building and Planning Fund Deficit cash balance 2,323,391 General Fund Public Works Capital Projects Funds Deficit cash balance 82,515 General Fund Cable Access TV Deficit cash balance 19,140 Total $ 2,636,686
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, 2024
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, 2024, 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% 7.750%
Required employer contribution rates 14.060% 7.680%
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% 2.700% Required employee contribution rates 9.00% 13.750% 13.750% Required employer contribution rates 24.150% 13.540% 13.540% Final Annual Compensation 1 year 3 years 3 years
Miscellaneous Cost- Sharing Plans
Safety Cost-Sharing Plans
Employees Covered
At June 30, 2023, the measurement date, the following employees were covered by the benefit terms for the Plan:

Miscellaneous Plans Safety Plans
Active employees 74 26
Transferred and terminated employees 97 54
Retired employees and beneficiaries 128 108
Total 299 188

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
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, 2023, the total pension liability was determined by rolling forward the June 30, 2022 total pension liability. The June 30, 2023 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%

2.50%
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
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, 2024
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 Class Asset Real Return
Public equity 42.00% 4.54%
Private equity 13.00% 3.84%
Fixed income 30.00% 7.28%
Real assets 15.00% 0.27%
Private debt 5.00% 0.50%
Strategic leverage -5.00% -59.00%
100.00%
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 $ 27,273,574 $ 19,140,570 $ 12,446,409 Safety Plan 38,607,343 26,305,611 16,248,070
$ 65,880,917 $ 45,446,181 $ 28,694,479
Plan's Aggregate Net Pension Liability/(Asset)

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
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: 6/30/22 (Valuation date) 56,951,625 $ 38,857,646 $ 18,093,979 $ Balance at: 6/30/23 (Measurement date) 60,135,008 40,994,438 19,140,570 Net Changes during 2022-2023 3,183,383 2,136,792 1,046,591 Safety
Balance at: 6/30/22 (Valuation date) 85,101,396 $ 60,886,598 $ 24,214,798 $ Balance at: 6/30/23 (Measurement date) 89,674,397 63,368,786 26,305,611 Net Changes during 2022-2023 4,573,001 2,482,188 2,090,813 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, 2023, 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, 2022 rolled forward to June 30, 2023 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, 2022 and 2023 was as follows:

Miscellaneous Safety
Proportion June 30, 2023 0.38669% 0.35239%
Proportion June 30, 2024 0.38278% 0.35192%
Change - Increase (Decrease) -0.00391% -0.00047%
For the year ended June 30, 2024, the City recognized pension expense in the amounts of $2,250,481 and $4,292,423 for the miscellaneous plan and safety plan, respectively, for a total of $6,542,904.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
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, 2023, 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 2,209,061 $ - $ 2,401,947 $ - $
Difference between expected and actual
experience 977,804 (151,681) 1,931,317 (165,341)
Changes in assumptions 1,155,602 - 1,535,231 -
Differences difference between projected
and actual investment earnings 3,099,031 - 3,599,916 -
Adjustment due to differences in proportions - (1,305,969) 837,057 - Difference between the City's contributions
and proportionate share of contributions 333,529 (58,184) 43,678 (1,033,541) Total $ (1,515,834) 7,775,027 $ 10,349,146 $ (1,198,882) $ Miscellaneous Plan Safety Plan
$2,209,061 and $2,401,947 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, 2025. 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
2025 $ 872,723 $ 2,172,653
2026 667,120 1,544,806
2027 2,421,365 2,930,378
2028 88,924 100,480
2029 - -
Thereafter - -
$ 4,050,132 $ 6,748,317
Deferred Outflows/(Inflows) of Resources

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
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 $ 1,363,421 $ 151,491 $ 1,514,912 Difference between expected and actual experience 2,492,725 276,969 2,769,694 Changes in assumptions 2,745,853 305,095 3,050,948
Total deferred outflows of resources $ 6,601,999 $ 733,555 $ 7,335,554 Total OPEB liability:

Total OPEB liability, due within one year $ 1,460,008 $ 162,223 $ 1,622,231 Total OPEB liability, due in more than one year 30,018,712 3,335,413 33,354,125 Total OPEB liability $ 31,478,720 $ 3,497,636 $ 34,976,356 Deferred inflows of resources:

Difference between expected and actual experience $ 2,286,362 $ 254,040 $ 2,540,402 Changes in assumptions 10,187,428 1,131,937 11,319,365
Total deferred inflows of resources $ 12,473,790 $ 1,385,977 $ 13,859,767 OPEB Expense $ 1,041,263 $ 115,696 $ 1,156,959
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, 2023, measurement date (June 30, 2023 valuation date), the following current and former employees were covered by the benefit terms under the Plan:

Active employees 102
Retired employees and beneficiaries 104
Total 206
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, 2024
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, 2023, and the total OPEB liability was determined by an actuarial valuation as of June 30, 2023. The total OPEB liability in the June 30, 2023 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement date.

Actuarial Cost Method
Valuation Date June 30, 2023
Discount Rate 3.86%
Inflation
Salary Increases
Investment rate of return
Healthcare Trend Rate
Mortality rate
Entry-Age Normal, Level Percentage of Salary

7.4% (Non-Medicare) / 4.2% (Medicare) in 2023, decreasing gradually to an ultimate rate of 4.14% by 2075

2.30%
Base salary increases in year one: 2.80%
Base salary increases in subsequent years: 2.80%
Additional merit-based increases based on CalPERS

5.10%
Derived using CalPERS' Membership Date for all Funds

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
84 Note 10 – Other Post-Employment Benefits (OPEB) (Continued) F. Discount Rate
The discount rate used to measure the total OPEB liability was 3.86%. 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.

G. Changes in the Total OPEB Liability
Total OPEB
Liability
Balance at June 30, 2022 (Measurement Date) 36,286,025 $ Changes Recognized for the Measurement Period:

Service Cost 1,435,271
Interest on the total OPEB liability 1,311,164
Difference between expected and actual experience 3,334,938 Changes of assumptions (6,025,520)
Implicit Subsidy Credit (144,415)
Benefit payments (1,221,107)
Net Changes during July 1, 2022 to June 30, 2023 (1,309,669) Balance at June 30, 2023 (Measurement Date) 34,976,356 $ 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%
(2.86%) Rate (3.86%) (4.86%)
$ 40,098,095 $ 34,976,356 $ 30,853,392
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%
(6.40%) (7.40%) (8.40%)
$ 34,976,356 30,577,343 $ 40,466,766 $
Plan's Total OPEB Liability

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
85 Note 10 – Other Post-Employment Benefits (OPEB) (Continued) 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.

I. OPEB Expenses and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2024, the City recognized OPEB expense of $1,156,959. For the fiscal year ended June 30, 2024, 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 $ 1,514,912 $ -
Difference between expected and actual experience 2,769,694 (2,540,402) Changes of assumptions 3,050,948 (11,319,365)
Total $ 7,335,554 $ (13,859,767)
The $1,514,912 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2023 measurement date will be recognized as a reduction of the total OPEB liability during the fiscal year ending June 30, 2025. 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
2025 $ (1,419,181)
2026 (1,372,997)
2027 (2,778,308)
2028 (2,058,212)
2029 (410,427)
Thereafter -
$ (8,039,125)

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
86 Note 11 – Deferred Compensation Plan
A. 457 Plan
The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The Plan is available to full-time employees. The Internal Revenue Service regulations allow an employer to designate a 457(b) Deferred Compensation Plan as an alternative to social security. The plan permits employees to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) held in trust by Mission Square, the City’s third-party administrator, for the exclusive benefit of the plan participants and their beneficiaries as prescribed by Internal Revenue Code Section 457(g). Accordingly, these assets have been excluded from the City’s Annual Comprehensive Financial Report.

In the year 2021, the City evaluated the requirements of GASB Statement No. 84, Fiduciary Activities and GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans and determined that plan didn’t meet the criteria to be reported as a fiduciary activity, as required by the above mentioned GASB Statements. Moreover, the plan is classified as other employee benefits for financial reporting purposes.

As of June 30, 2024, the amount held by the Trustee for the City employees is $9,106,471.

Note 12 – Fund Balance
GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions provides more clearly defined fund balance categories to make the nature and extent of the constraints placed on a government’s fund balances more transparent.

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

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

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

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
87 Note 12 – Fund Balance (Continued)
The accounting policies of the City consider restricted fund balance to have been spent first when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available. Similarly, when an expenditure is incurred for purposes for which amounts in any of the unrestricted classifications of fund balance could be used, the City considers committed amounts to be reduced first, followed by assigned amounts, and unassigned amounts.

The City classifies fund balances, as shown on the Balance Sheet – Governmental Funds, as follows as of June 30, 2024:

Housing Building Non-major
General Programs & Planning Governmental
Fund Fund Fund Funds Total
Nonspendable
Prepaid items 18,627 $ - $ - $ 320,552 $ 339,179 $
Inventory 15,360 - - - 15,360
Total nonspendable - 33,987 320,552 - 354,539
Restricted
Housing Redevelopment 8,267,771 - - 8,267,771 -
Real estate maintenance 133,438 - - 133,438 -
Public safety - - 1,044,309 - 1,044,309
Growth impact - - 3,503,560 - 3,503,560
Gas Tax - - 1,589,060 - 1,589,060
Parkland Dedication - - - 116 116
Measure C - - 2,041,642 - 2,041,642
Refuse Management - - - 31,420 31,420
Community development - - - 6,102 6,102
Solid Waste - - 2,915,814 - 2,915,814
CASP Certification - - - 49,439 49,439
Rate Stabilization - - 216,047 - 216,047
Pension Fund 13,585,182 - - 13,585,182 -
Total restricted 13,718,620 8,267,771 11,397,509 - 33,383,900 Committed
General reserve 10,266,058 - - 10,266,058 -
Equipment reserve 378,780 - - 378,780 -
Emergency reserve 100,000 - - 100,000 -
Total committed 10,744,838 - - 10,744,838 -
Assigned
Capital projects - - 3,856,760 - 3,856,760
Total assigned - - 3,856,760 - 3,856,760
Unassigned (deficit) 7,841,433 (2,226,680) - (142,430) 5,472,323 Total fund balances $ 32,338,878 $ 8,267,771 $ (2,226,680) $ 15,432,391 $ 53,812,360

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
88 Note 13 – Risk Management
The City manages risk of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters by participating in the public entity risk pools described below and by retaining certain risks.

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

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

Type of Coverage (Deductible) Coverage Limits
Liability ($25,000) including errors and omissions for Public Officials $ 34,500,000 All Risk Fire and Property ($25,000) 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, 2024, the City contributed $1,866,922 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 14 – Stewardship, Compliance, and Accountability
A. Deficit Fund Balances/Net Position
As of June 30, 2024, the following funds had a fund deficit:

Fund Fund Type Deficit
Recreation Fund Special Revenue Fund $ (13,804)
Building & Planning Fund Special Revenue Fund (2,226,680) Storm Water Special Revenue Fund (123,626)

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
89 Note 14 – Stewardship, Compliance, and Accountability (Continued) B. Expenditures in Excess of Appropriations
The following funds had expenditures in excess of appropriations:

Excess Expenditures
Fund Appropriations Expenditures over Appropriations
Major Governmental Funds:

General Fund
General administration $ 4,473,552 $ 4,521,144 $ (47,592) Public safety 16,672,418 17,686,177 (1,013,759)
Debt Service - Principal 207,790 336,809 (129,019)
Debt Service - Interest and fiscal charges 403,317 418,148 (14,831) Nonmajor Governmental Funds:

Gas Tax Special Revenue Fund
Public works 547,941 556,732 (8,791)
Police Special Revenue Fund
Public safety 534,703 531,504 3,199
Recreation Special Revenue Fund
General administration - 7,338 (7,338)
CASP Certification & Training Special Revenue Fund
Community development - 1,040 (1,040)
Note 15 – Successor Agency Private Purpose Trust for Assets of Former Redevelopment Agency The Pinole Redevelopment Agency (the "former RDA") was formed in 1972 to finance redevelopment projects in the Agency of Pinole pursuant to the State of California Health and Safety Code, Section 3300. On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 that provided for the dissolution of all redevelopment agencies in the State of California as of February 1, 2012, at which time the City of Pinole elected to take over as the Successor Agency (the "Agency").

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

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
90 Note 15 – Successor Agency Private Purpose Trust for Assets of Former Redevelopment Agency (Continued) A. Capital Assets
Capital asset activity for the fiscal year ended June 30, 2024 was as follows:

Balance Balance
July 1, 2023 Additions June 30, 2024
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 (3,708,818) (188,954) (3,897,772) Infrastructure (1,883,432) (66,716) (1,950,148)
Total accumulated depreciation (5,592,250) (255,670) (5,847,920) Total capital assets, being depreciated, net 7,218,846 (255,670) 6,963,176 Total capital assets, net $ 9,648,639 $ (255,670) $ 9,392,969 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, 2024:

Balance Debt Debt Balance Due within Due in More
July 1, 2023 Issued Retired June 30, 2024 One Year Than One Year Public borrowings:
2015 Series A Bonds - Successor Agency
Private Purpose Trust 3,570,000 $ - $ (3,570,000) $ - $ - $ - $ Total $ - 3,570,000 $ (3,570,000) $ - $ - $ - $
Classification
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, 2024, the principal balance of outstanding bonds was paid off.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
91 Note 16 – Contingencies and Commitments
The City is subject to litigation arising in the normal course of business. In the opinion of the City Attorney there is no pending litigation which is likely to have a material adverse effect on the financial position of the City.

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

Note 17 – Net Investment in Capital Assets
Net Investment in Capital Assets at June 30, 2024 consisted of the following:

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

Capital assets, nondepreciable 9,164,522 $ 367,638 $
Capital assets, depreciable/amortizable, net 22,069,067 35,976,518 Long-term debt:

Retention payable (30,213) -
Leases payable (30,976) -
Subscription payable (199,399) -
2016 Wastewater Revenue Refunding Bond (5,633,000) -
2016 Clean Water State Revolving Fund (22,735,634) -
Total net investment in capital assets $ 30,973,001 $ 7,975,522 Note 18 – Joint Powers Agreements
The City is a member of the joint powers agency described below. This agency 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.

City of Pinole
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
92 Note 19 – Prior Period Adjustments
The City made following prior period adjustments and restatements as of July 1, 2023:

Governmental
Activities
Net position, as previously reported, at July 1, 2023 21,051,804 $ To correct deposit payable (109,982)
Net position at July 1, 2023, as restated $ 20,941,822
The beginning fund balance at July 1, 2023 of the Building and Planning Fund financial statement was restated as follows:

Fund balance, as previously reported, at July 1, 2023 $ (1,526,215) To correct deposit payable (109,982)
Fund balance at July 1, 2023, as restated $ (1,636,197) Note 20 ‒ Changes to or within the Financial Reporting Entity The Building and Planning Special Revenue Fund was previously reported as a nonmajor fund, but due to the City expending the majority of the funds, the fund now meets the quantitative threshold requiring the fund to be reported as a major fund for the fiscal year ended June 30, 2024. The changes to or within the financial reporting entity resulted in adjustments to and restatements of beginning fund balance, as follows:

June 30,2023 Change to or with the June 30, 2023
As Previously Reported Financial Reporting Entity Prior Period Adjustment As Restated Governmental Funds
Major Funds
General Fund $ 36,555,146 $ - $ 36,555,146 - $
Housing Programs Fund 8,203,719 - 8,203,719 -
Building and Planning Fund - (1,636,197) (1,636,197) -
Non-major Funds 12,435,695 1,636,197 (109,982) 13,961,910 Total Governmental Funds $ 57,194,560 $ - $ (109,982) $ 57,084,578

REQUIRED SUPPLEMENTARY INFORMATION
93

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94

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, 2024
Budget and Budgetary Accounting
95

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96

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

Taxes and assessments 21,362,009 $ 21,312,009 $ 21,918,629 $ 606,620 $ Intergovernmental revenues 112,907 112,907 216,894 103,987 Investment earnings 1,152,468 1,152,468 1,914,632 762,164 Rents and ground leases 126,712 126,712 86,084 (40,628) Charges for services 1,593,468 1,854,468 2,317,447 462,979 Fines, forfeitures and penalties 22,050 22,050 29,716 7,666 Other revenues 24,488 24,488 91,876 67,388
Total revenues 24,605,102 24,394,102 26,575,278 1,970,176 EXPENDITURES:

Current:

General administration 4,305,427 4,473,552 4,521,144 (47,592) Public safety 16,633,697 16,672,418 17,686,177 (1,013,759) Public works 3,151,812 3,582,150 2,583,978 998,172
Recreation 395,886 395,886 325,040 70,846
Community development 625,617 619,883 547,005 72,878
Capital outlay 6,581,387 6,727,217 2,204,005 4,523,212
Debt Service:

Principal 207,790 207,790 336,809 (129,019)
Interest and fiscal charges 403,317 403,317 418,148 (14,831) Total expenditures 33,082,213 32,304,933 28,622,306 4,459,907 Excess (deficiency) of revenues over expenditures (8,477,111) (7,910,831) (2,047,028) 6,430,083 OTHER FINANCING SOURCES (USES):

Proceeds from sale of asset 1,000 1,000 139 (861)
Proceeds from issuance of debt - - 126,215 126,215
Transfers in 3,160,000 3,160,000 3,146,313 (13,687)
Transfers out (4,619,255) (5,455,594) (5,441,907) 13,687 Total other financing sources (uses) (2,294,594) (1,458,255) (2,169,240) 125,354 NET CHANGES IN FUND BALANCE $ (10,771,705) (9,369,086) $ (4,216,268) 6,555,437 $ FUND BALANCE:

Beginning of year 36,555,146
End of year $ 32,338,878
City of Pinole
Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual General Fund
For the Year Ended June 30, 2024
Budgeted Amounts
97

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

Investment earnings 50,000 $ 50,000 $ 188,166 $ 138,166 $ Other revenues 5,000 5,000 13,237 8,237
Total revenues 55,000 55,000 201,403 146,403
EXPENDITURES:

Current:

Community development 339,254 339,254 137,351 201,903
Total expenditures 339,254 339,254 137,351 201,903
NET CHANGES IN FUND BALANCE $ (284,254) (284,254) $ 64,052 348,306 $ FUND BALANCE:

Beginning of year 8,203,719
End of year $ 8,267,771
City of Pinole
Budgetary Comparison Schedule
Housing Programs Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
98

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

Taxes and assessments 477,883 $ 477,883 $ 625,076 $ 147,193 $ Intergovernmental revenues 40,000 109,795 227,421 117,626 Investment earnings 7,000 7,000 (2,735) (9,735)
Charges for services 860,593 860,593 738,480 (122,113)
Fines, forfeitures and penalties 20,000 20,000 32,809 12,809 Other revenues 6,000 6,000 15 (5,985)
Total revenues 1,481,271 1,411,476 1,621,066 139,795
EXPENDITURES:

Current:

Community development 2,147,428 2,287,208 2,278,549 8,659 Capital outlay 4,000 4,000 - 4,000 - Total expenditures 2,291,208 2,151,428 2,278,549 12,659 Excess (deficiency) of revenues over expenditures (809,937) (739,952) (657,483) 152,454 OTHER FINANCING SOURCES (USES):

Transfers in - 67,000 67,000 -
Total other financing sources (uses) 67,000 - 67,000 -
NET CHANGE IN FUND BALANCE $ (742,937) (739,952) $ (590,483) 152,454 $ FUND BALANCE (DEFICIT):

Beginning of year, as restated (Note 19) (1,636,197)
End of year $ (2,226,680)
City of Pinole
Budgetary Comparison Schedule
Building and Planning Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
99

Measurement period, year ended 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 Plan's proportion of the net pension liability 0.2649900% 0.2655100% 0.2659200% 0.2713000% 0.2715300% Plan's proportionate share of
the net pension liability 19,140,570 $ 18,093,979 $ 10,920,678 $ 16,004,315 $ 15,121,848 $ Plan's covered-employee payroll 7,462,350 $ 5,876,649 $ 5,330,477 $ 4,879,830 $ 4,196,794 $ Plan's proportionate share of
the net pension liability as a percentage
of covered-employee payroll 256.50% 307.90% 211.80% 334.60% 348.11% Plan's fiduciary net position 40,994,438 $ 38,857,645 $ 42,169,171 $ 35,326,833 $ 33,710,618 $ Plan's fiduciary net position as a percentage
of the total pension liability 68.17% 68.23% 79.43% 68.82% 69.03% 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, 2024
Cost-Sharing Multiple Employer Miscellaneous Plan
100

Measurement period, year ended 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 Plan's proportion of the net pension liability 0.2770700% 0.2846100% 0.2849400% 0.2990880% 0.1255000% Plan's proportionate share of
the net pension liability 14,125,442 $ 14,317,779 $ 12,368,264 $ 10,147,708 $ 7,809,298 $ Plan's covered-employee payroll 4,073,566 $ 4,081,438 $ 3,473,271 $ 3,762,767 $ 3,929,312 $ Plan's proportionate share of
the net pension liability as a percentage
of covered-employee payroll 339.74% 350.80% 356.10% 269.69% 198.74% Plan's fiduciary net position 32,674,876 $ 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 69.82% 68.59% 69.85% 75.12% 61.14% 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, 2024
101

Measurement period, year ended 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 Plan's proportion of the net pension liability 0.301440% 0.303110% 0.297990% 0.304450% 0.311100% Plan's proportionate share of
the net pension liability 26,305,611 $ 24,214,798 $ 12,714,382 $ 20,693,050 $ 18,793,747 $ Plan's covered-employee payroll 4,737,035 $ 4,754,353 $ 4,359,543 $ 4,197,326 $ 4,144,060 $ Plan's proportionate share of
the net pension liability as a percentage
of covered-employee payroll 555.32% 509.32% 129.11% 241.00% 224.74% Plan's fiduciary net position 63,368,786 $ 60,886,598 $ 65,389,834 $ 54,757,252 $ 54,136,140 $ Plan's fiduciary net position as a percentage
of the total pension liability 70.67% 71.55% 83.72% 72.57% 74.23% 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, 2024
102

Measurement period, year ended 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 Plan's proportion of the net pension liability 0.308530% 0.310790% 0.315420% 0.318363% 0.172860% Plan's proportionate share of
the net pension liability 17,290,615 $ 17,051,864 $ 14,755,488 $ 11,004,090 $ 10,753,040 $ Plan's covered-employee payroll 5,496,056 $ 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 213.58% 219.99% 196.37% 161.75% 151.85% Plan's fiduciary net position 50,751,672 $ 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 74.59% 74.05% 75.33% 80.94% 81.02% 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, 2024
Safety Plan
103

Fiscal Year: 2023-24 2022-23 2021-22 2020-21 2019-20
Contractually determined
contribution (actuarially determined) 2,209,061 $ 2,148,835 $ 1,888,941 $ 1,689,822 $ 1,503,913 $ Contributions in relation to the
actuarially determined contributions (2,209,061) (2,148,835) (1,888,941) (1,689,822) (1,503,913) Contribution deficiency (excess) $ - - $ - $ - $ - $
Covered payroll 7,671,296 $ 7,462,350 $ 5,876,649 $ 5,330,477 $ 4,879,830 $ Contributions as a percentage of
covered payroll 28.80% 28.80% 32.64% 32.77% 31.45%
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
Retirement age
Mortality
The actuarial methods and assumption used to set the actuarially determined contributions for Fiscal Year 2022-23 were derived from the June 30, 2022 funding valuation report.

Fair Value of Assets.

City of Pinole
Required Supplementary Information
Schedule of Contributions - Pensions
For the Year Ended June 30, 2024
Miscellaneous Plan
Cost-Sharing Multiple Employer Miscellaneous Plan
Varies by entry age and service
Entry Age Normal
Level percentage of payroll

2.50%
The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.

The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.

7.00% Net of pension plan investment and administrative expenses; includes Inflation. 104

Fiscal Year: 2018-19 2017-18 2016-17 2015-16 2014-15
Contractually determined
contribution (actuarially determined) 1,302,704 $ 1,058,603 $ 941,653 $ 853,299 $ 641,629 $ Contributions in relation to the
actuarially determined contributions (1,302,704) (1,058,603) (941,653) (853,299) (641,629) Contribution deficiency (excess) $ - - $ - $ - $ - $
Covered payroll 4,196,794 $ 4,073,566 $ 4,081,438 $ 3,473,271 $ 3,762,767 $ Contributions as a percentage of
covered payroll 29.99% 25.99% 23.07% 24.57% 17.05%
Miscellaneous Plan
City of Pinole
Required Supplementary Information
Schedule of Contributions - Pensions (Continued)
For the Year Ended June 30, 2024
Cost-Sharing Multiple Employer Miscellaneous Plan
105

Fiscal Year: 2023-24 2022-23 2021-22 2020-21 2019-20
Contractually determined
contribution (actuarially determined) 2,401,947 $ 2,584,516 $ 2,386,694 $ 2,099,289 $ 1,863,419 $ Contributions in relation to the
actuarially determined contributions (2,401,947) (2,584,516) (2,386,694) (2,099,289) (1,863,419) Contribution deficiency (excess) $ - - $ - $ - $ - $
Covered payroll 4,869,672 $ 4,737,035 $ 4,754,358 $ 4,359,543 $ 4,197,326 $ Contributions as a percentage of
covered payroll 49.32% 54.56% 50.20% 48.15% 44.40%
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
Retirement age
Mortality
Safety Plan
The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.

Varies by entry age and service
Level percentage of payroll

2.50%
The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to

7.00% Net of pension plan investment and administrative expenses; includes Inflation.

The actuarial methods and assumption used to set the actuarially determined contributions for Fiscal Year 2022-23 were derived from the June 30, 2022 funding valuation report.

Fair Value of Assets.

City of Pinole
Required Supplementary Information
Schedule of Contributions - Pensions (Continued)
Cost-Sharing Multiple Employer Safety Plan
For the Year Ended June 30, 2024
106

Fiscal Year: 2018-19 2017-18 2016-17 2015-16 2014-15
Contractually determined
contribution (actuarially determined) 1,584,004 $ 1,239,511 $ 1,125,572 $ 1,027,403 $ 826,196 $ Contributions in relation to the
actuarially determined contributions (1,584,004) (1,239,511) (1,125,572) (1,027,403) (826,196) Contribution deficiency (excess) $ - - $ - $ - $ - $
Covered payroll 4,144,060 $ 5,496,056 $ 3,655,556 $ 3,827,739 $ 3,931,175 $ Contributions as a percentage of
covered payroll 38.22% 22.55% 30.79% 26.84% 21.02%
For the Year Ended June 30, 2024
Safety Plan
City of Pinole
Required Supplementary Information
Schedule of Contributions - Pensions (Continued)
Cost-Sharing Multiple Employer Safety Plan
107

Measurement period, year ending: 6/30/2023 6/30/2022 6/30/2021 6/30/2020 6/30/2019 Total OPEB liability
Service cost 1,435,271 $ 1,960,338 $ 2,241,980 $ 1,615,428 $ 1,227,488 $ Interest 1,311,164 984,103 1,063,633 1,308,423 1,391,794 Changes of benefit terms - - - - -
Differences between expected and actual
experience (343,035) 3,334,938 (4,050,407) - (2,333,030) Changes of assumptions (6,025,520) (9,270,071) (270,144) 8,431,861 1,956,937 Benefit payments, including
refunds of member contributions (1,221,107) (1,283,772) (1,258,835) (1,223,092) (1,199,486) Implicit Subsidy Credit (144,415) - - - -
Change in total OPEB liability (7,952,437) (1,309,669) (2,273,773) 10,132,620 1,043,703 Total OPEB liability - beginning 44,238,462 36,286,025 46,512,235 36,379,615 35,335,912 Total OPEB liability - ending (a) $ 36,286,025 34,976,356 $ 44,238,462 $ 46,512,235 $ 36,379,615 $ Covered-employee payroll $ 11,487,256 13,547,474 $ 10,998,667 $ 10,708,319 $ 10,199,027 $ Plan net OPEB liability as a
percentage of covered-employee payroll 258.18% 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% to 3.54% based on updated municipal bond index June 30, 2023, discount rate has increased from 3.54% to 3.86% 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, 2024
108

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)
Implicit Subsidy Credit - -
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% to 3.54% based on updated municipal bond index June 30, 2023, discount rate has increased from 3.54% to 3.86% 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, 2024
109

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110

SUPPLEMENTARY INFORMATION
111

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 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.

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.

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
112

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.

Non-Major Governmental Funds (Continued)
113

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114

Capital
Projects Fund
Public Works
Capital Growth Gas Parkland
Projects Impact Tax Dedication Measure C
ASSETS
Cash and investments 3,969,336 $ 3,473,372 $ 1,386,982 $ 115 $ 2,067,767 $ Accounts receivable - - 196,685 - -
Lease receivable - - - - -
Interest receivable 1,240 30,188 11,138 1 17,028
Prepaid items and supplies - - - - 315,552
Total assets $ 3,503,560 3,970,576 $ 1,594,805 $ 116 $ 2,400,347 $

LIABILITIES

AND FUND BALANCES
Liabilities:

Accounts payable 31,301 - 5,745 - 43,153
Accrued liabilities - - - - -
Unearned revenue - - - - -
Deposits payable - - - - -
Due to other funds 82,515 - - - -
Total liabilities - 113,816 5,745 - 43,153
Fund Balances (Deficits):

Nonspendable - - - - 315,552
Restricted - 3,503,560 1,589,060 116 2,041,642
Assigned 3,856,760 - - - -
Unassigned (deficit) - - - - -
Total fund balances (deficits) 3,503,560 3,856,760 1,589,060 116 2,357,194 Total liabilities, deferred
inflows of resources,
and fund balances $ 3,503,560 3,970,576 $ 1,594,805 $ 116 $ 2,400,347 $ (Continued)
June 30, 2024
Non-Major Governmental Funds
City of Pinole
Combining Balance Sheet
Special Revenue Funds
115

Adjudicated
Storm Refuse Asset Cable
Water Management Seizure Police TV
ASSETS
Cash and investments - $ 21,085 $ 19,522 $ 971,059 $ - $ Accounts receivables 92,813 10,030 - 45,885 36,724
Lease receivable - - - - -
Interest receivable 49 305 197 8,530 -
Prepaid items and supplies - - - - -
Total assets $ 31,420 92,862 $ 19,719 $ 1,025,474 $ 36,724 $

LIABILITIES

AND FUND BALANCES
Liabilities:

Accounts payable 848 - 884 - 869
Accrued liabilities - - - - 8,070
Unearned revenue - - - - 6,524
Deposits payable 4,000 - - - -
Due to other funds 211,640 - - - 19,140
Total liabilities - 216,488 884 - 34,603
Fund Balances (Deficits):

Nonspendable - - - - -
Restricted - 31,420 18,835 1,025,474 2,121
Assigned - - - - -
Unassigned (deficit) (123,626) - - - -
Total fund balances (deficits) 31,420 (123,626) 18,835 1,025,474 2,121 Total liabilities, deferred
inflows of resources,
and fund balances $ 31,420 92,862 $ 19,719 $ 1,025,474 $ 36,724 $ (Continued)
City of Pinole
Combining Balance Sheet (Continued)
June 30, 2024
Non-Major Governmental Funds
Special Revenue Funds
116

CASP
Rate Development Solid Waste Certification
Recreation Stabilization Services Fund & Training
ASSETS
Cash and investments 62,012 $ 214,193 $ 70,078 $ 2,791,573 $ 50,561 $ Accounts receivables 13,631 - - 116,654 -
Lease receivable 11,386 - - - -
Interest receivable - 1,854 606 23,486 -
Prepaid items and supplies 5,000 - - - -
Total assets $ 216,047 92,029 $ 70,684 $ 2,931,713 $ 50,561 $

LIABILITIES

AND FUND BALANCES
Liabilities:

Accounts payable 56,373 - 7,582 15,899 1,122
Accrued liabilities 26,084 - - - -
Unearned revenue 10,311 - - - -
Deposits payable 13,065 - 59,121 - -
Due to other funds - - - - -
Total liabilities - 105,833 66,703 15,899 1,122
Fund Balances (Deficits):

Nonspendable 5,000 - - - -
Restricted - 216,047 3,981 2,915,814 49,439
Assigned - - - - -
Unassigned (deficit) (18,804) - - - -
Total fund balances (deficits) 216,047 (13,804) 3,981 2,915,814 49,439 Total liabilities, deferred
inflows of resources,
and fund balances $ 216,047 92,029 $ 70,684 $ 2,931,713 $ 50,561 $ (Continued)
City of Pinole
June 30, 2024
Non-Major Governmental Funds
Special Revenue Funds
Combining Balance Sheet (Continued)
117

Total
Nonmajor
Governmental
Funds
ASSETS
Cash and investments $ 15,097,655
Accounts receivables 512,422
Lease receivable 11,386
Interest receivable 94,622
Prepaid items and supplies 320,552
Total assets $ 16,036,637

LIABILITIES

AND FUND BALANCES
Liabilities:

Accounts payable 163,776
Accrued liabilities 34,154
Unearned revenue 16,835
Deposits payable 76,186
Due to other funds 313,295
Total liabilities 604,246
Fund Balances (Deficits):

Nonspendable 320,552
Restricted 11,397,509
Assigned 3,856,760
Unassigned (deficit) (142,430)
Total fund balances (deficits) 15,432,391
Total liabilities, deferred
inflows of resources,
and fund balances $ 16,036,637
City of Pinole
June 30, 2024
Non-Major Governmental Funds
Combining Balance Sheet (Continued)
118

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

Taxes and assessments 57,680 $ - $ - $ - $ - $
Intergovernmental revenues 289,239 - 1,008,910 - 640,200 Investment earnings (losses) 1,647 194,306 66,310 (290) 94,071 Rents and ground leases - - - - -
Charges for services 153 27,202 - - -
Fines, forfeitures and penalties - - - - -
Other revenues - - 3,737 - -
Total revenues 221,508 348,719 1,078,957 (290) 734,271
EXPENDITURES:

Current:

General administration - - - - -
Public safety - - - - -
Public works 30,085 - 556,732 - 203,281
Recreation - - - - -
Community development - - - - -
Capital outlay 242,559 57,982 65,036 - 316,165
Total expenditures 57,982 272,644 621,768 - 519,446
Excess (deficiency)
of revenues over expenditures 163,526 76,075 457,189 (290) 214,825 OTHER FINANCING SOURCES (USES):

Transfers in 500,000 - - - -
Total other financing sources (uses) - 500,000 - - -
NET CHANGES IN FUND BALANCE 163,526 576,075 457,189 (290) 214,825 FUND BALANCES (DEFICITS):

Beginning of year, as previously reported 3,280,685 3,340,034 1,131,871 406 2,142,369 Prior period adjustment (Note 19) - - - - -
Change with financial reporting entity
(major and non-major fund classification) (Note 20) - - - - - Beginning of year, as restated (Note 19) 3,280,685 3,340,034 1,131,871 406 2,142,369 End of year 3,856,760 $ 3,503,560 $ 1,589,060 $ 116 $ 2,357,194 $ (Continued)
City of Pinole
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds
For the Year Ended June 30, 2024
Special Revenue Funds
119

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

Taxes and assessments 240,048 $ - $ - $ 216,797 $ 16,928 $ Intergovernmental revenues - 62,080 - 186,159 -
Investment earnings (losses) 107 2,986 1,626 63,816 -
Rents and ground leases - - - - -
Charges for services - - - - 192,464
Fines, forfeitures and penalties - - 226 20,434 -
Other revenues - - - 364 390
Total revenues 65,066 240,155 1,852 487,570 209,782
EXPENDITURES:

Current:

General administration - - - - 553,444
Public safety - - 19,113 531,504 -
Public works 363,781 131,547 - 5,685 -
Recreation - - - - -
Community development - - - - -
Capital outlay - - - 270,595 2,075
Total expenditures 131,547 363,781 19,113 807,784 555,519 Excess (deficiency)
of revenues over expenditures (66,481) (123,626) (17,261) (320,214) (345,737) OTHER FINANCING SOURCES (USES):

Transfers in - - - - 336,276
Total other financing sources (uses) - - - - 336,276
NET CHANGES IN FUND BALANCE (66,481) (123,626) (17,261) (320,214) (9,461) FUND BALANCES (DEFICITS):

Beginning of year, as previously reported - 97,901 36,096 1,345,688 11,582 Prior period adjustment (Note 19) - - - - -
Change with financial reporting entity
(major and non-major fund classification) (Note 20) - - - - - Beginning of year, as restated (Note 19) - 97,901 36,096 1,345,688 11,582 End of year (123,626) $ 31,420 $ 18,835 $ 1,025,474 $ 2,121 $ (Continued)
City of Pinole
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Special Revenue Funds
Non-Major Governmental Funds
For the Year Ended June 30, 2024
120

CASP
Rate Development Solid Waste Certification
Recreation Stabilization Services Fund & Training
REVENUES:

Taxes and assessments - $ - $ - $ - $ - $
Intergovernmental revenues 31,362 - - 75,000 -
Investment earnings (losses) - 11,685 3,787 140,233 -
Rents and ground leases 25,863 - - - -
Charges for services 438,014 - - - 7,535
Fines, forfeitures and penalties - - - - -
Other revenues 21,100 - - 460,096 -
Total revenues 11,685 516,339 3,787 675,329 7,535
EXPENDITURES:

Current:

General administration 7,338 - - - -
Public safety - - - - -
Public works - - - 108,328 -
Recreation 1,866,987 - - - -
Community development - - - - 1,040
Capital outlay 27,101 - - - -
Total expenditures - 1,901,426 - 108,328 1,040
Excess (deficiency)
of revenues over expenditures 11,685 (1,385,087) 3,787 567,001 6,495 OTHER FINANCING SOURCES (USES):

Transfers in 1,392,318 - - - -
Total other financing sources (uses) - 1,392,318 - - -
NET CHANGES IN FUND BALANCE 11,685 7,231 3,787 567,001 6,495 FUND BALANCES (DEFICITS):

Beginning of year, as previously reported (21,035) 204,362 194 2,348,813 42,944 Prior period adjustment (Note 19) - - - - -
Change with financial reporting entity
(major and non-major fund classification) (Note 20) - - - - - Beginning of year, as restated (Note 19) (21,035) 204,362 194 2,348,813 42,944 End of year (13,804) $ 216,047 $ 3,981 $ 2,915,814 $ 49,439 $ (Continued)
City of Pinole
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
For the Year Ended June 30, 2024
Special Revenue Funds
121

Special
Revenue Funds Total
Building Nonmajor
& Planning Funds
Fund Total
REVENUES:

Taxes and assessments $ 531,453
Intergovernmental revenues 2,292,950
Investment earnings (losses) 580,284
Rents and ground leases 25,863
Charges for services 665,368
Fines, forfeitures and penalties 20,660
Other revenues 485,687
Total revenues 4,602,265
EXPENDITURES:

Current:

General administration 560,782
Public safety 550,617
Public works 1,399,439
Recreation 1,866,987
Community development 1,040
Capital outlay 981,513
Total expenditures 5,360,378
Excess (deficiency)
of revenues over expenditures (758,113)
OTHER FINANCING SOURCES (USES):

Transfers in 2,228,594
Total other financing sources (uses) 2,228,594
NET CHANGES IN FUND BALANCE 1,470,481
FUND BALANCES (DEFICITS):

Beginning of year, as previously reported (1,526,215) $ 12,435,695 Prior period adjustment (Note 19) (109,982) (109,982)
Change with financial reporting entity
(major and non-major fund classification) (Note 20) 1,636,197 1,636,197 Beginning of year, as restated (Note 19) 13,961,910 -
End of year $ 15,432,391 - $
(Continued)
City of Pinole
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) For the Year Ended June 30, 2024
Non-Major Governmental Funds
122

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

Taxes and assessments 56,411 $ 56,411 $ 57,680 $ 1,269 $ Intergovernmental revenues 2,004,441 2,004,441 289,239 (1,715,202) Investment earnings - - 1,647 1,647
Rents and ground leases 15,000 15,000 - (15,000)
Charges for services - - 153 153
Other revenues 7,500 7,500 - (7,500)
Total revenues 2,083,352 2,083,352 348,719 (1,734,633)
EXPENDITURES:

Current:

Public works 194,457 194,457 30,085 164,372
Capital outlay 2,966,348 2,966,348 242,559 2,723,789
Total expenditures 3,160,805 3,160,805 272,644 2,888,161 Excess (deficiency) of revenues over expenditures (1,077,453) (1,077,453) 76,075 1,153,528 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 $ (577,453) (577,453) $ 576,075 1,153,528 $ FUND BALANCE:

Beginning of year 3,280,685
End of year $ 3,856,760
City of Pinole
Budgetary Comparison Schedule
Public Works Capital Projects
For the Year Ended June 30, 2024
Budgeted Amounts
123

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

Investment earnings - $ - $ 194,306 $ 194,306 $
Charges for services 1,039,594 1,039,594 27,202 (1,012,392) Total revenues 1,039,594 1,039,594 221,508 (818,086)
EXPENDITURES:

Current:

Capital outlay 1,348,000 1,348,000 57,982 1,290,018 - Total expenditures 1,348,000 1,348,000 57,982 1,290,018 NET CHANGE IN FUND BALANCE $ (308,406) (308,406) $ 163,526 471,932 $ FUND BALANCE:

Beginning of year 3,340,034
End of year $ 3,503,560
City of Pinole
Budgetary Comparison Schedule
Growth Impact Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
124

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

Intergovernmental revenues 1,033,764 $ 1,033,764 $ 1,008,910 $ (24,854) $ Investment earnings 5,000 5,000 66,310 61,310
Other revenues 7,636 7,636 3,737 (3,899)
Total revenues 1,046,400 1,046,400 1,078,957 32,557
EXPENDITURES:

Current:

Public works 547,941 547,941 556,732 (8,791)
Capital outlay 1,433,045 1,433,045 65,036 1,368,009
Total expenditures 1,980,986 1,980,986 621,768 1,359,218 NET CHANGE IN FUND BALANCE $ (934,586) (934,586) $ 457,189 1,391,775 $ FUND BALANCE:

Beginning of year 1,131,871
End of year $ 1,589,060
City of Pinole
Budgetary Comparison Schedule
Gas Tax Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
125

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

Investment earnings - $ - $ (290) $ (290) $
Total revenues - - (290) (290)
NET CHANGE IN FUND BALANCE $ - - $ (290) $ (290) $
FUND BALANCE:

Beginning of year 406
End of year $ 116
City of Pinole
Budgetary Comparison Schedule
Parkland Dedication Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
126

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

Intergovernmental revenues 1,144,257 $ 1,144,257 $ 640,200 $ (504,057) $ Investment earnings 8,000 8,000 94,071 86,071
Total revenues 1,152,257 1,152,257 734,271 (417,986)
EXPENDITURES:

Current:

Public works 272,069 272,069 203,281 68,788
Capital outlay 751,650 751,650 316,165 435,485
Total expenditures 1,023,719 1,023,719 519,446 504,273
NET CHANGE IN FUND BALANCE $ 128,538 128,538 $ 214,825 $ 86,287 $ FUND BALANCE:

Beginning of year 2,142,369
End of year $ 2,357,194
City of Pinole
Budgetary Comparison Schedule
Measure C Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
127

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

Taxes and assessments 253,272 $ 253,272 $ 240,048 $ (13,224) $ Investment earnings 150 150 107 (43)
Total revenues 253,422 253,422 240,155 (13,267)
EXPENDITURES:

Current:

Public works 374,769 374,769 363,781 10,988
Total expenditures 374,769 374,769 363,781 10,988
NET CHANGE IN FUND BALANCE $ (121,347) (121,347) $ (123,626) (2,279) $ FUND BALANCE (DEFICIT):

Beginning of year -
End of year $ (123,626)
City of Pinole
Budgetary Comparison Schedule
Storm Water Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
128

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

Intergovernmental revenues 60,060 $ 60,060 $ 62,080 $ 2,020 $ Investment earnings 6,000 6,000 2,986 (3,014)
Total revenues 66,060 66,060 65,066 (994)
EXPENDITURES:

Current:

Public works 174,358 174,358 131,547 42,811
Total expenditures 174,358 174,358 131,547 42,811
NET CHANGE IN FUND BALANCE $ (108,298) (108,298) $ (66,481) 41,817 $ FUND BALANCE:

Beginning of year 97,901
End of year $ 31,420
City of Pinole
Budgetary Comparison Schedule
Refuse Management Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
129

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

Investment earnings - $ - $ 1,626 $ 1,626 $
Fines, forfeitures and penalties - - 226 226
Total revenues - - 1,852 1,852
EXPENDITURES:

Current:

Public safety 41,236 41,236 19,113 22,123 - Total expenditures 41,236 41,236 19,113 22,123 NET CHANGE IN FUND BALANCE $ (41,236) (41,236) $ (17,261) 23,975 $ FUND BALANCE:

Beginning of year 36,096
End of year $ 18,835
City of Pinole
Budgetary Comparison Schedule
Adjudicated Asset Seizure Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
130

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

Taxes and assessments 239,353 $ 239,353 $ 216,797 $ (22,556) $ Intergovernmental revenues 165,000 165,000 186,159 21,159 Investment earnings 5,600 5,600 63,816 58,216
Fines, forfeitures and penalties 45,000 45,000 20,434 (24,566) Other revenues - - 364 364
Total revenues 454,953 454,953 487,570 32,617
EXPENDITURES:

Current:

Public safety 534,703 534,703 531,504 3,199
Public works 35,000 35,000 5,685 29,315
Capital outlay 308,765 308,765 270,595 38,170
Total expenditures 878,468 878,468 807,784 70,684
NET CHANGE IN FUND BALANCE $ (423,515) (423,515) $ (320,214) 103,301 $ FUND BALANCE:

Beginning of year 1,345,688
End of year $ 1,025,474
City of Pinole
Budgetary Comparison Schedule
Police Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
131

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

Taxes and assessments 52,972 $ 26,486 $ 16,928 $ (9,558) $ Charges for services 316,956 316,956 192,464 (124,492)
Other revenues 5,000 5,000 390 (4,610)
Total revenues 348,442 374,928 209,782 (138,660)
EXPENDITURES:

Current:

General administration 631,669 631,669 553,444 78,225
Capital outlay 50,387 50,387 2,075 48,312 - Total expenditures 682,056 682,056 555,519 126,537 Excess (deficiency) of revenues over expenditures (333,614) (307,128) (345,737) (12,123) OTHER FINANCING SOURCES (USES):

Transfers in 160,124 336,276 336,276 -
Total other financing sources (uses) 336,276 160,124 336,276 - NET CHANGE IN FUND BALANCE $ 2,662 (147,004) $ (9,461) (12,123) $ FUND BALANCE (DEFICIT):

Beginning of year 11,582
End of year $ 2,121
City of Pinole
Budgetary Comparison Schedule
Cable TV Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
132

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

Intergovernmental revenues 51,268 $ 81,996 $ 31,362 $ (50,634) $ Rents and ground leases 21,313 19,413 25,863 6,450
Charges for services 377,786 358,827 438,014 79,187
Other revenues 39,500 39,500 21,100 (18,400)
Total revenues 499,736 489,867 516,339 16,603
EXPENDITURES:

Current:

General administration - - 7,338 (7,338)
Recreation 2,021,764 2,167,323 1,866,987 300,336
Capital outlay 113,500 101,744 27,101 74,643 - Total expenditures 2,269,067 2,135,264 1,901,426 367,641 Excess (deficiency) of revenues over expenditures (1,769,331) (1,645,397) (1,385,087) 384,244 OTHER FINANCING SOURCES (USES):

Transfers in 799,131 1,392,318 1,392,318 -
Total other financing sources (uses) 1,392,318 799,131 1,392,318 - NET CHANGE IN FUND BALANCE $ (377,013) (846,266) $ 7,231 384,244 $ FUND BALANCE (DEFICIT):

Beginning of year (21,035)
End of year $ (13,804)
City of Pinole
Budgetary Comparison Schedule
Recreation Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
133

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

Investment earnings - $ - $ 3,787 $ 3,787 $
Total revenues - - 3,787 3,787
NET CHANGE IN FUND BALANCE $ - - $ 3,787 3,787 $
FUND BALANCE (DEFICIT):

Beginning of year 194
End of year $ 3,981
City of Pinole
Budgetary Comparison Schedule
Development Services Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
134

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

Intergovernmental revenues - $ - $ 75,000 $ 75,000 $
Investment earnings 8,000 8,000 140,233 132,233
Other revenues 360,000 360,000 460,096 100,096
Total revenues 368,000 368,000 675,329 307,329
EXPENDITURES:

Current:

Public works 164,381 164,381 108,328 56,053
Capital outlay 425,000 425,000 - 425,000 - Total expenditures 589,381 589,381 108,328 481,053 NET CHANGE IN FUND BALANCE $ (221,381) (221,381) $ 567,001 788,382 $ FUND BALANCE:

Beginning of year 2,348,813
End of year $ 2,915,814
City of Pinole
Budgetary Comparison Schedule
Solid Waste Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
135

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

Charges for services - $ - $ 7,535 $ 7,535 $
Total revenues - - 7,535 7,535
EXPENDITURES:

Current:

Community development - - 1,040 (1,040)
Total expenditures - - 1,040 (1,040)
NET CHANGE IN FUND BALANCE $ - - $ 6,495 6,495 $
FUND BALANCE:

Beginning of year 42,944
End of year $ 49,439
City of Pinole
Budgetary Comparison Schedule
CASP Certification & Training Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
136

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

Investment earnings - $ - $ 11,685 $ 11,685 $
Other revenues 15,000 15,000 - (15,000)
Total revenues 15,000 15,000 11,685 (3,315)
NET CHANGE IN FUND BALANCE $ 15,000 15,000 $ 11,685 (3,315) $ FUND BALANCE:

Beginning of year 204,362
End of year $ 216,047
City of Pinole
Budgetary Comparison Schedule
Rate Stabilization Fund
For the Year Ended June 30, 2024
Budgeted Amounts
137

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138

FIDUCIARY FUNDS
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. 139

Unadjudicated Asset Developer
Seizure Fund Fees Fund
ASSETS
Cash and investments $ 4,869 26,354 $
Interest receivable - 228
Total assets 4,869 26,582

LIABILITIES
Accounts payable - 11,448
Deposit payable - -
Unearned Revenue - -
Total liabilities - 11,448

NET POSITION
Restricted for:

Held in trust for dissolution of RDA - -
Individuals, organizations, and other governments 4,869 15,134 Total net position $ 4,869 15,134 $
June 30, 2024
City of Pinole
Combining Statement of Fiduciary Net Position
Custodial Funds
140

Community
Pinole Public Assistance Police
School Funds Program Fund Evidence Fund Total
ASSETS
Cash and investments $ 25,150 1,847 $ 118,191 $ 176,411 $ Interest receivable 16 - - 244
Total assets 25,150 1,863 118,191 176,655

LIABILITIES
Accounts payable - - - 11,448
Deposit payable - - 117,958 117,958
Unearned Revenue - 25,150 - 25,150
Total liabilities 25,150 - 117,958 154,556

NET POSITION
Restricted for:

Held in trust for dissolution of RDA - - - -
Individuals, organizations, and other governments - 1,863 233 22,099 Total net position $ - 1,863 $ 233 $ 22,099 $
June 30, 2024
City of Pinole
Combining Statement of Fiduciary Net Position (Continued) Custodial Funds
141

Unadjudicated Asset Developer
Seizure Fund Fees Fund
ADDITIONS:

Investment income $ - 1,438 $
Total additions - 1,438
Change in net position - 1,438
NET POSITION:

Beginning of year 4,869 13,696
End of year $ 4,869 15,134 $
For the Year Ended June 30, 2024
City of Pinole
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
142

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

Investment income 101 $ - $ 12 $ 1,551 $
Total additions - 101 12 1,551
Change in net position - 101 12 1,551
NET POSITION:

Beginning of year 1,762 221 20,548 -
End of year $ 1,863 $ 233 - $ 22,099 $
For the Year Ended June 30, 2024
City of Pinole
Combining Statement of Changes in Fiduciary Net Position (Continued) Custodial Funds
143

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144

STATISTICAL SECTION
(Unaudited)
145

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146

Financial Trends:

Net Position by Component – Last Ten Fiscal Years 148
Changes in Net Position – Last Ten Fiscal Years 150
General Fund Tax Revenue by Source – Last Ten Fiscal Years 153 Fund Balances Governmental Funds – Last Ten Fiscal Years 154 Changes in Fund Balances Governmental Funds – Last Ten Fiscal Years 156 Revenue Capacity:

Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years 159 Direct and Overlapping Governments – Last Ten Fiscal Years 160 Principal Property Taxpayers – Current and Nine Years Prior 161 Property Tax Levies and Collections – Last Ten Fiscal Years 163 Taxable Sales by Category – Last Ten Fiscal Years 164
Direct and Overlapping Sales Tax Rates – Last Ten Fiscal Years 166 Top 25 Sales Tax Producers 167
Debt Capacity:

Ratios of Outstanding Debt by Type – Last Ten Fiscal Years 168 Ratios of Net General Bonded Debt Outstanding – Last Ten Fiscal Years 169 Direct and Overlapping Governmental Activities Debt 170 Computation of Legal Debt Margin – Last Ten Fiscal Years 171 Revenue Bond Coverage – Last Ten Fiscal Years 172
Demographic and Economic Information:

Demographic Statistics – Last Ten Fiscal Years 173
Principal Employers – Current and Nine Years Ago 175
Operating Information:

Operating Indicators by Function/Program – Last Ten Fiscal Years 176 Full-Time Equivalent City Government Employees by Function/Program – Last Ten Fiscal Years 179 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years 180 City of Pinole
Statistical Section
For the Year Ended June 30, 2024
147

2015 2016 2017 2018 2019
Governmental activities
Net investment in capital assets $ 33,764,294 34,962,909 $ 32,700,833 $ 31,758,414 $ 29,977,958 $ Restricted 2,591,393 2,591,393 17,755,625 17,938,328 31,048,458 Unrestricted (deficit) (17,014,950) (21,819,095) (31,148,654) (34,044,994) (41,104,957) Total governmental activities net position $ 19,340,737 15,735,207 $ 19,307,804 $ 15,651,748 $ 19,921,459 $ Business-type activities
Net investment in capital assets $ 13,869,394 11,223,296 $ 14,364,860 $ 13,381,134 $ 13,088,528 $ Unrestricted 4,584,135 4,984,154 5,649,110 6,241,700 7,883,837 Total business-type activities net position $ 18,453,529 16,207,450 $ 20,013,970 $ 19,622,834 $ 20,972,365 $ Primary government
Net investment in capital assets $ 47,633,688 46,186,205 $ 47,065,693 $ 45,139,548 $ 43,066,486 $ Restricted 2,591,393 2,591,393 17,755,625 17,938,328 31,048,458 Unrestricted (deficit) (12,430,815) (16,834,941) (25,499,544) (27,803,294) (33,221,120) Total primary government net position $ 37,794,266 31,942,657 $ 39,321,774 $ 35,274,582 $ 40,893,824 $ Source: City of Pinole Finance
City of Pinole
Net Position by Component
Last Ten Fiscal Years
148

2020 2021 2022 2023 2024
Governmental activities
Net investment in capital assets $ 31,008,808 30,774,116 $ 31,695,972 $ 30,207,077 $ 30,973,001 $ Restricted 33,528,931 32,045,457 34,342,971 29,854,090 29,675,938 Unrestricted (deficit) (44,487,476) (41,984,038) (52,223,172) (39,009,363) (43,775,850) Total governmental activities net position $ 20,050,263 20,835,535 $ 13,815,771 $ 21,051,804 $ 16,873,089 $ Business-type activities
Net investment in capital assets $ 12,783,593 12,452,490 $ 12,863,679 $ 7,718,239 $ 7,975,522 $ Unrestricted 10,795,126 10,243,444 11,022,842 12,544,816 14,072,542 Total business-type activities net position $ 23,578,719 22,695,934 $ 23,886,521 $ 20,263,055 $ 22,048,064 $ Primary government
Net investment in capital assets $ 43,792,401 43,226,606 $ 44,559,651 $ 37,925,316 $ 38,948,523 $ Restricted 33,528,931 32,045,457 34,342,971 29,854,090 29,675,938 Unrestricted (deficit) (33,692,350) (31,740,594) (41,200,330) (26,464,547) (29,703,308) Total primary government net position $ 43,628,982 43,531,469 $ 37,702,292 $ 41,314,859 $ 38,921,153 $ City of Pinole
Net Position by Component (Continued)
Last Ten Fiscal Years
149

2015 2016 2017 2018 2019
Expenses
Governmental Activities:

General government 4,373,166 $ 4,368,671 $ 5,952,688 $ 3,482,534 $ 4,931,705 $ Public safety 9,321,934 10,086,963 10,326,947 12,202,527 12,060,171 Public services 2,673,746 3,878,498 2,568,265 3,217,759 3,416,574 Recreation 1,150,267 1,067,952 1,151,760 1,145,227 1,069,375 Community development 833,061 1,184,385 1,065,848 1,642,031 2,338,177 Interest and fiscal changes 290,860 305,569 338,507 331,464 287,729 Total government activity expenses 18,643,034 $ 20,892,038 $ 21,404,015 $ 22,021,542 $ 24,103,731 $ Business-type activities:

Wastewater utility 4,883,256 5,316,022 4,597,454 5,193,994 4,930,113 Total business-type activities expenses 4,883,256 5,316,022 4,597,454 5,193,994 4,930,113 Total primary government expenses $ 26,208,060 23,526,290 $ 26,001,469 $ 27,215,536 $ 29,033,844 $ Program Revenues
Governmental Activities:

Charges for services:

General government 590,359 $ 236,512 $ 354,357 $ 648,409 $ 643,524 $ Public safety 534,095 461,330 640,785 1,435,741 1,186,008 Public services 573,320 545,273 310,073 153,810 169,758 Recreation 998,792 871,497 783,783 846,822 770,397
Community development 666,863 244,449 162,634 1,153,907 2,368,209 Operating grants and contributiions 1,203,058 1,464,456 227,184 11,483,081 2,136,212 Capital grants and contributions 1,068,087 1,262,813 - - Total governmental program revenues 5,634,574 3,823,517 3,741,629 15,721,770 7,274,108 Business-type activities:

Charges for services:

Wastewater utility 6,912,213 7,541,964 6,315,563 6,524,537 7,211,834 Capital grants and contributions - - - - -
Total business-type program revenues 6,912,213 7,541,964 6,315,563 6,524,537 7,211,834 Total primary government program revenues 12,546,787 $ 11,365,481 $ 10,057,192 $ 22,246,307 $ 14,485,942 $ Net (Expense)/Revenue
Net (Expense)/Revenue Governmental (13,008,460) (17,068,521) (17,662,386) (6,299,772) (16,829,623) Net (Expense)/Revenue Business-type 2,028,957 2,225,942 1,718,109 1,330,543 2,281,721 Total primary government net (Expense)/Revenue (14,842,579) (10,979,503) (15,944,277) (4,969,229) (14,547,902) Change in Net Position
Governmental activities (4,193,825) (1,293,805) (32,933) 12,710,019 2,874,178 Business-type activities (2,037,223) (2,246,079) 1,721,679 1,389,501 2,411,362 Total primary government $ (3,539,884) (6,231,048) $ 1,688,746 $ 14,099,520 $ 5,285,540 $ Source: City of Pinole Finance
City of Pinole
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
150

2020 2021 2022 2023 2024
Expenses
Governmental Activities:

General government 4,596,909 $ 4,957,477 $ 5,539,414 $ 4,226,526 $ 5,439,951 $ Public safety 14,937,597 15,895,381 19,255,147 12,985,795 20,226,459 Public services 3,488,882 4,541,157 3,943,251 4,391,992 5,734,403 Recreation 1,146,587 949,734 1,878,342 1,926,541 2,275,235 Community development 1,365,580 1,275,333 2,271,609 2,982,917 2,968,511 Interest and fiscal changes 304,844 331,218 388,876 410,766 424,186 Total government activity expenses 25,840,399 $ 27,950,300 $ 33,276,639 $ 26,924,537 $ 37,068,745 $ Business-type activities:

Wastewater utility 5,704,747 6,688,530 7,266,212 5,787,622 6,812,685 Total business-type activities expenses 5,704,747 6,688,530 7,266,212 5,787,622 6,812,685 Total primary government expenses $ 34,638,830 31,545,146 $ 40,542,851 $ 32,712,159 $ 43,881,430 $ Program Revenues
Governmental Activities:

Charges for services:

General government 678,065 $ 686,519 $ 2,106,826 $ 936,883 $ 752,366 $ Public safety 1,388,295 1,440,572 1,925,962 1,840,283 1,908,034 Public services 66,676 74,897 739,693 365,748 502,517
Recreation 501,860 172,486 378,787 711,156 481,813
Community development 736,346 503,324 902,764 1,236,488 1,423,431 Operating grants and contributiions 1,790,729 1,795,055 2,020,534 5,594,961 2,939,589 Capital grants and contributions - - 712,728 865,743 500,258 Total governmental program revenues 5,161,971 4,672,853 8,787,294 11,551,262 8,508,008 Business-type activities:

Charges for services:

Wastewater utility 7,093,734 7,527,056 7,770,772 7,831,703 8,114,292 Capital grants and contributions - - - - -
Total business-type program revenues 7,093,734 7,527,056 7,770,772 7,831,703 8,114,292 Total primary government program revenues 12,255,705 $ 12,199,909 $ 16,558,066 $ 19,382,965 $ 16,622,300 $ Net (Expense)/Revenue
Net (Expense)/Revenue Governmental (20,678,428) (23,277,447) (24,489,345) (15,373,275) (28,560,737) Net (Expense)/Revenue Business-type 1,388,987 838,526 504,560 2,044,081 1,301,607 Total primary government net (Expense)/Revenue (22,438,921) (19,289,441) (23,984,785) (13,329,194) (27,259,130) Change in Net Position
Governmental activities (50,793) (785,272) (6,234,493) 7,162,251 (4,068,733) Business-type activities 1,673,561 882,785 307,802 1,869,392 1,785,009 Total primary government $ 97,513 1,622,768 $ (5,926,691) $ 9,031,643 $ (2,283,724) $ City of Pinole
Changes in Net Position (Continued)
Last Ten Fiscal Years
(accrual basis of accounting)
151

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152

(b) (a) ( c )
Fiscal Year Property Tax Sales Tax
Franchise
Tax Transfer Tax
Occupancy
Tax Utility Tax Other Total
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 2024 5,883,627 9,430,219 901,208 65,183 378,622 2,445,715 2,814,056 21,918,629 (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
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Fiscal Year Property Tax Sales Tax Franchise Tax Transfer Tax Occupancy Tax Utility Tax Other
153

2015 2016 2017 2018 2019
General Fund
Nonspendable - $ 7,275 $ 6,712 $ 12,669 $ 13,178 $
Restricted - - - 133,586 17,346,090
Assigned 1,030,000 - - 2,531,677 2,531,677
Committed - - - - -
Unassigned 4,261,995 9,062,287 11,700,289 23,249,204 14,909,608 Total General Fund 5,291,995 $ 9,069,562 $ 11,707,001 $ 25,927,136 $ 34,800,553 $ All Other Governmental Funds
Nonspendable 2,591,393 $ 6,882,968 $ - $ - $
Restricted 14,074,122 11,665,834 10,872,657 18,250,952 14,306,945 Assigned 3,661,477 - - 2,366,429 2,800,614
Committed - - 2,304,515 - -
Unassigned reported in:

Special revenue funds (611,270) 4,248,108 (371,162) (43,673) (29,052) Capital project funds (265,778) - - - -
Debt service funds - - - - -
Total all other governmental funds 16,858,551 $ 18,505,335 $ 19,688,978 $ 20,573,708 $ 17,078,507 $ Source: City of Pinole Finance
City of Pinole
Fund Balances Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
154

2020 2021 2022 2023 2024
General Fund
Nonspendable 463,067 $ 18,782 $ 45,296 $ 243,904 $ 33,987 $ Restricted 18,255,487 19,623,678 17,271,818 14,775,559 13,718,620 Assigned 7,672,065 7,836,178 8,533,768 - -
Committed 579,257 - - 9,412,029 10,744,838
Unassigned 10,828,937 12,488,562 9,406,554 12,123,654 7,841,433 Total General Fund 37,798,813 $ 39,967,200 $ 35,257,436 $ 36,555,146 $ 32,338,878 $ All Other Governmental Funds
Nonspendable 315,552 $ 315,552 $ 315,552 $ 328,952 $ 320,552 $ Restricted 13,756,009 13,905,253 17,236,034 18,590,427 19,665,280 Assigned 2,751,350 2,526,571 2,069,093 3,280,685 3,856,760 Committed - - - - -
Unassigned reported in:

Special revenue funds (35,900) (137,880) (600,971) (1,560,650) (2,369,110) Capital project funds - - - - -
Debt service funds - - - - -
Total all other governmental funds 16,787,011 $ 16,609,496 $ 19,019,708 $ 20,639,414 $ 21,473,482 $ City of Pinole
Fund Balances Governmental Funds (Continued)
Last Ten Fiscal Years
(modified accrual basis of accounting)
155

2015 2016 2017 2018 2019
Revenues
Taxes 15,111,311 $ 15,111,374 $ 15,453,213 $ 16,599,387 $ 15,853,006 $ Intergovernmental 3,313,973 3,462,621 877,090 1,460,655 2,188,347 Loan repayments 45,666 85,849 145,457 15,023 1,656,645
Contributions 51,313 65,317 146,112 30,595 22,746
Investment earnings 311,168 188,790 16,188 88,092 1,529,630 Rents and ground leases 264,301 224,952 300,441 303,618 274,153 Charges for service 2,929,952 3,892,535 3,997,423 5,307,234 4,616,561 Fines, forfeitures and penalties 58,863 41,564 48,442 75,670 89,911 Other revenues 778,737 365,857 532,173 834,086 746,909
Total revenues 22,865,284 23,438,859 21,516,539 24,714,360 26,977,908 Expenditures
General administration 2,411,271 3,007,506 3,035,822 3,257,220 3,802,406 Public safety 9,165,922 9,635,264 10,067,977 10,535,903 11,801,897 Public services 1,628,204 2,460,827 1,712,315 1,485,090 1,648,377 Recreation 1,107,168 906,302 1,042,006 960,325 1,069,375 Community development 818,580 945,646 935,276 1,596,240 1,237,892 Debt service - Principal 373,007 369,177 363,151 361,674 356,117 Debt service - Interest 290,860 305,569 338,507 331,464 287,729 Capital outlay 368,007 1,289,967 200,403 1,098,789 1,419,264 Total expenditures 16,163,019 17,695,457 19,626,705 21,623,057 Other financing sources (uses)
Bond, note and loan proceeds - - - - -
Gain (loss) on sale of property 17,259 1,909 10,017,210 3,140 Transfers in 447,050 446,000 671,364 826,926 7,135,205
Transfers out (447,050) (446,000) (671,364) (826,926) (7,135,205) Total other financing sources 17,259 1,909 - 10,017,210 3,140 Net change in fund balance 6,719,524 $ 23,440,768 $ 3,821,082 $ 15,104,865 $ 5,357,991 $ Debt service as a % of
noncapital expenditures 4.2% -52.3% 4.0% 3.7% 3.2%
City of Pinole
Changes in Fund Balances Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
156

2020 2021 2022 2023 2024
Revenues
Taxes 15,874,731 $ 19,055,833 $ 20,403,637 $ 21,782,789 $ 23,075,158 $ Intergovernmental 1,860,599 1,856,343 2,837,951 6,204,016 2,737,265 Loan repayments 544,892 107,912 11,658 - -
Contributions 24,889 14,274 10,574 - -
Investment earnings 1,790,740 2,888,309 (2,754,154) 1,508,707 2,680,347 Rents and ground leases 185,594 131,335 121,141 116,688 111,947 Charges for service 4,726,675 2,444,899 5,581,014 3,930,060 3,728,715 Fines, forfeitures and penalties 68,576 41,236 39,392 52,592 75,765 Other revenues 709,677 541,679 515,174 491,936 590,815
Total revenues 25,786,373 27,081,820 26,766,387 34,086,788 33,000,012 Expenditures
General administration 4,029,981 4,319,504 4,775,249 4,800,746 5,081,926 Public safety 12,975,773 13,889,090 15,143,959 17,104,181 18,236,794 Public services 1,680,617 1,448,818 2,448,651 3,069,163 3,985,102 Recreation 1,000,400 820,918 1,573,083 1,930,222 2,192,027 Community development 1,333,476 1,205,200 2,143,148 3,218,011 2,962,260 Debt service - Principal 301,709 227,389 244,820 338,125 336,809 Debt service - Interest 304,844 331,218 388,876 401,206 418,148 Capital outlay 1,466,664 2,932,020 2,627,507 1,447,983 3,185,518 Total expenditures 23,093,464 25,174,157 29,345,293 32,309,637 36,398,584 Other financing sources (uses)
Bond, note and loan proceeds - - - 165,695 126,215
Gain (loss) on sale of property 13,855 83,209 279,354 944,424 139 Transfers in 1,170,058 1,681,841 2,129,233 8,886,672 5,441,907 Transfers out (1,170,058) (1,681,841) (2,129,233) (8,886,672) (5,441,907) Total other financing sources 13,855 83,209 279,354 1,110,119 126,354 Net change in fund balance 2,706,764 $ 1,990,872 $ (2,299,552) $ 2,887,270 $ (3,272,218) $ Debt service as a % of
noncapital expenditures 2.8% 2.5% 2.4% 2.4% 2.3%
City of Pinole
Changes in Fund Balances Governmental Funds (Continued) Last Ten Fiscal Years
(modified accrual basis of accounting)
157

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158

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) 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% 2024 2,536,358,260 549,704,741 28,566,028 22,939,428 3,137,568,457 63,987,571 3,201,556,028 3,804,729,184 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. 159

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]
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
2024 1.0000 0.0134 0.0057 0.0146 0.2464 1.2801
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
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
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] 160

Taxpayer
Taxable Assessed
Value
Percent of Total City
Taxable Assessed
Value
Taxable Assessed
Value
Percent of Total City
Taxable Assessed
Value
Appian Associates $ 0.78% 15,477,287
Che Chen and Shu Fen Liu Trust 24,472,217 $ 0.78% 36,909,755 1.87% Fairfield Bayside LLC 40,634,046 1.30% 0.00%
Gateway Pinole Vista LLC 76,191,025 2.43% 24,158,860 1.22% Joe Cheuk W Chan Living Trust 0.68% 13,411,455
Kaiser Foundation Health Plan 37,639,335 1.20% 35,996,507 1.82% KW Pinole 1.11% 21,925,133
NHI-Reit of Next House LLC 21,090,878 0.67% 19,102,106 0.97% Pinole Ridge Mall LLC 21,361,332 0.68%
ROIC Pinole Vista LLC 43,253,166 1.38% 21,724,166 1.10% SCG Pinole Valley Shopping Center 44,932,054 1.43% 38,046,950 1.93% Target Corporation 20,813,760 0.66% 19,409,017 0.98%
Thomas Fitzgerald Trust 17,826,231 0.57% - 0.00%
$ 11.10% 246,161,236 348,214,044 $ 12.47%
Total Net Assessed Valuation:

Fiscal Year 2023-24 3,137,568,457 $
Fiscal Year 2014-15 1,974,488,120 $
Source: Contra Costa County Assessor Combined Tax Rolls-HdL Coren & Cone reports.

Note: Information is shown in alphabetical order.
2023-24 2014-15
City of Pinole
Principal Property Taxpayers
Current and Nine Years Prior
161

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162

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 2015 1,856,378 $ 105,121 $ [1] $ 100% 990,967,092 1,961,498 $ 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% 2024 3,073,266 99,078 [1] 3,023,486 100% 1,640,416,041 1,538,201,879 3,178,617,920 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
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Millions
Levied & Collected
$0.80
$1.30
$1.80
$2.30
$2.80
$3.30
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Billions
Assessed Value
163

2014-15 2015-16 2016-17 2017-18 2018-19
[b]
Major Business Groups
Autos and Transportation 128,585 $ 143,531 $ 142,634 $ 129,758 $ 149,328 $ Building and Construction 228,851 235,399 256,743 252,433 248,668 Business and Industry 74,621 74,664 69,064 68,148 81,173 Food and Drugs 369,426 354,347 366,064 376,151 408,251
Fuel and Service Stations 431,453 393,583 355,390 362,450 482,117 General Consumer Goods 1,229,774 1,298,176 1,343,309 1,347,691 1,323,599 Restaurants and Hotels 660,763 711,659 715,966 715,885 813,411 Adjustments & Others [a] (50,925) 24,448 - 506 5,972
Point of Sale s/totals 3,072,548 3,235,807 3,249,170 3,253,022 3,512,519 County Pool Allocations 408,386 431,500 499,708 490,660 519,400 State Pool Allocations 2,129 2,400 2,637 1,903 1,829
Local Transaction Tax 1,894,578 3,789,711 3,953,872 4,089,586 4,402,698 Administrative Cost - SBE (58,890) (82,268) (95,537) (90,183) (87,797) Fiscal Year Totals 5,318,751 $ 7,377,150 $ 7,609,850 $ 7,744,988 $ 8,348,649 $ City Direct Sales Tax Rate 1.25% 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
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. 164

2019-20 2020-21 2021-22 2022-23 2023-24
Major Business Groups
Autos and Transportation 125,285 $ 131,364 $ 145,204 $ 141,027 $ 154,626 $ Building and Construction 240,333 287,086 253,926 236,384 206,948 Business and Industry 80,562 66,279 79,061 69,661 59,575 Food and Drugs 422,665 467,507 435,658 440,943 437,077
Fuel and Service Stations 370,686 412,186 596,460 351,757 343,203 General Consumer Goods 1,110,168 1,299,328 1,333,100 1,364,953 1,443,935 Restaurants and Hotels 724,290 741,032 936,053 1,011,530 1,047,325 Adjustments & Others 1,211 484 5,260 11,511 3,620
Point of Sale s/totals 3,075,200 3,405,266 3,784,722 3,627,766 3,696,309 County Pool Allocations 747,782 927,704 861,541 798,304 744,707 State Pool Allocations 1,710 2,650 343 1,966 2,329
Local Transaction Tax [a] 3,944,917 4,654,311 5,041,168 4,976,048 5,051,749 Administrative Cost - SBE (79,691) (62,570) (74,149) (75,735) (64,876) Fiscal Year Totals 7,689,918 $ 8,927,361 $ 9,613,625 $ 9,328,349 $ 9,430,218 $ 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
165

2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 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% 0.00% 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% 0.50% 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% 7.50% 7.50% 7.50% 7.50% 8.00% 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 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% Direct Sales Taxes 1.75% 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 9.50% 9.50% 9.25% 9.25% 9.25% 9.25% 9.75% 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
166

BUSINESS NAME BUSINESS CATEGORY

1. APPIAN CHEVRON SERVICE STATIONS

2. BEST BUY ELECTRONICS/APPLIANCE STORES

3. BEVMO CONVENIENCE STORES/LIQUOR

4. BURLINGTON COAT FACTORY FAMILY APPAREL

5. CHIPOTLE QUICK-SERVICE RESTAURANTS

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. NORDSTROM FAMILY APPAREL

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. TARGET DISCOUNT DEPARTMENT STORES

21. TJ MAXX FAMILY APPAREL

22. TRADER JOES GROCERY STORES

23. ULTA BEAUTY SPECIALTY STORES

24. WESTLAKE ACE HARDWARE BUILDING MATERIALS

25. WINGSTOP QUICK-SERVICE RESTAURANTS
PERCENT OF FISCAL YEAR TOTAL PAID BY TOP 25 ACCOUNTS = 56.70% 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, 2024
167

Fiscal
Year
Pension
Obligation
Bonds
Leases
Payable
Subscription
Payable
Wastewater
Revenue Bonds
Clean Water State
Revolving Fund
Total Primary
Government
Percentage
of Personal
Income
Per
Capita
2015 4,206,695 $ 506,973 $ - $ 8,775,000 $ - $ 13,488,668 $ 1.4% 718 $ 2016 3,941,977 402,514 - 8,251,000 - 12,595,491 1.3% 665 2017 3,686,615 294,724 - 7,866,000 6,786,599 18,633,938 1.7% 982 2018 3,436,175 183,490 - 7,576,000 15,164,357 26,360,022 2.3% 1,370 2019 3,194,853 68,695 - 7,278,000 21,741,571 32,283,119 2.6% 1,656 2020 2,961,839 - - 6,968,000 25,456,833 35,386,672 2.5% 1,814 2021 2,734,450 - - 6,650,000 24,773,976 34,158,426 2.0% 1,764 2022 2,512,885 72,619 118,626 6,321,000 24,105,950 33,131,080 1.9% 1,779 2023 2,297,299 56,609 176,570 5,980,000 23,426,566 31,937,044 1.8% 1,751 2024 2,089,509 30,976 199,399 5,633,000 22,735,634 30,688,518 1.8% 1,687 Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements.

Governmental Activities
City of Pinole
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Business-type Activities
168

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
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
2024 2,089,509 - 2,089,509 0.13% [a] 115
Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements. [a]
[b]
Sources:

City Finance Department
Contra Costa County Office of the Auditor-Controller
Based on Assessment Value net of restricted Redevelopment Tax Increment 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.

City of Pinole
Ratios of Net General Bonded Debt Outstanding
Last Ten Fiscal Years
General Bonded Debt Outstanding
169

2023-24 Assessed Valuation: 3,201,556,028 $
Total Debt [1] City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2024 % Applicable Debt 6/30/24 Bay Area Rapid Transit District 2,445,575,000 $ 0.317% 7,752,473 $ Contra Costa Community College District 618,770,000 1.197% 7,406,677 West Contra Costa Unified School District 1,107,363,504 7.750% 85,820,672 West Contra Costa Healthcare District Parcel Tax Obligations 41,605,000 7.271% 3,025,100 East Bay Regional Park District 144,520,000 0.498% 719,710 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 104,724,629
DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Contra Costa County General Fund Obligations 171,495,000 $ 1.193% 2,045,935 $ West Contra Costa Unified School District Certificates of Participation 3,205,000 7.750% 248,388 City of Pinole Pension Obligation Bonds 2,089,508 100.000% 2,089,508 City of Pinole Capital Lease Obligations 30,976 100.000% 30,976 Alameda-Contra Costa Transit District Certificates of Participation 10,420,000 0.031% 3,230 TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT 4,418,037 $ Less: Contra Costa County obligations supported from revenue funds 484,803 TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT 3,933,234 $ TOTAL DIRECT DEBT $ 2,120,484
TOTAL GROSS OVERLAPPING DEBT $ 107,022,182
TOTAL NET OVERLAPPING DEBT $ 106,537,379
GROSS COMBINED TOTAL DEBT $ [2] 109,142,666
NET COMBINED TOTAL DEBT $ 108,657,863
Ratios to 2023-24 Assessed Valuation:

Total Overlapping Tax and Assessment Debt.....................................….... 3.27% Total Direct Debt ($2,120,484)...................................…........................... 0.07% Gross Combined Total Debt........................................................................ 3.41% Net Combined Total Debt ……………………...……………..…….………3.39%
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, 2024
Direct and Overlapping Governmental Activities Debt
City of Pinole
170

ASSESSED VALUATION:

Secured property assessed value, net of exempt real property 3,178,617,920 $ BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) [a] 119,198,172 $ AMOUNT OF DEBT SUBJECT TO LIMIT: $ 2,089,509
LEGAL BONDED DEBT MARGIN: $ 121,287,681
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
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% 2024 3,178,617,920 119,198,172 2,089,509 117,108,663 1.75% 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
171

Net Revenue
Fiscal Gross Operating Available for
Year Revenue [a] Expenses [b] Debt Service Principal Interest Total Coverage 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 2024 8,114,292 6,812,685 1,301,607 347,000 171,292 518,292 2.51 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Coverage
172

Fiscal Year
City Population
[a] Personal Income [b]
Median
Household
Income [c]
Per Capita
Personal
Income [d]
School
Enrollment [e]
Unemployment Rate
[f]
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%
2024 18,192 1,877,741,856 155,700 103,218 3,739 3.3%
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 Housing 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
173

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174

Employer
Employee
Count
Percentage of City
Total Employer
Employee
Count
Percentage of City
Total
Target 185 1.99% West Contra Costa USD 273 6.35%
West Contra Costa USD 161 1.73% Target 240 5.58%
Kaiser Health Center 144 1.55% K-Mart 124 2.88%
City of Pinole 121 1.30% Best Buy 108 2.51%
Trader Joes 114 1.23% City of Pinole 103 2.40%
In-N-Out Burger 109 1.17% Lucky's/Food Maxx 101 2.35%
Sprouts Farmers Market 95 1.02% Kaiser Health Center 101 2.35% MV Public Transportation, Inc 94 1.01% Pathway to Choices 85 1.98% Lucky 84 0.90% MV Public Transportation, Inc. 79 1.84%
Pathways To Choices 72 0.77% Applebees 75 1.74%
Top 10 Employer Count 1,179 1,289
Total Workforce 9,300 12.68% 4,299 29.98%
Data Sources:

City of Pinole (Business Licensing)
California Department of Education
Employment Development Department
City of Pinole
Current and Nine Years Ago
2024 2015
Principal Employers
175

Date of Incorporation 1903
Form of Government Council-Manager
Number of Employees(including police & fire)
Full-time 93
Part-time 28
Area in square miles 5 square miles
Statistics by Fiscal Year 2024 2023 2022 2021 2020
Fire Protection:**
Number of fire personnel & officers (incl. Reserves) 0 0 17 15 15 Number of calls answered Not Available Not Available 2,548 2,086 2,574 Number of inspections conducted Not Available Not Available 491 375* 231 Number of building plan reviews Not Available Not Available 46 35 29 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 49.3 47.3 46 46 Number of police personnel per thousand population 2.71 2.70 2.54 2.37 2.36

Community Development:

Number of residential building permits 1134 1018 1038 905 843 Valuation of residential building permits 15,523,604 $ 29,010,799 $ 12,320,050 $ 8,978,646 $ 7,043,338 $ Number of commercial building permits 43 46 45 45 43
Valuation of commercial building permits 4,170,802 $ 6,281,089 $ 2,197,897 $ 2,453,802 $ 2,749,091 $ Sewer System:

Daily average treatment in gallons 2,870,000 3,120,000 2,726,016 2,553,562 2,255,055 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
0 5000000
10000000
15000000
20000000
25000000
30000000
35000000
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Valuation of residential building permits
Valuation of commercial building permits
176

Date of Incorporation 1903
Form of Government Council-Manager
Number of Employees(including police & fire)
Full-time 93
Part-time 28
Area in square miles 5 square miles
Statistics by Fiscal Year 2019 2018 2017 2016 2015
Fire Protection:**
Number of fire personnel & officers (incl. Reserves) 15 15 15 15 15 Number of calls answered 2,493 2,515 2,647 2,406 1,908
Number of inspections conducted 168 26 45 404 60
Number of building plan reviews 28 14 34 66 50
Number of fire investigations Not Available Not Available Not Available Not Available 2 Police Protection :

Number of police personnel & officers (incl. Reserves) 46 41 41.5 41.5 40 Number of police personnel per thousand population 2.36 2.13 2.19 2.21 2.11

Community Development:

Number of residential building permits 749 690 777 1027 1061 Valuation of residential building permits 8,012,647 $ 7,293,429 $ 8,613,376 $ 11,969,126 $ 6,485,860 $ Number of commercial building permits 153 84 92 46 22
Valuation of commercial building permits 4,354,070 $ 11,752,779 $ 2,275,774 $ 8,053,064 $ 1,961,346 $ Sewer System:

Daily average treatment in gallons 2,277,331 2,151,096 2,914,000 2,381,151 2,449,863 Maximum daily capacity of treatment plant in gallons 4,060,000 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 Last Ten Fiscal Years
Operating Indicators by Function/Program (Continued)
City of Pinole
0 10
20 30
40 50
60 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Number of police personnel & officers (incl. Reserves)
Number of police personnel per thousand population
177

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178

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function / Program [a]
General government
Administration 5.0 5.0 5.0 5.0 5.5 5.5 6.5 7.5 9.0 8.3
Finance 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.5 3.8
Planning 1.0 1.0 1.0 1.0 1.0 1.0 1.5 2.0 2.0 2.0
Building 2.0 2.0 2.5 3.5 3.5 4.0 4.0 5.0 5.5 5.5
Other 4.0 3.0 3.0 3.0 3.0 2.8 3.8 - - -
Police
Sworn 27.0 27.0 27.0 28.0 28.0 28.0 28.0 28.0 30.0 30.0 Non-sworn 13.0 14.5 14.5 17.5 18.0 18.5 18.2 19.3 19.3 19.3 Fire [b]
Sworn 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 2.5 4.0 6.5 6.5
Maintenance 6.0 10.0 10.0 10.0 10.0 11.3 10.3 12.3 12.3 12.3 Redevelopment - - - - - - - - - -
Parks and recreation 11.0 13.0 13.0 13.0 13.0 11.5 11.5 15.3 16.2 16.2 Wastewater collection and treatment 13.0 10.5 10.5 10.5 10.5 10.5 10.5 11.5 11.5 11.5 Total 103.5 108.0 108.0 113.0 114.0 114.4 115.2 125.2 115.6 115.1 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
179

City Streets:

Miles of streets 63
Number of street lights 374 (city owned)
971 (electric & private utility)
Statistics by Fiscal Year 2024 2023 2022 2021 2020
Police Protection :

Number of patrol units 13 11 11 13 13
Number of security units 23222

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 5,455 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
180

City Streets:

Miles of streets 63
Number of street lights 374 (city owned)
971 (electric & private utility)
Statistics by Fiscal Year 2019 2018 2017 2016 2015
Police Protection :

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 5,416 Schools:

Elementary-public 55444
Elementary-private 22221
Junior High School-public 11111
High School-public 11111
City of Pinole
Capital Asset Statistics by Function/Program (Continued) Last Ten Fiscal Years
181

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182

200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON

COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS

PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Independent Auditors’ Report
To the Honorable Mayor and Members of the City Council
of the City of Pinole
Pinole, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Pinole, California (the “City”), as of and for the year ended June 30, 2024, and the related notes to the basic financial statements, which collectively comprise the City's basic financial statements and have issued our report thereon dated December 27, 2024.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

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

184
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Santa Ana, California
December 27, 2024

200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707
December 27, 2024
To the Honorable Mayor and Members of the City Council
of the City of Pinole
Pinole, California
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Pinole (the “City”) for the year ended June 30, 2024, and have issued our report thereon dated December 27, 2024. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards and the Uniform Guidance, as well as certain information related to the scope and timing of our audit. We have communicated such information in our letter to you dated June 1, 2024. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the basic financial statements.

New Accounting Standards
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 had a moderate effect on the City’s fiscal year ending June 30, 2024.

The most sensitive estimates affecting the City’s financial statements were:
 Management’s estimate of the depreciation on capital assets is based on the industry standard and past experience on actual useful life of the asset groups. We evaluated the key factors and assumptions used to develop the depreciation on capital assets in determining that it is reasonable in relation to the financial statements taken as a whole.
 Management’s estimate of the net other postemployment benefits (“OPEB”) liability is based on the actuarial valuation on total OPEB liability. We evaluated the key factors and assumptions used to develop the total OPEB liability in determining that it is reasonable in relation to the financial statements taken as a whole.
 Management’s estimate of the net pension liabilities is based on the proportionate share of actuarial valuation on total pension liability and the proportionate share of the fiduciary net position for CalPERS plans. We evaluated the key factors and assumptions used to develop the net pension liability in determining that it is reasonable in relation to the financial statements taken as a whole.

Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were:
 Note 1 – Summary of Significant Accounting Policies
 Note 4 – Leases Receivable

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

 Note 9 – Pension Plans
 Note 10 – Other Postemployment Benefits
 Note 12 – Fund Balance
 Note 14 – Stewardship, Compliance and Accountability
 Note 16 – Commitments and Contingencies
 Note 19 – Prior Period Adjustments
The financial statement disclosures are neutral, consistent, and clear.

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements.

Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report.

We are pleased to report that no such disagreements arose during the course of our audit.

Management Representations
We have requested certain representations from management that are included in the management representation letter dated December 27, 2024.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the governmental unit’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the governmental unit’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

Other Matters
We applied certain limited procedures to the Management’s Discussion and Analysis, the Budgetary Comparison Schedules, the Schedule of Changes in the Net Pension Liability and Related Ratios, the Schedule of the City’s Proportionate Share of the Net Pension Liability and Related Ratios, the Schedules of the Contributions, and the Schedule of Changes in Total Other Postemployment Benefits Liability and Related Ratios, which are required supplementary information (“RSI”) that supplements the basic financial statements.

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

Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on the Combining and Individual Nonmajor Fund Financial Statements and Budgetary Comparison Schedules, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

We were not engaged to report on the Introductory and Statistical Sections, which accompany the financial statements but are not RSI. We did not audit or perform other procedures on this other information and we do not express an opinion or provide any assurance on it.

Restriction on Use
This information is intended solely for the 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.

Very truly yours,
Santa Ana, California

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, 2024

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, 2024. 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
January 7, 2025

City of Pinole
Measure S Fund
Schedule of Revenues and Expenditures
For the Year Ended June 30, 2024
3 Revenues:

Sales and use taxes 2,510,464 $
Investment earnings 104,753
Total revenues $ 2,615,217
Expenditures:

Salary 522,766 $
Benefits 665,345
Insurance 64,816
Professional services 755,360
Total expenditures $ 2,008,287
*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, 2024

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, 2024. 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
January 7, 2025

City of Pinole
Measure S Fund
Schedule of Revenues and Expenditures
For the Year Ended June 30, 2024
3 Revenues:

Sales and use taxes 2,508,755 $
Investment earnings 241,003
Other revenue 133,788
Total revenues $ 2,883,546
Expenditures:

Salary 137,505 $
Benefits 25,940
Equipment 2,173,927
Insurance 6,951
Professional services 1,199,360
Administration expense 1,120,101
Total expenditures $ 4,663,784
*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 Ending June 30, 2025

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, 2025. 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, 2025, 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
September 5, 2024

City of Pinole
Appropriations Limit Schedule
For the Year Ending June 30, 2025
3 Amount Source
A. Appropriations Limit FY 2023-2024 164,056,561 $ Prior year B. Adjustment Factors:
1) Growth in County Population 1.0012 State Department of Finance 2) California per Capita Personal Income Growth 1.0362 State Department of Finance 3) Adjustment Factor 1.0374 (B1*B2)
C. Annual Adjustment Increase 6,142,842 [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 6,142,842 (C+D)
F. Appropriations Limit FY 2024-2025 170,199,403 $ (A+E) See accompanying Notes to Appropriations Limit Schedule.

City of Pinole
Notes to Appropriations Limit Schedule
For the Year Ending June 30, 2025
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 2024-2025 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 2024-2025 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 2024-2025.