Agenda packet — Pittsburg City Council, May 6, 2024 (part 2 of 3)

BEFORE THE PLANNING COMMISSION OF THE CITY OF PITTSBURG

In the Matter of:

Recommending that the City Council )
Certify the Final Environmental Impact )
Report and adopt Findings of )
Significance and a Statement of ) Resolution No. 10245 Overriding Considerations for the )
Envision Pittsburg: 2040 General )
Plan Update (AP-24-0001 GP, ER) )

The Planning Commission DOES FIND AND RESOLVE as follows:

Section 1. Background

A. On November 19, 2019, the City Council adopted a Resolution authorizing the planning consultant De Novo Planning Group to begin working on the preparation of the 2040 General Plan Update and associated Environmental Impact Report (EIR) under the California Environmental Quality Act (CEQA) (Public Resources Code § 21000, et seq.). The prior comprehensive update of the City of Pittsburg General Plan was adopted by the City Council on November 16, 2001.

B. Since the initial kick-off in 2019 for the 2040 General Plan Update, the General Plan Update team has held several Visioning Workshops. City residents and stakeholders attended workshops at the Pittsburg City Hall. Each Visioning Workshop included a presentation by the General Plan Update team that explained the role of the General Plan, an overview of the General Plan Update process, and an opportunity for the Visioning Workshop participants to ask questions and obtain further information on the process and the role of the community.

C. As a result of the Visioning Workshops, the feedback provided by the community, and through numerous pop-up events, the City had a broad, overarching vision for the development of the General Plan Update and identified key community values and priorities for careful consideration in the General Plan Update process.

D. In August and September 2020, the City hosted an on-line virtual workshop and survey to receive community input related to land use preferences for four opportunity areas in the City. The virtual workshop informed the community of the City’s related efforts for the 2040 Pittsburg General Plan Update and the Brownfields Revitalization Planning effort and helped to create a Land Use Alternatives Report and subsequent maps.

E. In 2021, the City released the Land Use Alternatives and Capacity Report and conducted a survey and a series of workshops, including community workshops and joint workshops with the City Council and Planning Commission, to receive feedback on the alternatives.

Attachment 9
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F. The Land Use Alternatives and Capacity Report presented possible modifications associated with three alternatives (Alternatives A through C) to land use and development intensity in a manner that will support the community’s vision for increased economic development opportunities, a range of housing options, preservation of established residential neighborhoods, and quality job growth.

G. As a result of Planning Commission and City Council consideration of the Land Use Alternatives and Capacity Report and the community’s feedback regarding the alternatives, the Planning Commission and City Council provided input that resulted in a hybrid alternative land use map alternative, Alternative D, which contained elements of the three initial alternatives. The Alternative D Land Use map was used as the base map for the 2040 General Plan Update.

H. The 2040 General Plan includes this base map and is a policy document that serves as the City’s General Plan. The 2040 General Plan is supported by a number of reports and documents that informed its development. However, the actual amount of development that will occur throughout the planning horizon of the General Plan is based on many factors outside of the City’s control. Actual future development will depend on future real estate and labor market conditions, property owner preferences and decisions, site-specific constraints, and other factors.

I. On April 20, 2022, a Notice of Preparation (NOP) for an EIR for the 2040 General Plan Update was circulated to trustee and responsible agencies, the State Clearinghouse, and the public. A scoping meeting was held on May 5, 2022, via a web-based video meeting. No public or agency comments on the NOP related to the EIR analysis were presented or submitted during the scoping meeting.

However, during the 30-day public review period for the NOP, which ended on May 20, 2022, ten written comment letters were received on the NOP.

J. On December 12, 2023, the City circulated a Draft EIR to the State Clearinghouse, trustee and responsible agencies, and the public. A Notice of Completion (NOC) was filed, a Notice of Availability (NOA) was published, and a 60-day public review period was provided between December 12, 2023, and February 9, 2024, to receive public and agency comments on the adequacy of the environmental analysis contained in the Draft EIR. During the public review period, the City conducted three public workshops to receive community input on the General Plan Update.

Workshops were held on January 31, February 1, and February 3, 2024. The City received 17 comment letters during the 60-day review period for the Draft EIR.

K. A Final EIR was prepared and circulated on April 12, 2024, to address comments received in response to the Draft EIR. The City prepared written responses to the Draft EIR comments and made textual changes to the Draft EIR where warranted.

The responses to the comments are provided in Final EIR in Chapter 2.0, and all changes to the text of the Draft EIR are summarized in Chapter 3.0. Responses to comments received during the comment period for the Draft EIR do not involve any new significant impacts or “significant new information” that would require recirculation of the Draft EIR pursuant to CEQA Guidelines Section 15088.5.

L. The Final EIR identified certain environmental effects that could result from approval 149

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of the 2040 General Plan Update. Many of these potentially significant impacts will be avoided or substantially lessened through implementation of the policies and actions incorporated into the 2040 General Plan itself. These policies and actions are also identified, corresponding to the potential impacts they would reduce.

M. The FEIR identified potentially significant effects on the environment, which would not be mitigated to a level of less than significant after mitigation. In accordance with CEQA Guidelines Section 15093, the City Council will balance the benefits of the General Plan Update against the unavoidable significant impacts and will determine if specific economic, social, or other benefits of the General Plan Update outweigh the potentially significant, unavoidable effects on the environment.

N. Notice of the April 23, 2024, public hearing for a recommendation by the Planning Commission for the City Council to adopt the 2040 Draft General Plan and Certify the Final Environmental Impact report was published, posted, and emailed to all interested parties on Friday April 12, 2024.

O. On or before April 12, 2024, in accordance with Government Code sections 65090 and 65091, and Pittsburg Municipal Code (PMC) section 18.14.020, a “Notice of Public Hearing” for the April 23, 2024, public hearing on this item was published in the East County Times; posted at City Hall and in the “Public Notices” section of the city website; was mailed via first class or electronic mail to all local service agencies expected to provide future services and to individuals and groups who had previously filed written request for such notice. In addition, although not required, the notice was also published on www.nextdoor.com (“Nextdoor”).

P. On April 23, 2024, the Planning Commission held a public hearing on Planning Application No. 24-0001 (GP, ER), at which time all persons had an opportunity to and did present oral and/or written testimony, which was considered by the Planning Commission.

Section 2. Findings

A. Based on the full administrative record before the Planning Commission, including but not limited to the Planning Commission Staff Report entitled, “Recommendation by the Planning Commission to the City Council for Adoption of the Envision Pittsburg: 2040 General Plan Update and Certification of the Final Environmental Impact Report (AP-24-0001),”; all the information contained in the Planning Division files on the project, incorporated herein by reference and available for review in the Planning Division located at 65 Civic Avenue in Pittsburg; reports, technical studies, analyses, and memoranda; and all written and oral testimony presented at the public hearing, the Planning Commission finds that:

1. All recitals above are true and correct and are incorporated herein by reference.

2. The 2040 Draft General Plan Update was processed, including but not limited to all public notices, in the time and manner prescribed by State and local law, including CEQA and the CEQA Guidelines, 14. Cal. Code Regs. § 15000 et seq.

Agencies and interested members of the public have been afforded ample notice 150

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and opportunity to comment on the 2040 General Plan Update and environmental documents, including the Final EIR .

3. All impacts identified in the Final EIR, which also includes all responses to comments on the Draft EIR and an Errata, have been independently reviewed and considered, prior to making a recommendation on the 2040 Draft General Plan Update.

Section 3. Recommendation
Based on the findings set forth above, the Planning Commission hereby recommends that the City Council:

A. Certify pursuant to CEQA Guidelines Section 15090 the Final EIR for the 2040 General Plan Update and adopt Findings of Significance, and a Statement of Overriding Considerations as appropriate.

Section 4. Effective Date

This resolution shall take effect immediately upon its adoption.

On motion by Commissioner Smith seconded by Commissioner Popova, the foregoing resolution was passed and adopted this 23rd day of April 2024, by the Planning Commission of the City of Pittsburg, California by the following vote:

AYES: Gordon, Robinson, Smith, Foster, Kobata, Popova, Stokes

NAYES:

ABSTAIN:

ABSENT:

I hereby certify that the above Resolution No. 10245 was adopted by the Planning Commission of the City of Pittsburg on April 23, 2024.

_______________________________
JOHN L. FUNDERBURG, III, M.S. SECRETARY

PITTSBURG PLANNING COMMISSION
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BEFORE THE PLANNING COMMISSION OF THE CITY OF PITTSBURG

In the Matter of:

Recommending that the City Council Adopt )
the Proposed Envision Pittsburg: ) Resolution No. 10246 2040 General Plan Update and Associated )
Text,Tables and Figures (AP-24-0001 GP,ER)

The Planning Commission DOES FIND AND RESOLVE as follows:

Section 1. Background

Attachment 10
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I. On December 12, 2023, copies of the 2040 Draft General Plan and Draft EIR were released for public review and comment. The public review and comment period ended on February 9, 2024. The City received a combined 16 comment letters and emails from interested parties, local agencies, and residents on the Draft General Plan. The 16 comment letters received focused on the 2040 Draft General Plan and did not address the adequacy of the Draft EIR and were addressed by updating text, tables, and figures as necessary in the Draft General Plan.

J. Notice of the April 23, 2024, public hearing for a recommendation by the Planning Commission for the City Council to adopt the 2040 General Plan and Certify the Final Environmental Impact report was published, posted, and emailed to all interested parties on Friday April 12, 2024.

K. Government Code Section 65358 provides that the legislative body of a local government agency may amend its general plan, in whole or in part, if it finds that the amendment would be in the public interest. No more than four general plan amendments to each required element may be adopted within one calendar year.

For the 2024 calendar year, the City Council has adopted one General Plan amendment to the General Plan.

L. The California Government Code and Pittsburg Municipal Code (PMC) identify the Planning Commission as the advisory body to the City Council on amendments to the General Plan. Government Code section 65353(a) requires that the Commission conduct at least one public hearing prior to making its recommendation on a proposed General Plan amendment.

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M. On or before April 12, 2024, in accordance with Government Code sections 65090 and 65091, and PMC section 18.14.020, a “Notice of Public Hearing” for the April 23,2024, public hearing on this item was published in the East County Times; posted at City Hall and in the “Public Notices” section of the city website; was mailed via first class or electronic mail to all local service agencies expected to provide future services and to individuals and groups who had previously filed written request for such notice. In addition, although not required, the notice was also published on www.nextdoor.com (“Nextdoor”).

N. On April 23, 2024, the Planning Commission held a public hearing on Planning Application No. 24-0001 (GP, ER), at which time all persons had an opportunity to and did present oral and/or written testimony, which was considered by the Planning Commission.

Section 2. Findings

1. All recitals above are true and correct and are incorporated herein by reference.

2. The 2040 General Plan Update was processed, including but not limited to all public notices, in the time and manner prescribed by State and local law, including Government Code §65350 et seq., CEQA, and the CEQA Guidelines,

14. Cal. Code Regs. § 15000 et seq. Agencies and interested members of the public have been afforded ample notice and opportunity to comment on the 2040 Draft General Plan Update and environmental documents, including the Final EIR.

3. The 2040 General Plan Update contains a thorough and adequate treatment of land use, economic, environmental, and development issues for the area affected by the Project.

4. The 2040 General Plan Update is internally consistent and is not a detriment to the public interest, health, safety, and welfare of the City.

5. The 2040 General Plan Update encourages appropriate land uses, enhancements to the community’s character, actions to support adequate services and resources for youth, seniors, families, and disadvantaged populations, conservation of natural resources, new jobs-generating development, provisions of urban services and utilities, multi-modal transportation system and facilities, and enhancement of the property tax base. 154

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6. The 2040 General Plan Update includes a wide variety of objectives, policies, and implementing programs designed to enhance the public health, safety, and welfare, including the Land Use, Environmental Justice, and Safety Elements which address compatibility of land uses and protection of the public, including disadvantaged communities and sensitive receptors, from adverse effects of development, soil limitations, flood hazards, potable water supplies, emergency preparedness, fire protection, police protection, and climate-related changes.

7. All impacts identified in the Final EIR, which also includes all responses to comments on the Draft EIR and an Errata, have been independently reviewed and considered, prior to making a recommendation on the 2040 Draft General Plan Update.

Section 3. Recommendation
Based on the findings set forth above, and pursuant to Government Code section 65354, the Planning Commission hereby recommends that the City Council adopt a resolution (as applicable) to:

A. Amend and update the General Plan as substantially presented in “Exhibits A and B” of this resolution, as well as modify other General Plan text, tables, and charts as necessary to reflect the change in land use acreages and maintain internal consistency.

B. Authorize staff to make non-substantive changes to the 2040 General Plan, including corrections, fixing typographical or grammatical errors, and updating maps to reflect boundary changes.

Section 4. Effective Date

This resolution shall take effect immediately upon its adoption.

On motion by Commissioner Robinson seconded by Commissioner Gordon the foregoing resolution was passed and adopted this 23rd day of April 2024, by the Planning Commission of the City of Pittsburg, California by the following vote:

AYES: Gordon, Robinson, Smith, Foster, Kobata, Popova, Stokes

NAYES:

ABSTAIN:

ABSENT:

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I hereby certify that the above Resolution No. 10246 was adopted by the Planning Commission of the City of Pittsburg on April 23, 2024.

_______________________________
JOHN L. FUNDERBURG, III, M.S. SECRETARY

PITTSBURG PLANNING COMMISSION

156

NOTICE OF PUBLIC HEARING

The Pittsburg City Council will hold a public hearing on:

Date: May 6, 2024

Time: 7:00 p.m.

Place: City Council Chamber at City Hall
65 Civic Avenue, Pittsburg, California

Concerning the following matter:

Public Hearing on a Recommendation by the Planning Commission to the City Council for Adoption of the Envision Pittsburg: Comprehensive 2040 General Plan Update - "April 2024 Adoption Draft" and Certification of the Final Environmental Impact Report (AP-24-0001 GP, ER)

This is a public hearing of the City Council for Adoption of a Resolution for approval of the City of Pittsburg 2040 Final General Plan and Adoption of a Resolution for Certification of the associated Final Environmental Impact Report. The proposed project is a long-term General Plan consisting of policies that will guide future development activities and City actions. No specific development projects are proposed as part of the Plan.

You are invited to submit comments regarding any aspect of this matter in writing or verbally at the public hearing. If you challenge the above matter in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the Planning Commission at, or prior to, the public hearing.

For further details on this matter, contact John Funderburg, Assistant Director of Community and Economic Development, at 65 Civic Avenue, Pittsburg, by telephone at (925) 252-4043, through e-mail at [email protected], or by fax at (925) 252- 4814.

/s/

JOHN FUNDERBURG, SECRETARY

PITTSBURG PLANNING COMMISSION

Attachment 11
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OFFICE OF THE CITY MANAGER/EXECUTIVE DIRECTOR
65 Civic Avenue
Pittsburg, CA 94565
TO: Mayor and Council Members
FROM: Garrett Evans, City Manager
SUBJECT: Receive and File the Annual Comprehensive Financial Report (ACFR), the Independent Accountants’ Report on Agreed-Upon Procedures Applied to the Appropriations Limit Schedule (GANN), Memorandum on Internal Control (MOIC) and Required Communications Report for Fiscal Year Ended June 30, 2023
MEETING DATE: May 6, 2024

EXECUTIVE SUMMARY
The Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2023, has been completed and complies with the Governmental Accounting Standards Board (GASB) reporting requirements. The City has received an unqualified or “clean opinion” by the City’s auditing firm, Maze and Associates, Certified Public Accountants (Maze).

FISCAL IMPACT
There is no fiscal impact to receive and file the ACFR, GANN, MOIC and Required Communications Reports.

RECOMMENDATION
Receive and file the ACFR, GANN, MOIC and Required Communication Reports for fiscal year ended June 30, 2023.

BACKGROUND
Pursuant to and in compliance with GASB 34, the City is required to receive and file its ACFR at the end of each year. The ACFR is governed by GASB and includes a set of financial statements comprised of financial reports of the City, along with notes, narratives, and other supporting data. The purpose of the ACFR is to be transparent about the use of taxpayer’s money and to provide the public with a detailed accounting of all City financial activities.
158
The GANN report is required to meet the requirements of Section 1.5 of Article XIIIB of the California Constitution.

The City has contracted Maze to audit the City’s financial statements for the year ended June 30, 2023, and to provide a report on internal controls over financial reporting and compliance with laws and regulations and other matters.

The Required Communications Report is a professional standards requirement that our auditors, Maze provides to the City with information about their responsibilities under generally accepted auditing standards, Government Auditing Standards and the Uniform Guidance, as well as certain information related to the planned scope and timing of City’s audit.

SUBCOMMITTEE FINDINGS
This item was briefly mentioned during the April 26, 2024 Finance Management Subcommittee.

STAFF ANALYSIS
Maze has completed its review and examination of the City’s financial transactions and statements for the fiscal year end June 30, 2023. Maze has expressed an opinion that the City’s financial statements are presented fairly, in all material respects, and in conformity with the accounting principles generally accepted in the United States of America.

The following is a summary of the financial highlights from the Management’s Discussion and Analysis section of the ACFR:

The assets and deferred outflow of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the FY 2022/23 by $443.2 million (M) (net position).

The City’s total net position of $443.2M increased from the prior FY 2021/22 by $24.9M.

See below for breakdown of governmental and business type activities:

As of June 30, 2023, the fund balance (total assets and deferred outflows minus total liabilities and deferred inflows) for the General Fund, which includes the Budget Stabilization and Economic Development funds, was $27.6M. The detail of this amount is as follows:
$0.4M was designated as "Nonspendable" for items that are not in a spendable form such as deposits, interfund advances and inventory, $1.6M was designated as "Assigned" for economic development activities and encumbrances intended to be used for specific purposes designated by the City Council and $25.6M as unassigned. The unassigned balance consists of $23.2M in General Fund operating reserve available to cover expenses in the event of an emergency and $2.4M in the Budget Stabilization Fund that can be used to balance future budgets subject to the limits of the Fiscal Sustainability Ordinance. 159
As of June 30, 2023, the City's net position from business type activities (enterprise funds) increased by approximately $6.9M from $168.8M to $175.7M, primarily because of net increase in capital assets, along with a net increase in deferred outflows and offsetting of costs in personnel, operating expenses, and deferred inflows.

In the MOIC report, Maze identified one significant deficiency. A significant deficiency in internal control is less severe than material weakness, yet important enough to merit attention from those charged with governance. During the auditors testing for fiscal year 2023 audit, they noted that the City’s bank reconciliations were not prepared and reviewed on a timely matter, due to delays related to a new Housing software implementation that occurred during fiscal year 2023 combined with staff shortages within the Finance and Housing departments.

City management will review the internal control process and staffing allocations of duties to make sure Bank Reconciliations are completed, reviewed, and approved in a timely matter, within 30-45 days.

ATTACHMENTS: Annual Comprehensive Financial Report for the Fiscal Year ended June 30, 2023
Independent Accountants’ Report on Agreed-Upon Procedures Applied to Appropriations Limit Schedule for Fiscal Year Ended June 30, 2023
Memorandum on Internal Controls for Fiscal Year Ended June 30, 2023
Required Communications Report for the Fiscal Year ended June 30,2023
Report Prepared By: Laura Mendez, Finance Reporting Manager Reviewed By: Paul Rodrigues, Finance Director
160

Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2023

FY 2022-23

City of Pittsburg, California
www.pittsburgca.gov
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162

City of Pittsburg
California

Annual Comprehensive
Financial Report
Fiscal Year Ended June 30, 2023

Prepared by the Finance Department

Paul Rodrigues, CPA
Finance Director

Laura Mendez, CPA
Division Manager, Financial Reporting

163

CITY OF PITTSBURG
Annual Comprehensive Financial Report
June 30, 2023

164
City of Pittsburg
Basic Financial Statements
For the Year Ended June 30, 2023
Table of Contents

INTRODUCTORY SECTION:

City Manager and Finance Director's Letter of Transmittal i Organization Chart viii
Officials of the City of Pittsburg, California ix
GFOA Certificate of Achievement for Excellence in Financial Reporting x Map of the City xi

FINANCIAL SECTION:

Independent Auditor’s Report 1

Management's Discussion and Analysis 5

Basic Financial Statements: 17

Government-Wide Financial Statements: 19
Statement of Net Position 21
Statement of Activities 22

Fund Financial Statements: 23
Governmental Funds: 25
Balance Sheet 26
Reconciliation of the Governmental Funds Balance Sheet with the Statement of Net Position 28
Statement of Revenues, Expenditures, and Changes in Fund Balances 30 Reconciliation of the Net Change in Fund Balances – Total Governmental Funds with the Statement of Activities 32

Proprietary Funds: 33
Statement of Net Position 34
Statement of Revenues, Expenses and Changes in Net Position 36 Statement of Cash Flows 38

Fiduciary Funds: 41
Statement of Fiduciary Net Position 43
Statement of Changes in Fiduciary Net Position 44

Notes to Basic Financial Statements 45

Required Supplementary Information: 123

Budgets and Budgetary Accounting
Budgetary Comparison Schedule: 124
General Fund 126
Housing Authority (Section 8) Special Revenue Fund 127 Successor Agency Housing Special Revenue Fund 128
Miscellaneous Grants Special Revenue Fund 129

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City of Pittsburg
Basic Financial Statements
For the Year Ended June 30, 2023
Table of Contents Continued

Required Supplementary Information (Continued):

Defined Pension Plan:

Agent Multiple Employer Pension Plan:

Schedule of Changes in the Net Pension Liability and Related Ratios 130 Schedule of Contributions – Agent Multiple Employer Pension Plan 131 Cost-Sharing Defined Pension:

Schedule of Changes in the Net Pension Liability and Related Ratios 132 Schedule of Contributions – A Cost Sharing Defined Pension Plan 133 Other Post-Employment Benefit Plan:

Schedule of Changes in the Net OPEB Liability and Related Ratios 134 Schedule of Contributions – Agent Multiple Employer OPEB Plan 135

Supplementary Information:

137

Non-Major Governmental Funds: 139
Combining Balance Sheets 144
Combining Statements of Revenues, Expenditures, and Changes in Fund Balances 154 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 164

Internal Service Funds: 183
Combining Statement of Net Position 184
Combining Statement of Revenues, Expenses and Changes in Fund Net Position 186 Combining Statement of Cash Flows 188

Custodial Funds: 191
Combining Statement of Net Position 192
Combining Statement of Changes in Net Position 193

STATISTICAL SECTION: 195
Net Position by Component – Last Ten Fiscal Years 197
Changes in Net Position – Last Ten Fiscal Years 198
Fund Balances of Governmental Funds – First Two Fiscal Years 201 Fund Balances of Governmental Funds – Last Eight Fiscal Years 202 Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years 203 Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years 204 Property Tax Rates - All Overlapping Governments – Last Ten Fiscal Years 205 Principal Property Taxpayers – Current Year and Nine Years Ago 206 Property Tax Levies and Collections as of June 30 – Last Ten Fiscal Years 207 Ratio of Outstanding Debt by Type – Last Ten Fiscal Years 208 Ratio of General Government Debt Outstanding – Last Ten Fiscal Years 209 Computation of Direct and Overlapping Debt – June 30, 2023 210 Computation of Legal Bonded Debt Margin – June 30, 2023 211

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City of Pittsburg
Basic Financial Statements
For the Year Ended June 30, 2023
Table of Contents Continued

STATISTICAL SECTION (Continued):

Revenue Bond Coverage Wastewater Revenue Bonds 212
Revenue Bond Coverage 2016 (Refunded 1997, 2005 & 2008) Water Revenue Bonds 213 Successor Agency Bonded Debt Pledged Revenue Coverage Tax Allocation Bonds – Last Ten Fiscal Years 214
Demographic and Economic Statistics – Last Ten Fiscal Years 215 Principal Employers - Current Year and Nine Years Ago 216 Actual Full-Time Equivalent City Government Employees by Function – Last Ten Fiscal Years 217
Operating Indicators by Function/Program – Last Ten Fiscal Years 218 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years 220 167

CITY OF PITTSBURG
Annual Comprehensive Financial Report
June 30, 2023

168

65 Civic Avenue
Pittsburg, CA 94565
P: (925) 252-6900
www.pittsburgca.gov

March 25, 2024

Honorable Mayor
Members of the City Council
And Residents of Pittsburg

We are pleased to present the City of Pittsburg Annual Comprehensive Financial Report (ACFR) for the year ending June 30, 2023 (FY 2022-23). The information in this ACFR is prepared in accordance with “Generally Accepted Accounting Principles” (GAAP) and includes an unmodified opinion on the report by the City’s independent certified public accountants. Although we rely on the standards and expertise of these external authorities, the City is responsible for the a ccuracy and fairness of this report, inclusive of all disclosures that are necessary to enable the reader to understand the City’s operations.

For those readers interested in a more detailed review of the City’s financial statements, a narrative section called Management’s Discussion and Analysis (MDA) has been included as part of the Financial Section. The MDA reports on the financial highlights of the City and provides additional analysis on the variances and trends reported as part of the financial statements. The MDA also discloses significant items affecting the financial condition of the City and is designed to be read in conjunction with this letter of transmittal.

City Profile

The City was incorporated in 1903 and is located along the Sacramento-San Joaquin River Delta, situated on the north side of Mount Diablo. Pittsburg is located in the northeast part of Contra Costa County.

The City is a general law city and operates utilizing the City Council-Manager form of government. The five City Council members are elected at large for staggered four-year terms to govern the City. Also elected to fo ur-year terms are the City Treasurer and City Clerk. The City Council is responsible for es tablishing goals, priorities, and policies; adopting an annual budget; appointing commissions and committees; and hiring the City Manager and City Attorney. The City Manager is responsible for implementing the City Council’s policies, overseeing the day–to-day operations of the City and appointing the directors of the City’s departments.

The City provides a full range of municipal services, including police, water treatment and distribution, sewer collection, streets, cultural and recreational facilities, public works, parks, economic development, planning, zoning , building inspection, code enforcement, housing assistance, marina operations, energy distribution, engineering, and general administration. The Contra Costa County Fire Protection District provides fire protection services for the City.
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65 Civic Avenue
Pittsburg, CA 94565
P: (925) 252-6900
www.pittsburgca.gov

Reporting Entities

The financial statements included in this ACFR present the City (the primary government) with all the City funds, Housing Authority, Successor Agency (SA), Public Infrastructure Financing Authority (PIFA), Pittsburg Power Company (PPC), Southwest Pittsburg Geologic Hazard Abatement District II (GHA D II) and Pittsburg Arts and Community Foundation (PACF) as component units. Thes e six component units are separate legal entities; however, the members of the City Council also serve as members of the Governing Boards of these component units. Th erefore, the financial information for the Housing Authority, SA, PIFA, PPC, GHAD II and PACF are blended with the City’s financial information.

Economic Conditions and Outlook

Pittsburg’s population has grown to approx imately 77,572. The unemployment rate slightly increased from 3.9% in FY 21-22 to 4.3% in FY 22-23. During this past year, the City continued to see increased revenues from sales, property, and other taxes.

The City’s sales tax revenue increased by 8.0% or $1.6 million this fiscal year due to a favorable commercial/retail business mi x which sustained during the COVID-19 pandemic, the continuing trend of strong onl ine and internet business activity that provided additional stream of sales tax revenue to the City for the past three fiscal years.

The City's Property Assessment Value (AV) increased by 12.6% from the previous year resulting from the continuing consumer housing demands. This brought additional revenue of $380,775, a 7.8% increase in revenue to the City. The City anticipates this to stabilize or slowdown in the future as the Federal Reserve continues to increase the borrowing rates.

Franchise Fees increased by 6.2% or $364, 952 mainly due to the increase of refuse charges for residential, commercial, and industrial users.

Motor Vehicle revenue increased by 12.4% or $727,194 consistent with the City's increase in property assessment values.

Gas Tax (Highway User's Tax) increased by 11.1% or $359,723 because of continuing increased gas prices.

While revenues continue to improve, staff throughout the City have continued to be diligent in maintaining a low level of costs to deliver the core services to both the residents and the business community.

The City’s Economic Development Division continues to partner with various local organizations to assist existing businesses, attract new businesses, and train and enable residents to find employment opportunities.

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170

65 Civic Avenue
Pittsburg, CA 94565
P: (925) 252-6900
www.pittsburgca.gov

The City partnered with NorCal SBDC to form the Pittsburg EATS! Program. Utilizing ARPA funds, the Pittsburg EATS! Program invited local restaurants and caterers to learn about the restaurant industry from experts in the restaurant industry. After taking a free 7-week course, the restaurants were eligib le for grants up to $10,000 to help fund improvements to their operations. The City also successfully hired an Economic Development Manager to help further implement the City’s Economic goals, objectives, and programs. The City proudly supports wo rkforce development programs such as the Future Build Program which provides training for construction jobs, and is working with Civicorps and People Who Care Foundation to support additional local job training programs.

Improvement continues on the City’s main thoroughfare with the addition of the 117 room Courtyard by Marriott Hotel and a brand- new Starbucks coffee house along Railroad Avenue. The City welcomed the opening of Share Tea and Del Pacifico Mexican Seafood and Sushi Bar at the Century Plaza Shopping Center, Mayu’s Cake and Bakery at the Highland Square Shopping Center, and Nfinit o Martial Arts in downtown among many other notable business openings. Construction continues with the new Law Enforcement Training Center at the previous In-Shape fitness building at Delta Gateway, which will serve as a regional training center hub for law enforcement personnel across the State.

General Fund Condition and Long-term Plans

The City developed a 20-year General Fund Forecast and Balancing Plan (“20-Year Plan”) to assist City management and City Council on the General Fund budget and use of the Budget Stabilization Fund. Periodic ally, the 20-Year Plan is updated based on current revenue and expenditure information.

This plan incorporates anticipated fluctuat ions of revenues and expenditures over a longer term, thus allowing the City to manage its affairs in a prudent fiscal manner, while providing services to residents and businesses necessary for a growing community.

Fiscal Sustainability Ordinance

In June 2017, the City passed an updated Fi scal Sustainability Ordinance to ensure the City protects its revenues and to ensure pr oper fiscal responsibility. As part of the Ordinance, reserve levels and funding mechanics were mandated to provide for emergencies and ensure that proper fiscal re serve levels were maintained. Within the Ordinance, reserve levels were set at 30% of annual operating expenses for the City’s General Fund, Internal Service Funds and Enterprise Funds. The reserve level was placed at a percentage of oper ating expenses rather than a static number to ensure adequate reserve levels are maintained over time. The City also established a Budget Stabilization Fund to provide a minimum of $2 million or 5% of the City’s annual General Fund operating expenses. The Budget Stabiliz ation Fund was fully funded in FY 2017-

18. Throughout the year staff presents updates to the Finance Subcommittee regarding the reserve levels to ensure the City is in compliance with the Ordinance.

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65 Civic Avenue
Pittsburg, CA 94565
P: (925) 252-6900
www.pittsburgca.gov

Major Initiatives:

Capital Projects Completed FY 2022-2023:

• California Theatre Balcony Occupancy
• West Leland Road Safety Improvement
• Rossmoor Neighborhood Pavement Maintenance
• De Anza Park Exercise Stations
• Pittsburg Antioch Highway Patch Paving, Sealing, and Striping • Willow Landing and Sugartree Neighborho ods ADA Curb Ramp Installation • Bodega Court Water System Loop
• (Phase l) Buchanan Road Emergency Waterline Repair

Capital Projects Scheduled for Construction during FY 2023-2024:

• Hillview Terrace and Highlands Neig hborhoods ADA Curb Ramp Project • Oak Hills Park Restroom
• Stoneman Avenue Intersection Improvements
• Police Department Electric Vehicle Chargers
• Basin 3 Dredge
• Loveridge Road Maintenance
• East Leland Road Pavement Maintenance
• Police Evidence and Intake Room Improvements
• HDPE Water Main Reducer Emergency Repair
• Four Flashing Beacons at School Crossings for Safe Routes to Schools • Carnegie Manor and Parkside Manor Neighborhoods CDBG Curb Ramps • West Leland Street Lighting
• Corp Yard Fuel Tank AST
• Willow Pass Storm Drain Permanent Repair
• Water Treatment Plant Reservoir Genius Bar
• Frontage Road Trail Improvements
• BART Pedestrian and Bike Connectivity Project
• Crestview Drive Pavement Improvements
• Buchanan Slope Repair
• Safety signage and striping improvements along major arterial roadways • 23/24 Pavement Management - Zone 3
• Traffic Signal Improvements
• OBAG 2 – Pavement Improvements
• Railroad Avenue Beautification
• Buchanan Pond Loop
• California Theatre Marquee Sign & Bathroom
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65 Civic Avenue
Pittsburg, CA 94565
P: (925) 252-6900
www.pittsburgca.gov

• East 3 rd Street Remediation
• Central Harbor Park/Boat Launch
• Americana Park Bypass Channel

Other Information

The City is responsible for establishing an d maintaining internal control structures designed to ensure that the assets are protected from loss, theft, or misuse and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with GAAP. The in ternal control structures are designed to provide reasonable, but not absolute, assu rance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management.

Single Audit and Compliance

As a recipient of federal and state financial assistance, the City is responsible for ensuring that an adequate internal control structure is in place to ensure compliance with applicable laws and regulations related to those programs. This internal control structure is subject to periodic evaluation by management and the Finance staff of the City. In management’s opinion, the City’s internal controls adequately safeguard assets and provide reasonable assurance of the proper recording of financial transactions. In addition, the results of the City's Single Audit for the fiscal year ended June 30, 2022, provided no instances of material weaknesses in the internal control structure or significant violations of applicable laws and regulations.

Budgetary Controls

The City maintains budgetary controls to safeguard City assets and ensures compliance with legal provisions embodied in the annual appropriated budget as approved by the City Council. Activities of the General Fund, Special Revenue funds and Capital Projects funds are included in the annual appropriated bud get. The level of budgetary control (the level at which expenditures cannot legally exceed the appropriated amount) is established at the fund level. The City also applies and maintains an encumbrance accounting system as a technique to accomplishing budgetary control. As demonstrated by the statements and schedules included in the financial section of this report, the City continues to meet its responsibility for sound financial management. The City has received the “Government Finance Officers Association’s Distinguished Budget Presentation” award for its budget document.

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65 Civic Avenue
Pittsburg, CA 94565
P: (925) 252-6900
www.pittsburgca.gov

Appropriations Limit

Proposition 4, the “Gann” initiative, was pas sed by California voters in 1978 and is intended to limit governmental General Fund appropriations. The appropriation limit is calculated each year based upon FY 1978-79 appropriations, modified by the composite consumer price index, and population changes that have occurred in subsequent years.

The City’s General Fund appropriation limit for FY 2022-23 amounted to $200.8 million.

The City’s FY 2022-23 General Fund budget was $57.7 million, which is below the appropriation limit.

Cash Management

The City temporarily holds idle cash in th e Local Agency Investment Fund (LAIF) as administered by the Treasurer of the State of California. LAIF invests in obligations of the United States Treasury, Federal Agency Coupons and Discount Notes, Medium Term Notes, and Certificates of Deposit. These investments are permitted under an investment policy adopted by the City Council which defines eligible investments and maturities of the City’s investment portfolio and requires securities to be held by the City or by a qualified custodial institution and registered in the name of the City. The quarterly return on LAIF pooled investments on June 30, 2023, was 3.15%, a notable increase when compared to the prior fiscal year of 0.75%. Total LAIF interest earnings were $1,521,226 for FY 2022-23 an increase of $1,240,491 compared to the prior fiscal year amount of $280,735.

Risk Management

The City is self-insured for the first $25,000 of each loss and maintains excess liability insurance through the Municipal Pooling Authority (MPA). The City is self-insured for liability occurrences over $29 million per occu rrence. The City also maintains statutory excess workers’ compensation insurance through the MPA.

Independent Audit

Independent public accounting firm, Maze & Associates, Certified Public Accountants has examined the financial statements of the City and its affiliated agencies. Their opinion on the City’s financial statements and supplemental information is included within this report.

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Residents of Pittsburg

➢ CITY GOVERNMENT ORGANIZATION

Engineering
Recreation
California
Theatre

Community
Services
CDBG
Deputy City Manager -
Operations
City Council
City Attorney
Treasurer
City Clerk
Deputy City Manager –
Admin Services
City Manager
Records and Council
Services
Economic
Development
Police Department
Community &
Economic
Development
Finance
Human
Resources
Public
Works &
Engineering
Code
Enforcement
Planning

Building

Contracts &
Property
Management
Housing
Authority
Pittsburg Power
/ Island Energy
Successor
Agency to
Former RDA
Risk
Management
IT
Environmental
Affairs
Waterfront
Operations
Marina
Operations
Water
Operations
Sewer
Operations
Citywide
Maintenance
Marina
Maintenance
Building
Maintenance
Fleet
Maintenance
Environmental
Services
Public Works

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City of Pittsburg
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2023
City Council
Shanelle Scales-Preston, Mayor
Juan Antonio Banales, Vice-Mayor
Jelani Killings, Council Member
Dionne Adams, Council Member
Angelica Lopez, Council Member
Other Elected Officials
Alice E. Evenson, City Clerk
Nancy L. Parent, City Treasurer
City Manager
Garrett Evans, City Manager
City Attorney
Donna Mooney, Esquire, City Attorney
Management Staff
Maria Aliotti, Assistant City Manager
Steve Albanese, Chief of Police
Melaine Venenciano, Director of Records/Council Services John Samuelson, Director of Public Works/City Engineer
Paul Rodrigues, Finance Director
Jennifer Brizel, Director of Human Resources
Jordan Davis, Director of Community and Economic Development Kolette Simonton, Director of Recreation
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Pittsburg
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2022
Executive Director/CEO
x
178
Pittsburg
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CITY OF PITTSBURG
Annual Comprehensive Financial Report
June 30, 2023
180
INDEPENDENT AUDITOR’S REPORT
To the Honorable City Council of the
City of Pittsburg, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business- type activities, each major fund, and the aggregate re maining fund information of the City of Pittsburg (City), California, as of and for the year ended Ju ne 30, 2023, and the relate d notes to the financial statements, which collectively comprise the City’s ba sic financial statements as listed in the Table of Contents.

In our opinion, the financial statements referred to above present fairly, in al l material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2023, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to fina ncial audits co ntained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirement relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fa ir presentation of these financial statements in accordance with accounting principles generally acce pted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statem ents that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 1 181
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit co nducted in acco rdance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material miss tatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements ar e considered material if there is
a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material missta tement of the financial statements, whether due t o f r a u d o r e r r o r , a n d d e s i g n a n d p e r f o r m a u d i t p r o c e d u r e s r e s p o n s i v e t o t h o s e r i s k s . S u c h procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstan ces, but not for the purpose of expressing an opinion on the effectiveness of the City’s intern al control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting polic ies used and the reasonableness of significant accounting estimates made by ma nagement, as well as evaluate th e overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, signif icant audit findings, and certain internal control- related matters that we identified during the audit.

Emphasis of Matter
Change in Accounting Principle
Management adopted the provisions of Governmental Accounting Standards Board Statement No. 96, Subscription-Based Information Technology Arrangements , which became effective during the year ended June 30, 2023 and required restatement of certain g overnmental activities subscription-related balances as discussed in Note 1S to the financial statements.

The emphasis of this matter does not constitute a modification to our opinions. 2 182
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis and other required supplementary information as listed in the Table of Contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplem entary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our in quiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information becaus e the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying Supplementary Information, as listed in the Table of Contents, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting an d other records used to pr epare the basic financial statements. The information has been subjected to th e auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Supplementary Information is fairly stated, in all ma terial respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the Introductory Section and Statistical Section listed in the Table of Contents, but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 3 183
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards , we have also issued our report dated March 25, 2024, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regula tions, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of th at testing, and not to provide an opinion on the effectiveness of the City’s internal control over financ ial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Pleasant Hill, California
March 25, 2024
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City of Pittsburg
Management's Discussion and Analysis
For the year ended June 30, 2023

MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the City of Pittsburg, we offer readers this discussion and analysis of the City’s financial performance for the year ending Ju ne 30, 2023 (FY 2022-23). The accuracy of the data presented and the completeness and fairness of the presentation, including all disclosures in this report, are the responsibility of the City. The report has been prepared in accordance with Generally Accepted Accounting Principles (GAAP) as promulgated by the Governmental Accounting Standard Board (GASB). We encourage readers to consider the information presented here in conjunc tion with additional information whic h can be found in the introductory section of this report and within the City’s financial statements, which follow this discussion.

FINANCIAL HIGHLIGHTS
• The assets and deferred outflow of resources of the Ci ty exceeded its liabilities and deferred inflows of resources at the close of the FY 2022-23 by $443.2 million (M) (net position).

The City’s total net position of $4 43.2M increased from the prior FY 2021-22 by $24.9M. See below for breakdown of governmental and business type activities:

As of June 30, 2023, the City’s governmental fund bala nces saw an increase of $14.9M resulting in a balance of $92.7M compared to the prior fiscal year balance of $77.8M. The difference is a combination of recognizing American Rescue Plan Act (ARPA) funds, alongside with additional general revenues: increase in taxes and fees and an offsetting of costs incurred in personnel, capital outlay and operating expenditures. • As of June 30, 2023, the fund bala
nce (total assets and deferred outfl ows minus total liabilities and deferred inflows) for the General Fund, whic h includes the Budget Stabilization and Economic Development funds, was $27.6M. The detail of this amount is as follows: $0.4M was designated as "Nonspendable" for items that are not in a spendable form such as deposits, interfund advances and i nventory, $1.6M was designated as "Assigned" for economic development activities and encumb rances intended to be used for specific purposes designated by the City Council and $25.6M as unassign ed. The unassigned balance consists of $23.2M in General Fund operating reserve availa ble to cover expenses in the event of an emergency and $2.4M in the Budget Stabilization Fund that can be used to balanc e future budgets subject to the limits of the Fiscal Sustainability Ordinance.
• There are four major funds in the Governmental Fu nds section of the Annual Comprehensive Financial Report: 1) the General Fund, 2) Housing Authority (Section 8) , 3 ) Successor Agency Housing and 4) Miscellaenous Grants.

As of June 30, 2023, the City's net position from business type activi ties (enterprise funds) increased by approximately $6.9M from $168.8M to $1 75.7M, primarily because of net increas e in capital assets, along with a net increase in deferred outflows and offsetting of costs in personnel, operating expenses and deferred inflows. • There are five major enterprise funds in the Propr ietary Funds section of the Annual Comprehensive Financial Report: (1) Water Utility, (2) Sewer Utility, (3) Marina, (4) Pittsburg Power Company (including Island Energy) and (5) Waterfront Operations.
5 185
City of Pittsburg
Management's Discussion and Analysis
For the year ended June 30, 2023

OVERVIEW OF THE FINANCIAL STATEMENTS
The Management’s Discussion and Analysis is intended to serve as an introduction to the City’s basic financial statements, which are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. Th is report contains other supplementary information in addition to the basic financial statements.

Government-Wide Financial Statements – The Government-Wide Financial Statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business. These statements consist of:
• The Statement of Net Position presents information on a ll the City’s assets and deferred outflow of resources and liabilities, with the difference between the two re ported as “net position”. Over time, increases or decreases in net position may serve as a useful indicat or of whether the financial position of the City is
improving or deteriorating.
• The Statement of Activities presents information reflecting any change in the government's net position during the most recent fiscal year. All changes in ne t position are reported as so on as the underlying event giving rise to the change occurs (regardless of the timi ng of related cash flows). Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., earned but unused vacation and compensated leave of absence).

Both of the Government-Wide Financial Statements dis tinguish functions of the City that are principally supported by taxes and intergovernmental revenues ( governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City incl ude legislative and legal, general government, public safety, public works, community development and recreat ion. The business-type activities of the City include Water, Sewer, Marina, Pittsburg Power Company (includes Island Energy operation), and Waterfront Operations.

The Government-Wide Financial Statements include not only the City but the Hous ing Authority and Housing Successor Agency. Financial informatio n for these component units are blende d with the financial statements of the primary government itself.

Fund Financial Statements – A “fund” is a grouping of related account s that is used to maintain control over resources that have been segregated for specific activiti es or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds can be divided into three categories: govern mental funds, proprietary funds, and City's fiduciary funds.
• Governmental Funds : These funds are used to account for esse ntially the same functions reported as governmental activities in the government-wide financ ial statements. Unlike the Government-Wide Financial Statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable reso urces available at the end of the fiscal year. Such information may be useful in evaluating a government 's near-term financing requirements. However, this information does not encompass the additional long -term focus of the government-wide statements.

Reconciliations that explain the relationship (or diff erences) between governmental funds and governmental activities follow each of the governmental funds statements. 6 186
City of Pittsburg
Management's Discussion and Analysis
For the year ended June 30, 2023
The City maintains 50 individual govern mental funds. Information is presen ted separately in the governmental funds balance sheet and in the governmental funds stat ement of revenues, expenditures, and changes in fund balances for four funds that are cons idered to be major funds. These fund s consist of the General Fund, Housing Authority (Section 8), the Successor Ag ency Housing Fund and Miscellaneou s Grant Fund. Data from the other 46 governmental funds, which are comb ined into a single, aggregated presentation under Other Governmental Funds, are considered as non-major funds.

A budgetary comparison statement has be en provided for the funds that have an adopted budget to demonstrate compliance with this budget.

Proprietary Funds: The City maintains two different types of prop rietary funds; Enterprise Funds and Internal Service Funds. Enterprise Funds are us ed to report the same functions presen ted as “business-type activities” in the Government-Wide Financial Statements. The Enterprise Funds are used to account for Water, Sewer, Marina, Pittsburg Power Company (including Island Energy), and Waterfront Operations. • Enterprise Funds provide the same type of information as the Government-Wide Financial Statements, only in more detail. The Proprietary Fund Financia l Statements provide separate information for the Water Fund, the Sewer Fund, the Ma rina Fund, Pittsburg Power Company (including Island Energy), and Waterfront Operations, all of which are considered to be major funds. Conversely, Internal Service Funds are combined into a single, aggregated presentation in the Proprietary Fund Financial Statements. • Internal Service funds are an accounting device used to accu mulate and allocate costs internally among the City's various functions. The City uses Internal Service Funds to account fo r maintaining its fleet of vehicles, building maintenance, information and co mmunication systems, risk management/insurance, and employee fringe benefits activities. Because these services predominantly benefit governmental rather than business-type functions, they have been in
cluded within “governmental activities” in the
government-wide financial statements.

Fiduciary Funds: Fiduciary Funds are used to ac count for resources held for the benefit of parties outside the government. Fiduciary Funds are not reflected in th e Government-Wide Financial Statement because the resources of those funds are not available to support th e City’s own programs. The accounting used for Fiduciary Funds is much like that which is used for Proprietary Funds. The Assessment District Bonds Fund, the Environmental Impact Fee Fund and the Other Impact F ees Fund are held as Fiduciary Funds by the City. With the dissolution of Redevelopment Agency per AB 26, as amended by AB 1484, the activities of the Successor Agency of the Former Redevelopment Agency are reported as Private Purpose Trust Fund in the Fiduciary Fund section. Also, included in the Fiduciary Funds is the Miscellaneous Employee Retirement System.

Notes To The Financial Statements – The notes provide additional info rmation that is essential to a full
understanding of the data provided in the Governme nt-Wide and Fund Financial Statements. The following GASB pronouncements were effective in fiscal year 2022-2023.

GASB Statement No. 96 – Accounting for Subscription-based IT Arrangements (SBITA’s) For a detailed description of the all the pronouncements that apply to the City, see Note 1R – Summary of Significant Accounting Policies.

Other Information – In addition to the basic financial statem ents and accompanying notes, this report als o presents certain required supplementary information con cerning the City’s progress in funding its obligation to provide pension benefits to its employees.
7 187
City of Pittsburg
Management's Discussion and Analysis
For the year ended June 30, 2023

GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net Position – As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the City, combined net position (government and business-type activities) totaled $443.2M at the close of the Fiscal Year ending June 30, 2023, whic h is $24.9M more than the Fiscal Year ending June 30, 2022.

The Government-Wide Financial Statements provide long-
term and short-term information about the City’s
overall financial condition. This analysis addresses the fina ncial statements of the City as a whole. The following table reflects the Summary of Net Positi on for the Fiscal Year ended June 30 , 2023 with the comparative data for the Fiscal Year ended June 30, 2022.

City of Pittsburg
Summary of Net Position
As of June 30, 2023
2022 2023 2022 2023 2022 2023
Current Assets 136,006,151$ 152,951,686$ $ 113,730,578 $ 117,194,075 $ 249,736,729 $ 270,145,761 Leases 560,423 443,007 21,611,059 21,295,631 22,171,482 21,738,638 Capital Assets 237,484,252 232,661,465 158,695,811 159,122,951 396,180,063 391,784,416 Total Assets 374,050,826 386,056,158 294,037,448 297,612,657 668,088,274 683,668,815 Deferred Outflow of
Resources 13,948,583 28,211,041 2,301,807 4,248,185 16,250,390 32,459,226 Current Liabilities 24,858,007 21,070,312 9,355,267 10,496,029 34,213,274 31,566,341 Non-Current Liabilities 89,412,083 119,040,692 91,001,822 93,535,795 180,413,905 212,576,487 Total Liabilities 114,270,090 140,111,004 100,357,089 104,031,824 214,627,179 244,142,828 Deferred Inflows of Resources 24,270,896 6,719,401 27,171,570 22,097,337 51,442,466 28,816,738 Net Investment in Capital
Assets 235,352,441 230,934,582 125,448,931 129,088,788 360,801,372 360,023,370 Restricted 24,153,450 30,664,190 33,206,836 82,586,630 57,360,286 113,250,820 Unrestricted (10,047,468) 5,838,022 10,154,829 (35,943,737) 107,361 (30,105,715) Total Net Position as Restated 249,458,423$ 267,436,794$ 168,810,596 $ 175,731,681$ 418,269,019$ 443,168,475$ Governmental Activities Business-Type Activities Total
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City of Pittsburg
Management's Discussion and Analysis
For the year ended June 30, 2023
Current assets are assets that are liquid in nature or can be converted into cash qui ckly. Current liabilities are outstanding liabilities that are due within one year.

The Statement of Net Position contains more detailed in formation on current assets, capital assets, deferred outflows of resources, current liabilities, non-current liabilities and deferred inflows of resources.

At the end of the FY 2022-23 the total assets and defe rred outflows of resources exceeded total liabilities and deferred inflows of resources by $443.2M.

Statement of Activities – In FY 2022-23 the City’s total Government al expenditures of $100.4M were less than the revenues and transfers of $118.3M by $17.9M. The C ity’s expenses cover a range of services for the Governmental Activities: the larges t expenses were in Public Safety $34.6M, Community Development and Services $33.3M and Public Works $18.4M. These expens es include capital outlays, which are now reflected in the City’s capital assets. Further analys is is provided within the governmental and business-type sections on the following pages. For additional information on the Cap ital Assets, please refer to Note 7 – Capital Assets disclosure.

Governmental and Business Activities – Governmental Activities reflect an increase of $17.9M in net position, and Business Activities reflect an increase of $6.9M in ne t position for the FY 2022-23. A comparison of the cost of services by function for the City’s Governmental Activities is shown below, along with the revenues used to cover the net expenses of the Governmental Activities, as well as comparative data from the FY 2021-22. 9 189
City of Pittsburg
Management's Discussion and Analysis
For the year ended June 30, 2023
Statement of Activities
Fiscal Year Ended June 30, 2023
With comparative data for fiscal year ended June 30, 2022 2022 2023 2022 2023 2022 2023
Revenue:

Program Revenues:

Charges for S ervices 34,147,127$ 33,935,330$ $ 45,174,960 $ 48,007,440 $ 79,3 22,087 $ 81,942,770 Operating G rants and Contributions 21,201,189 34,424,337 125,191 92,841 21,326,380 34,517,178 Capital G rants and Contributions 1,332,359 1,800,489 534,140 - 1,866,499 1,800,489 S ub-Total 56,680,675 70,160,156 45,834,291 48,100,281 102,514,966 118,260,437 GeneralRevenues:

Property Taxes 4,895,005 5,275,779 - - 4,895,005 5,275,779 S ales Tax 20,597,815 22,221,452 - - 20,597,815 22,221,452 Franchise Fees 5,854,635 6,219,587 - - 5,854,635 6,219,587 Motor V ehicle in Lieu Fees 5,863,791 6,590,985 - - 5,863,791 6,590,985 G as Taxes 3,250,828 3,610,551 - - 3,250,828 3,610,551 Other Taxes - - - - -
Buinsess License Tax 701,697 699,501 701,697 699,501 Transient Occupancy 505,971 501,035 505,971 501,035 Investment Earnings-Unrestricted (2,863,079) 2,005,445 312,307 3,434,926 (2, 550,772) 5,440,371 S ub-Total 38,806,663 47,124,335 312,307 3,434,926 39,118,970 50,559,261 Total Revenues 95,487,338 117,284, 491 46,146,598 51,535,207 141,633,936 168,819,698 Expenses:

G eneral G overnment 5,194,195 6,213,928 - - 5,194,195 6,213,928 City Council 114,746 149,811 - - 114,746 149,811 City Manager & Clerk 619,916 768,598 - - 619,916 768,598 City Attorney 355,269 352,264 - - 355,269 352,264 Human Resources 1,200,350 1,240,353 - - 1,200,350 1,240,353 Finance and S ervices 2,361,777 2,059,044 - - 2,361,777 2,059,044 Community Development & S ervices 33,049,148 33,336,147 - - 33,049, 148 33,336,147 Public S afety 29,208,631 34,581,128 - - 29,208, 631 34,581,128 Public Works 14,071,228 18,364,834 - - 14,071, 228 18,364,834 Interest on Long-Term Debt 3,739,936 3,285,129 - - 3,739,936 3,285,129 Water Utility - - 20,438,566 24,392,880 20,4 38,566 24,392,880 Sewer Utility - - 3,002,251 3,403,437 3, 002,251 3,403,437 Marina - - 2,673,031 2,859,776 2, 673,031 2,859,776 P it t sburg P ower - - 9,088, 956 12,236,327 9, 088,956 12,236,327 Waterfront Opertions - - 486,519 737,886 486,519 737,886 Total Expenses 89,915,196 100,351,236 35,689,323 43,630,306 125,604,519 143,981,542 Increase(Decrease) in Net Position
before Transfers 5,572,142 16,933,255 10,457,275 7,904,901 16,029,417 24,838,156 Transfers 1,543,752 983,816 (1,543,752) (983,816) - - Change in Net Position 7,115,894 17,917,071 8,913,523 6,921,085 16,029,417 24,838,156 Net Position-Beginning of Year
(Restated-Note 15) 242,342,529 249,519,723 159,897,073 168,810,596 402,239, 602 418,330,319 Net Position - End of Year 249,458,423$ 267,436,794$ 168,810,596$ 175,731,681$ 418,269,019$ 443,168,475$ G overnmental Activities Bu siness-Type Activities Total 10 190
City of Pittsburg
Management's Discussion and Analysis
For the year ended June 30, 2023
Total Program Revenues from Governmental Activities were $70.2M in FY 2022-23. Per GASB 34, program revenues are derived directly from th e program or from parties outside the reporting government’s taxpayers or citizenry. Program Revenues reduce the net cost of the pr ogram to be financed from the government’s general revenues. As reflected in the pie chart below, 48.4% of the Governmental Program Revenues came from Charges for Services (which includes license s and permits, plan checking fees, de veloper fees, special assessments and several other revenues), 49.1% from the Operating Grants and Contributi ons category (including restricted
revenues such as Gas Tax, Measure J Tax, Asset Seizur e fund and Federal/State Grants), and 2.6% from Capital Grants and Contributions.

The Charges for Services slightly de creased by $0.2M. The difference is a combination of decrease in Public Works services of $1.2M and an increase in General Government funds due to r eceiving execess pass through revenues from the Successor Agency of $1.0M
The Operating Grants and Contributions increased by $13.2M. The increase is a combination of recognizing ARPA funds for loss revenue and capital projects of $12.2M and $1.0M additional funding for our Housing Choice Voucher program from HUD for backbillings, retro absorptions of the Portability Program and admistration costs.

Capital Grants and Contributions increased by $0.5M, due to receiving more federal grant funding in FY 2022-23 for capital projects.

Government Revenues by Program Type
11 191
City of Pittsburg
Management's Discussion and Analysis
For the year ended June 30, 2023
About 40.0% of General Government services in FY 2022-23 were funded by General Revenues. General Revenues are all other revenues not categorized as program revenues such as property taxes, sales taxes , intergovernmental and investment earnings. Interest on long-term debt is paid through general revenues.

General revenues from Governmental Activities represen ted $47.1M or 40.2% of total City revenues, and Program revenues reflected $70.2M or 59.8% of total Governmental Activities revenues. Sales Taxes comprised the largest percentage of General Revenues, $22.2M or 47.0%, received during the fiscal year.

Business-Type Activities – Net position for Business-Type Activities was $175.7M, a net increase of $6.9M over the prior fiscal year. Total program revenues for Busi ness-Type Activities were $48.1M. Total expenses for Business-Type Activities were $43.7M for the FY 2022-23. 12 192
City of Pittsburg
Management's Discussion and Analysis
For the year ended June 30, 2023
FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
As noted earlier, the City uses fund accounting to ensu re and demonstrate compliance with finance-related legal requirements.

The focus of the City’s Governmental Funds is to provide information on near-term inflows, outflows, and balances of spending resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

The Housing Authority Housing Choice Voucher (HCV) Prog ram, which is reported as a Special Revenue Fund, saw an decrease in fund balance of $0.04M. This is due to extra Housing Assistance payments and administrative cost incurred in FY 2022-23.

General Fund Budgetary Highlights – The final amended budget totaled $61.0M, including $13.6M for prior fiscal year budget carry forward totals and new appropriation amendments to the originally adopted budget. These amendments are briefly summarized below.

The City Council approved the following budget carry-forwards and amendments during the current fiscal year:

Budget Carry Forwards: Approved Amendments:

Developer Deposit Contractual Svcs. Planning 417,925 Transfer In/Out 9,209,813 Capital Equip. & Furniture (Non Vehicle) Police - Admin 246,663 Non-Departmental 2,845,148 Contractual & Professional Services Non-Departmental 157,930 Public Works - Street 900,940 Membership Dues & Subscriptions Police - Admin 48,645 Planning 488,814 Contractual & Professional Services Public Works / Streets 45,553 Police - Operations Bureau 308,279 Contractual & Professional Services Human Resources 42,324 City Attorney 165,295 Outside Counsel Human Resources 30,657 Finance 78,873 Litigation City Attorney 29,661 City Council 12,239 Misc. Equip. & Furniture < $5,000 Police - Admin 19,096 Graffitti Removal 5,661 Contractual & Professional Services Police - Admin 18,000 Public Works - Administration 3,354 Contractual & Professional Services Planning 15,786 Police - Family Justice Center 1,695 Contractual & Professional Services City Manager 15,754 Public Works - Swim Center Maint. 393 Auditing Expense Non-Departmental 15,572 Recreation (33,307) Contractual & Professional Services Engineering 14,936 Code Enforcement (37,343) Maintenance & Repairs Police - Admin 14,000 Building (39,078) Contractual & Professional Services Building 9,599 City Manager/City Clerk/Treasurer (65,915) Computer Software Building 9,177 Human Resources (106,823) Equipment Rental Police - Support Svcs. 8,885 Police - Investigation (172,288) Criminalistics Work Police - Investigation 7,538 Police - Admin (188,755) Police - Support Svcs. (237,785)
Engineering (662,278)
Total Budget Carryovers 1,167,701$ Total Amendments 12,476,932$ Grand Total 13,644,633$
At the close of the FY 2022-23, General Fund revenues ex ceeded the revised budget by $1.2M. This increase is primarily attributable to general revenues such as taxes and fees. 13 193
City of Pittsburg
Management's Discussion and Analysis
For the year ended June 30, 2023
General Fund Expenditures were $1.9M higher than the original budget and $2.8M lower than the revised budget.

This is the result of most of th e General Fund operating departments an d projects, prudently operating under budget. Staff has taken great care over the past several years to reduce or delay spending on non-critical items during the current fiscal year in an e ffort to meet the requirements of the C ity's Budget Stabilization Ordinance.

As a result of delayed spending, the City has $1.2M in budgetary carry forwards to FY 2022-23. These carryovers reflect the City's continued commitment to reinvest in the areas of greate st need while exercising care in the manner in which it spends available resources.

Unearned revenue in the General Fund is $0.3M. The balance is for variou s projects within the City. Please see Note 5 for further explanation.

The City’s Proprietary Funds provide the same type of information found in the Government-Wide Financial Statements, but with more detail. According to standa rdized Governmental reporting, the Water Fund, Sewer Fund, and Pittsburg Power Company are major funds. The Marina and Waterfront Operation Funds are not considered to be major funds; howeve r, the City has elected to continue to report the Marina and Waterfront Operation Funds as major funds.

Total net position of the Business-Type Activities was $175 .7M at the end of the year, an increase of $6.9M from the prior fiscal year.

Capital Asset and Debt Administration – The City’s investment in capital assets for its Governmental and Business Type activities as of June 30, 2023, was $391.8M (net of accumulated depreciation). This investment in capital assets includes land, buildings , improvements, machinery and equipment, vehicles,park facilities, roads, highways, bridges, water lines, and sewer and storm systems. The total decrease in the City’s investment in capital assets net of depreciation was $4.4M as compared to prior year. 14 194
City of Pittsburg
Management's Discussion and Analysis
For the year ended June 30, 2023
City of Pittsburg
Capital Assets
(Net of Depreciation)
June 30, 2023
2022 2023 2022 2023 2022 2023
Non-depreciable assets:

Land 35,754,568$ 35,754,568$ $ 2,721,245 $ 2,721,245 $ 38,475,813 $ 38,475,813 Contruction in Progess 19,772,320 17,450,369 27,090,314 19,652,827 46,862,634 37,103,196 Total 55,526,888 53,204,937 29,811,559 22,374,072 85,338,447 75,579,009 Depreciable assets (net of
depreciation):

Buildings and improvements 56,843,745 61,964,517 36,968,594 35,896,232 93,812,339 97,860,749 Machinery and Equipment 3,449,190 2,558,656 5,720,844 5,267,962 9,170,034 7,826,618 Infrastructure 120,403,182 112,272,523 86,194,814 94,529,213 206,597,996 206,801,736 Vehicles - 1,213,104 - 1,055,472 - 2,268,576
Intang ib le Rig ht-to-Use
Buidlings 1,261,247 1,261,247 - - 1, 261,247 1,261, 247 Intang ib le Rig ht-to-Use
Subscript ion - 186,481 - - - 186,481
Total 181,957,364 179,456,528 128,884,252 136,748,879 310,841,616 316,205,407 Total 237,484,252$ 232,661,465$ 158,695,811$ 159,122,951$ 396,180,063$ 391,784,416$ G overnmental Activities Business-Type Activities Total Please see more detailed information regarding the City's capital assets in Note 7 of the Basic Financial Statements.

Debt Service Administration – At the end of the fiscal year, the City had total long-term debt outstanding of $31.7M which consisted of: 2006 Pension Obligation Bonds in the amount of $31.2M, fleet vehicles/street sweeper lease for $59,666, various fleet equipment for $56,281, vehicles/equipment for $270,930 and a loan from PG&E to partially fund the replacement of the City Hall Chiller in the amount of $103,098.

As of June 30, 2023, the $77.2M in Business-Type Acti vities Long Term Debt comprised of two Water Revenue bonds of, $21.6M and $46.2M and a California Infrastructure and Economic Development Bank (I-Bank) loan for financing the modifications of Pittsburg Water Treatment Plant and other infrastructures in the amount of $9.4M. 15 195
City of Pittsburg
Management's Discussion and Analysis
For the year ended June 30, 2023
City of Pittsburg
Long-Term Debt
June 30, 2023
2022 2023 2022 2023 2022 2023
Pension Obligation Bonds 32,153,097$ 31,213,452$ -$ -$ $ 32,153,097 $ 31,213,452 PG&E Efficient Loan 124,427 103,098 - - 124,427 103,098 Lease-Fleet Vehicles/Street Sweeper 175,684 59,666 - - 175,684 59,666 Lease-Fleet Equipment 110,483 56,281 - - 110,483 56,281 Lease- Vehicles/Equipment 443,447 270,930 443,447 270,930 2008 A Revenue Bonds - - - - - - 2016 Water Revenue Refunding Bonds - - 23,120,000 21,620,000 23,120,000 21,620,000 2022 Water Revenue Refunding Bonds 43,870,000 43,870,000 43,870,000 43,870,000 Unamortized premium on 2022A Bonds - - 2,394,337 2,321,526 2,394,337 2,321,526 2014 I-Bank Loan - - 9,673,649 9,393,270 9,673,649 9,393,270 Total 33,007,138$ 31,703,427$ 79,057,986$ 77,204,796$ 112,065,124$ 108,908,223$ Governmental Activities Business-Type Activities Total
Please see more detailed information regarding the City's outstanding debt in Note 8 of the Basic Financia l Statements.

Looking Forward
The City is proud of the results of th e current year’s activities. The Department Heads and their staff take a great deal of pride providing top quality services to the residents and business community, while being fiscally conservative. This approach requires City staff to consistently monitor al l of the expenses while exploring and utilizing every alternative revenue source.

Requests for Information – This financial report is designed to provi de a general overview of the finances for the City of Pittsburg. Questions concerning any of the information provided in this report or requests for additional financial information shou ld be addressed to the City of P ittsburg, Finance Depa rtment, 65 Civic
Avenue, Pittsburg, California 94565.
16 196

BASIC

FINANCIAL

STATEMENTS

17 197

CITY OF PITTSBURG
Annual Comprehensive Financial Report
June 30, 2023
198

GOVERNMENT-WIDE

FINANCIAL

STATEMENTS
19 199

CITY OF PITTSBURG
Annual Comprehensive Financial Report
June 30, 2023
200
City of Pittsburg

STATEMENT OF NET POSITION
Governmental Business-T ype
Activities Activities Total
ASSETS
Current assets:

Cash and investments (Note 2) 96,799,908$ 62,708,529$ 159,508,437$ Restricted cash and investments (Note 2) 9,147,791 47,170,633 56,318,424 Receivables:

Accounts 8,935,742 6,601,600 15,537,342
Interest 808,644 - 808,644
Loans/notes (Note 3) 36,215,218 - 36,215,218 Internal balances (Note 1H) (454,908) 454,908 -
Inventory 767,377 218,170 985,547
Prepaid items and other assets 731,914 40,235 772,149
Total current assets 152,951,686 117,194,075 270,145,761 Noncurrent assets:

Leases (Note 4) 443,007 21,295,631 21,738,638
Capital assets (Note 7):

Land and nondepreciable assets 53,204,937 22,374,072 75,579,009 Depreciable capital assets, net of accumulated depreciation 179,456,528 136,748,879 316,205,407 Total capital assets, net 232,661,465 159,122,951 391,784,416 Total Assets 386,056,158 297,612,657 683,668,815 Pension related (Note 12) 26,165,663 3,682,252 29,847,915 OPEB related (Note 13) 2,045,378 565,933 2,611,311
Total Deferred Outflows of Resources 28,211,041 4,248,185 32,459,226

LIABILITIES
Current liabilities:

Accounts payable 3,589,739 3,501,900 7,091,639
Salaries payable 2,010,672 - 2,010,672
Interest payable (Note 1J) 630,786 736,421 1,367,207
Refundable deposits 3,578,799 1,826,992 5,405,791
Taxes payable 22,672 332,759 355,431
Loans payable 288,766 - 288,766
Lease liabilities - due within one year (Note 4B) 183,523 - 183,523 Subscription liability - due within one year (Note 4C) 43,912 - 43,912 Unearned revenue (Note 5) 5,071,953 1,661,367 6,733,320 Claims and judgment payable-due within one year (Note 11) 109,700 - 109,700 Compensated absences - due within one year (Note 1M) 2,573,554 586,370 3,159,924 Long-term debt - due within one year (Note 8) 2,966,236 1,850,220 4,816,456 Total current liabilities 21,070,312 10,496,029 31,566,341 Noncurrent liabilities:

Compensated absences - due in more than one year (Note 1M) 857,852 195,449 1,053,301 Lease liabilities - due in more than one year (Note 4B) 918,629 - 918,629 Subscription liability - due in more than one year (Note 4C) 90,844 - 90,844 Net pension liability - due in more than one year (Note 12) 62,446,678 10,794,774 73,241,452 Net OPEB liability - due in more than one year (Note 13) 25,989,498 7,190,996 33,180,494 Long-term debt - due in more than one year (Note 8) 28,737,191 75,354,576 104,091,767 Total noncurrent liabilities 119,040,692 93,535,795 212,576,487 Total Liabilities 140,111,004 104,031,824 244,142,828 Lease related (Note 4) 403,206 21,071,375 21,474,581 Pension related (Note 12) 4,176,754 434,003 4,610,757
OPEB related (Note 13) 2,139,441 591,959 2,731,400
Total Deferred Inflows of Resources 6,719,401 22,097,337 28,816,738 Net investment in capital assets 230,934,582 129,088,788 360,023,370 Restricted for:

Capital projects 28,000,125 62,816,114 90,816,239 Debt service 2,664,065 5,183,322 7,847,387
Facility fee reserve - 14,587,194 14,587,194
Total restricted net position 30,664,190 82,586,630 113,250,820 Unrestricted 5,838,022 (35,943,737) (30,105,715)
Total Net Position 267,436,794$ 175,731,681$ 443,168,475$ See accompanying notes to financial statements
June 30, 2023

DEFERRED OUTFLOWS OF RESOURCES

DEFERRED INFLOWS OF RESOURCES
NET POSITION (Note 10)
21 201
City of Pittsburg

STATEMENT OF ACTIVITIES
For the Year Ended June 30, 2023
Net (Expense) Revenue and
Program Revenues Changes in Net Position
Operating Capital
Charges for Grants and Grants and Governmental Business-type Functions/Programs Expenses Services Contributi ons Contributions Activities Activities Total Governmental Activities:

General government 6,213,928$ 11,938,887$ 5,418$ 1,218,511$ 6,948,888$ 6,948,888$ City Council 149,811 - - - (149,811) (149,811) City Manager and City Clerk 768,598 445 - - (768,153) (768,153) City Attorney 352,264 - - - (352,264) (352,264) Human resources 1,240,353 228,456 - - (1,011,897) (1,011,897) Finance and services 2,059,044 171,965 - - (1,887,079) (1,887,079) Community development and services 33,336,147 15,856,337 21,198,386 313,050 4,031,626 4,031,626 Public safety 34,581,128 2,195,555 462,439 14,444 (31,908,690) (31,908,690) Public works 18,364,834 3,543,685 12,758,094 254,484 (1,808,571) (1,808,571) Interest on long-term debt 3,285,129 - - - (3,285,129) (3,285,129) Total Governmental Activities 100,351,236 33,935,330 34,424,337 1,800,489 (30,191,080) (30,191,080) Business-type Activities:

Water Utility 24,392,880 26,731,846 - - - 2,338,966$ 2,338,966 Sewer Utility 3,403,437 5,150,007 - - - 1,746,570 1,746,570 Marina 2,859,776 2,383,616 - - - (476,160) (476,160) Pittsburg Power 12,236,327 12,915,675 92,841 - - 772,189 772,189 Water Front Operations 737,886 826,296 - - - 88,410 88,410

Total Business-type Activities 43,630,306 48,007,440 92,841 - - 4,469,975 4,469,975 Total 143,981,542$ 81,942,770$ 34,517,178$ 1,800,489$ (30,191,080) 4,469,975 (25,721,105) General revenues:

Taxes:

Property taxes 5,275,779 - 5,275,779 Sales taxes 22,221,452 - 22,221,452 Franchise taxes 6,219,587 - 6,219,587 Gas taxes 3,610,551 - 3,610,551 Business license taxes 699,501 - 699,501 Transient occupancy taxes 501,035 - 501,035 Motor Vehicle in-lieu (unrestricted) 6,590,985 - 6,590,985 Investment earnings-unrestricted 2,005,445 3,434,926 5,440,371 Transfers (Note 6C) 983,816 (983,816) - Total General Revenues and Transfers 48,108,151 2,451,110 50,559,261 Change in Net Position 17,917,071 6,921,085 24,838,156 Net Position - Beginning of Year, As Restated (Note 1S) 249,519,723 168,810,596 418,330,319 Net Position-End of Year 267,436,794$ 175,731,681$ 443,168,475$ See accompanying notes to financial statements
22 202

FUND FINANCIAL

STATEMENTS

Governmental Fund Financial Statements

Proprietary Fund Financial Statements

Fiduciary Fund Financial Statements

23 203

CITY OF PITTSBURG
Annual Comprehensive Financial Report
June 30, 2023
204

GOVERNMENTAL FUND

FINANCIAL STATEMENTS

General Fund is used for all the general revenues of the City not specifically levied or collected for other City funds and the related expendit ures. The General Fund accounts for all financial resources which are not accounted for in another fund. The Gene ral Fund includes the Budget Stabilization and Economic Development fund balances and activity.

Housing Authority (Section 8) Special Revenue Fund was established to administer grants from the Housing and Urban Development Department (HUD) to subsidize the rental costs of low-income families and homeless veterans.

Successor Agency Housing Special Revenue Fund was established to account for activities related to the assets assumed by the City as Housing Successor to the Pittsburg Redevelopment Agency for the housing activities of the former Redevelopment Agency.

Miscellaneous Grants Fund – This fund receives various grants to administer the police, recreation, and public services and the American Rescue Plan Funding.

25 205
City of Pittsburg
Balance Sheet
Governmental Funds
June 30, 2023
Housing Successor
General Authority Agency
Fund (Section 8) Housing
ASSETS
Cash and investments (Note 2) 24,221,585$ 200$ 5,292,432$ Restricted cash and investments (Note 2) - 60,362 503,464 Receivables:

Accounts 6,135,046 546,382 - Interest 808,644 - - Loans and notes (Note 3) 4,367,659 - 27,663,439 Leases (Note 4) - - - Due from other funds (Note 6A) 4,229,453 - - Inventory 61,506 1,374 - Prepaid items and other assets 6,109 - - Advances to other funds (Note 6B) - - 1,399,599 Total Assets 39,830,002$ 608,318$ 34,858,934$

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities:

Accounts payable 1,617,676$ 27,672$ 5,732$ Salaries payable 1,163,743 - - Taxes payable 21,471 1,201 - Refundable deposits 3,360,015 6,181 - Loans payable - 184,997 - Unearned revenue (Note 5B) 255,085 97,658 - Due to other funds (Note 6A) - 77,258 - Advances from other funds (Note 6B) 1,758,728 - 380,000 Total Liabilities 8,176,718 394,967 385,732 Deferred Inflows of Resources:

Leases (Note 4) - - - Unavailable revenue (Note 5B) 4,082,192 - 27,663,439 Total Deferred Inflows of Resources 4,082,192 - 27,663,439 Total Liabilities and Deferred Inflows of Resources 12,258,910 394,967 28,049,171 Fund Balances (Note 10):

Nonspendable 353,082 1,374 - Restricted - 211,977 6,809,763 Committed - - - Assigned 1,607,087 - - Unassigned 25,610,923 - -
Total Fund Balances 27,571,092 213,351 6,809,763
Total Liabilities, Deferred Inflows of Resources and Fund Balances 39,830,002$ 608,318$ 34,858,934$ See accompanying notes to basic financial statements
26 206
Other Total
Miscellaneous Governmental Governmental
Grants Funds Funds
15,761,664$ 43,809,002$ 89,084,883$ - 5,637,472 6,201,298
125,806 2,109,147 8,916,381
- - 808,644
- 4,184,120 36,215,218
- 443,007 443,007
- - 4,229,453
57,167 210,151 330,198
- 722,859 728,968
- 3,911,557 5,311,156
15,944,637$ 61,027,315$ 152,269,206$ 147,624$ 1,520,240$ 3,318,944$ - - 1,163,743
- - 22,672
- 212,603 3,578,799
- 103,769 288,766
4,668,164 51,046 5,071,953
147,576 4,003,647 4,228,481
- 3,547,428 5,686,156
4,963,364 9,438,733 23,359,514
- 403,206 403,206
- 4,080,351 35,825,982
- 4,483,557 36,229,188
4,963,364 13,922,290 59,588,702
57,167 4,485,438 4,897,061
10,924,106 33,540,348 51,486,194 - 13,114,840 13,114,840
- 62,236 1,669,323
- (4,097,837) 21,513,086
10,981,273 47,105,025 92,680,504
15,944,637$ 61,027,315$ 152,269,206$ 27 207
City of Pittsburg
Reconciliation of the
Governmental Funds Balance Sheet
with the Statement of Net Position
Total fund balances reported on the Governmental Funds Balance Sheet 92,680,504$ Amounts reported for Governmental Activities in the Statement of Net Position are different from those reported in the Governmental Funds above because of the following:

CAPITAL ASSETS
Capital assets used in Governmental Activities are not current assets or financial resources and therefore are not reported in the Governmental Funds. 230,520,658

LONG-TERM ASSETS AND LIABILITIES
The assets and liabilities below are not due and payable in the current period and therefore are not reported in the Governmental Funds:

Lease liabilities (1,102,152)
Subscription liability (134,756)
Long-term debt (31,213,452)
Interest payable (630,786)
Compensated absences (3,248,128)
Net pension liability and related deferred inflows/outflows (40,457,769) Net OPEB liability and related deferred inflows/outflows (26,083,561)

ACCRUAL OF NON-CURRENT ITEMS
The amounts below included in the Statement of Activities do not provide or (require) the use of current financial resources and therefore are not reported as assets or liabilities in the Governmental Funds:

Unavailable revenue 35,825,982

ALLOCATION OF INTERNAL SERVICE FUND NET POSITION
Internal Service Funds are not Governmental Funds. However, they are used by management to charge the costs of certain activities, such as insurance and central services and maintenance to individual Governmental Funds. The net current assets of the Internal Service Funds are therefore included in Governmental Activities in the following line items on the Statement of Net Position.

Cash and investments 10,661,518
Accounts receivable 19,361
Inventory 437,179
Prepaid and other assets 2,946
Capital assets 2,140,807
Accounts and salaries payable (1,117,724)
Compensated absences (183,278)
Due to other funds (972)
Advance from other funds (79,908)
Claims and judgments payable (109,700)
Capital lease (489,975)
NET POSITION OF GOVERNMENTAL ACTIVITIES 267,436,794$
See accompanying notes to financial statements
June 30, 2023
28 208

CITY OF PITTSBURG
Annual Comprehensive Financial Report
June 30, 2023
209
City of Pittsburg
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2023
Housing Successor
General Authority Agency
Fund (Section 8) Housing
REVENUES:

Property tax 5,150,208$ -$ -$
Sales tax 22,221,452 - -
Franchise tax 6,078,392 - -
Other taxes 1,555,768 - -
Intergovernmental revenues 12,833,397 21,471,099 -
Permits, licenses, and fees 1,090,988 - -
Fines and forfeitures 428,979 - -
Special assessments - - -
Service fees 4,978,212 1,573,936 7,560
Use of money and property 832,874 21 110,064
Other revenues 2,955,220 140,233 246,178
Total Revenues 58,125,490 23,185,289 363,802
EXPENDITURES:

Current:

General government 5,178,991 - -
City Council 149,811 - -
City Manager and City Clerk 762,933 - -
City Attorney 340,444 - -
Human resources 1,271,627 - -
Finance and services 1,799,719 - -
Community development and services 9,947,361 23,185,592 234,795 Public safety 34,966,748 - -
Public works - administration 95,010 - -
Public works - streets 3,438,241 - -
Public works - parks 193,061 - -
Capital outlay and improvements - - -
Debt service:

Principal retirement - 45,362 101,872
Interest and fiscal charges - 20,410 19,721
Total Expenditures 58,143,946 23,251,364 356,388

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (18,456) (66,075) 7,414
OTHER FINANCING SOURCES (USES):

Transfers in (Note 6C) 5,992,788 55,000 -
Transfers out (Note 6C) (12,109,034) (24,907) (55,749) Total Other Financing Sources (uses) (6,116,246) 30,093 (55,749) NET CHANGE IN FUND BALANCES (6,134,702) (35,982) (48,335) FUND BALANCES:

Beginning of year 33,705,794 249,333 6,858,098
End of year 27,571,092$ 213,351$ 6,809,763$
See accompanying notes to basic financial statements
30 210
Other Total
Miscellaneous Governmental Governmental
Grants Funds Funds
-$ -$ 5,150,208$
- - 22,221,452
- 141,195 6,219,587
- 5,538,194 7,093,962
12,686,547 3,119,633 50,110,676
- 2,642,592 3,733,580
- 8,831 437,810
- 4,749,350 4,749,350
- 4,568,236 11,127,944
8,662 890,248 1,841,869
(115,503) 1,288,092 4,514,220
12,579,706 22,946,371 117,200,658
- 131,493 5,310,484
- - 149,811
- - 762,933
- - 340,444
- - 1,271,627
- 290,179 2,089,898
955,080 2,673,609 36,996,437
91,123 501,997 35,559,868
- 430,104 525,114
- 7,293,108 10,731,349
- - 193,061
- 4,220,564 4,220,564
- 2,628,746 2,775,980
- 1,783,488 1,823,619
1,046,203 19,953,288 102,751,189
11,533,503 2,993,083 14,449,469
- 14,004,299 20,052,087
(610,408) (6,808,960) (19,609,058)
(610,408) 7,195,339 443,029
10,923,095 10,188,422 14,892,498
58,178 36,916,603 77,788,006
10,981,273$ 47,105,025$ 92,680,504$
31 211
City of Pittsburg
Reconciliation of the
Net Change in Fund Balances-Total Governmental Funds
with the Statement of Activities
For the year ended June 30, 2023
The schedule below reconciles the Net Changes in Fund Balances reported on the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance, which measures only changes in current assets and current liabilities on the modified accrual basis, with the Change in Net Position of Governmental Activities reported in the Statement of Activities, which is prepared on the full accrual basis.

NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS 14,892,498$ Amounts reported for Governmental Activities in the Statement of Activities are different because of the following:

CAPITAL ASSETS TRANSACTIONS
Governmental Funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense.

The capital additions from the following departments are therefore added back to fund balance:

Capital outlay 4,220,564
Amount charged to public works department 539,209
Net retirements and adjustments are deducted from fund balance (209,479) Depreciation and amortization expense is deducted from the fund balance (Depreciation expense is net of Internal Service Fund depreciation $834,530 which has already been allocated to serviced funds.) (9,613,034)

LONG TERM DEBT AND PAYMENTS
Repayment of debt, lease and subscription principal is added back to fund balance 2,775,980 Accreted interest is deducted from fund balance (1,615,355)

Interest payable 18,909
Deferred revenue 3,490,623
Compensated absences (184,128)
Net pension liability, deferred inflows and deferred outflows 335,101 Net OPEB liability, deferred inflows and deferred outflows 326,077

ALLOCATION OF INTERNAL SERVICE FUND ACTIVITY
Internal Service Funds are used by management to charge the costs of certain activities, such as equipment acquisition, maintenance, and insurance to individual funds.

The portion of the net revenue (expense) of these Internal Service Funds arising out of their transactions with governmental funds is reported with governmental activities, because they service those activities.

Change in Net Position - All Internal Service Funds 2,940,106 CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES 17,917,071$ See accompanying notes to financial statements
32 212

PROPRIETARY FUND

FINANCIAL STATEMENTS

The enterprise funds account for activities that are financed and operated in a manner similar to private business enterprises. The City Council has determ ined that the costs of providing the following services to the public be recovered primarily through user charges.

Water Utility Fund – This fund accounts for the revenues and expenses associated with management, operation, and maintenance of wate r treatment and distribution system to water customers of the City of Pittsburg. It also accounts for the maintenance of water plant, distributi on reservoirs, and water lines.

Sewer Utility Fund – This fund accounts for the revenu es and expenses associated with the maintenance and repair of 126 mile s of sewer mains, sewer lift statio ns and sewer laterals within the City's right-of-way.

Marina Fund – This fund accounts for the revenues receiv ed from Marina berth rentals, from sales of gasoline, and expenditures from operation and maintenance.

Pittsburg Power Fund – This fund was created by the Joint Powers Agreement between the City of Pittsburg and the Redevelopment Agency to develop revenue streams, to manage different activities for power related projects, capital improvement projec ts, and bond issuance process. This fund also accounts for expenditures incurred in maintenance of the facilities, in distributing gas and electricity to the industries, schools, business, and residents of Ma re Island, in Vallejo, and to account for revenues collected from services to customers.

Water Front Operations Fund – This fund was created for the collection of rents and other trust revenues from the tidelands granted by the Contra Costa County Local Agency Formation Commission within Pittsburg's city limits. The City shall submit a plan indicating details of intended development, preservation, or other use of the trust lands. Any use of the trust lands shall be consistent with the plan as approved by the Commission.

33 213
City of Pittsburg
Statement of Net Position
Proprietary Funds
June 30, 2023
Major Enterprise Funds
Water Sewer
Utility Utility Marina
ASSETS
Current assets:

Cash and investments (Note 2) 44,693,349$ 5,718,389$ 1,727,566$ Restricted cash and investments (Note 2) 47,170,633 - - Receivables:

Accounts 3,752,042 672,363 8,930
Inventory 128,301 24,823 9,149
Prepaid items and other assets 30,955 191 3,314
Total current assets 95,775,280 6,415,766 1,748,959
Noncurrent assets:

Leases receivable (Note 4) - - 606,279
Advance to other funds (Note 6B) - 79,908 -
Capital assets (Note 7):

Land and nondepreciable assets 17,998,581 354,817 134,812 Depreciable assets, net 72,868,277 45,007,260 10,054,173 Total noncurrent assets 90,866,858 45,441,985 10,795,264 Total Assets 186,642,138 51,857,751 12,544,223

DEFERRED OUTFLOWS OF RESOURCES
Pension related (Note 12) 1,788,522 420,829 315,622
OPEB related (Note 13) 290,056 83,857 67,247
Total Deferred Outflow of Resources 2,078,578 504,686 382,869

LIABILITIES
Current liabilities:

Accounts payable 2,401,665 24,297 146,337
Salaries payable - - -
Refundable deposits 1,555,322 - 144,794
Taxes payable - - 264
Accrued interest payable 736,421 - -
Due to other funds (Note 6A) - - -
Advance from other funds (Note 6B) - - -
Unearned revenue (Note 4B) - - -
Compensated absences payable - due within one year (Note 1M) 337,202 85,496 35,339 Claims and judgments payable - due within one year (Note 11) - - - Long-term debt - due within one year (Note 8) 1,850,220 - - Total current liabilities 6,880,830 109,793 326,734
Noncurrent liabilities:

Compensated absences payable - due in more than one year (Note 1M) 112,401 28,499 11,770 Net pension liability - due in more than one year (Note 12) 5,243,176 1,233,689 925,266 Net OPEB liability - due in more than one year (Note 13) 3,685,578 1,065,523 854,478 Long-term debt - due in more than one year (Note 8) 75,354,576 - - Total noncurrent liabilities 84,395,731 2,327,711 1,791,514 Total Liabilities 91,276,561 2,437,504 2,118,248

DEFERRED INFLOWS OF RESOURCES
Lease related (Note 4) - - 574,405
Pension related (Note 12) 210,802 49,600 37,200
OPEB related (Note 13) 303,395 87,713 70,340
Total Deferred Inflows of Resources 514,197 137,313 681,945 NET POSITION (Note 10)
Net investment in capital assets 60,832,695 45,362,077 10,188,985 Restricted for:

Capital projects 60,407,692 782,981 24,050
Debt service 5,183,322 - -
Special purpose - - -
Facility fees 13,867,513 719,681 -
Unrestricted (43,361,264) 2,922,881 (86,136)
Total Net Position 96,929,958$ 49,787,620$ 10,126,899$ See accompanying notes to basic financial statements
34214
Governmental
Major Enterprise Funds Total Activities
Pittsburg Water Front Enterprise Internal
Power Operations Funds Service Funds
9,407,812$ 1,161,413$ 62,708,529$ 7,715,025$ - - 47,170,633 2,946,493
2,164,567 3,698 6,601,600 19,361
55,897 - 218,170 437,179
5,775 - 40,235 2,946
11,634,051 1,165,111 116,739,167 11,121,004 3,919,658 16,769,694 21,295,631 -
375,000 - 454,908 -
3,872,189 13,673 22,374,072 -
7,275,825 1,543,344 136,748,879 2,140,807 15,442,672 18,326,711 180,873,490 2,140,807 27,076,723 19,491,822 297,612,657 13,261,811 946,865 210,414 3,682,252 -
102,897 21,876 565,933 -
1,049,762 232,290 4,248,185 -
807,003 122,598 3,501,900 270,795
- - - 846,929
28,758 98,118 1,826,992 -
332,495 - 332,759 -
- - 736,421 -
- - - 972
- - - 79,908
1,479,519 181,848 1,661,367 -
116,016 12,317 586,370 137,458
- - - 109,700
- - 1,850,220 316,236
2,763,791 414,881 10,496,029 1,761,998
38,673 4,106 195,449 45,820
2,775,799 616,844 10,794,774 -
1,307,454 277,963 7,190,996 -
- - 75,354,576 173,739
4,121,926 898,913 93,535,795 219,559
6,885,717 1,313,794 104,031,824 1,981,557 3,808,326 16,688,644 21,071,375 -
111,601 24,800 434,003 -
107,629 22,882 591,959 -
4,027,556 16,736,326 22,097,337 -
11,148,014 1,557,017 129,088,788 1,650,832 1,041,064 560,327 62,816,114 -
- - 5,183,322 -
- - - 2,945,558
- - 14,587,194 -
5,024,134 (443,352) (35,943,737) 6,683,864 17,213,212$ 1,673,992$ 175,731,681$ 11,280,254$ 35 215
City of Pittsburg
Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2023
Major Enterprise Funds
Water Sewer
Utility Utility Marina
OPERATING REVENUES:

Charges for services 24,663,999$ 4,878,036$ 1,308,021$ Meter fees 38,624 - - Other fees 458,454 - - Facility reserve fees 1,012,936 186,018 - Rent and concessions - - 48,296 Gas and oil sales - - 810,083 Other operating revenues 557,833 85,953 217,216 Total Operating Revenues 26,731,846 5,150,007 2,383,616 OPERATING EXPENSES:

Salaries and wages 4,124,181 931,025 527,647 Department supplies 9,046,373 79,172 698,703 Rentals 13,005 89 18,020 Utilities 1,103,985 16,157 230,364 Maintenance and operations 1,854,688 587,325 436,804 Depreciation (Note 7) 1,856,500 874,550 466,921 Insurance premiums - - - Insurance deductible 359,612 87,765 53,491 Fringe benefits 2,125,524 546,246 271,763 Other operating expenses 1,113,126 281,108 156,063 Total Operating Expenses 21,596,994 3,403,437 2,859,776 OPERATING INCOME (LOSS) 5,134,852 1,746,570 (476,160)

NONOPERATING REVENUES (EXPENSES):

Investment earnings 2,164,230 124,688 55,753 Intergovernmental - - - Interest and fiscal charges (2,795,886) - - Gain on disposal of assets - - - Total Nonoperating Revenues (Expenses) (631,656) 124,688 55,753 INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS 4,503,196 1,871,258 (420,407) CONTRIBUTIONS AND TRANSFERS:

Transfers in (Note 6C) 3,814,051 - 379,751 Transfers out (Note 6C) (730,525) (4,132,912) (22,659) Total Contributions and Transfers 3,083,526 (4,132,912) 357,092 Change in Net Position 7,586,722 (2,261,654) (63,315) NET POSITION:

Beginning of Year 89,343,236 52,049,274 10,190,214
End of Year 96,929,958$ 49,787,620$ 10,126,899$ See accompanying notes to basic financial statements
36 216
Major Enterprise Funds Governmental
Total Activities
Pittsburg Water Front Enterprise Internal
Power Operations Funds Service Funds
11,245,473$ 2,330$ 42,097,859$ 16,014,346$ - - 38,624 - 1,073,535 - 1,531,989 - - - 1,198,954 - 179,517 823,966 1,051,779 - - - 810,083 - 417,150 - 1,278,152 749,573 12,915,675 826,296 48,007,440 16,763,919 1,643,784 153,558 7,380,195 1,330,413 6,361,715 17 16,185,980 1,352,167 50,434 19 81,567 44,779 59,039 - 1,409,545 479,877 1,534,309 159,537 4,572,663 1,258,476 545,917 5,415 3,749,303 834,530 411,402 - 411,402 2,992,958 65,984 28,516 595,368 261,729 707,294 186,161 3,836,988 5,992,511 856,449 204,663 2,611,409 35,929 12,236,327 737,886 40,834,420 14,583,369 679,348 88,410 7,173,020 2,180,550 438,457 651,798 3,434,926 134,936 92,841 - 92,841 - - - (2,795,886) - - - - 83,833 531,298 651,798 731,881 218,769 1,210,646 740,208 7,904,901 2,399,319 471,587 160,000 4,825,389 570,000 (905,318) (17,791) (5,809,205) (29,213) (433,731) 142,209 (983,816) 540,787 776,915 882,417 6,921,085 2,940,106 16,436,297 791,575 168,810,596 8,340,148
17,213,212$ 1,673,992$ 175,731,681$ 11,280,254$ 37 217
City of Pittsburg
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2023
Major Enterprise Funds
Water Sewer
Utility Utility Marina
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers 26,051,615$ 5,055,037$ 2,216,755$ Cash receipts from interfund services provided - - -
Cash payments to suppliers of goods and services (12,109,193) (1,454,160) (1,463,111) Cash payments to or on behalf of employees for services (7,181,760) (1,641,474) (972,166) Other operating revenues 557,833 85,953 217,216 Net cash provided (used) by operating activities 7,318,495 2,045,356 (1,306) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Interfund receipts - 25,847 -
Intergovernmental receipts - - -
Interfund payments - - -
Transfers in 3,814,051 - 379,751
Transfers out (730,525) (4,132,912) (22,659) Net cash provided (used) by noncapital financing activities 3,083,526 (4,107,065) 357,092 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Principal paid on long-term debt (1,780,379) - -
Interest and fiscal charges paid on long-term debt (2,771,091) - - Payments made on lease - - -
Proceeds from sale of capital assets - - -
Acquisition of capital assets (2,043,062) (1,836,823) (90,376) Net cash provided (used) by capital and related financing activities (6,594,532) (1,836,823) (90,376) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest on and change in market values of investments 2,164,230 124,688 55,753 Net cash provided (used) by investing activities 2,164,230 124,688 55,753 Net increase (decrease) in cash and cash equivalents 5,971,719 (3,773,844) 321,163 CASH AND CASH EQUIVALENTS:

Beginning of Year 85,892,263 9,492,233 1,406,403
End of Year 91,863,982$ 5,718,389$ 1,727,566$

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

Operating income (loss) 5,134,852$ 1,746,570$ (476,160)$ Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:

Depreciation 1,856,500 874,550 466,921 Changes in operating assets and liabilities:

Accounts receivable (122,352) (9,021) 50,285 Prepaid items (46) 4 70
Leases receivable and related deferred inflows of resources - - (16,665) Accounts payable 1,300,530 (397,544) 124,140 Salaries and wages payable - - -
Refundable deposits 81,066 (5,000) 53,328
Taxes payable - - (30,469)
Unearned revenue - - -
Compensated absences 10,647 2,722 (7,316)
Due to retirement system 66,753 15,706 11,779
Due to OPEB system (1,009,455) (182,631) (177,219) Insurance claims payable - - -
Net cash provided (used) by operating activities $ 7,318,495 $ 2,045,356 $ (1,306) NON-CASH TRANSACTIONS:

Retirement of capital assets $ - $ - $ -
See accompanying notes to basic financial statements
38 218
Major Enterprise Funds Governmental
Total Activities
Pittsburg Water Front Enterprise Internal
Power Operations Funds Service Funds
12,184,606$ 18,341$ 45,526,354$ -$ - - - 16,034,092 (8,792,663) (539,024) (24,358,151) (6,408,419)
(2,739,205) (859,074) (13,393,679) (7,009,382) 417,150 - 1,278,152 749,784 1,069,888 (1,379,757) 9,052,676 3,366,075
- - 25,847 99 92,841 - 92,841 - - - - (25,847) 471,587 160,000 4,825,389 570,000 (905,318) (17,791) (5,809,205) (29,213) (340,890) 142,209 (865,128) 515,039 - - (1,780,379) - - - (2,771,091) - - - - (364,066) - - - 83,834 (206,182) - (4,176,443) (833,066) (206,182) - (8,727,913) (1,113,298) 438,458 651,798 3,434,927 134,936 438,458 651,798 3,434,927 134,936 961,274 (585,750) 2,894,562 2,902,752
8,446,538 1,747,163 106,984,600 7,758,766
9,407,812$ 1,161,413$ 109,879,162$ 10,661,518$ 679,348$ 88,410$ 7,173,020$ 2,180,550$ 545,917 5,415 3,749,303 834,530 (507,922) (25) (589,035) 19,957 (5,775) - (5,747) 10,074 (57,957) (537,403) (612,025) - 491,487 (136,829) 1,381,784 (17,253)
- - - 304,853 (17,319) (9,443) 102,632 - 130,458 - 99,989 - 199,778 (807,930) (608,152) - 2,108 (12,077) (3,916) 15,608 35,339 7,854 137,431 - (425,574) 22,271 (1,772,608) - - - - 17,756 $ 1,069,888 $ (1,379,757) $ 9,052,676 $ 3,366,075 $ - $ - $ - $ - 39 219

CITY OF PITTSBURG
Annual Comprehensive Financial Report
June 30, 2023
220

FIDUCIARY FUND

FINANCIAL STATEMENTS

The fiduciary funds account for resources received an d are held by the City in a fiduciary capacity.

Disbursements are made in accordance with the trust agreement or applicable legislative enactment for each fund.

Successor Agency to the Redevelopment Agency Private – Purpose Trust – This fund was established to account for the activities of the Successor Agency to the former Redevelopment Agency of the City of Pittsburg.

Custodial Funds – These funds are used to report resources, no t in a trust, that are held by the City for other parties outside the City’s reporting entity.

41 221

CITY OF PITTSBURG
Annual Comprehensive Financial Report
June 30, 2023
222
City of Pittsburg
Statement of Fiduciary Net Position
June 30, 2023
Successor Agency
to the
Redevelopment Agency
ASSETS Private-Purpose Trust Fund Custodial Funds
Cash and investments (Note 2) 2,740,687$ 4,827,781$ Cash and investments held by fiscal agent (Note 2) 44,043,731 1,465,463 Assessment receivable - 988,100 Inventory 16,821 -
Loans receivable (Notes 15A) 6,892,591 - Capital assets (Note 15B):

Land 1,151,580 -
Depreciable capital assets, net 1,372,420 - Total Assets 56,217,830 7,281,344

LIABILITIES
Accounts payable 14,002 1,263,912 Interest payable 5,240,083 - Deferred assessments:

Due within one year 23,682 1,016,737 Due in more than one year 9,347 - Long-term debt (Note 15C):

Due within one year 24,990,000 - Due in more than one year 157,434,427 - Total Liabilities 187,711,541 2,280,649

NET POSITION
Held in Trust for Private Purpose (131,493,711) - Restricted for bondholders - 5,000,695 Total Net Position (Deficit) (131,493,711)$ 5,000,695$ See accompanying notes to financial statements
43 223
City of Pittsburg
Statement of Changes in Fiduciary Net Position
For the Year Ended June 30, 2023
Successor Agency
to the
Redevelopment Agency
ADDITIONS Private-Purpose Trust Custodial Funds
Property tax and special assessments 31,978,811$ 3,431,532$ Use of money and property 938,344 130,384 Other revenues 429,258 - Total Additions 33,346,413 3,561,916

DEDUCTIONS
General administration 424,579 1,605,369 Pass -thru payments 4,558 - Loss on disposition of capital assets (378,860) - Depreciation expense (Note 15B) 43,541 - Payment to bond holders - 4,836,969 Interest and fiscal charges 12,551,822 - Total Deductions 12,645,640 6,442,338 Change in Net Position 20,700,773 (2,880,422)

NET POSITION (DEFICIT)
Beginning of Year (152,194,484) 7,881,117 End of Year (131,493,711)$ 5,000,695$ See accompanying notes to financial statements
44 224
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The basic financial statements of the City of Pitt sburg, California, (City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental a g e n c i e s . T h e G o v e r n m e n t a l A c c o u n t i n g S t a n d a r d s B o a r d s ( G A S B ) i s t h e a c c e p t e d s t a n d a r d s e t t i n g body for establishing governmental accounting and financial reporting principles. The more significant of the City’s accounting policies are described below.

A. Reporting Entity

The City was incorporated under th e General Laws of the State of Ca lifornia and enjoys all the rights and privileges pertaining to such “General Law” citi es. The City uses the Ci ty Council/Manager form of government. The financial reporting entity cons ists of (a) the primary government, the City, (b) organizations for which the primary government is fi nancially accountable, and (c) other organizations for which the primary government is not accountable, but for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete.

Component units are legally separate organization s for which the elected officials of the primary government are financially accountable. In additi on, component units can be other organizations for which the primary government’s exclusion would caus e the reporting entity’s financial statements to be misleading or incomplete.

The criteria used in determining the scope of the reporting entity are based on the provisions of Governmental Accounting Standards Board (GASB) Statement No. 14, as amended by No. 61. The City is the primary governmental unit. Component units are those entities which are financially accountable to the primary government, either beca use the City appoints a voting majority of the component unit’s board, or because the component un it will provide a financ ial benefit or impose a financial burden on the City. The following entities have been accounted for as “blended” component units of the City. Despite being legally separate, these entities are so intertwined with the City that they are, in substance, part of the City’s operations. Accordingly, the balances and transactions of these component units are reported within the funds of the City. Balances for these entities are reported as separate funds in the special revenue and enterprise fu nds. The following specific criteria are used in determining that these other entities are blended component units:

• The members of the City Council also act as the governing bodies of the entities. • The entities are managed by employees of the City. A portion of the City’s salary and overhead expenses are billed to the entities each year.
• The City and the entities are financially interdependent. The City makes loans to the entities for community development purposes and for operational purposes. General revenues of the agencies are used to repay the loans to the City.
45 225
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

The following is a brief review of the component un its included in the accompanying basic financial statements of the City:

Housing Authority

Housing Authority Section 8, in the accompanying fi nancial statements, was established to account for Federal funds for low income housing under both certificate and voucher programs. The Housing Authority also administers the Veterans Affairs Supportive Housing (VASH), which provides rental and other clinical services to homeless veterans. The Housing Authority is reported as a blended component unit because the Board is made up of the City Council members, and the Housing Authority has a financial benefit/burden relation ship with the City. The Housing Authority is reported in the special revenue fund of the City. No separate financial report is issued by the Housing Authority.

Successor Agency

The Successor Agency was established to account for activities related to the assets assumed by the City as Housing Successor to the Pittsburg Redevelopment Agency for the housing activities of the former Redevelopment Agency. The Successor Agency is re ported as a blended component unit because the Board is made up of the City Council members, an d has a financial benefit/bu rden relationship with the City. The Successor Agency is reported in the special revenue fund of the City. No separate financial report is issued by the Successor Agency.

Successor Agency Housing

The Housing Successor Agency was established to acco unt for activities related to the assets assumed by the City as Housing Successor to the Pittsburg Redevelopment Agency for the housing activities of the former Redevelopment Agency. The Housing Succ essor is reported as a blended component unit because the Board is made up of the City Council members, and has a financial benefit/burden relationship with the City. The Su ccessor Agency Housing is reported in the special revenue fund of the City. No separate financial report is issued by the Housing Successor Agency.

Pittsburg Infrastructure Financing Authority

The Public Infrastructure Financing Authority (PIFA) was established by a Joint Exercise of Powers Agreement dated December 5, 1994, by and among the City and the former Redevelopment Agency, and is qualified to issue bonds under the Mello-Roos Local Bond Pooling Act of 1985. The PIFA was formed to finance the acquisition of certain pub lic improvements and to refinance prior outstanding special assessment district debt with City commitment. The PIFA is reported as a blended component unit because its governing body consists of City Council members, and the PIFA has a financial benefit/burden relationship with the City. The PI FA is currently inactive; therefore, no separate financial report is issued.

46 226
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Southwest Pittsburg GHAD II

The Southwest Pittsburg GHAD II (GHAD) was established by City Council in order to provide maintenance of slope stability in the open spaces areas of Southwest Pittsburg. Funding for the GHAD is provided through assessment fees levied on the property taxes of the homes built on the hillside areas. This fund centralizes the accounting for th e revenues and expenses associated with GHAD as required by law. The GHAD is reported as a bl ended component unit because its governing body consists of City Council members, and the GHAD ha s a financial benefit/burden relationship with the City. No separate financial report is issued by the GHAD.

Pittsburg Power Company

The Pittsburg Power Company (the Company) was established by a Joint Exercise of Powers Agreement dated September 23, 2006, by and am ong the City and the Agency. The Company was formed to establish a municipal utility for natural gas and electric service. The Company is reported in the Pittsburg Power enterprise fund of the City. The Company is reported as a blended component unit because its governing body consists of City Council members, and the Company has a financial benefit/burden relationship with the City. No separate financial report is issued by the Company.

Pittsburg Arts and Community Foundation

The Pittsburg Arts and Community Foundation (PAC F) was created as an independent non-profit corporation set up to increase, support and encourag e art, literacy, education, economic development, affordable housing and other community resources an d programs to benefit the City of Pittsburg and its residents.

Since the City of Pittsburg and PACF have the same governing board, have a financial benefit/burden relationship and the City can impo se its will on PACF, it is requir ed to be reported as a blended component unit of the City. Its financial information can be found as a special revenue fund under non- major Governmental Funds. No separate financial report is issued by PACF.

B. Basis of Accounting and Measurement Focus

The accounts of the City are organi zed on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund ar e accounted for in a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. City resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled.

47 227
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Government-Wide Financial Statements

The Government-Wide Financial Statements include a Statement of Net Position and a Statement of Activities. These statements present summaries of Governmental and Business-Type Activities for the City accompanied by a total column.

These financial statements are presented on an “ economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and defe rred outflows and liabilities and deferred inflows, including capital assets, as well as infrastructure assets, and long-term liabilities and deferred inflows, are included in the accompanyi ng Statement of Net Position. The Statement of Activities presents changes in net position. Un der the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.

Certain types of transactions reported as progra m revenues for the City are reported in three categories:

• Charges for services
• Operating grants and contributions
• Capital grants and contributions

Certain eliminations have been made as prescribed by GASB Statement No. 34 in regard to inter-fund activities, payables and receivables. All internal ba lances in the Statement of Net Position have been eliminated except those representing balances be tween the governmental activities and the business- type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. The following inter-fund activities have been eliminated:

• Due to/from other funds
• Advances from/to other funds
• Transfers in/out

The City applies all applicable GASB pronounc ements (including all NCGA Statements and Interpretations currently in effect).

Governmental Fund Financial Statements

Governmental Fund Financial Statements includ e a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds aggregated. An accompanying schedule is presente d to reconcile and explai n the differences in net position as presented in these statements to th e net position presented in the Government-Wide financial statements. The City has presented all majo r funds that met the qualifications for major fund reporting. The following are descriptions of the major funds.

48 228
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) General Fund – This fund is used for all the general reve nues of the City not specifically levied or collected for other City funds and the related expenditures. The General Fund accounts for all financial resources which are not accounted for in another f u n d . T o c o m p l y w i t h G A S B 5 4 , t h e B u d g e t Stabilization and Economic Development balances are combined and reported under the General Fund.

Details are as follows:

Fund Balances
General Fund 23,624,577$
Budget Stabilization 2,445,285
Economic Development 1,501,230
Total 27,571,092$
Housing Authority (Section 8) Special Revenue Fund – This fund was established to administer grants from Housing and Urban Development Department (HUD) to subsidize the rental costs of low-income families and veterans.

Successor Agency Housing Special Revenue Fund – This fund accounts for the activities related to the housing assets assumed by the City as Housing Su ccessor to the former Redevelopment Agency. The activities are governed by California redevelopment law and must be used to provide housing for people with low and moderate incomes.

Miscellaneous Grants Special Revenue Fund – This fund receives various grants to administer the police, recreation, public services and the American Rescue Plan Act funding.

All governmental funds are accounted for on a spendi ng or "current financial resources" measurement focus and the modified accrual ba sis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheets. The Statement of Revenues, Expenditures and Changes in Fund Balances presents increases (revenues and ot her financing sources) and decreases (expenditures and other financing uses) in net current position. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. Acco rdingly, revenues are recorded when received in cash, except that revenues subject to accrual (gener ally 60 days after year-end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property tax, charges for services, Federal and Stat e grants, sales taxes and ea rnings on investments.

Expenditures are recorded in the accounting period in which the related fund liability is incurred.

Reconciliations of the Fund Financial Statements to the Government-Wide Financial Statements are provided to explain the differences created by the integrated approach. 49 229
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Proprietary Fund Financial Statements

Proprietary Fund Financial Statements include a Statement of Fund Net Position, a Statement of Revenues, Expenses and Changes in Fund Net Position, and a Statement of Cash Flows for each major proprietary fund and non-major funds aggregated.

A separate column representing internal service fund s is also presented in these statements. However, internal service balances and activities have been combined with the governmental and business-type activities in the government-wide financial statements as appropriate.

Proprietary funds are accounted for using the “e conomic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets , deferred outflows, liabilities and deferred inflows (whether current or noncurrent) are included on the Statement of Fund Net Position. The Statement of Revenues, Expenses and Changes in Fund Net Position present increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.

Operating revenues in the proprietary fund are th ose revenues that are generated from the primary operations of the fund. All other revenues are repo rted as non-operating revenues. Operating expenses are those expenses that are essential to the primar y operations of the fund. All other expenses are reported as non-operating expenses.

The following are descriptions of the major enterprise funds.

Sewer Utility Fund – This fund accounts for the revenues an d expenses associated with the maintenance and repair of 126 miles of sewer mains, sewer lift stat ions and sewer laterals within the City's right-of- way.

Marina Fund – This fund accounts for the revenues receiv ed from Marina berth rentals, from sales of gasoline, and expenses from operation and maintenance.

Pittsburg Power Fund – This fund was created by the Joint Powers Agreement between the City of Pittsburg and the former Redevelopment Agency to develop revenue streams, to manage different activities for power related projec ts, capital improvement projects, an d bond issuance process. This fund also accounts for expenditures incurred in main tenance of the facilities, in distributing gas and electricity to the industries, schools, business, and residents of Mare Island, in Vallejo, and to account for revenues collected from services to customers.

50 230
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Water Front Operations Fund – This fund was created for the collection of rents and other trust revenues from the tidelands granted by the Contra Costa County Local Agency Formation Commission within Pittsburg's city limits. The City shall submit a pl an indicating details of intended development, preservation, or other use of the trust lands. Any use of the trust lands shall be consistent with the plan as approved by the Commission.

Internal service fund balances and activities have been combined with governmental activities in the government-wide financial statements, and are comprised of the following funds:

Fleet Maintenance Fund – Used to account for the costs of operating, maintaining, and replacing automotive equipment used by other departments. Rental rates charged to the using departments include operating costs and equipment depreciation.

Building Maintenance Fund – Used to account for the cost of maintaining all City governmental buildings.

Insurance Fund – Used to account for revenues from charges to operating departments sufficient to provide adequate reserve for future claims.

Information/Communication Services Fund – Used to account for the cost of operating, maintaining and replacing a data processing system. Rental rates charged to the using departments include operating cost and equipment depreciation.

Fringe Benefits Fund – Used to allocate fringe costs to various departments.

Other Post-Employment Benefits (OPEB) Fund – Used to reduce unfunded OPEB liabilities and to pay the City’s portion of current year retiree medical expens es. This fund receives its funding from surplus funds beyond the maximum amount required for the Budget Stabilization reserve (25% of surplus) and from Citywide allocations based on salaries.
115 Pension Trust Reserve Fund – Used to accumulate funds to pay down CalPERS Unfunded Accrued Liability.

The City also reports fiduciary fund types.

Fiduciary Fund Financial Statements – Fiduciary fund financial statements include a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position. The City’s fiduciary funds represent a private purpose trust fund and cu stodial funds. Custodial funds account for assets held by the City in a purely custodial capacity. Custodial funds typically involve only the receipt, temporary investment and remittance of fiduciary re sources to individuals, private organizations or other governments.

The Fiduciary funds are presented on an “ economic resources” measurement focus and the accrual basis of accounting.
51 231
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Successor Agency to the Redevelopment Agency Pr ivate Purpose Trust Fund (Successor Agency) – This fund was created to account for the accumulation of re sources to be used for payments at appropriate amounts and times in the future.

Assessment Districts Custodial Fund accounts for the collection of pr operty taxes and the payments to bondholders.

Other Impact Fees Custodial Fund accounts for the collection of develo per fees on behalf of the Contra Costa Fire Protection District (CCFPD), Contra Costa Water District (CCWD) and the East Contra Costa Regional Fee and Finance Authority (ECCRFF).

C. Use of Restricted/Unrestricted Net Position
When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the City’s policy is to apply restricted net position first.

D. Spending Policy
The City’s policy is to spend restricted fund balances first, before spending unrestricted fund balances, for expenditures incurred for purposes for which bo th restricted and unrestricted fund balances are available, except for instances wherein an Agency ordinance or resolution specifies the fund balance.

The Agency’s policy is that committed and assigned fund balances are consider ed to have been spent first before unassigned fund balances have been spent, when expenditures are incurred for purposes for which amounts in any of those unrestricted fund balance classifications co uld be used, except for instances wherein an Agency ordinance specifies the fund balance.

E. Cash and Investments
The City pools its available cash for investment purposes. The City ’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with an original maturity of three months or less from the date of acquisition. Cash and cash equivalents are combined with investments and displayed as Cash and Investments.

In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, highly liquid market investments with maturities of one year or less at time of purchase are stated at am ortized cost. All other investments are stated at fair value. Market value is used as fair value for those securities for which market quotations are readily available. 52 232
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The City participates in an investment pool manage d by the State of California, entitled Local Agency Investment Fund (LAIF), which has invested a portion of the pool funds in Structured Notes and Asset- Backed Securities. LAIF’s investments are subject to credit risk with the full faith and credit of the State of California collateralizing thes e investments. In addition, these Structured Notes and Asset-Backed Securities are subject to market risk as to change in interest rates.

In accordance with GASB Statement No. 40, Deposit and Investment Disclosures (Amendment of GASB No. 3), certain disclosure requirements for Deposits an d Investment Risks were made in the following areas:
• Interest Rate Risk
• Credit Risk
• Overall Custodial Credit Risk
• Concentrations of Credit Risk
In addition, other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures.

F. Restricted Cash and Investments
Certain restricted cash and investments are held by fiscal agents for the redemption of bonded debt and for acquisition and construction of capital proj ects, and for pension trust reserves deposited in a Section 115 irrevocable trust.

G. Property Taxes
Under California law, property taxe s are assessed and collected by the counties up to 1% of assessed value, plus other increases approv ed by the voters. The property ta xes go into a pool, and are then allocated to the cities based on complex formulas. Accordingly, the City accrues only those taxes which are receivable from the county within sixty days after year-end.

Lien Date January 1
Levy Date July 1
Due Date Secured: November 1 and February 1
Unsecured: July 1
Collection Date Secured: December 10 and April 10
Unsecured: August 31
Property taxes levied are recorded as revenue when received, in the fiscal year of levy, because of the adoption of the “alternate method of property tax di stribution,” known as the Teeter Plan, by the City and Contra Costa County. The Teet er Plan authorizes the Auditor/Controller of Contra Costa County to allocate 100% of the secured property taxes billed, but not yet paid. 53 233
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) H. Interfund Balances/Internal Balances
Advances to and advances from other funds represent inter-fund loans in the fund financial statements. Advances between funds are offset by a fund balance reservation or by deferred revenue in the applicable governmental funds to indicate th at they are not expendable available financial resources.

Any unpaid interest due to lack of funds in the borrowing fund increases the principal owed and is reported in the lending fund as deferred revenue.

All other outstanding balances between funds are repo rted as due to and due from other funds. These are generally repaid within the following fiscal year.

Any residual balances outstanding between the governmental activities and business-type activities are reported in the Government-Wide Financial Statements as “internal balances.” I. Capital Assets
Capital assets, which include land, buildings, improvements other than buildings, machinery and equipment and infrastructure assets (e.g. roads, brid ges, sidewalks, and simila r items), are reported in the applicable governmental or business-type activities in the Government-Wide Financial Statements.

Capital assets are recorded at historical cost or estima ted historical cost if actu al cost is not available, except for intangible right-to-use lease assets, th e measurement of which is discussed in Note 4.

Contributed capital assets are valued at their estimated acquisition value on the date contributed.

City policy has set the capitalization thresholds for reporting capital assets as follows:
• General Capital Assets $5,000
• Infrastructure Capital Assets $25,000
Depreciation is recorded on a straight-line method over the useful lives of the assets as follows:
• Building and Improvements 20 - 70 years
• Machinery and Equipment 3 - 10 years
• Infrastructure 20 - 75 years
• Right-to-use Leased Buildings 4 - 20 years
The GASB Statement No. 34 requires the inclusion of infrastructure capital assets in local governments’ basic financial statements. In accordance with GASB Statement No. 34, the City has included the value of all infrastructure assets in its Government-Wide Financial Statements. 54 234
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The City defines infrastructure as the basic physical assets that allow the City to function. The assets include:
• Street system
• Site amenities such as parking and landscaped areas used by the City in the conduct of its business • Water and sewer plants
Each major infrastructure system can be divided into subsystems. For example the street system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, traffic control devices (signs, signals and pavement markings), landscapin g and land. These subsystems were not delineated in the Government-Wide Financial Statements. Th e appropriate operating department maintains information regarding the subsystems.

For all infrastructure systems, th e City has elected to use the Basi c Approach as defined by GASB Statement No. 34 for infrastructure reporting. The City conducted a valuation of its infrastructure assets as of July 1, 2002. This valuation determ ined the original cost using one of the following methods:
1) Use of historical records where available.
2) Standard unit costs appropriate for the construction/acquisition date of the asset. 3) Present replacement cost indexed by a recipr ocal factor of the price increase from the construction/acquisition date to the current date.

The accumulated depreciation, defined as th e total depreciation from the date of construction/acquisition to the cu rrent date was computed on a stra ight-line method using industry accepted life expectancies for each infrastructure subsystem. The book value was then computed by deducting the accumulated depreciation from the original cost.

Interest accrued during capital assets construction, if any, is capitalized for the business-type activities and proprietary funds as part of the asset cost.

J. Interest Payable
In the government-wide financial statements, interest payable on long-term debt is recognized as the liability incurred for governmental fund types and proprietary fund types.

In the fund financial statements, propriety fund ty pes recognize the interest payable when the liability is incurred.
55 235
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

K. Long-Term Debt

Government-Wide Financial Statements

Long-term debt and other financial obligations are reported as liabilities in the appropriate activities.

Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable premium or discount.

Fund Financial Statements

The Governmental Fund Financial Statements do no t present long-term debt, which are shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position.

Governmental funds recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued and lease liabilities are re ported as other financial sources. Premiums received on debt issuance are reported as othe r financing sources while discounts on debt issuance are reported as other financing uses . Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

Proprietary Fund Financial Statements use the same principles as those used in the Government-Wide Financial Statements.

L. Unearned Revenue

Government-Wide Financial Statements

Unearned revenue is recognized for transactions fo r which revenue has not yet been earned. Typical transactions recorded as unearned revenues in the Government-Wide Financial Statements are unearned grants and prepaid charges for services.

Fund Financial Statements

Unavailable revenue is recorded wh en transactions have not yet met the revenue recognition criteria based on the modified accrual basis of accounting. The City records unavailable revenue for transactions for which funds are not available to meet current financial obligations. Typical transactions for which unavailable revenue is recorded are grants received but not yet earned or available, interest on inter-fund advances receivable and long-term loans receivable.

56 236
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

M. Compensated Absences

City employees have vested interests in varying leve ls of vacation compensation. If vacation is not used by the employee during the term of employment , compensation is payable to the employee at the time of retirement or termination. Such compensation is calculated at the employee’s then prevalent rate at the time of retirement or termination an d compensated at 100% of accumulated hours. The City’s liability for compensated absences is recorded in various Governmental funds or Proprietary funds as appropriate. The liability for compensate d absences is determined annually. Compensated absences for governmental activities are liquidated primarily by the General Fund.

Governmental funds include only amounts expected to be paid after the end of the fiscal year for terminated employees. The long-term liabilities are recorded in the Statement of Net Position.

The change in compensated absences was as follows at June 30, 2023:

Governmental
Activities
Business-Type
Activities Total
Beginning Balance 3,231,670$ 785,735$ 4,017,405$ Net Additions (Payments) 199,736 (3,916) 195,820 Ending Balance 3,431,406$ 781,819$ 4,213,225$ Current Portion 2,573,554$ 586,370$ 3,159,924$

N. Deferred Outflows/Inflows of Resources

In addition to assets, the statement of net positi on or balance sheet reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) un til then. The City has reported deferred outflows of resources in the Statement of Net Position an d Proprietary Fund Statements for the pension and OPEB related adjustments.

In addition to liabilities, the statement of net posi tion or balance sheet reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources , represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has two items, which arise only under a modified accrual basis of accounting, that qualifies for reporting in this category. Accordingly, the items, unavailable revenue and deferred inflows related to leases receivable, are reported in the governmental funds balance sheet. The governmental funds report unavailable revenues from loans and leases. The City has reported deferred inflows of resources in the statement of net positi on and proprietary fund statements for pension, OPEB, and lease relate d adjustments. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. 57 237
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

O. Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The City categorizes its fair value measurements within the fair value hier archy established by generally accepted accounting principles. The fair value hierarchy categorizes the i nputs to valuation techniques used to measure fair value into three levels based on th e extent to which inputs used in measuring fair value are observable in the market.

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 inputs are inputs, other th an quoted prices included within Level 1, that are observable for an asset or liability, either directly or indirectly.

Level 3 inputs are unobservable inputs for an asset or liability.

If the fair value of an asset or liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement.

P. Estimates and Assumptions

The preparation of financial statements in conformi ty with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Q. Leases

A lease is defined as a contract that conveys contro l of the right to use another entity’s nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an exchange or exchange- like transaction. Examples of nonfinancial assets include buildings, land, vehicles, and equipment.

Lessee – The City is a lessee for a noncancellable lease of equipment. The City recognizes a lease liability and an intangible right ‐to‐use lease asset (lease asset) in the government ‐wide financial statements. The City recognizes lease liabilities with an initial, individual value of $100,000 or more.

At the commencement of a lease, the City initially measures the lease li ability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments ma de at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight ‐line basis over its useful life.
58 238
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments as follows:

• The City uses the interest rate ch arged by the lessor as the discou nt rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.

• The lease term includes the noncancellable period of the lease.

• Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

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

Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the statement of net position.

Lessor – The City is a lessor for noncancellable leases of buildings and land. The City recognizes a lease receivable and a deferred inflow of resources in the government‐wide and governmental fund financial statements.

At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the leas e term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received . The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferre d inflow of resources is recognized as revenue over the life of the lease term.

Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts as follows:

• The City uses its estimated incremental borrowing rate as the discount rate for leases.

• The lease term includes the noncancellable period of the lease.

• Lease receipts included in th e measurement of the lease rece ivable is composed of fixed payments from the lessee.

The City monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable. 59 239
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

R. Subscription-Based Information Technology Arrangements (SBITAs)

A Subscription-Based Information Technology Arrangem ent (SBITA) is a contract that conveys control of the right to use another party’s (a SBITA vend or’s) IT software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the co ntract for a period of time in an exchange or exchange-like transaction.

At the commencement of a SBITA, the City initially measures the subscription liability at the present v a l u e o f p a y m e n t s e x p e c t e d t o b e m a d e d u r i n g the contract term. Subsequently, the subscription liability is reduced by the principal portion of pa yments made. The subscrip tion asset is initially measured as the initial amount of the subscription liability, adjusted for payments made at or before the SBITA commencement date, plus certain initial dire ct costs. Subsequently, the subscription asset is amortized on a straight ‐line basis over shorter of the subscrip tion term or the useful life of the underlying IT assets.

Key estimates and judgments related to SBITAs include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments as follows:

• The City uses the interest rate charged by th e IT vendor as the discount rate. When the interest rate charged by the IT vendor is not provided, the City genera lly uses its estimated incremental borrowing rate as the discount rate for subscription liabilities.

• The subscription term includes the noncancellable period of the subscription.

• Subscription payments included in the meas urement of the subscription liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

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

Subscription assets are reported with other capital as sets and subscription liabilities are reported with long-term debt on the statement of net position.

60 240
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

S. Implementation of Governmental Accounting Standards Board (GASB) Pronouncements

In May 2020, GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements .

The primary objective of this Statement is to improve financial reporting by establishing a definition for subscription-based information technology arrangem ents (SBITAs) and providing uniform guidance for accounting and financial reporting for transactions that meet that definition. The provisions of this Statement were implemented during fiscal year 2023. As part of the implementation of this Statement, the City has accounted for certain subscription transactions, which requir ed the restatement of beginning net position of the governmental activities capital assets in the amount of $61,300 and the net effect on beginning net position is an increase in that amount. See the subscription disclosure in Note 4.

NOTE 2 – CASH AND INVESTMENTS

The City pools cash from all sources and all funds except Cash and Investments held by Trustees so that it can be invested at the maximum yield consistent with safety and liquidity, while individual funds can make expenditures at any time.

A. Policies

California Law requires banks and savings and loan institutions to pledge government securities with a market value of 110% of the City’s cash on deposit, or first trust deed mortgage notes with a market value of 150% of the deposit, as collateral for these deposits. Under California Law this collateral is held in a separate investment pool by another institution in the City ’s name and places the City ahead of general creditors of the institution.

The City invests in individual investments and in investment pools. Individual investments are evidenced by specific identifiable securities instruments, or by an electronic entry registering the owner in the records of the institution issuing the security, called the book entry syst em. In order to increase security, the City employs the Trust Department of a bank as the custodian of certain City managed investments, regardless of their form. Individual inve stments are generally made by their City’s fiscal agent as required under its debt issues, or throug h the City's Investment Advisor, Chandler Asset Management (CAM).

The City’s investments are carried at fair value, as required by generally accepted accounting principles. The City adjusts the carrying value of its in vestments to reflect their fair value at each fiscal year end, and it includes the effects of these adjustments in income for that fiscal year.

61 241
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 2 – CASH AND INVESTMENTS (Continued)

B. Classification

Cash and investments are classified in the financia l statements as shown below, based on whether or not their use is restricted under the terms of City debt instruments or Successor agreements.

Separate
Government-Wide Statement of Net Position Statement
Governmental Business-Type Fiduciary
Activities Activities Total Funds Total
Cash and investments $ 96,799,908 $ 62,708,529 $ 159,508,437 $ 7,568,468 $ 167,076,905 Restricted cash and
investments 9,147,791 47,170,633 56,318,424 45,509,194 101,827,618 Total cash and
investments $ 105,947,699 $ 109,879,162 $ 215,826,861 $ 53,077,662 $ 268,904,523

C. Investments Authorized by the California Government Code and the City’s Investment Policy

The City’s Investment Policy and the California Government Code allow the City to invest in the following investments, provided the credit ratings of the issuers are acceptable to the City, and approved percentages and maturities are not exce eded. The table below also identifies certain provisions of the California Government Code, or the City’s Investment Policy where the City’s Investment Policy is more restrictive.

Minimum Maximum
Maximum Credit Maximum in per
Authorized Investment Type Maturity Quality* Portfolio Issuer Asset-Backed Securities 5 years "AA" 20% 5%
Bankers' Acceptances 180 days A1/P1 40% 5%
California Asset Management Program (CAMP)
n/a n/a none none
Certificates of Deposit 1 year "A" 30% 5%
Commercial Paper 270 days “A1” ST, "A" LT 25% 5%
Federal Agency Obligations 5 years none none 30%
Local Agency Investment Fund (LAIF) n/a none $75 million none Medium-Term Notes 5 years "A" 30% 5%
Money Market Funds n/a 2 highest ratings 20% 10% per fund Negotiable Certificates of Deposit 5 years 30% 5%
Repurchase Agreements 90 days "A" 15% 5%
State and Local Obligations 5 years "A" 30% 5%
Supranational Securities 5 years "AA" 30% 10%
U.S. Treasury Obligations 5 years none none none
*At time of purchase
62 242
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 2 – CASH AND INVESTMENTS (Continued)

In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Pools, investments were stated at fair value using the aggregate method.

The City’s investments with Local Agency Investme nt Fund (LAIF), a State of California external investment pool, at June 30, 2023, included a portion of the pool funds invested in Structured Notes.

As of June 30, 2023, the City had $54,165,567 invest ed in LAIF, which had inve sted 63.08% of the pool investment funds in U.S. Treasury Obligations. The LAIF fair value factor of 0.984828499 was used to calculate the fair value of the invest ments in LAIF. The fair value of th e City’s position in the pool is materially equivalent to the value of the pool share. At June 30, 2023, these investments matured in an average of 260 days.

D. Investments Authorized by Debt Agreements

The City and Successor Agency to the Redevelopment Agency must maintain required amounts of cash and investments with trustees or fi scal agents under the terms of ce rtain debt issues. These funds are unexpended bond proceeds or are pledged reserves to be used if the agencies fail to meet their obligations under these debt issues. The Californi a Government Code requires these funds to be i n v e s t e d i n a c c o r d a n c e w i t h C i t y r e s o l u t i o n s , b ond indentures or State statutes. The table below identifies the investment types that are authorized for investments held by fiscal agents. The table also identifies certain provisions of these debt agreements:

Maximum Minimum
Authorized Investment Type Maturity Credit Quality
Bankers' Acceptances 180 days A1/P1
California Asset Management Program (CAMP) n/a n/a
Certificates of Deposit 1 year A
Commercial Paper 270 days A1/P1/F1
Guaranteed Investment Agreements n/a none
Local Agency Investment Fund (LAIF) n/a none
Medium Term Notes 5 years A
Money Market Fund n/a 3 highest ratings
Municipal Obligations n/a AAA
Pre-refunded Municipal Obligations n/a AAA
Repurchase Agreements 90 days A
State of California Obligations 5 years A -
U.S. Agencies n/a AAA
U.S. Treasury Obligations 5 years none

63 243
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 2 – CASH AND INVESTMENTS (Continued)
E. Public Agencies Post-Employment Trust
On October 21, 2019, the City Council adopted Re solution 19-13711 approving the adoption of the Public Agencies Post-Employment Tr ust administered by Public Agen cy Retirement Services (PARS).

The Trust is an irrevocable trust and qualifies as an Internal Revenue Section 115 Trust. The Trust will assist the City in mitigating the CalPERS contribution rate volatility. Investments of funds held in the Trust are governed by the Investment Guideline Document for the investment account and by the agreement for administrative services with PARS, ra ther than the general provisions of the California Government Code of the City’s Investment Policy. The City elected a discretionary investment approach which allows the City to maintain oversight of the investment management, control on target yield and the portfolio’s risk of tolerance, under the Moderately Co nservative Index PLUS investment option. The assets in the Trust will eventually be used to fund pension plan obligations.

F. Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observ able inputs; and Level 3 inputs are significant unobservable inputs.

The following is a summary of the fair value hierarchy of the fair value of investments of the City as of June 30, 2023:

Level 2 Total
Investments by Fair Value Level:

U.S. Treasury Obligations 38,715,921$ 38,715,921$ Federal Agency Obligations 29,502,752 29,502,752 Medium-Term Notes 14,657,912 14,657,912
Asset-Backed Securities 4,537,360 4,537,360 Commercial Paper 1,996,229 1,996,229
Negotiable Certificates of Deposit 2,991,593 2,991,593 Supranational Securities 2,484,263 2,484,263 Subtotal 94,886,030$ 94,886,030
Investments Measured at Cost:

Money Market Funds 1,144,900
Held with Trustee:

Money Market Funds 98,317,298
Investments Exempt from Fair Value Hierarchy:

Local Agency Investment Fund 54,165,567
Mutual Funds (PARS Trust) 2,946,493
Investment in Partnership 725,225
Total Investments 252,185,513
Cash in banks and on hand 16,719,010
Total Cash and Investments 268,904,523$
64 244
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 2 – CASH AND INVESTMENTS (Continued)
U.S. Treasury Obligations, Federal Agency Obliga tions, Medium–Term Corporate Notes, Asset-Backed Securities, Commercial Paper, Negotiable Certificates of Deposits and Supranational Securities classified in Level 2 of the fair value hierarchy, are valued us
ing pricing techniques of matrix pricing or market
corroborated pricing, with inputs such as yield curves or indices.

These prices were obtained from various pricing sources by the City’s custodian bank. The Certificates of Deposit were valued using techniques of matrix pricing and multi-dimensional relational model and/or option adjusted spread provided by the City’s custodian bank. The Supranational Securities were valued based on information gathered from market sources an d integrate relative credit information, observed movements, and sector news into the evaluated pricings applications and models provided by the City’s custodian bank.

G. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Normally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates.

Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity.

Less than
Investment Type 1 year 1 - 5 years Total
Local Agency Investment Fund 54,165,567$ -$ 54,165,567$ Medium-Term Notes 7,145,223 7,512,689 14,657,912 Federal Agency Obligations 16,667,412 12,835,340 29,502,752 U.S. Treasury Obligations 19,448,386 19,267,535 38,715,921 Asset-Backed Securities - 4,537,360 4,537,360
Commercial Paper 1,996,229 - 1,996,229
Negotiable Certificates of Deposit 2,991,593 - 2,991,593 Money Market Funds 1,144,900 - 1,144,900
Supranational Securities 1,641,039 843,224 2,484,263 Investment in Partnership - 725,225 725,225
Held by Trustee:

Money Market Funds 98,317,298 - 98,317,298
Mutual Funds (PARS Trust) 2,946,493 - 2,946,493 Total Investments 206,464,140$ 45,721,373$ 252,185,513 Cash in banks and on hand 16,719,010
Total Cash and Investments 268,904,523$
Investment Maturities (in years)
Money Market Funds are available for withdrawal on demand and at June 30, 2023 matured in an average of 1 day.
65 245
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 2 – CASH AND INVESTMENTS (Continued)

H. Credit Risk

Credit risk is the risk that an issuer of an investment will not fulfill its oblig ation to the holder of the investment. This is measured by the assignment of a rating by a nation ally recognized statistical rating organization. Presented below is the actual rating as of June 30, 2023 for ea ch investment type as provided by Standard and Poor’s investment rating system.

Fair Value AAA/AAA m AA+ AA A+ / A / A-1 A- / A-2 Not Rated U.S. Treasury Obligations $ 38,715,921 $ - $ 26,416,637 $ - $ 12,299,284 $ - $ - Federal Agency Obligations 29,502,752 6,077,977 21,429,317 - 1,995,458 - - Medium-Term Notes 14,657,912 - 1,449,706 870,954 8,947,661 3,389,591 - Asset-Backed Securities 4,537,360 4,537,360 - - - - - Commercial Paper 1,996,229 - - - 1,996,229 - - Negotiable Certificates of Deposit 2,991,593 - - - 2,991,593 - - Supranational Securities 2,484,263 2,484,263 - - - - - Local Agency Investment Fund 54,165,567 - - - - - 54,165,567 Money Market Funds 1,144,900 1,144,900 - - - - - Investment in Partnership 725,225 - - - - - 725,225 Held with Trustee:

Money Market Funds 98,317,298 98,317,298 - - - - - Mutual Funds (PARS Trust) 2,946,493 - - - - - 2,946,493 Total Investments 252,185,513 $ 112,561,798 $ 49,295,660 $ 870,954 $ 28,230,225 $ 3,389,591 $ 57,837,285 Cash in banks and on hand 16,719,010
Total Cash and Investments $ 268,904,523

I. Concentration of Credit Risk

There are no investments in securities of individual issuers that were greater than 5% of the City’s total investments as of June 30, 2023.

J. Line of Credit

On June 3, 2022, the City issued an Irrevocable Stan dby Letter of Credit with Bank of the West with a principal sum of $500,000, with an expiration date of June 30, 2024. This credit was established for the benefit of the Housing Authority (Section 8) Special Revenue Fund for advancing the Housing Authority portability-in payments. Advances drawn on the line of credit bear an interest rate at 1% above the prime rate. The City deposited $500,000 as co llateral for the Line of Credit with Bank of the West from the Successor Agency Housing Special Re venue Fund. The outstanding balance on the line of credit at June 30, 2023 was $184,997.

K. Investment in Partnership

In September 2022, the Housing Authority (Authority) entered into an agreement to purchase interests in the Gateway Mixed Use Developmen t, a California limited partners hip (Partnership), from two of the previous limited partners, for the sum of $50, 000. The Partnership owns the Gateway Mixed-Use Project (Project), consisting of 28 affordable units and 8,106 square feet of commercial space, knows as Entrata. The Authority wishes to eventually ac quire the Project for the purpose of maintaining affordable housing.

66 246
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 2 – CASH AND INVESTMENTS (Continued)

Upon purchase of the limited partnership interests, the Authority made a capital contribution to the Partnership in the amount of $675,225 for the purpos e of paying off the existing bond loan on the Project.

As part of the overall agreement the administrative and management general partners have granted the Authority the option to acquire their interests in the Partnership at any time starting on January 1, 2026 for $100 each. The Authority’s intent will be to exercise these options, and will then own the Project.

NOTE 3 – LOANS AND NOTES RECEIVABLES

As of June 30, 2023, loans and notes receivable consisted of the following:

Description Balance
Governmental Activities:

CalHome Program Loans $ 329,826
Century Plaza Corporation 312,810
Domus Development LLC 7,010,490
Domus Development LLC Loan (Sienna Court) 5,928,005 HUD Community Development Block Grant 235,800 Low Income Families Loans 744,720
Mariner Walk Loan 180,000
Vista Del Mar Loans 200,000
Mercy Housing California Loan 4,791,446
PACF Loans 302,007
Presidio Village Senior Housing 804,337 Rehabilitation and Construction Loans 1,225,588 Residential Loans on Vidrio 911,809
Resources for Community Development Loan 7,163,547 Veterans Square Loan 840,894
9th Street Associates (Santa Fe Commons Housing Development) 2,090,899 Stay Cal Loan 3,143,040
Total Governmental Activities - Loans and Notes Receivable $ 36,215,218

A. CalHome Program Loans

CalHome Program funds of $600,000 were awarded by the State of California and are used to provide first-time home buyer mortgage assistance as well as housing rehabilitation assistance for low income homeowners. Loans are payable upon sale or transfer of property, when the property ceases to be owner-occupied, or upon the CalHome loan maturity date. The outstanding balance as of June 30, 2023 was $329,826.

67 247
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 3 – LOANS AND NOTES RECEIVABLES (Continued)

B. Century Plaza Corporation Loan

During fiscal year 2013-14, the City of Pittsbur g approved a loan to Century Plaza Corporation for anchor tenant retention and remodeling of the Century Plaza. The total approved loan amount was $1,300,000 and was disbursed over five years. Lo an bears 2.0%% annual interest and is due and payable on July 1, 2023. Century Plaza Corporation received a loan repayment credit effective July 1, 2019 due to following the terms stipulated by the lo an agreement. The accrued interest will be forgiven along with the loan credit. The outstanding balance as of June 30, 2023 was $312,810.

C. Domus Development LLC Loan

During fiscal year 2005-2006, the former Redevelopment Agency entered into a Development and Disposition Agreement with Domus Development LLC (Developer) of up to $8,000,000 for the development of a 28-unit residential rental dwelling and an 8,000 square feet ground floor commercial space at the northeast corner of Railroad Avenue and 10th Street. Funding was provided by the Housing-Set Aside funds in the amount of $6,000,000 and $2,000,000 by future tax increments. During the fiscal year 2007-2008, an amendment was filed to increase the loan up to an additional $800,000 and $4,845,755 of the loan was disbursed to the Developer. With the dissolution of the Agency effective February 1, 2012, this loan was assumed by the H ousing Successor Agency. The outstanding balance as of June 30, 2023 was $7,010,490.

D. Domus Development LLC (Sienna Court) Loan

During fiscal year 2007-2008, the former Redeve lopment Agency Low-Moderate Income Housing II Special Revenue Fund loaned funds of $250,000 to Domus Development LLC for the feasibility study of a senior affordable housing development (Sienna Court) . The loan bears interest of 3.0% per annum.

The Domus Development LLC loan was amended in fiscal year 2010-2011 to increase the loan by an additional $850,000, and then further amended in fiscal year 2010-2011 bringing total loan funding to $4,323,645. With the dissolution of the Agency effective February 1, 2012, this loan was assumed by the Housing Successor. The outstanding balance as of June 30, 2023 was $5,928,005.

E. HUD Community Development Block Grant (CDBG) Loans

The HUD CDBG Special Revenue fund had a loans receiv able balance of $235,800 as of June 30, 2023, which consisted of $88,769 in CDBG entitlement loans and $147,031 in First Time Homebuyer loans.

F. Low Income Families Loans

During fiscal year 2006-2007 and 2007-2008, the former Redevelopment Agency Low-Moderate Income Housing II Special Revenue Fund loaned funds to lo w income families to purchase homes. The loans bear no interest and are deferred until the property changes title or are refinanced for cash. With the dissolution of the Agency effective February 1, 2 012, this loan was assumed by the Housing Successor Agency. The outstanding balance as of June 30, 2023 was $744,720.

68 248
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 3 – LOANS AND NOTES RECEIVABLES (Continued)
G. Mariner Walk Loan and Vista Del Mar Loans
During fiscal year 2005-2006, a Development and Di sposition Agreement was entered into with Olson Urban Housing LLC (Developer) of up to $1,000,000 and with Lyon Vista Del Mar 533, LLC (Developer) of up to $800,000, to provide mort gage assistance for qualified moderate income households purchasing the affordable units. With the dissolution of the Agency effective February 1, 2012, the loans were assumed by the Housing Successor. The outstanding balances as of June 30, 2023 were $180,000 and $200,000, respectively, for the property owners.

H. Mercy Housing California Loan
During fiscal year 2005-2006, the former Redeve lopment Agency Low-Moderate Income Housing II Special Revenue Fund loaned funds of $1,052,854 to Mercy Housing California for the development of a 64-unit dwelling and child care center located within the Redevelopment Project Area. During the fiscal year 2007-2008, an amendmen t was filed to increase the loan fo r a total of $4,952,854. The loan bears interest of 1.0% per year and provides for the Agency to receive 50.0% of the project’s residual receipts annually. With the dissolution of the Agency effective February 1, 2012, this loan was assumed by the Housing Successor Agency. The outstanding balance as of June 30, 2023 was $4,791,446.

I. Pittsburg Arts and Community Foundation (PACF) Loans During fiscal year 2010-2011, the PACF assumed a construction loan and lease due from a Pittsburg resident. The loan will be repaid through lease payments on 159 4 th Street, with a balloon payment due on December 1, 2023. During fiscal year 2011-2012, PACF assumed an NSP Home Buyer assistance program loan that was issued to a Pittsburg resident . Loan payments are deferred and will be forgiven if the property remains the same as the principal re sidence of the resident. The outstanding balances of these loans as of June 30, 2023 were $277,585 and $24,422, respectively, totaling $302,007.

J. Presidio Village Senior Housing Loans
During fiscal year 2006-2007, the former Redeve lopment Agency Low-Moderate Income Housing II Special Revenue Fund loaned funds of $566,150 to Pacific Community Services for prior construction of 104 units called the Presidio Village Senior Housin g. The loan bears interest of 3.0% per year and provides for the Agency to receive 50.0% of the project’s residual receipts annually. With the dissolution of the Agency effective February 1, 2 012, this loan was assumed by the Housing Successor Agency. The outstanding balance and accrued interest as of June 30, 2023 was $804,337. 69 249
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 3 – LOANS AND NOTES RECEIVABLES (Continued)

K. Rehabilitation and Construction Loans

Housing and rehabilitation loans are provided to homeowners who meet low and moderate income requirements as defined by the Department of Ho using and Urban Developmen t. These residential loans are available from $5,000 to $25,000 per property at a loan term of 3.0% simple interest for 10 years. The property will be rehabilitated to be free from health and safety violations upon completion of the rehabilitation program. The outstanding bala nce of these loan types as of June 30, 2023 was $1,225,588.

L. Residential Loans on Vidrio

During fiscal year 2010-2011, the City of Pittsburg financed several residential loans to the homebuyers of Vidrio Condominium. The outstanding balances as of June 30, 2023 was $911,809.

M. Resources for Community Development Loan

During fiscal year 2006-2007, the former Redeve lopment Agency Low-Moderate Income Housing II Special Revenue Fund loaned funds of $6,105,848 to Resources for Community Development for the development of 71 rental dwellings and a community center. During the fiscal year 2008-2009, an amendment was filed to increase the loan up to an additional $350,000 and $5 ,710,730 of the loan was disbursed to the Developer. The loan bears interest of 1.0% per annum and pr ovides for the Agency to receive 50% of the project’s residual receipts annu ally. With the dissolution of the Agency effective February 1, 2012, this loan was assumed by the H ousing Successor Agency. The outstanding balance as of June 30, 2023 was $7,163,547.

N. Veterans Square Loan

During fiscal year 2020-2021, the Housing Authority of the City of Pittsburg loaned $780,000 to the Veterans Square for the purchase of property located at 901 Los Medanos Street. The loan terms include

3.0% simple interest and is due in 55 years. The repayment will be made from residual receipts. The outstanding balance as of June 30, 2023 was $840,894.

O. 9th Street Associates (Santa Fe Commons Housing Development Loan)

This is a rehabilitation and cons truction loan to eliminate blight to a property owner to assist improvements and rehabilitation of properties that were vacant or underutilized.

During fiscal year 2011-2012, the City provided a prop erty development loan of $1,614,713 to 9th Street Associates LP to develop the units at Santa Fe Commons. The loan terms include 3.0% simple interest and is due in 55 years. The repayment will be made from residual receipts. The outstanding balance as of June 30, 2023 was $2,090,899.

70 250
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 3 – LOANS AND NOTES RECEIVABLES (Continued)
P. Stay Cal Loan
During fiscal year 2022-2023, the City entered a Purchase & Sale Agreement (“PSA”) with Stay Cal Pittsburg, LLC, (Stay Cal) for a loan covering the pu rchase price for the real property located adjacent to the intersection of Railroad Avenue and Center Drive, which encompasses approximately 111,874 square feet to build a Courtyard by Marriott Hotel on the property in the amount of up to $4,300,000.

The loan terms include a growing simple interest rate starting at 3.00% and ma ximizing at 6.00% to be paid over the course of 30 years from the closing date or the sale or transfer of the property by Stay Cal, but no later than March 1, 2053. Repayment will be made by collection of Transient Occupancy Taxes collected by the Courtyard by Marriott, or equivalent hotel constructed upon the site. Additionally, the City agreed to defer certain development fees in an amount no greater than $463,000 to be repaid by Stay Cal commencing the date that the developer be gins to collect transient occupancy tax from the hotel pursuant to a fee deferral agreement. The agreement requires that StayCal collect a total of 12% transient occupancy tax and remit the full amount mo nthly to the City. Of the 12% total, 2% shall be applied to the Deferred Amount owed until fully paid. No interest shall be charged on the deferred amount. The outstanding balance as of June 30, 2023 was $3,143,040.

NOTE 4 – LEASES AND SUBSCRIPTIONS
A. Leases Receivable
The City from time to time engages in lease arrangements allowing the right for others to use various owned land and buildings for the public benefit. The borrowing rate for the leases are implicit in the lease agreements, and therefore, the City has applied the incremental borrowing rate of the City for all leases. As of June 30, 2023, the City’s leases receivable and related deferred inflows of resources consisted of the following:

Lessor
Original
Lease Date
Expiration Date
Including
Options
Annual
Revenue as of
June 30, 2023
Lease
Receivable
Balance at
June 30, 2023
Deferred Inflow
of Resources at
June 30, 2023
Governmental Activities:

Lincoln Child Center 5/20/2013 1/31/2026 $ 116,380 $ 328,625 $ 310,024 DVWB, LLC 12/20/2021 12/31/2029 14,160 114,382 93,182 Total Governmental Activities $ 130,540 $ 443,007 $ 403,206 Business-Type Activities:

Dow Chemical Company 7/1/2014 6/30/2063 $ 344,565 $ 14,191,617 $ 13,522,283 Trans Bay Cable, LLC 11/12/2010 11/21/2050 139,032 3,919,658 3,808,326 USS Posco-Industries 11/18/2006 11/17/2031 288,671 2,186,227 2,597,239 Vee Jay Enterprises 5/1/2018 4/30/2068 12,812 606,279 574,405 Isle Capital Corporation 12/2/1996 12/1/2026 142,373 391,850 569,122 Total Business-Type Activities $ 927,453 $ 21,295,631 $ 21,071,375 71 251
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 4 – LEASES AND SUBSCRIPTIONS (Continued)

Governmental Activities

On May 20, 2013, the City entered in to a 13 year lease as lessor for th e use of Lincoln Child Center. As of June 30, 2023, the value of the lease receivable was $328,625. The lessee is required to make monthly payments of $10,446 increasing by 3% every January 1. The lease has an interest rate of 3.7%. The City has offset the lease receivable with a deferred inflow o f r e s o u r c e s . A s o f J u n e 3 0 , 2 0 2 3 , t h e d e f e r r e d inflow of resources was $310,024. The City recognized lease revenue of $116,380 during fiscal year 2023 under the lease.

On December 20, 2021, the City entered into an 8 year lease as lessor for the use of property owned by the City to DVWB, LLC, including an option to extend the lease an additional 5 years. As of June 30, 2023, the value of the lease receivable was $114,382. The lessee is required to make monthly payments ranging from $1,782 - $1,835. The l e a s e h a s a n i n t e r e s t r a t e o f 3 .7%. The City has offset the lease receivable with a deferred inflow of resources. As of June 30, 2023, the defe rred inflow of resources was $93,182. The City recognized lease revenue of $14,160 during fiscal year 2023 under the lease.

Business-Type Activities

On July 1, 2014, the City entered into a 49 year lease as lessor for the use of land currently developed with two docks with the Dow Chemical Company. As of June 30, 2023, the value of the lease receivable is $14,191,617. The lessee is required to make annu al fixed payments starting with $320,905, increasing by 3% every July 1. The lease has an interest rate of 3.7%. The City has offset the lease receivable with a deferred inflow of resources. As of June 30, 2023, the deferred inflow of resources was $13,522,283. The City recognized lease revenue of $344,565 during fiscal year 2023 under the lease.

On November 12, 2010, the City entered into a 40 year lease as lessor for the use of land with Trans Bay Cable, LLC. As of June 30, 2023, the value of the le ase receivable was $3,919,658. The lessee is required to make monthly fixed payments of $18,978. The lease has an interest rate of 3.7%. The City has offset the lease receivable with a deferred inflow of reso urces. As of June 30, 2023, the deferred inflow of resources was $3,808,326. The City recognized lease revenue of $139,032 during fiscal year 2023 under the lease.

On November 18, 2006, the City ente red into a 25 year lease as less or for the use of land with USS- Posco Industries. As of June 30, 2023, the value of the lease receivable was $2,186,227. The lessee is required to make annual fixed payments in the ra nge of $305,229-$320,705. The lease has an interest rate of 3.7%. The City has offset the lease receivable with a deferred inflow of re sources. As of June 30, 2023, the deferred inflow of resour ces was $2,597,239. The City reco gnized lease revenue of $288,671 during fiscal year 2023 under the lease.

72 252
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 4 – LEASES AND SUBSCRIPTIONS (Continued)

On May 1, 2018, the City entered into a 50 year lease as lessor for the use of marina property with Vee Jay Enterprises. There are options for the lessee to ex tend the lease up to an ad ditional 15 years. As of June 30, 2023, the value of the lease receivable was $606,279. The lessee is required to make monthly fixed payments of $1,534. The lease has an interest rate of 3.7%. The City has offset the lease receivable with a deferred inflow of resources. As of June 30 , 2023, the deferred inflow of resources was $574,405.

The City recognized lease revenue of $12,812 during fiscal year 2023 under the lease.

On December 2, 1996, the City entered into a 30 year lease as lessor for the use of marina property with Isle Capital Corporation. As of June 30, 2023, the value of the lease receivable is $391,850. The lessee is required to make annual payments ranging from $1 32,142 to $140,399 over the life of the lease. The lease has an interest rate of 3.7% . The City has offset the lease rece ivable with a deferred inflow of resources. As of June 30, 2023, the deferred inflow of resources was $569,122. The City recognized lease revenue of $142,373 during fiscal year 2023 under the lease.

B. Lease Liabilities

The City from to time to time engages in lease ar rangements for the right to use various third-party owned land and buildings for the public benefit. As of June 30, 2023, these leases consisted of the following:

Balance Balance Current
June 30, 2022 Payments June 30, 2023 Portion
Governmental Activities
Lease Liabilities
Gateway-Domus $ 579,367 $ 101,872 $ 477,495 $ 105,706 PACF Art Center 188,384 36,157 152,227 38,815 Palermo 510,019 37,5 89 472,430 39,002 Total $ 1,277,770 $ 175,618 $ 1,102,152 $ 183,523

The lease liabilities are offset with intangible right-to-use lease assets as discussed in Note 7.

The future principal and interest lease payments as of June 30, 2023 were as follows:

For the Year
Ended June 30 Principal Interest Total
2024 183,523$ 37,691$ 221,214$ 2025 191,771 30,765 222,536 2026 200,360 23,525 223,885 2027 188,902 16,086 204,988 2028 75,423 10,798 86,221 2029-2033 248,304 26,174 274,478 2034 13,869 86 13,955 Totals 1,102,152$ 145,126$ 1,247,278$

73 253
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 4 – LEASES AND SUBSCRIPTIONS (Continued)

On March 1, 2006, the City entered into a 20 year lease as lessee for the use of a building. An initial lease liability was recorded in the amount of $679, 630. As of June 30, 2023 , the value of the lease liability is $477,495. The City is required to make monthly fixed payments of $10,133. The lease has an i n t e r e s t r a t e o f 3 . 7 % . A s p a r t o f t h e l e a s e , t h e C i t y h a s r e c o r d e d a n i n t a n g i b l e r i g h t t o u s e a s s e t a n d accumulated amortization. As of June 30, 2023, City has recorded an intangible right to use lease asset amounting to $679,630, with accumulated amortization of $210,217.

On February 1, 2020, the City entered into a 7 year lease as lessee for the use of the PACF Art Centre, with an option to extend the lease for 5 additional years. An initial lease liabi lity was recorded in the amount of $213,004. As of June 30 , 2023, the lease liability was $152,2 27. The City is required to make monthly fixed payments of $2,000 through January 2022, with payments increasing between $3,500 - $3,605 thereafter. The lease has an inte rest rate of 3.7%. As part of th e lease, the City has recorded an intangible right to use asset and accumulated amortiza tion. As of June 30, 2023, City has recorded an intangible right to use lease asset amounting to $213,004, with accumulated amortization of $73,227.

On February 19, 2008, the City entered into a 15 year lease as lessee for the use of property known as Palermo, with two extension options totaling an additional 10 years. An initial lease liability was recorded in the amount of $545,743. As of June 30, 2023, the lease liability was $472,430. The City is required to make monthly fixed payments of $4,337. Th e lease has an interest rate of 3.7%. As part of the lease, the City has recorded an intangible righ t to use asset and accumulated amortization. As of June 30, 2023, the City has recorded an intangible right to use lease asset am ounting to $545,743, with accumulated amortization of $86,334.

C. Subscription-Based Information Technology Liability

During fiscal year 2023, the City implemen ted the provisions of GASB Statement No. 96, Subscription- Based Information Technology Arrangements, which required the restatement of capital assets, specifically to incorporate an intangible right-to-use subscr iption asset, and subscription liability. As a result, an initial subscription liability was recorded in the amount of $180,118 as of July 1, 2022 for governmental activities. The subscription liability is offset with subscription assets as discussed in Note 7.

Implementation costs and prepayments made on subscriptions in the amount of $61,300 were not included in the measurement of the liability as of July 1, 2022, and were included in the measurement of the subscription assets in accordance with GASB.

A summary of subscription-based information technology arrangements (SBITA) transactions for the fiscal year ended June 30, 2023, are as follows:

Balance
June 30, 2022 Balance Current
(as restated) Retirements June 30, 2023 Portion
Governmental Activities
Subscription liability
Yardi 180,118$ (45,362)$ 134,756$ 43,912$ Total 180,118$ (45,362)$ 134,756$ 43,912$

74 254
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 4 – LEASES AND SUBSCRIPTIONS (Continued)

On November 23, 2021, the City entered into a subs cription agreement with Yardi Systems, Inc. for a subscription with a 5 year term. Th e City is required to make yearly subscription payments of $46,978. throughout the life of the subscripti on, which ends on December 31, 202 6. Interest is implicit in the subscription agreement in the amount of 3.7%. An initial subscription liability was recorded in the amount of $180,118. As of June 30, 2023, the subscrip tion liability was $134,756. As of June 30, 2023, the City has recorded an intangible right to use subscription asset amounting to $241,418, and accumulated amortization of $54,937.

The future subscription and interest subscription payments as of June 30, 2023 are as follows:

For the Year
Ended June 30 Principal Interest Total
2024 43,912$ 3,066$ 46,978$ 2025 44,911 2,067 46,978
2026 45,933 1,045 46,978
Totals 134,756$ 6,178$ 140,934$

NOTE 5 – UNEARNED AND UNAVAILABLE REVENUE

A. Government-Wide Financial Statements

Unearned revenues in Government-Wide Financial Statements represent amounts for which revenues have not been earned. At June 30, 2023, unearned revenues in the Government-Wide Financial Statements consisted of unearned developer, donation, and grant revenues of $5,071,953 in Governmental Activities and $1,661,367 in Business-Type Activities.

B. Fund Financial Statements

At June 30, 2023, the following amounts were recorded in the Fund Financial Statements because either the revenues had not been earned or the funds were not available to finance expenditures of the current period:

Governmental Funds
General Fund
Housing
Authority
(Sec. 8)
Successor
Agency
Housing
Miscellaneous
Grants
Non-Major
Governmental
Funds
Total
Governmental
Funds
Unearned service revenue 255,085$ 97,658$ -$ 4,668,164$ 51,046$ 5,071,953$ Loans receivable 4,082,192 - 27,663,439 - 4,080,351 35,825,982 Total 4,337,277$ 97,658$ 27,663,439$ 4,668,164$ 4,131,397$ 40,897,935$

75 255
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 5 – UNEARNED AND UNAVAILABLE REVENUE (Continued)

Pittsburg Power
Water Front
Operations Total
Unearned developer/
donation revenue 1,000,610$ -$ 1,000,610$ Unearned service revenue 478,909 181,848 660,757 Total 1,479,519$ 181,848$ 1,661,367$
Business-Type Funds

NOTE 6 – INTERFUND TRANSACTIONS

A. Current Interfund Balances

Current interfund balances arise in the normal course of business and are expected to be repaid shortly after the end of the fiscal year. Current interfund balances are as follows:

DUE FROM FUND DUE TO FUND AMOUNT
Housing Authority (Section 8) Special Revenue Fund General Fund 77,258$ Miscellaneous Grants Special Revenue Fund General Fund 147,576 Non-Major Governmental Funds:

Special Revenue Funds:

Measure J Tax Fund General Fund 574,395
Local Law Enforcement Block Grant General Fund 30,505
Storm Water Utility (NPDES) General Fund 202,327
HUD Community Development Block Grant General Fund 62,343 Golf Course General Fund 1,563
Debt Service Funds:

Pension Obligations General Fund 2,973,407
Capital Project Funds:

Regional Freeway Security Fee General Fund 159,107
Internal Service Funds:
115 Pension Reserve Fund General Fund 972
Total 4,229,453$

76 256
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 6 – INTERFUND TRANSACTIONS (Continued)

B. Interfund Advances

At June 30, 2023, the following funds had advances that were not expected to be repaid within the next year:

FROM FUND TO FUND AMOUNT
Successor Agency Housing
Special Revenue Fund General Fund 1,399,599$
Southwest Pittsburg GHAD II
Special Revenue Fund General Fund 359,129
Inclusionary Housing Fund
Capital Projects Fund Successo r Agency Housing Special Revenue Fund 380,000 Regional Traffic Mitigation
Capital Projects Fund Railroad Avenue Specific Area Plan Special Revenue Fund 3,172,428

ENTERPRISE FUNDS
Sewer Utility Fund Building Maintenance Internal Service Fund 79,908 Pittsburg Power Fund Golf Course Special Revenue Fund 375,000 TOTAL ADVANCES 5,766,064$

During fiscal year 2019-2020, the Successor Ag ency Housing Special Revenue Fund advanced $1,593,421 to the General Fund for the purchase of property located on Railroad Avenue (APN 088-171- 035). The advance will accrue LAIF interest and will continue to exist until repaid in full. The balance as of June 30, 2023 was $1,399,599.

During fiscal year 2020-2021, the Southwest Pittsburg GHAD II Fund advanced $300,000 to the General Fund for the purchase of software and related expenses. The advance will accrue LAIF interest rate and will continue to exist until repaid in full. This ad vance was later amended to increase the loan amount from $300,000 to $350,000 23-082 to fund implementation of the software. Th e balance as of June 30, 2023 was $359,129.

During fiscal year 2020-2021, the Inclusionary Housin g Capital Projects Fund ad vanced $380,000 to the Successor Agency Housing Special Revenue Fund for a loan to purchase a property located on 901 Los Medanos Street. The advance will accrue interest at a rate of three percent on the unpaid principal outstanding from time to time commencing on the da te of initial disbursement of loan proceeds. The balance as of June 30, 2023 was $380,000.

77 257
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 6 – INTERFUND TRANSACTIONS (Continued)

During fiscal year 2014-2015, the Regional Traffic Mitigation Capital Projects Fund advanced $3,300,000 to the Railroad Avenue Specific Area Plan Special Revenue Fund to help fund the construction of the eBART Pittsburg Center Station Project. The advance is to be repaid to the Regional Traffic Mitigation Fund by June 30, 2044 and bears simple interest at the average Stat e Local Agency Investment Fund (LAIF) interest rate. The repayment began in fiscal year 2015 with annual payments in amount up to the accrued interest due, and the balance as of June 30, 2023 was $3,172,428.

During fiscal year 2016-2017, the Sewer Utility En terprise Fund advanced $252,960 to the Building Maintenance Internal Service Fund to assist in financing the City Hall HVAC Chiller Replacement project. The advance is to be repaid within ten year s and bears interest at 1.5% per year. The balance as of June 30, 2023 was $79,908.

During fiscal year 2002-2003, the Pittsburg Power Enterprise Fund advanced $375,000 to the Golf Course Special Revenue Fund for the replacement and improvements of golf carts. The advance was to be repaid within ten years provided the money is available in the Golf Fund. City Council approved the refinancing of the Pittsburg Power loan in fisc al year 2022-2023, outlining a new 35-year term at

2.5% to save the City $91,797 that would have otherwise been paid in interest during the original 10- year term. The balance as of June 30, 2023 was $375,000.

C. Interfund Transfers

At June 30, 2023, the City had the following inter-fund transfers:

A. Transfers to the General Fund were to fund General Fund operations and administrative services for which the other funds received services.

B. Transfers to Housing to cover operating expenses for the rental properties.

C. Transfers to cover Citywide Lighting & Landsc aping, Gas Tax (RMRA) and road maintenance/ repairs and improvements.

D. Transfers to the Water Utility Enterprise Fund to subsidize senior discount.

E. Transfer to Water Utility Enterprise Fund to allocate Utility Billing administrative time.

Employees are split between Water and Sewer Funds. Also, for capital improvements.

F. Transfers to cover Future Build program.

G. Transfer to reimburse PPC fund balance for a Project title "Reviving the Heart of Pittsburg Pride".

H. Transfer to help with Marina dredging projec t, various improvements and modernize Marina operations.

I. Transfer to help with capital improvements for the Water Front Operations.

J. Transfers to fund unfunded OPEB liability.

78 258
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 6 – INTERFUND TRANSACTIONS (Continued)

FROM FUND TO FUND AMOUNT
Miscellaneous Grants Special Revenue Fund 610,408$
Non-Major Governmental Funds 4,177,380
Water Utility Enterprise Fund 285,000
Sewer Utility Enterprise Fund 60,000
Pittsburg Power Enterprise Fund 860,000
General Fund 5,992,788 A
Successor Agency Housing Special Revenue Fund Housin g Authority (Section 8) Special Revenue Fund 55,000 B General Fund 11,811,299
Non-Major Governmental Funds 1,603,000
Water Utility Enterprise Fund 295,000
Sewer Utility Enterprise Fund 295,000
Non-Major Governmental Funds 14,004,299 C
Sub-total: Total Governmental Funds 20,052,087
General Fund 67,600 D
Sewer Utility Enterprise Fund 3,746,451 E
Water Utility Enterprise Fund 3,814,051
General Fund 58,450 F
Non-Major Governmental Funds 413,137 G
Pittsburg Power Enterprise Fund 471,587
Non-Major Governmental Funds Marina Enterprise Fund 379,751 H Non-Major Governmental Funds Water Front Operations Fund 160,000 I General Fund 171,685 J
Housing Authority (Section 8) Special Revenue Fund 24,907 J Successor Agency Housing Special Revenue Fund 749 J
Non-Major Governmental Funds 75,692 J
Water Utility Enterprise Fund 150,525 J
Sewer Utility Enterprise Fund 31,461 J
Marina Enterprise Fund 22,659 J
Pittsburg Power Enterprise Fund 45,318 J
Water Front Operations Enterprise Fund 17,791 J
Internal Service Funds 29,213 J
Internal Service Funds 570,000
Sub-total: Total Proprietary Funds 5,395,389
TOTAL TRANSFERS 25,447,476$
79 259
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 7 – CAPITAL ASSETS

A. Government-Wide Financial Statements

At June 30, 2023, the City’s capital assets consisted of the following:

Governmental
Activities
Non-depreciable assets:

Land 35,754,568$ 2,721,245$ 38,475,813$ Construction in progress 17,450,369 19,652,827 37,103,196 Total non-depreciable assets 53,204,937 22,374,072 75,579,009 Depreciable assets:

Buildings and improvements 110,605,522 49,329,020 159,934,542 Machinery and equipment 20,330,346 13,005,026 33,335,372 Infrastructure 305,393,151 155,563,279 460,956,430 Vehicles 1,290,142 1,091,784 2,381,926 Intangible Right-to-Use Buildings 1,438,377 - 1,438,377 Intangible Right-to-Use Subscription 241,418 - 241,418 Total depreciable assets 439,298,956 218,989,109 658,288,065 Less accumulated depreciation and amortization:

Buildings and improvements (48,641,005) (13,432,788) (62,073,793) Machinery and equipment (17,771,690) (7,737,064) (25,508,754) Infrastructure (193,120,628) (61,034,066) (254,154,694) Vehicles (77,038) (36,312) (113,350) Intangible Right-to-Use Buildings (177,130) - (177,130) Intangible Right-to-Use Subscription (54,937) - (54,937) Total accumulated depreciation (259,842,428) (82,240,230) (342,082,658) Total net depreciable assets 179,456,528 136,748,879 316,205,407 Total capital assets 232,661,465$ 159,122,951$ 391,784,416$ Total
Business-Type
Activities

80 260
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 7 – CAPITAL ASSETS (Continued)
The following is a summary of capital assets for governmental activities:

Balance at
June 30, 2022 Adjustments/ Balance at
(as restated) Additions Deletions Reclassifications Transfers June 30, 2023 Non-depreciable assets:

Land 35,754,568$ -$ -$ -$ -$ 35,754,568$
Construction in Progress 19,772,320 3,668,769 - - (5,990,720) 17,450,369 55,526,888 3,668,769 - - (5,990,720) 53,204,937 Depreciable assets:

Buildings and Improvements 109,298,712 149,495 - - 1,157,315 110,605,522 Machinery and Equipment 20,436,025 479,488 (585,167) - - 20,330,346 Infrastructure 300,752,306 4,945 (197,505) - 4,833,405 305,393,151 Vehicles - 1,290,142 - - - 1,290,142 Intangible Right-to-Use Buildings 1,438,377 - - - - 1,438,377 Intangible Right-to-Use Subscription 241,418 - - - - 241,418 432,166,838 1,924,070 (782,672) - 5,990,720 439,298,956 Less accumulated depreciation
and amortization:

Buildings and Improvements (52,454,967) (3,028,119) - 6,842,081 - (48,641,005) Machinery and Equipment (16,986,835) (1,362,238) 577,383 - - (17,771,690) Infrastructure (180,349,124) (5,925,232) - (6,846,272) - (193,120,628) Vehicles - (77,038) - - - (77,038)
Intangible Right-to-Use Buildings (177,130) - - - - (177,130) Intangible Right-to-Use Subscription - (54,937) - - - (54,937) (249,968,056) (10,447,564) 577,383 (4,191) - (259,842,428) Total depreciable assets, net 182,198,782 (8,523,494) (205,289) (4,191) 5,990,720 179,456,528 Total capital assets, net 237,725,670$ (4,854,725)$ (205,289)$ (4,191)$ -$ 232,661,465$ Total
Total
Total
During fiscal year 2023, the City implemented the provisions of GASB Statement No. 96 Subscription Based Information Technology Arrangements,
which required the restatement of capital assets, specifically to incorporate an intangible right-to-use subscrip tion asset. As a result, an initial right-to-use subscription asset was recorded in the amount of $241,418 as of July 1, 2022 for governmental activities.

The subscription During fiscal year 2023, the City implemented the provisions of GASB Statement No. 96, Subscription- Based Information Technology Arrangements , which required the restatement of capital assets, specifically to incorporate an intangible right-to -use subscription asset. As a result, an initial right-to-use subscription asset is offset with a subscription liability as discussed in Note 4. 81 261
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 7 – CAPITAL ASSETS (Continued)

Governmental activities depreciation and amortization expenses for capital assets for the year ended June 30, 2023 are as follows:

General Government 1,099,649$
City Manager and City Clerk 37,733
City Attorney 11,177
Human Resources 3,894
Finance and Services 78,527
Community Development and Services 147,180
Public Safety 205,973
Public Works 8,028,901
Internal Service Funds 834,530
Total depreciation and amortization expense 10,447,564$

The following is a summary of capital assets for business-type activities:

Balance at
July 1, 2022 Additions Deletions Reclassifications Transfers Balance at
June 30, 2023
Non-depreciable assets:

Land 2,721,245$ -$ -$ -$ -$ 2,721,245$ Construction in Progress 27,090,314 3,002,960 - - (10,440,447) 19,652,827 Total 29,811,559 3,002,960 - - (10,440,447) 22,374,072 Depreciable assets:

Buildings and improvements 48,838,534 - - 490,486 - 49,329,020 Machinery and equipment 12,944,539 60,487 - - - 13,005,026 Infrastructure 145,592,106 21,212 - (490,486) 10,440,447 155,563,279 Vehicles - 1,091,784 - - - 1,091,784 Total 207,375,179 1,173,483 - - 10 ,440,447 218,989,109 Less accumulated depreciation:

Buildings and improvements (11,869,940) (969,195) - (593,653) - (13,432,788) Machinery and equipment (7,223,695) (513,369) - - - (7,737,064) Infrastructure (59,397,292) (2,230,427) - 593,653 - (61,034,066) Vehicles - (36,312) - - - (36,312) Total (78,490,927) (3,749,303) - - - (82,240,230) Total depreciable assets, net 128,884,252 (2,575,820) - - 10,440,447 136,748,879 Total capital assets, net 158,695,811$ 427,140$ -$ -$ -$ 159,122,951$

Business-type activities depreciation expenses for ca pital assets for the year ended June 30, 2023 are as follows:

Water Utility 1,856,500$
Sewer Utility 874,550
Marina 466,921
Pittsburg Power 545,917
Water Front Operations 5,415
Total 3,749,303$

82 262
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 7 – CAPITAL ASSETS (Continued)

B. Fund Financial Statements

The Governmental Fund Financial Statements do not present General Government Capital Assets.

Consequently, capital assets are shown as a reconcilin g item in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position.

The capital assets of the enterprise funds in the Proprietary Fund Fina ncial Statements are the same as those shown in the business-type activities of the Government-Wide Financial Statements. Internal Service Funds capital assets are combined with governmental activities.

NOTE 8 – LONG TERM DEBT

Governmental Activities

The following is a summary of long-term debt transact ions of the governmental activities for the year ended June 30, 2023:

Description
Original
Issue
Amount
Beginning
Balance
July 1, 2022 Additions Retirements
Ending
Balance
June 30, 2023
Amounts Due
Within One Year
Amounts Due in
More Than One
Year
Governmental Activities - Bonds
2006 Pension Obligation Bonds 39,566,056$ 32,153,097$ 1,615,355$ 2,555,000$ 31,213,452$ 2,650,000$ 28,563,452$ Governmental Activities - Direct Borrowings
PG&E Energy Efficient Loan 213,294 124,427 - 21,329 103,098 21,329 81,769 Lease - Fleet Maintenance 549,017 175,684 - 116,018 59,666 59,666 - Lease - Fleet Maintenance Equipment 261,368 110,483 - 54,202 56,281 56,281 - Lease - Vehicles and Equipment 848,058 443,447 - 172,517 270,930 178,960 91,970 Total Governmental Activities - Direct Borrowings 854,041 - 364,066 489,975 316,236 173,739 Total Governmental Activities 33,007,138$ 1,615,355$ 2,919,066$ 31,703,427$ 2,966,236$ 28,737,191$

83 263
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 8 – LONG TERM DEBT (Continued)

Series 2006 Pension Obligation Bonds

On June 15, 2006, the City issued $39,566,056 of Series 2006 Taxable Pension Obligations Bonds bearing interest at 5.850-6.115% to prepay the City’s unfunded accrued actuar ial liability of the Miscellaneous and Safety plans through the California Public Employees’ Retirement System. The City also prepaid the unfunded liability owed to Contra Costa Coun ty Employees Retirement Association (CCCERA) which amounted to $12,700,000 as of June 30, 2006. The Bonds are issued as current interest bonds and capital interest bonds where the current interest is payable annually on July 1, and the capital appreciation bonds will accrete interest from the date of issuance and will be payable only upon maturity or redemption. The bonds are payable from any form of taxation. The bond covenant contains events of default that require the revenue of the City to be applied by the Trustee as specified in the terms of the agreement if any of the following condit ions occur: default on de bt service payments; the failure of the City to observe or perform the cond itions, covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or co mpetent jurisdiction shall assume custody or control of the City. The covenant also contains a subjective acceleration clause that allows the trustees or holders, who hold the majority of the aggregate principal amount of the notes, to accelerate payment of the entire principal amount outstanding and interest accrued to become immediately due if they determine that a material adverse change occurs. Annual principal and interest payments on the bonds are expected to require approximately 5.0% of city-w ide revenues. At June 30, 2023, the total principal and interest remaining to be paid on the bonds was $52,124,968. For the cu rrent year, principal and interest paid were $6,409,389 and City-wide governmental revenues were $117,284,491.

The Bonds unaccreted discount and the current year accretion totaled $9, 211,548 and $1,615,355, respectively, at June 30, 2023. The Bonds do not pay periodic interest. Interest on the Bonds will accrete in value at the rates between 5.85% and 6.12%. Repa yment of the accreted principal commenced July 1, 2015. Final repayment will be July 1, 2036.

The annual debt service requirements to mature th e Series 2006 Pension Obligation Bonds outstanding at June 30, 2023, were as follows:

Year Ending
June 30, Principal (1) Interest Total
2024 2,650,000$ 1,261,572$ $ 3,911,572 2025 2,750,000 1,220,061 3,970,061 2026 2,855,000 1,174,709 4,029,709 2027 2,655,000 1,134,528 3,789,528 2028 2,745,000 1,099,960 3,844,960 2029-2033 15,255,000 4,754,825 20,009,825 2034-2038 11,515,000 1,054,313 12,569,313 Total 40,425,000$ 11,699,968$ $ 52,124,968 (1) Includes unaccreted discount in the total amount
of $9,211,548.

84 264
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 8 – LONG TERM DEBT (Continued)

Leases for Governmental Activities (Direct Borrowings)

On April 5, 2018, the City obtained a ten-year, interest free (0%), no fee loan from Pacific Gas and Electric (PG&E) in the amount of $213,294, to partially fund the cost of replacing the City Hall Chiller with an energy-efficient system. The loan is repayable from general funds. Principal payments are paid monthly with on-bill PG&E payments, commencing Ma y 2018. As of June 30 , 2023, the outstanding principal balance on the loan was $103,098.

The annual debt service requirements to mature the lease outstanding at June 30, 2023, are as follows:

Year Ending
June 30, Principal Total
2023 21,329$ 21,329$
2024 21,329 21,329
2025 21,329 21,329
2026 21,329 21,329
2027 17,782 17,782
Total 103,098$ 103,098$

On November 15, 2018, the City entered into a five -year lease agreement for a total principal cost of $549,017 with Holman Capital Corporation to fina nce the purchase of three vehicles and a street sweeper for the Fleet Maintenance Department. The in terest rate on the lease is 3.80% and principal and interest payments are due semi-annually, comme ncing May 15, 2019, and maturing on November 15, 2023. As of June 30, 2023, the outstanding principal balance of the lease was $59,666.

The annual debt service requirements to mature the lease outstanding at June 30, 2023, are as follows:

Year Ending
June 30, Principal Interest Total
2024 59,666$ 1,135$ 60,801$ Total 59,666$ 1,135$ 60,801$

On April 24, 2019, the City entered into a five-year lease agreement for a total principal cost of $261,368 with Holman Capital Corporation for various equipmen t. The interest rate on the lease is 3.80% and principal and interest payments are due semi-annu ally, commencing October 24, 2019, maturing on April 24, 2024. As of June 30, 2023, the outstanding principal balance of the lease was $56,281.

85 265
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 8 – LONG TERM DEBT (Continued)

The annual debt service requirements to mature the lease outstanding at June 30, 2023, are as follows:

Year Ending
June 30, Principal Interest Total
2024 56,281$ 1,609$ 57,890$ Total 56,281$ 1,609$ 57,890$

On October 21, 2019, the City ente red into a five-year lease agreemen t for a total principal cost of $848,058 with Holman Capital Corporation for various vehicles and equipment. The interest rate on the lease is 3.70% and principal and interest payments are due semi-annually, commencing April 21, 2020, maturing on October 21, 2024. As of June 30, 2023, the outstanding principal balance of the lease was $270,930.

The annual debt service requirements to mature the lease outstanding at June 30, 2023, are as follows:

Year Ending
June 30, Principal Interest Total
2024 178,960$ 8,384$ 187,344$ 2025 91,970 1,701 93,671
Total 270,930$ 10,085$ 281,015$

Business-Type Activities

The following is a summary of long-term debt transactions of the business-type activities for the year ended June 30, 2023:

Description
Original Issue
Amount
Beginning
Balance
July 1, 2022 Retirements
Ending Balance
June 30, 2023
Amounts Due
Within One
Year
Amounts Due
in More Than
One Year
2016 Water Revenue
Refunding Bonds 30,850,000$ 23,120,000$ 1,500,000$ 21,620,000$ 1,560,000$ 20,060,000$ 2014 California Infrastructure and
Economic Development Direct Bank Loan 11,387,398 9,673,649 280,379 9,393,270 290,220 9,103,050 2022A Water Revenue Bonds 43,870,000 43,870,000 - 43,870,000 - 43,870,000 Unamortized premium on 2022A Bonds 2,394,337 72,811 2,321,526 - 2,321,526 79,057,986$ 1,853,190$ 77,204,796$ 1,850,220$ 75,354,576$

86 266
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 8 – LONG TERM DEBT (Continued)

2016 Water Revenue Refunding Bonds

On November 15, 2016, the City issued 2016A Wate r Revenue Refunding Bonds in the amount of $30,070,000 Series 2016A Tax Exempt and $780,000 Series 2016-Taxable Bonds for a combined total of $30,850,000. The proceeds from the Bonds were used to retire the 2008 Wate r Refunding Bond and to pay a Swap Termination Fee. The Tax-Exempt Bond s bear interest ranging from 2.0%-5.0% and the T a x a b l e b o n d s b e a r i n t e r e s t o f 0 . 8 7 % . I n t e r e s t o n T a x - E x e m p t b o n d s i s p a y a b l e s e m i - a n n u a l l y e a c h February 1st and August 1st. The Tax-Exempt bonds will mature on August 1, 2034.

The bond covenant contains events of default that re quire the revenue of the City to be applied by the Trustee as specified in the terms of the agreement if any of the following conditions occur: default on debt service payments; the failure of the City to observe or perform the co nditions, covenants, or agreement terms of the debt; bankruptcy filing by th e City; or if any court or competent jurisdiction shall assume custody or control of the City. The covenant also contains a subjective acceleration clause that allows the trustees or holders, who hold the majority of the aggregate principal amount of the notes, to accelerate payment of the entire principal amount outstanding and interest accrued to become immediately due if they determine that a material adverse change occurs.

The annual debt service requirements to mature the loan outstanding at June 30, 2023 were as follows:

Year Ending
June 30, Principal Interest Total
2024 1,560,000$ 899,250$ 2,459,250$ 2025 1,620,000 819,750 2,439,750
2026 1,680,000 737,250 2,417,250
2027 1,745,000 651,625 2,396,625
2028 1,830,000 562,250 2,392,250
2029-2033 8,020,000 1,372,275 9,392,275 2034-2035 5,165,000 200,425 5,365,425 Total 21,620,000$ 5,242,825$ 26,862,825$

87 267
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 8 – LONG TERM DEBT (Continued)

2014 California Infrastructure and Economic Development Bank Installment Sale Agreement (Direct Loan)

On November 17, 2014, the City of Pittsburg entere d into an installment sale agreement (agreement) with the California Infrastructure and Economic Development Bank for financing the costs of modifications to the Pittsburg Water Treatment Plant and installation of approximately 9,100 feet of transmission line and other related costs. The principal amount provided under the agreement is $11,387,398 payable over a term of 30 years. Prin cipal payments are made annually on August 1, commencing August 1, 2015 through August 1, 2044. The installment sa les payments bear an interest rate of 3.51% per annum with inte r e s t p a y m e n t s m a d e s e m i - a n n u a l l y o n F e b r u a r y 1 a n d A u g u s t 1 , commencing February 1, 2015 through August 1, 2044. The installments are payable from Water Charge Revenues. During fiscal year ended June 30, 2023, principal and interest paid was $615,003 and water charge revenues were $24,663,999.

The agreement contains events of default that require the revenue of the City to be applied by the Bank as specified in the terms of the agreement if any of the following conditions occur: default on debt service payments; the failure of the City to observe or perform the conditions, covenants, or agreement terms of the loan; bankruptcy filing by the City; or if any court or competent jurisdiction shall assume custody or control of the City. The covenant also cont ains a subjective acceleration clause that allows the Bank to accelerate payment of the entire prin cipal amount outstanding and interest accrued to become immediately due if they determine that a material adverse change occurs.

The annual debt service requirements to mature th e outstanding balance at June 30, 2023, were as follows:

Year Ending
June 30, Principal Interest Annual Fee
2024 290,220$ 324,610$ 28,180$ 2025 300,407 314,245 27,309 2026 310,951 303,516 26,408 2027 321,866 292,410 25,475 2028 333,163 280,914 24,509 2029-2033 1,849,654 1,217,506 106,835 2034-2038 2,197,870 863,176 77,074 2039-2043 2,611,641 442,143 41,706 2044-2045 1,177,498 41,687 5,329 Total 9,393,270$ 4,080,207$ 362,825$

88 268
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 8 – LONG TERM DEBT (Continued)
2022A Water Revenue Bonds
On May 1, 2022, the City issued Series 2022A Water Revenue Bonds in the amount of $43,870,000. The p r o c e e d s f r o m t h e B o n d s w e r e u s e d t o f i n a n c e c e r tain capital improvements to the City’s municipal water system and to pay costs incurred in connection with the issuance of the Bonds. The Tax-Exempt Bonds bear interest in the amount of 5%. Interest is payable semi-annually each February 1 and August 1, commencing August 1, 2022. Prin cipal payments are payable on Au gust 1, commencing August 1, 2034. The installments are payable solely from Net Water Revenues.

The City is subject to certain
revenue bond covenants, the most restrictive which re quires annual net revenues be equal to at least 125% of the current annual debt service requirements of the Bonds. For the current year, the City was not required to make principal and interest payments.

The annual debt service requirements to mature th e outstanding balance at June 30, 2023, were as follows:

Year Ending
June 30, Principal Interest Total
2024 -$ 2,081,062$ 2,081,062$
2025 - 2,081,062 2,081,062
2026 - 2,081,062 2,081,062
2027 - 2,081,062 2,081,062
2028 - 2,081,062 2,081,062
2029-2033 - 10,405,310 10,405,310
2034-2038 4,745,000 10,004,185 14,749,185
2039-2043 8,645,000 8,182,685 16,827,685
2044-2048 12,850,000 5,852,693 18,702,693 2049-2052 17,630,000 2,291,500 19,921,500 Total 43,870,000$ 47,141,683$ 91,011,683$
Debt Management Policy
The City has adopted a comprehensive debt mana gement policy that guides the issuance and management of City debt. The policy includes establ ishing the legal debt limi ts (per State law this equates to 15% of assessed value of all real and personal property of the City), identifying the types of debt that can be issued and purpos es for which debt proceeds can be us ed, establishing financial limits
affecting debt issuance, and identifying guidelines regarding the structuring of debt. At the end of fiscal year 2023, the City had total debt outstand ing of $109 million, which complies with, and is significantly under, the current policy limits.
89 269
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 9 – SPECIAL ASSESSMENT DISTRICT DEBT WITHOUT CITY COMMITMENT

The City has sponsored special assessment debt issu es under which it has no legal or moral liability with respect to repayment of the debt and theref ore does not include this debt in the City’s Governmental Activities. The activity for those issues for the year ended June 30, 2023, was as follows:

Balance Balance
June 30, 2022 Additions Retirements June 30, 2023
2001-03 Century Plaza A.D. Bonds 2,485,000$ -$ 170,000$ 2,315,000$ 2011 Pittsburg IFA Bonds 7,095,000 - 7,095,000 - 2015 Vista Del Mar A.D. Refunding Bonds 7,485,000 - 405,000 7,080,000 2022 Limited Obligation Refunding Improvements Bonds - 3,681,484 - 3,681,484 Total 17,065,000$ 3,681,484$ 7,670,000$ 13,076,484$

2001-03 Century Plaza Assessment District Bonds – The Century Plaza Bonds bear interest rates between 2.40% and 5.88% with interest payments made semi-annually on March 2 and September 2.

The Century Plaza Bonds are to be paid from a nnual assessment installments. Proceeds from the Century Plaza Bonds were used to finance the construction and acquisition of certain public improvements within the City’s Assessment District No. 2001-03. The outstanding balance at June 30, 2023 amounted to $2,315,000.

2011 Pittsburg Infrastructure Financing Authority Bonds – In August 2011, the City refinanced the 1998 Marina Walk Assessment District Bonds, 19 98 Pittsburg Infrastructure Financing Authority Bonds, 2001-01 San Marco Assessment District Bonds and 2001-02 Oak Hills South Assessment District Bonds. These Districts were conso lidated into one Reassessment Distri ct No. 2011-1. The true interest cost of the refunded bonds is 4.5%. On July 1, 202 2, the City refunded the bonds with the issuance of the 2022 Limited Obligation Refunding Improvement Bonds.

2015 Vista Del Mar Assessment Dist rict Special Tax Refunding Bonds – In June 2015, the City refunded and defeased the 2005 Vista Del Mar Asse ssment District Bonds. The 2015 Vista Del Mar Bonds bear interest rates between 2.0% and 5.0% with interest payments made semi-annually on March 1 and September 1. The Vista Del Mar Bonds are to be paid from special taxes which are levied by the City on taxable real property within the boundaries of the District. The outstanding balance at June 30, 2023 amounted to $7,080,000.

2022 Limited Obligation Refunding Improvement Bonds – In July 2022, the City refinanced the 2011 Pittsburg Infrastructure Financing Authority Bonds. The true interest cost of the refunded bonds is

3.39%. For the current fiscal year, the City was not required to make any principal or interest payments. The outstanding balance at June 30, 2023 amounted to $3,681,484.

90 270
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 10 – NET POSITION AND FUND BALANCES

Net Position is measured on the full accrual basis while Fund Balance is measured on the modified accrual basis.

A. Net Position

Net Position is the excess of all the City’s assets and deferred outflows of resources over all its liabilities and deferred inflows of resources, regardless of fund . Net Position is divided into three captions.

These captions apply only to Net Position, which is determined only at the Government-wide level, and are described below:

In the Government-Wide Financial Statements, net positions are classified in the following categories.

Net Investment in Capital Assets, describes the portion of Net Position which is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets.

Restricted describes the portion of Net Position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regula tions, laws, or other restrictions which the City cannot unilaterally alter. These principally include developer fees received fo r use on capital projects, debt service requirements, and redevelopment funds restricted to low and moderate income purposes.

Unrestricted describes the portion of Net Position which is not restricted to use.

B. Fund Balances

Governmental fund balances represent the net current assets of each fund. Net current assets generally represent a fund’s cash and receivables, less its liabilities.

The City’s fund balances are classified in accord ance with Governmental Accounting Standards Board Statement Number 54 (GASB 54), Fund Balance Reporting and Governmental Fund Type Definitions, which requires the City to classify its fund balances based on spending constraints imposed on the use of resources. For programs with multiple funding so urces, the City prioritizes and expends funds in the following order: Restricted, Committed, Assigned, an d Unassigned. Each category in the following hierarchy is ranked according to the degree of spending constraint:

Nonspendables represents balances set aside to indicate items do not represent available, spendable resources even though they are a component of assets. Fund balances required to be maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such as prepaids, notes receivable, and land held for redevelopment are included. However, if proceeds realized from the sale or collection of nonspendable assets are restricted, committed or assigned, then Nonspendable amounts are required to be presented as a component of the applicable category.

91 271
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 10 – NET POSITION AND FUND BALANCES (Continued)
Restricted fund balances have external restrictions impo sed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires the resources to be used only for a specific purpose.

Committed fund balances have constraints imposed by fo rmal action of the City Council through City Resolution, which may be altered only by formal action (Resolution) of the City Council.

Nonspendable amounts subject to council commitments are included along with spendable resources.

Assigned fund balances are amounts constrained by the City ’s intent to be used for a specific purpose, but are neither restricted nor committed. Intent is expressed through City Resolution, Ordinance, or through language in the adopted budget, by the City Council or its designee (City Manager for items from $75,000 to $150,000 and Senior Executive Team members for items below $75,000) and may be changed at the discretion of the City Council or its designee.

Unassigned fund balance represents residual amounts th at have not been restricted, committed, or assigned. This includes the residual general fund ba lance and residual fund deficits, if any, of other governmental funds.

To comply with GASB 54 requirements, the Bu dget Stabilization, Economic Development and California Theatre activities are consolidated with in the General Fund. The following table provides details of the General Fund’s fund balance at June 30, 2023:

Fund/Activity Nonspendable Assigned Unassigned Total
General 353,082$ 105,857$ 23,165,638$ 23,624,577$ Budget stabilization - - 2,445,285 2,445,285 Economic development - 1,501,230 - 1,501,230
Total 353,082$ 1,607,087$ 25,610,923$ 27,571,092$ Budget Stabilization Arrangement
City Council adopted a Resolution establishing a Budget Stabilization Fund for the City’s General Fund and requires the City to deposit year-end surpluses in to it. The funds can only be used to help balance future budgets. As of June 30, 2023, the Budget St abilization, which is reported within the unassigned fund balance of the General Fund, had a balance of $2,445,285. 92 272
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 10 – NET POSITION AND FUND BALANCES (Continued)

Detailed classifications of the City’s Fund Balances, as of June 30, 2023, are listed below:

Housing Successor Other
General Authority Agency Miscellaneous Governmental
Fund Balance Classifications Fund Section 8 Housing Grants Funds Total Nonspendables:

Items not in spendable form:

Prepaid Items 6,109$ -$ -$ -$ 722,859$ 728,968$ Loans and Notes Receivable 285,467 - - - - 285,467 Inventory 61,506 1,374 - 57,167 210,151 330,198 Advances - - - - 3,552,428 3,552,428 Total Nonspendable Fund Balances 353,082 1,374 - 57,167 4,485,438 4,897,061 Restricted for:

Special revenue projects:

Street and Highway Code Maintenance - - - - 1,690,874 1,690,874 Public Improvements and Transit Projects - - - - 24,177 24,177 Street Lighting and Landscape Maintenance - - - - 767,234 767,234 Solid Waste - - - - 1,056,868 1,056,868 Environmental Compliance Projects - - - - 9,302,189 9,302,189 Public Safety - - - - 240,502 240,502 Fire - - - - 70,662 70,662 Marina Dredging - - - - 239,708 239,708 Park Dedication - - - - 2,220,066 2,220,066 Community Arts and Literacy - - - - 456,479 456,479 Debt Service - - - - 2,664,065 2,664,065 Low Income Housing - 211,977 6,809,763 - 538,395 7,560,135 Capital Projects - - - 10,924,106 14,269,129 25,193,235 Total Restricted Fund Balances - 211,977 6,809,763 10,924,106 33,540,348 51,486,194 Committed to:

Capital Improvement - - - - 11,734,042 11,734,042 Field Replacement - - - - 749,692 749,692 Public Education - - - - 631,106 631,106 Total Committed Fund Balances - - - - 13,114,840 13,114,840 Assigned to:

Special Revenue Projects - - - - 62,236 62,236 Police Buys 1,220 - - - - 1,220 Leisure Service 6,656 - - - - 6,656 Mapping Equipment 62,624 - - - - 62,624 Payroll Imprest Fund Balance 35,357 - - - - 35,357 Economic Development 1,501,230 - - - - 1,501,230 Total Assigned Fund Balances 1,607,087 - - - 62,236 1,669,323 Unassigned:

General fund 23,165,638 - - - - 23,165,638 Stabilization Arrangements 2,445,285 - - - - 2,445,285 Other governmental funds - - - - (4,097,837) (4,097,837) Total Unassigned Fund Balances 25,610,923 - - - (4,097,837) 21,513,086 Total Fund Balances 27,571,092$ 213,351 $ 6,809,763$ 10,981,273$ 47,105,025$ 92,680,504$ Special Revenue

93 273
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 10 – NET POSITION AND FUND BALANCES (Continued)

C. Deficit Fund Balance/Net Position

At June 30, 2023, the following funds had deficit fund balances:

Fund Amount
Special Revenue Funds:

Measure J Tax Fund 524,431$ (a)
Railroad Avenue Specific Area Plan 3,056,638 (b) Golf Course 376,563 (c)
Capital Projects Fund:

Regional Freeway Security Fee 134,366 (d)

(a) The deficit is caused by timing differences and will be reduced by future Contra Costa County Sales tax.
(b) The deficit is caused by the completion of th e eBart project and will be reduced by future assessments revenues.
(c) The Golf Course Fund will be closed in fiscal year 2024 and all assets , liabilities, and fund balance deficiencies will be absorbed by the Economic Development Fund. (d) The deficit is caused by timing differences and will be reduced by future CalTrans funds.

NOTE 11 – RISK MANAGEMENT

A. General Liability Insurance

The City is self-insured for the first $25,000 of each loss and maintains excess liability insurance through Municipal Pooling Authority (MPA). The City is not insured for liability occurrences over $29,500,000 per occurrence.

B. Workers’ Compensation

The City maintains statutory excess workers’ compensation insurance through MPA, and is insured for an individual accident resulting in claims up to statutory limits. The City is not self-insured for any initial portion of a claim but is self-insured for claims exceeding statutory limits.

C. Estimated Reserves for Claims

Municipalities are required to record their liabili ty for uninsured claims an d to reflect the current portion of this liability as expenditure in their fina ncial statements. As discussed below, the City has coverage for such claims, but it has retained the risk for the deductible or uninsured portion, of these claims.

94 274
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 11 – RISK MANAGEMENT (Continued)

The City reports all claims as a current liability base d on historical results. The City’s liability for uninsured claims, based on claims history, was computed as follows and is recorded in the Insurance Internal Service Fund:

For the Years
Ended
June 30,
Claims
Payable at
July 1
Fiscal Year
Claims and
Changes in
Estimates
Claims
Payments
Claims
Payable at
June 30
2014 $ 128,885 88,503 $ (22,323) $ 195,065 2015 195,065 202,195 (148,208) 249,052 2016 249,052 90,846 (189,401) 150,497 2017 150,497 506,110 (399,353) 257,254 2018 257,254 (65,124) (64,612) 127,518 2019 127,518 115,612 (168,608) 74,522 2020 74,522 137,571 (141,895) 70,198 2021 70,198 472,501 (317,182) 225,517 2022 225,517 (2,217) (131,356) 91,944 2023 91,944 52,936 (35,180) 109,700

D. Purchased Insurance

MPA provides additional coverage for the following risks incurred by the City:

Coverage Type Deductible Coverage Limits
All Risk Fire and Property $ 25,000 $ 1,000,000,000 All Vehicles (Physical Damage) 2,000 250,000
Boiler and Machinery 10,000 200,000,000
Cyber Liability 100,000 2,000,000
Employment Liability 50,000 2,000,000
Flood 100,000 25,000,000
Government Crime Coverage 2,500 5,000,000
Liability 25,000 29,500,000
Police Vehicles (Physical Damage) 3,000 250,000
Public Entity Pollution Liability 250,000 2,000,000
Workers' Compensation 500,000 Statutory Limits

MPA is governed by a Board consisting of representatives from member municipalities.

95 275
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 11 – RISK MANAGEMENT (Continued)

The Board controls the operations of MPA, incl uding selection of mana gement and approval of operating budgets, independent of any influe nce by member municipalities beyond their representation on the Board.

The City’s deposits with MPA are in accordance wi th formulas established by MPA. Actual surpluses or losses are shared according to a formula develo ped from overall loss costs and spread to member entities on a percentage basis after a retrospective rating.

Audited financial statements can be obtained from Municipal Pooling Authority at 1911 San Miguel Drive #200, Walnut Creek, CA 94596-5332.

E. Adequacy of Protection

During the past three fiscal (claims) years none of the above programs of protection have had settlements or judgments that exc eeded pooled or insured coverage. There have been no significant reductions in pooled or insured liability coverage from coverage in the prior year.

NOTE 12 – DEFINED BENEFIT PENSION PLANS

A. Plan Descriptions and Summary of Balances by Plan

The City has two defined benefit pension plans, a Miscellaneous Plan and a Safety Plan. The Miscellaneous Plan is an Agent-Multiple Employer Plan and the Safety Plan is a Cost-Sharing Employer Plan administered by the California Pub lic Employees’ Retirement System (CalPERS).

Benefit provisions under the Plans are established by State statute and City Ordinance.

All qualified permanent and probationary employees ar e eligible to participate in the separate Safety Plan, cost-sharing multiple employer defined benefit pension plan and Miscellaneous (all other) Plan, an agent multiple-employer defined benefit pensio n plan, administered by the California Public Employees’ Retirement System (CalPERS), which ac ts as a common investment and administrative agent for its participating member employers. CalPER S issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

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 have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

96 276
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 12 – DEFINED BENEFIT PENSION PLANS (Continued)

Below is a summary of the deferred outflows of resources, net pension liabilities and deferred inflows of resources by Plan:

Plan
Deferred
Outflows of
Resources
Net Pension
Liability/
Proportionate
Share of Net
Pension Liability
Deferred Inflows
of Resources Pension Expense
CalPERS Plans:

Miscellaneous 10,520,720$ 30,842,213$ 1,240,010$ 4,149,985$ Safety 19,327,195 36,741,589 3,370,747 120,768 CCCERA Closed Plan - 5,657,650 - 711,103 Total 29,847,915$ 73,241,452$ 4,610,757$ 4,981,856$

The long-term portion of the governmental activities Net Pension Liability is liquidated primarily by the General Fund.

Each Plan is discussed in detail below.

B. CalPERS Miscellaneous Plan

Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, wh o must be public employees and beneficiaries.

Benefits are based on years of credited service, eq ual to one year of full time employment. Members with five years of total service are eligible to reti re at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Su rvivor 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 Pension Reform Act of 2013 (PEPRA), Assembly Bill 340, is applicable to employees new to CalPERS and hired after December 31, 2012.

The Plans’ provisions and benefits in effect at June 30, 2023, are summarized as follows:

Miscellaneous
Hire date
Prior to
July 10, 2011
On or after
July 10, 2011
On or after
January 1, 2013
Benefit formula 2.0% @ 55 2.0% @ 60 2.0% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 to 63 50 to 63 52 to 67
Monthly benefits, as a % of eligible compensation 1.426% to 2.418% 1.092% to 2.418% 1.000% to 2.500% Required employee contribution rates 7.00% 7.00% 6.25%
Required employer contribution rates (A) 8.930% 8.930% 8.930% (A) Represents a blended contribution rate.
97 277
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 12 – DEFINED BENEFIT PENSION PLANS (Continued)

Beginning in fiscal year 2016, CalPERS collects employ er contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability (UAL). The dollar am ounts are billed on a monthly basis or the City can elect a lump sum payment option. The City’s required contributions for the un funded liability in the Miscellaneous for the year ended June 30, 2023 were $2,250,774, which were made under the lump sum payment option.

Employees Covered – As of the June 30, 2021 actuarial va luation date, the following employees were covered by the benefit terms for the Plan:

Miscellaneous
Inactive employees or beneficiaries currently receiving benefits 166 Inactive employees entitled to but not yet receiving benefits 196 Active employees 182
Total 544

As of June 30, 2023, the City had 182 active employees in the Miscellaneous Plan.

Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to fina nce any unfunded accrued liability. The City is required to contribute the difference between the ac tuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the City to satisfy contribution requirements that are identified by the Pl an terms as Plan member contribution requirements are classified as Plan member contributions.

Net Pension Liability – The City’s net pension liability for the Miscellaneous Plan is measured as the total pension liability, less the pe nsion plan’s fiduciary net position . The net pension liability of the Plan is measured as of June 30, 2022, using an annual actuarial valu ation as of June 30, 2021 rolled forward to June 30, 2022 using standard update pr ocedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

98 278
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 12 – DEFINED BENEFIT PENSION PLANS (Continued)

Changes in Net Pension Liability – The changes in the Net Pension Liability for the Miscellaneous Plan follows:

Increase (Decrease)
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability
Balance at June 30, 2021 115,562,746$ 99,754,952$ 15,807,794$ Changes in the year:

Service cost 2,555,597 - 2,555,597 Interest on the total pension liability 8,005,677 - 8,005,677 Differences between actual and expected experience (704,978) - (704,978) Changes of Assumptions 2,393,680 - 2,393,680 Contribution - employer - 3,608,526 (3,608,526) Contribution - employee - 1,246,674 (1,246,674) Net investment income - (7,577,502) 7,577,502 Benefit payments, including refunds of employee
contributions (5,009,882) (5,009,882) - Administrative Expenses - (62,141) 62,141 Net changes 7,240,094 (7,794,325) 15,034,419 Balance at June 30, 2022 122,802,840$ 91,960,627$ 30,842,213$

Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability of the City fo r the Plan, calculated using the disc ount rate for the Plan, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1- percentage point lower or 1-percentage point higher than the current rate:

Miscellaneous

1.0% Decrease 5.90%
Net Pension Liability 48,646,439$
Current Discount Rate 6.90%
Net Pension Liability 30,842,213$

1.0% Increase 7.90%
Net Pension Liability 16,253,029$

99 279
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 12 – DEFINED BENEFIT PENSION PLANS (Continued)

Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions – Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.

The first amortized amounts are recognized in pension expense for the year the gain or loss occurs.

The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.

The amortization period differs depending on the source of the gain or loss:

Difference between projected and actual earn ings on investments – 5 year straight-line amortization

All other amounts – Straight-line amortization over the average expected remaining services lives of all members that are provided with bene fits (active, inactive, and retired) as of the beginning of the measurement period

The expected average remaining service lifetime (EAR SL) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired). Note that inactive employees and retirees have remaining service lifetimes equal to 0. Also note that total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

For the year ended June 30, 2023, the City recognized pension expense of $4,149, 985. At June 30, 2023, the City reported deferred outflows of resources an d deferred inflows of resources related to pensions from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 3,757,320$ -$ Changes in assumptions 1,779,916 -
Differences between actual and expected experience 331,106 (1,240,010) Net differences between projected and actual earnings on plan investments 4,652,378 -
Total 10,520,720$ (1,240,010)$

100
280
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 12 – DEFINED BENEFIT PENSION PLANS (Continued)

$3,757,320 reported as deferred outflows of resour ces related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2024. Other amounts reported as deferred outflo ws of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ended Annual
June 30 Amortization
2024 1,157,190$
2025 744,519
2026 732,038
2027 2,889,643
Total 5,523,390$

Actuarial assumptions and information regarding the discount rate are discussed in Note 12D below.

C. CalPERS Safety Plan

The Plans’ provisions and benefits in effect at June 30, 2023, are summarized as follows:

Safety
Hire date
Prior to
July 10, 2011
On or after
July 10, 2011
On or after
January 1, 2013
Benefit formula 3.0% @ 50 3.0% @ 55 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 50 50 to 55 50 to 57
Monthly benefits, as a % of eligible compensation 3.000% 2.400 % to 3.000% 2.000 % to 2.700% Required employee contribution rates 9% 9% 13.00%
Required employer contribution rates 25.480% 20.640% 12.780%

101
281
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 12 – DEFINED BENEFIT PENSION PLANS (Continued)

Beginning in fiscal year 2016, CalPERS collects employ er contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability (UAL). The dollar am ounts are billed on a monthly basis or the City can elect a lump sum payment option. The City’s required contributions for the un funded liability in the Safety for the year ended June 30, 2023 were $2,563,279 which were made under the lump sum payment option.

Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers are determined on an annu al basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to fina nce any unfunded accrued liability. The City is required to contribute the difference between the ac tuarially determined rate and the contribution rate of employees.

For the year ended June 30, 2023, the contributions re cognized as part of pension expense for each Plan were as follows:

Safety
Contributions - employer 4,560,882$

Pension Liabilities, Pension Expenses and Deferre d Outflows/Inflows of Resources Related to Pensions – As of June 30, 2023, the City reported net pension liabilities for its proportionate shares of the net pension liability of the Plan as follows:

Proportionate Share
of Net Pension Liability
Total Safety Net Pension Liability 36,741,589$

The City’s net pension liability for each Plan is me asured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2022, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate sh are of the net pension liability for the Plan as of June 30, 2021 and 2022 was as follows:

Safety
All Tiers
Proportion - June 30, 2021 0.49214%
Proportion - June 30, 2022 0.53469%
Change - Increase (Decrease) 0.04255%

102
282
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 12 – DEFINED BENEFIT PENSION PLANS (Continued)

For the year ended June 30, 2023, the City recognized pension expense of $120,768. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Safety
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 4,560,882$ -$ Differences between actual and expected experience 1,520,601 (398,985) Changes of assumptions 3,704,664 -
Change in proportion 3,739,038 -
Net differences between projected and actual earnings
on plan investments 5,802,010 -
Differences in actual and proportion contributions - (2,971,762) Total 19,327,195$ (3,370,747)$

$4,560,882 reported as deferred outflows of resour ces related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2024. Other amounts reported as deferred outflo ws of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ended Annual
June 30 Amortization
2024 3,482,263$
2025 2,811,388
2026 1,562,616
2027 3,539,299
Total 11,395,566$

103
283
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 12 – DEFINED BENEFIT PENSION PLANS (Continued)

Sensitivity of the Proportionate Share of the Ne t Pension Liability to Changes in the Discount Rate – The following presents the City’s proportionate sh are of the net pension liability for each Plan, calculated using the discount rate for each Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

Total

1.0% Decrease 5.90%
Net Pension Liability 55,828,964$
Current Discount Rate 6.90%
Net Pension Liability 36,741,589$

1.0% Increase 7.90%
Net Pension Liability 21,141,973$

Actuarial assumptions and information regarding the discount rate are discussed in Note 12D below.

D. Information Common to the Miscellaneous and Safety Plans

Actuarial Assumptions – The total pension liabilities in the Ju ne 30, 2021 actuarial valuations were determined using the following actuarial assumptions:

Miscellaneous and Safety (1)
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry-Age Actuarial Cost Method
Amortization Method Level Percent of Payroll
Actuarial Assumptions:

Discount Rate 6.90% (Miscellaneous and Safety)
Inflation 2.30%
Payroll Growth 2.80%
Projected Salary Increase (2)
Investment Rate of Return 6.90% (3)
Mortality Derived using CalPERS Membership Data for all Funds (4) (1) Actuarial assumptions are the same for all benefit tiers (Tier I-Classic, Tier II, and Tier III-PEPRA) (2) Depending on age, service and type of employment
(3) Net of pension plan investment expenses, includes inflation (4) The mortality table used 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.

104
284
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 12 – DEFINED BENEFIT PENSION PLANS (Continued)

Discount Rate – The discount rate used to measure th e total pension liability was 6.90% for the Miscellaneous and Safety Plans. Th e projection of cash flows used to determine the discount rate for each Plan assumed contributions from all plan me mbers in the Public Employees Retirement Fund (PERF) will be made at the current member contri bution rates and that contributions from employers will be made at statutorily required rates, actuaria lly determined. Based on those assumptions, 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 ex pected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

The long-term expected rate of return on pensio n plan investments was determined using a building- block method in which best-estimate ranges of expect ed future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations . Using historical returns of all th e funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach.

The expected rate of return was then adjusted to account for assumed administrative expenses of 10 basis points.

The expected real rates of return by asset class are as follows:

Asset Class1
Assumed
Asset
Allocation Real Return 1,2
Global Equity - Cap-weighted 30% 4.54%
Global Equity - Non-Cap-weighted 12% 3.84%
Private Equity 13% 7.28%
Treasury 5% 0.27%
Mortgage-backed Securities 5% 0.50%
Investment Grade Corporates 10% 1.56%
High Yield 5% 2.27%
Emerging Market debt 5% 2.48%
Private Debt 5% 3.57%
Real Assets 15% 3.21%
Leverage -5% -0.59%
100%
(1) An expected inflation of 2.30% used for this period. (2) Figures are based on the 2021 Asset Liability Management study.

105
285
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 12 – DEFINED BENEFIT PENSION PLANS (Continued)

Changes of Assumptions – Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term mark et return expectations as well as the expected pension fund cash flows. Projected returns for al l asset classes are estimated, combined with risk estimates, and are used to project compound (geometr ic) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projecte d portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.

Reduction of CalPERS Discount Rate – On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-21. Ba sed on the thresholds spec ified in CalPERS Funding Risk Mitigation policy, the excess re turn of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate us ed for funding purposes of 0.20%, from 7.00% to

6.80%. Since CalPERS was in the final stages of the four-year Asset Liability Management (ALM) cycle, the CalPERS Board elected to defer any changes to the asset allocation until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021.

On November 17, 2021, the board ad opted a new strategic asset alloca tion. The new asset allocation along with the new capital market assumptions, economic assumptions and administrative expense assumption support a discount rate of 6.90% (net of investment expense, but without a reduction for administrative expense) for financial reporting purposes. This includes a reduction in the price inflation assumption from 2.50% to 2.30% as recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study also recommended modifications to retirement rates, termination rates, mortality rates and rates of salary increases that were adopted by the CalPERS Board. These new assumptions are reflected in the CalPERS GASB 68 accounting valuation reports for the June 30, 2022 measurement date.

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

E. Contra Costa County Employees’ Retirement Association

Between July 1, 1973 and June 30, 2001, the City provided retirement benefits to its employee groups by contracting with the Contra Costa County Employees' Retirement Association (CCCERA). The City of Pittsburg converted to the CalPERS retirement syst em effective July 1, 2001 and entered into a Termination Withdrawal Agreement with CCCERA th at resulted in the following consequences:

CCCERA retained the obligation to provide future benefits to the City's past retirees and vested members that had left the City's employment prior to July 1, 2001.

106
286
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 12 – DEFINED BENEFIT PENSION PLANS (Continued)

The City would provide CalPERS retirement benefits for its then current and future employees. The Termination Withdrawal Agreement stated that as of June 30, 2001, the City accrued liability and allocated assets was determined at $31,483,218. The Termination Withdrawal Agreement also stated that due to market fluctuation and the uncertainty with other actuarial assumptions, the unfunded accrued liability will be recomputed every three years as CCCERA’s triennial experience studies are completed. In addition, CCCERA is required to an nually submit to the City a cash accounting update of the City of Pittsburg Bookkeeping Asset Account. If the ratio of the balance of the City's Bookkeeping Asset Account to its triennial updated termination unfunded liabi lity is below 95% or ex ceeds 105%, the resulting obligation (if not paid in full) or surplus, will be amortized as a le vel amount over 15 years at a 7.75% annual interest rate.

In January 2006, the City received correspondence from CCCERA indicating that the City had an updated unfunded liability of $11,902,898 that had been re-determined as of December 31, 2003. In June 2006, the City issued Pension Obligation bonds for a total amount of $39,566, 055; upon completion of this transaction the City utilized these bond proceeds to prepay the unfunded liability owed to CCCERA which amounted to $12,700,000 as of June 30, 2006. The balance of bond funds in the amount of $25,977,758 was used to prepay the City's unfunded accrued liability for both the miscellaneous and safety plans to CalPERS.

Almost a year later the City received a letter from CCCERA dated August 23, 2007, providing the December 31, 2006 withdrawal liability update. In summary, the update reported the funding ratio of the present value of benefits ($47.9 million) to allocated market assets ($45.4 million) as 94.8%. The August 23, 2007 letter stated that since this ratio is below 95% this triggers a lump sum payment as of December 31, 2006 for $2,505,433 plus interest at the rate of 7.8% to date of payment or an annual payment of $289,144 to be amortized over 15 years starting with the first payment due on December 31, 2007.

In December of 2010, CCCERA sent a letter to the City regarding the triennial update of the City of Pittsburg's withdrawal liability as of December 31, 2009. The City of Pittsburg's unfunded termination liability of $15,877,533 was calculated by The Segal Company, which would result in an annual payment of $1,826,746 or approximately $1.5 million more than CCCERA’s previous 2006 calculated annual payment of $289,144. In response to CCCERA’s December 2010 calculated triennial update of the City's withdrawal liability, the City worked with CCCERA to amend the City's Termination Agreement to (1) allow the calculation to be prepared on an Actuarial rather than Market value of assets basis, and (2) create an 18-month lag between the valuation date an d the date the contributi on is due which lowered the December 31, 2009 unfunded obligation from $15.9 million to $9.9 million.

In addition, the City borrowed $3.8 million from th e City’s Water Fund balance at the LAIF annual interest rate to repay a portion of the City’s CCCERA unfunded liability and used $1,980,096 of various fund balances to help reduce the City’s CCCERA unfunded liability. Thus, through fiscal year 2013-2014, the City reduced its CCCERA unfunded liability by $5,780,096 leaving $4.1 million to be repaid over 15 years at the 7.75% annual interest rate.

107
287
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 12 – DEFINED BENEFIT PENSION PLANS (Continued)

In December of 2013, CCCERA sent a triennial update of the City of Pittsburg’s pension liability with CCCERA. The liability was increased to $11,312,353 resulting in 14 annual payments of $1,306,656 at an interest rate of 7.25% per annum.

In December of 2015, CCCERA sent a triennial update of the City Of Pittsburg’s pension liability with CCCERA. The liability was decreased to $6,810,830 resulting in 15 annu al payments of $773,523 at an interest rate of 7.0% per annum.

In December of 2019, CCCERA sent a triennial update of the City of Pittsburg’s pension liability with CCCERA. The liability was decreased to $5,816,84 resulting in 15 annual payments of $660,633 with an interest rate of 7.0% per annum.

In December of 2021, CCCERA sent a triennial update of the City of Pittsburg’s pension liability with CCCERA. The liability was increased to $6,368,753 resulting in 15 annual payments of $711,103 with an interest rate of 7.0% per annum.

At June 30, 2023, the Net Pension Liability of this Plan was $5,657,650.

NOTE 13 – OTHER POST-EMPLOYMENT BENEFITS

Plan Description. The City of Pittsburg Retiree Healthcare Plan (Plan) is an agent-multiple employer defined benefit healthcare plan ad ministered by the City. The plan provides healthcare benefits to eligible retirees and their dependents. Benefit provisions are established and may be amended through agreements and memorandums of understanding between the City, its management employees, and unions representing City employees.

The City allows eligible retirees to continue in the City medical plans, currently Kaiser and Health Net.

The City contributes up to a percentage of the single or dual Kaiser Retiree premium based on years of City service. No dental, vision, or life insurance benefits are provided.

On December 24, 2013, the City established an agreement with the California Public Employees’ Retirement System (CalPERS) to set aside funds an d deposit into the California Employer’s Retiree Benefit Trust (CERBT) fund to accumulate, and distribute assets for the exclusive benefit of retirees and their beneficiaries. Plan assets are irrevocable and may not be used for any purpose other than funding post-retirement health care. The CERBT fund is an agent multiple employer plan and in order to ensure that the CERBT fund remains compliant wi th all reporting requirements, the CalPERS is responsible for publishing aggregate GASB 43 comp liance Financial Statements, Notes, and Required Supplementary Information (RSI). The inform ation may be found on CalPERS website at www.calpers.ca.gov.

108
288
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 13 – OTHER POST-EMPLOYMENT BENEFITS (Continued)

Funding Policy. There is no statutory requirement for th e City to prefund its OPEB obligation. The City has currently chosen to prefund OPEB. There are no employee contributions.

For fiscal year 2022-2023, the City reported $2,234 ,444 in contributions to the OPEB Plan, including $1,339,444 in premium payments for retirees, $395,000 for implicit subsidies, $500,000 for contributions to the CERBT fund, and no reimbursements from the CERBT fund for premium payments for retirees.

The City allows retirees to particip ate in the same City medical plans (Kaiser and Health Net) as active employees. For the Kaiser medical plan, retiree pr emium rates are the same as the active employees.

Because this premium rate is a “blended” rate, reti ree premiums payments are lower than what they would pay if the retirees were in a standalone medical plan, resulting in an implied subsidy for retirees under GASB Statement 75.

Employees Covered by Benefit Terms. Membership in the plan consisted of the following at the measurement date of June 30, 2022:

Active employees 97
Inactive employees or beneficiaries currently
receiving benefit payments 164
Inactive employees entitled to but not yet
receiving benefit payments -
Total 261

Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at th e time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan memb ers to that point. The actuarial methods and assumptions used are consistent with the long-term perspective of the calculations.

In the June 30, 2021 actuarial valuation, the entry age normal actuarial cost method was used. The actuarial assumptions included a 6.25% investment rate of return (net of admi nistrative expenses), and a 2.50% general inflation assumption. Premiums were assumed to increase with a Non-Medicare medical cost increase rate of 6.50% for 2023 and grading down to 3.75% for 2076 and thereafter. The Medicare premiums were assumed to increase at a rate of 4.60% and grading down to 3.75% for 2076 and thereafter. The initial UAAL was amortized as a level percentage of projected payrolls over a fixed 27-year period from June 30, 2013 and will be amor tized as a level dollar amortization over a 19 year period from June 30, 2023.

Net OPEB Liability. The City’s net OPEB liability was measured as of June 30, 2022 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2021, based on the actuarial methods and assumptions shown on the previous page.

109
289
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 13 – OTHER POST-EMPLOYMENT BENEFITS (Continued)

The underlying mortality assumptions were based on the CalPERS 2000-2019 Ex perience Study and all other actuarial assumptions used in the June 30, 2021 valuation were based on the results of a June 30, 2017 actuarial experience study for the period July 1, 2018 through June 30, 2019.

The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which expected future real rates of retu rn (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Long-Term
Target Expected Real
Asset Class Allocation Rate of Return
Global Equity 49% 4.56%
Fixed Income 23% 1.56%
TIPS 5% -0.08%
Commodities 3% 1.22%
REITs 20% 4.06%
Total 100%
Assumed Long-Term Rate of Inflation 2.50%
Expected Long-Term Net Rate of Return 6.25%

Discount Rate – The discount rate used to measure the total OPEB liability was 6.25%. The projection of cash flows used to determine the discount rate assu med that City contributions will be made at rates equal to the actuarially determined contribution ra tes. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be availabl e to make all projected OPEB payments for current active and inactive employees and beneficiaries. Ther efore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.

Changes in Net OPEB Liability. The changes in the net OPEB liability are shown in the following table:

Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
(a) (b) (a) - (b)
Balance at June 30, 2021 37,674,749$ 6,181,301$ 31,493,448$ Changes Recognized for the Measurement Period:

Service Cost 630,242 - 630,242 Interest on the total OPEB liability 2,340,650 - 2,340,650 Contributions from the employer - 2,109,185 (2,109,185) Net investment income - (823,764) 823,764 Administrative expenses - (1,575) 1,575 Benefit payments (1,709,185) (1,709,185) - Net changes 1,261,707 (425,339) 1,687,046 Balance at June 30, 2022 (Measurement Date) 38,936,456$ 5,755,962$ 33,180,494$ Increase (Decrease)

110
290
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 13 – OTHER POST-EMPLOYMENT BENEFITS (Continued)

Detailed information about the OPEB pl an’s fiduciary net position is available in the separately issued plan financial report that may be obtained from CalPERS. The benefit paym ents and refunds include implicit subsidy benefit payments in the amount of $395,000.

Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare Cost Trend Rates.

The following presents the net OPEB liability of the City, as well as what the City's net OPEB liability w o u l d b e i f i t w e r e c a l c u l a t e d u s i n g a d i s c o u n t r a t e t h a t i s 1 - p e r c e n t a g e - p o i n t l o w e r ( 5 . 2 5 % ) o r 1 - percentage-point higher (7.25%) than the current discount rate:

Net OPEB Liability
Discount Rate -1.0% Discount Rate Discount Rate +1.0%

5.25% 6.25% 7.25%
$37,719,552 $33,180,494 $29,375,292

The following presents the net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1- percentage-point higher than the current healthcare cost trend rates:

Net OPEB Liability
Healthcare Cost

1.0% Decrease Trend Rates 1.0% Increase
(5.50% decreasing to

3.75%)
(6.50% decreasing to

3.75%)
(7.50% decreasing to

3.75%)
$28,634,799 $33,180,494 $38,699,518

OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB. For the year ended June 30, 2023, the City recognized OPEB expense of $135,759. At June 30, 2023, the City reported deferred outflows and inflows of resources related to OPEB from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
measurement date 2,234,444$ -$
Changes in assumptions 31,008 (163,871) Differences between expected and actual experience - (2,567,529) Net differences between projected and actual earnings
on plan investments 345,859 -
Total 2,611,311$ (2,731,400)$
Employer contributions made subsequent to the

111
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City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 13 – OTHER POST-EMPLOYMENT BENEFITS (Continued)
$2,234,444 reported as deferred outflows of resour ces related to contributions subsequent to the measurement date will be recognized as a reduction of the OPEB liability in the year ended June 30, 2024.

Other amounts reported as deferred outflows of reso urces and deferred inflows of resources related to OPEB will be recognized as part of OPEB expense as follows:

Year Annual
Ended June 30, Amortization
2024 (1,701,946)$
2025 (906,193)
2026 11,546
2027 242,060
Total (2,354,533)$
NOTE 14 – COMMITMENTS AND CONTINGENCIES
A. Grants from Other Governments
The City participates in a number of Federal, State, and County programs that are fully or partially funded by grants received from other governmental units. Expenditures financed by grants are subject to audit by the appropriate grantor government. If expenditures are disallowed due to noncompliance with grantor program regulations, the City may be required to reimburse the grantor government. As of June 30, 2023, some amounts of grant expenditures have not been audited, but the City believes that disallowed expenditures, if any, based on subseque nt audits will not have a material effect on any individual governmental funds or the ove
rall financial condition of the City.

B. Litigation
The City is a defendant in a number of lawsuits which have arisen in the normal course of business.

While substantial damages are alleged in some of these actions, their outcome cannot be predicted with certainty.
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City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 14 – COMMITMENTS AND CONTINGENCIES (Continued)
C. Construction Commitments
As of June 30, 2023, the City has construction comm itments to various capital projects as shown in the table below:

Project Amount
City Carryover:

W-111 WTP Filter Gallery Replacement & Rehabilitation 44,777,324$ 2020-21 Water Main Replacement 6,253,507
BART Pedestrian & Bicycle Connectivity 4,565,012
OBAG3-Delta De Anza Trail Improvements 4,427,000
James Donlan Extension PHASE I 3,823,580
Reviving the Heart of Pittsburg Pride 3,028,338
HSIP 10 Citywide Roadway Improvements 2,955,277
Main W Leland (WTP to SW Hills) 2,550,000
FEMA Emergency - Buchanan Rd Slope Repair 2,000,000
ARPA-Frontage Rd Living Green Trail 1,999,008
WTP Disinfection Modification & Conversion 1,881,188
W-34 WTP Disinfection Mod & Conversion 1,500,000
STP/OBAG II Pavement Improvement 1,478,968
FEMA Emergency - Kirker Creek Strm Canal 1,000,000
W-40 2022/23 Water Main Inst/Replacement 1,000,000
Traffic Signal Improvements 963,096
Mea M Surplus - W Leland Traffic Signal 850,000
ST-59 SB1 FY 22/23 Pavement Mgmt 800,000
FEMA Emergency - Willow Pass Storm Drain 800,000
FEMA Emergency - 60 Civic Ave Bldg Repair 800,000
Biennial Restroom Replacement/Rehabilitation 633,623
Boat Launching Facility Impreovement 560,327
Brownfields Multi-Purpose Cooperative Agreement 547,414 Automatic Water Meter Reading System 541,895
DTSC-Remediate City Property E. 3rd St 534,437
Corp Yard Fueling System Replacement 512,881
Council Chamber Broadcast System 503,792
GF Surplus - Streetlight LED Replacement 500,000
W-109 Water System Reliability Project 498,125
ST-11 HSIP 10-Crestview Dr Pavement Improvements 475,663 City Council FY 21 Pavement Mgmt & Street Improvements 436,051 2020-06 Central Ave Waterline Replacement 416,635
W-10 Highlands Ranch Reservoir Recoating 408,176
California Theater Marquee & Below Stage 400,000
ST-60 FY 22/23 Street Maintenance 386,262
IE Facility Relocation Project 350,000
Biennial Playfield Replacement 343,226
Kirker Pass Road Surface Treatment 325,000
Police Dept Security Fence 302,500
WTP Reservoir Control Panel 287,642
113
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City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 14 – COMMITMENTS AND CONTINGENCIES (Continued)
Downtown Ice Rink 280,717
PP-15 Station F Reconstruction 261,889
Citywide Storm Drain Improvements (2009-01) 260,436
Waterfront Area Reliability 251,599
Measure M-Road Maint. Preparation 248,829
Mea M Surplus - Recreation 340 Marina 242,215
PK-42 Oakl Hills Restroom 238,542
City Park Soccer Field Turf Replacement 235,320
16/17 WTP Sludge Removal 232,724
Delta View Sports Field 223,911
Measure M-Rubberized Cape Seal 223,082
ARPA-Pittsburg Eats 200,000
SS-2 FY22/23 Sewer Replacement Project 200,000
GF Surplus - Skate Plaza & Pump Track 198,606
Annual Playground Replacement 195,298
Citywide Fence and Soundwall Repairs 180,628
Water Treatment Plant Sludge Handling Facility 152,665
Regional LPR/Camera Project 149,192
ALCO Shredder Project 147,266
West Leland Street Lighting 145,752
Measure M-Striping 145,000
Police Evidence & Intake Room Improvements 140,626
Highway 4 Trunk Line Relief (2007-09) 133,113
Measure M-Creak Seal 129,000
PASS Buchanan, Railroad, W. Leland 128,584
ST-5 Citywide Arterial Median Conversion Project 127,679 W-6 WTP Capital Repairs & Improvements 126,516
Duct Bank and Vault Replacements 124,068
Fishing Pier (CIP) 115,523
Annual Park Features Replacement 115,397
19/20 Delta de Anza Trail 115,096
Measure M-LS Median & Row Maint. & Rejuv 115,000
GF Surplus - Public Arts 107,500
California Theatre - Phase I 106,868
Annual Park and Landscaping Improvements 101,212
W-39 2022/23 WTP Filer Media Replacement 100,000
Other Construction 1,766,854
Total Construction Commitments 104,382,654$
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City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 14 – COMMITMENTS AND CONTINGENCIES (Continued)

D. Sales Tax Participation Agreements

The City negotiates sales tax participation agreem ents on an individual basis. The City has the following sales tax participation agreements with three entities as of June 30, 2023:

Entity Tax Abated
Gross Dollar
Amount of
Abatement
in Fiscal
Year 2023 Commitments made
Contra Costa County i) 50% of Sales Tax Revenue from
annexation area; ii) 100% PG&E
Franchise Fee to City in the Annexation
Area
65,628$ Upon annexation of the
northwest inclusion Mirant
Power Plant, the City would
receive an increased share of
the County's property tax
revenue of 50% of all sales and
use tax revenues from the
Annexation Area
Private Company (Confidential)* 25% of Sales Tax Revenue of the parcel not to exceed $1,850,000 over 10 years
from 10/15/2012 through 10/14/2022
80,000 Relocation of business
Contra Costa County $150,000 to County if Sales Tax Revenues that the City receives from the
annexation area is greater than
$250,000/year. If Sales Tax Revenue is
less than $250,000, then the amount to be
transferred to the County shall be
reduced by the amount the sales revenue
that fell short of $250,000
150,000 None

*Pursuant to the Sales and Use Tax law (chapter 8 – Article 1 – section 7056), in order to protect the confidential information of sales taxes colle cted and abatements provided to each of the specific agencies, the City has presented the aggregate amount abated during the current fiscal year for this entity.
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City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 15 – SUCCESSOR AGENCY ACTIVITIES

The activities of the Successor Agency are report ed in the Successor Agency to the Redevelopment Agency Private-Purpose Trust Fund as the activities are under the control of the Oversight Board. The City provides administrative services to the Successor Agency to wind down the affairs of the former Redevelopment Agency. Activities of the Successor Agency are as follows:

A. Notes and Loans Receivable

The various rehabilitation and construction loans in cluding deferred and accrue d interest balance is $6,892,591 as of June 30, 2023. These loans have been made to in dividual homeowners, businesses and developers within the Redevelopment Project Area. The terms of these loans are specific to the borrower and interest rates, as well as usage and re payment requirements, vary according to the loan type. The following are descriptions of the various loans:

• Housing and rehabilitation loans are provided to homeowners who meet low and moderate income requirements as defined by the Departme nt of Housing and Urban Development. These residential loans are available from $5,000 to $25,000 per property at a loan term of 3.0% simple interest for 10 years. The property will be re habilitated to be free from health and safety violations upon completion of the rehabilitation program. The outstanding balance of these loan types as of June 30, 2023 was $181,043.

• In 2005, a long agreement was entered into with th e Mt. Diablo Unified School District (District) in the amount of $6,178,936 for capital improvem ents. The funding was provided with the 2003A Bond proceeds. The District will repay the loan from school impact fees collected until the Agency is fully reimbursed or 35 years, whicheve r occurs first. The balance outstanding as of June 30, 2023 was $3,104,578.

• The remaining loans receivable of $3,606,970 as of June 30, 2023 represent a number of small business and property owner rehabilitation and construction loans to eliminate blight by assisting improvements and rehabilitation of properties that were vacant or underutilized.

B. Capital Assets

Capital assets are valued at historical cost or estimated historical cost if historical cost is not available.

Donated capital assets are valued at their estima ted fair market value on the date donated. The Agency's policy has set the capitalization thre shold for general capital assets at $5,000 and infrastructure capital assets at $25,000 for reporting purposes. The Successor Agency has recorded all its public domain (infrastructure) capital assets, which include landscape, storm, street, and traffic systems.

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City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 15 – SUCCESSOR AGENCY ACTIVITIES (Continued)

All capital assets with limited useful lives are de preciated over their estimated useful lives. The purpose of depreciation is to spread the cost of capital assets equitably among all users over the life of these assets. The amount charged to depreciation ex pense each year represents that year’s pro rata share of the cost of capital assets.

Depreciation of all capital assets is charged as an expense against operations each year and the total amount of depreciation taken over the years, ca lled accumulated depreciation, is reported on the balance sheet as a reduction in the book value of capital assets.

Depreciation is provided using the straight line method, which means the cost of the asset is divided by its expected useful life in years and the result is ch arged to expense each year until the asset is fully depreciated. The Successor Agency has assigned th e useful lives and capitalization thresholds listed below to capital assets.

Depreciation is recorded on a straight-line method over the useful lives of the assets as follows:

• Building and Improvements 20 - 70 years
• Machinery and Equipment 3 - 10 years
• Infrastructure 20 - 75 years

Capital Asset Additions, Retirements and Balances

Balance at Balance at
June 30, 2022 Deletions June 30, 2023
Capital assets not being depreciated:

Land 2,728,298$ (1,576,718)$ 1,151,580$
Total capital assets not being depreciated 2,728,298 (1,576,718) 1,151,580 Capital assets being depreciated:

Buildings and Improvements 1,919,493 - 1,919,493 Total capital assets being depreciated 1,919,493 - 1,919,493 Less accumulated depreciation for:

Buildings and Improvements (503,532) (43,541) (547,073) Net capital assets being depreciated 1,415,961 (43,541) 1,372,420 Total capital assets, net 4,144,259$ (1,620,259)$ 2,524,000$

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City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 15 – SUCCESSOR AGENCY ACTIVITIES (Continued)

Major outlays for capital assets and improvements are ca pitalized as projects are constructed. Interest incurred during the construction phase is reflected in the capitalized value of the asset constructed, net of interest earned on the invested proceeds over the same period.

C. Long-Term Debt

The Successor Agency’ long-term debt activities for fiscal year ended June 30, 2023 are as follows:

Description
Original Issue
Amount
Balance
June 30, 2022 Additions Retirements
Balance
June 30, 2023
Amounts Due
Within
One Year
Amounts Due
in More Than
One Year
Tax Allocation Bonds:
1999 RDA Bonds 30,106,157$ 43,838,289$ 5,965,438$ 8,755,000$ 41,048,727$ 8,750,000$ 32,298,727$ 2006A RDA Housing Set-
Aside Bonds 11,020,000 7,455,000 - 330,000 7,125,000 345,000 6,780,000 2014 RDA Tax Allocation
Refunding Bonds 67,445,000 20,830,000 - 3,045,000 17,785,000 2,340,000 15,445,000 2016A RDA Housing Set-
Aside Bonds 13,845,000 8,760,000 - 955,000 7,805,000 990,000 6,815,000 2016A RDA Subordinated
Refunding Bonds 120,085,000 113,910,000 - 11,165,000 102,745,000 12,565,000 90,180,000 Sub-total 194,793,289 5,965,438 24, 250,000 176,508,727 24,990,000 151,518,727 Unamortized premium on 2016A RDA 8,447,910 - 2,532,210 5,915,700 - 5,915,700 203,241,199$ 5,965,438$ 26,782,210$ 182,424,427$ 24,990,000$ 157,434,427$ Total Successor Agency Debt

1999 Redevelopment Agency Tax Allocation Bonds

1999 Redevelopment Agency Tax Allocation Bonds (1999 RDA Bonds) outstanding at June 30, 2023 amounted to $71,590,000. The bond s bear interest at rates between 4.1 % and 6.2% with interest pay m e nt s m ad e s e m i - an nu a l l y o n F e b r u ar y 1 a nd Au g u st 1 . T he b o nd s m at u r e o n Au g u st 1 o f e ac h year. The proceeds of the bonds were used to prov ide money for certain public capital improvements located within the Agency's Project Area, to fund a reserve account, and to pay cost of issuance incurred in connection with the issuance. Annual principal and interest payments secured by the RDA property tax increment revenues are expected to re quire less than 20% from these revenues. The total principal and interest remaining to be paid on th e bonds is $71,590,000 For fiscal year 2022-2023, principal and interest paid were $8,755,000. With the dissolution of the Redevelopment Agency discussed above, Tax Increment is no longer distri buted, and instead the Su ccessor Agency receives payments from the County’s Redevelopment Property Tax Trust Fund (RPTTF) that are to be used to fund debt service on the Bonds, with no distinction between housing and non-housing revenues.

In June 2014, the City issued the 2014 Successor Agen cy to the Redevelopment Agency of the City of Pittsburg Bonds which partially refunded $6,110,000 of currently outstanding Current Interest Bonds of the 1999 bonds.

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City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 15 – SUCCESSOR AGENCY ACTIVITIES (Continued)

The Bonds unaccreted discount and the current ye ar accretion totaled $30, 541,273 and $5,965,438, respectively, at June 30, 2023. The Bonds do not pa y periodic interest. Interest on the Bonds will accrete in value at the rates between 6.10% and 6.20%. Repayment of the accreted principal commenced on August 1, 2019. Final repayment will be August 1, 2030.

The annual debt service requirements to mature the Capital Appreciation Bond portion of the 1999 RDA Bonds outstanding at June 30, 2023, were as follows:

Year Ending
June 30, Principal (1) Totals
2024 8,750,000$ 8,750,000$
2025 8,755,000 8,755,000
2026 8,755,000 8,755,000
2027 8,750,000 8,750,000
2028 9,145,000 9,145,000
2029-2033 27,435,000 27,435,000
Totals 71,590,000$ 71,590,000$
(1) Includes unaccreted discount in the total
amount of $30,541,273.

2006 Series A Housing Set Aside Redevelopment Agency Tax Allocation Bonds

2006 Series A Housing Set Aside Tax Allocation Bonds (2006A HSA RDA Bonds) outstanding at June 30, 2023 amounted to $7,125,000. On November 30, 2006, the Agency issued $11,020,000 of Series 2006A Bonds bearing interest at 5.12-5.31% to fund low and moderate income housing of benefit to the Agency's Los Medanos Redevelopment Project, to fund a reserve account, and to pay costs of issuance incurred in connection with issuance, sale and de livery of the Series 2006A RDA bonds. The bonds with interest payments made semi-annually on February 1 and August 1 each year commencing August 1, 2007 through August 1, 2036. Annual principal and interest payments on the bonds are expected to require less than 22% from these revenu es. The total principal and interest remaining to be paid on the bonds is $10,170,467. For fiscal year 20 22-2023, principal and interest paid were $717,173 With the dissolution of the Redevelopment Agency discussed above, Tax Increment is no longer distributed, and instead the Successor Agency rece ives payments from the County’s Redevelopment Property Tax Trust Fund (RPTTF) that are to be us ed to fund debt service on the Bonds, with no distinction between housing and non-housing revenues.

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City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 15 – SUCCESSOR AGENCY ACTIVITIES (Continued)

The annual debt service requirements to mature th e Series 2006A Bonds outstanding at June 30, 2023, were as follows:

Y ear Ending
June 30, Principal Interest Total
2024 345,000$ 369,248$ $ 714,248 2025 360,000 350,526 710,526
2026 380,000 330,875 710,875
2027 400,000 310,162 710,162
2028 425,000 288,255 713,255
2029-2033 2,485,000 1,068,178 3,553,178
2034-2038 2,730,000 328,223 3,058,223
Total 7,125,000$ 3,045,467$ $ 10,170,467

2014 Redevelopment Agency Tax Allocation Refunding Bonds

2014 Series Successor Agency to the Redevelopm ent Agency Subordinate Tax Allocation Refunding Bonds (2014 STAB Bonds) outstanding at June 30, 2023 amounted to $17,785,000. The 2014 STAB Bonds bear interest at rates between 4.0% and 5.0% with interest payments made semi-annually on February 1 and August 1. The 2014 STAB Bonds mature annually from 2016 to 2030 on August 1 in amounts ranging from $2,645,000 to $6,335 ,000. Proceeds from the 2014 STAB Bonds were used to refund $74,049,000 of the Agency's 2003A RDA Bonds, part ially refund the 1999 RDA Bonds, and to pay costs of issuance incurred in connection with the issuan ce, sales and delivery of 2 014 STAB Bonds. Annual principal and interest payments secured by the RDA property tax increment revenues are expected to require less than 14% from these reve nues. The total principal and intere st remaining to be paid on the bonds is $20,956,875. With the dissolution of the Redevelopment Agency discussed above, Tax Increment is no longer distributed, and in stead the Successor Agency receives payments from the County’s Redevelopment Property Tax Trust Fund (RPTTF) that are to be used to fund debt service on the Bond.

The annual debt service requirements to mature th e Series 2014 Bonds outstanding at June 30, 2023 were as follows:

Year Ending
June 30, Principal Interest Total
2024 2,340,000$ 830,750$ 3,170,750$ 2025 2,450,000 711,000 3,161,000 2026 2,575,000 585,375 3,160,375 2027 2,705,000 453,375 3,158,375 2028 2,445,000 324,625 2,769,625 2029-2030 5,270,000 266,750 5,536,750 Total 17,785,000$ 3,171,875$ 20,956,875$

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300
City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 15 – SUCCESSOR AGENCY ACTIVITIES (Continued)

2016 Series A Housing Set Aside Successor Agency Tax Allocation Refunding Bonds

In February 2016, the Successor Agency issued 20 16 Series A Set Aside Tax Allocation Refunding Bonds (2016A HSA Bonds) in the original pr incipal amount of $13,845,000 and $26,690,000, respectively. The proceeds of the bonds were used to refund and defease all of the outstanding 2004 Series A Housing Set-Aside Redevelopment Agency Tax Allocation Bonds. The 2016 Series A Bonds bear interest rates between 1.323% and 3.984% wi th interest payments made semi-annually on February 1 and August 1 each year commencing August 1, 2016 thro ugh August 1, 2029. The Bonds are secured by an irrevocable pledge of the Pledged Tax Revenues to be derived from Los Medanos II and Los Medanos III subareas and an irrevocable pledge of certain moneys in the Redevelopment Property Tax Trust Fund.

The annual debt service requirements to mature the Series 2016A HSA Bonds outstanding at June 30, 2023, were as follows:

Year Ending
June 30, Principal Interest Total
2024 990,000$ 310,385$ 1,300,385$ 2025 1,030,000 273,652 1,303,652
2026 1,065,000 233,997 1,298,997
2027 1,110,000 191,204 1,301,204
2028 1,150,000 142,159 1,292,159
2029-2030 2,460,000 116,631 2,576,631 Total 7,805,000$ 1,268,028$ 9,073,028$

2016 Series A and B Subordinate Tax Allocation Refunding Bonds

In February 2016, the Successor Agency issued 2016 Series A and B Subordinate Tax Allocation Refunding Bonds in the original principal amount of $120,085,000 and $26,6 90,000, respectively. The Bonds bear an interest rate of 5.0% with interest payments made semi-annually on March 1 and September 1 each year commencing September 1, 2016 through September 1, 2029.

The 2016 Series A Bond proceeds were used to refu nd the outstanding balanc e of the 2004 Series A Redevelopment Agency Subordinate Tax Allocation Bonds in the amount of $101,195,000. The issuance of the Bond terminated the swap agreement in connection with the 2004 Series A Bond. The 2016 Series A Bond proceeds were also used to refund and de fease a portion of the outstanding 2008 Series A Redevelopment Agency Subordinate Tax Allocation Refunding Bonds.

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City of Pittsburg

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023

NOTE 15 – SUCCESSOR AGENCY ACTIVITIES (Continued)

The annual debt service payments on the 2016 Seri es A Subordinate Tax Allocation Refunding Bonds outstanding at June 30, 2023, are as follows:

Year Ending
June 30, Principal Interest Total
2024 12,565,000$ 4,823,125$ 17,388,125$ 2025 13,210,000 4,178,750 17,388,750 2026 13,890,000 3,501,250 17,391,250 2027 14,610,000 2,788,750 17,398,750 2028 15,355,000 2,039,625 17,394,625 2029-2030 33,115,000 1,676,625 34,791,625 Total 102,745,000$ 19,008,125$ 121,753,125$

With the dissolution of the Redevelopment Agency discussed above, Tax Increment is no longer distributed, and instead the Successor Agency rece ives payments from the County’s Redevelopment Property Tax Trust Fund (RPTTF) that are to be us ed to fund debt service on the Bonds, with no distinction between housing and non-housing revenues.

The 2016 Series B Bond proceeds were used to refu nd the outstanding balance of the 2006 Series B Redevelopment Agency Subordinate Tax Allocation Bo nds in the amount of $2 2,470,000 and also used to refund and defease a portion of the outstandin g 2008 Series A Redevelopment Agency Subordinate Tax Allocation Refunding Bonds. The 2016 Series B Subordinate Tax Allocation Refunding Bonds were repaid in fiscal year 2018-2019.

The bond covenants for the Successor Agency Tax Al location Bonds contain events of default that require the revenue of the Successor Agency to be ap plied by the Trustee as specified in the terms of the agreement if any of the following conditions occur: default on debt service payments; the failure of the Successor Agency to observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy filing by the Successor Agency; or if any court or competent jurisdiction shall assume custody or control of the Successor Agency. The covena nts also contain a subjective acceleration clause that allows the trustees or holders, who hold the majority of the aggregate principal amount of the notes, to accelerate payment of the entire principal amount outstanding and interest accrued to become immediately due if they determine that a material adverse change occurs.

D. Commitments and Contingencies

The activities of the former Redevelopment Agency and the Successor Agency are subject to further examination by the State of Californ ia and the amounts, if any, of transfers or expenditures may be disallowed. The State Controller’s Office conducted a review of propriety of asset transfers between the former Redevelopment Agency or the Successor agency and any public agency that occurred on or after January 1, 2011.
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REQUIRED

SUPPLEMENTARY

INFORMATION

123
303

City of Pittsburg
Required Supplementary Information
For the Year Ended June 30, 2023

1. BUDGETS AND BUDGETARY ACCOUNTING

The City follows these procedures in establishing the budgetary data reflected in the financial statements:

1. Public hearings are conducted at the City to obtain public comments. The City Council annually adopts the budget for the ensuing fiscal year prior to July 1st.

2. Budgets for the General Fund, Special Revenue Funds, Capital Projects Funds and Debt Service Funds are adopted on a basis consistent with GAAP.

3. Under Article XIII B of the California Constituti on (the Gann Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from the proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, th e excess must either be refunded to the State Controller, returned to the taxpayers through revi sed tax rates or revised fees schedules, or an excess in one year may be offset against a deficit in the following year. For the fiscal year ended June 30, 2023, based on the calculations by City Management, proceeds of taxes did not exceed the appropriations limit.

4. Budgeted revenue amounts represent the origin al budget modified by adjustments authorized during the year. Budgeted expenditure amounts re present original appropriations adjusted for supplemental appropriations during the year wh ich were contingent upon new or additional revenue sources and re-appropriated amounts for prior year encumbrances. The City Manager must approve adjustments to departmental bu dgets; however, management may amend the budgeted amounts within departmental expenditure classifications.

5. Appropriations lapse at the end of the fiscal year and then are re-budgeted for the coming year.

Beginning with the FY 2014-2015 budget, capital project appropriations continue appropriations until the project is completed.

124
304

City of Pittsburg
Required Supplementary Information
For the Year Ended June 30, 2023

1. BUDGETS AND BUDGETARY ACCOUNTING (Continued)

Under encumbrance accounting, purchase orders, co ntracts, and other commitments for expenditures are recorded to reserve that portion of the applic able appropriation. Encumbrance accounting is employed as an extension of formal budgetary accounting. Since encumbrances do not yet constitute expenditures or liabilities, encumbrances outstanding at year-end are reported as reservations of fund balances.

The following funds had expenditures in excess of appropriations:

Assets Seizure Special Revenue Fund 823$ (a)
San Marco CFD 2004-1 Special Revenue Fund 11,093 (b) Vista Del Mar CFD 2005-2 Special Revenue Fund 690 (b) Public Safety CFD 2005-1 Special Revenue Fund 6,692 (b) Pittsburg Arts and Community Foundation Special Revenue Fund 28,034 (c) Railroad Avenue Specific Area Plan Special Revenue Fund 67,380 (d) Project Amenities Management Special Revenue Fund 4,471 (b) Fire District CFD 2017-01 Special Revenue Fund 4,085 (b) Golf Course Special Revenue Fund 809 (e)

(a) The excess was due to underbudget of departmental supplies. (b) The excess was due to underbudget of CFD’s administrative fees. (c) The excess was due to the underbudget of GASB 87-Leases. (d) The excess was due to the interest accrual on the interfund loan from the Regional Transportation Mitigation Fund to fund the Bart Pittsburg Center St ation construction. One- time special tax revenues from CFD 2014-1 over several years will pay back the loan. (e) The excess was due to underbudget od property taxes for the Golf Course.

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City of Pittsburg
General Fund
Schedule of Revenues and Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2023
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Property tax 4,730,884$ 4,982,186$ 5,150,208$ 168,022$ Sales tax 20,977,100 22,951,941 22,221,452 (730,489) Franchise tax 5,017,845 5,753,601 6,078,392 324,791 Other taxes 8,227,500 1,691,000 1,555,768 (135,232) Intergovernmental revenues 4,406,500 11,268,968 12,833,397 1,564,429 Permits, licenses, and fees 3,407,134 1,182,078 1,090,988 (91,090) Fines and forfeitures 431,451 378,869 428,979 50,110 Service fees 2,817,845 4,890,968 4,978,212 87,244 Use of money and property 572,722 280,560 832,874 552,314 Other revenues 2,367,778 3,594,690 2,955,220 (639,470) Total revenues 52,956,759 56,974,861 58,125,490 1,150,629 EXPENDITURES:

Current:

General government 689,840 4,146,387 5,178,991 (1,032,604) City Council 133,282 145,521 149,811 (4,290) City Manager and City Clerk 800,764 750,548 762,933 (12,385) City Attorney 368,164 563,120 340,444 222,676 Human resources 1,553,931 1,520,089 1,271,627 248,462 Finance and services 1,697,282 1,777,710 1,799,719 (22,009) Community development and services 10,895,914 11,128,870 9,947,361 1,181,509 Public safety 34,952,767 35,026,740 34,966,748 59,992 Public works - administration 83,716 87,070 95,010 (7,940) Public works - streets 4,899,793 5,592,176 3,438,241 2,153,935 Public works - parks 213,618 214,011 193,061 20,950 Total expenditures 56,289,071 60,952,242 58,143,946 2,808,296

OTHER FINANCING SOURCES (USES)
Transfers in 5,561,571 7,058,237 5,992,788 (1,065,449) Transfers (out) (3,133,526) (13,193,339) (12,109,034) 1,084,305 Total other financing sources (uses) 2,428,045 (6,135,102) (6,116,246) 18,856 NET CHANGE IN FUND BALANCE (904,267)$ (10,112,483)$ (6,134,702) 3,977,781$ FUND BALANCE:

Beginning of year 33,705,794
End of year 27,571,092$
126
306
City of Pittsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Housing Authority (Section 8) - Special Revenue Fund
For the Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental revenues 21,638,729$ 21,638,729$ 21,471,099$ (167,630)$ Service fee 1,455,697 1,455,697 1,573,936 118,239 Use of money and property - 15 21 6 Other revenues 154,115 154,115 140,233 (13,882) Total revenues 23,248,541 23,248,556 23,185,289 (63,267) EXPENDITURES:

Current:

Community development and services 23,177,642 23,310,801 23,185,592 125,209 Debt service:

Principal - - 45,362 (45,362) Interest - - 20,410 (20,410) Total expenditures 23,177,642 23,310,801 23,251,364 59,437

OTHER FINANCING SOURCES (USES)
Transfers in 55,000 55,000 55,000 - Transfers (out) (24,907) (24,907) (24,907) - Total other financing sources (uses) 30,093 30,093 30,093 -

NET CHANGE IN FUND BALANCE 100,992$ (32,152)$ (35,982) (3,830)$ FUND BALANCE:

Beginning of year 249,333
End of year 213,351$
Budgeted Amounts
127
307
City of Pittsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Successor Agency Housing Special Revenue Fund
For the Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Service fees 7,500$ 7,560$ 7,560$ -$ Use of money and property 26,000 46,656 110,064 63,408 Other revenues - 253,190 246,178 (7,012) Total revenues 33,500 307,406 363,802 56,396 EXPENDITURES:

Current:

Community development and services 282,058 1,168,696 234,795 933,901 Debt service:

Principal retirement - - 101,872 (101,872) Interest and fiscal charges - - 19,721 (19,721) Total expenditures 282,058 1,168,696 356,388 812,308

OTHER FINANCING SOURCES (USES)
Transfers (out) (562) (55,749) (55,749) - Total other financing sources (uses) (562) (55,749) (55,749) - NET CHANGE IN FUND BALANCE (249,120)$ (917,039)$ (48,335) 868,704$ FUND BALANCE:

Beginning of year 6,858,098
End of year 6,809,763$
Budgeted Amounts
128
308
City of Pittsburg
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Miscellaneous Grants Special Revenue Fund
For the Year Ended June 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Intergovernmental revenues 297,061$ 5,109,171$ 12,686,547$ 7,577,376$ Use of money and property 1,500 1,500 8,662 7,162 Other revenues - 156,026 (115,503) (271,529) Total revenues 298,561 5,266,697 12,579,706 7,313,009 EXPENDITURES:

Current:

Community development and services 45,263 3,403,104 955,080 2,448,024 Public safety 181,243 1,317,313 91,123 1,226,190 Total expenditures 226,506 4,720,417 1,046,203 3,674,214

OTHER FINANCING SOURCES (USES)
Transfers (out) (176,247) (712,775) (610,408) 102,367 Total other financing sources (uses) (176,247) (712,775) (610,408) 102,367 NET CHANGE IN FUND BALANCE (104,192)$ (166,495)$ 10,923,095 (11,089,590)$ FUND BALANCE:

Beginning of year 58,178
End of year 10,981,273$
Budgeted Amounts
129
309

CITY OF PITTSBURG, AGENT MULTIPLE EMPLOYER PENSION PLAN

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS As of fiscal year ending June 30, 2023
Last 10 Years*
Measurement Date 2014 2015 2016 2017 2018 2019 2020 2021 2022 Total Pension Liability
Service Cost 1,857,954$ 1,843,426$ 1,885,618$ 2,185,281$ 2,232,196$ 2,288,787$ 2,353,997$ 2,424,499$ 2,555,597$ Interest on total pension liability 5,258,464 5,559,084 5,954,324 6,187,235 6,453,806 7,017,326 7,496,928 7,781,919 8,005,677 Differences between expected and actual
experience - (227,056) 696,901 (1,930,694) 1,226,287 2,711,217 1,434,791 (1,431,592) (704,978) Changes in assumptions - (1,494,012) - 5,646,863 (2,707,757) - - - 2,393,680 Changes in benefits - - - - - - - - - Benefit payments, including refunds of
employee contributions (2,752,016) (2,914,360) (2,993,564) (3,017,394) (3,355,097) (3,733,114) (4,398,489) (4,538,899) (5,009,882) Net change in total pension liability 4,364,402 2,767,082 5,543,279 9,071,291 3,849,435 8,284,216 6,887,227 4,235,927 7,240,094 Total pension liability - beginning 70,559,887 74,924,289 77,691,371 83,234,650 92,305,941 96,155,376 104,439,592 111,326,819 115,562,746 Total pension liability - ending (a) 74,924,289$ 77,691,371$ 83,234,650$ 92,305,941$ 96,155,376$ 104,439,592$ 111,326,819$ 115,562,746$ 122,802,840$ Plan fiduciary net position
Contributions - employer 1,519,402$ 1,631,437$ 1,875,971$ 2,156,429$ 2,157,639$ 2,465,718$ 2,806,209$ 3,074,038$ 3,608,526$ Contributions - employee 873,360 1,036,916 902,130 931,204 1,304,579 1,158,921 1,201,689 1,174,220 1,246,674 Net investment income 8,949,231 1,323,594 284,705 6,786,287 5,770,585 4,832,621 3,927,075 18,549,157 (7,577,502) Administrative expense - (68,782) (37,256) (90,302) (105,852) (52,429) (110,160) (81,481) (62,141) Benefit payments, including refunds of
employee contributions (2,752,016) (2,914,360) (2,993,564) (3,017,394) (3,355,097) (3,733,114) (4,398,489) (4,538,899) (5,009,882) Net Plan to Plan Resource Movement - - - - (29,876) - - 10,124 - Other Miscellaneous Income/(Expense) - - - - (201,014) 170 - - - Net change in plan fiduciary net position 8,589,977 1,008,805 31,986 6,766,224 5,540,964 4,671,887 3,426,324 18,187,159 (7,794,325) Plan fiduciary net position - beginning 51,531,626 60,121,603 61,130,408 61,162,394 67,928,618 73,469,582 78,141,469 81,567,793 99,754,952 Plan fiduciary net position - ending (b) 60,121,603$ 61,130,408$ 61,162,394$ 67,928,618$ 73,469,582$ 78,141,469$ 81,567,793$ 99,754,952$ 91,960,627$ Net pension liability - ending (a)-(b) 14,802,686$ 16,560,963$ 22,072,256$ 24,377,323$ 22,685,794$ 26,298,123$ 29,759,026$ 15,807,794$ 30,842,213$ Plan fiduciary net position as a percentage
of the total pension liability 80.24% 78.68 % 73.48% 73.59% 76.41% 74.82% 73.27% 86.32% 74.88% Covered payroll 11,526,481$ 11,958,650$ 12,684,949$ 13,415,686$ 14,252,307$ 16,955,330$ 15,500,208$ 16,948,240$ 18,566,233$ Net pension liability as percentage of
covered payroll 128.42% 138.49% 174.00% 181.71% 159.17% 155.10% 191.99% 93.27% 166.12% Notes to Schedule:
* Fiscal year 2015 was the 1st year of implementation, therefore only nine years are shown.

Benefit changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Addi tional Service Credit (aka. Golden Handshakes).

Changes in assumptions: GASB 68, paragraph 68 states that the long term expected rate of return should be determined net of pension plan investment expense, but without reduction for pension plan administrative expense. In 2018, 2019 , 2020 and 2021, there were no changes. In 2022, the accounting discount rate reduced from 7.15% to 6.90%. In 2017, the accounting discount rate reduced from 7.65% to 7.15%. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense). In 2014, amounts were based on the 7.5% discount rate . All other assumptions for the 30, 2014 measurement date were the same as those used for the June 30, 2015 and 2016 measurement dates.

Miscellaneous Plan

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CITY OF PITTSBURG, AGENT MULTIPLE EMPLOYER PENSION PLAN

SCHEDULE OF CONTRIBUTIONS
As of fiscal year ending June 30, 2023
Last 10 Years*
Fiscal Year 2015 2016 2017 2018 2019 2020 2021 2022 2023 Actuarially determined contribution 2,464,100$ 2,745,066$ 3,094,191$ 2,253,288$ 2,333,907$ 2,806,210$ 3,072,547$ 3,603,067$ 3,757,320$ Contributions in relation to the actuarially
determined contributions (2,464,100) (2,745,066) (3,094,191) (2,253,288) (2,333,907) (2,806,210) (3,072,547) (3,603,067) (3,757,320) Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ -$ -$ Covered payroll 11,958,650$ 12,684,949$ 13,415,686$ 14,252,307$ 16,955,330$ 15,500,208$ 16,948,240$ 18,566,233$ 20,228,530$ Contributions as a percentage of covered
payroll 20.61% 21.64% 23.06% 15.81% 13.77% 18.10% 18.13% 19.41% 18.57% Notes to Schedule
Valuation date: June 30, 2021
Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry-Age Actuarial Cost Method
Amortization method Level Percent of Payroll
Asset valuation method Actuarial Value of Assets
Inflation 2.75% for 2015 to 2019, and 2.875% for 2020, and 2.50% for 2021 to 2023 Salary increases Varies by Entry Age and Service
Payroll Growth 2.75%
Investment rate of return
Retirement age The probabilities of Retirement are based on the CalPERS Experience Study.

Mortality
* Fiscal year 2015 was the 1st year of implementation, therefore only nine years are shown.

The probabilities of mortality are based on the CalPERS Experience Study. Pre-retirement and Post-retirement mortality rates include 20 years of projected mortality improvement using Scale AA published by the Society of Actuaries for 2015 to 2018. For 2019, 2020, 2021, and 2022 pre- retirement and post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.

7.50% for 2015 to 2018, 7.375% for 2019, 7.25% for 2020, 7.00% for 2021, 7.15% for 2022, and 7.00% for 2023. Net of Pension Pla n Investment and Administrative Expenses; includes Inflation.

Miscellaneous Plan

131
311

CITY OF PITTSBURG, A COST-SHARING MULTIPLE EMPLOYER DEFINED PENSION PLAN

SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS Last 10 Years*
As of fiscal year ending June 30, 2023
Meas ure ment Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 Plan's Proportion of the Net Pension Liability 0.37777% 0.39815% 0.46609% 0.48116% 0.49472% 0.44506% 0.46340% 0.49214% 0.53469% Plan's Proportionate Share of the Net Pension Liability 14,169,983$ 16,405,587$ 21,519,369$ 25,094,362$ 25,389,095$ 27,782,901$ 30,873,359$ 17,271,735$ 36,741,589$ Plan's Covered Payroll 12,627,215$ 13,134,628$ 14,209,375$ 10,647,118$ 10,804,084$ 12,017,570$ 10,485,001$ 12,076,801$ 12,796,156$ Plan's Proportionate Share of the Net Pension Liability as a Percentage of it's Covered-Employee Payroll 112.22% 124.90% 151.44% 235.69% 235.00% 231.19% 294.45% 143.02% 287.13% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Plan's Total Pension Liability 81.42% 79.38% 74.91% 74.42% 75.93% 75.53% 74.62% 86.58% 73.42% Plan's Proportionate Share of Aggregate Employer Contributions 1,757,817$ 2,148,293$ 2,219,565$ 2,518,889$ 2,954,663$ 3,357,057$ 4,346,298$ 5,968,738$ 7,564,096$ * Fiscal year 2015 was the 1st year of implem entation, therefore only nine years are shown.

Safety Plan

132
312

CITY OF PITTSBURG, A COST-SHARING DEFINED PENSION PLAN

SCHEDULE OF CONTRIBUTIONS
As of fiscal year ending June 30, 2023
Last 10 Years*
Fiscal Year Ended June 30 2015 2016 2017 2018 2019 2020 2021 2022 2023 Actuarially determined contribution 2,924,602$ 2,449,689$ 2,573,034$ 2,674,332$ 2,771,970$ 3,602,530$ 3,943,074$ 4,278,885$ 4,560,882$ Contributions in relation to the actuarially determined contributions (2,924,602) (2,449,689) (2,573,034) (2,674,332) (2,771,970) (3,602,530) (3,943,074) (4,278,885) (4,560,882) Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ -$ -$ Covered payroll 13,134,628$ 14,209,375$ 10,647,118$ 10,804,084$ 12,017,570$ 10,485,001$ 12,076,801$ 12,796,156$ 13,199,562$ Contributions as a percentage of covered payroll 22.27% 17.24% 24.17% 24.75% 23.07% 34.36% 32.65% 33.44% 34.55% Notes to Schedule
Valuation date: June 30, 2013 June 30, 2014 June 30, 2015 June 30, 2016 June 30, 2017 June 30, 2018 June 30, 2019 June 30, 2020 June 30, 2021 Methods and assumptions used to determine contribution rates:

Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Inflation
Salary increases
Investment rate of return
Retirement age
Mortality
* Fiscal year 2015 was the 1st year of implementation, therefore only nine years are shown.

Safety Plan
The probabilities of Retirement are based on the 2021 CalPERS Experience Study for the period from 2000 to 2019.

The probabilities of mortality are derived from CalPERS' Membership Data for all Funds based on CalPERS' specific data from a 2021 CalPERS Experience Study. The table includes 20 years of mortality improvements using the Society of Actuaries Scale BB.

Varies by Entry Age and Service

7.15% Net of Pension Plan Investment and Administrative Expenses; includes Inflation.

Entry age
Level percentage of payroll, closed
30 years
5-year smoothed market

2.50%

133
313

Measurement Date 2017 2018 2019 2020 2021 2022
Total OPEB Liability
Service Cost 807,000$ 830,803$ 801,058$ 647,726$ 634,868$ 630,242$ Interest 2,558,000 2,680,717 2,806,423 2,720,705 2,794,547 2,340,650 Changes in benefit terms - - - - - - Differences between expected and actual experience - - (2,201,658) - (5,776,939) - Changes of assumptions - - (933,286) (710,108) 69,768 - Benefit payments (1,625,000) (1,536,951) (1,701,943) (1,476,338) (1,626,643) (1,709,185) Net change in total OPEB liability 1,740,000 1,974,569 (1,229,406) 1,181,985 (3,904,399) 1,261,707 Total OPEB liability - beginning 37,912,000 39,652,000 41,626,569 40,397,163 41,579,148 37,674,749 Total OPEB liability - ending (a) 39,652,000$ 41,626,569$ 40,397,163$ 41,579,148$ 37,674,749$ 38,936,456$ Plan fiduciary net position
Contributions - employer 2,106,000$ 2,021,796$ 2,201,943$ 1,976,338$ 726,643$ 2,109,185$ Contributions - employee - - - - - - Net investment income 295,000 270,566 277,898 172,535 1,527,524 (823,764) Administrative expense (1,000) (6,320) (919) (2,459) (2,103) (1,575) Benefit payments (1,625,000) (1,536,951) (1,701,943) (1,476,338) (1,626,643) (1,709,185) Net change in plan fiduciary net position 775,000 749,091 776,979 670,076 625,421 (425,339) Plan fiduciary net position - beginning 2,585,000 3,359,734 4,108,825 4,885,804 5,555,880 6,181,301 Plan fiduciary net position - ending (b) 3,360,000$ 4,108,825$ 4,885,804$ 5,555,880$ 6,181,301$ 5,755,962$ Net OPEB liability - ending (a)-(b) 36,292,000$ 37,517,744$ 35,511,359$ 36,023,268$ 31,493,448$ 33,180,494$ Plan fiduciary net position as a percentage of the total OPEB liability 8.47% 9.87% 12.09% 13.36% 16.41% 14.78% Covered-employee payroll 15,921,000$ 16,568,668$ 14,845,791$ 14,623,265$ 13,712,707$ 13,191,542$ Net OPEB liability as a percentage of covered-employee payroll 227.95% 226.44% 239.20% 246.34% 229.67% 251.53% * Fiscal year 2018 was the first
year of implementation, therefore only six years are shown.

CITY OF PITTSBURG, AGENT MULTIPLE EMPLOYER OPEB PLAN

SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS As of fiscal year ending June 30, 2023
Last 10 Years*

134
314

Fiscal Year Ended June 30, 2018 2019 2020 2021 2022 2023 Actuarially determined contribution 3,938,000$ 4,096,000$ 4,270,000$ 3,911,000$ 4,117,000$ 3,639,000$ Contributions in relation to the
actuarially determined contribution (2,021,796) (2,201,943) (2,038,794) (726,643) (2,234,444) (2,234,444) Contribution deficiency (excess) 1,916,204$ 1,894,057$ 2,231,206$ 3,184,357$ 1,882,556$ 1,404,556$ Covered-employee payroll 16,568,668$ 14,845,791$ 14,623,265$ 13,712,707$ 13,191,542$ 15,659,854$ Contributions as a percentage of
covered-employee payroll 23.77% 27.59% 29.20% 28.52% 31.21% 23.24% Notes to Schedule
Valuation date: June 30, 2017 June 30, 2017 June 30, 2019 J une 30, 2019 June 30, 2021 June 30, 2021 Methods and assumptions used to determine contribution rates:

Actuarial cost method
Amortization method Level percent of payroll
Asset valuation method
Inflation
Salary increases
Payroll Growth 2.75%
Discount rate 6.25%
Retirement age
Mortality
* Fiscal year 2018 was the first year of implementation, therefore only six years are shown.

Society of Actuaries Scale MP-21
19 years remaining as of June 30, 2023
Investment gains and losses spread over 5-
year rolling period

2.50%
Varies by Entry Age and Service
Entry age normal
The probabilities of Retirement are based on
CalPERS Experience Study for the period
from 2000-2019.

CITY OF PITTSBURG, AGENT MULTIPLE EMPLOYER OPEB PLAN

SCHEDULE OF CONTRIBUTIONS
As of fiscal year ending June 30, 2023*
Last 10 Years*
135
315

CITY OF PITTSBURG
Annual Comprehensive Financial Report
June 30, 2023
316

SUPPLEMENTARY

INFORMATION

137
317

CITY OF PITTSBURG
Annual Comprehensive Financial Report
June 30, 2023
318

NON-MAJOR

GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS:

Small Cities Grants Fund – This fund was established to account for direct grants received for housing and rental rehabilitation programs, which are pr ogram income and used to supplement housing rehabilitation costs.

Gas Tax Fund – This fund represents the Highway User s Tax apportionments from the State of California for street and road purposes under the provisions of Streets and Highways Code Maintenance.

Measure J Tax Fund – This fund receives 18% of the collected half-cent sales tax, which is based on the population and road mileage, to fund regional transportation and transit related projects.

Lighting & Landscape Fund – Receipts of the assessments from residential and commercial properties are used by this fund to provide maintenance of stre et lighting, street trees, landscape, curbs, gutters and sidewalks within the City.

Lighting & Landscape Oak Hills Fund – Receipts of the special assessments from residential and commercial properties, in the Oak Hill area, are used by this fund to provide maintenance of street lighting, street trees, landscape, curbs, gutters and sidewalks.

Assets Seizure Fund – This fund was established to administer the seized assets from criminal activities.

Marina Vista Field Replacement Fund – This fund accounts for the collection of rents (maximum of $60,000 annually) from the Athletic Fields rentals of the Marina Vista School fields as set forth in the Construction and Use Agreement for the contingent turf replacement of the fields.

Local Law Enforcement Block Grant Fund – This fund accounts for th e funds provided by Department of Justice to supplement local crime prevention and public safety efforts.

Southwest Pittsburg GHAD II Fund – Southwest Pittsburg Geological Hazard Abatement fund was created to account for the maintenance district of which responsibilities are restricted to mitigation/abatement of geologic landslide and erosion hazards. The fund receives revenues from assessments levied on the properties located on the hillside areas for its operation costs.

Southwest Pittsburg GHAD II Administrative Fund – This fund was created to facilitate the administration (salaries and fringe benefits) for the Southwest Pittsburg GHAD II Fund.

139
319

NON-MAJOR
GOVERNMENTAL FUNDS, Continued

SPECIAL REVENUE FUNDS, Continued:

Storm Water Utility (NPDES) Fund – T h i s f u n d a c c o u n t s f o r p r o p e r t y a s s e s s m e n t s c o l l e c t e d b y t h e County of Contra Costa on behalf of the City to provide funding for National Pollutant Discharge Elimination System (NPDES) and general drainage maintenance activities within the Pittsburg Storm Water Utility Area to reduce pollutants.

HUD Community Development Block Grant Fund – Receives annual entitlement from Department of HUD to finance public services, housing activities , economic development projects, public facility projects, program planning and administration.

NSP Neighborhood Stabilization Program Fund – This fund accounts for the funding by the California Department of Housing and Community Development for purchases and redevelopment of foreclosed homes, the purchase and rehabilitation of abandoned or foreclosed homes, the demolition of blighted structures, and the redevelopment of demolished or vacant property within the City.

CalHome Program Fund – This fund was established to account for the funding from the California Department of Housing and Community Development for mortgage assistance and owner-occupied housing rehabilitation loans.

California Energy Conservation Program – This fund is funded by the Energy Efficiency and Conservation Block Grant to enable the City to pursue the City's LED streetlight retrofit, to develop and implement projects to improve energy efficiency and reduce energy use and fossil fuel emissions within the City.

San Marco CFD 2004-01 Fund – The receipts of this fund provid e funding for the increased demand of police services in the San Marco subdivision of the Community Facilities District.

Solid Waste Fund – This fund has been established to financ e City activities associated with AB 939 compliance such as the annual reporting of recy cling programs, hazardous waste collection and the coordination of public education programs. In addition this fund finances the City’s solid waste facility Local Enforcement Program (LEA) for permitting, inspection and enforcement of State regulations governing operational, closed and illegal landfills an d refuse processing facilities. These revenues will also provide for litter abatement and other similar se rvices to mitigate the impact on the City of Pittsburg associated with hosting the Material Reco very and Transfer Station (MRTS) which services the entire region. The Solid Waste Fund revenues are generated by a $1.50 surcharge on each ton of solid waste received at the Material Recovery and Transfer Station.

Vista Del Mar CFD 2005-2 Fund – The receipts of the fund provide d funding for financing increasing demands for police services in and for the Vista Del Mar CFD 2005-2.

Public Safety Services CFD 2005-1 Fund – The receipts of this fund provide funding for financing increasing demands for public safety services within this Community Facilities District. 140
320

NON-MAJOR
GOVERNMENTAL FUNDS, Continued

SPECIAL REVENUE FUNDS, Continued:

Park Maintenance CFD 2007-1 Fund – The receipts of this fund provide funding for financing increasing demands for park maintenance services within this Community Facilities District.

Cops Hiring Recovery Fund – This fund was established to account for Grants received from law enforcement agencies to create and preserve jobs and to increase their community policing capacity and crime-prevention efforts.

Pittsburg Arts & Community Foundation – This fund was created fo r an independent non-profit corporation set up to increase, support and encourag e art, literacy, education, economic development, affordable housing, and other community resources and programs to benefit the City of Pittsburg and its residents.

Hillview Jr. High Athletic Field – This fund was established to account for Grants received from Measure WW for financing, construction and joint us e of an athletic field at Hillview Junior High School with Pittsburg Unified School District.

Public, Education and Government Fees (PEG) – The City is given authority from California Public Utilities Code to levy State Franchise Holder. The revenue of this fund suppo rts Public Education and Government (PEG) channel facilities.

Railroad Avenue Specific Area Plan – This fund was created to accoun t for the funding and financing of facilities according to the Railroad Avenue Specific Plan.

Project Amenities Management Fund – This fund was created to acco unt for continuous maintenance and management of various project amenities for Greystone Place such as stormwater treatment facilities, sanitary sewer lift stations, emergency vehicle access and gates.

Fire District CFD 2017-01 Fund – The funds will be used solely for supplemental services and facilities of the Fire District that benefited City of Pittsburg.

Golf Course Fund – This fund was established to account for revenues and expenditures associated with providing golfing facilities and services to our community.

US EPA Grants Fund – This fund was established to accoun t for direct grants to enhance public enjoyment, reduce existing environmental contam ination of the waterfront and opportunities for economic development in alignment with the General and Trust Lands Use Plans.

141
321

NON-MAJOR
GOVERNMENTAL FUNDS, Continued
SPECIAL REVENUE FUNDS, Continued:

Marina Dredging & Infrastructure Improvement Fund – This fund was established to account for funding to help facilitate the dredging project, various infrastructure improvements and modernize Marina operations.

Tuscany Meadows CFD 2021-1 Fund – This fund was established to provide funding to help the developer finance the cost of design and constr uction of public improvements relating to the development of the Tuscany Meadows subdivision. The special tax for the CF D may be used to pay the debt service on bonds issued by the City in the fu ture to finance the facilities or may be used to pay for the facilities on a pay-as-you-go basis, without the issuance of bonds.

DEBT SERVICE FUND:

Pension Obligations Fund accounts for the accumulation of resources for payment of principal, interest and related costs of the Pension Obligation Bonds long-term debt and for payments to the Contra Costa County Employees’ Retirement Association for unfunded accrued pension obligations.

CAPITAL PROJECTS FUNDS:

Inclusionary Housing Fund – This fund was established to accoun t for fees paid by developers in the form of "in-lieu" fees that would be used for the construction of affordable housing.

Traffic Impact Fair Share Fund – This fund was established to account for developer fees as a condition of development to mitigate future traffic impacts.

Kirker Creek Drainage Fees Fund – This fund was established to acco unt for the drainage fees collected
from developers to finance drainage improvement projects.

Traffic Mitigation Fund – Fees collected from developers are us ed by this fund to finance the capital improvement projects that mitigate the traffic impact.

Capital Improvement Fund – This fund accounts for most capital improvement projects in the City that have various funding sources. Revenues received from various sources are used for related project costs.

Park Dedication Fund – This fund was established to account for the fees collected from developers and used for design, development, construction of ne w park projects and the re habilitation of existing parks.
142
322

NON-MAJOR
GOVERNMENTAL FUNDS, Continued

CAPITAL PROJECTS FUNDS, Continued:

Regional Traffic Mitigation Fund – This fund was established to ac count for the fees collected from new development in the City to support the regional transportation improvement projects through the Pittsburg Regional Transportation Development Impact Mitigation Fee (“PRTDIM”) program.

Infrastructure Repair & Replacement – This fund was established to fund repair and capital improvement projects related to the City’s infrastructure including streets, roads, parking lots and storm drains.

Community Capital Improvement – This fund was established to administer the Cooperative and Repayment Agreement between the Redevelopment Agen cy of the City of Pittsburg and the City of Pittsburg. The goal of this agreement is to utilize the City personnel and facilities more effectively to control the Agency’s planning and administrative costs for redevelopm ent activities in the established redevelopment project areas.

Bailey Road Maintenance – This fund was created to account for surcharges collected from Keller Canyon Landfill Company to fund repair and main tenance of Bailey Road from Highway 4 to the Landfill entrance.

Gas Tax – Road Maintenance and Rehabilitation – This fund was created to account for SB1 Transportation funding.

Regional Freeway Security Fee – This fund was created for the ne w Freeway Security Network and provide staff support (City Engineering, Public Wo rks, and the Police Department) to implement the process.
143
323
City of Pittsburg
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2023
Special Revenue
Small Cities Gas Measure J Lighting &
Grants Tax Tax Fund Landscape
ASSETS
Cash and investments 84,607$ 1,377,953$ -$ 929,985$ Restricted cash and investments - - - - Receivables:

Accounts - 347,802 116,894 997 Loans and notes 1,225,588 - - - Leases - - - - Inventory - - - 37,158 Prepaid items - - - 1,913 Advance to other funds - - - - Total Assets 1,310,195$ 1,725,755$ 116,894$ 970,053$

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable -$ 34,881$ 66,930$ 240,743$ Refundable deposits - - - - Loans payable - current 15,000 - - - Unearned revenue - - - - Due to other funds - - 574,395 - Advance from other funds - - - - Total Liabilities 15,000 34,881 641,325 240,743 Deferred inflows of resources:

Unavailable revenue 1,210,588 - - - Leases - - - - Total Deferred Inflows of Resources 1,210,588 - - - Fund Balances:

Nonspendable - - - 39,071 Restricted 84,607 1,690,874 - 690,239 Committed - - - - Assigned - - - - Unassigned - - (524,431) - Total Fund Balances (deficit) 84,607 1,690,874 (524,431) 729,310 Total Liabilities, Deferred Inflows of
Resources and Fund Balances 1,310,195$ 1,725,755$ 116,894$ 970,053$ 144
324
Special Revenue
Southwest
Lighting & Marina Vista Local Law Southwest Pittsburg
Landscape Assets Field Enforcement Pittsburg GHAD II
Oak Hills Seizure Replacement Block Grant GHAD II Admin 77,591$ 265,998$ 321,153$ 36,158$ 6,064,910$ 316,882$ - - - - - - - - - 32,715 - - - - - - - - - - - - - - - 14,574 - 26,453 - - - - - - - - - - - - 359,129 - 77,591$ 280,572$ 321,153$ 95,326$ 6,424,039$ 316,882$ 596$ -$ -$ 1,812$ -$ -$ - 203,762 - - (10,925) - - - - - - - - - - 42,395 - - - - - 30,505 - - - - - - - - 596 203,762 - 74,712 (10,925) - - - - - - - - - - - - - - - - - - - - 14,574 - 26,453 - - 76,995 - - - 6,434,964 316,882 - - 321,153 - - - - 62,236 - - - - - - - (5,839) - - 76,995 76,810 321,153 20,614 6,434,964 316,882 77,591$ 280,572$ 321,153$ 95,326$ 6,424,039$ 316,882$ (Continued)
145
325
City of Pittsburg
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2023

HUD NSP
Storm Water Community Neighborhood
Utility Development Stabilization CalHome
(NPDES) Block Grant Program Program
ASSETS
Cash and investments -$ -$ 48,688$ 310,227$ Restricted cash and investments - - - - Receivables:

Accounts 407,284 378,659 - - Loans and notes - 235,800 2,090,899 329,826 Leases - - - - Inventory 1,829 - - - Prepaid items - - - - Advance to other funds - - - - Total Assets 409,113$ 614,459$ 2,139,587$ 640,053$

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 20,601$ 176,404$ -$ -$ Refundable deposits - - - - Loans payable - current - 88,769 - - Unearned revenue - - - - Due to other funds 202,327 62,343 - - Advance from other funds - - - - Total liabilities 222,928 327,516 - - Deferred inflows of resources:

Unavailable revenue - 147,031 2,090,899 329,826 Leases - - - - Total Deferred Inflows of Resources - 147,031 2,090,899 329,826 Fund Balances:

Nonspendable 1,829 - - - Restricted 184,356 139,912 48,688 310,227 Committed - - - - Assigned - - - - Unassigned - - - - Total fund balances (deficit) 186,185 139,912 48,688 310,227 Total Liabilities, Deferred Inflows of
Resources and Fund Balances 409,113$ 614,459$ 2,139,587$ 640,053$ Special Revenue
146
326
California
Energy Public Safety Park Cops
Conservation San Marco Solid Vista Del Mar Services Maintenance Hiring Program CFD 2004-01 Waste CFD 2005-2 CFD 2005-1 CFD 2007-1 Recovery 7$ 261,047$ 913,450$ 28,705$ 240,502$ 366,934$ -$ - - - - - - - - - 209,294 - - 36,373 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 7$ 261,047$ 1,122,744$ 28,705$ 240,502$ 403,307$ -$ -$ -$ 65,876$ -$ -$ 1,198$ -$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 65,876 - - 1,198 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 7 261,047 1,056,868 28,705 240,502 402,109 - - - - - - - - - - - - - - - - - - - - - - 7 261,047 1,056,868 28,705 240,502 402,109 - 7$ 261,047$ 1,122,744$ 28,705$ 240,502$ 403,307$ -$ (Continued)
Special Revenue
147
327
City of Pittsburg
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2023
Pittsburg Public,
Arts & Hillview Jr. Education, and Railroad Avenue
Community High Athletic Government Specific Area
Foundation Field Fees (PEG) Plan
ASSETS
Cash and investments 557,171$ 428,539$ 599,321$ 115,790$ Restricted cash and investments - - - - Receivables:

Accounts - - 34,831 - Loans and notes 302,007 - - - Leases 443,007 - - - Inventory 129,251 - - - Prepaid items 4,143 - - - Advance to other funds - - - - Total Assets 1,435,579$ 428,539$ 634,152$ 115,790$

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 118,141$ -$ 3,046$ -$ Refundable deposits 13,700 - - - Loans payable - current - - - - Unearned revenue 8,651 - - - Due to other funds - - - - Advance from other funds - - - 3,172,428 Total Liabilities 140,492 - 3,046 3,172,428 Deferred inflows of resources:

Unavailable revenue 302,007 - - - Leases 403,206 - - - Total Deferred Inflows of Resources 705,213 - - - Fund Balances:

Nonspendable 133,394 - - - Restricted 456,480 - - - Committed - 428,539 631,106 - Assigned - - - - Unassigned - - - (3,056,638) Total Fund Balances (deficit) 589,874 428,539 631,106 (3,056,638) Total Liabilities, Deferred Inflows of
Resources and Fund Balances 1,435,579$ 428,539$ 634,152$ 115,790$ Special Revenue
148
328

Debt Service
Project Marina Dredging Tuscany
Amenities Fire District Golf US EPA & Infrastructure Meadows Pension Management CFD 2017-01 Course Grants Improvement CFD 2021-1 Obligations 168,391$ 70,662$ -$ 2,722,136$ 239,708$ 24,177$ -$ - - - - - - 5,637,472 - - - 8,948 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 711,803 - - - - - - - 168,391$ 70,662$ -$ 2,731,084$ 239,708$ 24,177$ 6,349,275$ -$ -$ -$ 8,729$ -$ -$ -$ 1,066 - - - - - - - - - - - - - - - - - - - - - - 1,563 - - - 2,973,407 - - 375,000 - - - - 1,066 - 376,563 8,729 - - 2,973,407 - - - - - - - - - - - - - - - - - - - - - - - - - - - 711,803 167,325 70,662 - 2,722,355 239,708 24,177 2,664,065 - - - - - - - - - - - - - - - - (376,563) - - - - 167,325 70,662 (376,563) 2,722,355 239,708 24,177 3,375,868 168,391$ 70,662$ -$ 2,731,084$ 239,708$ 24,177$ 6,349,275$ (Continued)
Special Revenue
149
329
City of Pittsburg
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2023
Traffic
Inclusionary Impact Kirker Creek Traffic
Housing Fair Share Drainage Fees Mitigation
ASSETS
Cash and investments 39,568$ 536,952$ 370,145$ 6,224,058$ Restricted cash and investments - - - - Receivables:

Accounts - - - 176,420 Loans and notes - - - - Leases - - - - Inventory - - - - Prepaid items - - - 5,000 Advance to other funds 380,000 - - - Total assets 419,568$ 536,952$ 370,145$ 6,405,478$

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable -$ -$ -$ -$ Refundable deposits - - - 5,000 Loans payable - current - - - - Unearned revenue - - - - Due to other funds - - - - Advance from other funds - - - - Total Liabilities - - - 5,000 Deferred inflows of resources:

Unavailable revenue - - - - Leases - - - - Total Deferred Inflows of Resources - - - - Fund Balances:

Nonspendable 380,000 - - 5,000 Restricted 39,568 536,952 370,145 6,395,478 Committed - - - - Assigned - - - - Unassigned - - - - Total Fund Balances (deficit) 419,568 536,952 370,145 6,400,478 Total Liabilities, Deferred Inflows of
Resources and Fund Balances 419,568$ 536,952$ 370,145$ 6,405,478$ Capital Projects
150
330

Capital Projects
Regional Infrastructure Community Bailey
Capital Park Traffic Repair & Capital Road
Improvement Dedication Mitigation Replacement Improvement Maintenance 11,774,657$ 2,316,406$ 459,748$ 30,413$ 412,660$ 1,878,018$ - - - - - - 111,514 - - - - - - - - - - - - - - - - - - 886 - - - - - - - - - - - - 3,172,428 - - - 11,886,171$ 2,317,292$ 3,632,176$ 30,413$ 412,660$ 1,878,018$ 595,202$ 96,340$ -$ -$ -$ -$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 595,202 96,340 - - - - - - - - - - - - - - - - - - - - - - - 886 3,172,428 - - - - 2,220,066 459,748 - - 1,878,018 11,290,969 - - 30,413 412,660 - - - - - - - - - - - - - 11,290,969 2,220,952 3,632,176 30,413 412,660 1,878,018 11,886,171$ 2,317,292$ 3,632,176$ 30,413$ 412,660$ 1,878,018$ (Continued)
151
331
City of Pittsburg
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2023
Gas Tax-Road Regional Non-Major
Maintenance & Freeway Governmental
Rehabilitation Security Fee Funds
ASSETS
Cash and investments 3,195,685$ -$ 43,809,002$ Restricted cash and investments - - 5,637,472 Receivables:

Accounts 224,404 23,012 2,109,147 Loans and notes - - 4,184,120 Leases - - 443,007 Inventory - - 210,151 Prepaid items - - 722,859 Advance to other funds - - 3,911,557 Total assets 3,420,089$ 23,012$ 61,027,315$ Liabilities:

Accounts payable 91,470$ (1,729)$ 1,520,240$ Refundable deposits - - 212,603 Loans payable - current - - 103,769 Unearned revenue - - 51,046 Due to other funds - 159,107 4,003,647 Advance from other funds - - 3,547,428 Total Liabilities 91,470 157,378 9,438,733 Deferred inflows of resources:

Unavailable revenue - - 4,080,351 Leases - - 403,206 Total Deferred Inflows of Resources - - 4,483,557 Fund Balances:

Nonspendable - - 4,485,438 Restricted 3,328,619 - 33,540,348 Committed - - 13,114,840 Assigned - - 62,236 Unassigned - (134,366) (4,097,837) Total Fund Balances (deficit) 3,328,619 (134,366) 47,105,025 Total Liabilities, Deferred Inflows of
Resources and Fund Balances 3,420,089$ 23,012$ 61,027,315$ Capital Projects
152
332

CITY OF PITTSBURG
Annual Comprehensive Financial Report
June 30, 2023
333
City of Pittsburg
Combining Statements of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the year ended June 30, 2023
Special Revenue
Small Cities Gas Measure J Lighting &
Grants Tax Tax Fund Landscape
REVENUES:

Franchise tax -$ -$ -$ -$
Other taxes - 1,927,022 - -
Intergovernmental revenues - (47,029) (38,006) -
Licenses, permits, and fees - - - -
Fines and forfeitures - - - -
Special assessments - - - 3,000,837
Service fees - - 10,000 -
Use of money and property 1,386 22,171 159 11,591
Other revenues 53,104 - 61,604 14,241
Total Revenues 54,490 1,902,164 33,757 3,026,669 EXPENDITURES:

Current:

General government - - - 131,493
Finance and services - - - -
Community services 225 - 57,793 -
Public safety - - - -
Public works - administration - - - -
Public works - streets - 102,208 - 5,658,104
Capital outlay and improvements - - 93,229 -
Debt service:

Principal retirement - - - -
Interest and fiscal charges - - - -
Total Expenditures 225 102,208 151,022 5,789,597

REVENUES OVER (UNDER)
EXPENDITURES 54,265 1,799,956 (117,265) (2,762,928) OTHER FINANCING SOURCES (USES):

Transfers in - 260,000 - 2,754,986
Transfers out - (1,300,000) (785,000) (47,004)
Total other financing sources (uses) - (1,040,000) (785,000) 2,707,982 Net change in fund balances 54,265 759,956 (902,265) (54,946) FUND BALANCES (DEFICITS):

Beginning of Year 30,342 930,918 377,834 784,256
End of Year 84,607$ 1,690,874$ (524,431)$ 729,310$ 154
334
Southwest
Lighting & Marina Vista Local Law Southwest Pittsburg
Landscape Assets Field Enforcement Pittsburg GHAD II
Oak Hills Seizure Replacement Block Grant GHAD II Admin -$ -$ -$ -$ -$ -$ - - - - 1,212,514 - - - - 78,598 - - - - - - - - - 8,831 - - - - 33,959 - - - - - - - - - - - 1,436 21 5,933 653 114,251 4,748 - - - - - - 35,395 8,852 5,933 79,251 1,326,765 4,748 - - - - - - - - - - - - - - - 29,446 169,412 299,002 - 823 - 55,224 - - - - - - - - 35,214 - - - - - - - - - - - - - - - - - - - - - - - 35,214 823 - 84,670 169,412 299,002 181 8,029 5,933 (5,419) 1,157,353 (294,254) 1,500 - - - - 510,000 - - - - (510,000) (5,431) 1,500 - - - (510,000) 504,569 1,681 8,029 5,933 (5,419) 647,353 210,315 75,314 68,781 315,220 26,033 5,787,611 106,567 76,995$ 76,810$ 321,153$ 20,614$ 6,434,964$ 316,882$ (Continued)
Special Revenue
155
335
City of Pittsburg
Combining Statements of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the year ended June 30, 2023

HUD NSP
Storm Water Community Neighborhood
Utility Development Stabilization CalHome
(NPDES) Block Grant Program Program
REVENUES:

Franchise tax -$ -$ -$ -$ Other taxes 986,502 - - - Intergovernmental revenues - 758,295 - - Licenses, permits, and fees - - - - Fines and forfeitures - - - - Special assessments - - - - Service fees - - - - Use of money and property 1,851 1,226 899 5,737 Other revenues 12,499 - - - Total Revenues 1,000,852 759,521 899 5,737 EXPENDITURES:

Current:

General government - - - - Finance and services - - - - Community services - 583,673 - 25,130 Public safety - 213,821 - - Public works - administration 427,841 - - - Public works - streets 1,033,389 - - - Capital outlay and improvements - - - - Debt service:

Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 1,461,230 797,494 - 25,130

REVENUES OVER (UNDER)
EXPENDITURES (460,378) (37,973) 899 (19,393)

OTHER FINANCING SOURCES (USES):

Transfers in 160,000 - - - Transfers out (14,644) (2,060) - - Total other financing sources (uses) 145,356 (2,060) - - Net change in fund balances (315,022) (40,033) 899 (19,393) FUND BALANCES (DEFICITS):

Beginning of Year 501,207 179,945 47,789 329,620 End of Year 186,185$ 139,912$ 48,688$ 310,227$ Special Revenue
156
336
California
Energy Public Safety Park Cops
Conservation San Marco Solid Vista Del Mar Services Maintenance Hiring Program CFD 2004-01 Waste CFD 2005-2 CFD 2005-1 CFD 2007-1 Recovery -$ -$ -$ -$ -$ -$ -$ - - - 405,159 943,944 - - - - - - - 36,373 75,130 - - 757,056 - - - - - - - - - - - - 1,357,830 - - - 151,739 - - - 7,111 - - - - - 5,722 17,086 349 6,120 6,096 - - - 29,178 - - - - - 1,363,552 810,431 405,508 950,064 194,208 75,130 - - - - - - - - - - - - - - - - 517,739 - - - - - 5,757 220,698 690 979 - - - - - - - - - - - - - - 66,029 - - - - - - - - - - - - - - - - 5,336 - - 5,713 5,781 - - 11,093 738,437 690 6,692 71,810 - - 1,352,459 71,994 404,818 943,372 122,398 75,130 - - - - - - - - (1,333,750) (135,617) (399,000) (952,500) (936) (75,130) - (1,333,750) (135,617) (399,000) (952,500) (936) (75,130) - 18,709 (63,623) 5,818 (9,128) 121,462 - 7 242,338 1,120,491 22,887 249,630 280,647 -
7$ 261,047$ 1,056,868$ 28,705$ 240,502$ 402,109$ -$ (Continued)
Special Revenue
157
337
City of Pittsburg
Combining Statements of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the year ended June 30, 2023
Pittsburg Public, Education
Arts & Hillview Jr. and Railroad Avenue
Community High Athletic Government Fees Specific Area
Foundation Field (PEG) Plan
REVENUES:

Franchise tax -$ -$ 141,195$ -$ Other taxes - - - - Intergovernmental revenues - - - - Licenses, permits, and fees - - - - Fines and forfeitures - - - - Special assessments - - - 115,070 Service fees 6,697 - - - Use of money and property 28,962 7,917 11,284 721 Other revenues 861,465 - - - Total Revenues 897,124 7,917 152,479 115,791 EXPENDITURES:

Current:

General government - - - - Finance and services - - - - Community services 585,492 - 82,817 - Public safety - - - - Public works - administration - - - -
Public works - streets - - - - Capital outlay and improvements - - - - Debt service:

Principal retirement 73,746 - - - Interest and fiscal charges 24,605 - - 67,380 Total Expenditures 683,843 - 82,817 67,380

REVENUES OVER (UNDER)
EXPENDITURES 213,281 7,917 69,662 48,411

OTHER FINANCING SOURCES (USES):

Transfers in - - - - Transfers out - - (35,000) - Total other financing sources (uses) - - (35,000) - Net change in fund balances 213,281 7,917 34,662 48,411 FUND BALANCES (DEFICITS):

Beginning of Year 376,593 420,622 596,444 (3,105,049) End of Year 589,874$ 428,539$ 631,106$ (3,056,638)$ Special Revenue
158
338
Debt Service
Project Marina Dredging Tuscany
Amenities Fire District Golf US EPA & Infrastructure Meadows Pension Management CFD 2017-01 Course Grants Improvement CFD 2021-1 Obligations -$ -$ -$ -$ -$ -$ -$ - - - 63,053 - - - - - - 249,997 - - - - - - - - - - - - - - - - - 56,384 33,531 - - - - - - - - - - - 4,544,428 3,060 1,077 - 49,493 5,794 446 94,449 - - - - - - - 59,444 34,608 - 362,543 5,794 446 4,638,877 - - - - - - - - - - - - - 290,179 4,471 4,085 809 312,025 - - - - - - - - - - - - - - 2,263 - - - - - - - - - - - - - - - - - - - - - - 2,555,000 - - - - - - 1,674,673 4,471 4,085 809 312,025 2,263 - 4,519,852 54,973 30,523 (809) 50,518 3,531 446 119,025 - - - - - - - (60,000) - - - (539,751) - - (60,000) - - - (539,751) - - (5,027) 30,523 (809) 50,518 (536,220) 446 119,025 172,352 40,139 (375,754) 2,671,837 775,928 23,731 3,256,843 167,325$ 70,662$ (376,563)$ 2,722,355$ 239,708$ 24,177$ 3,375,868$ (Continued)
Special Revenue
159
339
City of Pittsburg
Combining Statements of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds
For the year ended June 30, 2023
Kirker Creek
Inclusionary Traffic Impact Drainage Traffic
Housing Fair Share Fees Mitigation
REVENUES:

Franchise tax -$ -$ -$ -$ Other taxes - - - - Intergovernmental revenues - - - - Licenses, permits, and fees - - - 1,153,794 Fines and forfeitures - - - - Special assessments - - - - Service fees - - - - Use of money and property 731 9,920 6,838 107,845 Other revenues - - - 31,241 Total Revenues 731 9,920 6,838 1,292,880 EXPENDITURES:

Current:

General government - - - - Finance and services - - - - Community services - - - - Public safety - - - - Public works - administration ----
Public works - streets - - - - Capital outlay and improvements - - - 99,650 Debt service:

Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures - - - 99,650

REVENUES OVER (UNDER)
EXPENDITURES 731 9,920 6,838 1,193,230

OTHER FINANCING SOURCES (USES):

Transfers in - - - - Transfers out - - - - Total other financing sources (uses) - - - - Net change in fund balances 731 9,920 6,838 1,193,230 FUND BALANCES (DEFICITS):

Beginning of Year 418,837 527,032 363,307 5,207,248
End of Year 419,568$ 536,952$ 370,145$ 6,400,478$ Capital Projects
160
340

Regional Infrastructure Community Bailey
Capital Park Traffic Repair & Capital Road
Improvement Dedication Mitigation Replacement Improvement Maintenance -$ -$ -$ -$ -$ -$ - - - - - - 210,115 - - - - - - 693,038 - - - 38,704 - - - - - - - - - - - - - - - - - - 136,602 47,802 75,872 562 7,378 34,420 150,000 - - - - - 496,717 740,840 75,872 562 7,378 73,124 - - - - - - - - - - - - - - - - 1,490 - - - - - - - - ---- - - - - - - - 3,078,085 949,600 - - - - - - - - - - - - - - - - 3,078,085 949,600 - - 1,490 - (2,581,368) (208,760) 75,872 562 5,888 73,124 10,142,813 - - - 75,000 - (413,137) - - - - - 9,729,676 - - - 75,000 - 7,148,308 (208,760) 75,872 562 80,888 73,124 4,142,661 2,429,712 3,556,304 29,851 331,772 1,804,894
11,290,969$ 2,220,952$ 3,632,176$ 30,413$ 412,660$ 1,878,018$ (Continued)
Capital Projects
161
341
City of Pittsburg
Combining Statements of Revenues, Expenditures and Changes in Fund Balance Non-Major Governmental Funds
For the year ended June 30, 2023
Total
Gas Tax-Road Regional Non-Major
Maintenance & Freeway Governmental
Rehabilitation Security Fee Funds
REVENUES:

Franchise tax -$ -$ 141,195$ Other taxes - - 5,538,194 Intergovernmental revenues 1,796,160 - 3,119,633 Licenses, permits, and fees - - 2,642,592 Fines and forfeitures - - 8,831 Special assessments - - 4,749,350 Service fees - - 4,568,236 Use of money and property 51,640 - 890,248 Other revenues - 74,760 1,288,092 Total Revenues 1,847,800 74,760 22,946,371 EXPENDITURES:

Current:

General government - - 131,493 Finance and services - - 290,179 Community services - - 2,673,609 Public safety - 4,005 501,997 Public works - administration - - 430,104 Public works - streets 398,164 - 7,293,108 Capital outlay and improvements - - 4,220,564 Debt service:

Principal retirement - - 2,628,746 Interest and fiscal charges - - 1,783,488 Total Expenditures 398,164 4,005 19,953,288

REVENUES OVER (UNDER)
EXPENDITURES 1,449,636 70,755 2,993,083

OTHER FINANCING SOURCES (USES):

Transfers in 100,000 - 14,004,299 Transfers out (200,000) - (6,808,960) Total other financing sources (uses) (100,000) - 7,195,339 Net change in fund balances 1,349,636 70,755 10,188,422 FUND BALANCES (DEFICITS):

Beginning of Year 1,978,983 (205,121) 36,916,603 End of Year 3,328,619$ (134,366)$ 47,105,025$ Capital Projects
162
342

CITY OF PITTSBURG
Annual Comprehensive Financial Report
June 30, 2023
343
City of Pittsburg
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Non-Major Governmental Funds
For the year ended June 30, 2023

SMALL CITIES GRANTS GAS TAX
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES:

Franchise tax -$ -$ -$ -$ -$ -$ Other taxes - - - 1,807,500 1,927,022 119,522 Intergovernmental revenues - - - - (47,029) (47,029) Licenses, permits, and fees - - - - - - Fines and forfeitures - - - - - - Special assessments - - - - - - Service fees - - - - - - Use of money and property - 1,386 1,386 6,500 22,171 15,671 Other revenues - 53,104 53,104 - - - Total revenues - 54,490 54,490 1,814,000 1,902,164 88,164 EXPENDITURES:

Current:

General government - - - - - - Finance and services - - - - - - Community services 36,565 225 36,340 - - - Public safety - - - - - - Public works - administration - - - - - - Public works - streets - - - 786,381 102,208 684,173 Capital outlay and improvements - - - - - - Debt service:

Principal retirement - - - - - - Interest and fiscal charges - - - - - - Total expenditures 36,565 225 36,340 786,381 102,208 684,173

REVENUES OVER (UNDER)
EXPENDITURES (36,565) 54,265 90,830 1,027,619 1,799,956 772,337

OTHER FINANCING SOURCES (USES):

Transfers in 10,000 - (10,000) 260,000 260,000 - Transfers out - - - (1,300,000) (1,300,000) - Total other financing sources (uses) 10,000 - (10,000) (1,040,000) (1,040,000) - Net change in fund balances (26,565)$ 54,265 80,830$ (12,381)$ 759,956 772,337$ FUND BALANCES (DEFICITS):

Beginning of year 30,342 930,918
End of year 84,607$ 1,690,874$

SPECIAL REVENUE
164
344

LIGHTING AND LANDSCAPING

MEASURE J TAX LIGHTING AND LANDSCAPE
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) -$ -$ -$ -$ -$ -$ -$ -$ -$
1,069,305 - (1,069,305) - - - - - -
4,575,784 (38,006) (4,613,790) - - - - - - - - - - - - - - -
- - - - - - - - -
- - - 3,000,837 3,000,837 - 33,959 33,959 - - 10,000 10,000 - - - - - -
350 159 (191) 2,600 11,591 8,991 480 1,436 956 182,610 61,604 (121,006) 4,556 14,241 9,685 - - - 5,828,049 33,757 (5,794,292) 3,007,993 3,026,669 18,676 34,439 35,395 956 - - - 174,867 131,493 43,374 - - - - - - - - - - - -
409,463 57,793 351,670 - - - - - - - - - - - - - - -
- - - - - - - - -
- - - 5,930,507 5,658,104 272,403 42,223 35,214 7,009 4,608,253 93,229 4,515,024 - - - - - - - - - - - - - - -
- - - - - - - - -
5,017,716 151,022 4,866,694 6,105,374 5,789,597 315,777 42,223 35,214 7,009 810,333 (117,265) (927,598) (3,097,381) (2,762,928) 334,453 (7,784) 181 7,965 - - - 2,754,986 2,754,986 - 1,500 1,500 - (860,000) (785,000) 75,000 (47,004) (47,004) - - - - (860,000) (785,000) 75,000 2,707,982 2,707,982 - 1,500 1,500 - (49,667)$ (902,265) (852,598)$ (389,399)$ (54,946) 334,453$ (6,284)$ 1,681 7,965$ 377,834 784,256 75,314
(524,431)$ 729,310$ 76,995$
(Continued)

SPECIAL REVENUE

OAK HILLS
165
345
City of Pittsburg
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Non-Major Governmental Funds
For the year ended June 30, 2023

SPECIAL REVENUE

ASSETS SEIZURE MARINA VISTA FIELD REPLACEMENT
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES:

Franchise tax -$ -$ -$ -$ -$ -$ Other taxes - - - - - - Intergovernmental revenues - - - - - - Licenses, permits, and fees - - - - - - Fines and forfeitures - 8,831 8,831 - - - Special assessments - - - - - - Service fees - - - - - - Use of money and property - 21 21 2,500 5,933 3,433 Other revenues - - - - - - Total revenues - 8,852 8,852 2,500 5,933 3,433 EXPENDITURES:

Current:

General government - - - - - - Finance and services - - - - - - Community services - - - - - - Public safety - 823 (823) - - - Public works - administration - - - - - - Public works - streets - - - - - - Capital outlay and improvements - - - - - - Debt service:

Principal retirement - - - - - - Interest and fiscal charges - - - - - - Total expenditures - 823 (823) - - -

REVENUES OVER (UNDER)
EXPENDITURES - 8,029 8,029 2,500 5,933 3,433

OTHER FINANCING SOURCES (USES):

Transfers in - - - - - - Transfers out - - - - - - Total other financing sources (uses) - - - - - - Net change in fund balances -$ 8,029 8,029$ 2,500$ 5,933 3,433$ FUND BALANCES (DEFICITS):

Beginning of year 68,781 315,220
End of year 76,810$ 321,153$
166
346

SPECIAL REVENUE

LOCAL LAW SOUTHWEST PITTSBURG SOUTHWEST PITTSBURG

ENFORCEMENT BLOCK GRANT GHAD II GHAD II ADMIN
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) -$ -$ -$ -$ -$ -$ -$ -$ -$ - - - 1,212,514 1,212,514 - - - - 139,842 78,598 (61,244) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 653 653 31,000 114,251 83,251 1,000 4,748 3,748 - - - - - - - - - 139,842 79,251 (60,591) 1,243,514 1,326,765 83,251 1,000 4,748 3,748 - - - - - - - - - - - - - - - - - - 64,938 29,446 35,492 408,262 169,412 238,850 386,422 299,002 87,420 59,049 55,224 3,825 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 123,987 84,670 39,317 408,262 169,412 238,850 386,422 299,002 87,420 15,855 (5,419) (21,274) 835,252 1,157,353 322,101 (385,422) (294,254) 91,168 - - - - - - 510,000 510,000 - - - - (510,000) (510,000) - (5,431) (5,431) - - - - (510,000) (510,000) - 504,569 504,569 - 15,855$ (5,419) (21,274)$ 325,252$ 647,353 322,101$ 119,147$ 210,315 91,168$ 26,033 5,787,611 106,567
20,614$ 6,434,964$ 316,882$
(Continued)
167
347
City of Pittsburg
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Non-Major Governmental Funds
For the year ended June 30, 2023

SPECIAL REVENUE

STORM WATER HUD COMMUNITY DEVELOPMENT

UTILITY NPDES BLOCK GRANT
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES:

Franchise tax -$ -$ -$ -$ -$ -$ Other taxes 1,260,260 986,502 (273,758) - - - Intergovernmental revenues - - - 841,110 758,295 (82,815) Licenses, permits, and fees - - - - - - Fines and forfeitures - - - - - - Special assessments - - - - - - Service fees - - - - - - Use of money and property 1,500 1,851 351 - 1,226 1,226 Other revenues 2,022 12,499 10,477 - - - Total revenues 1,263,782 1,000,852 (262,930) 841,110 759,521 (81,589) EXPENDITURES:

Current:

General government 15,950 - 15,950 - - - Finance and services - - - - - - Community services - - - 416,586 583,673 (167,087) Public safety - - - 589,552 213,821 375,731 Public works - administration 425,360 427,841 (2,481) - - - Public works - streets 1,190,238 1,033,389 156,849 - - - Capital outlay and improvements - - - - - - Debt service:

Principal retirement - - - - - - Interest and fiscal charges - - - - - - Total expenditures 1,631,548 1,461,230 170,318 1,006,138 797,494 208,644

REVENUES OVER (UNDER)
EXPENDITURES (367,766) (460,378) (92,612) (165,028) (37,973) 127,055

OTHER FINANCING SOURCES (USES):

Transfers in 160,000 160,000 - 10,000 - (10,000) Transfers out (14,644) (14,644) - (12,060) (2,060) 10,000 Total other financing sources (uses) 145,356 145,356 - (2,060) (2,060) - Net change in fund balances (222,410)$ (315,022) (92,612)$ (167,088)$ (40,033) 127,055$ FUND BALANCES (DEFICITS):

Beginning of year 501,207 179,945
End of year 186,185$ 139,912$
168
348

SPECIAL REVENUE

NSP NEIGHBORHOOD CALIFORNIA ENERGY

STABILIZATION PROGRAM CALHOME PROGRAM CONSERVATION PROGRAM Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) -$ -$ -$ -$ -$ -$ - $ -$ -$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 350 899 549 2,500 5,737 3,237 - - - - - - 100,000 - (100,000) - - - 350 899 549 102,500 5,737 (96,763) - - - - - - - - - - - - - - - - - - - - - - - - 104,382 25,130 79,252 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 104,382 25,130 79,252 - - - 350 899 549 (1,882) (19,393) (17,511) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 350$ 899 549$ (1,882)$ (19,393) (17,511)$ -$ - -$ 47,789 329,620 7
48,688$ 310,227$ 7$
(Continued)
169
349
City of Pittsburg
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Non-Major Governmental Funds
For the year ended June 30, 2023

SPECIAL REVENUE
SAN MARCO CFD 2004-1 SOLID WASTE
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES:

Franchise tax -$ -$ -$ -$ -$ -$ Other taxes - - - - - - Intergovernmental revenues - - - - - - Licenses, permits, and fees - - - 710,000 757,056 47,056 Fines and forfeitures - - - - - - Special assessments 1,299,168 1,357,830 58,662 - - - Service fees - - - 21,000 7,111 (13,889) Use of money and property 950 5,722 4,772 5,500 17,086 11,586 Other revenues - - - - 29,178 29,178 Total revenues 1,300,118 1,363,552 63,434 736,500 810,431 73,931 EXPENDITURES:

Current:

General government - - - - - - Finance and services - - - - - - Community services - - - 714,866 517,739 197,127 Public safety - 5,757 (5,757) 248,121 220,698 27,423 Public works - administration - - - - - - Public works - streets - - - - - - Capital outlay and improvements - - - - - - Debt service:

Principal retirement - - - - - - Interest and fiscal charges - 5,336 (5,336) - - - Total expenditures - 11,093 (11,093) 962,987 738,437 224,550

REVENUES OVER (UNDER)
EXPENDITURES 1,300,118 1,352,459 52,341 (226,487) 71,994 298,481

OTHER FINANCING SOURCES (USES):

Transfers in - - - - - - Transfers out (1,333,750) (1,333,750) - (135,617) (135,617) - Total other financing sources (uses) (1,333,750) (1,333,750) - (135,617) (135,617) - Net change in fund balances (33,632)$ 18,709 52,341$ (362,104)$ (63,623) 298,481$ FUND BALANCES (DEFICITS):

Beginning of year 242,338 1,120,491
End of year 261,047$ 1,056,868$
170
350

SPECIAL REVENUE
PARK MAINTENANCE CFD 2007-1
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) -$ -$ -$ -$ -$ -$ -$ -$ -$ 405,159 405,159 - 856,342 943,944 87,602 - - - - - - - - - 32,000 36,373 4,373 - - - - - - - - - - - - - - - - - - - - - - - - 151,739 151,739 - - - - - - - - - - 190 349 159 800 6,120 5,320 1,000 6,096 5,096 - - - - - - - - - 405,349 405,508 159 857,142 950,064 92,922 184,739 194,208 9,469 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 690 (690) - 979 (979) - - - - - - - - - - - - - - - - - - 67,026 66,029 997 - - - - - - - - - - - - - - - - - - - - - 5,713 (5,713) 6,000 5,781 219 - 690 (690) - 6,692 (6,692) 73,026 71,810 1,216 405,349 404,818 (531) 857,142 943,372 86,230 111,713 122,398 10,685 - - - - - - - - - (399,000) (399,000) - (952,500) (952,500) - (936) (936) - (399,000) (399,000) - (952,500) (952,500) - (936) (936) - 6,349$ 5,818 (531)$ (95,358)$ (9,128) 86,230$ 110,777$ 121,462 10,685$ 22,887 249,630 280,647
28,705$ 240,502$ 402,109$
(Continued)
PUBLIC SAFETY CFD 2005-1VISTA DEL MAR CFD 2005-2
171
351
City of Pittsburg
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Non-Major Governmental Funds
For the year ended June 30, 2023

SPECIAL REVENUE

COPS HIRING RECOVERY COMMUNITY FOUNDATION
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES:

Franchise tax - $ - $ -$ -$ -$ -$ Other taxes - - - - - - Intergovernmental revenues - 75,130 75,130 - - - Licenses, permits, and fees - - - - - - Fines and forfeitures - - - 600 - (600) Special assessments - - - - - - Service fees - - - 19,050 6,697 (12,353) Use of money and property - - - 12,116 28,962 16,846 Other revenues - - - 801,270 861,465 60,195 Total revenues - 75,130 75,130 833,036 897,124 64,088 EXPENDITURES:

Current:

General government - - - - - - Finance and services - - - - - - Community services - - - 557,458 585,492 (28,034) Public safety - - - - - - Public works - administration - - - - - - Public works - streets - - - - - - Capital outlay and improvements - - - - - - Debt service:

Principal retirement - - - 73,746 73,746 - Interest and fiscal charges - - - 24,605 24,605 - Total expenditures - - - 655,809 683,843 (28,034)

REVENUES OVER (UNDER)
EXPENDITURES - 75,130 75,130 177,227 213,281 36,054

OTHER FINANCING SOURCES (USES):

Transfers in - - - - - - Transfers out - (75,130) (75,130) - - - Total other financing sources (uses) - (75,130) (75,130) - - - Net change in fund balances -$ - -$ 177, 227$ 213,281 36,054$ FUND BALANCES (DEFICITS):

Beginning of year - 376,593
End of year - $ 589,874$

PITTSBURG ARTS &
172
352

SPECIAL REVENUE

RAILROAD AVENUE

ATHLETIC FIELD GOVERNMENT FEES (PEG) SPECIFIC AREA PLAN Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) -$ -$ -$ 150,000$ 141,195$ (8,805)$ -$ -$ -$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 115,070 115,070 - - - - - - - - - 3,600 7,917 4,317 6,000 11,284 5,284 - 721 721 - - - - - - - - - 3,600 7,917 4,317 156,000 152,479 (3,521) - 115,791 115,791 - - - - - - - - - - - - - - - - - - - - - 183,443 82,817 100,626 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 67,380 (67,380) - - - 183,443 82,817 100,626 - 67,380 (67,380) 3,600 7,917 4,317 (27,443) 69,662 97,105 - 48,411 48,411 - - - - - - - - - - - - (35,000) (35,000) - - - - - - - (35,000) (35,000) - - - - 3,600$ 7,917 4,317$ (62,443)$ 34,662 97,105$ -$ 48,411 48,411$ 420,622 596,444 (3,105,049)
428,539$ 631,106$ (3,056,638)$
(Continued)
PUBLIC, EDUCATION, ANDHILLVIEW JR. HIGH
173
353
City of Pittsburg
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Non-Major Governmental Funds
For the year ended June 30, 2023

SPECIAL REVENUE
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES:

Franchise tax -$ -$ -$ -$ -$ -$ Other taxes - - - - - - Intergovernmental revenues - - - - - - Licenses, permits, and fees - - - - - - Fines and forfeitures - - - - - - Special assessments 56,384 56,384 - 27,112 33,531 6,419 Service fees - - - - - - Use of money and property 960 3,060 2,100 130 1,077 947 Other revenues - - - - - - Total revenues 57,344 59,444 2,100 27,242 34,608 7,366 EXPENDITURES:

Current:

General government - - - - - - Finance and services - - - - - - Community services - 4,471 (4,471) - - - Public safety - - - - 4,085 (4,085) Public works - administration - - - - - - Public works - streets - - - - - - Capital outlay and improvements - - - - - - Debt service:

Principal retirement - - - - - - Interest and fiscal charges - - - - - - Total expenditures - 4,471 (4,471) - 4,085 (4,085)

REVENUES OVER (UNDER)
EXPENDITURES 57,344 54,973 (2,371) 27,242 30,523 3,281

OTHER FINANCING SOURCES (USES):

Transfers in - - - - - - Transfers out (60,000) (60,000) - - - - Total other financing sources (uses) (60,000) (60,000) - - - - Net change in fund balances (2,656)$ (5,027) (2,371)$ 27,242$ 30,523 3,281$ FUND BALANCES (DEFICITS):

Beginning of year 172,352 40,139
End of year 167,325$ 70,662$
PROJECT AMENITIES MANAGEMENT FIRE DISTRICT CFD 2017-01
174
354

SPECIAL REVENUE

MARINA DREDGING

GOLF COURSE INFRASTRUCTURE & IMPROVEMENT
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) -$ -$ -$ -$ -$ -$ -$ - $ - $ - - - 112,771 63,053 (49,718) - - - - - - 807,092 249,997 (557,095) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 7,000 49,493 42,493 - 5,794 5,794 - - - - - - - - - - - - 926,863 362,543 (564,320) - 5,794 5,794 - - - - - - - - - - - - - - - - - - - 809 (809) 1,481,137 312,025 1,169,112 102,968 2,263 100,705 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 809 (809) 1,481,137 312,025 1,169,112 102,968 2,263 100,705 - (809) (809) (554,274) 50,518 604,792 (102,968) 3,531 106,499 755 - (755) - - - - - - - - - - - - (539,751) (539,751) - 755 - (755) - - - (539,751) (539,751) - 755$ (809) (1,564)$ (554,274)$ 50,518 604,792$ (642,719)$ (536,220) 106,499$ (375,754) 2,671,837 775,928
(376,563)$ 2,722,355$ 239,708 $
(Continued)

US EPA GRANT
175
355
City of Pittsburg
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Non-Major Governmental Funds
For the year ended June 30, 2023

SPECIAL REVENUE
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES:

Franchise tax -$ -$ -$ -$ -$ -$ Other taxes - - - - - - Intergovernmental revenues - - - - - - Licenses, permits, and fees - - - - - - Fines and forfeitures - - - - - - Special assessments - - - - - - Service fees - - - 4,522,124 4,544,428 22,304 Use of money and property 270 446 176 - 94,449 94,449 Other revenues - - - - - - Total revenues 270 446 176 4,522,124 4,638,877 116,753 EXPENDITURES:

Current:

General government - - - - - - Finance and services - - - 292,349 290,179 2,170 Community services - - - - - - Public safety - - - - - - Public works - administration - - - - - - Public works - streets - - - - - - Capital outlay and improvements - - - - - - Debt service:

Principal retirement - - - 2,555,000 2,555,000 - Interest and fiscal charges - - - 1,674,673 1,674,673 - Total expenditures - - - 4,522,022 4,519,852 2,170

REVENUES OVER (UNDER)
EXPENDITURES 270 446 176 102 119,025 118,923

OTHER FINANCING SOURCES (USES):

Transfers in - - - - - - Transfers out - - - - - - Total other financing sources (uses) - - - - - - Net change in fund balances 270$ 446 176$ 102$ 119,025 118,923$ FUND BALANCES (DEFICITS):

Beginning of year 23,731 3,256,843
End of year 24,177$ 3,375,868$

PENSION OBLIGATIONS

TUSCANY
MEADOWS CFD 2021-1

DEBT SERVICE FUND
176
356

KIRKER CREEK DRAINAGE FEES
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) - $ -$ -$ - $ -$ -$ -$ -$ -$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 250 731 481 2,900 9,920 7,020 1,800 6,838 5,038 - - - - - - - - - 250 731 481 2,900 9,920 7,020 1,800 6,838 5,038 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 250 731 481 2,900 9,920 7,020 1,800 6,838 5,038 - - - - - - - - - - - - - - - - - - - - - - - - - - - 250$ 731 481$ 2,900$ 9,920 7,020$ 1,800$ 6,838 5,038$ 418,837 527,032 363,307
419,568$ 536,952$ 370,145$
(Continued)

INCLUSIONARY HOUSING

CAPITAL PROJECTS

TRAFFIC IMPACT FAIR SHARE
177
357
City of Pittsburg
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Non-Major Governmental Funds
For the year ended June 30, 2023

TRAFFIC MITIGATION CAPITAL IMPROVEMENT
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES:

Franchise tax -$ -$ -$ -$ -$ -$ Other taxes - - - - - - Intergovernmental revenues - - - 11,096,282 210,115 (10,886,167) Licenses, permits, and fees 833,485 1,153,794 320,309 - - - Fines and forfeitures - - - - - - Special assessments - - - - - - Service fees - - - - - - Use of money and property 13,000 107,845 94,845 6,000 136,602 130,602 Other revenues 3,944,019 31,241 (3,912,778) 684,437 150,000 (534,437) Total revenues 4,790,504 1,292,880 (3,497,624) 11,786,719 496,717 (11,290,002) EXPENDITURES:

Current:

General government - - - - - - Finance and services - - - - - - Community services - - - - - - Public safety - - - - - - Public works - administration - - - - - - Public works - streets - - - - - - Capital outlay and improvements 3,943,003 99,650 3,843,353 24,881,442 3,078,085 21,803,357 Debt service:

Principal retirement - - - - - - Interest and fiscal charges - - - - - - Total expenditures 3,943,003 99,650 3,843,353 24,881,442 3,078,085 21,803,357

REVENUES OVER (UNDER)
EXPENDITURES 847,501 1,193,230 345,729 (13,094,723) (2,581,368) 10,513,355

OTHER FINANCING SOURCES (USES):

Transfers in - - - 9,729,676 10,142,813 413,137 Transfers out - - - - (413,137) (413,137) Total other financing sources (uses) - - - 9,729,676 9,729,676 - Net change in fund balances 847,501$ 1,193,230 345,729$ (3,365,047)$ 7,148,308 10,513,355$ FUND BALANCES (DEFICITS):

Beginning of year 5,207,248 4,142,661
End of year 6,400,478$ 11,290,969$

CAPITAL PROJECTS
178
358

PARK DEDICATION REGIONAL TRAFFIC MITIGATION REPAIR & REPLACEMENT Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) -$ -$ -$ -$ -$ -$ -$ -$ -$ - - - - - - - - - - - - - - - - - - 753,286 693,038 (60,248) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 7,600 47,802 40,202 2,300 75,872 73,572 70 562 492 - - - - - - - - - 760,886 740,840 (20,046) 2,300 75,872 73,572 70 562 492 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 4,307,726 949,600 3,358,126 - - - - - - - - - - - - - - - - - - - - - - - - 4,307,726 949,600 3,358,126 - - - - - - (3,546,840) (208,760) 3,338,080 2,300 75,872 73,572 70 562 492 - - - - - - - - - - - - - - - - - - - - - - - - - - - (3,546,840)$ (208,760) 3,338,080$ 2,300$ 75,872 73,572$ 70$ 562 492$ 2,429,712 3,556,304 29,851
2,220,952$ 3,632,176$ 30,413$
(Continued)

CAPITAL PROJECTS

INFRASTRUCTURE
179
359
City of Pittsburg
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Non-Major Governmental Funds
For the year ended June 30, 2023

CAPITAL IMPROVEMENT BAILEY ROAD MAINTENANCE
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES:

Franchise tax -$ -$ -$ -$ -$ -$ Other taxes - - - - - - Intergovernmental revenues - - - - - - Licenses, permits, and fees - - - 100,000 38,704 (61,296) Fines and forfeitures - - - - - - Special assessments - - - - - - Service fees - - - - - - Use of money and property 1,300 7,378 6,078 7,500 34,420 26,920 Other revenues - - - - - - Total revenues 1,300 7,378 6,078 107,500 73,124 (34,376) EXPENDITURES:

Current:

General government - - - - - - Finance and services - - - - - - Community services 288,985 1,490 287,495 - - - Public safety - - - - - - Public works - administration - - - - - - Public works - streets - - - - - - Capital outlay and improvements - - - - - - Debt service:

Principal retirement - - - - - - Interest and fiscal charges - - - - - - Total expenditures 288,985 1,490 287,495 - - -

REVENUES OVER (UNDER)
EXPENDITURES (287,685) 5,888 293,573 107,500 73,124 (34,376)

OTHER FINANCING SOURCES (USES):

Transfers in 155,000 75,000 (80,000) - - - Transfers out (5,000) - 5,000 - - - Total other financing sources (uses) 150,000 75,000 (75,000) - - - Net change in fund balances (137,685)$ 80,888 218,573$ 107,500$ 73,124 (34,376)$ FUND BALANCES (DEFICITS):

Beginning of year 331,772 1,804,894
End of year 412,660$ 1,878,018$

CAPITAL PROJECTS

COMMUNITY
180
360

MAINTENANCE AND REHABILITATION
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
-$ -$ -$ -$ -$ -$ - - - - - - 1,562,000 1,683,529 121,529 - - - - - - - - - - - - - - - - - - - - - - - - - - - 8,000 51,640 43,640 - - - 1,451,303 112,631 (1,338,672) 418,323 74,760 (343,563) 3,021,303 1,847,800 (1,173,503) 418,323 74,760 (343,563) - - - - - - - - - - - - - - - - - - - - - 152,639 4,005 148,634 - - - - - - 4,313,156 398,164 3,914,992 - - - - - - - - - - - - - - - - - - - - - 4,313,156 398,164 3,914,992 152,639 4,005 148,634 (1,291,853) 1,449,636 2,741,489 265,684 70,755 (194,929) 100,000 100,000 - - - - (200,000) (200,000) - - - - (100,000) (100,000) - - - - (1,391,853)$ 1,349,636 2,741,489$ 265,684$ 70,755 (194,929)$ 1,978,983 (205,121)
3,328,619$ (134,366)$

CAPITAL PROJECTS

GAS TAX-ROAD

REGIONAL FREEWAY SECURITY FEE
181
361

CITY OF PITTSBURG
Annual Comprehensive Financial Report
June 30, 2023
362

INTERNAL SERVICE FUNDS

Internal service funds are used to account for th e financing of goods or services provided by one department or agency to other departments or agen cies of the government and to other government units, on a reimbursement basis. There are seven funds as follows:

Building Maintenance Fund – Used to account for the cost of maintaining all City governmental buildings.

Insurance Fund – Used to account for revenues from char ges to operating departments sufficient to provide adequate reserve for future claims.

Information/Communication Services Fund – Used to account for the co st of operating, maintaining and replacing a data processing system. Rental rates charged to the using departments include operating cost and equipment depreciation.

Fringe Benefits Fund – Used to allocate fringe costs to various departments.

Other Post-Employment Benefits (OPEB) Fund – Used to reduce unfunded OPEB liabilities and to pay the City’s portion of current year retiree medical expenses.

115 Pension Trust Reserve Fund – Used to accumulate funds to pay down CalPERS Unfunded Accrued Liability.

183
363
City of Pittsburg
Combining Statement of Net Position
Internal Service Funds
June 30, 2023
Fleet Building
Maintenance Maintenance Insurance
ASSETS
Current assets:

Cash and investments 2,966,051$ 943,424$ 1,082,415$ Restricted cash and investments - - -
Receivables:

Accounts 13,912 5,478 -
Inventory 16,170 15,725 -
Prepaid items (820) 191 -
Total current assets 2,995,313 964,818 1,082,415
Noncurrent assets:

Capital assets:

Depreciable assets, net 1,589,353 410,538 -
Total noncurrent assets 1,589,353 410,538 -
Total Assets 4,584,666 1,375,356 1,082,415

LIABILITIES
Current liabilities:

Accounts payable 95,010 109,166 8,651
Salaries payable - - -
Claims and judgments payable - due within one year - - 109,700 Compensated absences - due within one year 42,192 44,812 - Long-term-debt - due within one year 294,907 21,329 - Due to other funds - - -
Advance from other funds - 79,908 -
Total current liabilities 432,109 255,215 118,351
Noncurrent liabilities:

Compensated absences - due in more than one year 14,064 14,938 - Long-term debt - due in more than one year 91,970 81,769 - Total noncurrent liabilities 106,034 96,707 -
Total Liabilities 538,143 351,922 118,351

NET POSITION
Net investment in capital assets 1,202,476 307,440 -
Restricted - - -
Unrestricted 2,844,047 715,994 964,064
Total Net Position 4,046,523$ 1,023,434$ 964,064$ 184
364
Other
Information / Post 115 Pension
Communication Fringe Employment Trust Reserve
Services Benefits Benefits Fund Total
1,316,339$ 1,076,281$ 330,515$ -$ 7,715,025$ - - - 2,946,493 2,946,493 - (29) - - 19,361 405,284 - - - 437,179 3,575 - - - 2,946 1,725,198 1,076,252 330,515 2,946,493 11,121,004 140,916 - - - 2,140,807 140,916 - - - 2,140,807 1,866,114 1,076,252 330,515 2,946,493 13,261,811 57,186 - 782 - 270,795 - 846,966 - (37) 846,929 - - - - 109,700 50,454 - - - 137,458 - - - - 316,236 - - - 972 972 - - - - 79,908 107,640 846,966 782 935 1,761,998 16,818 - - - 45,820 - - - - 173,739 16,818 - - - 219,559 124,458 846,966 782 935 1,981,557 140,916 - - - 1,650,832 - - - 2,945,558 2,945,558 1,600,740 229,286 329,733 - 6,683,864 1,741,656$ 229,286$ 329,733$ 2,945,558$ 11,280,254$ 185
365
City of Pittsburg
Combining Statement of Revenues, Expenses and Changes in Fund Net Position Internal Service Funds
For the Year Ended June 30, 2023
Fleet Building
Maintenance Maintenance Insurance
OPERATING REVENUES:

Charges for services 4,472,001$ 2,496,664$ 3,070,757$ Other operating revenues 67,292 19,335 - Total operating revenues 4,539,293 2,515,999 3,070,757 OPERATING EXPENSES:

Salaries and wages 309,338 411,969 - Department supplies 1,159,160 168,473 - Rentals 41,447 3,332 - Utilities 16,691 463,186 - Maintenance and operations 190,950 556,766 - Depreciation and amortization 666,026 35,439 - Insurance premiums 34,304 453,828 2,473,074 Insurance deductible 27,814 38,693 144,879 Fringe benefits 277,233 380,000 - Other operating expenses 9,696 12,522 - Total operating expenses 2,732,659 2,524,208 2,617,953 OPERATING INCOME (LOSS) 1,806,634 (8,209) 452,804 NONOPERATING REVENUES (EXPENSES):

Gain on disposal of assets 81,682 2,151 - Investment income (loss) (24,095) - - Total nonoperating revenues 57,587 2,151 -

INCOME (LOSS) BEFORE
TRANSFERS 1,864,221 (6,058) 452,804 TRANSFERS:

Transfers in - 20,000 - Transfers out (13,296) (15,917) - Transfers in (out) (13,296) 4,083 - Change in net position 1,850,925 (1,975) 452,804 NET POSITION:

Beginning of year 2,195,598 1,025,409 511,260 End of year 4,046,523$ 1,023,434$ 964,064$ 186
366
Other
Information / Post 115 Pension
Communication Fringe Employment Trust Reserve
Services Benefits Benefits Fund Total
2,005,096$ 1,506,696$ 1,905,075$ 558,057$ 16,014,346$ 31,530 631,416 - - 749,573 2,036,626 2,138,112 1,905,075 558,057 16,763,919 609,106 - - - 1,330,413 24,534 - - - 1,352,167 - - - - 44,779 - - - - 479,877 464,727 12,968 33,065 - 1,258,476 133,065 - - - 834,530 31,752 - - - 2,992,958 50,343 - - - 261,729 442,274 2,517,951 2,375,053 - 5,992,511 - - - 13,711 35,929 1,755,801 2,530,919 2,408,118 13,711 14,583,369 280,825 (392,807) (503,043) 544,346 2,180,550 - - - - 83,833 - - - 159,031 134,936 - - - 159,031 218,769 280,825 (392,807) (503,043) 703,377 2,399,319 50,000 - 500,000 - 570,000 - - - - (29,213) 50,000 - 500,000 - 540,787 330,825 (392,807) (3,043) 703,377 2,940,106 1,410,831 622,093 332,776 2,242,181 8,340,148 1,741,656$ 229,286$ 329,733$ 2,945,558$ 11,280,254$ 187
367
City of Pittsburg
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2023
Fleet Building
Maintenance Maintenance Insurance
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from interfund services provided 4,497,225$ 2,491,186$ 3,070,757$ Cash payments to suppliers for goods and services (1,449,739) (1,650,762) (2,639,524) Cash payments to employees for services (573,541) (799,571) - Other operating revenues (expenses) 67,292 19,335 -
Net cash provided (used) by operating activities 2,541,237 60,188 431,233

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Interfund receipts - - -
Interfund payments - (25,847) -
Transfers in - 20,000 -
Transfers (out) (13,296) (15,917) -
Net cash provided (used)
by noncapital financing activities (13,296) (21,764) -

CASH FLOWS FROM CAPITAL
FINANCING ACTIVITIES:

Payments made on lease (342,737) (21,329) -
Proceeds from sale of capital assets 81,682 2,152 -
Acquisition of capital assets (833,066) - -
Net cash provided (used) (1,094,121) (19,177) -
by capital financing activities
CASH FLOWS FROM INVESTING ACTIVITIES:

Interest revenue and change in market value of investments (24,095) - - Net cash provided (used) by investing activities (24,095) - - Net increase (decrease) in cash and cash equivalents 1,409,725 19,247 431,233 CASH AND CASH EQUIVALENTS:

Beginning of year 1,556,326 924,177 651,182
End of year 2,966,051$ 943,424$ 1,082,415$ 2,966,051$ 943,424$ 1,082,415$

RECONCILIATION OF OPERATING

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

Operating income (loss) 1,806,634$ (8,209)$ 452,804$ Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:

Depreciation 666,026 35,439 -
Changes in operating assets and liabilities:

Accounts receivable 25,224 (5,478) -
Prepaids 1,989 4 -
Accounts payable 28,334 46,034 (39,327)
Salaries and wages payable - - -
Compensated absences 13,030 (7,602) -
Insurance claims payable - - 17,756
Net cash provided (used) by operating activities 2,541,237$ 60,188$ 431,233$ NON-CASH TRANSACTIONS:

Retirement of capital assets -$ -$ -$
188
368
Other
Information / Post 115 Pension
Communication Fringe Employment Trust Reserve
Services Benefits Benefits Fund Total
2,005,096$ 1,506,696$ 1,905,075$ 558,057$ 16,034,092$ (582,189) - (72,494) (13,711) (6,408,419) (1,041,200) (2,216,153) (2,378,898) (19) (7,009,382) 31,530 631,416 211 - 749,784 413,237 (78,041) (546,106) 544,327 3,366,075 - - - 99 99 - - - - (25,847) 50,000 - 500,000 - 570,000 - - - - (29,213) 50,000 - 500,000 99 515,039 - - - - (364,066) - - - - 83,834 - - - - (833,066) - - - - (1,113,298) - - - 159,031 134,936 - - - 159,031 134,936 463,237 (78,041) (46,106) 703,457 2,902,752 853,102 1,154,322 376,621 2,243,036 7,758,766 1,316,339$ 1,076,281$ 330,515$ 2,946,493$ 10,661,518$ 1,316,339$ 1,076,281$ 330,515$ 280,825$ (392,807)$ (503,043)$ 544,346$ 2,180,550$ 133,065 - - - 834,530 - - 211 - 19,957 3,575 4,506 - - 10,074 (14,408) 1,543 (39,429) - (17,253) - 308,717 (3,845) (19) 304,853 10,180 - - - 15,608 - - - - 17,756 413,237$ (78,041)$ (546,106)$ 544,327$ 3,366,075$ -$ -$ -$ -$ -$ 189
369

CITY OF PITTSBURG
Annual Comprehensive Financial Report
June 30, 2023
370

CUSTODIAL FUNDS
Custodial Funds are used to report resources, not in a trust, that are held by the City for other parties outside of the City’s reporting entity.

Assessment Districts Custodial Fund accounts for the collection of pr operty taxes and the payments to bondholders.

Vista Del Mar & San Marco CFD’s Custodial Fund accounts for funds used to construct and acquire certain public improvements, consisting of roadwa
y, water and other infras tructure improvements
necessary for the development of property within the district, as well as park improvements. 191
371
City of Pittsburg
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2023
Assessment Other Impact Vista Del Mar &
Districts Fees San Marco CFD's Total
ASSETS Custodial Fund Custodial Fund Custodial Fund Custodial Funds Cash and investments 891,430$ 1,338,537$ 2,597,814$ 4,827,781$ Cash and investments held by fiscal agent 680,148 - 785,315 1,465,463 Assessment receivable 988,100 - - 988,100 Total Assets 2,559,678 1,338,537 3,383,129 7,281,344

LIABILITIES
Accounts payable 27,779 1,236,081 52 1,263,912 Deferred assessments 988,100 28,637 - 1,016,737 Total Liabilities 1,015,879 1,264,718 52 2,280,649

NET POSITION
Restricted for bondholders 1,543,799 73,819 3,383,077 5,000,695 Total Net Position 1,543,799$ 73,819$ 3,383,077$ 5,000,695$ 192
372
City of Pittsburg
Combining Statement of Changes in Fiduciary Net Position Custodial Funds
For the Year Ended June 30, 2023
Assessment Other Impact Vista Del Mar &
Districts Fees San Marco CFD's Total
ADDITIONS Custodial Fund Custodial Fund Custodial Fund Custodial Funds Property tax and special assessments 1,040,879$ -$ 2,390,653$ 3,431,532$ Use of money and property 42,172 20,334 67,878 130,384
Total Additions 1,083,051 20,334 2,458,531 3,561,916

DEDUCTIONS
General administration 65,970 - 1,539,399 1,605,369
Payment to bond holders 4,127,751 - 709,218 4,836,969 Total Deductions 4,193,721 - 2,248,617 6,442,338 Change in Net Position (3,110,670) 20,334 209,914 (2,880,422)

NET POSITION
Beginning of Year 4,654,469 53,485 3,173,163 7,881,117 End of Year 1,543,799$ 73,819$ 3,383,077$ 5,000,695$ 193
373

CITY OF PITTSBURG
Annual Comprehensive Financial Report
June 30, 2023
374
The major points of emphasis are:

Financial Trends
Revenue Capacity
Debt Capacity
Demographic and Economic Information
Operating Information
*Due to the State of California's adoption of ABx1 26 on June 28, 2011, and amended by AB1484 on June 27, 2012, which suspended all new redvelopment activities except for limited specified activities as of that date and and dissolves redevelopment agencies as of January 31, 2012, there will be large variances between the fiscal years 2010-2011 and fiscal year 2011-2012 for some of the statistical references. The City of Pittsburg has assumed the responsibiities as the Sucessor Agency to administer all post activies for the former Pittsburg Redevelopment Agency.

These schedules offer demographic and economic indications to help the ACFR reader understand the environment within which the City of Pittsburg's financial activities occur.

These schedules contain information about the City of Pittsburg's operations and resources to help the ACFR reader understand how the City's financial information relates to the services the City provides and the activities it performs.

STATISTICAL SECTION
This part of the City of Pittsburg's comprehensive annual financial report presents detailed information in a statistical format as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information is conveying about the City of Pittsburg's overall financial status.

These schedules contain trend information to help the ACFR reader understand how the City of Pittsburg's financial performance and economic status have changed over time.

These schedules contain information to help the ACFR reader evaluate factors affecting the City of Pittsburg's ability to generate its property and sales taxes and other major revenues.

These schedules present information to help the ACFR reader assess the affordability of the City of Pittsburg's current levels of outstanding debt and the City's ability to issue additional debt in the future. 195
375

CITY OF PITTSBURG
Annual Comprehensive Financial Report
June 30, 2023
376

CITY OF PITTSBURG
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
2014* 2015** 2016 2017 2018*** 2019 2020 2021 2022**** 2023***** Governmental activities
Net Investment in
Capital Assets 275,604,919$ 268,580,073$ 255,982,568$ 253,993,565$ 249,540,604$ 248,811,743$ 242,952,736$ 238,477,548$ 235,352,441$ 230,934,582$ Restricted 31,094,899 27,662,593 27, 990,550 24,280,860 21,203,698 27,518,072 35,381,734 20,474,166 24,153,450 30,664,190 Unrestricted 8,632,467 (37,752,882) (39, 107,180) (33,347,842) (34,066,754) (38,084,770) (46,713,289) (16,609,185) (10,047,468) 5,838,022 Total governmental activities net position 315,332,285$ 258,489,784$ 244,865,938$ 244,926,583$ 236,677,548$ 238,245,045$ 231,621,181$ 242,342,529$ 249,458,423$ 267,436,794$ Business-type activities
Net Investment in
Capital Assets 92,058,482$ 84,084,664$ 90,569,824$ 101,088,405$ 105,621,313$ 108,577,637$ 111,213,656$ 121,335,984$ 125,448,931$ 129,088,788$ Restricted 21,038,895 39,342,518 45, 659,407 28,553,531 25,743,990 33,305,962 34,914,919 31,637,948 33,206,836 82,586,630 Unrestricted 11,513,401 1,768,289 (6,475,018) 659,892 2,189,756 535,206 3,824,766 6, 923,141 10,154,829 (35,943,737) Total business-type activities net position 124,610,778$ 125,195,471$ 129,754,213$ 130,301,828$ 133,555,059$ 142,418,805$ 149,953,341$ 159,897,073$ 168,810,596$ 175,731,681$ Primary government
Net Investment in
Capital Assets 367,663,401$ 352,664,737$ 346,552,392$ 355,081,970$ 355,161,917$ 357,389,380$ 354,166,392$ 359,813,532$ 360,801,372$ 360,023,370$ Restricted 52,133,794 67,005,111 73, 649,957 52,834,391 46,947,688 60,824,034 70,296,653 52,112,114 57,360,286 113,250,820 Unrestricted 20,145,868 (35,984,593) (45, 582,198) (32,687,950) (31,876,998) (37,549,564) (42,888,523) (9,686,044) 107,361 (30,105,715) Total primary government net position 439,943,063$ 383,685,255$ 374,620,151$ 375,228,411$ 370,232,607$ 380,663,850$ 381,574,522$ 402,239,602$ 418,269,019$ 443,168,475$ * FY 2013-2014 Fund balances had been restated as a result of reclass of Golf Course Fund from Enterprise Fund to Special Revenue Fund. See FY 2014-15 Note 9E for details ** FY 2014-15, The City adopted GASB 68 and 71. See FY 2014-15 Note 11 for details. *** FY 2017-18, The City adopted GASB 75. See FY 2017-18 Note 12 for details. **** FY 2021-22, The City adopted GASB 87. See FY 2021-22 Note 4 for details. ***** FY 2022-23, The City adopted GASB 96. See FY 2022-23 Note 4 for details. $(100)
$-
$100
$200
$300
$400
$500
2014* 2015** 2016 2017 2018*** 20 19 2020 2021 2022 **** 2023***** Millions
Unrestricted
Restricted
Net of Related Debt
197
377

CITY OF PITTSBURG
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Expenses
Governmental Activities:

General Government 7,027,878$ 10,232,271$ 8,089,040$ 6,933,634$ 7,743,300$ 7,382,598$ 7,496,883$ 7,962,196$ 8,332,916$ 8,465,919$ Public Safety 22,683,125 24,833,843 26,746,601 25,990,472 28,241,337 30,371,957 34,581,759 32,746,859 29,208,631 34,581,128 Public Works 16,305,801 18,213,277 19,237,901 15,776,982 14,832,846 14,998,964 16,632,134 16,286,229 14,071,228 18,364,834 Community Development 18,705,444 21,998,387 23,752,847 23,263,875 25,907,831 26,927,327 26,825,797 31,619,115 33,049,148 33,336,147 Culture and Recreation 806,965 862,068 1,012,670 1,019,460 1,238,030 1,206,786 1,259,446 973,336 1,513,337 2,318,079 Interest on Long Term Debt 1,574,056 4,074,415 4,476,644 4,378,265 4,031,806 3,374,537 4,354,271 3,361,276 3,739,936 3,285,129 Total Governmental Activities Expenses 67,103,269 80,214,261 83,315,703 77,362,688 81,995,150 84,262,169 91,150,290 92,949,011 89,915,196 100,351,236 Business-Type Activities:

Water 16,513,159 17,477,524 18,552,726 25,929,659 18,728,126 18,893,219 20,348,775 21,084,939 20,438,566 24,392,880 Wastewater 2,490,191 2,264,022 2,583,101 3,176,015 3,027,448 3,175,703 2,931,682 3,019,946 3,002,251 3,403,437 Marina 2,230,133 2,352,274 2,424,083 2,471,440 2,369,801 2,484,823 2,548,501 2,783,372 2,673,031 2,859,776 Pittsburg Power* 5,659,707 6,670,282 6,597,065 6,569,528 6,947,359 7,502,071 7,701,669 8,492,592 9,088,956 12,236,327 Other-Non-Major Enterprise Funds 821,344 750,765 972,469 1,512,250 1,405,996 1,216,482 1,459, 490 1,343,580 486,519 737,886 Total Business-Type Activities Expenses 27,714,534 29,514,867 31,129,444 39,658,892 32,478,730 33,272,298 34,990,117 36,724,429 35,689,323 43,630,306 Total Primary Government Expenses 94,817,803$ 109,729,128$ 114,445,147$ 117,021,580$ 114,473,880$ 117,534,467$ 126,140,407$ 129,673,440$ 125,604,519$ 143,981,542$ Program Revenues
Governmental Activities:

Charges for Services:

General Government 4,736,292$ 7,595,331$ 7,331,129$ 7,079,265$ 6,944,075$ 8,334,058$ 8,384,133$ 8,692,831$ 9,785,320$ 10,822,092$ Public Safety 1,072,098 1,206,225 1,472,062 1,793,282 3,333,157 3,926,464 3,031,297 2,242,981 2,238,825 2,195,555 Public Works 905,135 524,555 772,724 668,273 768,170 2,114,166 2,043,942 4, 224,955 4,769,838 3,543,685 Community Development 7,054,779 4,685,299 7,203,571 5,989,087 5,599,140 6,691,251 5,111, 318 9,993,907 15,942,608 15,856,337 Culture and Recreation 762,357 733,235 834,970 911,855 990,982 972,829 972,829 825,802 1,410,536 1,517,661 Operating Grants and Contributions 13,133,883 12,699,542 13,641,846 18,154,961 17,924,456 19,071,198 18,031,974 20,512,898 21,201,189 34,424,337 Capital Grants and Contributions 979,706 48,709 545,127 3,705,925 1,132,855 897,177 822,332 1, 442,355 1,332,359 1,800,489 Total Government Activities Program Revenues 28,644,250 27,492,896 31,801,429 38,302,648 36,692,835 42,007,143 38,397,825 47,935,729 56,680,675 70,160,156 Continued
198
378

CITY OF PITTSBURG
Changes in Net Position
(continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Business-Type Activities:

Charges for Services:

Water 19,640,140$ 18,979,002$ 19,559,288$ 20,352,786$ 21,468,810$ 23,240,951$ 25,192,434$ 29,104,815$ 27,544,712$ 26,731,846$ Wastewater 4,918,873 5,123,475 5,264,897 5,241,131 5,280,083 5,510,632 5,138,927 5,882,042 5,033,314 5,150,007 Marina 2,020,396 2,071,214 1,931,707 2,011,270 2,046,221 2,156,979 2,286,801 2,015,817 2,254,835 2,383,616 Pittsburg Power Co.* 5,913,071 6,919,807 7,162,170 7,269,448 8,005,118 8,938,923 7,534,442 9,655,712 9,470,936 12,915,675 WaterFront Operations** - 863,297 1,408,172 1,458,623 1,490,811 1,541,154 1,579, 620 1,632,918 871,163 826,296 Other-Non-Major Enterprise Funds*** 519,498 - - - - - - - - - Operating Grants and Contributions 40,000 - 270,931 200,127 139,465 179,686 109,206 167,980 125,191 92,841 Capital Grants and Contributions 748,904 2,145,271 1,780,581 6,026,102 - 53,000 27,347 - 534,140 - Total Business-Type Activities Program Revenue 33,800,882 36,102,066 37,377,746 42,559,487 38,430,508 41,621,325 41,868,777 48,459,284 45,834,291 48,100,281 Total Primary Government Program Revenues 62,445,132$ 63,594,962$ 69,179,175$ 80,862,135$ 75,123,343$ 83,628,468$ 80,266,602$ 96,395,013$ 102,514,966$ 118,260,437$ Net (Expense)/Revenue
Governmental Activities (38,459,019)$ (52,721,365)$ (51,514,274)$ (39,060,040)$ (45,302,315)$ (42,255,026)$ (52,752,465)$ (45,013,282)$ (33,234,521)$ (30,191,080)$ Business-Type Activities 6,086,348 6,587,199 6,248,302 2,900,595 5,951,778 8,349,027 6,878, 660 11,734,855 10,144,968 4,469,975 Total Primary Government Net Expense (32,372,671)$ (46,134,166)$ (45,265,972)$ (36,159,445)$ (39,350,537)$ (33,905,999)$ (45,873,805)$ (33,278,427)$ (23,089,553)$ (25,721,105)$ *Pittsburg Power Co. was reported as Non-Major Enterprise Funds prior to FY 2014. **Waterfront Operation was reported as Non-Major Enterprise Funds prior to FY 2015. ***Golf Course was reported as Non-Major Enterprise Funds prior to FY 2014 and had been reclassified to Special Revenue Fund in FY 2015.

Continued
199
379

CITY OF PITTSBURG
Changes in Net Position
(continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
General Revenues and Other Changes in Net Position
Governmental Activities:

Taxes:

Property Taxes 2,613,321$ 3,204,965$ 3,300,776$ 3,573,822$ 3,972,711$ 4,039,499$ 4,082,582$ 4,455,736$ 4,895,005$ 5,275,779$ Sales Taxes 12,563,378 11,745,524 13,112,880 13,372,246 13,616,195 14,446,467 15,771,436 20,565,598 20,597,815 22,221,452 Motor Vehicle In-Lieu 3,795,560 4,169,031 4,422,099 4,544,316 4,825,687 5,152,948 5,374,375 5,720,207 5,863,791 6,590,985 Buisness License taxes 701,697 699,501
Transient Occupancy Taxes 503,265 645,115 710,501 758,814 831,743 842,605 777,473 594,956 505,971 501,035 Nonregulatory Franchise and Business 4,063,561 4,327,160 4,638,074 4,706,887 4,928,647 5,118,174 5,401,845 5,559,335 5,854,635 6,219,587 Interest Earnings 600,555 539,473 743,082 329,042 590,186 1,802,802 1,673,126 2,876, 478 (2,863,079) 2,005,445 Other 13,172,704 8,556,333 8,608,044 9, 095,222 11,137,388 11,215,512 11,876, 931 12,575,903 3,250,828 3,610,551 Transfers 2,342,747 2,677,386 2,354,972 2,774,890 1,544,688 1,204,516 1,170, 833 2,214,798 1,543,752 983,816 Gain (loss) on sale of assets - - - (34,554) 15,950 - - - - - Total Government Activities 39,655,091 35,864,987 37,890,428 39,120,685 41,463,195 43,822,523 46,128,601 54,563,011 40,350,415 48,108,151 Business-Type Activities:

Interest Earnings 129,786 440,462 665,412 325,437 373,857 1,719,235 1,826,709 423,675 312,307 3,434,926 Transfers (2,342,747) (2,677,386) (2,354,972) (2,774,890) (1,544,688) (1,204,516) (1, 170,833) (2,214,798) (1 ,543,752) (983,816) Gain (loss) on sale of assets 98,692 63,754 - 96,473 56,375 - - - - - Total Business-Type Activities (2,114,269) (2,173,170) (1,689,560) (2,352,980) (1,114,456) 514,719 655,876 (1,791,123) (1,231,445) 2,451,110 Total Primary Government 37,540,822$ 33,691,817$ 36,200,868$ 36,767,705$ 40,348,739$ 44,337,242$ 46,784,477$ 52,771,888$ 39,118,970$ 50,559,261$ Change in Net Position
Governmental Activities 1,196,072.00$ (16,856,378.00)$ (13,623,846.00)$ 60,645.00$ (3,839,120)$ 1,567,497$ (6,623,864)$ 9,549,729$ 7,115,894$ 17,917,071$ Business-Type Activities 3,972,079 4,414,029 4,558,742 547,615 4,837,322 8,863,746 7,534,536 9,943,732 8,913,523 6,921,085 Total Primary Government 5,168,151 (12,442,349) (9,065, 104) 608,260 998,202 10,431,243 910,672 19,493,461 16,029,417 24,838,156 Prior Period Adjustment (See Note 9F) - (44,258,992) - - (5,994,006) - - 1,171,619 - - Total Primary Government after adjustment 5,168,151$ (56,701,341)$ (9,065,104)$ 608,260$ (4,995,804)$ 10,431,243$ 910,672$ 20,665,080$ 16,029,417$ 24,838,156$ In FY 2014-15, implementation of GASB 68 & 71 resulted in prior period adjustments.

In FY 2017-18, implementation of GASB 75 resulted in prior period adjustments.

In FY 2020-21, due to Section 115 pension Trust account is reported as investments, resulted in a prior period adjustment 200
380
Fiscal Year Ended June 30,
2014 2015
General Fund
Reserved 4,428,602$ 3,442,272$
Unreserved 16,185,068 14,613,983
Total General Fund 20,613,670 18,056,255
All Other Governmental Funds
Reserved 11,495,750 24,596,598
Unreserved, designated 15,478,370 (486,548)
Total all other governmental funds 26,974,120 24,110,050 Total Government Funds
Reserved 15,924,352 28,038,870
Unreserved 31,663,438 14,127,435
Total Government Funds 47,587,790$ 42,166,305$
First Two Fiscal Years
(Modified Accrual Basis of Accounting)
(Pre GASB 54 Implementation)

CITY OF PITTSBURG
Fund Balances of Governmental Funds
0 5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
50,000,000
2014 2015
Unreserved
Reserved
201
381
Fiscal Year Ended June 30,
2016 2017 2018 2019 2020 2021 2022 2023
General Fund
Nonspendable 2,642,564$ 2,410,696$ 2,300,328$ 2,031,396$ 1,817,088$ 1,302,864$ 1,248,860$ 353,082$ Restricted
Committed
Assigned 666,486 434,778 528,077 802,151 573,069 1,190,087 1,509,170 1,607,087 Unassigned 15,957,212 17,037,283 18,426,657 21,652,919 21,760,428 32,020,209 30,947,761 25,610,923 Total General Fund 19,266,262 19,882,757 21,255,062 24,486,466 24,150,585 34,513,160 33,705,791 27,571,092

All Other Governmental Funds
Nonspendable 272,138$ 272,243$ 263,123$ 346,542$ 336,049$ 340,615$ 3,794,789$ 4,543,979$ Restricted 21,194,534 21,316,430 21,977,238 23,662,705 27,658,803 36,773,335 38,082,990 51,486,194 Committed 2,877,225 2,756,478 2,240,940 2,161,973 3,473,472 4,939,883 5,836,570 13,114,840 Assigned 14,354 29,349 42,127 3,586 37,090 64,160 54,207 62,236 Unassigned (455,164) (3,745,132) (3,740,451) (3,755, 741) (3,909,750) (3,781,016) (3,686,341) (4,097,837) Total all other governmental funds 23,903,087 20,629,368 20,782,977 22,419,065 27,595,664 38,336,977 44,082,215 65,109,412 Total Government Funds
Nonspendable 2,914,702$ 2,682,939$ 2,563,451$ 2,377,938$ 2,153,137$ 1,643,479$ 5,043,649$ 4,897,061$ Restricted 21,194,534 21,316,430 21,977,238 23,662,705 27,658,803 36,773,335 38,082,990 51,486,194 Committed 2,877,225 2,756,478 2,240,940 2,161,973 3,473,472 4,939,883 5,836,570 13,114,840 Assigned 680,840 464,127 570,204 805,737 610,159 1,254,247 1,563,377 1,669,323 Unassigned 15,502,048 13,292,151 14,686,206 17,897,178 17,850,678 28,239,193 27,261,420 21,513,086 Total Fund Balances 43,169,349$ 40,512,125$ 42,038,039$ 46,905,531$ 51,746,249$ 72,850,137$ 77,788,006$ 92,680,504$ For additional detail on Fund Classifications, see Note 9 of Notes to Basic Financial Statements for fiscal years 2015-2021.

For additional detail on Fund Classifications, see Note 10 of Notes to Basic Financial Statements for fiscal year 2022-2023.

Last Eight Fiscal Years
(Post GASB 54 FY2011 Implementation)
Fund Balances of Governmental Funds

CITY OF PITTSBURG
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
$100,000,000
2016 2017 2018 2019 2020 2021 2022 2023
Unassigned
Assigned
Committed
Restricted
Nonspendable
202
382

CITY OF PITTSBURG
Changes in Fund Balance of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
{in thousands}
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Revenues
Taxes 31,968$ 32,648$ 34,792$ 31,624$ 33,503$ 34,437$ 36,642$ 42,390$ 43,532$ 45,434$ Licenses, permits and fees 1,888 1,635 2,566 3,532 1,812 3,005 2,341 6,047 4,334 3,734 Fines and forfeitures 187 172 325 308 433 415 561 486 430 438 Use of money and property 615 542 743 329 590 1,670 1,600 2,871 (2,226) 1,842 Intergovernmental revenues 16,060 14,135 15,455 24,098 25,854 29,460 28,300 35,975 33,736 50,111 Charges for services 7,400 9,984 10,126 9,894 9,621 10,360 10,075 9,521 9,968 11,128 Other 3,432 3,027 4,019 3,957 4,907 7,570 4,459 7,544 5,880 4,514 Total Revenues 61,550 62,143 68,026 73,742 76,720 86,917 83,978 104,834 95,654 117,201 Expenditures
Current:

General government 5,454 8,217 6,740 7,321 6,353 6,163 7,740 5,747 7,596 7,607 Public safety 20,842 23,149 24,797 25,895 27,721 30,107 30,937 29,341 32,552 35,560 Public works 7,371 8,469 7,107 7,859 8,102 9,256 8,094 11,178 11,005 11,449 Community development 22,388 22,286 22,393 25,440 25,667 28,055 27,149 32,515 33,485 36,996 Culture and recreation 733 700 862 1,019 807 1,013 1,238 1,259 973 2,318 Capital outlay 813 3,474 2,738 6,600 3,429 3,959 1,078 1,060 2,346 4,221 Debt service:

Principal repayment 450 589 2,016 2,083 2,155 2,227 2,308 2,391 2,638 2,776 Interest and fiscal charges 1,588 2,890 2,315 2,264 1,999 1,982 1,919 1,815 1,801 1,824 Total Expenditures 59,639 69,774 68,968 78,481 76,233 82,762 80,463 85,306 92,396 102,751 Excess (deficiency) of revenues over
(under) expenditures 1,911 (7,631) (942) (4,739) 487 4,155 3,515 19,528 3,258 14,450 Other Financing Sources (Uses)
Transfers in 5,084 6,547 6,814 6,875 6,830 8,477 9,579 9,904 11,650 20,052 Transfers (out) (3,169) (4,499) (4,869) (4,793) (5,808) (7,813) (8,253) (8,328) (10,504) (19,609) Refunding tax allocation bonds - - - - - - - - - - Tax allocation bonds issued - - - - - - - - - - Sale of capital assets 22 4 - - 17 48 - - 534 - Total other financing sources (uses) 1,937 2,052 1,945 2,082 1,039 712 1,326 1,576 1,680 443 Net Change in fund balances before 3,848$ (5,579)$ 1,003$ (2,657)$ 1,526$ 4,867$ 4,841$ 21,104$ 4,938$ 14,893$ Debt service as a percentage of
noncapital expenditures 3.5% 5.2% 6.5% 6.0% 5.7% 5.3% 5.3% 5.0% 4.9% 4.7%

203
383

CITY OF PITTSBURG
Assessed and Estimated Actual
Value of Taxable Property
Last Ten Fiscal Years
#
#
#
#
#
#
#
Secured Tax Roll NET Total
Fiscal Personal Unsecured GROSS LESS: Exemptions Assessed Direct Year Land Improvements Propert y Tax Roll Tax Roll HOPTR * Others Valuation *** Tax Rate **** 2014 1,244,373,590$ 3,426,800,074$ 29,431,527$ 1,030,705,786$ 5,731,310,977$ 58,985,158$ 184,163,403$ 5,488,162,416$ 0.17411 2015 1,431,988,767 3,744,776,351 29,751,906 1,033,971,545 6,240,488,569 57,725,918 187,268,875 5,995,493,776 0.14854 ** 2016 1,596,856,457 4,088,152,986 28,100,163 905,755,131 6,618,864,737 57,212,685 195,920,004 6,365,732,048 0.15020 2017 1,734,578,352 4,271,018,852 31,382,377 763,128,074 6,800,107,655 56,350,900 203,066,563 6,540,690,192 0.15142 2018 1,912,263,271 4,316,648,943 30,152,799 789,812,811 7,048,877,824 55,968,158 206,618,682 6,786,290,984 0.15305 2019 2,097,264,749 4,752,331,104 29,396,436 808,915,163 7,687,907,452 55,103,121 206,894,237 7,425,910,094 0.15419 2020 2,244,198,055 4,919,701,883 24,764,994 882,038,216 8,070,703,148 54,749,068 291,513,686 7,724,440,394 0.15451 2021 2,430,265,323 5,114,403,543 23,294,582 931,043,622 8,499,007,070 54,039,947 293,711,372 8,151,255,751 0.15778 2022 2,591,425,680 5,225,394,381 23,288,811 956,204,399 8,796,313,271 53,217,087 342,980,102 8,400,116,082 0.15585 2023 2,918,316,115 5,627,562,103 23,777,465 1,333,934,749 9,903,590,432 52,009,128 374,728,335 9,476,852,969 0.13847

* Homeowners' Property Tax Relief
** Direct Tax Rate for FY 14-15 has been updated to reflect the AB8 adjustment for the first time on 2014-15 tax roll after ACF R was issued. ***
****

Source: Contra Costa County Auditor Controller Office Certificate of Assessed Valuations The State Constitution requires property to be assessed at one hundred percent of the most recent purchase price, plus an incre ment of no more than two percent annually, plus any local over-rides. These values are considered to be full market values.

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. Beginning in 2013/14 the total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during 2012/13. For the purposes of this report, residual revenue is assumed to be distributed to the City in the same proportions as general fund revenue. $0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Millions
Unsecured Tax Roll
Secured Tax Roll
204
384

CITY OF PITTSBURG
Property Tax Rates
All Overlapping Governments
Last Ten Fiscal Years
Basic Bay East Bay
County Pittsburg Los Area Regional Pittsburg
Fiscal Wide Direct Medanos Rapid Park Unified School Community Year Levy Rate* Hospital Transit District District College Total 2014 1.0000 0.17411 0.0000 0.0075 0.0078 0.1391 0.0133 1.3343 2015 1.0000 0.14854 0.0231 0.0079 0.0373 0.3241 0.0572 1.5902 2016 1.0000 0.15020 0.0170 0.0058 0.0273 0.2280 0.0419 1.4644 2017 1.0000 0.15142 0.0170 0.0058 0.0273 0.2280 0.0419 1.4656 2018 1.0000 0.15305 0.0170 0.0058 0.0273 0.2280 0.0419 1.4673 2019 1.0000 0.15419 0.0170 0.0058 0.0273 0.2280 0.0419 1.4684 2020 1.0000 0.15451 0.0170 0.0058 0.0273 0.2280 0.0419 1.4687 2021 1.0000 0.15778 0.0170 0.0058 0.0273 0.2280 0.0419 1.4719 2022 1.0000 0.15585 0.0170 0.0058 0.0273 0.2280 0.0419 1.4700 2023 1.0000 0.13847 0.0170 0.0058 0.0273 0.2280 0.0419 1.4526 * Pittsburg Direct Rate = the weighted average of City's Share of 1% levy & Redevelopment Rate Source: Contra Costa County Assessors Office & HdL Coren & Cone

0.0000

0.0500

0.1000

0.1500

0.2000

0.2500

0.3000

0.3500

0.4000

0.4500
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Property Tax Rate other than Basic County Wide Levy
Fiscal Year
Los Medanos Hospital BART
East Bay Regional Park District Pittsburg Unified School District Community College
205
385
2022-23 2013-14
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Ran k Value Value Rank Value
Corteva Agriscience 298,458,793$ 1 3.13% -$ 0.00% USS - Posco Industries 245,777,966 2 2.58% 246,066,357 4 4.44% Diablo Energy Storage LLC 233,489,362 3 2.45% - 0.00%
Calpine Corporation 227,100,000 4 2.38% 321,240,000 3 5.79% Delta Energy Center LLC 180,300,000 5 1.89% - 0.00%
K2 Pure Sol 168,970,294 6 1.77% 133,318,129 6 2.40% KW Kirker Creek LLC 111,751,230 7 1.17% 68,107,724 9 1.23% Dow Chemical Company 103,558,859 8 1.09% 327,316,210 1 5.90% Sierra Pacific Apartments LLC 97,682,017 9 1.03% 101,404,796 7 1.83% San Marco Properties LLC 87,210,686 10 0.92% 54,312,194 10 0.98% United Spiral LLC - 0.00% 135,562,535 5 2.44%
Diablo Energy Storage LLC - 0.00% 326,900,000 2 5.89% Century Plaza Corporation - 0.00% 68,809,329 8 1.24% Subtotal 1,754,299,207$ 18.41% 1,783,037,274$ 27.71% Total Net Assessed Valuation:

Fiscal Year 2022-23 $9,528,862,097
Fiscal Year 2013-14 $5,547,144,833
Source: HdL Coren & Cone

CITY OF PITTSBURG
Principal Property Tax Payers
Current Year and Nine Years Ago
206
386

CITY OF PITTSBURG
Property Tax Levies and Collections June 30
Last Ten Fiscal Years

Percent of
Total Total Tax Percent
Fiscal Total Current Tax Percent of Levy Tax Collections Amount % Year Tax Levied Collections County Collected * Collections To Tax Levy Delinquent Delinquent 2014 8,520,700$ 8,441,966$ 99.08% 8,441,966$ 99.08% 78,734$ 0.92% 2015 9,425,580 9,353,530 99.24% 9,353,530 99.24% 72,050 0.76% 2016 10,060,215 9,991,126 99.31% 9,991,126 99.31% 72,008 0.72% 2017 10,398,911 10,327,316 99.31% 10,327,316 99.31% 71,496 0.69% 2018 11,112,284 11,044,802 99.39% 11,044,802 99.39% 67,482 0.61% 2019 11,939,625 11,862,801 99.36% 11,862,801 99.36% 76,824 0.64% 2020 12,432,680 12,331,075 99.18% 12,331,075 99.18% 101,605 0.82% 2021 13,194,874 13,100,993 99.29% 13,100,993 99.29% 93,881 0.71% 2022 13,622,228 13,526,931 99.30% 13,526,931 99.30% 95,297 0.70% 2023 15,275,224 15,150,953 99.19% 15,150,953 99.19% 124,272 0.81% * The County provides the City 100% of its tax levy under the "Teeter Plan", an agreement which allows the County to keep all interest and delinquency charges collected.

Source: CCC Auditor-Contoller (Procedure 10-147)

$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Total Tax Levied Current Tax Collections
207
387

CITY OF PITTSBURG
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
Successor Pension City
Fiscal Agency Obligation Loans /
Year Bonds Bonds Leases Total
2014 -$ 33,157,051$ 105,815$ 33,262,866$ 2015 - 33,826,975 538,686 34,365,661
2016 - 34,036,850 646,382 34,683,232
2017 - 34,104,558 504,189 34,608,747
2018 - 34,030,018 1,089,735 35,119,753
2019 - 33,260,642 1,595,000 34,855,642
2020 - 33,422,178 1,955,024 35,377,202
2021 - 32,872,243 1,399,669 34,271,912
2022 - 32,153,097 854,041 33,007,138
2023 - 31,213,452 1,726,883 32,940,335
Business-Type Activities
2016 Water Sewer 2022A Water Total Percentage
Fiscal Revenue Revenue I-Bank Revenue Primary of Personal Per Year Bonds Bonds ** Loan Bonds Total Government Income *** Capita *** 2014 32,610,000$ 5,342,000$ -$ -$ 37,952,000$ 71,214,866$ 4.87% 1,068 2015 31,575,000 4,601,000 11,387,398 - 47,563,398 81,929,059 5.29% 1,202 2016 30,485,000 3,864,000 11,167,171 - 45,516,171 80,199,403 5.23% 1,155 2017 29,605,000 3,111,000 10,939,216 - 43,655,216 78,263,963 4.92% 1,107 2018 28,650,000 2,350,000 10,703,258 - 41,703,258 76,823,011 4.56% 1,065 2019 27,335,000 1,578,000 10,459,018 - 39,372,018 74,227,660 3.99% 1,025 2020 25,975,000 796,000 10,206,206 - 36,977,206 72,354,408 3.63% 997 2021 24,570,000 - 9,944,520 - 34,514,520 68,786,432 3.21% 900 2022 23,120,000 - 9,673,649 46,264,337 79,057,986 112,065,124 4.86% 1,464 2023 21,620,000 - 9,393,270 46,191,525 77,204,795 110,145,130 4.44% 1,420 Note : Debt amounts includes any premiums, discounts, or other amortization amounts. **Sewer Revenue Bond was fully defeased as of June 30, 2014. It has been replaced with a private placement debt. *** See Schedule of Demographic and Economic Statistics for personal income and population data. FY2013-2020 numbers corrected for Personal Income and Capita
Please refer to Note 7 for further information for fiscal years 2013-2021.

Please refer to Note 8 for further information for fiscal year 2022.

Sources: City of Pittsburg
U.S. Department of commerce, Bureau of the Census (income and population) Governmental Activities
$-
$10
$20
$30
$40
$50
$60
$70
$80
$90
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Millions
Total Governmental Total Business
208
388

CITY OF PITTSBURG
Ratio of General Government Debt Outstanding
Last Ten Fiscal Years*
General Government Debt Outstanding
Percentage of
Fiscal POB Lease CEC PG&E Energy Lease Lease Lease Lease Total Total Gross Per Debt Per Year
Bonds * Street Sweeper Energy Efficient Retrofit VOIP System Fleet Vehicles/ Street Sweeper
Fleet Equipment Vehicles/Equipmen t Debt Revenue Capita Assessed Value 2014 33,157,051$ 105,815$ 526,313$ -$ -$ -$ -$ -$ 33,789,179$ 54.90% 523$ 0.62% 2015 33,826,975 71,520 467,166 - - - - - 34,365,661 55.30% 523.36 0.57% 2016 34,036,850 240,114 406,268 - - - - - 34,683,232 50.99% 520.03 0.54% 2017 34,104,558 160,696 343,493 - - - - - 34,608,747 47.27% ** 507.91 0.53% 2018 34,030,018 116,339 278,821 209,740 484,835 - - - 35,119,753 46.11% ** 505.87 0.52% 2019 33,260,642 70,754 212,194 188,411 363,626 498,647 261,368 - 34,855,642 40.10% 493.15 0.47% 2020 33,422,178 23,907 143,568 167,085 242,417 395,018 212,954 770,075 35,377,202 40.70% 490.39 0.46% 2021 32,872,243 - 72,853 145,756 121,208 287,415 162,683 609,754 34,271,912 32.69% 472.14 0.42% 2022 32,153,097 - - 124,427 - 175,684 110,483 443,447 33,007,138 31.49% 431.94 0.39% 2023 31,213,452 - - 103,098 - 59,666 56,281 270,930 31,703,427 30.24% 414.19 0.33% * 'The 2006 Pension Obligation Bonds (POB) includes the accreted amount of Capital Appreciation Bonds. ** FY 17 and 18 percent rates restated to reflect the correct revenue. $29,000,000
$30,000,000
$31,000,000
$32,000,000
$33,000,000
$34,000,000
$35,000,000
$36,000,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Total Debt
Total Debt
$-
$200
$400
$600
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Per Capita
Per Capita
209
389
2022-23 Assessed Valuation: $ 9,528,862,097 OVERLAPPING TAX AND ASSESSMENT DEBT: Total Debt 6/30/23 % Applicable (1) City's Share of
Debt 6/30/23
Bay Area Rapid Transit District 2,484,285,000$ 1.000% 24 ,842,850$ Contra Costa Community College District 649,015,000 3.789 24,591,178 Antioch Unified School District SFID No. 19 7,781,533 3.575 3,495,690 Mt. Diablo Unified School District 388,584,259 4.279 16,627,520 Mt. Diablo Unified School District Community Facilities District No. 13 ,170,000 4.287 135,898 Pittsburg Unified School District 379,320,926 98.804 374 ,784,248 City of Pittsburg Community Facilities Districts No. 2005-2 7,080,000 100. 7,080,000 City of Pittsburg 1915 Act Bonds 5,996,484 100. 5,996,484 East Bay Regional Park District 175,955,000 1.584 2,787,127 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 460,340,995$
DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Contra Costa County General Fund Obligations 193,515,000$ 3.777% 7,309,062$ Antioch Unified School District General Fund Obligations 21,937,207 2.129 467,043 Mt. Diablo Unified School District General Fund Obligations 11,350,000 4.279 485,667 Pittsburg Unified School District Certificates of Participation 15,360,000 98.804 15,176,294 City of Pittsburg Pension Obligation Bonds 27,037,315 100. 27,037,315 TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT 50,475,381$ Less: Contra Costa County General Fund Obligations supported by revenue 7,309,062 TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT 43,166,319$ OVERLAPPING TAX INCREMENT DEBT (Successor Agency): 149,200,471$ 100. 149,200,471$ TOTAL DIRECT DEBT 27,037,315$
TOTAL GROSS OVERLAPPING DEBT 632,979,532$
TOTAL NET OVERLAPPING DEBT 625,670,470$
GROSS COMBINED TOTAL DEBT 660,016,847$ (2)
NET COMBINED TOTAL DEBT 652,707,785$
Ratios to 2022-23 Assessed Valuation:

Total Direct and Overlappting Tax and Assessment Debt …........................... 4.83% Direct Debt ($27,037,315) ….................................................................... 0.28% Gross Combined Total Debt …..................................................................... 6.93% Net Total Debt …......................................................................................... 6.85% Ratios to Redevelopment Successor Agency Incremental Valuation (6,492,099,216)$ Overlapping Tax Increment Debt ….............................................................. 2.30% .

CITY OF PITTSBURG
Computation of Direct and Overlappping Debt
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, non-bonded capital lease obligations, and sales tax revenue bonds. Qualified Zone Academy Bonds are included based on principal due at maturity. 210
390
ASSESSED VALUATION:

Secured property assessed value, net of
exempt real property (a) 3,036,762,881$
BONDED DEBT LIMIT (15% OF ASSESSED VALUE) (a) 455,514,432$ AMOUNT OF DEBT SUBJECT TO LIMIT:

Total Bonded Debt (b) 99,024,977$
Less:

Revenue Bonds 67,811,525
31,213,452
LEGAL BONDED DEBT MARGIN 424,300,980$
Total net debt
Total Net Debt Legal applicable to the limit
Fiscal Debt Applicable to Debt as a percentage
Year Limit Limit Margin of debt limit
2014 291,468,534$ 33,157,051$ 258,311,483$ 12.84% 2015 320,762,569 33,826,975 286,935,594 11.79%
2016 335,737,855 34,036,850 301,701,005 11.28%
2017 340,711,533 34,104,558 306,606,975 11.12%
2018 361,299,502 34,030,018 327,269,484 10.40%
2019 381,350,504 33,260,642 348,089,862 9.56%
2020 394,631,565 33,422,178 361,209,387 9.25%
2021 408,098,524 32,872,243 375,226,281 8.76%
2022 416,499,016 32,153,097 384,345,919 8.37%
2023 455,514,432 31,213,452 424,300,980 7.59%
Source: City Finance Department
(a) California Government Code Section 43605 sets the limit at 15%. (b) Upon the dissolution of the Redevelopment Agency - City of Pittsburg effective January 31, 2012, a Successor Agency assumed the liabilities of the former Redevelopment Agency, therefore the total bonded debt and revenue bonds have decreased in all years for comparative purposes.

CITY OF PITTSBURG
Computation of Legal Bonded Debt Margin
June 30, 2023
211
391

CITY OF PITTSBURG
Revenue Bond Coverage
Wastewater Revenue Bonds

Net Revenue Debt Service Requirements
Fiscal Gross Operating Available for
Year Revenue Expenses Debt Service Principal Interest * Total Coverage 2014 4,917,728$ 1,992,182$ 2,925,546$ 640,000 $ 399,786 $ 1,039,786$ 2.81 2015 5,022,745 1,965,165 3,057,580 741,000 81,986 822,986 3.72 2016 5,024,185 2,547,410 2,476,775 737,000 68,464 805,464 3.07 2017 5,107,869 2,355,218 2,752,651 753,000 56,986 809,986 3.40 2018 5,168,294 3,011,303 2,156,991 761,000 44,922 805,922 2.68 2019 4,939,327 2,817,905 2,121,422 772,000 33,112 805,112 2.63 2020 4,950,030 2,851,197 2,098,833 782,000 20,657 802,657 2.61 2021 4,938,929 2,984,575 1,954,354 796,000 8,808 804,808 2.43 2022 - - - - - - - 2023 - - - - - - - *

Note: Coverage requirements of a least 1.20 times higher than debt service for any fiscal year. Bond was paid in full Fiscal Year 2020-21 Source: City of Pittsburg Annual Financial Statements as analyzed by Finance Division Revenue Manager Interest is lowered due to the refunding of the 2004 Wastewater Bond (per Resolution 14-0270 dated 6/6/14). The City executed a private Installment Sale Agreement with Bank of the West for a lower interest rate of 1.55% per annum. 100.00%
150.00%
200.00%
250.00%
300.00%
350.00%
400.00%
2014 2015 2016 2017 2018 2019 2020 2021 2022
Coverage
212
392

CITY OF PITTSBURG
Revenue Bond Coverage
2016 (Refunded 1997, 2005, and 2008) Water Revenue Bonds Net Revenue Debt Service Requirements
Fiscal Gross Operating Available for
Year Revenue Expenses Debt Service Principal Interest Total Coverage 2014 18,991,247$ 12,777,146$ 6,214,101$ 1,010,000$ 1,421,992$ 2,431,992$ 2.56 2015 18,272,979 12,379,283 5,893,696 1,035,000 1,734,374 2,769,374 2.13 2016 18,592,332 13,088,660 5,503,672 1,310,226 1,691,311 3,001,537 1.83 2017 19,331,187 12,933,557 6,397,630 1,472,956 1,283,708 2,756,664 2.32 2018 21,519,127 14,547,037 6,972,090 1,190,958 1,651,243 2,842,201 2.45 2019 23,369,888 15,605,367 7,764,521 1,559,240 1,594,020 3,153,260 2.46 2020 25,551,818 16,431,138 9,120,680 1,612,812 1,527,793 3,140,605 2.90 2021 26,935,506 17,482,817 9,452,689 1,666,686 1,489,069 3,155,755 3.00 2022 27,173,166 17,374,154 9,799,012 1,786,510 1,830,449 3,616,959 2.71 2023 28,357,310 20,271,676 8,085,634 1,780,379 1,088,328 2,868,707 2.82 Note: This schedule has been modified to reconcile to the Revenue Manager's analysis for annual Bond Disclosures.

Source: City of Pittsburg Annual Financial Statements as Analyzed by the Finance Division Revenue Manager

0.00%
100.00%
200.00%
300.00%
400.00%
500.00%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Coverage
213
393

CITY OF PITTSBURG
Successor Agency Bonded Debt Pledged Revenue Coverage
Tax Allocation Bonds
Last Ten Fiscal Years
Tax Debt Service Requirements
Fiscal Increment
Year Revenue Principal Interest Total Coverage
2014 38,486,428$ 93,635,000$ * 19,250,447$ 112,885,447$ 0.34 2015 40,387,530 13,355,000 ** 14,415,839 27,770,839 1.45 2016 43,371,250 16,655,000 12, 113,046 28,768,046 1.51
2017 10,218,501 20,250,000 12, 125,192 32,375,192 0.32
2018 33,553,848 21,310,000 11, 652,527 32,962,527 1.02
2019 33,840,468 22,350,000 10, 795,387 33,145,387 1.02
2020 33,758,927 23,365,000 9,853,554 33,218,554 1.02
2021 33,512,215 24,270,000 8,944,331 33,214,331 1.01
2022 32,146,744 25,225,000 7,987,046 33,212,046 0.97
2023 31,978,811 24,250,000 7,113,245 31,363,245 1.02
* The 2014 Tax Allocation Refunding Bond was issued to fully refunded 2003A Bonds and partly refund the 1999 CIP portion.

Refer to Note 14 for additional information on refunding for fiscal years 2013-2021.

Refer to Note 15 for additional information on refunding for fiscal year 2022.

The 2016 Refunding Bond was excluded for trending purpose ** The interest amount excludes the Letter of Credit fees and costs associated with 2016 bond refunding Source: City of Pittsburg Annual Financial Statements
$0
$20
$40
$60
$80
$100
$120
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Millions $
Fiscal Years
Revenue Debt Service Payment
214
394

Pittsburg City CouncilMay 6, 2024

Pittsburg City Council
May 6, 2024