Pleasant Hill City Council
February 26, 2024

CITY OF PLEASANT HILL

ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2023
Prepared by

FINANCE DIVISION

CITY OF PLEASANT HILL
Annual Comprehensive Financial Report
Year Ended June 30, 2023
Table of Contents
Page

INTRODUCTORY SECTION
Letter of Transmittal ............................................................................................................................................. i List of Principal Officials .................................................................................................................................... iv California Map ..................................................................................................................................................... v Organization Chart .............................................................................................................................................. vi GFOA Certificate of Achievement for Excellence in Financial Reporting ..................................................... vii

FINANCIAL SECTION
Independent Auditor’s Report ......................................................................................................................... 1 Management’s Discussion and Analysis (Required Supplementary Information - Unaudited) .............. 5 Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position ................................................................................................................. 17 Statement of Activities ..................................................................................................................... 18 Fund Financial Statements:

Governmental Funds:

Balance Sheet ................................................................................................................................... 19 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position - Governmental Activities ................................................................. 20 Statement of Revenues, Expenditures and Changes in Fund Balances ............................................ 21 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities - Governmental Activities ............................................................................................................. 22 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual:

General Fund ............................................................................................................................... 23 Traffic Mitigation Fund ............................................................................................................... 24 Measure J Growth Management Fund ........................................................................................ 25 Gas Tax Fund .............................................................................................................................. 26 American Rescue Plan Act Fund ................................................................................................. 27 Proprietary Fund:

Statement of Fund Net Position ........................................................................................................ 28 Statement of Revenues, Expenses and Changes in Fund Net Position ............................................. 29 Statement of Cash Flows .................................................................................................................. 30 Fiduciary Funds:

Statement of Fiduciary Net Position ................................................................................................. 31 Statement of Changes in Fiduciary Net Position .............................................................................. 32 Notes to Basic Financial Statements ...................................................................................................... 33

CITY OF PLEASANT HILL
Annual Comprehensive Financial Report
Year Ended June 30, 2023
Table of Contents
Page
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited):

Schedule of City’s Proportionate Share of the Net Pension Liability ......................................................... 63 Schedule of City Contributions .................................................................................................................... 64 Other Supplementary Information:

Nonmajor Governmental Funds:

Combining Balance Sheet ................................................................................................................ 68 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ......................... 72 Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual .......... 76 Custodial Funds:

Combining Statement of Fiduciary Net Position .............................................................................. 86 Combining Statement of Changes in Fiduciary Net Position ........................................................... 87

STATISTICAL SECTION
Financial Trends:

Net Position by Component – Last Ten Fiscal Years .................................................................................. 90 Changes in Net Position – Last Ten Fiscal Years ........................................................................................ 91 Fund Balances of Governmental Funds – Last Ten Fiscal Years ............................................................... 93 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ............................................ 94 Revenue Capacity:

Assessed and Estimated Actual Net Value of Taxable Property – Last Ten Fiscal Years ......................... 95 Property Tax Rates – All Direct and Overlapping Governments – Last Ten Fiscal Years ........................ 96 Principal Property Taxpayers – Current Year and Ten Years Ago ............................................................. 97 Property Tax Levies and Collections – Last Ten Fiscal Years ................................................................... 98 Debt Capacity:

Ratio of Outstanding Debt by Type – Last Ten Fiscal Years ..................................................................... 99 Computation of Direct and Overlapping Debt .......................................................................................... 100 Computation of Legal Bonded Debt Margin – Last Ten Fiscal Years ..................................................... 101 Demographic and Economic Information:

Demographic Statistics – Last Ten Calendar Years .................................................................................. 102 Top 25 Sales Tax Producers – Current Year and Nine Years Ago ........................................................... 103 Sales by Categories – Last Ten Calendar Years ........................................................................................ 104 Operating Information:

Full-Time Equivalent City Government Employees by Function – Last Ten Fiscal Years ..................... 105 Operating Indicators by Function/Program – Last Ten Fiscal Years ........................................................ 106 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years .................................................... 107 i
January 29, 2024
To the City Council and Residents of Pleasant Hill
I am pleased to submit the City of Pleasant Hill’s (City) Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2023. The ACFR, which contains the City’s basic financial statements, auditor’s report, and important supplemental information, is intended to present the reader with a comprehensive view of the City’s financial position and activities.

The ACFR was prepared by the City’s Finance Division, which assumes responsibility for its accuracy, completeness, and fairness. The City’s financial statements were audited by Macias Gini & O’Connell LLP, the City’s independent certified public accountant, in order to provide reasonable assurance that the financial statements are free of material misstatement and are fairly presented in accordance with accounting principles generally accepted in the United States of America (GAAP). Macias Gini & O’Connell LLP issued an unmodified opinion, the highest possible rating, for the fiscal year ending June 30, 2023.

The Management’s Discussion and Analysis (MD&A) section of the ACFR provides an overview of the City’s fiscal position and activities. The MD&A complements this transmittal letter and should be read in conjunction with it.

City of Pleasant Hill Government
Pleasant Hill is a general law city incorporated in 1961. It delivers a range of municipal services under the council-manager form of government, and offers outstanding quality of life to its approximately 33,400 residents across 8.1 square miles.

City Council
The City Council consists of five members who are elected at large to staggered four-year terms.

Beginning in November 2024, the City Council will transition from at-large to district-based elections, which was approved by City Council in March 2023. The City Treasurer was an elected position, but beginning December 2024, the City Manager will appoint this public official. The Mayor and Vice-Mayor are elected by the Council from its own ranks and serve one-year terms.

The City Council appoints the City Manager and City Attorney. The City Attorney is a contracted position.

Budget Committee
While retaining authority to approve all actions, the City Council has established a Budget Committee to review and oversee financial matters. Staff provides the Budget Committee and City Council with reports such as the ACFR, Long-Term Financial Plan, and quarterly budget-versusactual results that are utilized in evaluating the City’s financial position. ii
Economic Conditions and Budget Challenges
The local and regional condition of the economy have significant influence on the City’s financial position. During the Fiscal Year 2022/2023 (FY 22/23), the City continued to deal with the impacts of the COVID-19 pandemic, from supply chain issues to changing health recommendations, as restrictions returned to pre-COVID-19 pandemic levels. In March 2020, the City Council adopted a resolution regarding the existence of a local emergency due to the COVID-19 pandemic. Based on information from the State and the County, the City ended the local emergency on February 27, 2023. While the local emergency may have ended, the economic recovery from COVID-19 continued to grow for the first half of the fiscal year and then leveled off. Inflation was a serious concern for the Federal Reserve, which raised rates 11 times beginning March 2022 from nearly 0% to 5.25% in July 2023. The intent by the Federal Reserve is to bring inflation back toward its 2% inflation target, which was 3.1% in November 2023 as compared to 9.1% in June 2022. Higher interest rates may address inflation, but could have negative impacts to the economy such as jobs and the housing market. This could affect the City’s economically sensitive revenues, such as Sales Tax and Transient Occupancy Tax (TOT). Sales tax revenue has been at historical highs over the last couple of years due to the demand for goods and automobiles, but higher prices due to inflation and rising interest rates did level off this growth during the fiscal year. TOT recovery remains slow and still below pre-COVID-19 levels, travel demand could be affected by negative impacts to jobs and rising costs. Finally, higher interest rates will make housing affordability more difficult and may result in fewer homes being sold.

The federal government approved the American Rescue Plan Act (ARPA) in March 2021 for $350 billion to address the economic impact of the COVID-19 pandemic. The United States Treasury provided $1.2 billion to the State of California for distribution among smaller cities, which was allocated based on population. The City received $8.3 million in ARPA funds to help the City recover from COVID-19. These funds must be obligated by December 31, 2024, and spent by December 31, 2026. The City Council has allocated the ARPA funds and spent approximately $3.9 million through FY 22/23 towards local business improvement from the PERKS program and grant assistance; storm drain infrastructure improvements; public safety services and equipment, from crossing guards and the CORE program to police radio equipment; and additional library hours for the public. The City Council has approved some of these programs for an additional year, such as crossing guards, library hours and the CORE program, while funding previously unfunded projects, such as replacement of the underground storage tank at the police department.

The City has prudently maintained or reduced costs whenever possible, but personnel costs continue to be a significant share of the City’s total expenditures. The City’s required contribution toward its CalPERS unfunded liability will continue to increase rapidly over the next few years despite the City’s best efforts on cost containment. The City will continue to work with experts in this area to analyze the City’s options for reducing the lifecycle net cost and volatility of required contributions. The City implemented one of the recommendations made by an independent actuarial firm and deposited $1 million into a Pension Trust Fund in the prior fiscal year. The City Council also approved an additional contribution of $0.1 million into the Pension Trust Fund in December 2023. The Pension Trust Fund is an investment tool to offset future pension costs and is under the direction of the City. Unlike many municipalities, the City does not provide postretirement health care, and therefore has no liability costs nor contributions to record.

iii
Addressing critical capital asset and infrastructure needs continues to be a top priority. The City’s Capital Improvement Plan (CIP) for FY 2022-2027 illustrates the City’s infrastructure needs, and proposes a plan for making infrastructure investments. Pleasant Hill residents recognized the need for additional local funding for capital improvements, and supported the Measure K sales tax increase in November 2016. Measure K is currently projected to generate in excess of $5.0 million annually. The funds can be used for important City services including repaving and maintaining neighborhood streets; maintaining and upgrading the City’s storm drains; adding new sidewalks and walking and bike paths; constructing a new community library; and funding other City projects and services that Pleasant Hill residents and the City Council have identified as key priorities. The City achieved one of the major objectives with the opening of the new City Library on July 30, 2022. The City Council was cautious during COVID-19 pandemic and reduced allocations of Measure K funds towards projects and programs due to the potential affect to sales tax revenues in previous years. This resulted in additional Measure K funds, as sales tax revenues actually grew due to online purchases and auto sales. The City Council authorized $1.9 million in additional projects for FY 22/23 such as Oak Park Sidewalk Gap Closure ($0.8 million) and Zone 17 Street Resurfacing ($1.0 million), and setting up a debt service reserve for $2.5 million.

Biennial Budget
During FY 21/22, the City adopted the biennial budget for FY 22/23 – FY 23/24. The goal was to create a realistic plan that addresses major revenue and expenditure issues while reflecting the priorities of the City Council and community.

Awards
The Government Finance Officers Association of the United States and Canada (GFOA) awarded the City a Certificate of Achievement for Excellence in Financial Reporting for the fiscal year ending June 30, 2022. The City has received this award for the past 31 years. To receive the award, a jurisdiction must publish an easily readable and efficiently organized ACFR that satisfies GAAP and applicable legal requirements. Staff believes that the ACFR for the fiscal year ended June 30, 2023, again meets the Certificate of Achievement Program’s requirements, and will submit it to the GFOA for consideration.

Acknowledgments
This ACFR is the result of the combined efforts of the City’s Finance Division, other City departments, and Macias Gini & O’Connell LLP. Acknowledgment should also be given to the City Council Budget Committee for its thoughtful, prudent guidance and direction on the financial affairs of the City.

Respectfully submitted,
Ethan Bindernagel Erick Cheung
City Manager Finance Manager
iv

ELECTED OFFICIALS
Timothy M. Flaherty, Mayor
Matthew Rinn, Vice Mayor
Susan Noack, Councilmember
Zac Shess, Councilmember
Allen Vinson, Councilmember
Andrew Kalinowski, City Treasurer (Appointed)

CITY STAFF
Ethan Bindernagel, City Manager
June Catalano, City Manager (retired)
Janet Coleson, City Attorney
Scott Vermillion, Chief of Police
Zach Seal, Economic Development Manager
Troy Fujimoto, City Planner
Geoff Gillette, Public Information Officer
Juanita Davalos, Acting City Clerk
Ann James, Public Works Manager
Ling King, Chief Technology Officer
Erick Cheung, Finance Manager
Ericka Mitchell, Chief Human Resources Officer
Ananthan Kanagasundaram, City Engineer
Geoffrey Simmons, Chief Building Official

CITY OF PLEASANT HILL
v
California Map
vi

CITY OF PLEASANT HILL
Organization Chart
vii
viii
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www.mgocpa.com
Macias Gini & O’Connell LLP
2121 N California Blvd. Suite 750
Walnut Creek, CA 94596
1 Independent Auditor’s Report
Honorable Mayor and Members
of the City Council
City of Pleasant Hill, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Pleasant Hill, California (City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2023, and the respective changes in financial position and, where applicable, cash flows thereof and for the respective budgetary comparison for the General Fund, Traffic Mitigation Fund, Measure J Growth Management Fund, Gas Tax Fund, and American Rescue Plan Act Fund 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 (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards). 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 requirements 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 The City’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

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.

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 2 guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

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

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the schedule of City’s proportionate share of the net pension liability, and the schedule of City contributions, 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 supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual fund financial statements and schedules are presented for purposes of additional analysis and are 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 and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the individual and 3 combining fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual comprehensive financial report. The other information comprises the introductory and statistical sections 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.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 29, 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, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Walnut Creek, California
January 29, 2024
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CITY OF PLEASANT HILL
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
5 The Management’s Discussion and Analysis (MD&A) section of the Annual Comprehensive Financial Report (ACFR) provides City management’s summary of the financial statements and assessment of the City’s financial condition.

Financial Highlights
 The City’s total net position (assets and deferred outflows of resources less liabilities and deferred inflows of resources) was $77.2 million as of June 30, 2023, compared to $64.9 million as of June 30, 2022.  The City’s General Fund reported an ending fund balance of $18.2 million, approximately $14.8 million of which was assigned, $0.5 million of which was restricted, and $2.9 million was unassigned.  The City’s General Fund ending fund balance decreased $3.9 million, mainly due to the expected capital costs of $4.2 million for the completed library.

Overview of the Annual Comprehensive Financial Report
This Annual Comprehensive Financial Report is organized into five sections:
 An Introduction, which includes the Transmittal Letter;  Management’s Discussion and Analysis;
 Basic Financial Statements and Notes;
 Supplemental information; and
 Statistical information.

Basic Financial Statements
The Basic Financial Statements summarize the City’s activities and financial position. They contain the Government-Wide Financial Statements, Fund Financial Statements, and Notes to these financial statements.

Government-Wide Financial Statements
The Government-Wide Financial Statements provide an overview of the City’s complete financial activities. They include the Statement of Net Position and the Statement of Activities.

The Statement of Net Position reports the City’s capital assets and long-term liabilities on a full accrual basis of accounting similar to that used by private-sector businesses in their balance sheets. Over time, changes in net position may serve as an indication of whether the City’s financial position is improving or deteriorating.

The Statement of Activities provides information about the City’s revenues and expenses on a full accrual basis, similar to that used by private-sector businesses in their income statements, with an emphasis on measuring net revenues or expenses for each of the City’s functions. The Statement of Activities explains in detail the change in net position for the year.

The amounts in the Statement of Net Position and the Statement of Activities are separated into Governmental and Business-Type Activities, as follows:
 Governmental Activities - Governmental activities include all of the City’s basic services: general government, public safety, transportation, and community development. These services are supported by the City’s general revenues, such as taxes, and by specific program revenues, such as fees.  Business-Type Activities - The City’s only enterprise activity, Diablo Vista Water, is reported as a business-type activity. The activity is supported by fees and assessments paid by the users.

The Government-Wide Financial Statements can be found on pages 17-18 of this report.

CITY OF PLEASANT HILL
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
6 Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that are intended for specific activities or objectives. A fund is an independent accounting entity with a self-balancing set of accounts.

The City uses fund accounting to ensure compliance with finance-related legal requirements. The Fund Financial Statements provide detailed information about each of the City’s most significant funds, called major funds. All non-major funds are combined into a single column on each fund statement. The General Fund is always considered a major fund. The other funds that the City considers major funds may change from year to year based on City activities.

The Fund Financial Statements display the City’s operations in more detail than the Government-Wide Financial Statements. There are three main types of funds in governmental accounting: governmental funds, proprietary funds, and fiduciary funds, defined below.
 Governmental funds: These are the funds that support most governmental functions. The fund types in this category include general, special revenue, debt service, and capital project funds.  Proprietary funds: These funds are used to account for a government’s ongoing activities that are similar to those found in the private sector. This fund type includes Diablo Vista Water.  Fiduciary funds: These funds are used to account for assets held by a governmental unit in a trustee capacity or as a custodian for individuals, private organizations, or other government agencies.

Governmental Funds
Governmental Fund Financial Statements are prepared on the modified accrual basis of accounting, which means they measure only current financial resources and uses. Long-lived assets, such as capital assets, and long-term liabilities, such as pension and compensated absences, are only presented in the Government-Wide Financial Statements.

Because the focus of governmental funds is narrower than that of Government-Wide Financial Statements, it is useful to compare the two. Reconciliation between the Governmental Fund Balance Sheet and the Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Balances facilitates this analysis.

The City normally adopts a biennial budget on or before June 30 of even-numbered years for each of the ensuing two fiscal years. The Budgetary Comparison Statements are provided to demonstrate performance against budget.

The Governmental Fund Financial Statements and Budgetary Comparison Statements can be found on pages 19- 27 of this report.

Proprietary Funds
Proprietary Funds are prepared on the full accrual basis of accounting. These statements include all of their assets and liabilities, both current and long-term.

The Proprietary Fund Financial Statements can be found on pages 28-30 of this report.

Fiduciary Funds
Fiduciary Funds are used to account for resources held for the benefit of parties outside of the City. They are not reported in the Government-Wide Financial Statements because the resources of those funds are not available to support the City’s own programs.

CITY OF PLEASANT HILL
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
7 The City has two different types of fiduciary funds: a Private-Purpose Trust Fund is used to report trusts or similar arrangements that benefit other entities, and a Custodial Fund is used to report resources held in a custodial capacity for other public entities.

The Fiduciary Fund Financial Statements can be found on pages 31-32 of this report.

Notes to the Financial Statements
The Notes to the financial statements provide additional information that is necessary to acquire a full understanding of the data provided in the Government-Wide and Fund Financial Statements. The Notes to the financial statements can be found on pages 33-63 of this report.

Required Supplementary Information (RSI)
RSI is presented in addition to the basic financial statements and accompanying notes. This required information includes the schedule of City’s proportionate share of the net pension liability and the schedule of City contributions. The RSI can be found on pages 65-66 of this report.

Other Supplementary Information
The combining statements referred to earlier in connection with non-major Governmental Funds are presented immediately following the Notes to the financial statements. Combining statements and schedules can be found on pages 67-89 of this report.

Financial Analysis of Government-Wide Financial Statements The City’s total assets and deferred outflows of resources in governmental activities exceeded its liabilities and deferred outflows of resources by $75.7 million at the end of the fiscal year (“FY”), an increase in net position of $12.1 million.

Condensed Governmental Activities Net Position at June 30 ($ in Millions) 2023 2022
Cash and investments 40.6 $ 40.1 $
Other assets 8.4 8.1
Capital assets 93.3 90.9
Total assets 142.3 139.1
Deferred outflows of resources - pension items 22.7 10.2 Net pension liabilities 52.1 29.0
Long-term debt 18.5 22.8
Other liabilities 13.6 10.4
Total liabilities 84.2 62.2
Deferred inflows of resources - pension items 5.1 23.5
Net position:

Net investment in capital assets 73.1 72.3
Restricted 16.5 13.7
Unrestricted (13.9) (22.4)
Total net position 75.7 $ 63.6 $

CITY OF PLEASANT HILL
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
8 The largest portion of the City’s net position is its net investment in capital assets such as buildings, infrastructure (e.g., streets), and vehicles, less any related debt used to acquire those assets. The City uses these assets to provide services to citizens. This amount is reported separately because it cannot easily be liquidated to pay liabilities.

The restricted portion of the City’s net position represents resources that are subject to external restrictions on how they are used.

The Statement of Net Position for Government-Wide Statements includes three pension-related balances: net pension liability, deferred outflows of resources, and deferred inflows of resources. Further details for the employee benefits can be found in Note 10 to the basic financial statements.

Cash and investments increased by $0.5 million in FY 22/23 due to investment earnings of $0.8 million and receiving $4.2 million in American Rescue Plan Act (ARPA) funds. This was offset by the construction of the new library for $4.2 million.

Net pension liabilities increased by $23.1 million to $52.1 million and deferred outflows of resources for pension items increased by $12.5 million to $22.7 million in FY 22/23, due to investment losses by CalPERS in FY 21/22.

CalPERS always reports financial information a year behind, so the impact of FY 21/22 investment returns of -6.1% are included in the City’s current year financial reports. The assumed rate of return by CalPERS is 6.9%, therefore the lower investment return results in higher pension liability and higher deferred pension costs. It is important to note, CalPERS has disclosed its preliminary investment return is 5.8% for FY 22/23.

Governmental Activities
The table below shows that Governmental Activities net position increased by $12.1 million in FY 22/23.

Changes in Governmental Activities Net Position ($ in Millions) 2023 2022
Expenses
General government 5.3 $ 13.2 $
Public safety 11.2 13.8
Transportation 14.4 9.0
Community development 2.4 2.8
Interest and fiscal charges 0.4 0.4
Total expenses 39.2 33.7
Revenue
Program revenues:

Charges for services 5.5 3.1
Operating contributions and grants 5.3 4.6
Capital contributions and grants 0.1 0.2
Subtotal program revenues 7.9 10.9
General revenues:

Property taxes 9.4 8.7
Sales taxes 11.0 11.0
Measure K transactions and use tax 5.5 5.3
Transient occupancy tax 2.2 2.2
Other taxes 5.9 6.4
Investment earnings 0.8 (0.5)
Miscellaneous 0.1 0.1
Subtotal general revenues 33.2 34.9
Total revenues 41.1 45.8
Changes in net position 1.9 12.1
Net position, beginning 63.6 61.7
Net Position, ending 75.7 $ 63.6 $

CITY OF PLEASANT HILL
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
9 Revenue Highlights
Total governmental revenues increased by $4.7 million to $45.8 million in FY 22/23.

Program Revenues
Program revenues increased by $3.0 million. The increase is primarily due to the City using $2.8 million in ARPA funds in FY 22/23 for various programs and projects (see additional information on ARPA at page 14 of this report). Grant revenues and contributions from other agencies typically vary year over year depending upon the stage of projects underway during the year.

General Revenues
Property taxes increased by $0.7 million due to higher assessed valuations on residential properties that have changed ownership.

Sales tax and Measure K transactions use tax revenues increased by $0.2 million to $16.5 million in FY 22/23.

The increase was due to both strong online sales (resulting in a larger pool allocation) and auto sales for the first six months of the fiscal year that started to level off the second half of the year.

Transient occupancy tax is similar to the prior year at $2.2 million, as both business and personal travel are slow to return to pre-COVID-19 levels.

Expense Highlights
Expenses are classified by governmental function. Total expenses for governmental activities were $33.7 million, which was $5.5 million less than the prior year. Major reasons for the net overall changes are explained below.

General government and public safety expenses decreased from the prior year due to accounting for deferred pension expenses in the current year for -$2.3 million and was $10.0 million in the prior year. The pension expense mainly affects these two functions since this is where most City personnel are accounted for. This will vary annually pending on CalPERS investment returns (21.3% in prior year and -6.1% current year) and/or assumption changes, since these factors can have a significant impact on future pension contributions. Transportation expenses were higher by $5.4 million due to the composition and timing of projects, especially as some projects were delayed due to COVID-19 in previous years. Most of the transportation expenses incurred are primarily in the Gas Tax Fund.

The following table presents the net expense of each of the City’s governmental activities. Net expense is defined as total program cost over the revenue generated by the program through charges for services, grants, and contributions.

Net Expenses of Governmental Activities ($ in Millions) 2023 2022
General government (1.8) $ (11.9) $
Public safety (10.9) (13.4)
Transportation (9.8) (5.1)
Community development 0.3 (0.4)
Interest and fiscal charges (0.4) (0.4)
Total $ (31.2) (22.6) $

CITY OF PLEASANT HILL
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
10 Overall, program revenues collected are significantly lower than the program expenses. Consequently, the City is very dependent upon general revenues, particularly property and sales taxes. In April 2022, the City Council adopted by resolution an updated General Fund reserve policy that kept the $5 million Reserve for Working Capital and modified the $5 million Budget Stabilization Reserve. The Budget Stabilization Reserve is $4 million with $1 million going to the Pension Rate Stabilization Reserve. The $1 million was deposited into a Section 115 Pension Trust to help the City address pension costs as interest income is earned over time. This contingency reserve is available for working capital needs and to mitigate the impacts of an economic downturn or unplanned major expenditure.

Business-Type Activities
The Statement of Net Position and Statement of Activities present a summary of the City’s Business-Type Activities, which only comprises the City’s Diablo Vista Water Enterprise Fund. The City spent $0.6 million in water system infrastructure additions in FY 22/23.

Condensed Business-Type Activity Net Position ($ in Millions) 2023 2022
Cash and investments 0.5 $ 0.9 $
Capital assets 1.0 0.4
Total assets 1.5 1.3
Net position:

Net investment in capital assets 1.0 0.4
Unrestricted 0.5 0.9
Total net position 1.5 $ 1.3 $
The net position of the business-type activity was $1.5 million at June 30, 2023, which consisted of a $1.0 million investment in capital assets and $0.5 million of unrestricted net position. The overall net position is $0.2 million higher than the prior fiscal year.

Changes in Business-type Activity Net Position ($ in Millions) 2023 2022
Expenses
Diablo Vista Water 0.3 $ 0.3 $
Revenue
Program revenues:

Charges for services 0.2 0.1
General revenues 0.3 0.3
Total revenues 0.4 0.5
Changes in net position 0.1 0.2
Beginning net position 1.3 1.2
Ending net position 1.5 $ 1.3 $

CITY OF PLEASANT HILL
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
11 Financial Analysis of Governmental Funds
As discussed earlier, the City uses governmental fund accounting to ensure compliance with finance-related legal requirements.

Governmental Funds
The City’s Governmental Funds Statement provides information on short term inflows, outflows and the balance of spendable resources. Unassigned fund balance illustrates the City’s net resources available for discretionary use.

As of June 30, 2023, the City’s governmental funds reported a combined fund balance of $38.2 million.

Approximately $3.0 million of the combined total fund balance is unassigned and available for spending at the City’s discretion. The remainder of the fund balance is either restricted ($15.3 million), committed ($1.7 million), or assigned ($18.2 million). The restricted portion includes $0.5 million from remaining loan proceeds for the library project in the General Fund, $5.2 million for Low and Moderate Income Housing Funds, and $4.9 million related to street improvements with Measure J and Gas Tax Funds. The assigned portion includes approximately $0.8 million for General Fund encumbrances, with $3.9 million related to Measure K programs and projects, $3.5 million for various capital projects, and $10.0 million for contingencies associated with cash flow, pension stabilization, economic uncertainty or catastrophic events.

General Fund
Balance Sheet
The General Fund is the primary operating fund of the City. At the end of FY 22/23, the fund balance for the General Fund was $18.2 million, compared to $22.1 million in the prior year. The $3.9 million decrease was due to capital outlay costs of $4.2 million for the construction of the completed library. This project was financed when the City entered into a lease financing private placement loan transaction with the Bank of Montreal (formerly Bank of the West) for $26.4 million.

Revenues
Total General Fund revenues, excluding other financing sources, increased by $1.4 million over FY 21/22 for a total of $36.3 million for FY 22/23. The year-over-year change in revenue sources is noted below.

General Fund Revenues for the Year Ended June 30 ($ in Millions) 2023 2022 Incr./(Decr.)
Revenues by Sources:

Property Tax 8.7 $ 8.0 $ 0.7 $
Sales Tax 10.9 11.4 (0.5)
Measure K Transaction & Use Tax 5.5 5.3 0.2
Transient Occupancy Tax 2.2 2.2 -
Other Taxes 5.9 6.2 (0.3)
Licenses and Permits 1.7 1.4 0.3
Intergovernmental 0.1 0.3 (0.2)
Charges for Services 0.6 0.5 0.1
Use of Money and Property 0.5 (0.5) 1.0
Other 0.2 0.1 0.1
Total Revenues $ 34.9 36.3 $ 1.4 $

CITY OF PLEASANT HILL
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
12 Property taxes increased by $0.7 million year-over-year to $8.7 million. The increase was primarily due to higher assessed valuations on residential properties that have changed ownership.

Sales tax revenues and Measure K transactions and use tax for the fiscal year leveled off from the previous year for a combined $16.4 million compared to $16.7 million in the previous year. The City continued to see improving sales tax growth in the first six months from strong auto sales and additional taxes from marketplace facilitators from online sales, which led to a larger pool allocation. This leveled off as concerns of inflation and rising interest rates tempered sales tax revenues in the second half the fiscal year.

Transient Occupancy Tax (TOT) revenues was heavily impacted by the COVID-19 pandemic due to less travel for personal and business purposes. TOT revenues have recovered slowly but have not returned to pre-COVID19 levels. The revenues were $2.2 million in FY 22/23 and FY 21/22.

Use of Money and Property increased $1.0 million due to rising interest rates and adjusting for the prior year negative fair value adjustment. This adjustment resulted from the requirement by the Governmental Accounting Standard Board Statement No. 31 (GASB 31), to record the fair value of investments at June 30. The intent of GASB 31 was to reflect the resale value of the City’s investments at a point in time. The GASB 31 unrealized investment loss in the prior year was $0.6 million due to rising interest rates. In general, the City holds investments to maturity and the fair value adjustment has no impact to ongoing operations but is required to be reported.

Further details can be found in Note 3 to the basic financial statements.

Expenditures
Total General Fund expenditures decreased by $9.1 million over the FY 21/22 amount for a total of $34.0 million for FY 22/23. The year-over-year change in significant expenditures by function is noted below.

General Fund Expenditures for the Year Ended June 30 ($ in Millions) 2023 2022 Incr./(Decr.)
Expenditures by Function and Type
General Government 9.7 $ 9.0 $ 0.7 $
Public Safety 12.2 12.3 (0.1)
Transportation 3.5 3.7 (0.2)
Community Development 2.3 2.2 0.1
Capital Outlay 3.8 13.4 (9.6)
Debt Service - Principal 2.1 2.1 -
Debt Service - Interest and
fiscal charges 0.4 0.4 -
Total Expenditures $ 43.1 34.0 $ (9.1) $
The lower capital outlay expenditures of $3.8 million were mainly due to the completion of the library project.

General government is higher due to higher pension costs and facilities expense since the library is now operational. Public safety, Transportation, and Community Development were similar to the previous year. FY 22/23 is the second year of debt service on the lease financing the private placement loan for $2.5 million.

CITY OF PLEASANT HILL
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
13 Other Financing Sources (Uses)
General Fund Other Financing Sources (Uses) for the Year Ended June 30 ($ in Millions) 2023 2022 Incr./(Decr.)
Other Financing Sources (Uses)
Transfers In 0.6 $ 0.7 $ (0.1) $
Transfers Out (6.7) (3.4) (3.3)
Total Other Financing Sources (Uses) $ (2.7) (6.1) $ (3.4) $ During FY 22/23, the City transferred $6.7 million out of General Fund, whereas $3.4 million was transferred during the prior year. Transfers to other funds were $3.3 million higher than prior year due to available Measure K sales tax revenues: a) General Fund transfers to the Gas Tax fund increased by $2.9 million to $4.4 million; b) General Fund transfers to the NPDES fund increased by $0.4 million to $0.5 million. The transfer of funds fluctuates year-to-year due to the discretionary operating or capital needs among funds as directed by the managing departments.

Traffic Mitigation Fund
The Traffic Mitigation fund accounts for revenues such as grants and fees assessed on new development. Traffic Mitigation funds are primarily used for the enhancement and expansion to the City’s transit, bicycle, and pedestrian facilities. Revenues vary year to year based on the amount of fees collected by the City. During FY 22/23, the fund received charges for services and interest of $0.6 million and transferred $0.5 million to the Gas Tax Fund for capital projects. The fund balance was $0.3 million as of June 30, 2023.

Measure J Growth Management Fund
The Measure J Growth Management fund accounts for resources for transportation improvement and maintenance that are distributed by the Contra Costa Transportation Authority to the City annually from the countywide Measure J program. Measure J is a one-half cent countywide transportation sales tax approved by Contra Costa County voters in 2004 to help generate funding for various transportation improvement and maintenance programs throughout Contra Costa County.

Total revenue and expenditures, including transfers between funds, were $1.8 million and $0.4 million, respectively. It is typical for revenue and expenditures to vary annually due to the timing of projects and reimbursements for grants. The fund balance was $1.4 million as of June 30, 2023.

Gas Tax Fund
The Gas Tax fund accounts for gas taxes apportioned by the State and grants for capital projects. The authorization for the levy and expenditure of gas taxes is codified in the California Streets and Highway Code, Sections 2103- 2107. Gas tax is apportioned to cities based on three factors: vehicle registration, assessed valuation, and population. These funds are restricted to engineering and administrative costs related to street projects. On April 28, 2017, Senate Bill 1 (SB 1) was signed into law by the California Governor. SB 1 imposed additional fuel tax and vehicle fees to supplement funding for roadway maintenance and other transportation needs in the State. A portion of SB 1 is allocated to the City for roadway maintenance or improvement projects.

CITY OF PLEASANT HILL
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
14 The Gas Tax fund had an excess of revenues over expenditures, including transfers to/from other funds, of $1.3 million during FY 22/23. Grant revenue and gas tax apportionments were $1.7 million, transfers in from other funds were $5.3 million, and expenditures were $5.8 million. During the year, $4.4 million in Measure K funds were transferred in from the General Fund, and $0.5 million was transferred in from Traffic Mitigation Fund.

These funds will be used for the street program and pedestrian and bicycle program. The Gas Tax fund has a fund balance of $6.2 million at June 30, 2023.

Low and Moderate Income Housing Asset Fund
Redevelopment agencies in California were dissolved effective February 1, 2012. Successor agencies and oversight boards oversee the dissolution and the winding down of redevelopment activities. At the City Council meeting on January 9, 2012, the City Council adopted Resolution 3-12 determining it would serve as Successor Agency to the Pleasant Hill Redevelopment Agency, and elected to serve as the Housing Successor Agency, which would retain the housing assets, functions, and powers performed by the former Agency. The City no longer serves as the Successor Agency to the Redevelopment Agency; however, it continues to serve as the Housing Successor Agency. The Housing Successor Agency’s financial data and transactions are reported in the City’s Low and Moderate Income Housing Asset major governmental fund. The Low and Moderate Income Housing Asset Fund had a restricted fund balance of $5.2 million as of June 30, 2023. The fund balance remains consistent from prior years when the housing assets and liabilities were transferred to this fund.

American Rescue Plan Act Fund
The American Rescue Plan Act (ARPA) fund accounts for the resources provided by the federal government to assist with the impacts of COVID-19. ARPA established a State and Local Fiscal Recovery Fund, which provided $130 billion for local governments to enable them to continue to support the public health response and assist with economic recovery. The City received an ARPA allocation for $8.3 million, which is paid in two tranches. The first tranche was received in July 2021 for $4.2 million and the second funding tranche was received in July 2022. Eligible costs must be expended between March 3, 2021 and December 31, 2026, and obligated by December 31, 2024.

The City obligated $8.3 million and spent $3.9 million as of June 30, 2023. In FY 22/23, the City spent approximately $2.8 million in ARPA funds for the following major projects:
a. $0.9 million for the Gregory Garden Storm Drain Project b. $0.7 million for updated radio equipment for the Police Department c. $0.4 million for crossing guards, CORE homeless program and library services d. $0.4 million for the Diablo View Storm Drain Project e. $0.4 million for essential employee retention
Other Governmental Funds
These funds are not presented separately in the basic financial statements, but are individually presented as other supplementary information.

CITY OF PLEASANT HILL
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
15 Financial Analysis of Enterprise Fund
Diablo Vista Water System Enterprise Fund
The Diablo Vista Water (“DVW”) system provides raw canal water for irrigation purposes to 474 homes. In order to maintain the system, a usage fee of $150 per household per year was adopted by City Council Ordinance No. 786 on June 21, 2004, and took effect in FY 2004/05. An additional Capital Improvements fee of $135 per household per year was also approved, and was phased in over three years, beginning in FY 2004/05. The fees help to provide a financially solvent system. See analysis of the fund in the Business-type Activities analysis above.

General Fund Budgetary Highlights
Revenues and other financing sources, were originally budgeted at $34.3 million and increased to $38.1 million in the final budget. Expenditures, including transfers to other funds, were originally budgeted at $38.1 million and increased to $47.0 million in the final budget.

The FY 22/23 final budget projected the General Fund would have a deficit of $8.9 million. It is important to note that the General Fund includes Measure K, and $4.2 million in capital costs for the library is funded by $26.4 million in debt financing. At the close of FY 22/23, the actual deficit was $3.9 million. Significant items contributing to the variance of $5.0 million are as follows:

Total revenues were $1.9 million higher than budgeted. The most significant increase was due to higher property tax revenues based on valuations for $0.4 million, licenses and permits revenues for $0.7 million for one-time payments for a new apartment project and new home project, and use of money of property due to rising interest rates for $0.3 million.

Total expenditures were $3.2 million lower than budgeted. This variance was primarily due to the timing of expenditures for the Measure K library project close out costs of $1.1 million. Public safety was under budget for $0.7 million, mainly due to salary savings from vacancies. Transportation was under budget for $0.8 million from salary savings and underspending in engineering services.

Total other financing sources/uses were $0.1 million higher than budget. The budget transfers consist of funding for vehicles, information technology, and capital projects and programs related to the Measure K funds. The increase in net transfers from $1.6 million in the original budget to $6.1 million in the final budget is the rollover of capital budget related to the Library Project from the previous fiscal year due to project timing.

Capital Assets
The City’s infrastructure capital assets include streets, storm drains, streetlights, and traffic control devices. Each year, based on the determination of the City’s Engineering Division, completed projects that meet certain criteria are capitalized. Capitalizable projects that are under construction at fiscal year-end are recorded as constructionin-progress and are capitalized as depreciable assets in the year they are completed. Capital assets and accumulated depreciation that are recorded in the City’s financial statements are shown in the table below. Further details for the capital assets can be found in Note 7 to the basic financial statements.

CITY OF PLEASANT HILL
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
16 Capital Assets as of June 30 ($ in Millions)
2023 2022
Governmental Activities:

Land 3.4 $ 3.4 $
Construction in progress 1.5 28.4
Buildings and improvements 46.2 15.1
Equipment and furniture 12.8 11.2
Streets and roads 68.6 68.6
Curbs and gutters 16.9 16.9
Storm drains 11.0 11.0
Street lights 4.1 4.1
Traffic control devices 6.7 6.7
Less: accumulated depreciation (77.9) (74.5)
Total 93.3 $ 90.9 $
Business-type Activities:

Water system infrastructure 1.4 $ 0.8 $
Less: accumulated depreciation (0.4) (0.4)
Total 1.0 $ 0.4 $
During FY 22/23, buildings and improvements increased $31.1 million with the opening of the new City Library, which caused construction in progress to decrease. The City also purchased $1.6 million in equipment and furniture during the year with additions of $0.7 million in police radios with ARPA funding, $0.3 million in police and maintenance vehicles after a delay due to supply chain issues, and $0.2 million in equipment in the Council Chambers and various conference rooms to assist with virtual meetings. In addition, the City improved the water system infrastructure by adding $0.6 million in improvements to the Diablo Vista Water system. The City depreciates its depreciable capital assets over their estimated useful lives. Current year depreciation expenses totaled $3.5 million. Additional information on the estimated useful life of each capital asset category may be found in Note 1(H).

Long-Term Debt
The City issued $26.4 million in long-term debt for the construction of a new library building, and a portion of the Oak Park Monticello Backbone Infrastructure Improvements through a private placement loan with a bank on August 1, 2020. As of June 30, 2023, total debt service remaining on the capital financing is $20.7 million with annual debt service of $2.5 million. Further details for the long-term debt can be found in Note 8 to the basic financial statements.

Economic Factors
The economic factors of the City are discussed in the accompanying Transmittal Letter.

Request for Information
This Annual Comprehensive Financial Report (ACFR) is intended to provide residents, taxpayers, investors, and creditors with a detailed overview of the City’s finances. Questions about this report should be directed to the Finance Department at 100 Gregory Lane, Pleasant Hill, CA 94523.

CITY OF PLEASANT HILL
Statement of Net Position
June 30, 2023
Governmental Business-Type
Activities Activities Total
Assets:

Cash and investments held in City Treasury 40,563,488 $ 477,265 $ 41,040,753 $ Receivables:

Accounts and others 4,224,618 - 4,224,618
Interest 295,312 3,971 299,283
Notes and loans receivable, net 2,619,858 - 2,619,858
Land held for redevelopment 191,049 - 191,049
Restricted cash and investments with trustees 1,044,835 - 1,044,835 Capital assets:

Nondepreciable 4,940,962 - 4,940,962
Depreciable, net of accumulated depreciation 88,391,282 1,034,920 89,426,202 Total assets 142,271,404 1,516,156 143,787,560
Deferred outflows of resources - Pension items 22,742,569 - 22,742,569 Liabilities:

Accounts payable and accrued liabilities 2,063,351 53,597 2,116,948 Deposits payable 2,548,095 - 2,548,095
Unearned revenue 4,441,277 - 4,441,277
Interest payable 28,662 - 28,662
Compensated absences payable:

Due within one year 470,000 - 470,000
Due in more than one year 1,879,548 - 1,879,548
Noncurrent liabilities:

Long-term debt - Due within one year 2,139,956 - 2,139,956 Long-term debt - Due in more than one year 18,530,742 - 18,530,742 Net pension liability - Due in more than one year 52,056,955 - 52,056,955 Total liabilities 84,158,586 53,597 84,212,183
Deferred inflows of resources - Pension items 5,110,838 - 5,110,838 Net position:

Net investment in capital assets 73,152,809 1,034,920 74,187,729 Restricted for:

Special revenue:

General government 2,027,676 - 2,027,676
Public safety projects 654,172 - 654,172
Transportation projects 5,551,053 - 5,551,053
Community development projects 8,048,869 - 8,048,869
Capital projects 226,025 - 226,025
Total restricted net position 16,507,795 - 16,507,795
Unrestricted (13,916,055) 427,639 (13,488,416)
Total net position $ 75,744,549 $ 1,462,559 $ 77,207,108 See accompanying notes to basic financial statements.
17 CITY OF PLEASANT HILL
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 Contributions Contributions Activities Activities Total Governmental Activities:

General government 5,231,155 $ 253,534 $ 3,051,537 $ 96,920 $ (1,829,164) $ - $ (1,829,164) $ Public safety 126,900 11,198,560 175,024 - (10,896,636) - (10,896,636) Transportation 14,347,929 2,394,612 2,113,646 - (9,839,671) - (9,839,671) Community development 2,762,111 2,478,310 5,555 - 289,356 - 289,356 Interest and fiscal charges 386,463 - - - (386,463) - (386,463) Total governmental activities 33,642,417 5,537,157 5,345,762 96,920 (22,662,578) - (22,662,578) Business-type activities:

Diablo Vista Water System 272,115 133,950 - - - (138,165) (138,165) Total business-type activities 272,115 133,950 - - - (138,165) (138,165) $ 5,671,107 33,914,532 $ 5,345,762 $ 96,920 $ (22,662,578) (138,165) (22,800,743) General revenues:

Taxes:

Property taxes 287,428 9,422,570 9,709,998
Sales taxes - 10,999,559 10,999,559
Measure K transactions & use tax - 5,478,120 5,478,120
Transient occupancy taxes - 2,231,880 2,231,880
Franchise taxes - 2,370,149 2,370,149
Other taxes - 3,480,028 3,480,028
Investment earnings 16,608 788,597 805,205
Miscellaneous - 57,696 57,696
Total general revenues 304,036 34,828,599 35,132,635
Change in net position 165,871 12,166,021 12,331,892
Net position, beginning of year 1,296,688 63,578,528 64,875,216 Net position, end of year $ 1,462,559 75,744,549 $ 77,207,108 $ See accompanying notes to basic financial statements.
18 CITY OF PLEASANT HILL
Governmental Funds
Balance Sheet
June 30, 2023
Low and
Measure J Moderate American Other
Traffic Growth Income Rescue Plan Governmental
General Mitigation Management Gas Tax Housing Asset Act Funds Total Assets:

Cash and investments held in City Treasury $ 311,074 17,950,309 $ 1,489,241 $ 6,134,679 $ 3,024,861 $ 4,492,676 $ 7,160,648 $ 40,563,488 $ Receivables:

Accounts and other 3,826,491 - 1,140 243,195 12,712 - 141,080 4,224,618 Interest 205,258 2,585 12,414 39,425 - - 35,630 295,312 Due from other funds 5,224 - - - - - - 5,224
Notes and loans receivable, net 100,000 - - - 2,519,858 - - 2,619,858 Land held for redevelopment - - - - 191,049 - - 191,049 Restricted cash and investments with trustees 1,044,835 - - - - - - 1,044,835 Total assets 23,132,117 $ 313,659 $ 1,502,795 $ 6,417,299 $ 5,748,480 $ 4,492,676 $ 7,337,358 $ 48,944,384 $ Liabilities, Deferred Inflows of Resources
and Fund Balances:

Liabilities:

Accounts payable and
accrued liabilities 1,204,457 $ 34,911 $ 58,649 $ 214,714 $ 275 $ 51,399 $ 498,946 $ 2,063,351 $ Deposits payable 2,548,095 - - - - - - 2,548,095
Unearned revenue - - - - - 4,441,277 - 4,441,277
Due to other funds - - - - - - 5,224 5,224
Total liabilities 3,752,552 34,911 58,649 214,714 275 4,492,676 504,170 9,057,947 Deferred inflows of resources - unavailable revenue 1,136,028 - - - 594,987 - - 1,731,015 Fund balances (deficits):

Restricted 278,748 491,263 1,444,146 3,414,108 5,153,218 - 4,491,784 15,273,267 Committed - - - - - - 1,661,214 1,661,214
Assigned - 14,783,715 - 2,788,477 - - 685,414 18,257,606 Unassigned - 2,968,559 - - - - 2,963,335 (5,224)
Total fund balances 18,243,537 278,748 1,444,146 6,202,585 5,153,218 - 6,833,188 38,155,422 Total liabilities, deferred inflows of
resources and fund balances 23,132,117 $ 313,659 $ 1,502,795 $ 6,417,299 $ 5,748,480 $ 4,492,676 $ 7,337,358 $ 48,944,384 $ See accompanying notes to basic financial statements.
19 CITY OF PLEASANT HILL
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position - Governmental Activities June 30, 2023
Total fund balances reported on the governmental funds balance sheet 38,155,422 $ 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. 93,332,244 Deferred outflows of resources and deferred inflows of resources:

Certain items are not financial resources, and therefore, are not reported in the governmental funds:

Deferred outflows of resources - Pension items 22,742,569 Deferred inflows of resources - Pension items (5,110,838) Receivables not available:

Certain receivables are not available to pay for current period expenditures and therefore are deferred in the governmental funds. 1,731,015 Long-term liabilities:

The liabilities below are not due and payable in the current period and therefore are not reported in the governmental funds:

Bonds payable (20,670,698)
Interest payable (28,662)
Compensated absences (2,349,548)
Net pension liability (52,056,955)
Net position of governmental activities 75,744,549 $
See accompanying notes to basic financial statements.
20 CITY OF PLEASANT HILL
Governmental Funds
Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended June 30, 2023
Low and
Measure J Moderate American Other
Traffic Growth Income Rescue Plan Governmental
General Mitigation Management Gas Tax Housing Asset Act Funds Total Revenues:

Property taxes 8,674,191 $ - $ - $ - $ - $ - $ 748,379 $ 9,422,570 $ Sales taxes 10,905,858 - - - - - - 10,905,858
Measure K transactions & use tax 5,505,620 - - - - - - 5,505,620 Transient occupancy taxes 2,231,880 - - - - - - 2,231,880 Other taxes and -
special assessments - 5,850,177 - - - - 834,429 6,684,606 Licenses and permits 1,706,870 - - - - - - 1,706,870
Intergovernmental 116,261 30 1,708,822 1,683,726 - 2,877,902 374,257 6,760,998 Charges for services 622,308 616,850 - - - - 362,447 1,601,605 Fines and forfeitures 15,289 - - - - - 31,832 47,121
Use of money and property 7,106 503,395 22,714 130,689 27,129 - 97,567 788,600 Other - 152,321 - - - - - 152,321
Total revenues 36,284,170 623,986 1,731,536 1,814,415 27,129 2,877,902 2,448,911 45,808,049 Expenditures:

Current:

General government - 9,738,138 - - - 100,451 230,743 10,069,332 Public safety - 12,195,990 - - - - 180,903 12,376,893
Transportation 3,557,581 - 359,540 5,777,784 - - 971,926 10,666,831 Community development - 2,273,639 40,226 - 46,321 73,318 369,249 2,802,753 Capital outlay - 3,739,648 - - - 672,510 3,191,591 7,603,749 Debt service:

Principal 2,102,993 - - - - - - 2,102,993
Interest and fiscal charges 389,379 - - - - - - 389,379 Total expenditures 33,997,368 - 399,766 5,777,784 46,321 846,279 4,944,412 46,011,930 Excess (deficiency) of revenues
over (under) expenditures 2,286,802 623,986 1,331,770 (3,963,369) 2,031,623 (19,192) (2,495,501) (203,881) Other financing sources (uses):

Transfers in - 589,033 50,000 5,289,700 - - 3,780,237 9,708,970 Transfers out (6,730,647) - (521,700) - - (2,031,623) (425,000) (9,708,970) Total other financing
sources (uses) (6,141,614) 50,000 (521,700) 5,289,700 - 3,355,237 (2,031,623) - Change in fund balances 102,286 (3,854,812) 1,381,770 1,326,331 - (19,192) 859,736 (203,881) Fund balances, beginning of year 22,098,349 176,462 62,376 4,876,254 5,172,410 - 5,973,452 38,359,303 Fund balances, end of year $ 278,748 18,243,537 $ 1,444,146 $ 6,202,585 $ 5,153,218 $ - $ 6,833,188 $ 38,155,422 $ See accompanying notes to basic financial statements.
21 CITY OF PLEASANT HILL
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities - Governmental Activities For the Year Ended June 30, 2023
Net change in fund balances - total governmental funds (203,881) $ 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.

Expenditures for capital assets reported as:

Capital outlay 7,603,749
Amounts reported in capital outlay that are not capitalizable (1 ,750,791) Less current year depreciation (3,447,621)
Pension transactions:

Pension contribution made subsequent to the measurement date is an expenditure in the governmental funds, but reported as a deferred outflows of resources in the government-wide financial statements 5,611,338
Pension expense reported in the statement of activities does not require the use of current financial resources and, therefore, is not reported as an expenditure in governmental funds 2,314,254 Long-term debt transactions:

Repayment of debt principal is an expenditure in the governmental funds, but in the statement of net position the repayment reduces long-term liabilities. 2,102,993 Accrual of noncurrent items:

The amounts below included in the statement of activities do not provide or use current financial resources and therefore are not reported as revenues or expenditures in governmental funds:

Change in compensated absences (67,325)
Change in interest payable 2,916
Change in deferred inflows of resources - unavailable revenue 38 9 Change in net position of governmental activities 12,166,021 $ See accompanying notes to basic financial statements.
22 CITY OF PLEASANT HILL
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Property taxes 3,913,000 $ 3,913,000 $ 4,362,050 $ 449,050 $ Property tax in lieu of Vehicle License Fee 4,297,800 4,297,800 4,312,141 14,341 Sales taxes 10,795,600 10,795,600 10,905,858 110,258
Measure K transaction & use tax 5,366,000 5,366,000 5,505,620 139,620 Transient occupancy taxes 2,324,300 2,324,300 2,231,880 (92,420) Other taxes 5,601,435 5,601,435 5,850,177 248,742
Licenses and permits 1,024,172 1,024,172 1,706,870 682,698 Intergovernmental 101,958 101,958 116,261 14,303
Charges for current services 466,192 466,192 622,308 156,116 Fines and forfeitures 30,000 30,000 15,289 (14,711)
Use of money and property 167,120 126,950 503,395 336,275 Other 258,840 258,840 152,321 (106,519)
Total revenues 34,306,247 34,346,417 36,284,170 1,937,753 Expenditures:

Current:

General government:

City Council 167,034 167,034 150,669 16,365
City Manager 965,108 978,669 1,033,787 (68,679)
City Attorney 526,321 526,321 287,730 238,591
City Clerk 211,312 211,312 192,493 18,819
City Treasurer 11,433 11,433 10,852 581
Finance 914,013 914,013 925,967 (11,954)
Computer services 470,523 477,192 472,301 4,891
Human Resources 645,333 652,660 699,111 (46,451)
Risk management 1,139,814 1,139,814 1,034,173 105,641
City Hall facility 148,325 148,325 153,560 (5,235)
Measure K 451,240 451,240 177,472 273,768
Non-departmental 4,493,816 4,493,816 4,600,023 (106,207) Total general government 10,158,268 10,157,833 9,738,138 420,130 Public safety:

Police 12,764,757 12,883,850 12,195,990 687,860
Transportation:

Public works administration 1,676,174 1,242,568 1,187,413 488,761 Public works maintenance 2,684,193 2,715,877 2,370,168 345,709 Total transportation 4,392,051 3,926,761 3,557,581 834,470 Community development:

Planning 1,103,661 1,185,736 1,137,921 47,815
Building inspection 522,336 522,336 495,572 26,764
Community relations 195,381 187,440 200,227 (4,846)
Economic development 490,674 489,941 439,919 50,755
Total community development 2,394,127 2,303,378 2,273,639 120,488 Capital outlay - Measure K 4,869,486 4,869,486 3,739,648 1,129,838 Debt Service:

Principal 2,102,993 2,102,993 2,102,993 -
Interest and fiscal charges 389,379 389,379 389,379 -
Total debt service 2,492,372 2,492,372 2,492,372 -
Total expenditures 36,514,587 37,190,154 33,997,368 3,192,786 Excess of revenues over expenditures (2,208,340) (2,843,737) 2,286,802 5,130,539 Other financing sources (uses):

Transfers in 3,725,785 30,000 589,033 (3,136,752)
Transfers out (9,786,054) (1,599,148) (6,730,647) 3,055,407 Total other financing sources (uses) (1,569,148) (6,060,269) (6,141,614) (81,345) Change in fund balance (3,777,488) $ (8,904,006) $ (3,854,812) 5,049,194 $ Fund balance, beginning of year 22,098,349
Fund balance, end of year $ 18,243,537
See accompanying notes to basic financial statements.
23 CITY OF PLEASANT HILL
Traffic Mitigation Fund
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental - $ - $ 30 $ 30 $
Charges for services 1,023,036 1,023,036 616,850 (406,186) Use of money and property 367 367 7,106 6,739
Total revenues 1,023,403 1,023,403 623,986 (399,417)
Expenditures:

Current:

Transportation 8,932 8,932 - 8,932
Excess (deficiency) of revenues over (under) expenditures 1,014,471 1,014,471 623,986 (390,485) Other financing uses:

Transfers out (521,700) (521,700) (521,700) -
Change in fund balance 492,771 $ 492,771 $ 102,286 (390,485) $ Fund balance, beginning of year 176,462
Fund balance, end of year 278,748 $
See accompanying notes to basic financial statements.
24 CITY OF PLEASANT HILL
Measure J Growth Management Fund
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental 810,000 $ 810,000 $ 1,708,822 $ 898,822 $ Use of money and property 773 773 22,714 21,941
Total revenues 810,773 810,773 1,731,536 920,763
Expenditures:

Current:

Transportation 840,000 768,176 359,540 408,636
Community development 36,838 36,838 40,226 (3,388)
Total expenditures 876,838 805,014 399,766 405,248
Excess (deficiency) of revenues over (under) expenditures (66,065) 5,759 1,331,770 1,326,011 Other financing sources (uses):

Transfers in 50,000 50,000 50,000 -
Change in fund balance (16,065) $ 55,759 $ 1,381,770 1,326,011 $ Fund balance, beginning of year 62,376
Fund balance, end of year 1,444,146 $
See accompanying notes to basic financial statements.
25 CITY OF PLEASANT HILL
Gas Tax Fund
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental 1,565,473 $ 2,345,840 $ 1,683,726 $ (662,114) $ Use of money and property 8,755 - 130,689 121,934
Total revenues 1,565,473 2,354,595 1,814,415 (540,180)
Expenditures:

Current:

Transportation 8,341,588 10,349,769 5,777,784 4,571,985 Excess (deficiency) of revenues over (under) expenditures (6,776,115) (7,995,174) (3,963,369) 4,031,805 Other financing sources (uses):

Transfers in 2,143,000 5,289,700 5,289,700 -
Change in fund balance (4,633,115) $ (2,705,474) $ 1,326,331 4,031,805 $ Fund balance, beginning of year 4,876,254
Fund balance, end of year 6,202,585 $
See accompanying notes to basic financial statements.
26 CITY OF PLEASANT HILL
American Rescue Plan Act Fund
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental 4,167,115 $ 4,167,115 $ 2,877,902 $ (1,289,213) $ Expenditures:

Current:

General government 450,000 557,546 100,451 457,095
Community development 259,500 259,500 73,318 186,182
Capital outlay 674,949 - 672,510 2,439
Total expenditures 709,500 1,491,995 846,279 645,716
Excess of revenues over expenditures 3,457,615 2,675,120 2,031,623 (643,497) Other financing sources (uses):

Transfers out (2,640,000) (3,190,679) (2,031,623) 1,159,056 Change in fund balance 817,615 $ (515,559) $ - 515,559 $ Fund balance, beginning of year -
Fund balance, end of year $ -
See accompanying notes to basic financial statements.
27 CITY OF PLEASANT HILL
Proprietary Fund
Statement of Fund Net Position
June 30, 2023
Diablo Vista
Water System
Enterprise Fund
Assets:

Current assets:

Cash and investments held in City Treasury 477,265 $
Interest receivable 3,971
Total current assets 481,236
Noncurrent assets:

Capital assets:

Depreciable, net of accumulated depreciation 1,034,920
Total assets 1,516,156
Liabilities:

Current liabilities:

Accounts payable and accrued liabilities 53,597
Net position:

Net investment in capital assets 1,034,920
Unrestricted 427,639
Total net position 1,462,559 $
See accompanying notes to basic financial statements.
28 CITY OF PLEASANT HILL
Proprietary Fund
Statement of Revenues, Expenses and Changes in Fund Net Position For the Year Ended June 30, 2023
Diablo Vista
Water System
Enterprise Fund
Operating revenues:

Water district assessments and charges 133,950 $
Operating expenses:

Purchased water 175,467
Personnel services 11,138
Contract services 12,625
Administration and office utilities 25,078
Repairs and maintenance 35,539
Depreciation 12,268
Total operating expenses 272,115
Operating loss (138,165)
Nonoperating revenues:

Property taxes 287,428
Interest income 16,608
Total nonoperating revenues 304,036
Change in net position 165,871
Net position, beginning of year 1,296,688
Net position, end of year 1,462,559 $
See accompanying notes to basic financial statements.
29 CITY OF PLEASANT HILL
Proprietary Fund
Statement of Cash Flows
For the Year Ended June 30, 2023
Diablo Vista
Water System
Enterprise Fund
Cash flows from operating activities:

Cash received from customers 133,950 $
Cash payments to suppliers for goods and services (231,079) Cash payments to other funds for services provided (11,138) Net cash used in operating activities (108,267)
Cash flows from noncapital financing activities:

Property tax received 287,428
Cash flows from capital and related financing activities:

Acquisition of capital assets (607,248)
Cash flows from investing activities:

Interest income received 14,328
Net change in cash and cash equivalents (413,759)
Cash and cash equivalents, beginning of year 891,024
Cash and cash equivalents, end of year $ 477,265
Reconciliation of operating loss to
net cash used in operating activities:

Operating loss (138,165) $
Adjustments to reconcile operating loss to
net cash used in operating activities:

Depreciation 12,268
Change in accounts payable and accrued liabilities 17,630 Net cash used in operating activities $ (108,267)
See accompanying notes to basic financial statements.
30 CITY OF PLEASANT HILL
Fiduciary Funds
Statement of Fiduciary Net Position
June 30, 2023
Private-Purpose
Trust Fund -
Successor Custodial
Agency Funds
Assets:

Cash and investments:

Held in City Treasury 2,461,167 $ 531,871 $
Receivables:

Interest - 1,921
Loans receivable 135,953 -
Land held for redevelopment 86,100 -
Total assets 2,683,220 533,792
Liabilities:

Accounts payable and accrued liabilities 258 64,475
Interest payable 55,055 -
Long-term debt:

Due within one year 300,000 -
Due in more than one year 3,365,000 -
Total liabilities 3,720,313 64,475
Net Position (Deficit):

Restricted for governmental entities and others - 469,317 Unrestricted held in trust (1,037,093) -
Total net position (deficit) (1,037,093) $ 469,317 $
See accompanying notes to basic financial statements.
31 Private-Purpose
Trust Fund -
Successor Custodial
Agency Funds
Additions:

Redevelopment property tax revenues 2,169,672 $ - $
Investment earnings 4,007 5,864
Members contributions - 277,001
Others - 232,837
Total additions 2,173,679 515,702
Deductions:

Community development expenses 1,606,997 -
Interest and fiscal charges 180,314 -
Benefits paid to participants or beneficiaries - 20,840 Administrative and general - 257,560
Total deductions 1,787,311 278,400
Change in net position 386,368 237,302
Net position (deficit), beginning of year (1,423,461) 232,015 Net position (deficit), end of year (1,037,093) $ 469,317 $

CITY OF PLEASANT HILL
Fiduciary Funds
Statement of Changes in Fiduciary Net Position
For the Year Ended June 30, 2023
See accompanying notes to basic financial statements.
32 CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
33 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of Pleasant Hill (City) was incorporated on November 14, 1961 under the laws of the State of California. The City operates under the Council-City Manager form of government and provides the following services: public safety, transportation, community development, and general government.

The basic financial statements include the financial activities of the City, Successor Agency to the Pleasant Hill Redevelopment Agency (Successor Agency) and the Pleasant Hill Joint Powers Financing Authority (Authority).

The Successor Agency is a separate governmental entity established on February 1, 2012 for the purpose of serving as a custodian of the assets of the former Pleasant Hill Redevelopment Agency (Agency) and winding down the former Agency’s activities subject to the direction of a Countywide Oversight Board.

The Countywide Oversight Board serves as the governing body and is comprised of seven members: 1) a County of Contra Costa (County) Supervisors representative, 2) a mayor appointed by a city selection committee, 3) a special district representative, 4) a school district representative, 5) a community college district representative, 6) a member of the public, and 7) a successor agency employee appointed from the largest employer of successor agency employees in the County. The Successor Agency’s financial transactions are accounted for in a private-purpose trust fund, a fiduciary fund type.

The Authority is a separate government entity whose purpose is to assist with the financing or refinancing of certain public capital facilities within the City. The Authority is controlled by the City and is governed by a board consisting of the City Manager, City Attorney, and Finance Manager, who also manage all accounting and administrative functions for the Authority. The Authority is a blended component unit, and is in substance part of the City’s operations and has a financial benefits and burden relationship with the City.

The Successor Agency and Authority do not issue separate financial statements and are reported in the City’s basic financial statements.

B. Basis of Presentation
The City's basic financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. The Governmental Accounting Standards Board (GASB) is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States.

Government-Wide Statements: The statement of net position and the statement of activities display information about the City’s primary government. These statements include the financial activities of the overall City government, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities, except where interfund services have been received or provided.

These statements distinguish between the governmental and business-type activities of the City.

Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. The City’s business-type activities are financed in whole or in part by fees charged to external parties.

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
34 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The statement of activities presents a comparison between direct expenses and program revenues for the business-type activities of the City and for each function of the City's governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include: (a) charges paid by the recipients for goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational needs of a particular program, and (c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

Fund Financial Statements: The fund financial statements provide information about the City's funds, including fiduciary funds and the blended component units. Separate statements for each fund categorygovernmental, proprietary, and fiduciary are presented. The emphasis of fund financial statements is on major individual governmental and enterprise funds, each of which is displayed in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds.

Proprietary fund operating revenues include charges for services provided to customers. Operating expenses for the enterprise fund include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

C. Major Funds
Major funds are defined as funds that have either assets and deferred outflows of resources, liabilities and deferred inflows of resources, revenues or expenditures/expenses equal to ten percent of their governmental or enterprise fund-type total and five percent of the combined grand total. The General Fund is always a major fund. The City may also select other funds it believes should be presented as major funds.

The City reported the following major governmental funds in the accompanying basic financial statements.

General Fund - Accounts for all of the general revenues and financial resources of the City not specifically levied or collected for the other City funds, as well as the related expenditures.

Traffic Mitigation Fund - Accounts for contributions received and traffic mitigation fees assessed on new developments to provide for street or other traffic improvements.

Measure J Growth Management Fund - Accounts for resources provided by the one-half cent sales tax dedicated to transportation improvement projects.

Gas Tax Fund - Accounts for gas tax apportioned by the State to cities based upon three factors: vehicle registration, assessed valuation, and population. These funds are used for street construction and maintenance.

Low and Moderate Income Housing Asset Fund – Accounts for housing assets and functions related to the Low and Moderate Income Housing Program retained by the City following the dissolution of the former Agency. Revenues are generated from the housing assets, including loan repayments and proceeds from the sale of the housing assets.

American Rescue Plan Act Fund – Accounts for funds received from the federal government from the American Rescue Plan Act of 2021. These funds provide relief from COVID-19 pandemic-related economic impacts to the City’s operations. The funds are to be used for general City services and capital projects.

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
35 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The City reports its only enterprise fund as a major fund in the accompanying basic financial statements.

The Diablo Vista Water System Fund - Accounts for the financing of self-supporting activities, which render irrigation water to the homeowners in a specific geographical area of the City, paid from property taxes and user charges.

The City also reports the following fiduciary funds:

Private-Purpose Trust Fund - The Successor Agency was created to serve as a custodian for the nonhousing assets and to wind down the affairs of the former Agency. This fund accounts for the receipt of property tax revenues pursuant to the Redevelopment Dissolution Act and the value of the assets transferred from the former Agency. The Successor Agency’s assets can only be used to pay enforceable obligations in existence at the date of dissolution pursuant to the Recognized Obligation Payment Schedules approved by the State Department of Finance (DOF) under the Redevelopment Dissolution Act.

Custodial Funds - Custodial funds are used to account for assets held by the City as a custodian for individuals, private organizations, and other governments. The City maintains four custodial funds.

The financial activities of these fiduciary funds are excluded from the government-wide financial statements, but are presented in separate fiduciary fund financial statements.

D. Basis of Accounting
The government-wide, proprietary, and fiduciary fund financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.

For the Diablo Vista Water System Enterprise Fund, revenues are billed to customers by the County of Contra Costa and are included on each customer's property tax statement. Revenues for services provided but not billed at the end of a fiscal period are not considered material and are not accrued.

Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available.

Generally, the City considers all revenues, except property tax revenues, reported in the governmental funds to be available if the revenues are collected within 45 days after year-end. Property tax revenues are recognized by the City in the fiscal year they are assessed provided they become available within 60 days after year-end for governmental funds. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Governmental capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of governmental long-term debt and acquisitions under capital leases are reported as other financing sources.

Revenues susceptible to accrual include taxes, intergovernmental revenues, charges for services, and interest. Fines, licenses, and permits are not susceptible to accrual because they are not measurable until received in cash.

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
36 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Non-exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include taxes, grants, entitlements, and donations. On the accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.

The City may fund programs with a combination of cost-reimbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted net position may be available to finance program expenditures. The City's policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary.

Certain indirect costs are included in program expenses reported for individual functions and activities.

Transactions representing the exchange of interfund goods and services have also been included.

E. Cash and Cash Equivalents
For purposes of reporting cash flows for the City’s proprietary fund, pooled cash and investments held by City Treasury are considered cash equivalents as the proprietary fund can access pooled cash and investments in a manner similar to a demand deposit account.

F. Investments
The City's investments are stated at fair value. Fair value is 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 fair value measurements are categorized within the fair value hierarchy established by generally accepted accounting principles. The City adjusts the carrying value of its investments to reflect their fair value at each fiscal year end, and it includes the effects of these adjustments in income for that fiscal year.

G. Interfund Transactions
Interfund loans and balances related to unsettled service transactions are reported as receivables and payables as appropriate, and are subject to elimination upon consolidation of similar fund types, and are referred to as either “due from/to other funds” (i.e., the current portion of inter-fund loans and unsettled service transactions) or “advances to/from other funds” (i.e., the non-current portion of interfund loans).

Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as “internal balances”.

Services provided or used, deemed to be at market or near market rates, are treated as revenues and expenditures or expenses. Transactions constituting reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. All other interfund transactions are treated as transfers. Transfers between governmental or proprietary funds, if any, are netted as part of the reconciliation to the government-wide presentation.

H. Capital Assets
Capital assets are valued at cost or estimated historical cost if actual cost is not available. Donated capital assets are stated at their acquisition value. Infrastructure capital assets consisting of streets, roads, curbs, gutters, storm drains, street drainage, street lights, and traffic control devices have been capitalized and depreciated. Capital assets are defined as assets with an initial individual cost of more than $1,500 and a useful life of in excess of one year.

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
37 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Major outlays for capital assets and improvements are capitalized as projects are constructed. Some capital assets may be acquired using federal and state grant funds, or they may be contributed by developers or other governments. These contributions are accounted for as revenues at the time the capital assets are contributed.

Depreciation is recorded using the straight-line method over the following useful lives:

Buildings and improvements 10-50 years
Equipment and furniture 3-15 years
Streets and roads 50 years
Curbs and gutters 50 years
Storm drains 50 years
Street lights 50 years
Traffic control devices 50 years
Diablo Vista Water system infrastructure 50 years
I. Deferred Outflows and Inflows of Resources
In addition to assets, the statement of net position reports a separate section for deferred outflows of resources. This separate financial statement element 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) until then.

In addition to liabilities, the statement of net position reports a separate section for deferred inflows of resources. This separate financial statement element 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 reports the following deferred items:

Deferred Outflows and Inflows of Resources Related to Pensions These deferred items are recognized and measured in financial statements prepared using the economic resources measurement focus and the accrual basis of accounting. The deferral is for changes in the net pension liability that are not included in pension expense and must be amortized in a systematic and rational manner over a closed period depending on cause beginning with the current period. These causes may include changes of future economic and demographic assumptions or other inputs, differences between expected and actual experience with regard to economic or demographic factors, differences between projected and actual earnings on pension plan investments, changes in employer’s proportion, and differences between the employer’s actual and proportionate share of contributions.

Employer contributions subsequent to the measurement date of the net pension liability are also required to be reported as deferred outflows of resources.

Unavailable Revenue
Unavailable revenue is only reported in the governmental funds balance sheet. The governmental funds report unavailable revenues from sources such as housing loans, State-mandated cost reimbursements, expenditure-driven grants, etc.

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
38 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) J. Land Held for Redevelopment
Land held for redevelopment is carried at the lower of cost, net realizable value, or agreed-upon sales price if a disposition and development agreement has been made with a developer.

K. Compensated Absences
Compensated absences are comprised of vacation and vested sick time, which are accrued as earned. The City's liability for compensated absences is recorded in governmental activities. The liability for compensated absences is determined annually. For all governmental funds, amounts expected to be permanently liquidated (matured due to termination) are recorded as fund liabilities; the long-term portion is recorded in the statement of net position.

The changes of the compensated absences were as follows for the year ended June 30, 2023:

Governmental
Activities
Beginning Balance 2,282,223 $
Additions 530,427
Payments (463,102)
Ending Balance 2,349,548 $
Current Portion 470,000 $
The compensated absences of governmental activities are liquidated primarily by the General Fund.

L. Net Pension Liability
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. The net pension liability is typically liquidated by the General Fund.

M. Property Tax
The County distributes property taxes to jurisdictions according to the “alternate method of property tax distribution” known as the Teeter Plan. Under this plan, the County remits 100% of the levied taxes to the appropriate jurisdictions by June 30 each year, pursuing delinquencies and keeping related late penalties to cover their costs. The City receives property taxes and property tax increments, respectively, on the following schedule: 55% in December, 40% in April, and 5% in June. The lien date for secured and unsecured property taxes is established as of January 1 of the preceding fiscal year.

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
39 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Secured property tax is due in two equal installments, on November 1 and February 1. It becomes delinquent after December 10 and April 10, respectively. Unsecured property tax is due upon receipt of billing and becomes delinquent on August 31. The term “unsecured” refers to taxes not secured by real property. These taxes are secured by liens on the property being taxed.

Pursuant to the Redevelopment Dissolution Act, funds that would have been distributed to the former Agency as tax increment, hereafter referred to as redevelopment property tax revenues, are deposited into the Successor Agency’s Redevelopment Property Tax Trust Fund (Trust Fund) administered by the City for the benefit of holders of the former Agency’s enforceable obligations. Distributions from the Trust Fund are to be made on the following cycles:

Distribution Dates
Covers Recognized Obligation Payment
Schedules to be Paid
January 2 January 1 through June 30
June 1 July 1 through December 31
N. Effect of New Pronouncements
The City implemented the following GASB Statements during the year:

In May 2019, the GASB issued Statement No. 91, Conduit Debt Obligations. The objectives of this statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with 1) commitments extended by issuers, 2) arrangements associated with conduit debt obligations, and 3) related note disclosure. Implementation of this statement did not have a significant impact on the City’s financial statements for the fiscal year ending June 30, 2023.

In March 2020, the GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements. The objective of this Statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). This statement also provides guidance for accounting and financial reporting for availability payment arrangements (APAs). As defined in this statement, an APA is an arrangement in which a government compensates an operator for services that may include designing, constructing, financing, maintaining, or operating an underlying nonfinancial asset for a period of time in an exchange or exchange-like transaction.

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

In May 2020, the GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements. This statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. Implementation of this statement did not have a significant impact on the City’s financial statements for the fiscal year ended June 30, 2023.

In April 2022, the GASB issued Statement No. 99, Omnibus 2022. The requirements related to leases, public-private partnerships (PPPs), and SBITAs are effective for the City’s fiscal year ended June 30, 2023.

Implementation of these requirements did not have a significant impact on the City’s financial statements for the fiscal year ended June 30, 2023.

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
40 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The City is currently analyzing its accounting practices to determine the potential impact on the financial statements for the following GASB Statements:

In April 2022, the GASB issued Statement No. 99, Omnibus 2022. The requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of statement 53 are effective for the City’s fiscal year ending June 30, 2024.

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

In June 2022, the GASB issued Statement No. 101, Compensated Absences. The objective of this statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures.

The requirements of this statement are effective for the City’s fiscal year ending June 30, 2025.

O. Leases
A lease is defined as a contract that conveys control 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. The City will record lease liabilities and lease assets for leases with an individual net present value of $100,000 or more.

The City had no leases with an individual net present value of $100,000 or more as of June 30, 2023.

P. Subscription-Based Information Technology Arrangements (SBITAs) A SBITA is defined as a contract that conveys control of the right to use another party’s (a SBITA vendor’s) information technology (IT) software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period in time in an exchange or exchange-like transaction. The City will record SBITA liabilities and SBITA assets for arrangements with an individual net present value of $100,000 or more. The City had no SBITA arrangements with an individual net present value of $100,000 or more as of June 30, 2023.

Q. Use of Estimates
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain amounts and disclosures. Accordingly, actual results could differ from those estimates.

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
41 NOTE 2 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY A. Budgets and Budgetary Accounting
The City adopts a biennial budget on or before June 30 of even-numbered years for each of the ensuing two fiscal years generally for all funds except fiduciary funds. The Low and Moderate Income Housing Asset major governmental fund, as well as Parkland Dedication, Park and Recreation, and CLEEP Grant nonmajor governmental funds, were not budgeted for the year ended June 30, 2023. The operating budget takes the form of a two-year budget, which is adopted in its entirety by the City Council by resolution.

The operating budget is subject to supplemental appropriations throughout its term in order to provide flexibility to meet changing needs and conditions. The City Manager may approve supplemental appropriations up to $100,000 in the General Fund in increments no larger than $25,000. Council may approve additional appropriations throughout the year as well.

The City Manager is also authorized to transfer budgeted amounts between individual departments and funds. Budget transfers between accounts within a department may be approved by the department director.

Budgeted amounts reported in the accompanying basic financial statements include original and final budget amounts. The level of budgetary control (that is, the level at which expenditures cannot exceed the appropriated amount) is established at the fund level. Budgets for governmental funds are adopted on a basis consistent with generally accepted accounting principles.

B. Deficit Fund Balance and Net Position
At June 30, 2023, the Gas Tax 2107.5 Fund has a deficit fund balance of $5,224. This deficit is expected to be cured in the year ended June 30, 2024 through receipt of grant funding and transfers from other funds.

The Successor Agency Private-Purpose Trust Fund had a deficit net position of $1,037,093. The deficit is due to the nature of the redevelopment financing in which long-term debt were incurred for redevelopment activities. The deficit is expected to be eliminated with future redevelopment property tax revenues distributed from the Redevelopment Property Tax Trust Fund administered by the County.

C. Excess of Expenditures over Appropriations
The following funds had expenditures in excess of budget due to unanticipated expenditures for the year ended June 30, 2023, which are expected to be covered with existing fund balance and revenues in fiscal year 2023:

Amount
Nonmajor governmental funds:

Traffic Safety 42,181 $
Senior Van Services 1,399

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
42 NOTE 3 – CASH AND INVESTMENTS
The City's dependence on property tax receipts, which are received semi-annually, requires it to maintain significant cash reserves to finance operations during the remainder of the year. The City pools cash from all sources and all funds except for cash and investments held with trustees. The City’s pooled idle funds are invested pursuant to investment policy guidelines adopted by the City Council. The objectives of the policy are to invest funds to the fullest extent possible and to invest in accordance with the provisions of the California Government Code with the priority of safety, liquidity, and return on investment. The policy addresses the safekeeping of securities, types of authorized investment instruments, diversification, maturities, and reporting requirements. The City maintains a cash and investment pool that is available for use by all funds.

Each fund type’s portion of this pool is displayed on the financial statements as “cash and investments – held in City Treasury.” Cash and investments held in trust for pension benefits are treated as restricted.

A. Policies
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 system. Security instruments owned by the City are held in safekeeping by a third-party custodian acting as agent for the City under the terms of a custody agreement. The City has mitigated its exposure to custodial credit risks for investments at June 30, 2023.

California law requires banks and savings and loan institutions to pledge government securities with a fair value of 110% of the City’s cash on deposit, or first trust deed mortgage notes with a fair 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 has mitigated its exposure to custodial credit risks for deposits at June 30, 2023.

B. Classification
The City's total cash and investments, at fair value, are presented on the accompanying financial statements in the following allocation:

Primary Private-Purpose Custodial
Government Trust Fund Funds Total
Cash and investments:

Held in City Treasury 41,040,753 $ 2,461,167 $ 531,871 $ 44,033,791 $ Held with trustees 1,044,835 - - 1,044,835
Total cash and investments 42,085,588 $ 2,461,167 $ 531,871 $ 45,078,626 $ 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 provided the credit ratings of the issuers are acceptable to the City and approved percentages and maturities are not exceeded.

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
43 NOTE 3 – CASH AND INVESTMENTS (Continued)
The table below identifies investments that are authorized under the California Government Code and the City's Investment Policy:

Minimum Maximum Maximum
Maximum Credit Percentage of Investment in
Authorized Investment Type Maturity Quality Portfolio One Issuer U.S. Treasury bills, bonds, and notes 5 years N/A 100% No Limit U.S. Government Agency Securities 5 years N/A 100% No Limit Medium Term Corporate Notes 5 years A or better 30% No Limit Repurchase Agreements 1 year N/A 100% No Limit
Negotiable Certificates of Deposits 5 years N/A 30% No Limit Money Market Mutual Funds 5 years Highest Category 20% 10% State of California Local
Agency Investment Fund (LAIF) N/A N/A Up to $75 million No Limit D. Investments Authorized by Debt Agreements
The City must maintain required amounts of cash and investments with trustees or fiscal agents under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged reserves to be used if the City fails to meet its obligations under these debt issues. The California Government Code requires these funds to be invested in accordance with City ordinances, bond indentures, or State statutes. The bond indentures contain no limitations for the maximum investment in any one issuer or the maximum percentage of the portfolio that may be invested in any one investment type. The table below identifies the investment types that are authorized for investments held by trustees under the terms of the bond indentures.

Maximum Minimum
Authorized Investment Type Maturity Credit Quality
U.S. Treasury Obligations N/A N/A
U.S. Agency Securities N/A N/A
U.S. Governmental Sponsored Enterprise N/A N/A
State Obligations:

General Obligation N/A A to AA
General Short-term Obligation N/A A to AA
Special Revenue Bonds N/A AA
Municipal Obligations N/A Two Highest Categories
Pre-funded Municipal Obligations N/A AAA
Unsecured Certificates of Deposit 30 days A-1
FDIC insured deposits N/A N/A
Repurchase Agreements 30 days A
Commercial Paper 270 days A-1 to Highest
Bankers Acceptances 360 days A-1
Certificate of Deposit N/A N/A
Collateralized Certificates of Deposit 365 days A-1
Money Market Funds N/A AAAm or AAAm-G
Investment Agreement N/A N/A
Local Agency Investment Fund N/A N/A

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
44 NOTE 3 – CASH AND INVESTMENTS (Continued)
E. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment the greater the sensitivity of its fair value to changes in market interest rates. The City generally manages its interest rate risk by holding investments to maturity.

Information about the sensitivity of the fair values of the City's investments (including investments held by trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity or earliest call date:

Less Than 3 to 12 1 to 5
Investment Type 3 Months Months Years Total
Investments Held in City Treasury:

U.S. Treasury Securities - $ $ 1, 410,802 $ 1, 531,204 $ 942,006 Local Agency Investment Fund * - 32, - 611,122 32, 611,122 Money Market Mutual Funds * 43,671 - - 43,671
Medium Term Corporate Securities 119,717 344,120 1, 796,214 260,051 U.S. Government Agency Securities 158,745 1, 446,032 1, 121,885 726,662 Total investments held in City Treasury 322,133 33, 3, 812,076 37, 449,303 583,512 Investments Held with Trustees:

Equity Mutual Funds (Irrevocable Pension Trust) 1, - 044,835 - 1, 044,835 Total investments 1,366,968 $ 33, $ 3,449,303 812,076 $ 38, 628,347 Cash and Deposits not subject to Interest Rate Risk:

Petty cash on hand 3,586
Cash in banks 6,446,693
Total cash and investments 45,078,626 $
Maturities in
* Weighted-average of maturity.

LAIF is part of the Pooled Money Investment Account (PMIA). PMIA oversight is provided by the Pooled Money Investment Board (PMIB) and an in-house Investment Committee. PMIB members are the State Treasurer, State Director of Finance, and State Controller. The Local Investment Advisory Board provides oversight for LAIF. The Board consists of five members as designated by statute. The Chairman is the State Treasurer or his designated representative. Two members are qualified by training and experience in the field of investment or finance, and the State Treasurer appoints two members who are treasurers, finance or fiscal officers, or business managers employed by any county, city, or local district or municipal corporation of this state. LAIF determines fair value on its investment portfolio based on market quotations for those securities where market quotations are readily available, and on amortized cost or best estimate for those securities where fair value is not readily available. The balance available for withdrawal by the City is based on the accounting records maintained by the State. At June 30, 2023, PMIA has a total amount of approximately $178.4 billion and of that amount, 97.22% was invested in non-derivative financial products and 2.78% in structured notes and asset-backed securities, while the weighted average maturity of LAIF was 260 days.

F. Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The City manages credit risk in accordance with the City's Investment Policy.

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
45 NOTE 3 – CASH AND INVESTMENTS (Continued)
Presented below is the actual rating as of June 30, 2023 for each investment type, including those with trustees, as provided by Moody’s ratings:

Investment Type Ratings Total
Money Market Mutual Funds Aaam 43,671 $
U.S. Government Agency Securities Aaa 1,726,662
Medium Term Corporate Securities Aaa 63,944 $
Aa2 84,199
A1 557,887
A2 461,940
A3 92,081
Total Medium Term Corporate Securities 1,260,051
Total rated 3,030,384
Exempt from credit rating disclosures:

U.S. Treasury Securities Exempt 1,942,006
Not rated:

Local Agency Investment Fund Not rated 32,611,122
Equity Mutual Funds (Irrevocable Pension Trust) 1,044,835 Total investments 38,628,347 $
G. Concentration of Credit Risk
The City’s investment policy contains certain limitations on the amount that can be invested in any one issuer. No investment type held by the City accounted for more than 5% of total investments held in the City Treasury as of June 30, 2023.

H. 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 observable inputs; and Level 3 inputs are significant unobservable inputs. The City does not measure any of its investments using level 3 inputs.

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

Investment Type Total Level 2
Investment by fair value levels
U.S. Treasury Securities 1,942,006 $ 1,942,006 $
U.S. Government Agency Securities 1,726,662 1,726,662
Medium Term Corporate Securities 1,260,051 1,260,051
Total investment by fair value levels 4,928,719 4,928,719 $ Investment not subject to fair value levels
Money Market Mutual Funds 43,671
Local Agency Investment Fund 32,611,122
Equity Mutual Funds (Irrevocable Pension Trust) 1,044,835 Total investment not subject to fair value levels 33,699,628 Total investments 38,628,347 $
Fair Value Measurement Hierachy

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
46 NOTE 3 – CASH AND INVESTMENTS (Continued)
Securities classified in Level 2 of the fair value hierarchy are valued using prices determined by the use of matrix pricing techniques maintained by the pricing vendors of these securities. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices.

NOTE 4 – INTERFUND TRANSACTIONS
A. Advances to the Successor Agency
For fiscal years 1985-86 through 1991-92, the former Agency deferred the required 20% set aside of all tax increment received annually on the original Commons Project Area totaling $638,957, which was recorded as advances to the Low and Moderate Income Housing Assets Fund. No interest was charged on the outstanding balance. This advance was transferred from the former Agency to the Successor Agency on February 1, 2012, when all redevelopment agencies in California ceased to exist. This obligation was included in the FY2022-23 Successor Agency’s Recognized Obligation Payment Schedule (ROPS) and the remaining balance was paid off in FY2022-23.

B. Transfers Between Funds
With Council or City Manager approval, resources may be transferred from one City fund to another. The purpose of the majority of transfers is to support capital projects activities or operating activities of another fund. The following schedule summarized the City’s transfer activities:

Amount
Fund Making Transfers Fund Receiving Transfers Transferred General Fund Gas Tax Fund 4,363,000 $
General Fund Nonmajor Governmental Funds 2,317,647
General Fund Measure J Growth Management Fund 50,000
Traffic Mitigation Gas Tax Fund 521,700
American Rescue Plan Act Fund General Fund 569,033
Nonmajor Governmental Funds 1,462,590
Nonmajor Governmental Funds General Fund 20,000
Gas Tax Fund 405,000
Total interfund transfers 9,708,970 $
C. 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. At June 30, 2023, the nonmajor Gas Tax 2107.5 special revenue fund owed the General Fund $5,224.

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
47 NOTE 5 – NOTES AND LOANS RECEIVABLE
Low and Moderate Income Housing Asset Fund
A. Owner-Occupied Housing Rehabilitation Loans
The former Agency administered a housing rehabilitation loan program under which very low and lowincome homeowners were eligible to receive loans up to $60,000 to be used to construct improvements on their homes. The loan was transferred from the former Agency to the City’s Low and Moderate Income Housing Asset major governmental fund and the annual operating grant commitment was transferred to the Successor Agency on February 1, 2012, when all redevelopment agencies in California ceased to exist.

These loans bear three to five percent simple interest, have a fifteen-year term, and are secured by deeds of trust. Payments on the loans may be made monthly or may be deferred and paid at the end of the term or transfer of ownership. At June 30, 2023, principal and interest related to these loans totaled to $283,035, of which the City determined the accrued interest of $123,014 to be unavailable.

B. Grayson Creek Apartments
In fulfillment of its obligation to replace low and moderate-income housing destroyed as part of the Pleasant Hill Downtown Project, the former Agency entered into a loan agreement with Bridge Housing Corporation, a non-profit housing developer. The loan was transferred from the former Agency to the City’s Low and Moderate Income Housing Asset major governmental fund and the annual operating grant commitment was transferred to the Successor Agency on February 1, 2012, when all redevelopment agencies in California ceased to exist. The loan bears three percent simple interest and will mature in year 2032. At June 30, 2023, principal and interest related to this loan totaled to $1,476,973 of which the City determined the accrued interest of $471,973 to be unavailable.

C. Rehabilitation Services of Northern California
On October 17, 2016, the City entered into a Predevelopment Loan Agreement with Rehabilitation Services of Northern California for feasibility studies for constructing a new facility to house its current programs as well as provide long-term supportive housing to low-income seniors for a loan amount not to exceed $236,000. On March 21, 2022, the City approved an additional $500,000 for predevelopment costs. The loan bears 3% simple interest for a loan amount not to exceed $736,000. The loan matures at the earliest of following dates: (1) date of loan default, (2) date of borrower’s abandonment of the housing project or sale or transfer of interest, or (3) fifty-five years after the loan date. At June 30, 2023, principal and interest related to this loan totaled $759,850 of which $23,850 is accrued interest.

D. Hookston Manor Apartments
On December 8, 1998, the City entered into loan agreement with Hookston Senior Associates for the acquisition and rehabilitation of the Hookston Manor Apartments to provide low income seniors with affordable housing. The loan bears no interest and the loan amount is $500,000. The loan matures at the earliest of following dates: (1) date of loan default by the borrower, (2) the expiration of applicable cure periods under the loan agreement, or (3) January 1, 2053. At June 30, 2023, the outstanding balance of the loan receivable is $500,000 and a full allowance was recorded against the balance as the City determined the balance to be uncollectible.

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
48 NOTE 5 – NOTES AND LOANS RECEIVABLE (Continued)
General Fund
The Friends of the Pleasant Hill Library
On November 30, 2022, the City entered into a loan agreement with The Friends of the Pleasant Hill Library, a 501(c)(3) nonprofit organization, doing business as the Pleasant Hill Library Foundation (Foundation). The purpose of the loan was to fund improvements purchased by the Foundation for the new Pleasant Hill Library. The loan amount is for the amount of $200,000, bears no interest, and to be repaid within 2 years. The funds to repay this loan by the Foundation is expected from the County of Contra Costa. Absent receipt of funds by the Foundation from the County of Contra Costa, the entire loan is due to the City no later than December 1, 2023. On June 30, 2023, the balance of this loan was $100,000.

Successor Agency
Jack’s Restaurant
One property in the downtown area was vacant and in need of remodeling to improve its marketability and appeal to prospective tenants. A prospective tenant, Marcovici Management Group, LLC expressed interest in opening a casual fine dining restaurant, under the trade name Jack’s Restaurant if certain improvements were made to the property. Under the California Community Redevelopment Law, the former Agency was authorized to make rehabilitation loans for the purpose of financing rehabilitation of commercial buildings and structures within the Redevelopment Project area. The former Agency entered into a Façade Loan Agreement with Marcovici Management Group, LLC for $460,000 in order to make improvements to the property. The loan bears one percent simple interest and had a final maturity date on November 25, 2019.

The loan was transferred from the former Agency to the Successor Agency on February 1, 2012, when all redevelopment agencies in California ceased to exist. $100,000 of the loan was forgiven due to Jack’s Restaurant meeting certain criteria. On June 14, 2017, the City and Jack’s Restaurant entered into a settlement agreement on improvements disputes and the loan was adjusted to $330,000. The maturity date of the promissory note was extended to May 1, 2027. At June 30, 2023, the outstanding balance of the note was $135,953.

NOTE 6 – LAND HELD FOR REDEVELOPMENT
The former Agency purchased parcels of land in order to develop or redevelop blighted properties within the redevelopment areas. Land held for redevelopment in the amount of $191,049 and $86,100 were transferred from the former Agency to the City’s Low and Moderate Income Housing Asset major governmental fund and the Successor Agency, respectively, on February 1, 2012, when all redevelopment agencies in California ceased to exist. There were no additions or sales activities for the year ended June 30, 2023. At June 30, 2023, the land held for redevelopment was $191,049 and $86,100 for the City’s Low and Moderate Income Housing Asset major governmental fund and the Successor Agency, respectively.

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
49 NOTE 7 – CAPITAL ASSETS
A. Capital Asset Additions and Retirements
A summary of changes in capital assets for the year ended June 30, 2023 is as follows:

Balance, Balance,
June 30, 2022 Additions Retirements Transfers June 30, 2023 Governmental activities
Capital assets, not being depreciated:

Land and improvements 3,406,821 $ - $ - $ - $ 3,406,821 $ Construction in progress 28,369,328 4,230,506 - (31,065,693) 1,534,141 Total capital assets, not being depreciated 31,776,149 4,230,506 - (31,065,693) 4,940,962 Capital assets, being depreciated:

Buildings and improvements 15,108,347 - - 31,065,693 46,174,040 Equipment and furniture 11,211,877 1,622,452 - - 12,834,329 Streets and roads 68,561,771 - - - 68,561,771
Curbs and gutters 16,909,216 - - - 16,909,216
Storm drains 10,963,119 - - - 10,963,119
Street lights 4,149,266 - - - 4,149,266
Traffic control devices 6,731,698 - - - 6,731,698
Total capital assets, being depreciated 133,635,294 1,622,452 - 31,065,693 166,323,439 Less accumulated depreciation for:

Buildings and improvements (9,928,758) (283,275) - - (10,212,033) Equipment and furniture (8,863,065) (844,283) - - (9,707,348) Streets and roads (33,628,782) (1,237,142) - - (34,865,924) Curbs and gutters (10,349,290) (344,867) - - (10,694,157) Storm drains (7,220,743) (375,717) - - (7,596,460)
Street lights (1,570,799) (138,171) - - (1,708,970)
Traffic control devices (2,923,099) (224,166) - - (3,147,265) Total accumulated depreciation (74, (3,447,621) 484,536) - - (77,932,157) Total capital assets, being depreciated, net 59,150,758 (1,825,169) - 31,065,693 88,391,282 Governmental activities, capital assets, net 90,926,907 $ 2,405,337 $ - $ - $ 93,332,244 $ Business-type activity
Capital assets, being depreciated:

Water system infrastructure 781,443 $ 607,248 $ - $ - $ 1,388,691 $ Less accumulated depreciation for:

Water system infrastructure (341,503) (12,268) - - (353,771) Total capital assets, being depreciated, net 439,940 594,980 - - 1,034,920 Business-type activity, capital assets, net 439,940 $ 594,980 $ - $ - $ 1,034,920 $ B. Construction in Progress
Project
Expended to June
30, 2023
Gregory Lane Storm Drain Project 1,380,155 $
Contra Costa Blvd. Harriet-Viking Project 143,125
Taylor Blvd - Civic Drive Intersection and
Pathway Improvement Project
Total Construction in Progress 1,534,141 $
10,861

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
50 NOTE 7 – CAPITAL ASSETS (Continued)
C. Depreciation Allocation
Depreciation expense was charged to functions and programs based on their usage of the related assets. For the year ended June 30, 2023, depreciation expense was charged to each function or program for governmental and the business-type activities as follows:

Governmental activities
General government 385,995 $
Public safety 645,561
Transportation 2,416,065
Total depreciation expense - governmental activities 3,447,621 $ Business-type activity
Diablo Vista Water 12,268 $
Total depreciation expense - business-type activities 12,268 $ NOTE 8 –LONG-TERM DEBT
A. Composition and Changes
A summary of changes in long-term debt of the City’s governmental activities for the year ended June 30, 2023 is as follows:

Amount
Balance Balance Due Within
June 30, 2022 Retirements June 30, 2023 One Year
2020 Lease Financing Private Placement, New Library
Interest 1.75% per annum, due 6/1/2032 22,773,691 $ (2,102,993) $ 20,670,698 $ 2,139,956 $ A summary of changes in long-term debt of the Successor Agency for the year ended June 30, 2023 is as follows:

Amount
Balance Balance Due Within
June 30, 2022 Retirements June 30, 2023 One Year
Special Tax Refunding Bonds,
Subordinated Series 2002 3,950,000 $ ( $ 3,665,000 285,000) $ 300,000 $

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
51 NOTE 8 –LONG-TERM DEBT (Continued)
B. Summary of Debt Terms
2020 Lease Financing Private Placement, New Library
The City is financing the construction of a new library building, a portion of the Oak Park Monticello Backbone Infrastructure Improvements, and incidental expenses in the amount of $26,396,078 through a lease financing private placement loan with Bank of the West executed on August 1, 2020. The interest rate on the private placement is 1.75% per annum. Payments are to be made semiannually on December 1 and June 1 with final maturity on June 1, 2032. The loan’s debt service payments will be funded with Measure K revenues.

The financing is being provided through a lease/leaseback structure. Under this structure, the City leases real property consisting of City Hall, Police Headquarters Building and Downtown Parking Garage to the Authority in return for a one-time site lease payment equal to the proceeds of the lease that were received on the closing date from Bank of the West. This amount is being used to finance the Project and pay the costs of issuance of the transaction. The Authority is a separate government entity authorized to assist with the financing or refinancing of certain capital public improvements within the City. As of June 30, 2023, total debt service requirements remaining on the Lease Financing are $22,431,346.

Special Tax Refunding Bonds, Subordinated Series 2002
On November 20, 2002, the City assisted the Pleasant Hill Downtown Community Facilities District No. 1 (District) by issuing $7,290,000 of Special Tax Refunding Bonds, Subordinated Series 2002 (Special Tax Series 2002 Bonds) to refund Special Tax Bonds, Series 1998A. Interest ranged from 2.4% to 6.0% and is payable semi-annually on March 1 and September 1, and principal is payable each September 1 with final maturity on September 1, 2032. Property tax revenues allocated to the former Agency are pledged for the repayment of the Special Tax Series 2002 Bonds.

The outstanding principal of the Special Tax Series 2002 Bonds were transferred from the former Agency to the Successor Agency on February 1, 2012, when all redevelopment agencies in California ceased to exist. Total debt service requirements remaining on the Special Tax Series 2002 bonds are $4,570,654 payable through September 1, 2032. The redevelopment property tax revenues recognized during the year ended June 30, 2023 were $2,169,672 as against the total debt service payments paid by the Successor Agency of $460,373.

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
52 NOTE 8 – LONG-TERM DEBT (Continued)
C. Debt Service Requirements
Annual debt service requirements are shown below for the City’s governmental activities and the Successor Agency:

Governmental Activities:

For the Year
Ending June 30, Principal Interest
2024 2,139,956 $ 352,416 $
2025 2,177,569 314,803
2026 2,215,843 276,528
2027 2,254,790 237,582
2028 2,294,422 197,950
2029-2032 9,588,118 381,369
$ 1,760,648 20,670,698 $
Successor Agency:

For the Year
Ending June 30, Principal Interest
2024 300,000 $ 161,901 $
2025 310,000 147,853
2026 325,000 133,228
2027 340,000 117,914
2028 355,000 101,907
2029-2033 2,035,000 242,851
$ 905,654 3,665,000 $
Special Tax Series 2002 Bonds
Lease Financing Private Placement - New
Library Loan
D. Events of Default and Acceleration Clauses
Generally, the City and Successor Agency are considered to be in default if the City or Successor Agency fail to pay the principal of and interest on the outstanding long-term debt when become due and payable.

For the Lease Financing Library Loan, if an event of default has occurred and is continuing, the principal of the debt, together with the accrued interest, may be declared due and payable immediately. For the Special Tax Series 2002 Bonds, there are no provision allowing for the acceleration of the debt service payments in the event of default.

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
53 NOTE 9 – NET POSITION AND FUND BALANCES
Net position is measured on the full accrual basis while fund balances are measured on the modified accrual basis.

A. Net Position
The government-wide, proprietary, and fiduciary fund financial statements utilize a net position presentation. Net position is categorized as follows:

Net Investment in Capital Assets – This category groups all capital assets including, infrastructure, into one component of net position. Accumulated depreciation and outstanding balances of debt and any debt-related deferred outflows and inflows of resources that are attributable to the acquisition, construction or improvement of these assets reduce the balance in this category.

Restricted – This category consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Enabling legislation authorizes the City to assess, levy, charge, or otherwise mandate payment of resources and includes a legally enforceable requirement that those resources be used only for the specific purposes stipulated in the legislation. A legally enforceable enabling legislation restriction is one that a party external to a government—such as citizens, public interest groups, or the judiciary - can compel a government to honor. At June 30, 2023, the government-wide statement of net position reported restricted net position of $16,507,795 in governmental activities, of which $944,287 are restricted by enabling legislation.

Unrestricted – This category represents net position of the City that does not meet the definition of “net investment in capital assets” or “restricted.”
B. Fund Balances
As prescribed by GASB Statement No. 54, governmental funds report fund balance in classifications based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the funds can be spent. Fund balances for governmental funds are made up of the following:

Nonspendable Fund Balance – includes amounts that are (a) not in spendable form, or (b) legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash, i.e., prepaid items. There were no funds with nonspendable fund balance as of June 30, 2023.

Restricted Fund Balance – includes amounts that can be spent only for the specific purposes stipulated by external resource providers, constitutionally or through enabling legislation. Restrictions may effectively be changed or lifted only with the consent of resource providers.

Committed Fund Balance – includes amounts that can only be used for the specific purposes determined by a formal action of the City’s highest level of decision-making authority. The City Council is the highest level of decision-making authority for the City that can commit fund balances by adoption of an ordinance.

Commitments may be changed or lifted only by the City Council taking the same formal action that imposed the constraint originally.

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
54 NOTE 9 – NET POSITION AND FUND BALANCES (Continued)
Assigned Fund Balance – comprises amounts intended to be used by the City for specific purposes that are neither restricted nor committed. Intent is expressed by the City Council or the City Manager to whom the City Council has delegated the authority to assign amounts to be used for specific purposes by adoption of a resolution.

Unassigned Fund Balance – is the residual classification for the General Fund and includes all amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose. Other governmental funds may only report a negative unassigned balance that was created after classification in one of the other four fund balance categories.

In circumstances when an expenditure may be made for which amounts are available in multiple fund balance classifications, fund balance is depleted in the order of restricted, committed, assigned, and unassigned.

The City Council has established reserve policy levels for contingency and pension benefit purposes. At June 30, 2023, $10,044,835 is reported as part of General Fund’s assigned fund balance.

Fund balances for all major and nonmajor governmental funds as of June 30, 2023, were classified as follows: Measure J Low and Moderate Other
Traffic Growth Income Governmental
General Mitigation Management Gas Tax Housing Asset Funds Total Restricted for:

General government - $ - $ - $ - $ - $ 891,648 $ 891,648 $ Public safety - - - - - 654,172 654,172
Transportation - 278,748 1,444,146 3,414,108 - 419,275 5,556,277 Community development - - - - 5,153,218 2,300,664 7,453,882 Capital projects - new library & others 491,263 - - - - 226,025 717,288 Subtotal 491,263 278,748 1,444,146 3,414,108 5,153,218 4,491,784 15,273,267 Committed to:

Capital projects - - - - - 1,661,214 1,661,214
Assigned to:

Contingency reserve 10,044,835 - - - - - 10,044,835
Encumbrances - others 772,631 - - - - - 772,631
Capital projects 3,966,249 - - 2,788,477 - 685,414 7,440,140 Subtotal 14,783,715 - - 2,788,477 - 685,414 18,257,606
Unassigned: - 2,968,559 - - - (5,224) 2,963,335
Total 18,243,537 $ 278,748 $ 1,444,146 $ 6,202,585 $ 5,153,218 $ 6,833,188 $ 38,155,422 $ NOTE 10 – EMPLOYEE BENEFITS
A. Sick Leave Conversion Benefits
Employees hired before certain dates (ranging from August 2011 to November 2011) as stated in the applicable Memorandum of Understanding are entitled to a sick leave conversion benefit. Specific terms of the conversion differ for each employee group. In general, when employees with more than 20 years of service retire, they may convert the net present value of their unused sick leave hours to a Retirement Health Savings plan in accordance with the terms of their bargaining group’s Memorandum of Understanding. A scaled down conversion plan exists for employees with a service retirement of 15 to 19 years of City employment for certain bargaining groups. Employees of the Police Officers Association bargaining groups were provided limited reimbursements for medical insurance based on the unused sick leave hours on the employee’s date of retirement. For the year ended June 30, 2023, the City provided medical benefits for 2 retirees from the converted sick leave bank and total benefits expended on a pay-as-you-go basis and amounted to $31,222.

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
55 NOTE 10 – EMPLOYEE BENEFITS (Continued)
B. Deferred Compensation Plan
City employees may defer a portion of their compensation under a City sponsored Deferred Compensation Plan created in accordance with Internal Revenue Code Section 457. Under this plan, participants are not taxed on the deferred portion of their compensation until it is distributed to them as defined by the plan.

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

The City has a contract with International City Managers' Association (ICMA) to manage and invest the assets of the Deferred Compensation Plan; ICMA pools the assets of the Deferred Compensation Plan with those of other participants and does not make separate investments for employees.

The City's contract with ICMA was amended January 1, 1997 to substitute a separate trust for the City as owner of the assets in the plan, with the City becoming a trustee, but with no power over investment decisions. As a result, the assets in the Deferred Compensation Plan are not subject to claims by creditors of the City and are not reflected in the City's financial statements.

C. CalPERS Safety and Miscellaneous Employees Plans
Plan Description
The City participates in a cost-sharing multiple-employer pension plan that is administered by the CalPERS.

All qualified permanent and probationary employees are eligible to participate in the City’s CalPERS plan.

The City participates in six rate plans within the Miscellaneous and Safety Risk Pools of the CalPERS Public Agency Cost-Sharing Plan as follows:

CalPERS Plan Participants
Miscellaneous Plan All non-sworn employees who began employment between July 1, 1963 and April 15, 2012
Miscellaneous Tier 2 Plan
All non-sworn employees who began employment between April 16, 2012 and December 31, 2012, or on or after January 1, 2013 but were previously members of CalPERS through another agency.

Miscellaneous PEPRA
Plan
All non-sworn employees who began employment on or after January 1, 2013 but were not previously members of CalPERS through another agency.

Safety Plan All sworn employees who began employment between July 1, 1963 and April 15, 2012
Safety Tier 2 Plan
All sworn employees who began employment between April 16, 2012 and December 31, 2012, or on or after January 1, 2013 but were previously members of CalPERS through another agency.

Safety PEPRA Plan All sworn employees who began employment on or after January 1, 2013 but were not previously members of CalPERS through another agency.

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
56 NOTE 10 – EMPLOYEE BENEFITS (Continued)
CalPERS acts as a common investment and administrative agent for its participating member employers.

Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website at www.calpers.ca.gov.

CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on a final average compensation period of 12 months or 36 months. The cost of living adjustments for the CalPERS plans are applied as specified by the Public Employees’ Retirement Law. The California Public Employees’ Pension Reform Act (PEPRA), which took effect in January 2013, changes the way CalPERS retirement and health benefits are applied, and places compensation limits on members. As such, members who established CalPERS membership on or after January 1, 2013 are known as “PEPRA” members.

The CalPERS provisions and benefits in effect at June 30, 2023 for each rate plan are summarized as follows:

Miscellaneous PEPRA
Miscellaneous Second Miscellaneous
Plan Tier Plan Plan
Hire date Between
July 1, 1963 and
April 15, 2012
Between
April 16, 2012 and
December 31, 2012
On or after
January 1, 2013
Benefit formula 2% @ 55,
2% @ 60 2% @ 60 2% @ 62
Benefit vesting schedule 5 yrs of service 5 yrs of service 5 yrs of service Benefit payments monthly for life monthly for life monthly for life Retirement age 55 - 60 60 62
Required employee contribution rates 7.00% 7.00% 6.75%
Required employer contribution rates - normal cost 10.87% 8.63% 7.47% Required employer contribution - annual unfunded
accrued liability (UAL) $1,803,101 $8,023 $6,583
(*) Employees whose employment date began on or after January 1, 2013 but were previously members of CalPERS through other agency.
(**) Employees whose employment date began on or after January 1, 2013 but were not previously members of CalPERS through other agency.

Miscellaneous
Safety PEPRA
Safety Second Safety
Plan Tier Plan Plan
Hire date Between
August 1, 1969 and
April 15, 2012
Between
April 16, 2012 and
December 31, 2012
On or after
January 1, 2013
Benefit formula 2% @ 50,
3% @ 50 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 yrs of service 5 yrs of service 5 yrs of service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 55 57
Required employee contribution rates 9.00% 9.00% 13.00% Required employer contribution rates - normal cost 23.75% 20.64% 12.78% Required employer contribution - annual unfunded
accrued liability (UAL) $1,999,422 $4,876 $15,650
(*) Employees whose employment date began on or after January 1, 2013 but were previously members of CalPERS through other agency.
(**) Employees whose employment date began on or after January 1, 2013 but were not previously members of CalPERS through other agency.

Safety

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
57 NOTE 10 – EMPLOYEE BENEFITS (Continued)
Contributions
For the year ended June 30, 2023, the City’s contractually required contributions, which are actuarially determined, were as follows:

Miscellaneous - All Plans 2,402,931 $
Safety - All Plans 3,208,407
Total 5,611,338 $
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 finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

In June 2022, the City established a Section 115 irrevocable trust with the Public Agency Retirement Services (PARS). The Trust Account allows more control and flexibility in investment allocations compared to the City’s portfolio which is restricted by State regulations to fixed income instruments. On June 27, 2022, the City made a one-time initial contribution of $1,000,000 into the trust. The City will consider making additional contributions to the Trust based on the net position of the General Fund recommended by the City Manager and Finance Manager. The amount will be based on unassigned General Fund Balance when revenues exceed costs (excluding Measure K funds) in the audited financial statements.

The recommended contribution amount will be based on the higher of 10% or $50,000 of the excess unassigned General Fund Balance. At June 30, 2023, the City reported the account balance of $1,044,835 as restricted cash and investments with trustees in the General Fund.

Net Pension Liability
At June 30, 2023, the City’s proportionate share of the net pension liability of Miscellaneous Plans and Safety Plans were 0.20406%, or $23,570,846 and 0.24662% or $28,486,109, respectively. The total net pension liability for the City was $52,056,955.

The City’s net pension liability was based on the proportionate shares (in dollars) determined by CalPERS based on individual actuarial measurements specific to each rate plan in the Miscellaneous and the Safety Risk Pools. The City’s total proportionate share of the cost-sharing plan pension amounts is the sum of the pension amounts allocated to each of the City’s Miscellaneous and Safety rate plans. The City’s net pension liability is measured as of June 30, 2022, using annual actuarial valuations as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. The City’s proportions of the net pension liability for the Miscellaneous Plans and Safety Plans were actuarially determined as of the valuation dates.

The City’s proportionate share in the percentage of the net pension liability for the Miscellaneous Plans decreased by 0.0463% while that for the Safety Plans decreased by 0.0399%, from the previous measurement date.

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
58 NOTE 10 – EMPLOYEE BENEFITS (Continued)
Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended June 30, 2023, the City recognized pension expense/(income) of ($2,314,254). At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pension from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 5,611,338 $ - $ Change in assumptions 5,287,588 -
Differences between expected and actual experience 1,652,286 626,366 Net differences between projected
and actual earnings on plan investments 8,815,908 -
Changes in employer's proportion 1,375,449 2,218,565
Difference between the employer's contributions
and the employer's proportionate share of contributions - 2,265,907 $ 5,110,838 22,742,569 $
$5,611,338 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2024.

Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

For the Year Ending June 30,
Deferred
Outflows/(Inflows)
of Resources
2024 2,861,069 $
2025 2,435,417
2026 1,339,090
2027 5,384,817
$ 12,020,393

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
59 NOTE 10 – EMPLOYEE BENEFITS (Continued)
Actuarial Assumptions
A summary of the actuarial assumptions and methods used to calculate the total pension liability as of June 30, 2022 are as follows:

Valuation date June 30, 2021
Measurement date June 30, 2022
Measurement period July 1, 2021 to June 30, 2022
Actuarial cost method Entry-age normal cost method
Actuarial assumptions:

Discount rate 6.90%
Inflation 2.30%
Salaries increase Varies by entry age and service
Mortality Derived using CalPERS Membership Data for all funds (1) Post Retirement Benefit Increase The lessor of contract COLA or 2.30% until Purchasing Power Protection Allowance Floor on Purchasing Power applies,

2.30% thereafter.
(1) The mortality table used was developed based on CalPERS’ specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study from 2001 to 2019. Pre-retirement and post-retirement mortality rates include generational mortality improvements using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on the table, refer to the 2021 CalPERS Experience Study available on the CalPERS website.

All other actuarial assumptions used in the June 30, 2021 valuation were based on the 2021 CalPERS Experience Study for the period 2001 to 2019, including updates to salary increase, mortality and retirement rates. Further details of the 2021 CalPERS Experience Study can be found on the CalPERS website under Forms and Publications.

Change of Assumptions
During measurement period 2022, the discount rate was reduced from 7.15% to 6.90%, inflation rate was reduced from 2.50% to 2.30%, and demographic assumptions were changed in accordance with the 2021 CalPERS Experience Study.

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

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

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
60 NOTE 10 – EMPLOYEE BENEFITS (Continued)
In determining the long-term expected rate of return, CalPERS took into account both short-term and longterm market return expectations. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points. The expected real rates of return by asset class are as follows:

Assumed Asset Real Return
Asset Class Allocation (a)(b)
Global Equity - Cap-weighted 30.0% 4.54%
Global Equity - Non-Cap-weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage -5.0% -0.59%
(a) An expected inflation rate of 2.30% used for this period. (b) Figures are based on the 2021 Asset Liability Management study.

Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the City’s proportionate share of the net pension liability of the plan as of the measurement date, calculated using the discount rate of 6.90 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.90 percent) or 1 percentage-point higher (7.90 percent) than the current rate:
-1% (5.90%) Current (6.90%) +1% (7.90%)
Net Pension Liability $ 52,056,955 75,783,207 $ 32,609,135 $ Discount Rate
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
61 NOTE 11 – RISK MANAGEMENT
Municipal Pooling Authority
The City is a member of the Municipal Pooling Authority (MPA), a joint powers agency that provides coverage against the following types of loss risks:

Type of Coverage Deductible Coverage Limits
Liability Program $25,000 $34,500,000
Vehicle Physical Damage $3,000 for police vehicles $250,000 $2,000 for all others
Workers' Compensation No deductible Statuory excess of $50,000,000 All Risk Fire & Property Including Flood $25,000 $1,000,000,000 Boiler & Machinery $10,000 $100,000,000
Cyber Liability $50,000 $2,000,000
Public Entity Pollution Liability $250,000 $2,000,000
Government Crime Coverage $2,500 $5,000,000
Employment Liability $50,000 $2,000,000
The MPA is governed by the MPA Board consisting of representatives from member municipalities. The MPA Board controls the operations of the MPA, including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on the MPA Board. The City's premium payments to the MPA are calculated in accordance with formulas established by the MPA. Actual surpluses or losses are shared according to a formula developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating. Financial statements may be obtained from MPA at 1911 San Miguel Drive, Suite 200, Walnut Creek, CA 94596.

For the year ended June 30, 2023, the City paid MPA net premiums of $1,700,600.

Liability for Uninsured Claims
Municipalities are required to record their liability for uninsured claims and to reflect the current portion of this liability as expenditure in the fund financial statements. The City has insurance coverage for such claims, but it has retained the risk for the deductible or uninsured portion of these claims.

The City's liability for uninsured claims is incurred and expected to be repaid within the next fiscal year and was recorded under accounts payable and accrued liabilities in the General Fund. Settlements have not exceeded insurance coverage in the past five years. Changes in the balances of uninsured claims liabilities during the years ended June 30, 2023 and 2022 are as follows:
2023 2022
Uninsured claims, beginning of year 96,237 $ 81,811 $
Incurred claims and changes in estimate 75,605 96,012
Claim payments (96,229) (81, 586)
Uninsured claims, end of year 75,613 $ 96,237 $

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
62 NOTE 12 – COMMITMENTS AND CONTINGENCIES
A. Contingent Liabilities
The City is subject to litigation arising in the normal course of business. In the opinion of the City Attorney there is no pending litigation which is likely to have a material adverse effect on the financial position of the City.

The City participates in Federal and State grant programs. These programs are audited by the City's independent accountants in accordance with the provisions of the Federal Single Audit Act as amended in 1996, Uniform Guidance and applicable State requirements. These programs are subject to further examination by the grantors, and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time. The City expects such amounts, if any, to be immaterial.

B. Encumbrances
Under encumbrance accounting, purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation. Encumbrance accounting is employed as an extension of formal budgetary integration in all budgeted funds.

Unencumbered operating appropriations lapse at year-end and may be reappropriated in the following year.

Encumbrances outstanding at year-end are not accounted for as expenditures and liabilities, but as part of fund balance.

As of June 30, 2023, the City had outstanding encumbrances for the following governmental funds by fund balance categories:

Fund Balance
Amount Classification
General Fund 491,263 $ * Restricted
General Fund 905,277 Assigned
Gas Tax 811,054 Restricted
Gas Tax 1,614,846 Assigned
Nonmajor Governmental Funds 434,902 Restricted
Nonmajor Governmental Funds 306,841 Committed
Total encumbrances 4,564,183 $
* General fund restricted fund balance relates to encumbrances for construction commitments that remain outstanding as of June 30, 2023 for the New Library construction project.

Fiscal year 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 Measurement period 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 City's proportion of the net pension liability (NPL) 0.45068% 0.53688% 0.41357% 0.42149% 0.41428% 0.40312% 0.40112% 0.39264% 0.39231% City's proportionate share of the NPL 52,056,955 $ 29,035,811 $ 44,998,297 $ 43,189,907 $ 39,921,703 $ 39,978,270 $ 34,709,774 $ 26,950,065 $ 24,412,267 $ City's covered payroll 12,420,321 $ 11,974,531 $ 11,569,693 $ 11,527,431 $ 11,198,394 $ 10,760,992 $ 10,723,402 $ 10,610,000 $ 10,107,834 $ City's proportionate share of the NPL
as a percentage of its covered payroll 419.13% 242.48% 388.93% 374.67% 356.49% 371.51% 323.68% 254.01% 241.52% Plan's fiduciary net position as a percentage of the
Plan's total pension liability 76.68% 88.29% 75.10% 75.26% 75.26% 73.31% 74.06% 78.40% 80.43% Note to schedule:
*
Benefit Changes - The figures above do not include any liability impact that may have resulted from plan changes, which occurred after the June 30, 2021 valuation date, as they have minimal cost impact. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).

Change in assumptions - During measurement period 2014, the discount rate was 7.50%. During measurement period 2015, the discount rate was increased from 7.50 percent to 7.65 percent. There was no change assumptions during measurement period 2016. During measurement period 2017, the discount rate was reduced from 7.65 percent to 7.15 percent. During measurement period 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in assumptions during measurement periods 2019, 2020, or 2021. During measurement period 2022, the discount rate was reduced from 7.15% to 6.90%, inflation rate was reduced from 2.50% to 2.30%, and demographic assumptions were changed in accordance with the 2021 CalPERS Experience Study.

Fiscal year ended June 30, 2015 was the first year of implementation of GASB Statement No. 68, therefore only nine years of information is shown.

CITY OF PLEASANT HILL
Required Supplementary Information (Unaudited)
Schedule of the City's Proportionate Share of the Net Pension Liability Last Nine Fiscal Years*
63 Fiscal Year Ended 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Contractually required contributions
(actuarially determined) (CRC) 5,611,338 $ 5,263,128 $ 4,664,449 $ 4,191,149 $ 3,701,227 $ 3,127,536 $ 2,771,458 $ 2,419,864 $ 1,797,824 $ 1,787,116 $ Contributions in relation to the CRC (5,611,338) (5,263,128) (4,664,449) (4,191,149) (3,701,227) (3,127,536) (2,771,458) (2,419,864) (1,797,824) (1,787,116) Contribution deficiency (excess) $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ Covered payroll $ 12,420,321 12,687,544 $ 11,974,531 $ 11,569,693 $ 11,527,431 $ 11,198,394 $ 10,760,992 $ 10,723,402 $ 10,610,000 $ 10,107,834 $ Contributions as a percentage of
covered payroll 44.23% 42.38% 38.95% 36.23% 32.11% 27.93% 25.75% 22.57% 16.94% 17.68% ADC for fiscal year June 30, 2023
Actuarial valuation date June 30, 2020
Actuarial cost method Entry-Age Normal Cost Method
Asset valuation method Actuarial value of assets
Inflation 2.50%
Salary increases Varies by entry age and services
Payroll growth 2.75%
Investment rate of return 7.00%, net of pension plan investment expenses and administrative expenses, includes inflation.

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

Mortality
The actuarial methods and assumptions used to set the actuarially determined contributions for the fiscal year ended June 30, 2023 were as follows:

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

CITY OF PLEASANT HILL
Required Supplementary Information (Unaudited)
Schedule of City Contributions
Last Ten Fiscal Years
64 CITY OF PLEASANT HILL
Other Nonmajor Governmental Funds
Year Ended June 30, 2023
65 All funds not considered as major funds on the Fund Financial Statements are consolidated in one column entitled “Other Governmental Funds.” These nonmajor funds are identified and included in this supplementary section and includes all of the City’s Special Revenue Funds and Capital Project Funds.

SPECIAL REVENUE FUNDS:

The Special Revenue Funds are used to account for the proceeds of specific revenue sources that are restricted, committed or assigned to expenditures for specified purposes other than debt service or capital projects.

Traffic Safety Fund - accounts for fines collected from misdemeanor traffic violations involving a moving vehicle. These funds are used to provide crossing guards at major streets near elementary schools.

Gas Tax 2107.5 Fund - accounts for gas tax apportioned by the State to cities based on population. This fund is used for engineering and administrative costs only.

Unified Street Lighting Fund - accounts for an allocation of property taxes used to provide street lighting.

Parkland Dedication Fund – accounts for Parkland dedication fees paid by developers, which are distributed quarterly to the Pleasant Hill Recreation and Park District for parkland purposes.

Commercial Landscaping and Lighting District 20 Fund - accounts for assessments on commercial property that pay for landscape maintenance, street lighting and sidewalk repair costs within commercial districts.

NPDES Fund - accounts for storm water utility fees assessed to property owners citywide on their property tax bills. The funds are used to pay for the “National Pollution Discharge Elimination System,” mandated by the Federal government to prevent further polluting of streams and bays.

Supplemental Law Enforcement Service Fund - accounts for funds allocated by the State for front-line municipal police services.

Waste Management/Recycling Fund - accounts for activities to implement AB939, which mandates a decrease in the volume of landfill waste, as well as for household hazardous waste programs.

Police Special Services Fund - accounts for asset forfeitures from drug-related convictions. These funds may only be used for drug-related education and enforcement activities.

Park and Recreation Fund - accounts for funds received from the Pleasant Hill Recreation and Park District and from any park-related revenue source. Proceeds will be used for park-related and recreationrelated purposes.

Landscaping and Lighting Assessment District 22 Fund - accounts for assessments received from Grayson Woods and Gallery Walk property owners to pay for landscaping and lighting costs in these developments.

Senior Van Services Fund - accounts for donations and fare revenues, as well as City-paid expenses of operating a van service for transporting non-driving Pleasant Hill seniors to medical and dental appointments in the local area, shopping within Pleasant Hill, and to the Pleasant Hill Senior Center for social activities.

CITY OF PLEASANT HILL
Other Nonmajor Governmental Funds
Year Ended June 30, 2023
66 CLEEP (California Law Enforcement Equipment Program) Grant Fund - accounts for State grant funds to be used for law enforcement-related equipment purchases.

Vehicle Abatement Fund - accounts for funds received quarterly from the County of Contra Costa for vehicle abatement (based on the number of vehicles abated), as well as an annual year-end transfer from the General Fund to cover expenses beyond the amount of the County's contribution. On an annual basis, 40% of the Code Enforcement investigator's salary and benefits are charged to this fund to approximate the amount of time spent on vehicle abatement.

Affordable Housing Fund - accounts for fees received from developers in lieu of providing affordable housing in their project, as is otherwise required. The City is developing a plan to use these funds to provide assistance to low-income families and individuals in acquiring housing.

Traffic Congestion Relief Fund – accounts for the funds received from the State as a result of AB 2928 and SB 1662 (Statutes of 2000) and the related expenditures. These funds are to be used for maintenance, rehabilitation, and reconstruction projects for public streets and roads.

Disability Access Fund - accounts for funds collected through $1 fee from business license application and renewal for the purpose of increasing certified access specialist services and facilitate compliance with construction-related disability requirements.

General Plan Fee Fund - accounts for the accumulation of revenue levied on building permits for payment of expenditures related to the City’s General Plan Update and Housing Element Update.

HCD Housing Grant Fund - accounts for housing related activities for the City. The fund supports the update of the City of Pleasant Hill Housing Element Update required by the State of California and also supports the streamlining of the permitting of various types of housing projects throughout the City. These funds are supported by the State of California Department of Housing and Community Development grants.

CAPITAL PROJECTS FUNDS:

Capital Projects Funds account for the financial resources that are restricted or committed to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets.

Capital Outlay Fund - also known as Bedroom Tax Fund. Accounts for acquiring, building, improving or expanding public property and facilities.

Computer Technology Replacement Fund - accounts for scheduled and unscheduled replacement of computer-related technology (such as servers, computer, printers, etc.) for City Hall and the Corporation Yard. A flat amount is transferred from General Fund annually for that purpose.

Public Educational and Governmental Access Capital Grant Fund (PEG) - accounts for PEG grant revenues to be used to fund capital costs associated with acquiring PEG capital equipment Vehicles and Equipment Replacement Fund - accounts for acquiring City vehicles, and communication gear, and is funded by General Fund transfers.

CITY OF PLEASANT HILL
Other Nonmajor Governmental Funds
Year Ended June 30, 2023
67 Police Technology Fund - accounts for scheduled and unscheduled replacement of radios, copiers, and computer-related technology (such as servers, computers, printers, etc.) for the Police Department.

Annually, a flat amount is transferred from General Fund for that purpose.

Capital Projects Fund - accounts for making capital improvements and funding large maintenance projects.

CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2023
Special Revenue Funds
Commercial
Landscaping
Gas Tax Unified Street Parkland and Lighting
Traffic Safety 2107.5 Lighting Dedication District 20 NPDES Assets:

Cash and investments:

Held in City Treasury $ - 48,283 $ 899,555 $ 41 $ $ 1,734,801 228,591 $ Receivables:

Accounts and other - - - - - 118,187
Interest - 174 7,497 - 2,820 9,195
Total assets 48,457 $ - $ 907,052 $ 41 $ 231,411 $ 1,862,183 $ Liabilities and fund balances:

Liabilities:

Accounts payable and accrued liabilities $ - - $ 15,404 $ 41 $ 24,737 $ 88,798 $ Due to other funds - 5,224 - - - -
Total liabilities - 5,224 15,404 41 24,737 88,798
Fund balances:

Restricted 48,457 - 891,648 - 206,674 1,157,971
Committed - - - - - -
Assigned - - - - - 615,414
Unassigned - (5,224) - - - -
Total fund balances (deficits) 48,457 (5,224) 891,648 - 206,674 1,773,385 Total liabilities and fund balances 48,457 $ - $ 907,052 $ 41 $ 231,411 $ 1,862,183 $ 68 CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2023
Special Revenue Funds
Supplemental Landscaping
Law Waste and Lighting
Enforcement Management/ Police Special Park and Assessment Senior Van CLEEP Vehicle Services Recycling Services Recreation District 22 Services Grant Abatement $ 412,687 385,454 $ 64,152 $ 2 $ 94,661 $ 15,791 $ - $ 152,375 $ - - - - - - - -
3,433 3,205 529 - 811 123 - -
$ 416,120 388,659 $ 64,681 $ 2 $ 95,472 $ 15,914 $ - $ 152,375 $ $ 2,957 - $ - $ - $ 1,226 $ - $ - $ - $
- - - - - - - -
2,957 - - - 1,226 - - -
413,163 388,659 64,681 2 94,246 15,914 - 152,375
- - - - - - - -
- - - - - - - -
- - - - - - - -
413,163 388,659 64,681 2 94,246 15,914 - 152,375
$ 416,120 388,659 $ 64,681 $ 2 $ 95,472 $ 15,914 $ - $ 152,375 $ (Continued)
69 Traffic
Affordable Congestion Disability General HCD Housing
Housing Relief Fund Access Plan Fee Grant
Assets:

Cash and investments:

Held in City Treasury $ 118,355 579,915 $ 74,034 $ 127,806 $ - $ Receivables:

Accounts and other - - - - -
Interest - 4,744 612 814 -
Total assets 584,659 $ 118,355 $ 74,646 $ 128,620 $ - $ Liabilities and fund balances:

Liabilities:

Accounts payable and accrued liabilities $ - - $ 70,946 $ 3,365 $ - $ Due to other funds - - - - -
Total liabilities - - 70,946 3,365 -
Fund balances:

Restricted 584,659 118,355 3,700 125,255 -
Committed - - - - -
Assigned - - - - -
Unassigned - - - - -
Total fund balances (deficits) 584,659 118,355 3,700 125,255 - Total liabilities and fund balances 584,659 $ 118,355 $ 74,646 $ 128,620 $ - $

CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2023
Special Revenue Funds
70 Public
Educational and
Computer Governmental Vehicles and
Technology Access Capital Equipment Police
Capital Outlay Replacement Grant Replacement Technology Capital Projects Total $ 108,378 58,225 $ 143,234 $ 493,999 $ 960,181 $ 460,128 $ $ 7,160,648 - - 22,893 - - - 141,080
- 483 1,190 - - - 35,630
$ 108,378 58,708 $ 167,317 $ 493,999 $ 960,181 $ 460,128 $ 7,337,358 $ $ 48,193 - $ - $ $ 12,340 230,939 $ - $ $ 498,946
- - - - - - 5,224
48,193 - - 230,939 12,340 - 504,170
- 58,708 167,317 - - - 4,491,784
60,185 - - 193,060 947,841 460,128 1,661,214
- - - 70,000 - - 685,414
- - - - - - (5,224)
60,185 58,708 167,317 263,060 947,841 460,128 6,833,188 $ 108,378 58,708 $ 167,317 $ 493,999 $ 960,181 $ 460,128 $ 7,337,358 $ (Concluded)
Capital Projects Funds

CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2023
71 CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended June 30, 2023
Special Revenue Funds
Commercial
Landscaping
Gas Tax Unified Street Parkland and Lighting
Traffic Safety 2107.5 Lighting Dedication District 20 NPDES Revenues:

Property taxes - $ - $ 748,379 $ - $ - $ - $
Other taxes and special assessments - - - - 423,891 341,598 Intergovernmental - 6,000 - - - -
Charges for services - - - - - -
Fines and forfeitures 31,832 - - - - -
Use of money and property 224 - 18,174 - 6,081 25,197
Total revenues 32,056 6,000 766,553 - 429,972 366,795
Expenditures:

Current:

General government - - 230,737 - - -
Public safety - 140,155 - - - -
Transportation - - - - 541,006 9,438
Community development - - - - - 276,090
Capital outlay - - - - - 1,349,838
Total expenditures 140,155 - 230,737 - 541,006 1,635,366 Excess (deficiency) of revenues
over (under) expenditures (108,099) 6,000 535,816 - (111,034) (1,268,571) Other financing sources (uses):

Transfers in - 140,155 - - 98,802 1,785,131
Transfers out - - (200,000) - - (205,000)
Total other financing sources (uses) 140,155 - (200,000) - 98,802 1,580,131 Change in fund balances 32,056 6,000 335,816 - (12,232) 311,560 Fund balances, beginning of year 16,401 (11,224) 555,832 - 218,906 1,461,825 Fund balances, end of year 48,457 $ (5,224) $ 891,648 $ - $ 206,674 $ 1,773,385 $ 72 CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended June 30, 2023
Special Revenue Funds
Supplemental Landscaping
Law Waste and Lighting
Enforcement Management/ Police Special Park and Assessment Senior Van CLEEP Vehicle Services Recycling Services Recreation District 22 Services Grant Abatement $ - - $ - $ - $ - $ - $ - $ - $
- - - - 59,640 - - -
5,555 165,271 - - - - - 9,121
141,669 - - - - 2,881 - (100)
- - - - - - - -
9,365 9,117 1,512 - 2,013 364 - -
156,589 174,388 1,512 - 61,653 3,245 - 9,021
- - - - - - 6 -
- 35,452 3,868 - - - - -
- - - - 57,695 - - -
78,262 - - - - 4,779 - 10,057
- - - - - - - -
78,262 35,452 3,868 - 57,695 4,779 6 10,057
78,327 138,936 (2,356) - 3,958 (1,534) (6) (1,036)
- - - - 5,355 - - -
- (20,000) - - - - - -
- (20,000) - - 5,355 - - -
78,327 118,936 (2,356) - 9,313 (1,534) (6) (1,036)
334,836 269,723 67,037 2 84,933 17,448 6 153,411
$ 413,163 388,659 $ 64,681 $ 2 $ 94,246 $ 15,914 $ - $ 152,375 $ (Continued)
73 Traffic
Affordable Congestion Disability General HCD Housing
Housing Relief Fund Access Plan Fee Grant
Revenues:

Property taxes - $ - $ - $ - $ - $
Other taxes and special assessments - - - - -
Intergovernmental - - - - 91,390
Charges for services - - - 217,997 -
Fines and forfeitures - - - - -
Use of money and property 13,898 - 1,750 5,799 -
Total revenues 13,898 - 1,750 223,796 91,390
Expenditures:

Current:

General government - - - - -
Public safety - - - - -
Transportation - - - 363,787 -
Community development - 61 - - -
Capital outlay - - - - -
Total expenditures 61 - - 363,787 -
Excess (deficiency) of revenues
over (under) expenditures 13,837 - 1,750 (139,991) 91,390 Other financing sources (uses):

Transfers in - - - - -
Transfers out - - - - -
Total other financing sources (uses) - - - - -
Change in fund balances 13,837 - 1,750 (139,991) 91,390 Fund balances, beginning of year 570,822 118,355 1,950 265,246 (91,390) Fund balances, end of year 584,659 $ 118,355 $ 3,700 $ 125,255 $ - $

CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended June 30, 2023
Special Revenue Funds
74 Public
Educational and
Computer Governmental Vehicles and
Capital Technology Access Capital Equipment Police Capital Outlay Replacement Grant Replacement Technology Projects Total $ - - $ - $ - $ - $ - $ 748,379 $
- 9,300 - - - - 834,429
- - 96,920 - - - 374,257
- - - - - - 362,447
- - - - - - 31,832
- 1,351 2,722 - - - 97,567
- 10,651 99,642 - - - 2,448,911
- - - - - - 230,743
- - - - - 1,428 180,903
- - - - - - 971,926
- - - - - - 369,249
821,850 - - 354,413 383,655 281,835 3,191,591
821,850 - - 354,413 383,655 283,263 4,944,412
(821,850) 10,651 99,642 (354,413) (383,655) (283,263) (2,495,501) 883,112 - - 306,297 450,000 111,385 3,780,237
- - - - - - (425,000)
883,112 - - 306,297 450,000 111,385 3,355,237
61,262 10,651 99,642 (48,116) 66,345 (171,878) 859,736
(1,077) 48,057 67,675 311,176 881,496 632,006 5,973,452 $ 60,185 58,708 $ 167,317 $ 263,060 $ 947,841 $ 460,128 $ 6,833,188 $ (Concluded)
Capital Projects Funds

CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended June 30, 2023
75 CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended June 30, 2023
Traffic Safety Gas Tax 2107.5
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
Revenues:

Property taxes - $ - $ - $ - $ - $ - $
Other taxes and special assessments - - - - - -
Intergovernmental - - - 6,000 6,000 -
Charges for services - - - - - -
Fines and forfeitures 38,950 31,832 (7,118) - - -
Use of money and property 206 224 18 - - -
Total revenues 39,156 32,056 (7,100) 6,000 6,000 -
Expenditures:

Current:

General government - - - - - -
Public safety 97,974 140,155 (42,181) - - -
Transportation - - - 1,157 - 1,157
Community development - - - - - -
Capital outlay - - - - - -
Total expenditures 97,974 140,155 (42,181) 1,157 - 1,157 Excess (deficiency) of revenues
over (under) expenditures (58,818) (108,099) (49,281) 4,843 6,000 1,157 Other financing sources (uses):

Proceeds from sale of capital asset - - - - - -
Transfers in 113,679 140,155 26,476 - - -
Transfers out - - - - - -
Total other financing sources (uses) 113,679 140,155 26,476 - - - Change in fund balances 54,861 $ 32,056 (22,805) $ 4,843 $ 6,000 1,157 $ Fund balances, beginning of year 16,401 (11,224)
Fund balances, end of year 48,457 $ (5,224) $
76 CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended June 30, 2023
Unified Street Lighting NPDES
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $ 748,379 676,750 $ 71,629 $ - $ - $ - $ - $ - $ - $
- - - 423,892 423,891 (1) 350,000 341,598 (8,402)
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
18,174 1,200 16,974 14,837 6,081 (8,756) 3,090 25,197 22,107 766,553 677,950 88,603 438,729 429,972 (8,757) 353,090 366,795 13,705 230,737 263,989 33,252 - - - - - -
- - - - - - - - -
- - - 1,107,939 541,006 566,933 14,416 9,438 4,978
- - - - - - 533,029 276,090 256,939
- - - - - - 1,833,665 1,349,838 483,827
230,737 263,989 33,252 1,107,939 541,006 566,933 2,381,110 1,635,366 745,744 535,816 413,961 121,855 (669,210) (111,034) 558,176 (2,028,020) (1,268,571) 759,449 - - - - - - - - -
- - - 197,946 98,802 (99,144) 1,155,121 1,785,131 630,010 (200,000) (200,000) - - - - (205,000) (205,000) -
(200,000) (200,000) - 197,946 98,802 (99,144) 950,121 1,580,131 630,010 $ 335,816 213,961 121,855 $ (471,264) $ (12,232) 459,032 $ (1,077,899) $ 311,560 1,389,459 $ 218,906 555,832 1,461,825
$ 206,674 891,648 $ 1,773,385 $
(Continued)
Commercial Landscaping and
Lighting District 20
77 Supplemental Law
Enforcement Services Management/Recycling
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
Revenues:

Property taxes - $ - $ - $ - $ - $ - $
Other taxes and special assessments - - - - - -
Intergovernmental 100,000 165,271 65,271 10,219 5,555 (4,664) Charges for services - - - 128,220 141,669 13,449
Fines and forfeitures - - - - - -
Use of money and property 824 9,117 8,293 1,340 9,365 8,025 Total revenues 100,824 174,388 73,564 139,779 156,589 16,810 Expenditures:

Current:

General government - - - - - -
Public safety 138,000 35,452 102,548 - - -
Transportation - - - - - -
Community development - - - 120,928 78,262 42,666
Capital outlay - - - - - -
Total expenditures 138,000 35,452 102,548 120,928 78,262 42,666 Excess (deficiency) of revenues
over (under) expenditures (37,176) 138,936 176,112 18,851 78,327 59,476 Other financing sources (uses):

Proceeds from sale of capital asset - - - - - -
Transfers in - - - - - -
Transfers out (20,000) (20,000) - - - -
Total other financing sources (uses) (20,000) (20,000) - - - - Change in fund balances (57,176) $ 118,936 176,112 $ 18,851 $ 78,327 59,476 $ Fund balances, beginning of year 269,723 334,836
Fund balances, end of year 388,659 $ 413,163 $

CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended June 30, 2023
Waste
78 Police Special Services Senior Van Services
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $ - - $ - $ - $ - $ - $ - $ - $ - $
- - - 59,641 59,640 (1) - - -
- 1,500 (1,500) - - - - - -
- - - - - - 2,060 2,881 821
- - - - - - - - -
1,512 264 1,248 763 2,013 1,250 52 364 312
1,512 1,764 (252) 60,404 61,653 1,249 2,112 3,245 1,133 - - - - - - - - -
3,868 75,000 71,132 - - - - - -
- - - 94,105 57,695 36,410 - - -
- - - - - - 3,380 4,779 (1,399)
- - - - - - - - -
3,868 75,000 71,132 94,105 57,695 36,410 3,380 4,779 (1,399) (2,356) (73,236) 70,880 (33,701) 3,958 37,659 (1,268) (1,534) (266) - - - - - - - - -
- - - 5,355 5,355 - - - -
- - - - - - - - -
- - - 5,355 5,355 - - - -
$ (2,356) (73,236) 70,880 $ (28,346) $ 9,313 37,659 $ (1,268) $ (1,534) (266) $ 84,933 67,037 17,448
$ 94,246 64,681 $ 15,914 $
(Continued)

CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended June 30, 2023
Landscaping and Lighting
Assessment District 22
79 Vehicle Abatement Affordable Housing
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
Revenues:

Property taxes - $ - $ - $ - $ - $ - $
Other taxes and special assessments - - - - - -
Intergovernmental 15,450 9,121 (6,329) - - -
Charges for services 100 (100) (200) - - -
Fines and forfeitures - - - - - -
Use of money and property - - - 1,545 13,898 12,353
Total revenues 15,550 9,021 (6,529) 1,545 13,898 12,353 Expenditures:

Current:

General government - - - - - -
Public safety - - - - - -
Transportation - - - - - -
Community development 10,057 22,760 12,703 1,030 61 969 Capital outlay - - - - - -
Total expenditures 22,760 10,057 12,703 1,030 61 969
Excess (deficiency) of revenues
over (under) expenditures (7,210) (1,036) 6,174 515 13,837 13,322 Other financing sources (uses):

Proceeds from sale of capital asset - - - - - -
Transfers in - - - - - -
Transfers out - - - - - -
Total other financing sources (uses) - - - - - -
Change in fund balances (7,210) $ (1,036) 6,174 $ 515 $ 13,837 13,322 $ Fund balances, beginning of year 153,411 570,822
Fund balances, end of year 152,375 $ 584,659 $
For the Year Ended June 30, 2023

CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
80 Traffic Congestion Relief
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $ - - $ - $ - $ - $ - $ - $ - $ - $
- - - - - - - - -
- - - - - - - - -
- - - - - - 130,000 217,997 87,997
- - - - - - - - -
- - - - 1,750 1,750 1,500 5,799 4,299
- - - - 1,750 1,750 131,500 223,796 92,296
- - - - - - - - -
- - - - - - - - -
- - - - - - 1,048,563 363,787 684,776
- - - - - - - - -
- - - - - - - - -
- - - - - - 1,048,563 363,787 684,776
- - - - 1,750 1,750 (917,063) (139,991) 777,072
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
$ - - - $ - $ 1,750 1,750 $ (917,063) $ (139,991) 777,072 $ 1,950 118,355 265,246
$ 3,700 118,355 $ 125,255 $
(Continued)
Disability Access General Plan Fee

CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended June 30, 2023
81 HCD Housing Grant Capital Outlay
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
Revenues:

Property taxes - $ - $ - $ - $ - $ - $
Other taxes and special assessments - - - - 9,300 9,300 Intergovernmental - 91,390 91,390 - - -
Charges for services - - - - - -
Fines and forfeitures - - - - - -
Use of money and property - - - 103 1,351 1,248
Total revenues - 91,390 91,390 103 10,651 10,548
Expenditures:

Current:

General government - - - - - -
Public safety - - - - - -
Transportation - - - - - -
Community development - 80,000 80,000 - - -
Capital outlay - - - - - -
Total expenditures 80,000 - 80,000 - - -
Excess (deficiency) of revenues
over (under) expenditures (80,000) 91,390 171,390 103 10,651 10,548 Other financing sources (uses):

Proceeds from sale of capital asset - - - - - -
Transfers in - - - - - -
Transfers out - - - - - -
Total other financing sources (uses) - - - - - -
Change in fund balances (80,000) $ 91,390 171,390 $ 103 $ 10,651 10,548 $ Fund balances, beginning of year (91,390) 48,057
Fund balances, end of year - $ 58,708 $
For the Year Ended June 30, 2023

CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
82 Computer Technology and
Replacement
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $ - - $ - $ - $ - $ - $ - $ - $ - $
- - - - - - - - -
- - - 45,753 96,920 51,167 - - -
- - - - - - - - -
- - - - - - - - -
- - - 93 2,722 2,629 - - -
- - - 45,846 99,642 53,796 6,000 - (6,000)
- - - 1,185 - 1,185 - - -
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
821,850 1,094,538 272,688 - - - 559,991 354,413 205,578 821,850 1,094,538 272,688 1,185 - 1,185 559,991 354,413 205,578 (821,850) (1,094,538) 272,688 44,661 99,642 54,981 (553,991) (354,413) 199,578 - - - - - - 6,000 - (6,000)
883,112 709,550 173,562 - - - 306,297 306,297 -
- - - - - - - - -
883,112 709,550 173,562 - - - 312,297 306,297 (6,000)
$ 61,262 (384,988) 446,250 $ 44,661 $ 99,642 54,981 $ (241,694) $ (48,116) 193,578 $ 67,675 (1,077) 311,176
$ 167,317 60,185 $ 263,060 $
(Continued)
Replacement
Nonmajor Governmental Funds
Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended June 30, 2023
Public Educational and
Capital Grant
Governmental Access Vehicles and Equipment

CITY OF PLEASANT HILL
83 Police Technology Capital Projects
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
Revenues:

Property taxes - $ - $ - $ - $ - $ - $
Other taxes and special assessments - - - - - -
Intergovernmental - - - - - -
Charges for services - - - - - -
Fines and forfeitures - - - - - -
Use of money and property - - - - - -
Total revenues - - - - - -
Expenditures:

Current:

General government - - - - - -
Public safety - - - - 1,428 (1,428)
Transportation - - - - - -
Community development - - - - - -
Capital outlay 539,765 383,655 156,110 1,977,608 281,835 1,695,773 Total expenditures 539,765 383,655 156,110 1,977,608 283,263 1,694,345 Excess (deficiency) of revenues
over (under) expenditures (539,765) (383,655) 156,110 (1,977,608) (283,263) 1,694,345 Other financing sources (uses):

Proceeds from sale of capital asset - - - - - -
Transfers in 450,000 450,000 - 1,920,000 111,385 (1,808,615) Transfers out - - - - - -
Total other financing sources (uses) 450,000 450,000 - 1,920,000 111,385 (1,808,615) Change in fund balances (89,765) $ 66,345 156,110 $ (57,608) $ (171,878) (114,270) $ Fund balances, beginning of year 881,496 632,006
Fund balances, end of year 947,841 $ 460,128 $
(Concluded)

CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended June 30, 2023
84 CITY OF PLEASANT HILL
Custodial Funds
Year Ended June 30, 2023
85 Custodial funds are used to account for assets held by the City in a fiduciary capacity on behalf of others.

Specific custodial funds are as follows:

Acme Landfill Closure Fund - accounts for funds collected by Pleasant Hill Bayshore Disposal Company from their Pleasant Hill ratepayers prior to February 8, 1993 and turned over to the City on that date for the purpose of covering future costs of the closure of the Acme Landfill. In addition, from November 1994 through June 1997, savings from the Keller Canyon Landfill rate reduction were deposited into this fund.

Transpac Fund - accounts for contributions from TRANSPAC member agencies in central County of Contra Costa and the use of those funds for transportation planning and information purposes.

Asset Forfeiture Holding Fund - accounts for cash seized in drug cases, the distribution of which is determined later by the court. Distribution is most often among the law enforcement agencies involved in the arrest and investigation. If the City receives a portion, it is transferred to the Police Special Services Fund.

Acme Landfill Asset Forfeiture
Closure Transpac Holding Fund Total
Assets:

Cash and investments held in City Treasury 72,390 $ 158,534 $ 300,947 $ 531,871 $ Interest receivable 603 1,318 - 1,921
Total Assets 72,993 159,852 300,947 533,792
Liabilities:

Accounts payable and accruals - 64,475 - 64,475
Net Position:

Restricted for:

Governmental entities and others 72,993 95,377 300,947 469,317 Total net position 72,993 $ 95,377 $ 300,947 $ 469,317 $

CITY OF PLEASANT HILL
Custodial Funds
Combining Statement of Fiduciary Net Position
For the Year Ended June 30, 2023
86 Acme Landfill Asset Forfeiture
Closure Transpac Holding Fund Total
Additions:

Members contributions - $ 277,001 $ - $ 277,001 $
Investment earnings - 5,864 - 5,864
Others 1,723 - 231,114 232,837
Total additions 1,723 282,865 231,114 515,702
Deductions:

Benefits paid to participants or beneficiaries - 10,510 10,330 20,840 Administrative and general - 257,560 - 257,560
Total deductions - 268,070 10,330 278,400
Changes in net position 1,723 14,795 220,784 237,302
Net position, beginning of year 71,270 80,582 80,163 232,015 Net position, end of year 72,993 $ 95,377 $ 300,947 $ 469,317 $

CITY OF PLEASANT HILL
Custodial Funds
Combining Statement of Changes in Fiduciary Net Position For the Year Ended June 30, 2023
87 88
This page is left intentionally blank.

CITY OF PLEASANT HILL
Statistical Section
Year Ended June 30, 2023
89 This part of the City’s Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health. In contrast to the financial section, the statistical section information is not subject to independent audit.

Financial Trends
These schedules contain trend information to help the reader understand how the City’s financial performance and well being have changed over time:

1. Net Position by Component

2. Changes in Net Position

3. Fund Balances of Governmental Funds

4. Changes in Fund Balances of Governmental Funds
Revenue Capacity
These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax:

1. Assessed and Estimated Actual Net Value of Taxable Property

2. Property Tax Rates, All Direct and Overlapping Governments

3. Principal Property Taxpayers

4. Property Tax Levies and Collections
Debt Capacity
These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future:

1. Ratio of Outstanding Debt by Type

2. Computation of Direct and Overlapping Debt

3. Computation of Legal Bonded Debt Margin
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place:

1. Demographic Statistics

2. Top 25 Sales Tax Producers

3. Taxable Sales by Category
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs:

1. Full-Time Equivalent City Government Employees by Function

2. Operating Indicators by Function/Program

3. Capital Asset Statistics by Function/Program
Sources
Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports for the relevant year.

CITY OF PLEASANT HILL
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
June 30,
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Governmental activities
Net investment in capital assets 66,029,250 $ 65,099,649 $ 66,114,333 $ 66,589,844 $ 63,663,298 $ 65,031,586 $ 68,718,885 $ 68,319,097 $ 72,317,902 $ 73,152,809 $ Restricted 11,586,938 11,474,912 12,279,862 8,990,013 10,184,878 10,926,436 12,540,185 13,702,342 13,683,554 16,507,795 Unrestricted 12,351,893 (19,918,513) (18,511,367) (20,106,826) (17,751,134) (21,879,791) (24,614,367) (20,353,944) (22,422,928) (13,916,055) Total governmental activities net position $ 56,656,048 89,968,081 $ 59,882,828 $ 55,473,031 $ 56,097,042 $ 54,078,231 $ 56,644,703 $ 61,667,495 $ 63,578,528 $ 75,744,549 $ Business-type activities
Net investment in capital assets 418,115 $ 532,590 $ 524,375 $ 508,158 $ 491,941 $ 479,673 $ 464,476 $ 452,208 $ 439,940 $ 1,034,920 $ Unrestricted 593,780 530,294 641,480 752,682 481,814 570,177 688,812 711,427 856,748 427,639 Total business-type activities net position $ 1,062,884 1,011,895 $ 1,165,855 $ 1,260,840 $ 973,755 $ 1,049,850 $ 1,153,288 $ 1,163,635 $ 1,296,688 $ 1,462,559 $ Primary government
Net investment in capital assets 66,447,365 $ 65,632,239 $ 66,638,708 $ 67,098,002 $ 64,155,239 $ 65,511,259 $ 69,183,361 $ 68,771,305 $ 72,757,842 $ 74,187,729 $ Restricted 11,586,938 11,474,912 12,279,862 8,990,013 10,184,878 10,926,436 12,540,185 13,702,342 13,683,554 16,507,795 Unrestricted 12,945,673 (19,388,219) (17,869,887) (19,354,144) (17,269,320) (21,309,614) (23,925,555) (19,642,517) (21,566,180) (13,488,416) Total primary government net position $ 57,718,932 90,979,976 $ 61,048,683 $ 56,733,871 $ 57,070,797 $ 55,128,081 $ 57,797,991 $ 62,831,130 $ 64,875,216 $ 77,207,108 $ (40,000)
(20,000)
0 20,000
40,000
60,000
80,000
100,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Thousands
Primary Government Net Position
Net investment in capital assets Restricted Unrestricted 90 CITY OF PLEASANT HILL
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
For the Fiscal Year Ended June 30,
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Expenses:

Governmental Activities:

General Government $ 4,800,859 4,486,256 $ 4,586,389 $ 5,701,798 $ 7,804,038 $ 7,507,044 $ 9,741,367 $ 8,432,265 $ 13,230,100 $ 5,231,155 $ Public Safety 8,789,637 8,931,818 10,061,265 11,729,664 11,259,884 12,791,053 14,033,317 12,925,841 13,757,204 11,198,560 Transportation 6,618,300 16,701,264 9,105,613 14,220,552 13,224,055 13,283,195 8,187,274 12,319,001 9,043,753 14,347,929 Community Development 2,450,528 2,550,154 2,927,165 3,206,118 3,010,100 3,015,887 2,333,180 2,360,910 2,735,359 2,478,310 Interest and fiscal charges 176,388 223,433 120,227 60,991 17,092 - - 540,308 422,838 386,463 Total Governmental Activities Expenses 32,918,676 22,809,961 26,800,659 34,919,123 35,315,169 36,597,179 34,295,138 36,578,325 39,189,254 33,642,417 Business-Type Activities:

Water 253,159 225,220 217,928 244,104 639,196 293,878 277,436 374,555 267,391 272,115 Total Primary Government Expenses $ 33,171,835 23,035,181 $ 27,018,587 $ 35,163,227 $ 35,954,365 $ 36,891,057 $ 34,572,574 $ 36,952,880 $ 39,456,645 $ 33,914,532 $ Program Revenues:

Governmental Activities:

Charges for Services:

General Government $ 166,381 166,671 $ 192,303 $ 211,572 $ 170,460 $ 184,576 $ 193,465 $ 169,873 $ 219,754 $ 253,534 $ Public Safety 159,012 157,498 184,889 138,235 171,815 144,705 168,603 136,890 152,063 126,900 Transportation 663,656 401,395 404,750 689,386 459,815 517,371 443,989 588,604 559,516 2,394,612 Community Development 1,279,317 1,813,011 1,559,622 1,497,427 2,338,500 1,894,162 1,976,711 1,858,417 2,200,779 2,762,111 Operating Grants and Contributions 4,021,630 1,870,975 2,956,236 1,957,507 4,003,002 2,920,746 3,976,194 7,357,717 4,603,393 5,345,762 Capital Grants and Contributions 6,784,859 7,382,654 2,863,421 2,516,719 1,822,233 56,542 398,901 561,295 208,381 96,920 Total Governmental Activities Program Revenues 12,812,594 12,054,465 8,161,221 7,010,846 8,965,825 5,718,102 7,157,863 10,672,796 7,943,886 10,979,839 Business-Type Activities:

Charges for Services:

Diablo Vista Water System 134,520 134,520 134,235 134,235 133,950 133,950 133,950 133,950 133,950 133,950 $ 12,947,114 12,188,985 $ 8,295,456 $ 7,145,081 $ 9,099,775 $ 5,852,052 $ 7,291,813 $ 10,806,746 $ 8,077,836 $ 11,113,789 $ Net (Expense)/Revenue
Governmental Activities $ (20,106,082) (10,755,496) $ (18,639,438) $ (27,908,277) $ (26,349,344) $ (30,879,077) $ (27,137,275) $ (25,905,529) $ (31,245,368) $ (22,662,578) $ Business-Type Activities (118,639) (90,700) (83,693) (109,869) (505,246) (159,928) (143,486) (240,605) (133,441) (138,165) Total Primary Government Net Expense $ (20,224,721) (10,846,196) $ (18,723,131) $ (28,018,146) $ (26,854,590) $ (31,039,005) $ (27,280,761) $ (26,146,134) $ (31,378,809) $ (22,800,743) $ Total Primary Government Program Revenues
91 CITY OF PLEASANT HILL
Changes in Net Position (continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Governmental Activities:

Taxes:

Property Taxes $ 5,975,571 5,706,908 $ 6,231,850 $ 6,619,240 $ 6,986,641 $ 7,257,893 $ 7,817,772 $ 8,298,137 $ 8,714,018 $ 9,422,570 $ Sales Taxes 7,508,399 7,736,714 8,598,230 8,437,462 8,547,152 8,595,458 9,498,892 10,650,037 11,001,808 10,999,559 Measure K Transaction and Use Tax - - - 913,316 3,934,343 4,419,035 4,182,302 4,885,076 5,344,293 5,478,120 Other Taxes (a) 6,036,889 6,510,044 6,830,548 7,120,733 7,238,645 7,739,278 7,626,265 6,840,111 8,411,477 8,082,057 Investment Earnings 137,025 18,997 113,924 117,561 168,458 657,998 472,936 190,610 (447,458) 788,597 Miscellaneous 46,688 45,330 91,666 290,168 98,116 190,604 105,580 64,350 132,263 57,696 Total Governmental Activities 20,406,042 19,316,523 21,866,218 23,498,480 26,973,355 28,860,266 29,703,747 30,928,321 33,156,401 34,828,599 Business-Type Activities:

Property Taxes 168,073 149,214 184,412 199,345 209,118 222,338 234,529 247,463 263,325 287,428 Investment Earnings 1,555 1,350 2,252 5,509 9,043 13,685 12,395 3,489 3,169 16,608 Total Business-Type Activities 169,628 150,564 186,664 204,854 218,161 236,023 246,924 250,952 266,494 304,036 Total Primary Government $ 20,575,670 19,467,087 $ 22,052,882 $ 23,703,334 $ 27,191,516 $ 29,096,289 $ 29,950,671 $ 31,179,273 $ 33,422,895 $ 35,132,635 $ Change in Net Position
Governmental Activities $ 299,960 8,561,027 $ 3,226,780 $ (4,409,797) $ 624,011 $ (2,018,811) $ 2,566,472 $ 5,022,792 $ 1,911,033 $ 12,166,021 $ Business-Type Activities 50,989 59,864 102,971 94,985 (287,085) 76,095 103,438 10,347 133,053 165,871 Total Primary Government $ 350,949 8,620,891 $ 3,329,751 $ (4,314,812) $ 336,926 $ (1,942,716) $ 2,669,910 $ 5,033,139 $ 2,044,086 $ 12,331,892 $ (a) Includes franchise, transient occupancy, and other taxes General Revenues and
Other Changes in Net Position
92 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
General Fund
Restricted 890,703 $ 890,703 $ 890,703 $ 890,703 $ - $ - $ - $ 14,405,714 $ 4,164,686 $ 491,263 $ Assigned 8,088,146 8,138,277 8,244,143 9,079,046 12,403,387 11,923,505 11,829,908 17,254,645 16,535,198 14,783,715 Unassigned 5,087,502 5,031,285 5,175,170 3,386,999 2,955,251 386,350 575,986 1,442,001 1,398,465 2,968,559 Total General Fund $ 14,060,265 14,066,351 $ 14,310,016 $ 13,356,748 $ 15,358,638 $ 12,309,855 $ 12,405,894 $ 33,102,360 $ 22,098,349 $ 18,243,537 $ All Other Governmental Funds
Nonspendable 124,489 $ 41,496 $ 217,163 $ 128,707 $ 41,750 $ - $ - $ - $ - $ - $ Restricted 9,918,262 10,267,097 10,752,993 8,764,911 9,786,935 10,443,105 11,911,302 11,637,657 13,190,336 14,782,004 Committed 1,349,207 1,167,308 789,585 742,454 1,105,078 773,160 1,022,449 1,004,658 1,824,678 1,661,214 Assigned - - - - - 676,000 857,771 181,631 1,349,631 3,473,891 Unassigned (273,571) (292,053) (349) (2,442,390) (250,125) (122,615) (646) (38,451) (103,691) (5,224) Total all other governmental funds 11,118,387 $ 11,183,848 $ 11,759,392 $ 7,193,682 $ 10,683,638 $ 11,769,650 $ 13,790,876 $ 12,785,495 $ 16,260,954 $ 19,911,885 $ Notes:

The change in total fund balance for the General Fund and other governmental funds is explained in the Management's Discussion and Analysis section.

June 30,

CITY OF PLEASANT HILL
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
‐
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Thousands
General Fund
Restricted Assigned Unassigned
93 CITY OF PLEASANT HILL
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Fiscal Year Ended June 30,
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Revenues
Taxes 20,020,926 $ 21,004,157 $ 22,430,711 $ 23,702,930 $ 27,678,904 $ 28,803,232 $ 29,894,153 $ 30,053,298 $ 34,653,497 $ 34,750,534 $ Licenses, permits and fees 583,804 532,040 713,527 672,519 937,122 935,597 992,074 979,185 1,380,049 1,706,870 Intergovernmental revenues 9,688,815 10,994,559 5,845,401 3,432,676 6,929,650 3,023,531 4,432,153 7,913,725 4,816,806 6,760,998 Charges for services 1,250,908 553,551 660,785 931,803 1,221,440 888,450 871,529 936,198 905,192 1,601,605 Fines and forfeitures 109,892 136,499 161,505 196,481 122,079 112,911 97,347 39,298 47,858 47,121 Use of money and property 18,997 137,025 113,923 117,560 168,458 657,993 472,935 190,610 (447,457) 788,600 Other 58,310 32,808 58,241 274,902 79,873 159,503 51,431 39,217 73,042 152,321 Total Revenues 31,731,652 33,390,639 29,984,093 29,328,871 37,137,526 34,581,217 36,811,622 40,151,531 41,428,987 45,808,049 Expenditures
Current:

General government 4,184,701 4,519,012 4,562,647 5,345,224 6,913,938 7,150,693 8,143,854 7,983,400 9,393,390 10,069,332 Public safety 8,545,697 8,854,439 9,602,520 10,376,494 9,901,567 11,136,367 11,475,213 11,393,541 12,644,842 12,376,893 Transportation 12,454,552 14,431,482 8,881,519 12,915,352 10,119,727 11,056,926 9,834,764 12,231,771 6,276,410 10,666,831 Community development 2,540,791 2,527,121 2,985,366 3,058,412 2,934,130 2,908,926 2,289,434 2,265,054 2,631,025 2,802,753 Capital outlay 946,311 1,325,838 1,472,864 1,425,460 899,411 4,305,349 2,977,497 10,921,175 15,539,289 7,603,749 Debt service:

Principal repayment 1,458,000 1,499,000 1,550,000 1,668,000 872,000 - - 1,555,719 2,066,668 2,102,993 Interest and fiscal charges 220,609 179,575 123,524 64,593 18,283 - - 505,864 425,704 389,379 Total Expenditures 30,350,661 33,336,467 29,178,440 34,853,535 31,659,056 36,558,261 34,720,762 46,856,524 48,977,328 46,011,930 Excess (deficiency) of revenues over
(under) expenditures 1,380,991 54,172 805,653 (5,524,664) 5,478,470 (1,977,044) 2,090,860 (6,704,993) (7,548,341) (203,881) Other Financing Sources (Uses)
Transfers in 2,930,815 3,243,517 3,271,101 4,315,992 3,912,300 7,184,244 6,237,614 3,046,721 5,935,299 9,708,970 Transfers (out) (2,930,815) (3,243,517) (3,271,101) (4,315,992) (3,912,300) (7,184,244) (6,237,614) (3,046,721) (5,935,299) (9,708,970) Proceeds from issuance of long term debt - - - - - - 26,396,078 - - Proceeds from sale of capital assets 11,060 5,203 19,642 5,686 13,376 14,273 26,405 - 19,789 - Total other financing sources (uses) 11,060 5,203 19,642 5,686 13,376 14,273 26,405 26,396,078 19,789 - Net change in fund balances 1,392,051 $ 59,375 $ 825,295 $ (5,518,978) $ 5,491,846 $ (1,962,771) $ 2,117,265 $ 19,691,085 $ (7,528,552) $ (203,881) $ Debt service as a percentage of
noncapital expenditures 5.7% 5.2% 6.0% 5.2% 2.9% 0.0% 0.0% 5.7% 7.5% 6.5% 94 CITY OF PLEASANT HILL
Assessed and Estimated Actual
Net Value of Taxable Property
Last Ten Fiscal Years
Real Property Total Real Total
Fiscal Residential Commercial Industrial Secured Unsecured Total Estimated Direct Year Property Property Property Other Property Property Assessed (a) Full Market (a) Tax Rate (b) 2014 $3,638,619,711 $736,703,106 $14,875,080 $55,498,231 $4,445,696,128 $105,093,519 $4,550,789,647 $4,550,789,647 5.66% 2015 4,046,306,836 760,045,593 13,317,659 77,930,272 4,874,257,873 107,861,285 4,982,119,158 4,982,119,158 5.66% 2016 4,328,068,359 804,447,646 15,245,789 59,799,203 5,207,537,997 110,394,079 5,317,935,076 5,317,935,076 5.66% 2017 4,561,291,596 821,147,666 15,478,279 73,434,814 5,471,352,355 110,532,287 5,581,884,642 5,581,884,642 5.66% 2018 4,809,775,559 883,832,421 15,787,834 61,281,511 5,770,677,325 105,018,890 5,875,696,215 5,875,696,215 5.66% 2019 5,045,097,655 941,272,641 24,799,843 57,874,754 6,069,044,893 103,265,968 6,172,310,861 6,172,310,861 5.66% 2020 5,412,543,931 982,813,017 25,295,829 87,548,623 6,508,201,400 108,631,243 6,616,832,643 6,616,832,643 5.66% 2021 5,692,653,247 1,077,462,192 25,801,736 65,424,606 6,861,341,781 103,580,600 6,964,922,381 6,964,922,381 5.66% 2022 5,979,006,914 1,089,701,150 26,069,032 110,351,306 7,205,128,402 102,552,352 7,307,680,754 7,307,680,754 5.66% 2023 6,366,321,529 1,130,221,737 26,590,402 121,438,881 7,644,572,549 118,110,873 7,762,683,422 7,762,683,422 5.66% Source: Contra Costa County Assessor Combined Tax Rolls-report provided by HdL Companies (a) The State Constitution requires property to be assessed at one hundred percent of the most recent purchase price, plus an increment of no more than two percent annually, plus any local over-rides.
(b) California cities do not set their own direct tax rate. The State Constitution establishes the rate at 1% and allocates a portion of that amount, by an annual calculation, to all the taxing entities within a tax rate area.

Exempt Values are not included in totals.
‐
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Millions
Assessed Value
Unsecured Property Secured Property
95 CITY OF PLEASANT HILL
Property Tax Rates (1)
All Direct And Overlapping Governments
Last Ten Fiscal Years
##
Contra Schools and Miscellaneous Total
Fiscal Costa College Special Direct
Year County City (2) Districts Districts Rate
2014 0.1030 0.0566 0.5349 0.3055 1.0000
2015 0.1030 0.0566 0.5349 0.3055 1.0000
2016 0.1030 0.0566 0.5349 0.3055 1.0000
2017 0.1030 0.0566 0.5349 0.3055 1.0000
2018 0.1030 0.0566 0.5349 0.3055 1.0000
2019 0.1030 0.0566 0.5349 0.3055 1.0000
2020 0.1030 0.0566 0.5349 0.3055 1.0000
2021 0.1030 0.0566 0.5349 0.3055 1.0000
2022 0.1030 0.0566 0.5349 0.3055 1.0000
2023 0.1030 0.0566 0.5349 0.3055 1.0000
Source: County Auditor/Controller's Office
(1) Per $1,000 assessed value
(2) The rates shown are not levied rates, but rather "rate-equivalents." The County, in the application of the Tax Equity Allocation (TEA) formula specified by the 1987 amendments to the Trial Court Funding Act, created these rates to accomplish the property tax shift required by the law. See Note (1) on the "Property Values and Tax Levies and Collections" page for a more detailed explanation.

0.0 0.2

0.4 0.6
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Property Tax Rates (per $1000 Assessed Value)
City Contra Costa County Miscellaneous Special District Schools and College Districts 96 Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
PH Crescent Drive Investors 115,023,644 $ 1 1.48% n/a n/a n/a IMT Capital IV Pleasant Hill 95,818,684 2 1.23% n/a n/a n/a 235 Camelback LLC 93,728,103 3 1.21% n/a n/a n/a
FW California PH Shopping Center LLC 74,448,494 4 0.96% 62,093,438 2 1.36% WM Villa Montanaro LLC 55,661,489 5 0.72% 45,064,190 3 0.99% Tilden Ellinwood LLC 49,209,583 6 0.63% n/a n/a n/a
Terra Hospitality-SFMSA LLC 40,602,843 7 0.52% n/a n/a n/a Q Van Ness LLC 39,312,008 8 0.51% n/a n/a n/a
Pennisular Realty LLC 38,130,986 9 0.49% n/a n/a n/a
LMOF III 400 Taylor LLC 37,801,204 10 0.49% n/a n/a n/a Loja Pleasant Hill LLC n/a n/a n/a 80,623,707 1 1.77%
GSG Residl Iron Horse Park n/a n/a n/a 42,590,934 4 0.94% Grupe Real Estate Investors 29 n/a n/a n/a 35,357,667 5 0.78% Oxford Gardens LLC n/a n/a n/a 33,112,568 6 0.73%
EQR Watson General Partnership n/a n/a n/a 32,416,337 7 0.71% MGP X DVC LLC n/a n/a n/a 31,164,294 8 0.68%
Gallup and Whalen Santa Maria n/a n/a n/a 23,021,000 9 0.51% ERP Operating Limited n/a n/a n/a 21,939,326 10 0.48%
Total Ten Total 639,737,038 $ 8.24% 407,383,461 $ 8.95% City Total 7,762,683,422 $ 4,550,789,647 $

Source: County Assessor Fiscal Year Combined Tax Rolls.

CITY OF PLEASANT HILL
Principal Property Taxpayers
Current Year and Ten Years Ago
2022-2023 2013-2014
97 CITY OF PLEASANT HILL
Property Tax Levies and Collections
Last Ten Fiscal Years (1)
2004
Collections
Total Tax as of the end
Levied and of the Levy Year
Fiscal Year Collected as a % of Levy
2014 5,706,908 $ 100%
2015 5,975,571 100%
2016 6,231,850 100%
2017 6,619,240 100%
2018 6,986,641 100%
2019 7,257,893 100%
2020 7,817,772 100%
2021 8,298,137 100%
2022 8,714,018 100%
2023 9,422,570 100%
Source: City of Pleasant Hill Annual Comprehensive Financial Reports and Contra Costa County Please note the County distributes property taxes to jurisdications under the "alternate method of property tax distribution known as the Teeter Plan Under this plan the County remits 100% of the levied taxes to the City by June 30 of each year. (1) Pleasant Hill was incorporated in 1961 as a "No-Property Tax" city. The citizens wanted a minimum-service city that could be supported by revenues other than property taxes. Annexations over the years brought a minimum amount of annual property tax revenue to the City from Contra Costa County, as required by the annexation process. Beginning in fiscal year 1989-90, and due to State legislation in 1988 which was designed to bring some relief to no/low property tax cities, the County shifted some of its property taxes to Pleasant Hill in exchange for state trial court funding. The shift was designed to be phased in over seven years, starting at 1% and increasing 1% per year for seven years, leveling out at 7%.

Due to later ERAF legislation, the shift was adjusted to level out at 6.09% instead of 7% and will remain there unless the law changes. The annual shift is a result of a formula specified in the law, and is included in the amounts listed here. In addition, the Redevelopment Agency has received property tax increments since 1975 to service debt and, as required by law since 1977, to fund low and moderate housing and rehabilitation; only the amount used for debt service is included here. $1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
$9.0
$10.0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Millions
Taxes Levied and Collected
Taxes Levied
98 CITY OF PLEASANT HILL
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
2013 CalPERS Bank of Montreal Lease
Refunding Loan Loan for Revenue
Fiscal Year with Umpqua Bank Library Project Refunding Total 2014 3,319,000 $ n/a 2, $ 5, 270,000 $ 589,000
2015 2,530,000 n/a 1, 4, 560,000 090,000
2016 1,715,000 n/a 2, 825,000 540,000
2017 872,000 n/a - 872,000
2018 - n/a - -
2019 - n/a - -
2020 - n/a - -
2021 - 24, $ - 840,359 24, 840,359
2022 - 22, - 773,691 22, 773,691
2023 - 20, - 670,698 20, 670,698
Fiscal Year
Total Primary
Government
Percentage of
Personal Income Per Capita
2014 4,090,000 0.29% 121.61
2015 2,540,000 0.18% 74.99
2016 872,000 0.06% 25.71
2017 n/a n/a n/a
2018 n/a n/a n/a
2019 n/a n/a n/a
2020 n/a n/a n/a
2021 24,840,359 (a) 1.37% 724.91
2022 22,773,691 1.15% 667.20
2023 20,670,698 0.96% 618.94
Sources: Reported as calendar year provided by HdL Companies report based on the following sources:

Population: California Department of Finance
Unemployment Data: California Employment Development Department (a)
Income, Age and Education Data: ESRI-Demographic estimates based on the last available Census. Projections are developed by incorporating all of the prior census data released to date. Post census trends in the population are extracted from a variety of date sources. Demographic Data is totaled form Census Block Groups that overlap the City's boundaries.

Governmental Activities-includes General, Redevelopment and Special Assessment Debt (excludes Successor Agency) During fiscal year 20/21, the City entered into loan financing with Bank of Montreal (formerly Bank of the West) for the library project.
$‐
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Thousands
Amount of Outstanding Debt
Governmental Activities
99 CITY OF PLEASANT HILL
Computation of Direct and Overlapping Debt
June 30, 2023
2022-23 Assessed Valuation $ 7,762,683,422
Percentage Amount
Net Applicable Applicable
Debt To City of To City of
OVERLAPPING TAX AND ASSESSMENT DEBT: Outstanding Pleasant Hill (1) Pleasant Hill Bay Area Rapid Transit District $ 0.815% 20,246,923 2,484,285,000 $ East Bay Regional Park District 1.290% 2,269,820 175,955,000 Contra Costa Community College District 649,015,000 3.087% 20,035,093 Mount Diablo Unified School District 388,584,259 15.225% 59,161,953 Mount Diablo Unified School District Community Facilities District No. 1 3,170,000 15.251% 483,457 Pleasant Hill Recreation and Park District 21,920,000 76.545% 16,778,664 TOTAL GROSS DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $ 118,975,910 3,722,929,259 $ TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $ 118,975,910 DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Contra Costa County General Fund Obligations 193,515,000 $ 3.077% 5,954,457 $ Mount Diablo Unfiied School District Certificates of Participation 11,350,000 15.225% 1,728,038 Pleasant Hill Recreation and Park District Certificates of Participation 5,058,000 76.545% 3,871,646 City of Pleasant Hill General Fund Obligation 20,670,698 100.000% 20,670,698 TOTAL OVERLAPPING GENERAL FUND OBLIGATION DEBT $ 32,224,839 230,593,698 $ Less: Contra Costa County self-supported 1,567,096
NET DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 30,657,743 OVERLAPPING TAX INCREMENT DEBT (Successor Agency) 3,680,000 $ 100.000% 3,680,000 $ TOTAL DIRECT DEBT $ 20,670,698
TOTAL GROSS OVERLAPPING DEBT $ 134,210,051
TOTAL NET OVERLAPPING DEBT $ 132,642,955
GROSS COMBINED TOTAL DEBT $ 154,880,749
NET COMBINED TOTAL DEBT $ 153,313,653 (1) Percentage of overlapping agency's assessed valuation located within boundaries of the City.

RATIOS TO 2022-23 ASSESSED VALUATION:

Total Overlapping Tax and Assessment Debt 1.53%
Total Direct Debt ($24,840,359) 0.27%
Gross Combined Total Debt 2.00%
Net Combined Total Debt 1.98%
RATIOS TO REDEVELOPMENT SUCCESSOR AGENCY INCREMENTAL VALUE ($745,432,590):

Total Overlapping Tax Increment Debt 0.49%
Source: California Municipal Statistics, Inc.

Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-bonded capital lease obligations. 100

CITY OF PLEASANT HILL
Computation of Legal Bonded Debt Margin
Last Ten Fiscal Years
ASSESSED VALUATION:

Secured property assessed value, net of exempt real property $ 7,762,683,422 BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a) $ 291,100,628 AMOUNT OF DEBT SUBJECT TO LIMIT (b): (20,670,698)
LEGAL BONDED DEBT MARGIN $ 270,429,930
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 170,654,612 2,270,000 168,384,612 1.35%
2015 186,829,468 1,560,000 185,269,468 0.84%
2016 198,597,565 825,000 197,772,565 0.42%
2017 209,320,674 - 209,320,674 0.00%
2018 220,338,608 - 220,338,608 0.00%
2019 231,461,657 - 231,461,657 0.00%
2020 248,131,224 - 248,131,224 0.00%
2021 261,184,589 24,840,359 236,344,230 10.51%
2022 274,038,028 22,773,691 251,264,337 9.06%
2023 291,100,628 20,670,698 270,429,930 7.64%
NOTE:
(a)
(b)
California Government Code, Section 43605 sets the debt limit at 15%. The Code section was enacted prior to the change in basing assessed value to full market value when it was previously 25% of market value. Thus, the limit shown as 3.75% is onefourth the limit to account for the adjustment of showing assessed valuation at full cash value.

Includes special assessment bonds and all debt supported by general fund revenues, including general obligations, street bonds, refunding lease revenue bonds and lease financing loan. Excludes Pleasant Hill Redevelopment Agency tax allocation refunding bonds.
101

CITY OF PLEASANT HILL
Demographic Statistics
Last Ten Calendar Years
Calendar
Year
City
Population
Personal Income
(in thousands)
Per Capita
Personal
Income
Unemployment
Rate
2013 33,872 $1,396,373 $41,225 4.9%
2014 33,917 1,442,083 42,518 5.1%
2015 34,077 1,474,841 43,279 4.2%
2016 34,657 1,480,283 42,712 3.7%
2017 35,068 1,619,591 46,184 3.0%
2018 35,055 1,736,518 49,593 2.8%
2019 34,267 1,810,977 52,849 2.7%
2020 34,133 1,974,023 57,833 7.5%
2021 34,026 2,026,959 59,570 5.2%
2022 33,397 2,156,060 64,558 3.1%
Source: Reports as of calendar year provided by the HdL Companies 32,500
33,000
33,500
34,000
34,500
35,000
35,500
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
City Population
$0
$20,000
$40,000
$60,000
$80,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Per Capita Personal Income

0.0%

2.0%

4.0%

6.0%

8.0%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Unemployment Rate
102

CITY OF PLEASANT HILL
Top 25 Sales Tax Producers
Current Year and Nine Years Ago
* Business in Top 25 of the Sales Tax Producers
Business Name Business Category 2022-23 2013-14
Arco Service Stations x
AT&T Mobility Electronics/Appliance Stores x
Bed Bath & Beyond Home Furnishings x
Best Buy Electronics/Appliance Stores x x
Burlington Family Apparel x
Buskirk Chevron Service Stations x x
Buy Buy Baby Family Apparel x
Carmax Used Automobile Dealer x
Dick's Sporting Goods Sporting Goods/Bike Stores x
Floor & Décor Building Materials x
Friedman's Appliances Electronics/Appliance Stores x x
Harbor Freight Tools Building Materials x
Home Goods Home Furnishings x
In N Out Burger Quick-Service Restaurants x x
Jacks Restaurant Casual Dining x x
Kohls Department Stores x x
Lookingpoint Office Equipment x
Marshalls Family Apparel x x
Michaels Arts & Crafts Art/Gift/Novelty Store x x
Nordstrom Rack Department Stores x x
Pacific States Petroleum Petroleum Prod/Equipment x
Pleasant Hill Chevron Service Stations x x
Ross Family Apparel x x
Safeway Grocery Stores x x
Safeway Fuel Service Stations x x
Staples Office Supplies/Furniture x
Sun Valley Chevron Service Stations
Sun Valley Shell Service Stations x x
Target Discount Department Stores x x
TJ Maxx Family Apparel x
Total Wine & More Convenience Stores/Liquors x
Toys R Us Speciality Store x
USA Gas Service Stations x x
Verizon Wireless Electronics/Appliance Stores x
Source: State Board of Equalization, California Department of Taxes and Fees Administration, the HdL Companies. 103
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Apparel Stores 51,402 $ 52,931 $ 57,028 $ 57,335 $ 53,372 $ 49,873 $ 56,898 $ 37,637 $ 58,358 $ 56,048 $ General Merchandise 79,481 92,507 94,199 93,452 96,134 91,851 83,497 60,527 71,340 71,544 Food Stores 31,117 31,741 30,307 30,301 28,409 28,145 28,807 30,967 29,812 30,803 Eating and Drinking Places 102,055 108,428 118,019 122,788 123,566 127,238 127,896 97,097 123,529 141,868 Building Materials 29,894 28,809 29,659 34,630 36,243 35,637 31,577 33,647 44,211 50,712 Auto Dealers and Supplies 10,492 12,551 14,218 18,909 16,261 14,023 31,036 59,813 93,165 88,167 Service Stations 87,660 83,653 69,702 60,334 68,476 81,146 82,471 51,153 71,741 92,867 Other Retail Stores 221,871 239,907 252,981 252,284 255,597 258,428 263,172 243,042 302,245 308,304 All Other Outlets 54,288 50,718 65,615 63,542 67,028 56,580 99,496 87,753 290,704 293,815 Total 668,260 $ 701,245 $ 731,728 $ 733,575 $ 745,086 $ 742,921 $ 804,850 $ 701,636 $ 1,085,105 $ 1,134,128 $ Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Contoller's Office, the HdL Companies Note: Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the City's revenue.

CITY OF PLEASANT HILL
Taxable Sales by Category
Last Ten Calendar Years
(Dollars in thousands)
Adjusted for Economic Data
104

CITY OF PLEASANT HILL
Full-Time Equivalent City Government Employees by Function Last Ten Fiscal Years
#
Adopted for Fiscal Year Ended June 30,
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function
General government 16.75 17.75 16.00 17.00 20.00 17.00 17.00 17.00 18.00 18.00 Public safety 54.00 55.00 56.00 58.00 56.00 57.00 58.00 58.00 59.00 59.00 Public works 23.00 23.00 27.00 24.00 26.00 28.00 25.00 24.00 23.00 23.00 Community development 11.00 11.00 8.00 7.00 7.00 7.00 7.00 6.00 7.00 7.00 Total 115.25 117.75 105.50 104.75 106.75 107.00 106.00 109.00 107.00 107.00 Source: City of Pleasant Hill
‐

20.00 40.00

60.00 80.00
100.00
120.00
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
FTE's
Number of Employees
General government Public safety Public works Community development 105

CITY OF PLEASANT HILL
Operating Indicators by Function/Program
Last Ten Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function/Program
Public safety: (a)
Incident numbers issued 19,582 20,685 20,054 21,145 21,473 27,185 25,634 22,921 23,035 23,669 Traffic citations issued 3,964 5,626 5,126 5,940 3,176 5,282 912 943 1,047 706 Violent Crimes 195 217 235 221 217 74 97 75 66 59
Willful homicide - - - - 1 - - - - 2
Forcible rape 3 2 3 4 6 10 5 1 6 4
Robbery 30 37 44 37 32 42 50 34 18 35
Aggravated assaults 50 48 41 37 27 25 42 59 41 37
Property Crimes 1,564 1,854 1,511 1,623 1,536 1,439 1,476 1,220 1,448 1,588 Burglary 233 211 142 169 143 104 191 119 147 164
Motor Vehicle theft 158 189 198 170 77 86 153 132 143 117 Public works:

Miles of paved streets 110 110 110 110 110 110 110 110 110 110 Number of street lights 1,966 1,966 1,966 1,966 1,966 1,966 1,966 1,966 1,966 1,966 General Government:
(b) Business Licenses renewals (excludes Out of City) 2,961 3,011 3,320 3,250 3,400 3,450 3,300 3,495 3,150 N/A (b) Business License Out of City Contractor 2,523 2,700 2,400 2,100 2,200 2,300 2,100 1,900 2,050 N/A Community Development:

Building permits issued 1,074 2,217 2,145 1,428 1,564 1,558 1,492 1,784 1,472 1,942 Approximate value of building permits 29,054,093 31,562,332 43,311,461 32,110,238 52,602,460 38,848,143 58,981,804 83,578,342 123,776,547 143,169,044 Building inspections conducted 7,013 7,225 7,453 5,915 5,585 N/A 5,682 5,844 8,148 6,346 Source: City of Pleasant Hill
(a) Covers twelve months period November to November.
(b) City has implemented a new system and the data is not aviailable for FY 2023. 106

CITY OF PLEASANT HILL
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function/Program
Public safety:

Police stations 1 1 1 1 1 1 1 1 1 1
Public works:

Miles of streets 110 110 110 110 110 110 110 110 110 110 Street lights 1,966 1,966 1,966 1,966 1,966 1,966 1,966 1,966 1,966 1,966 Pavement Condition
Index 66 66 66 66 68 68 68 70 73 73
Recreation:

Open space acres 207 207 207 207 207 207 207 207 207 207 Number of parks owned 11 11 11 11 11 11 11 11 11 11
Number of acres 66.2 66.2 66.2 66.2 66.2 66.2 66.2 66.2 66.2 66.2 Library - - - - - - - - - 1
Fire protection:

Number of stations 2 2 2 2 2 2 2 2 2 2
Source: City of Pleasant Hill
107
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