City of Pleasant Hill
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2024
Pleasant Hill, California
CITY OF PLEASANT HILL, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2024
Prepared by
FINANCE DIVISION
CITY OF PLEASANT HILL
Annual Comprehensive Financial Report
Year Ended June 30, 2024
Table of Contents
Page
INTRODUCTORY SECTION
Letter of Transmittal ............................................................................................................................................. i List of Principal Officials ..................................................................................................................................... v California Map .................................................................................................................................................... vi Organization Chart ............................................................................................................................................. vii GFOA Certificate of Achievement for Excellence in Financial Reporting .................................................... viii
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 ................................................................................................................. 18 Statement of Activities ..................................................................................................................... 19 Fund Financial Statements:
Governmental Funds:
Balance Sheet ................................................................................................................................... 20 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position - Governmental Activities ................................................................. 21 Statement of Revenues, Expenditures and Changes in Fund Balances ............................................ 22 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities - Governmental Activities ............................................................................................................. 23 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual:
General Fund ............................................................................................................................... 24 Traffic Mitigation Fund ............................................................................................................... 25 Measure J Growth Management Fund ........................................................................................ 26 Gas Tax Fund .............................................................................................................................. 27 American Rescue Plan Act Fund ................................................................................................. 28 Proprietary Fund:
Statement of Fund Net Position ........................................................................................................ 29 Statement of Revenues, Expenses and Changes in Fund Net Position ............................................. 30 Statement of Cash Flows .................................................................................................................. 31 Fiduciary Funds:
Statement of Fiduciary Net Position ................................................................................................. 32 Statement of Changes in Fiduciary Net Position .............................................................................. 33 Notes to Basic Financial Statements ...................................................................................................... 34
CITY OF PLEASANT HILL
Annual Comprehensive Financial Report
Year Ended June 30, 2024
Table of Contents
Page
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited):
Schedule of City’s Proportionate Share of the Net Pension Liability ......................................................... 64 Schedule of City Contributions .................................................................................................................... 65 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 .............................................................................. 85 Combining Statement of Changes in Fiduciary Net Position ........................................................... 86
STATISTICAL SECTION
Financial Trends:
Net Position by Component – Last Ten Fiscal Years .................................................................................. 88 Changes in Net Position – Last Ten Fiscal Years ........................................................................................ 89 Fund Balances of Governmental Funds – Last Ten Fiscal Years ............................................................... 91 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ............................................ 92 Revenue Capacity:
Assessed and Estimated Actual Net Value of Taxable Property – Last Ten Fiscal Years ......................... 93 Property Tax Rates – All Direct and Overlapping Governments – Last Ten Fiscal Years ........................ 94 Principal Property Taxpayers – Current Year and Ten Years Ago ............................................................. 95 Property Tax Levies and Collections – Last Ten Fiscal Years ................................................................... 96 Debt Capacity:
Ratio of Outstanding Debt by Type – Last Ten Fiscal Years ..................................................................... 97 Computation of Direct and Overlapping Debt ............................................................................................ 98 Computation of Legal Bonded Debt Margin – Last Ten Fiscal Years ....................................................... 99 Demographic and Economic Information:
Demographic Statistics – Last Ten Calendar Years .................................................................................. 100 Top 25 Sales Tax Producers – Current Year and Nine Years Ago ........................................................... 101 Sales by Categories – Last Ten Calendar Years ........................................................................................ 102 Operating Information:
Full-Time Equivalent City Government Employees by Function – Last Ten Fiscal Years ..................... 103 Operating Indicators by Function/Program – Last Ten Fiscal Years ........................................................ 104 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years .................................................... 105 i
January 31, 2025
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, 2024 (FY 23/24). 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 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, 2024.
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 to staggered four-year terms. In November 2024, the City Council transitioned from at-large to district-based elections, which was approved by City Council in March 2023 and the districts were finalized in July 2023. The City Treasurer was an elected position, but beginning December 2024, the City Manager will appoint this position. 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.
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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.
Economic Conditions and Budget Challenges
The local and regional condition of the economy have significant influence on the City’s financial position. The national economy has grown over the past year with the real gross domestic product (GDP) rising 3.1%, personal income increasing 0.3%, and consumer spending increasing 0.4%, as of November 2024. This is reflected in the City’s economy with per capita personal income increasing 3.6% from $64,558 to $66,905, as of December 2023. The national and state unemployment rate is currently 4.3% (3.3% prior year) and 5.3% (4.8% prior year), respectively.
The City’s unemployment rate is currently 4.1% (3.1% prior year), which is an increase consistent with national and state trends.
In March 2020, the City Council adopted a resolution regarding the existence of a local emergency due to the COVID-19 pandemic. The City ended the local emergency on February 27, 2023, based on information from the State and the County. Even though the health emergency ended in 2023, the City continued to grapple with the economic impacts of the pandemic. The economy began to improve during 2022 with the influx of federal funds to support individuals, businesses, and government agencies during this time. The City also saw an improvement in sales tax revenues during this period due to receiving federal funds and increasing volume of online shopping due to homes being turned into offices.
More than a year after the end of the local emergency ending, the City has continued to experience some aftereffects from the conclusion of federal financial assistance. The spending power in the City could not be maintained due to several factors, such as the exhaustion of most federal funds, the loss of brick-and-mortar retailers, and higher costs of goods due to inflation and rising interest rates. Although online shopping was already on the rise, the pandemic significantly accelerated the shift, exacerbating financial challenges for physical retail stores. Some of the stores have closed, including some major retailers in our City, leaving behind vacant retail spaces. The City has worked and continues efforts with local businesses to fill those vacancies, but it has been challenging to find retailers to fill some of the larger spaces.
Also, with nationwide concern over inflation, the Federal Reserve raised price-of-good rates 11 times from nearly 0% to 5.25% in the 16 months between March 2022 and July 2023, in pursuit of its 2% inflation target – inflation was 2.7% in November 2024 compared to 9.1% in June 2022.
While the higher interest rates may have addressed inflation, there were negative implications to the economy, including the slowing of home sales. The City observed the decrease of singlefamily home sales during Fiscal Year 2024 from 291 to 246. During 2024, the Federal Reserve reduced interest rates three times, as inflation continued to approach its acceptable range, and the federal interest rate is 4.25% (December 2024). This interest rate reduction could help future home sales, but will take time to see this trend.
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Finally, Transient Occupancy Tax (TOT) recovery remains slow and lags behind pre-COVID-19 levels, while travel demand continues to be affected by the negative impacts of job market and rising costs. The City continues to actively collaborate with the Pleasant Hill Tourism Improvement District, which includes hotel operators and the Chamber of Commerce, to work collectively to market and attract guests to book stays at local hotels.
In March 2021, the federal government approved the American Rescue Plan Act (ARPA) allocating $350 billion to address the economic impacts of the COVID-19 pandemic. Of this amount, $1.2 billion was distributed to smaller cities in California based on population, and the City received $8.3 million in ARPA funds to support recovery efforts. 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 $5.5 million through Fiscal Year 2024 towards local business improvement from the City’s 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 projects and programs in Fiscal Year 2025, including the state-required replacement of the underground storage tank at the police department and the installation of backup generators at the corporation yard and City Hall.
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 $0.3 million into the Pension Trust Fund during fiscal year 2024 based on the audited financial information. In December 2024, the City Council approved another contribution of $0.3 million, based on the preliminary financial information. The Pension Trust Fund is an investment tool used 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.
Addressing critical capital asset and infrastructure needs continues to be a top priority. The City’s Capital Improvement Plan (CIP) for Fiscal Years 2024-2029 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 through March 31, 2037. The funds can be used for essential City services including repaving and maintaining neighborhood streets; maintaining and upgrading the City’s storm drains; adding new sidewalks and paths for walking and biking; 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, 2023, with the assistance of bonds that will be repaid in Fiscal Year 2032. The City Council authorized funds for ongoing programs and projects, such as the maintenance of and the additional hours for the City Library and the Contra Costa Boulevard street improvements from Harriet to Viking. Finally, the City Council was cautious during the COVID-19 pandemic and reduced allocations of Measure K funds towards iv
projects and programs due to the potential effect to sales tax revenues in previous years. This resulted in additional allocations for Measure K projects in the previous years, but also allowed the creation of a debt service reserve for $2.5 million and a facility reserve for the library at $75 thousand annually.
Biennial Budget
During Fiscal Year 2024, the City adopted the biennial budget for Fiscal Year 2025 and Fiscal Year 2026. The goal was to create a realistic plan that addresses the City’s major revenue and expenditure challenges while simultaneously 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, 2023. The City has received this award for 32 consecutive 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, 2024, 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. The City Council Budget Committee also deserves acknowledgment for its thoughtful, prudent guidance and direction on the financial affairs of the City.
Respectfully submitted,
Ethan Bindernagel Erick Cheung
City Manager Finance Manager
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ELECTED OFFICIALS
Matthew Rinn, Mayor
Susan Noack, Vice Mayor
Timothy M. Flaherty, Councilmember
Zac Shess, Councilmember
Allen Vinson, Councilmember
Andrew Kalinowski, City Treasurer
CITY STAFF
Ethan Bindernagel, City Manager
Janet Coleson, City Attorney
Scott Vermillion, Chief of Police
Zach Seal, Economic Development Manager
Troy Fujimoto, City Planner
Geoff Gillette, Public Information Officer
Lyone Conner, City Clerk
Ann James, Director of Public Works
Ling King, Chief Technology Officer
Erick Cheung, Finance Manager
Ericka Mitchell, Chief Human Resources Officer
Geoffrey Simmons, Chief Building Official
CITY OF PLEASANT HILL
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California Map
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CITY OF PLEASANT HILL
Organization Chart
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www.mgocpa.com
Macias Gini & O’Connell LLP
2121 N. California Boulevard, 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, 2024, 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, 2024, 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.
2 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit 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. 3 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 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 31, 2025, 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 31, 2025
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CITY OF PLEASANT HILL
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2024
5 The Management’s Discussion and Analysis (MD&A) section of the Annual Comprehensive Financial Report (ACFR) provides City of Pleasant Hill’s (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 $81.2 million as of June 30, 2024, compared to $77.2 million as of June 30, 2023. The City’s General Fund reported an ending fund balance of $19.4 million, approximately $13.5 million of which was assigned, $1.6 million of which was restricted, $0.1 million of which was nonspendable, and $4.2 million of which was unassigned.
The City’s General Fund ending fund balance increased by $1.1 million, mainly due to slightly higher revenues than the previous year and salary savings from open positions.
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 18-19 of this report.
CITY OF PLEASANT HILL
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2024
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 20- 28 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 29-31 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, 2024
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 32-33 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 34-63 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 64-65 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 68-86 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 $79.5 million at the end of the fiscal year (“FY”), an increase in net position of $3.8 million.
Condensed Governmental Activities Net Position at June 30 ($ in Millions) 2024 2023
Cash and investments 42.2 $ 40.6 $
Other assets 9.0 8.4
Capital assets 93.1 93.3
Total assets 142.3 144.3
Deferred outflows of resources - pension items 21.9 22.7 Net pension liabilities 55.6 52.1
Long-term debt 16.4 18.5
Other liabilities 11.8 13.6
Total liabilities 84.2 83.8
Deferred inflows of resources - pension items 2.9 5.1
Net position:
Net investment in capital assets 74.7 73.1
Restricted 19.1 16.5
Unrestricted (14.3) (13.9)
Total net position $ 75.7 79.5 $
CITY OF PLEASANT HILL
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2024
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 $1.6 million in FY 23/24 due to higher investment earnings of $2.0 million and timing of construction for capital projects such as Contra Costa Boulevard Project from Harriet to Viking which will occur in the FY 24/25. This was partially offset by the use of American Rescue Plan Act funds for $1.5 million for projects and programs such as the Underground Storage Tank at the Police Department and enhancing local business from the PERKS program to improving websites.
Net pension liabilities increased by $3.5 million to $55.6 million and deferred outflows of resources for pension items slightly decreased by $0.8 million to $21.9 million in FY 23/24, due to CalPERS not meeting its assumed rate of return in FY 22/23. CalPERS always reports financial information a year behind, so the impact of FY 22/23 investment returns of 5.8% 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 costs. It is important to note, CalPERS has disclosed its preliminary investment return is 9.1% for FY 23/24.
CITY OF PLEASANT HILL
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2024
9 Governmental Activities
The table below shows the Governmental Activities net position increased by $3.8 million to $79.5 million in FY 23/24.
Changes in Governmental Activities Net Position ($ in Millions) 2024 2023
Expenses
General government 10.9 $ 5.3 $
Public safety 15.8 11.2
Transportation 10.3 14.4
Community development 3.4 2.4
Interest and fiscal charges 0.4 0.4
Total expenses 33.7 40.8
Revenue
Program revenues:
Charges for services 3.7 5.5
Operating contributions and grants 4.6 5.3
Capital contributions and grants 0.1 0.1
Subtotal program revenues 10.9 8.4
General revenues:
Property taxes 9.9 9.4
Sales taxes 10.6 11.0
Measure K transactions and use tax 5.5 5.5
Transient occupancy tax 2.2 2.2
Other taxes 5.8 5.9
Investment earnings 2.0 0.8
Miscellaneous 0.2 0.1
Subtotal general revenues 34.9 36.2
Total revenues 45.8 44.6
Changes in net position 12.1 3.8
Net position, beginning 75.7 63.6
Net Position, ending 79.5 $ 75.7 $
Revenue Highlights
Total governmental revenues decreased by $1.2 million to $44.6 million in FY 23/24, which is explained below.
Program Revenues
Program revenues decreased by $2.5 million. The decrease is primarily due to the City having less reimbursements in ARPA funds in FY 23/24 for various programs and projects. In the prior year, the City used $2.9 million in ARPA funds for various projects and programs, such as pay for essential workers, radios for the police department, and storm drain projects. In FY 23/24, the City was reimbursed for $1.5 million for projects and programs described above (see page 8 and 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.
CITY OF PLEASANT HILL
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2024
10 General Revenues
Property taxes increased by $0.5 million to $9.9 million due to higher assessed valuations on residential properties that have changed ownership.
Sales tax and Measure K transactions use tax revenues decreased by $0.4 million to $16.1 million in FY 23/24.
The sales tax revenue decrease was attributable to lower demand and closure of retail stores, which impacted revenue for general consumer goods and county pool allocations from online shopping during the fiscal year. The sales tax revenue received during the fiscal year represented the third best year, but a drop from the all-time high in FY 21/22, which was $11.4 million.
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, which was $2.5 million in FY 18/19 and dropped to $1.6 million during COVID.
Expense Highlights
Expenses are classified by governmental function. Total expenses for governmental activities were $40.8 million, which was $7.1 million more than the prior year. Major reasons for the net overall changes are explained below.
General government and public safety expenses increased from the prior year due to accounting for deferred pension expenses in the current year for $7.9 million (see Note 10 for additional information) and was -$2.3 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 (-6.1% in prior year and 5.8% current year) and/or assumption changes, since these factors can have a significant impact on future pension contributions. Transportation expenses were lower by $4.1 million due to the composition and timing of projects, especially as some projects were delayed due to COVID-19 in previous years. Most of the transportation expenses incurred are primarily in the Gas Tax Fund.
The following table presents the net expense of each of the City’s governmental activities. Net expense is defined as total program cost over the revenue generated by the program through charges for services, grants, and contributions.
Net Expenses of Governmental Activities ($ in Millions) 2024 2023
General government (9.1) $ (1.8) $
Public safety (15.4) (10.9)
Transportation (6.8) (9.8)
Community development (0.8) 0.3
Interest and fiscal charges (0.4) (0.4)
Total $ (22.6) (32.5) $
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. In June 2022, 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. The policy allowed the reserve to increase based on additional contributions and/or interest earnings into the trust. The Section 115 Pension Trust is $1.4 million as of June 30, 2024, with the City Council authorizing additional contributions of $0.3 million and interest income of $0.1 million. This contingency reserve is available for working capital needs and to mitigate the impacts of an economic downturn or unplanned major expenditure.
CITY OF PLEASANT HILL
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2024
11 Business-Type Activities
The Statement of Net Position and Statement of Activities present a summary of the City’s Business-Type Activities, which only comprises the City’s Diablo Vista Water Enterprise Fund.
Condensed Business-Type Activity Net Position ($ in Millions) 2024 2023
Cash and investments 0.6 $ 0.5 $
Capital assets 1.0 1.0
Total assets 1.6 1.5
Net position:
Net investment in capital assets 1.0 1.0
Unrestricted 0.6 0.5
Total net position 1.6 $ 1.5 $
The net position of the business-type activity was $1.6 million on June 30, 2024, which consisted of a $1.0 million investment in capital assets and $0.6 million of unrestricted net position. The overall net position is $0.1 million higher than the prior fiscal year.
Changes in Business-type Activity Net Position ($ in Millions) 2024 2023
Expenses
Diablo Vista Water 0.3 $ 0.3 $
Revenue
Program revenues:
Charges for services 0.1 0.2
General revenues 0.3 0.3
Total revenues 0.5 0.4
Changes in net position 0.2 0.1
Beginning net position 1.5 1.3
Ending net position 1.6 $ 1.5 $
CITY OF PLEASANT HILL
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2024
12 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, 2024, the City’s governmental funds reported a combined fund balance of $42.3 million.
Approximately $4.3 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 ($17.4 million), committed ($0.9 million), or assigned ($19.8 million). The restricted portion includes $0.2 million from remaining loan proceeds for the library project and $1.4 million from the Section 115 Pension Trust in the General Fund, $5.2 million for Low and Moderate Income Housing Funds, and $5.0 million related to street improvements with Measure J and Gas Tax Funds. The assigned portion includes approximately $3.5 million related to Measure K programs and projects, $4.2 million for various capital projects, and $9 million for contingencies associated with cash flow, 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 23/24, the fund balance for the General Fund was $19.4 million, compared to $18.2 million in the prior year. The $1.2 million increase was due to investment earnings and salary savings from open positions. This was offset by an additional Measure K contribution for $0.8 million to fund a portion of the Contra Costa Boulevard project during the fiscal year.
Revenues
Total General Fund revenues, excluding other financing sources, increased by $0.6 million over FY 22/23 for a total of $36.9 million for FY 23/24. The year-over-year change in revenue sources is noted below.
General Fund Revenues for the Year Ended June 30 ($ in Millions) 2024 2023 Incr./(Decr.)
Revenues by Sources:
Property Tax 9.1 $ 8.7 $ 0.4 $
Sales Tax 10.6 10.9 (0.3)
Measure K Transaction & Use Tax 5.5 5.5 -
Transient Occupancy Tax 2.2 2.2 -
Other Taxes 5.9 5.9 -
Licenses and Permits 1.4 1.7 (0.3)
Intergovernmental 0.2 0.1 0.1
Charges for Services 0.5 0.6 (0.1)
Use of Money and Property 1.4 0.5 0.9
Other 0.1 0.2 (0.1)
Total Revenues $ 36.3 36.9 $ 0.6 $
CITY OF PLEASANT HILL
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2024
13 Property taxes increased by $0.4 million year-over-year to $9.1 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 decreased from the previous year for a combined $16.1 million ($10.6 million + $5.5 million) compared to $16.4 million ($10.9 million + $5.5 million) in the previous year. The sales tax revenue decrease was attributable to lower demand and closure of retail stores, which impacted revenue for general consumer goods and county pool allocations from online shopping during 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, as discussed earlier. TOT revenues have recovered slowly but have not returned to pre-COVID-19 levels. The revenues were $2.2 million in FY 23/24 and FY 22/23.
Use of Money and Property increased $0.9 million due to rising interest rates and adjusting for the fair market value adjustment. The fair value adjustment was for $0.5 million and is a requirement by the Governmental Accounting Standard Board Statement No. 31 (GASB 31), to record the fair value of investments on June 30. The other reason is an additional investment income of $0.4 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. Interest rates have increased over the last couple of years, for example, investment rates for Local Agency Investment Fund (LAIF), which is similar to a savings account for municipalities including the City, have risen over the last several years from 0.3% in FY 21/22, to 2.33% in FY 22/23, and to 4.11% in FY 23/24. Further details can be found in Note 3 to the basic financial statements.
Expenditures
Total General Fund expenditures decreased by $3.0 million over the FY 22/23 amount for a total of $31.0 million for FY 23/24. The year-over-year change in significant expenditures by function is noted below.
General Fund Expenditures for the Year Ended June 30 ($ in Millions) 2024 2023 Incr./(Decr.)
Expenditures by Function and Type
General Government 9.4 $ 9.7 $ (0.3) $
Public Safety 12.8 12.2 0.6
Transportation 3.5 3.5 -
Community Development 2.4 2.3 0.1
Capital Outlay 0.4 3.8 (3.4)
Debt Service - Principal 2.1 2.1 -
Debt Service - Interest and
fiscal charges 0.4 0.4 -
Total Expenditures $ 34.0 31.0 $ (3.0) $
The lower capital outlay expenditures of $3.4 million were mainly due to the completion of the library project.
Public safety is the largest function in the City and is $0.6 million higher due to increasing salary and benefits expense. General government is lower than the previous year by $0.3 million due to vacancies in the City Manager’s office and less non-departmental expense with fewer long term employee settlements in the current fiscal year. Transportation and Community Development were similar to the previous year. FY 23/24 is the third year of debt service on the lease financing the private placement loan for $2.5 million.
CITY OF PLEASANT HILL
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2024
14 Other Financing Sources (Uses)
General Fund Other Financing Sources (Uses) for the Year Ended June 30 ($ in Millions) 2024 2023 Incr./(Decr.)
Other Financing Sources (Uses)
Transfers In 0.2 $ 0.6 $ (0.4) $
Transfers Out (5.0) (6.7) 1.7
Total Other Financing Sources (Uses) $ (6.1) (4.8) $ 1.3 $ During FY 23/24, the City transferred $5.0 million out of General Fund, whereas $6.7 million was transferred during the prior year. Transfers to other funds were $1.7 million less than the prior year due to available Measure K sales tax revenues: a) General Fund transfers to the Gas Tax fund decreased by $1.5 million to $2.9 million; b) General Fund transfers to the Technology Replacement fund decreased by $0.2 million to $0.6 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 and City Council.
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 23/24, the fund received charges for services and interest of $10 thousand and transferred $0.1 million to the Gas Tax Fund for capital projects. The fund balance was $153 thousand as of June 30, 2024.
Measure J Growth Management Fund
The Measure J Growth Management fund accounts for resources that are distributed by the Contra Costa Transportation Authority to the City annually from the countywide Measure J program for transportation improvements and maintenance. 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 $1.1 million and $0.5 million, respectively. It is typical for revenue and expenditures to vary annually due to the timing of maintenance and/or project costs with the reimbursements for grants. The fund balance was $2.0 million as of June 30, 2024.
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, 2024
15 The Gas Tax fund had an excess of revenues over expenditures, including transfers to/from other funds, of $0.9 million during FY 23/24. Grant revenue and gas tax apportionments were $2.3 million, transfers in from other funds were $3.0 million, and expenditures and transfers out were $4.4 million. During the year, $2.9 million in Measure K funds were transferred in from the General Fund, and $0.1 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 $7.2 million on June 30, 2024.
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 a 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, 2024. 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 installments. The first installment was received in July 2021 for $4.2 million and the second funding installment 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 $5.4 million as of June 30, 2024. In FY 23/24, the City spent approximately $1.5 million in ARPA funds for the following projects:
a. $0.5 million for the Underground Storage Tank at the Police Department b. $0.5 million for crossing guards, CORE homeless program and library services c. $0.3 million for business website assistance and matching gift cards through the PERKS program d. $0.2 million for downtown tree project and digital documentation 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, 2024
16 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 04/05. An additional Capital Improvements fee of $135 per household per year was also approved, and was phased in over three years, beginning in FY 04/05. On July 17, 2023, the City Council adopted Resolution No. 57-23, increasing the usage fee amount by $19.15 per household to account for rising water costs and amended the usage fee to $169.15 per household. Also, to provide funding for needed infrastructure projects, the fee was increased by $75 to an amended Capital Improvement fee of $210 per household. 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, original and final budget was $35.7 million. Expenditures, including transfers to other funds, were originally budgeted at $40.3 million and increased to $42.1 million in the final budget.
The FY 23/24 final budget projected the General Fund would have a deficit of $3.9 million. It is important to note that the General Fund includes Measure K, and $0.3 million in capital costs and $2.5 million in debt service is for the library. At the close of FY 23/24, the actual change in fund balance was an increase of $1.2 million. Significant items contributing to the variance are as follows:
Total revenues were $1.4 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 $0.3 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/fair market value adjustments for $0.9 million.
Total expenditures were $6.2 million lower than budgeted. This variance was primarily due to the timing of expenditures for the Measure K library project close out costs of $3.1 million. The following functions were under budget due mainly to salary savings from vacancies: Public safety for $0.9 million; General government for $1.3 million; and Transportation for $0.6 million.
Total other financing sources (uses) were in line with budget. The transfers in of $0.2 million consist of reimbursements related to police services from the Supplemental Law Enforcement Services Fund and the CORE program through ARPA. The transfers out of $5.0 million consist of funding for vehicles, information technology, and capital projects and programs related to the Measure K funds.
Capital Assets
The City’s infrastructure capital assets include streets, storm drains, streetlights, and traffic control devices. Each year, based on the determination of the City’s Engineering Division, completed projects that meet certain criteria are capitalized. Capitalizable projects that are under construction at fiscal year-end are recorded as constructionin-progress and are capitalized as depreciable assets in the year they are completed. Capital assets and accumulated depreciation that are recorded in the City’s financial statements are shown in the table below. Further details for the capital assets can be found in Note 7 to the basic financial statements.
CITY OF PLEASANT HILL
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2024
17 Capital Assets as of June 30 ($ in Millions)
2024 2023
Governmental Activities:
Land 3.4 $ 3.4 $
Construction in progress 2.4 1.5
Buildings and improvements 46.5 46.2
Equipment and furniture 13.1 12.8
Streets and roads 69.0 68.6
Curbs and gutters 17.4 16.9
Storm drains 12.5 11.0
Street lights 4.2 4.1
Traffic control devices 6.8 6.7
Less: accumulated depreciation (82.2) (77.9)
Total 93.1 $ 93.3 $
Business-type Activities:
Water system infrastructure 1.4 $ 1.4 $
Less: accumulated depreciation (0.4) (0.4)
Total 1.0 $ 1.0 $
During FY 23/24, capital assets for governmental activities were $175.3 million compared to $171.2 million, which is an increase of $4.1 million. The main changes were additions to buildings and improvements for $0.3 million for the library, the completion of the Gregroy Garden Storm Drain project for $1.4 million, and the Oak Park Gap Closure project for $0.5 million. The capital assets for business type activities were $1.4 million since there were minimal additions to the Diablo Vista Water system. The City depreciates its depreciable capital assets over their estimated useful lives. Current year depreciation expenses of $4.3 million contribute to a total accumulated depreciation of $82.6 million in FY23/24. 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, 2024, total debt service remaining on the capital financing is $18.2 million with an 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 Division at 100 Gregory Lane, Pleasant Hill, CA 94523.
CITY OF PLEASANT HILL
Statement of Net Position
June 30, 2024
Governmental Business-Type
Activities Activities Total
Assets:
Cash and investments held in City Treasury 42,195,536 $ 648,400 $ 42,843,936 $ Receivables:
Accounts and others 4,355,070 - 4,355,070
Interest 406,474 6,708 413,182
Notes and loans receivable, net 2,643,976 - 2,643,976
Land held for redevelopment 191,049 - 191,049
Restricted cash and investments with trustees 1,439,408 - 1,439,408 Capital assets:
Nondepreciable 5,798,830 - 5,798,830
Depreciable, net of accumulated depreciation 87,307,070 1,013,335 88,320,405 Total assets 144,337,413 1,668,443 146,005,856
Deferred outflows of resources - Pension items 21,887,346 - 21,887,346 Liabilities:
Accounts payable and accrued liabilities 4,272,552 31,560 4,304,112 Unearned revenue 2,898,584 - 2,898,584
Interest payable 25,695 - 25,695
Compensated absences payable:
Due within one year 512,000 - 512,000
Due in more than one year 2,046,172 - 2,046,172
Noncurrent liabilities:
Long-term debt - Due within one year 2,177,569 - 2,177,569 Long-term debt - Due in more than one year 16,354,706 - 16,354,706 Net pension liability - Due in more than one year 55,577,927 - 55,577,927 Total liabilities 83,865,205 31,560 83,896,765
Deferred inflows of resources - Pension items 2,886,328 - 2,886,328 Net position:
Net investment in capital assets 74,739,315 1,013,335 75,752,650 Restricted for:
Special revenue:
General government 4,063,001 - 4,063,001
Public safety projects 821,429 - 821,429
Transportation projects 5,403,971 - 5,403,971
Community development projects 8,362,836 - 8,362,836
Capital projects 334,977 - 334,977
Total restricted net position 18,986,214 - 18,986,214
Unrestricted (14,252,303) 623,548 (13,628,755)
Total net position $ 79,473,226 $ 1,636,883 $ 81,110,109 See accompanying notes to basic financial statements.
18 CITY OF PLEASANT HILL
Statement of Activities
For the Year Ended June 30, 2024
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 10,884,768 $ 152,432 $ 1,555,575 $ 91,361 $ (9,085,400) $ - $ (9,085,400) $ Public safety 167,659 15,821,629 197,466 - (15,456,504) - (15,456,504) Transportation 10,384,411 999,310 2,554,463 - (6,830,638) - (6,830,638) Community development 2,343,956 3,447,449 325,412 - (778,081) - (778,081) Interest and fiscal charges 350,982 - - - (350,982) - (350,982) Total governmental activities 40,889,239 3,663,357 4,632,916 91,361 (32,501,605) - (32,501,605) Business-type activities:
Diablo Vista Water System 328,433 178,396 - - - (150,037) (150,037) Total business-type activities 328,433 178,396 - - - (150,037) (150,037) $ 3,841,753 41,217,672 $ 4,632,916 $ 91,361 $ (32,501,605) (150,037) (32,651,642) General revenues:
Taxes:
Property taxes 304,515 9,915,795 10,220,310
Sales taxes - 10,555,811 10,555,811
Measure K transactions & use tax - 5,463,421 5,463,421
Transient occupancy taxes - 2,230,566 2,230,566
Franchise taxes - 2,597,253 2,597,253
Other taxes - 3,266,343 3,266,343
Investment earnings 19,846 1,968,285 1,988,131
Miscellaneous - 232,808 232,808
Total general revenues 324,361 36,230,282 36,554,643
Change in net position 174,324 3,728,677 3,903,001
Net position, beginning of year 1,462,559 75,744,549 77,207,108 Net position, end of year $ 1,636,883 79,473,226 $ 81,110,109 $ See accompanying notes to basic financial statements.
19 CITY OF PLEASANT HILL
Governmental Funds
Balance Sheet
June 30, 2024
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 $ 150,935 18,069,195 $ 2,133,911 $ 7,223,033 $ 3,029,217 $ 2,950,978 $ 8,638,267 $ 42,195,536 $ Receivables:
Accounts and other 3,983,870 - 1,140 213,936 - - 156,124 4,355,070 Interest 243,566 1,633 24,556 70,887 - - 65,832 406,474 Advance to other funds 60,000 - - - - - - 60,000
Notes and loans receivable, net - - - - 2,551,166 - 92,810 2,643,976 Land held for redevelopment - - - - 191,049 - - 191,049 Restricted cash and investments with trustees 1,439,408 - - - - - - 1,439,408 Total assets 23,796,039 $ 152,568 $ 2,159,607 $ 7,507,856 $ 5,771,432 $ 2,950,978 $ 8,953,033 $ 51,291,513 $ Liabilities, Deferred Inflows of Resources
and Fund Balances:
Liabilities:
Accounts payable and
accrued liabilities 3,291,347 $ - $ 149,927 $ 371,201 $ 1,280 $ 52,394 $ 406,403 $ 4,272,552 $ Unearned revenue - - - - - 2,898,584 - 2,898,584
Advance from other funds - - - - - - 60,000 60,000
Total liabilities 3,291,347 - 149,927 371,201 1,280 2,950,978 466,403 7,231,136 Deferred inflows of resources - unavailable revenue 1,141,381 - - - 616,628 - - 1,758,009 Fund balances (deficits):
Nonspendable - 60,000 - - - - - 60,000
Restricted 152,568 1,605,098 1,959,680 2,939,631 5,153,524 - 5,583,394 17,393,895 Committed - - - - - - 844,410 844,410
Assigned - 13,457,512 50,000 4,197,024 - - 2,060,602 19,765,138 Unassigned - 4,240,701 - - - - 4,238,925 (1,776)
Total fund balances 19,363,311 152,568 2,009,680 7,136,655 5,153,524 - 8,486,630 42,302,368 Total liabilities, deferred inflows of
resources and fund balances 23,796,039 $ 152,568 $ 2,159,607 $ 7,507,856 $ 5,771,432 $ 2,950,978 $ 8,953,033 $ 51,291,513 $ See accompanying notes to basic financial statements.
20 CITY OF PLEASANT HILL
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position - Governmental Activities June 30, 2024
Total fund balances reported on the governmental funds balance sheet 42,302,368 $ 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. 93,105,900 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 21,887,346 Deferred inflows of resources - Pension items (2,886,328) Receivables not available:
Certain receivables are not available to pay for current period expenditures and therefore are deferred in the governmental funds. 1,758,009 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 (18,532,275)
Interest payable (25,695)
Compensated absences (2,558,172)
Net pension liability (55,577,927)
Net position of governmental activities 79,473,226 $
See accompanying notes to basic financial statements.
21 CITY OF PLEASANT HILL
Governmental Funds
Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended June 30, 2024
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 9,124,487 $ - $ - $ - $ - $ - $ 791,308 $ 9,915,795 $ Sales taxes 10,550,458 - - - - - - 10,550,458
Measure K transactions & use tax 5,463,421 - - - - - - 5,463,421 Transient occupancy taxes 2,230,566 - - - - - - 2,230,566 Other taxes and
special assessments - 5,863,596 - - - - 806,978 6,670,574 Licenses and permits 1,440,805 - - - - - - 1,440,805
Intergovernmental 255,276 - 929,587 2,115,416 - 1,542,692 467,187 5,310,158 Charges for services 469,028 - - - - - 352,583 821,611
Fines and forfeitures 13,185 - - - - - 24,656 37,841
Use of money and property 9,959 1,413,379 69,671 223,642 49,068 - 202,566 1,968,285 Other - 54,429 - 6,033 - - 105,250 165,712
Total revenues 36,878,630 9,959 999,258 2,345,091 49,068 1,542,692 2,750,528 44,575,226 Expenditures:
Current:
General government - 9,415,319 - - - 48,226 248,684 9,712,229 Public safety - 12,856,072 - - - - 204,595 13,060,667
Transportation 3,488,757 - 316,462 4,330,086 - - 1,165,351 9,300,656 Community development - 2,413,576 43,342 - 54,012 479,293 364,768 3,354,991 Capital outlay - 337,839 - - - - 2,185,222 2,523,061
Debt service:
Principal 2,138,423 - - - - - - 2,138,423
Interest and fiscal charges 353,949 - - - - - - 353,949 Total expenditures 31,003,935 - 359,804 4,330,086 54,012 527,519 4,168,620 40,443,976 Excess (deficiency) of revenues
over (under) expenditures 5,874,695 9,959 639,454 (1,984,995) 1,015,173 (4,944) 4,131,250 (1,418,092) Other financing sources (uses):
Proceeds from sale
of capital assets - - - - - - 15,696 15,696
Transfers in - 217,062 92,321 2,981,263 5,250 - 3,123,409 6,419,305 Transfers out (4,971,983) (136,139) (166,241) - (62,198) (1,015,173) (67,571) (6,419,305) Total other financing
sources (uses) (4,754,921) (136,139) 2,919,065 (73,920) 5,250 3,071,534 (1,015,173) 15,696 Change in fund balances 1,119,774 565,534 (126,180) 934,070 306 - 1,653,442 4,146,946 Fund balances, beginning of year 18,243,537 278,748 1,444,146 6,202,585 5,153,218 - 6,833,188 38,155,422 Fund balances, end of year $ 152,568 19,363,311 $ 2,009,680 $ 7,136,655 $ 5,153,524 $ - $ 8,486,630 $ 42,302,368 $ See accompanying notes to basic financial statements.
22 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, 2024
Net change in fund balances - total governmental funds 4,146,946 $ 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 2,523,061
Additional capital expenditures 1,516,187
Less current year depreciation (4,265,592)
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 5,705,653
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 (7,857,338) 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. 2,138,423 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 (208,624)
Change in interest payable 2,967
Change in deferred inflows of resources - unavailable revenue 26 ,994 Change in net position of governmental activities 3,728,677 $ See accompanying notes to basic financial statements.
23 CITY OF PLEASANT HILL
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:
Property taxes 4,115,000 $ 4,115,000 $ 4,544,595 $ 429,595 $ Property tax in lieu of Vehicle License Fee 4,532,000 4,532,000 4,579,892 47,892 Sales taxes 10,886,110 10,886,110 10,550,458 (335,652)
Measure K transaction & use tax 5,421,745 5,421,745 5,463,421 41,676 Transient occupancy taxes 2,394,030 2,394,030 2,230,566 (163,464) Other taxes 5,817,425 5,817,425 5,863,596 46,171
Licenses and permits 1,054,680 1,054,680 1,440,805 386,125 Intergovernmental 198,856 198,856 255,276 56,420
Charges for current services 480,089 480,089 469,028 (11,061) Fines and forfeitures 15,000 15,000 13,185 (1,815)
Use of money and property 350,160 350,160 1,413,379 1,063,219 Other 256,480 256,480 54,429 (202,051)
Total revenues 35,521,575 35,521,575 36,878,630 1,357,055 Expenditures:
Current:
General government:
City Council 168,706 168,706 150,380 18,326
City Manager 1,145,156 1,160,538 642,781 502,375
City Attorney 545,465 545,465 419,770 125,695
City Clerk 150,152 150,152 75,477 74,675
City Treasurer 11,467 11,467 11,059 408
Finance 969,599 969,599 955,764 13,835
Computer services 518,944 518,944 511,578 7,366
Human Resources 736,304 736,304 802,629 (66,325)
Risk management 1,472,856 1,472,856 1,375,112 97,744
City Hall facility 152,680 152,680 197,551 (44,871)
Measure K 383,125 358,125 239,582 143,543
Non-departmental 4,411,044 4,411,044 4,033,636 377,408
Total general government 10,665,498 10,655,880 9,415,319 1,250,179 Public safety:
Police 13,702,541 13,702,541 12,856,072 846,469
Transportation:
Public works administration 1,307,443 1,307,443 1,078,017 229,426 Public works maintenance 2,822,012 2,822,012 2,410,740 411,272 Total transportation 4,129,455 4,129,455 3,488,757 640,698 Community development:
Planning 1,384,663 1,384,663 1,183,246 201,417
Building inspection 559,146 559,146 556,901 2,245
Economic development 755,383 740,501 673,429 81,954
Total community development 2,699,192 2,684,310 2,413,576 285,616 Capital outlay - Measure K 3,462,702 2,492,372 337,839 3,124,863 Debt Service:
Principal 2,138,423 2,138,423 2,138,423 -
Interest and fiscal charges 353,949 353,949 353,949 -
Total debt service 2,492,372 2,492,372 2,492,372 -
Total expenditures 36,156,930 37,151,760 31,003,935 6,147,825 Excess of revenues over expenditures (635,355) (1,630,185) 5,874,695 7,504,880 Other financing sources (uses):
Transfers in 155,000 217,198 217,062 (136)
Transfers out (4,971,984) (4,145,722) (4,971,983) 1
Total other financing sources (uses) (3,990,722) (4,754,786) (4,754,921) (135) Change in fund balance (4,626,077) $ (6,384,971) $ 1,119,774 7,504,745 $ Fund balance, beginning of year 18,243,537
Fund balance, end of year $ 19,363,311
See accompanying notes to basic financial statements.
24 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, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:
Charges for services 446,508 $ 446,508 $ - $ (446,508) $ Use of money and property 378 378 9,959 9,581
Total revenues 446,886 446,886 9,959 (436,927)
Expenditures:
Current:
Transportation - - - -
Excess (deficiency) of revenues over (under) expenditures 446,886 446,886 9,959 (436,927) Other financing uses:
Transfers out (136,139) (136,139) (136,139) -
Change in fund balance 310,747 $ 310,747 $ (126,180) (436,927) $ Fund balance, beginning of year 278,748
Fund balance, end of year 152,568 $
See accompanying notes to basic financial statements.
25 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, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 5,626,300 $ 5,626,300 $ 929,587 $ (4,696,713) $ Use of money and property 796 796 69,671 68,875
Total revenues 5,627,096 5,627,096 999,258 (4,627,838)
Expenditures:
Current:
Transportation 648,759 1,101,829 316,462 785,367
Community development 37,943 37,943 43,342 (5,399)
Total expenditures 686,702 1,139,772 359,804 779,968
Excess (deficiency) of revenues over (under) expenditures 4,940,394 4,487,324 639,454 (3,847,870) Other financing sources (uses):
Transfers in 92,321 92,321 92,321 -
Transfers out (4,822,000) (4,822,000) (166,241) 4,655,759 Total other financing sources (uses) (4,729,679) (4,729,679) (73,920) 4,655,759 Change in fund balance 210,715 $ (242,355) $ 565,534 807,889 $ Fund balance, beginning of year 1,444,146
Fund balance, end of year 2,009,680 $
See accompanying notes to basic financial statements.
26 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, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental 2,954,172 $ 2,954,172 $ 2,115,416 $ (838,756) $ Use of money and property 9,018 9,018 223,642 214,624
Other - - 6,033 6,033
Total revenues 2,963,190 2,963,190 2,345,091 (618,099)
Expenditures:
Current:
Transportation 9,869,189 15,421,548 4,330,086 11,091,462 Excess (deficiency) of revenues over (under) expenditures (6,905,999) (12,458,358) (1,984,995) 10,473,363 Other financing sources (uses):
Transfers in 6,980,139 7,803,263 2,981,263 (4,822,000)
Transfers out - (62,198) (62,198) -
Total other financing sources (uses) 6,980,139 7,741,065 2,919,065 (4,822,000) Change in fund balance 74,140 $ (4,717,293) $ 934,070 5,651,363 $ Fund balance, beginning of year 6,202,585
Fund balance, end of year 7,136,655 $
See accompanying notes to basic financial statements.
27 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, 2024
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental - $ - $ 1,542,692 $ 1,542,692 $
Expenditures:
Current:
General government - - 48,226 (48,226)
Community development 474,603 159,500 479,293 (4,690)
Total expenditures 159,500 474,603 527,519 (52,916)
Excess of revenues over expenditures (159,500) (474,603) 1,015,173 1,489,776 Other financing sources (uses):
Transfers out (250,000) (385,000) (1,015,173) (630,173) Change in fund balance (409,500) $ (859,603) $ - 859,603 $ Fund balance, beginning of year -
Fund balance, end of year $ -
See accompanying notes to basic financial statements.
28 CITY OF PLEASANT HILL
Proprietary Fund
Statement of Fund Net Position
June 30, 2024
Diablo Vista
Water System
Enterprise Fund
Assets:
Current assets:
Cash and investments held in City Treasury 648,400 $
Interest receivable 6,708
Total current assets 655,108
Noncurrent assets:
Capital assets:
Depreciable, net of accumulated depreciation 1,013,335
Total assets 1,668,443
Liabilities:
Current liabilities:
Accounts payable and accrued liabilities 31,560
Net position:
Net investment in capital assets 1,013,335
Unrestricted 623,548
Total net position 1,636,883 $
See accompanying notes to basic financial statements.
29 CITY OF PLEASANT HILL
Proprietary Fund
Statement of Revenues, Expenses and Changes in Fund Net Position For the Year Ended June 30, 2024
Diablo Vista
Water System
Enterprise Fund
Operating revenues:
Water district assessments and charges 178,396 $
Operating expenses:
Purchased water 213,105
Personnel services 43,173
Contract services 7,950
Administration and office utilities 35,154
Repairs and maintenance 4,580
Depreciation 24,471
Total operating expenses 328,433
Operating loss (150,037)
Nonoperating revenues:
Property taxes 304,515
Interest income 19,846
Total nonoperating revenues 324,361
Change in net position 174,324
Net position, beginning of year 1,462,559
Net position, end of year 1,636,883 $
See accompanying notes to basic financial statements.
30 CITY OF PLEASANT HILL
Proprietary Fund
Statement of Cash Flows
For the Year Ended June 30, 2024
Diablo Vista
Water System
Enterprise Fund
Cash flows from operating activities:
Cash received from customers 178,396 $
Cash payments to suppliers for goods and services (282,826) Cash payments to other funds for services provided (43,173) Net cash used in operating activities (147,603)
Cash flows from noncapital financing activities:
Property tax received 304,515
Cash flows from capital and related financing activities:
Acquisition of capital assets (2,886)
Cash flows from investing activities:
Interest income received 17,109
Net change in cash and cash equivalents 171,135
Cash and cash equivalents, beginning of year 477,265
Cash and cash equivalents, end of year $ 648,400
Reconciliation of operating loss to
net cash used in operating activities:
Operating loss (150,037) $
Adjustments to reconcile operating loss to
net cash used in operating activities:
Depreciation 24,471
Change in accounts payable and accrued liabilities (22,037) Net cash used in operating activities $ (147,603)
See accompanying notes to basic financial statements.
31 CITY OF PLEASANT HILL
Fiduciary Funds
Statement of Fiduciary Net Position
June 30, 2024
Private-Purpose
Trust Fund -
Successor Custodial
Agency Funds
Assets:
Cash and investments:
Held in City Treasury 1,742,504 $ 428,538 $
Receivables:
Interest - 1,806
Loans receivable 102,470 -
Land held for redevelopment 86,100 -
Total assets 1,931,074 430,344
Liabilities:
Accounts payable and accrued liabilities 191 93,137
Interest payable 50,962 -
Long-term debt:
Due within one year 310,000 -
Due in more than one year 3,055,000 -
Total liabilities 3,416,153 93,137
Net Position (Deficit):
Restricted for governmental entities and others - 337,207 Unrestricted (1,485,079) -
Total net position (deficit) (1,485,079) $ 337,207 $
See accompanying notes to basic financial statements.
32 Private-Purpose
Trust Fund -
Successor Custodial
Agency Funds
Additions:
Redevelopment property tax revenues 1,563,289 $ - $
Investment earnings 3,629 12,522
Members contributions - 298,001
Others - 1,071
Total additions 1,566,918 311,594
Deductions:
Community development expenses 1,848,002 -
Interest and fiscal charges 166,902 -
Benefits paid to participants or beneficiaries - 125,234 Administrative and general - 318,470
Total deductions 2,014,904 443,704
Change in net position (447,986) (132,110)
Net position (deficit), beginning of year (1,037,093) 469,317 Net position (deficit), end of year (1,485,079) $ 337,207 $
CITY OF PLEASANT HILL
Fiduciary Funds
Statement of Changes in Fiduciary Net Position
For the Year Ended June 30, 2024
See accompanying notes to basic financial statements.
33 CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
34 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, 2024
35 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, 2024
36 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 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, 2024
37 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, 2024
38 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, 2024
39 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, 2024:
Governmental
Activities
Beginning Balance 2,349,548 $
Additions 714,071
Payments (505,447)
Ending Balance 2,558,172 $
Current Portion 512,000 $
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, 2024
40 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 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 ended June 30, 2024. Implementation of these requirements did not have a significant impact on the City’s financial statements for the fiscal year ended 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. Implementation of these requirements did not have a significant impact on the City’s financial statements for the fiscal year ended June 30, 2024.
The City is currently analyzing its accounting practices to determine the potential impact on the financial statements for the following GASB Statements:
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.
In December 2023, the GASB issued Statement No. 102, Certain Risk Disclosures. The objective of this statement is to provide information to users of government financial statements about risks that could impact a government's financial health. The statement aims to improve the consistency and transparency of how governments disclose information about risk financing and insurance-related transactions. The requirements of this statement are effective for the City’s fiscal year ending June 30, 2025.
CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
41 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) In April 2024, the GASB issued Statement No. 103, Financial Reporting Model Improvements. The objective of this statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. This Statement also addresses certain application issues. The requirements of this statement are effective for the City’s fiscal year ending June 30, 2026.
In September 2024, the GASB issued Statement No. 104, Disclosure of Certain Capital Assets. This statement requires certain types of capital assets to be disclosed separately in the capital assets note disclosure required by Statement No. 34. Lease assets recognized in accordance with Statement No. 87, Leases and intangible right-to-use assets recognized in accordance with Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, should be disclosed separately by major class of underlying asset in the capital assets note disclosures. Subscription assets recognized in accordance with Statement No. 96, Subscription-Based Information Technology Arrangements, also should be separately disclosed. In addition, this statement requires intangible assets other than those three types to be disclosed separately by major class. This statement also requires additional disclosures for capital assets held for sale. A capital asset is a capital asset held for sale if (1) the government has decided to pursue the sale of the capital asset and (2) it is probable that the sale will be finalized within one year of the financial statement date. Governments should consider relevant factors to evaluate the likelihood of the capital asset being sold within the established time frame. The statement requires that capital assets held for sale be evaluated each reporting period. Governments should disclose (1) the ending balance of capital assets held for sale, with separate disclosures for historical cost and accumulated deprecation by major class of asset, and (2) the carrying amount of debt for which the capital assets held for sale are pledged as collateral for each major class of asset. The requirements of this statement are effective for the City’s year ending June 20, 2026.
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, 2024.
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, 2024.
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, 2024
42 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 and Park and Recreation nonmajor governmental funds, were not budgeted for the year ended June 30, 2024. The operating budget takes the form of a twoyear 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, 2024, the Computer Technology Replacement Fund has a deficit fund balance of $1,776. This deficit is expected to be cured in the year ended June 30, 2025 through receipt of transfers from other funds.
The Successor Agency Private-Purpose Trust Fund had a deficit net position of $1,485,079. 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, 2024, which are expected to be covered with existing fund balance and revenues in fiscal year 2024:
Amount
Nonmajor governmental funds:
American Rescue Plan Act Fund 52,916 $
Traffic Safety 57,845
Landscaping and Lighting Assessment District 22 465
CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
43 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, 2024.
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, 2024.
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 42,843,936 $ 1,742,504 $ 428,538 $ 45,014,978 $ Held with trustees 1,439,408 - - 1,439,408
Total cash and investments 44,283,344 $ 1,742,504 $ 428,538 $ 46,454,386 $ 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, 2024
44 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, 2024
45 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 103,934 $ 794,679 $ 2,798,010 $ 3,696,623 $ Local Agency Investment Fund * - 32,140,078 - 32,140,078 Money Market Mutual Funds * 11,096 - - 11,096
Medium Term Corporate Securities 139,719 156,730 1,466,269 1,762,718 U.S. Government Agency Securities 74,694 617,992 1,400,617 2,093,303 Total investments held in City Treasury 329,443 33,709,479 5,664,896 39,703,818 Investments Held with Trustees:
Equity Mutual Funds (Irrevocable Pension Trust) 1,439,408 - - 1,439,408 Total investments 1,768,851 $ 33,709,479 $ 5,664,896 $ 41,143,226 Cash and Deposits not subject to Interest Rate Risk:
Petty cash on hand 4,760
Cash in banks 5,306,400
Total cash and investments $ 46,454,386
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, 2024, PMIA has a total amount of approximately $178.0 billion and of that amount, 97.00% was invested in non-derivative financial products and 3.00% in structured notes and asset-backed securities, while the weighted average maturity of LAIF was 217 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, 2024
46 NOTE 3 – CASH AND INVESTMENTS (Continued)
Presented below is the actual rating as of June 30, 2024 for each investment type, including those with trustees, as provided by Moody’s ratings:
Investment Type Ratings Total
Money Market Mutual Funds Aaamf 11,096 $
U.S. Government Agency Securities Aaa 2,093,302
Medium Term Corporate Securities Aaa 63,650 $
Aa2 84,855
A1 880,369
A2 528,701
A3 205,144
Total Medium Term Corporate Securities 1,762,719
Total rated 3,867,117
Exempt from credit rating disclosures:
U.S. Treasury Securities Exempt 3,696,623
Not rated:
Local Agency Investment Fund 32,140,078
Equity Mutual Funds (Irrevocable Pension Trust) 1,439,408 Total investments 41,143,226 $
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, 2024.
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, 2024:
Investment Type Total Level 2
Investment by fair value levels
U.S. Treasury Securities 3,696,623 $ 3,696,623 $
U.S. Government Agency Securities 2,093,302 2,093,302
Medium Term Corporate Securities 1,762,719 1,762,719
Total investment by fair value levels 7,552,644 7,552,644 $ Investment not subject to fair value levels
Money Market Mutual Funds 11,096
Local Agency Investment Fund 32,140,078
Equity Mutual Funds (Irrevocable Pension Trust) * 1,439,408 Total investment not subject to fair value levels 33,590,582 Total investments 41,143,226 $
Fair Value Measurement Hierachy
* Valued at net asset value (NAV)
CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
47 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. 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 2,895,123 $
General Fund Nonmajor Governmental Funds 2,076,860
Traffic Mitigation Gas Tax Fund 86,139
Traffic Mitigation Measure J Growth Management Fund 50,000 Gas Tax Fund General Fund 62,198
Measure J Growth Management Fund Nonmajor Governmental Funds 166,241 American Rescue Plan Act Fund General Fund 134,864
Nonmajor Governmental Funds 880,309
Nonmajor Governmental Funds General Fund 20,000
Measure J Growth Management Fund 42,321
Low and Moderate Income Housing Asset Fund 5,250
Total interfund transfers 6,419,305 $
B. Interfund Loan
In January 2024, the General Fund entered into an interfund loan with the General Plan Fee Nonmajor Special Revenue Fund in the amount of $60,000 to provide funding for the completion of the update of the City’s General Plan, 2023-2031 Housing Element and Zoning Ordinance amendment project. The loan requires the repayment of the sum with a one percent simple interest rate. The balance is expected to be repaid by January 2026.
CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
48 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, 2024, principal and interest related to these loans totaled to $252,224, of which the City determined the accrued interest of $114,505 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, 2024, principal and interest related to this loan totaled to $1,507,123 of which the City determined the accrued interest of $502,123 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, 2024, principal and interest related to this loan totaled $784,950.
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, 2024, 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, 2024
49 NOTE 5 – NOTES AND LOANS RECEIVABLE (Continued)
Affordable Housing Fund
Habitat for Humanity
In April 2021, the City entered into a loan agreement with Habitat for Humanity East Bay/Silicon Valley in an amount not to exceed $400,000 to assist in the development of the project as a quality affordable housing development located at 250 Cleaveland Road in the City. The loan shall bear simply interest at a rate of three percent per annum. As of June 30, 2024, the loan balance drawn totals $92,810. Upon completion of the project, the City will enter into separate loan agreement with each qualified homebuyer in the amount of $40,000.
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, 2024, the outstanding balance of the note was $102,470.
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, 2024. At June 30, 2024, 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, 2024
50 NOTE 7 – CAPITAL ASSETS
A. Capital Asset Additions and Retirements
A summary of changes in capital assets for the year ended June 30, 2024 is as follows:
Balance, Balance,
June 30, 2023 Additions Adjustments Transfers June 30, 2024 Governmental activities
Capital assets, not being depreciated:
Land and improvements 3,406,821 $ - $ - $ - $ 3,406,821 $ Construction in progress 1,534,141 2,238,023 - (1,380,155) 2,392,009 Total capital assets, not being depreciated 4,940,962 2,238,023 - (1,380,155) 5,798,830 Capital assets, being depreciated:
Buildings and improvements 46,174,040 321,663 - - 46,495,703 Equipment and furniture 12,834,329 314,431 - - 13,148,760 Streets and roads 68,561,771 283,994 - 148,866 68,994,631 Curbs and gutters 16,909,216 467,279 - 64,125 17,440,620 Storm drains 10,963,119 329,788 - 1,167,164 12,460,071
Street lights 4,149,266 - - - 4,149,266
Traffic control devices 6,731,698 84,000 - - 6,815,698
Total capital assets, being depreciated 166,323,439 1,801,155 - 1,380,155 169,504,749 Less accumulated depreciation for:
Buildings and improvements (10,212,033) (910,733) - - (11,122,766) Equipment and furniture (9,707,348) (981,080) - - (10,688,428) Streets and roads (34,865,924) (1,244,913) - - (36,110,837) Curbs and gutters (10,694,157) (348,812) - - (11,042,969) Storm drains (7,596,460) (414,920) - - (8,011,380)
Street lights (1,708,970) (138,171) - - (1,847,141)
Traffic control devices (3,147,265) (226,963) 70 - (3,374,158) Total accumulated depreciation (77, (4,265,592) 932,157) 70 - (82,197,679) Total capital assets, being depreciated, net 88,391,282 (2,464,437) 70 1,380,155 87,307,070 Governmental activities, capital assets, net 93,332,244 $ (226,414) $ 70 $ - $ 93,105,900 $ Business-type activity
Capital assets, being depreciated:
Water system infrastructure 1,388,691 $ 2,886 $ - $ - $ 1,391,577 $ Less accumulated depreciation for:
Water system infrastructure (353,771) (24,471) - - (378,242) Total capital assets, being depreciated, net 1,034,920 (21,585) - - 1,013,335 Business-type activity, capital assets, net 1,034,920 $ (21,585) $ - $ - $ 1,013,335 $ B. Construction in Progress
Project
Expended to
June 30, 2024
Taylor Blvd - Civic Drive Intersection and
Pathway Improvement Project 1,094,180 $
Underground Storage Tank - Police Department 477,850
Intersection and Crosswalk Improvement Project 446,750
Contra Costa Blvd. Harriet-Viking Project 365,569
Traffic Calming Project 7,660
Total Construction in Progress 2,392,009 $
CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
51 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, 2024, depreciation expense was charged to each function or program for governmental and the business-type activities as follows:
Governmental activities
General government 798,240 $
Public safety 887,749
Transportation 2,579,603
Total depreciation expense - governmental activities 4,265,592 $ Business-type activity
Diablo Vista Water 24,471 $
Total depreciation expense - business-type activities 24,471 $ 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, 2024 is as follows:
Amount
Balance Balance Due Within
June 30, 2023 Retirements June 30, 2024 One Year
2020 Lease Financing Private Placement, New Library
Interest 1.75% per annum, due 6/1/2032 20,670,698 $ (2,138,423) $ 18,532,275 $ 2,177,569 $ A summary of changes in long-term debt of the Successor Agency for the year ended June 30, 2024 is as follows:
Amount
Balance Balance Due Within
June 30, 2023 Retirements June 30, 2024 One Year
Special Tax Refunding Bonds,
Subordinated Series 2002 3,665,000 $ (300,000) $ 3, $ 365,000 $ 310,000
CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
52 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 (now BMO) 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, 2024, total debt service requirements remaining on the Lease Financing are $19,938,974.
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 $4,108,753 payable through September 1, 2032. The redevelopment property tax revenues recognized during the year ended June 30, 2024 were $1,563,289 as against the total debt service payments paid by the Successor Agency of $461,901.
CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
53 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
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 2,334,750 157,622
2030-2032 7,254,901 222,214
$ 1,406,699 18,532,275 $
Successor Agency:
For the Year
Ending June 30, Principal Interest
2025 310,000 $ 147,853 $
2026 325,000 133,228
2027 340,000 117,914
2028 355,000 101,907
2029 370,000 85,211
2030-2033 1,665,000 157,640
$ 743,753 3,365,000 $
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, 2024
54 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, 2024, the government-wide statement of net position reported restricted net position of $19,095,148 in governmental activities, of which $963,622 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.
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.
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.
CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
55 NOTE 9 – NET POSITION AND FUND BALANCES (Continued)
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, 2024, $9,000,000 is reported as assigned fund balance and $1,439,408 is restricted fund balance in the General Fund.
Fund balances for all major and nonmajor governmental funds as of June 30, 2024, were classified as follows: Measure J Low and Moderate Other
Traffic Growth Income Governmental
General Mitigation Management Gas Tax Housing Asset Funds Total Nonspendable:
Interfund Loan 60,000 $ - $ - $ - $ - $ - $ 60,000 $
Restricted for:
General government 1,605,098 $ - $ - $ - $ - $ 1,482,212 $ 3,087,310 $ Public safety - - - - - 821,429 821,429
Transportation - 152,568 1,959,680 2,939,631 - 352,092 5,403,971 Community development - - - - 5,153,524 2,592,684 7,746,208 Capital projects - - - - - 334,977 334,977
Subtotal 1,605,098 152,568 1,959,680 2,939,631 5,153,524 5,583,394 17,393,895 Committed to:
Capital projects - - - - - 844,410 844,410
Assigned to:
Contingency reserve 9,000,000 - - - - - 9,000,000
Encumbrances - others - - - - - - -
Capital projects 4,457,512 - 50,000 4,197,024 - 2,060,602 10,765,138 Subtotal 13,457,512 - 50,000 4,197,024 - 2,060,602 19,765,138 Unassigned: - 4,240,701 - - - (1,776) 4,238,925
Total 19,363,311 $ 152,568 $ 2,009,680 $ 7,136,655 $ 5,153,524 $ 8,486,630 $ 42,302,368 $ 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, 2024, 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 amounted to $40,323.
CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
56 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 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, 2024
57 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, 2024 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 12.47% 10.10% 7.68% Required employer contribution - annual unfunded
accrued liability (UAL) $1,768,161 $0 $0
(*) 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 27.11% 22.83% 13.54% Required employer contribution - annual unfunded
accrued liability (UAL) $1,968,434 $0 $10,359
(*) 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, 2024
58 NOTE 10 – EMPLOYEE BENEFITS (Continued)
Contributions
For the year ended June 30, 2024, the City’s contractually required contributions, which are actuarially determined, were as follows:
Miscellaneous - All Plans 2,313,422 $
Safety - All Plans 3,392,231
Total 5,705,653 $
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, 2024, the City reported the account balance of $1,439,408 as restricted cash and investments with trustees in the General Fund.
Net Pension Liability
At June 30, 2024, the City’s proportionate share of the net pension liability of Miscellaneous Plans and Safety Plans were 0.19946%, or $24,883,052 and 0.24604% or $30,694,873, respectively. The total net pension liability for the City was $55,577,925.
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, 2023, using annual actuarial valuations as of June 30, 2022 rolled forward to June 30, 2023 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 0.0046% while that for the Safety Plans decreased by 0.00058%, from the previous measurement date.
CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
59 NOTE 10 – EMPLOYEE BENEFITS (Continued)
Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended June 30, 2024, the City recognized pension expense of $7,857,338. At June 30, 2024, 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 5,705,653 $ - $ Change in assumptions 3,293,696 -
Differences between expected and actual experience 3,524,730 390,117 Net differences between projected
and actual earnings on plan investments 8,229,375 -
Changes in employer's proportion 735,831 1,273,356
Difference between the employer's contributions
and the employer's proportionate share of contributions 398,0 1,222,855 61 $ 2,886,328 21,887,346 $
$5,705,653 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, 2025.
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
2025 3,821,654 $
2026 2,742,618
2027 6,498,244
2028 232,849
$ 13,295,365
CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
60 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, 2023 are as follows:
Valuation date June 30, 2022
Measurement date June 30, 2023
Measurement period July 1, 2022 to June 30, 2023
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. Mortality rates incorporate full 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, 2022 valuation were based on the 2021 CalPERS Experience Study, 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.
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, 2024
61 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 $ 55,577,925 77,441,966 $ 33,924,266 $ 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 that can be found on the CalPERS website at www.calpers.ca.gov.
CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
62 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, 2024, the City paid MPA net premiums of $2,102,951 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, 2024 and 2023 are as follows:
2024 2023
Uninsured claims, beginning of year 75,613 $ 96,237 $
Incurred claims and changes in estimate (13,444) 75,605 Claim payments (7,680) (96, 229)
Uninsured claims, end of year 54,489 $ 75,613 $
CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
63 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, 2024, the City had outstanding encumbrances for the following governmental funds by fund balance categories:
Fund Balance
Amount Classification
General Fund 192,847 $ Assigned
Gas Tax Fund 2,939,631 Restricted
Gas Tax Fund 3,465,117 Assigned
Low and Moderate Income Housing Asset Fund 1,689 Restricted Nonmajor Governmental Funds 94,113 Restricted
Nonmajor Governmental Funds 558,558 Committed
Total encumbrances 7,251,955 $
Fiscal year 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 Measurement period 2022-23 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) 0.44550% 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 55,577,925 $ 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 12,687,544 $ 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 438.05% 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 76.21% 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 in 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. There is no change in discount rate during measurement period 2023.
CITY OF PLEASANT HILL
Required Supplementary Information (Unaudited)
Schedule of the City's Proportionate Share of the Net Pension Liability Last Ten Fiscal Years
64 Fiscal Year Ended 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Contractually required contributions
(actuarially determined) (CRC) $ 5,705,653 $ 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 Contributions in relation to the CRC (5,705,653) (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) Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Covered payroll $ 13,179,502 $ 12,687,544 $ 12,420,321 $ 11,974,531 $ 11,569,693 $ 11,527,431 $ 11,198,394 $ 10,760,992 $ 10,723,402 $ 10,610,000 Contributions as a percentage of
covered payroll 43.29% 44.23% 42.38% 38.95% 36.23% 32.11% 27.93% 25.75% 22.57% 16.94% ADC for fiscal year June 30, 2024
Actuarial valuation date June 30, 2021
Actuarial cost method Entry-Age Normal Cost Method
Asset valuation method Actuarial value of assets
Inflation 2.30%
Salary increases Varies by entry age and services
Payroll growth 2.80%
Investment rate of return 6.80%, net of pension plan investment and administrative expenses, includes inflation.
Retirement age The probabilities of retirement are based on the 2021 CalPERS Experience Study Mortality
The actuarial methods and assumptions used to set the actuarially determined contributions for the fiscal year ended June 30, 2023 were as follows:
CITY OF PLEASANT HILL
Required Supplementary Information (Unaudited)
Schedule of City Contributions
Last Ten Fiscal Years
The probabilities of mortality are based on the 2021 CalPERS Experience Study. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. 65 CITY OF PLEASANT HILL
Other Nonmajor Governmental Funds
Year Ended June 30, 2024
66 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, 2024
67 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.
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.
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, 2024
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 $ 776 73,839 $ 1,485,120 $ 89,131 $ 206,371 $ 2,209,842 $ Receivables:
Accounts and other - - - - - 110,299
Interest - 237 15,573 - - 24,043
Notes and loans receivable, net - - - - - -
Total assets 74,076 $ 776 $ 1,500,693 $ 89,131 $ 206,371 $ 2,344,184 $ Liabilities and fund balances:
Liabilities:
Accounts payable and accrued liabilities $ - - $ 18,481 $ 89,131 $ 41,797 $ 32,497 $ Advances from other funds - - - - - -
Total liabilities - - 18,481 89,131 41,797 32,497
Fund balances:
Restricted 74,076 776 1,482,212 - 164,574 1,178,273
Committed - - - - - -
Assigned - - - - - 1,133,414
Unassigned - - - - - -
Total fund balances (deficits) 74,076 776 1,482,212 - 164,574 2,311,687 Total liabilities and fund balances 74,076 $ 776 $ 1,500,693 $ 89,131 $ 206,371 $ 2,344,184 $ 68 CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2024
Special Revenue Funds
Supplemental Landscaping
Law Waste and Lighting
Enforcement Management/ Police Special Park and Assessment Senior Van Vehicle Services Recycling Services Recreation District 22 Services Abatement $ 497,972 524,299 $ 77,786 $ 2 $ 68,070 $ 15,725 $ 129,528 $ 15,593 - - - - - 9,199
5,405 5,702 839 - 697 167 -
- - - - - - -
$ 518,970 530,001 $ 78,625 $ 2 $ 68,767 $ 15,892 $ 138,727 $ $ 3,072 - $ - $ - $ 380 $ - $ - $
- - - - - - -
3,072 - - - 380 - -
515,898 530,001 78,625 2 68,387 15,892 138,727
- - - - - - -
- - - - - - -
- - - - - - -
515,898 530,001 78,625 2 68,387 15,892 138,727
$ 518,970 530,001 $ 78,625 $ 2 $ 68,767 $ 15,892 $ 138,727 $ (Continued)
69 Traffic
Affordable Congestion Disability General
Housing Relief Fund Access Plan Fee
Assets:
Cash and investments:
Held in City Treasury $ 118,355 562,193 $ 94,112 $ 223,790 $ Receivables:
Accounts and other - - - -
Interest - 6,115 1,049 2,617
Notes and loans receivable, net - 92,810 - -
Total assets 661,118 $ 118,355 $ 95,161 $ 226,407 $
Liabilities and fund balances:
Liabilities:
Accounts payable and accrued liabilities $ - - $ 8 $ 40,059 $ Advances from other funds - - - 60,000
Total liabilities - - 8 100,059
Fund balances:
Restricted 661,118 118,355 95,153 126,348
Committed - - - -
Assigned - - - -
Unassigned - - - -
Total fund balances (deficits) 661,118 118,355 95,153 126,348 Total liabilities and fund balances 661,118 $ 118,355 $ 95,161 $ 100,059 $
CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2024
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 $ 1,389 68,778 $ 241,778 $ 420,670 $ 917,363 $ 611,378 $ $ 8,638,267 - - 21,033 - - - 156,124
- 765 2,623 - - - 65,832
- - - - - - 92,810
$ 1,389 69,543 $ 265,434 $ 420,670 $ 917,363 $ 611,378 $ 8,953,033 $ $ 3,165 - $ - $ 122,929 $ 2,064 $ 52,820 $ $ 406,403
- - - - - - 60,000
3,165 - - 122,929 2,064 52,820 466,403
- 69,543 265,434 - - - 5,583,394
- - - 285,852 - 558,558 844,410
- - - 11,889 915,299 - 2,060,602
(1,776) - - - - - (1,776)
(1,776) 69,543 265,434 297,741 915,299 558,558 8,486,630 $ 1,389 69,543 $ 265,434 $ 420,670 $ 917,363 $ 611,378 $ 8,953,033 $ (Concluded)
Capital Projects Funds
CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2024
71 CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended June 30, 2024
Special Revenue Funds
Commercial
Landscaping
Gas Tax Unified Street Parkland and Lighting
Traffic Safety 2107.5 Lighting Dedication District 20 NPDES Revenues:
Property taxes - $ - $ 791,308 $ - $ - $ - $
Other taxes and special assessments - - - - 433,047 304,208 Intergovernmental - 6,000 - - - -
Charges for services - - - - - -
Fines and forfeitures 24,656 - - - - -
Use of money and property 963 - 47,940 - 527 63,431
Other - - - - 100,000 -
Total revenues 25,619 6,000 839,248 - 533,574 367,639
Expenditures:
Current:
General government - - 248,684 - - -
Public safety - 158,758 - - - -
Transportation - - - - 896,684 -
Community development - - - - - 214,030
Capital outlay - - - - - 133,306
Total expenditures 158,758 - 248,684 - 896,684 347,336
Excess (deficiency) of revenues
over (under) expenditures (133,139) 6,000 590,564 - (363,110) 20,303 Other financing sources (uses):
Proceeds from sale of capital asset - - - - - -
Transfers in - 158,758 - - 363,331 517,999
Transfers out - - - - (42,321) -
Total other financing sources (uses) 158,758 - - - 321,010 517,999 Change in fund balances 25,619 6,000 590,564 - (42,100) 538,302 Fund balances, beginning of year 48,457 (5,224) 891,648 - 206,674 1,773,385 Fund balances, end of year 74,076 $ 776 $ 1,482,212 $ - $ 164,574 $ 2,311,687 $ 72 CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended June 30, 2024
Special Revenue Funds
Supplemental Landscaping
Law Waste and Lighting
Enforcement Management/ Police Special Park and Assessment Senior Van Vehicle Services Recycling Services Recreation District 22 Services Abatement $ - - $ - $ - $ - $ - $ - $
- - - - 61,582 - -
13,833 186,159 11,069 - - - 37,941
165,077 - - - - 3,424 -
- - - - - - -
18,922 21,020 2,875 - 2,575 606 -
- - - - - - -
197,832 207,179 13,944 - 64,157 4,030 37,941
- - - - - - -
- 45,837 - - - - -
- - - - 98,509 - -
95,097 - - - - 4,052 51,589
- - - - - - -
95,097 45,837 - - 98,509 4,052 51,589
102,735 161,342 13,944 - (34,352) (22) (13,648)
- - - - - - -
- - - - 8,493 - -
- (20,000) - - - - -
- (20,000) - - 8,493 - -
102,735 141,342 13,944 - (25,859) (22) (13,648)
413,163 388,659 64,681 2 94,246 15,914 152,375
$ 515,898 530,001 $ 78,625 $ 2 $ 68,387 $ 15,892 $ 138,727 $ (Continued)
73 Traffic
Affordable Congestion Disability General
Housing Relief Fund Access Plan Fee
Revenues:
Property taxes - $ - $ - $ - $
Other taxes and special assessments - - - -
Intergovernmental - - 88,015 32,809
Charges for services 54,270 - - 129,812
Fines and forfeitures - - - -
Use of money and property 22,189 - 3,438 8,630
Other - 5,250 - -
Total revenues 81,709 - 91,453 171,251
Expenditures:
Current:
General government - - - -
Public safety - - - -
Transportation - - - 170,158
Community development - - - -
Capital outlay - - - -
Total expenditures - - - 170,158
Excess (deficiency) of revenues
over (under) expenditures 81,709 - 91,453 1,093
Other financing sources (uses):
Proceeds from sale of capital asset - - - -
Transfers in - - - -
Transfers out - (5,250) - -
Total other financing sources (uses) (5,250) - - -
Change in fund balances 76,459 - 91,453 1,093
Fund balances, beginning of year 584,659 118,355 3,700 125,255 Fund balances, end of year 661,118 $ 118,355 $ 95,153 $ 126,348 $
CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended June 30, 2024
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 $ - - $ - $ - $ - $ - $ 791,308 $
- 8,141 - - - - 806,978
- - 91,361 - - - 467,187
- - - - - - 352,583
- - - - - - 24,656
- 2,694 6,756 - - - 202,566
- - - - - - 105,250
- 10,835 98,117 - - - 2,750,528
- - - - - - 248,684
- - - - - - 204,595
- - - - - - 1,165,351
- - - - - - 364,768
714,382 - - 181,015 532,542 623,977 2,185,222
714,382 - - 181,015 532,542 623,977 4,168,620
(714,382) 10,835 98,117 (181,015) (532,542) (623,977) (1,418,092) - - - 15,696 - - 15,696
652,421 - - 200,000 500,000 722,407 3,123,409
- - - - - - (67,571)
652,421 - - 215,696 500,000 722,407 3,071,534
(61,961) 10,835 98,117 34,681 (32,542) 98,430 1,653,442 60,185 58,708 167,317 263,060 947,841 460,128 6,833,188 $ (1,776) 69,543 $ 265,434 $ 297,741 $ 915,299 $ 558,558 $ 8,486,630 $ (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, 2024
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, 2024
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 40,119 24,656 (15,463) - - -
Use of money and property 963 212 751 - - -
Other - - - - - -
Total revenues 40,331 25,619 (14,712) 6,000 6,000 -
Expenditures:
Current:
General government - - - - - -
Public safety 158,758 100,913 (57,845) - - -
Transportation - - - 3,000 - 3,000
Community development - - - - - -
Capital outlay - - - - - -
Total expenditures 100,913 158,758 (57,845) 3,000 - 3,000 Excess (deficiency) of revenues
over (under) expenditures (60,582) (133,139) (72,557) 3,000 6,000 3,000 Other financing sources (uses):
Proceeds from sale of capital asset - - - - - -
Transfers in 158,758 - 158,758 - - -
Transfers out - - - - - -
Total other financing sources (uses) - 158,758 158,758 - - - Change in fund balances (60,582) $ 25,619 86,201 $ 3,000 $ 6,000 3,000 $ Fund balances, beginning of year (5,224) 48,457
Fund balances, end of year $ 776 74,076 $
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, 2024
Unified Street Lighting NPDES
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $ 791,308 708,322 $ 82,986 $ - $ - $ - $ - $ - $ - $
- - - 431,901 433,047 1,146 350,000 304,208 (45,792)
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
47,940 1,236 46,704 15,116 527 (14,589) 3,183 63,431 60,248 - - - - 100,000 100,000 - - -
839,248 709,558 129,690 447,017 533,574 86,557 353,183 367,639 14,456 248,684 271,909 23,225 - - - - - -
- - - - - - - - -
- - - 1,372,839 896,684 476,155 4,977 - 4,977
- - - - - - 504,369 214,030 290,339
- - - - - - 1,588,989 133,306 1,455,683
248,684 271,909 23,225 1,372,839 896,684 476,155 2,098,335 347,336 1,750,999 590,564 437,649 152,915 (925,822) (363,110) 562,712 (1,745,152) 20,303 1,765,455 - - - - - - - - -
- - - 97,946 363,331 265,385 518,000 517,999 (1)
- - - - (42,321) (42,321) - - -
- - - 97,946 321,010 223,064 518,000 517,999 (1)
$ 590,564 437,649 152,915 $ (827,876) $ (42,100) 785,776 $ (1,227,152) $ 538,302 1,765,454 $ 206,674 891,648 1,773,385
$ 164,574 1,482,212 $ 2,311,687 $
(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 186,159 100,000 86,159 10,526 13,833 3,307 Charges for services - - - 132,052 165,077 33,025
Fines and forfeitures - - - - - -
Use of money and property 21,020 849 20,171 1,380 18,922 17,542 Other - - - - - -
Total revenues 100,849 207,179 106,330 143,958 197,832 53,874 Expenditures:
Current:
General government - - - - - -
Public safety 45,837 80,000 34,163 - - -
Transportation - - - - - -
Community development - - - 133,529 95,097 38,432
Capital outlay - - - - - -
Total expenditures 80,000 45,837 34,163 133,529 95,097 38,432 Excess (deficiency) of revenues
over (under) expenditures 20,849 161,342 140,493 10,429 102,735 92,306 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 849 $ 141,342 140,493 $ 10,429 $ 102,735 92,306 $ Fund balances, beginning of year 413,163 388,659
Fund balances, end of year $ 515,898 530,001 $
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, 2024
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) $ - - $ - $ - $ - $ - $ - $ - $ - $
- - - 61,583 61,582 (1) - - -
11,069 1,500 9,569 - - - - - -
- - - - - - 2,122 3,424 1,302
- - - - - - - - -
2,875 272 2,603 781 2,575 1,794 54 606 552
- - - - - - - - -
13,944 1,772 12,172 62,364 64,157 1,793 2,176 4,030 1,854 - - - - - - - - -
- - - - - - - - -
- - - 98,044 98,509 (465) - - -
- - - - - - 4,686 4,052 634
- - - - - - - - -
- - - 98,044 98,509 (465) 4,686 4,052 634
13,944 1,772 12,172 (35,680) (34,352) 1,328 (2,510) (22) 2,488 - - - - - - - - -
- - - 8,493 8,493 - - - -
- - - - - - - - -
- - - 8,493 8,493 - - - -
$ 13,944 1,772 12,172 $ (27,187) $ (25,859) 1,328 $ (2,510) $ (22) 2,488 $ 94,246 64,681 15,914
$ 68,387 78,625 $ 15,892 $
(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, 2024
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 37,941 15,914 22,027 - - -
Charges for services 100 - (100) - 54,270 54,270
Fines and forfeitures - - - - - -
Use of money and property - - - 1,591 22,189 20,598
Other - - - - 5,250 5,250
Total revenues 16,014 37,941 21,927 1,591 81,709 80,118 Expenditures:
Current:
General government - - - - - -
Public safety - - - - - -
Transportation - - - - - -
Community development 51,589 114,100 62,511 1,061 - 1,061 Capital outlay - - - - - -
Total expenditures 114,100 51,589 62,511 1,061 - 1,061
Excess (deficiency) of revenues
over (under) expenditures (98,086) (13,648) 84,438 530 81,709 81,179 Other financing sources (uses):
Proceeds from sale of capital asset - - - - - -
Transfers in - - - - - -
Transfers out - - - - (5,250) (5,250)
Total other financing sources (uses) - - - - (5,250) (5,250) Change in fund balances (98,086) $ (13,648) 84,438 $ 530 $ 76,459 75,929 $ Fund balances, beginning of year 584,659 152,375
Fund balances, end of year $ 661,118 138,727 $
For the Year Ended June 30, 2024
CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
80 Capital Outlay
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $ - - $ - $ - $ - $ - $ - $ - $ - $
- - - - 8,141 8,141 - - -
32,809 - 32,809 - - - - - -
129,812 130,000 (188) - - - - - -
- - - - - - - - -
8,630 1,500 7,130 106 2,694 2,588 - - -
- - - - - - - - -
171,251 131,500 39,751 106 10,835 10,729 - - -
- - - - - - - - -
- - - - - - - - -
170,158 785,660 615,502 - - - - - -
- - - - - - - - -
- - - - - - 837,191 714,382 122,809
170,158 785,660 615,502 - - - 837,191 714,382 122,809
1,093 (654,160) 655,253 106 10,835 10,729 (837,191) (714,382) 122,809 - - - - - - - - -
- - - - - - 652,421 652,421 -
- - - - - - - - -
- - - - - - 652,421 652,421 -
$ 1,093 (654,160) 655,253 $ 106 $ 10,835 10,729 $ (184,770) $ (61,961) 122,809 $ 58,708 125,255 60,185
$ 69,543 126,348 $ (1,776) $
(Continued)
General Plan Fee
Computer Technology and
Replacement
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, 2024
81 Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
Revenues:
Property taxes - $ - $ - $ - $ - $ - $
Other taxes and special assessments - - - - - -
Intergovernmental 91,361 46,211 45,150 - - -
Charges for services - - - - - -
Fines and forfeitures - - - - - -
Use of money and property 6,756 96 6,660 - - -
Other - - - 6,000 - (6,000)
Total revenues 46,307 98,117 51,810 6,000 - (6,000)
Expenditures:
Current:
General government - 1,221 1,221 - - -
Public safety - - - - - -
Transportation - - - - - -
Community development - - - - - -
Capital outlay - - - 446,168 181,015 265,153
Total expenditures 1,221 - 1,221 446,168 181,015 265,153 Excess (deficiency) of revenues
over (under) expenditures 45,086 98,117 53,031 (440,168) (181,015) 259,153 Other financing sources (uses):
Proceeds from sale of capital asset - - - 6,000 15,696 9,696 Transfers in - - - 200,000 200,000 -
Transfers out - - - - - -
Total other financing sources (uses - - - 206,000 215,696 9,696 Change in fund balances 45,086 $ 98,117 53,031 $ (234,168) $ 34,681 268,849 $ Fund balances, beginning of year 263,060 167,317
Fund balances, end of year $ 297,741 265,434 $
(Continued)
Replacement
Public Educational and
Capital Grant
Governmental Access Vehicles and Equipment
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, 2024
82 Police Technology Capital Projects
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
$ - - $ - $ - $ - $ - $
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
532,542 710,406 177,864 2,086,923 623,977 1,462,946
532,542 710,406 177,864 2,086,923 623,977 1,462,946
(532,542) (710,406) 177,864 (2,086,923) (623,977) 1,462,946 - - - - - -
500,000 500,000 - 350,000 722,407 372,407
- - - - - -
500,000 500,000 - 350,000 722,407 372,407
$ (32,542) (210,406) 177,864 $ (1,736,923) $ 98,430 1,835,353 $ 460,128 947,841
$ 558,558 915,299 $
(Concluded)
83 CITY OF PLEASANT HILL
Custodial Funds
Year Ended June 30, 2024
84 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 75,186 $ 166,568 $ 186,784 $ 428,538 $ Interest receivable - 1,806 - 1,806
Total Assets 75,186 168,374 186,784 430,344
Liabilities:
Accounts payable and accruals - 93,137 - 93,137
Net Position:
Restricted for:
Governmental entities and others 75,186 75,237 186,784 337,207 Total net position 75,186 $ 75,237 $ 186,784 $ 337,207 $
CITY OF PLEASANT HILL
Custodial Funds
Combining Statement of Fiduciary Net Position
June 30, 2024
85 Acme Landfill Asset Forfeiture
Closure Transpac Holding Fund Total
Additions:
Members contributions - $ 298,001 $ - $ 298,001 $
Investment earnings 2,193 10,329 - 12,522
Others - - 1,071 1,071
Total additions 2,193 308,330 1,071 311,594
Deductions:
Benefits paid to participants or beneficiaries - 10,000 115,234 125,234 Administrative and general - 318,470 - 318,470
Total deductions - 328,470 115,234 443,704
Changes in net position 2,193 (20,140) (114,163) (132,110) Net position, beginning of year 72,993 95,377 300,947 469,317 Net position, end of year 75,186 $ 75,237 $ 186,784 $ 337,207 $
CITY OF PLEASANT HILL
Custodial Funds
Combining Statement of Changes in Fiduciary Net Position For the Year Ended June 30, 2024
86 CITY OF PLEASANT HILL
Statistical Section
Year Ended June 30, 2024
87 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,
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Governmental activities
Net investment in capital assets 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 $ 74,739,315 $ Restricted 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 18,986,214 Unrestricted (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) (14,252,303) Total governmental activities net position $ 59,882,828 56,656,048 $ 55,473,031 $ 56,097,042 $ 54,078,231 $ 56,644,703 $ 61,667,495 $ 63,578,528 $ 75,744,549 $ 79,473,226 $ Business-type activities
Net investment in capital assets 532,590 $ 524,375 $ 508,158 $ 491,941 $ 479,673 $ 464,476 $ 452,208 $ 439,940 $ 1,034,920 $ 1,013,335 $ Unrestricted 530,294 641,480 752,682 481,814 570,177 688,812 711,427 856,748 427,639 623,548 Total business-type activities net position $ 1,165,855 1,062,884 $ 1,260,840 $ 973,755 $ 1,049,850 $ 1,153,288 $ 1,163,635 $ 1,296,688 $ 1,462,559 $ 1,636,883 $ Primary government
Net investment in capital assets 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 $ 75,752,650 $ Restricted 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 18,986,214 Unrestricted (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) (13,628,755) Total primary government net position $ 61,048,683 57,718,932 $ 56,733,871 $ 57,070,797 $ 55,128,081 $ 57,797,991 $ 62,831,130 $ 64,875,216 $ 77,207,108 $ 81,110,109 $ (40,000)
(20,000)
0 20,000
40,000
60,000
80,000
100,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Thousands
Primary Government Net Position
Net investment in capital assets Restricted Unrestricted 88 CITY OF PLEASANT HILL
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
For the Fiscal Year Ended June 30,
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Expenses:
Governmental Activities:
General Government $ 4,586,389 4,800,859 $ 5,701,798 $ 7,804,038 $ 7,507,044 $ 9,741,367 $ 8,432,265 $ 13,230,100 $ 5,231,155 $ 10,884,768 $ Public Safety 10,061,265 8,789,637 11,729,664 11,259,884 12,791,053 14,033,317 12,925,841 13,757,204 11,198,560 15,821,629 Transportation 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 10,384,411 Community Development 2,927,165 2,450,528 3,206,118 3,010,100 3,015,887 2,333,180 2,360,910 2,735,359 2,478,310 3,447,449 Interest and fiscal charges 120,227 176,388 60,991 17,092 - - 540,308 422,838 386,463 350,982 Total Governmental Activities Expenses 26,800,659 32,918,676 34,919,123 35,315,169 36,597,179 34,295,138 36,578,325 39,189,254 33,642,417 40,889,239 Business-Type Activities:
Water 217,928 253,159 244,104 639,196 293,878 277,436 374,555 267,391 272,115 328,433 Total Primary Government Expenses $ 27,018,587 33,171,835 $ 35,163,227 $ 35,954,365 $ 36,891,057 $ 34,572,574 $ 36,952,880 $ 39,456,645 $ 33,914,532 $ 41,217,672 $ Program Revenues:
Governmental Activities:
Charges for Services:
General Government $ 192,303 166,381 $ 211,572 $ 170,460 $ 184,576 $ 193,465 $ 169,873 $ 219,754 $ 253,534 $ 152,432 $ Public Safety 184,889 159,012 138,235 171,815 144,705 168,603 136,890 152,063 126,900 167,659 Transportation 401,395 404,750 689,386 459,815 517,371 443,989 588,604 559,516 2,394,612 999,310 Community Development 1,559,622 1,279,317 1,497,427 2,338,500 1,894,162 1,976,711 1,858,417 2,200,779 2,762,111 2,343,956 Operating Grants and Contributions 2,956,236 4,021,630 1,957,507 4,003,002 2,920,746 3,976,194 7,357,717 4,603,393 5,345,762 4,632,916 Capital Grants and Contributions 2,863,421 6,784,859 2,516,719 1,822,233 56,542 398,901 561,295 208,381 96,920 91,361 Total Governmental Activities Program Revenues 8,161,221 12,812,594 7,010,846 8,965,825 5,718,102 7,157,863 10,672,796 7,943,886 10,979,839 8,387,634 Business-Type Activities:
Charges for Services:
Diablo Vista Water System 134,235 134,520 134,235 133,950 133,950 133,950 133,950 133,950 133,950 178,396 $ 8,295,456 12,947,114 $ 7,145,081 $ 9,099,775 $ 5,852,052 $ 7,291,813 $ 10,806,746 $ 8,077,836 $ 11,113,789 $ 8,566,030 $ Net (Expense)/Revenue
Governmental Activities $ (18,639,438) (20,106,082) $ (27,908,277) $ (26,349,344) $ (30,879,077) $ (27,137,275) $ (25,905,529) $ (31,245,368) $ (22,662,578) $ (32,501,605) $ Business-Type Activities (83,693) (118,639) (109,869) (505,246) (159,928) (143,486) (240,605) (133,441) (138,165) (150,037) Total Primary Government Net Expense $ (18,723,131) (20,224,721) $ (28,018,146) $ (26,854,590) $ (31,039,005) $ (27,280,761) $ (26,146,134) $ (31,378,809) $ (22,800,743) $ (32,651,642) $ Total Primary Government Program Revenues
89 CITY OF PLEASANT HILL
Changes in Net Position (continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Governmental Activities:
Taxes:
Property Taxes $ 6,231,850 5,975,571 $ 6,619,240 $ 6,986,641 $ 7,257,893 $ 7,817,772 $ 8,298,137 $ 8,714,018 $ 9,422,570 $ 9,915,795 $ Sales Taxes 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 10,555,811 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 5,463,421 Other Taxes (a) 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 8,094,162 Investment Earnings 113,924 137,025 117,561 168,458 657,998 472,936 190,610 (447,458) 788,597 1,968,285 Miscellaneous 91,666 46,688 290,168 98,116 190,604 105,580 64,350 132,263 57,696 232,808 Total Governmental Activities 21,866,218 20,406,042 23,498,480 26,973,355 28,860,266 29,703,747 30,928,321 33,156,401 34,828,599 36,230,282 Business-Type Activities:
Property Taxes 184,412 168,073 199,345 209,118 222,338 234,529 247,463 263,325 287,428 304,515 Investment Earnings 2,252 1,555 5,509 9,043 13,685 12,395 3,489 3,169 16,608 19,846 Total Business-Type Activities 186,664 169,628 204,854 218,161 236,023 246,924 250,952 266,494 304,036 324,361 Total Primary Government $ 22,052,882 20,575,670 $ 23,703,334 $ 27,191,516 $ 29,096,289 $ 29,950,671 $ 31,179,273 $ 33,422,895 $ 35,132,635 $ 36,554,643 $ Change in Net Position
Governmental Activities $ 3,226,780 299,960 $ (4,409,797) $ 624,011 $ (2,018,811) $ 2,566,472 $ 5,022,792 $ 1,911,033 $ 12,166,021 $ 3,728,677 $ Business-Type Activities 102,971 50,989 94,985 (287,085) 76,095 103,438 10,347 133,053 165,871 174,324 Total Primary Government $ 3,329,751 350,949 $ (4,314,812) $ 336,926 $ (1,942,716) $ 2,669,910 $ 5,033,139 $ 2,044,086 $ 12,331,892 $ 3,903,001 $ (a) Includes franchise, transient occupancy, and other taxes General Revenues and
Other Changes in Net Position
90 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General Fund
Nonspendable - $ - $ - $ - $ - $ - $ - $ - $ - $ 60,000 $ Restricted 890,703 890,703 890,703 - - - 14,405,714 4,164,686 491,263 1,605,098 Assigned 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 13,457,512 Unassigned 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 4,240,701 Total General Fund $ 14,310,016 14,060,265 $ 13,356,748 $ 15,358,638 $ 12,309,855 $ 12,405,894 $ 33,102,360 $ 22,098,349 $ 18,243,537 $ 19,363,311 $ All Other Governmental Funds
Nonspendable 41,496 $ 217,163 $ 128,707 $ 41,750 $ - $ - $ - $ - $ - $ - $ Restricted 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 15,788,797 Committed 1,167,308 789,585 742,454 1,105,078 773,160 1,022,449 1,004,658 1,824,678 1,661,214 844,410 Assigned - - - - 676,000 857,771 181,631 1,349,631 3,473,891 6,307,626 Unassigned (292,053) (349) (2,442,390) (250,125) (122,615) (646) (38,451) (103,691) (5,224) (1,776) Total all other governmental funds 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 $ 22,939,057 $ 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
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Thousands
General Fund
Nonspendable Restricted Assigned Unassigned
91 CITY OF PLEASANT HILL
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Revenues
Taxes 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 $ 34,526,606 $ Licenses, permits and fees 532,040 713,527 672,519 937,122 935,597 992,074 979,185 1,380,049 1,706,870 1,440,805 Intergovernmental revenues 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 5,310,158 Charges for services 553,551 660,785 931,803 1,221,440 888,450 871,529 936,198 905,192 1,601,605 1,125,819 Fines and forfeitures 136,499 161,505 196,481 122,079 112,911 97,347 39,298 47,858 47,121 37,841 Use of money and property 137,025 113,923 117,560 168,458 657,993 472,935 190,610 (447,457) 788,600 1,968,285 Other 32,808 58,241 274,902 79,873 159,503 51,431 39,217 73,042 152,321 165,712 Total Revenues 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 44,575,226 Expenditures
Current:
General government 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 9,712,229 Public safety 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 13,060,667 Transportation 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 9,300,656 Community development 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 3,354,991 Capital outlay 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 2,523,061 Debt service:
Principal repayment 1,499,000 1,550,000 1,668,000 872,000 - - 1,555,719 2,066,668 2,102,993 2,138,423 Interest and fiscal charges 179,575 123,524 64,593 18,283 - - 505,864 425,704 389,379 353,949 Total Expenditures 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 40,443,976 Excess (deficiency) of revenues over
(under) expenditures 54,172 805,653 (5,524,664) 5,478,470 (1,977,044) 2,090,860 (6,704,993) (7,548,341) (203,881) 4,131,250 Other Financing Sources (Uses)
Transfers in 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 6,419,305 Transfers (out) (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) (6,419,305) Proceeds from issuance of long term debt - - - - - 26,396,078 - - - Proceeds from sale of capital assets 5,203 19,642 5,686 13,376 14,273 26,405 - 19,789 - 15,696 Total other financing sources (uses) 5,203 19,642 5,686 13,376 14,273 26,405 26,396,078 19,789 - 15,696 Net change in fund balances 59,375 $ 825,295 $ (5,518,978) $ 5,491,846 $ (1,962,771) $ 2,117,265 $ 19,691,085 $ (7,528,552) $ (203,881) $ 4,146,946 $ Debt service as a percentage of
noncapital expenditures 5.2% 6.0% 5.2% 2.9% 0.0% 0.0% 5.7% 7.5% 6.5% 6.6% 92 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) 2015 $4,046,306,836 $760,045,593 $21,389,411 $46,516,033 $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 23,478,813 51,546,179 5,207,540,997 110,394,079 5,317,935,076 5,317,935,076 5.66% 2017 4,561,291,596 821,147,666 23,836,856 65,076,237 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 24,313,582 52,755,763 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 65,494,606 6,861,411,781 103,580,600 6,964,992,381 6,964,992,381 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% 2024 6,741,011,662 1,156,745,985 27,470,222 125,769,412 8,050,997,281 116,682,830 8,167,680,111 8,167,680,111 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
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Millions
Assessed Value
Unsecured Property Secured Property
93 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
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
2024 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
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Property Tax Rates (per $1000 Assessed Value)
City Contra Costa County Miscellaneous Special District Schools and College Districts 94 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 117,324,106 $ 1 1.44% 99,415,043 1 2.00% IMT Capital IV Pleasant Hill 97,708,297 2 1.20% n/a n/a n/a 235 Camelback LLC 96,066,024 3 1.18% n/a n/a n/a
FW California PH Shopping Center LLC 75,937,463 4 0.93% 60,000,000 3 1.20% WM Villa Montanaro LLC 56,703,305 5 0.69% 42,492,319 4 0.85% Tilden Ellinwood LLC 50,193,774 6 0.61% n/a n/a n/a
JMK Family Propertues II LP 41,500,000 7 0.51% n/a n/a n/a Terra Hospitality-SFMSA LLC 40,938,899 8 0.50% n/a n/a n/a Q Van Ness LLC 40,098,245 9 0.49% n/a n/a n/a
Pennisular Realty LLC 38,893,605 10 0.48% n/a n/a n/a
GSG Residl Iron Horse Park n/a n/a n/a 60,184,652 2 1.21% Grupe Real Estate Investors 29 n/a n/a n/a 35,514,697 5 0.71% Oxford Gardens LLC n/a n/a n/a 33,262,898 6 0.67%
EQR Watson General Partnership n/a n/a n/a 32,563,439 7 0.65% MGP X DVC LLC n/a n/a n/a 32,000,000 8 0.64%
Gallup and Whalen Santa Maria n/a n/a n/a 23,935,000 9 0.48% ERP Operating Limited n/a n/a n/a 22,031,338 10 0.44%
Total Ten Total 655,363,718 $ 8.02% 441,399,386 $ 8.86% City Total 8,167,680,111 $ 4,982,119,158 $
Source: County Assessor Fiscal Year Combined Tax Rolls.
CITY OF PLEASANT HILL
Principal Property Taxpayers
Current Year and Ten Years Ago
2023-2024 2014-2015
95 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
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%
2024 9,915,795 100%
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
$11.0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Millions
Taxes Levied and Collected
Taxes Levied
96 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 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
2024 - 18, - 530,742 18, 530,742
Fiscal Year
Total Primary
Government
Percentage of
Personal Income Per Capita
2015 2,540,000 0.17% 74.54
2016 872,000 0.06% 25.16
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) 1.23% 730.04
2022 22,773,691 1.06% 681.91
2023 20,670,698 0.93% 619.77
2024 18,530,742 n/a n/a
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
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Thousands
Amount of Outstanding Debt
Governmental Activities
97 CITY OF PLEASANT HILL
Computation of Direct and Overlapping Debt
June 30, 2024
2023-24 Assessed Valuation $ 8,167,680,111
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 $ 0.809% 19,784,702 2,445,575,000 $ East Bay Regional Park District 1.271% 1,836,849 144,520,000 Contra Costa Community College District 618,770,000 3.054% 18,897,236 Mount Diablo Unified School District 402,855,000 14.852% 59,832,025 Mount Diablo Unified School District Community Facilities District No. 1 1,625,000 14.852% 241,345 Pleasant Hill Recreation and Park District 210,650,000 7.695% 16,210,149 TOTAL GROSS DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $ 116,802,306 3,823,995,000 $ TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $ 116,802,306 DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Contra Costa County General Fund Obligations 171,495,000 $ 3.045% 5,222,023 $ Mount Diablo Unfiied School District Certificates of Participation 9,015,000 14.852% 1,338,908 Pleasant Hill Recreation and Park District Certificates of Participation 4,758,000 76.953% 3,661,424 City of Pleasant Hill General Fund Obligation 18,530,742 100.000% 18,530,742 TOTAL OVERLAPPING GENERAL FUND OBLIGATION DEBT $ 28,753,097 203,798,742 $ Less: Contra Costa County self-supported 1,294,882
NET DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 27,458,215 OVERLAPPING TAX INCREMENT DEBT (Successor Agency) 3,375,000 $ 100.000% 3,375,000 $ TOTAL DIRECT DEBT $ 18,530,742
TOTAL GROSS OVERLAPPING DEBT $ 130,399,661
TOTAL NET OVERLAPPING DEBT $ 129,104,779
GROSS COMBINED TOTAL DEBT $ 148,930,403
NET COMBINED TOTAL DEBT $ 147,635,521 (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 1.43%
Total Direct Debt ($24,840,359) 0.23%
Gross Combined Total Debt 1.82%
Net Combined Total Debt 1.81%
RATIOS TO REDEVELOPMENT SUCCESSOR AGENCY INCREMENTAL VALUE ($773,808,618):
Total Overlapping Tax Increment Debt 0.44%
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. 98 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 $ 8,167,680,111 BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a) $ 306,288,004 AMOUNT OF DEBT SUBJECT TO LIMIT (b): (18,530,742)
LEGAL BONDED DEBT MARGIN $ 287,757,262
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
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%
2024 306,228,004 18,530,742 287,697,262 6.44%
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.
99 CITY OF PLEASANT HILL
Demographic Statistics
Last Ten Calendar Years
Calendar
Year
City
Population
Personal Income
(in thousands)
Per Capita
Personal
Income
Unemployment
Rate
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%
2023 33,352 2,231,438 66,905 4.1%
Source: Reports as of calendar year provided by the HdL Companies 32,000
32,500
33,000
33,500
34,000
34,500
35,000
35,500
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
City Population
‐
20,000
40,000
60,000
80,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Per Capita Personal Income
0.0%
2.0%
4.0%
6.0%
8.0%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Unemployment Rate
100
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 2023 2014
Arco Service Stations x
AT&T Mobility Electronics/Appliance Stores x
Back Forty Texas BBQ Casual Dining 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 x
Floor & Décor Building Materials x
Friedman's Appliances Electronics/Appliance Stores x x
Harbor Freight Tools Building Materials x 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
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
Verizon Wireless Electronics/Appliance Stores x
Source: State Board of Equalization, California Department of Taxes and Fees Administration, the HdL Companies. 101
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Apparel Stores 52,931 $ 57,028 $ 57,376 $ 53,372 $ 49,873 $ 56,898 $ 37,637 $ 58,358 $ 56,049 $ 56,546 $ General Merchandise 92,507 94,199 93,452 96,134 91,851 83,401 60,527 71,340 71,672 69,541 Food Stores 31,741 30,307 30,301 28,409 28,145 28,807 30,967 29,812 30,803 29,813 Eating and Drinking Places 108,443 118,019 122,788 123,608 127,336 128,117 97,397 124,395 142,754 154,947 Building Materials 28,809 29,659 34,630 36,243 35,639 31,577 33,650 44,204 51,633 54,854 Auto Dealers and Supplies 12,551 14,237 18,909 16,240 14,023 31,036 59,794 93,146 89,179 79,543 Service Stations 83,653 69,702 60,334 68,476 81,146 82,471 51,153 72,128 93,690 92,917 Other Retail Stores 239,982 253,048 252,284 255,613 258,438 263,205 243,070 302,413 309,236 282,654 All Other Outlets 50,717 65,615 63,543 67,061 56,581 99,509 87,611 58,336 291,381 285,053 Total 701,334 $ 731,814 $ 733,617 $ 745,156 $ 743,032 $ 805,021 $ 701,806 $ 854,132 $ 1,136,397 $ 1,105,868 $ 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
102
CITY OF PLEASANT HILL
Full-Time Equivalent City Government Employees by Function Last Ten Fiscal Years
#
Adopted for Fiscal Year Ended June 30,
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function
General government 17.75 16.00 17.00 20.00 19.00 19.00 19.00 20.00 20.00 20.00 Public safety 55.00 56.00 58.00 56.00 57.00 58.00 58.00 59.00 59.00 59.00 Public works 23.00 27.00 24.00 26.00 28.00 25.00 24.00 23.00 23.00 23.00 Community development 16.00 20.00 19.00 19.00 19.00 19.00 19.00 19.00 19.50 19.50 Total 111.75 119.00 118.00 121.00 123.00 121.00 120.00 121.00 121.50 121.50 Source: City of Pleasant Hill
‐
20.00 40.00
60.00 80.00
100.00
120.00
140.00
2015 2016 2017 2018 2019 2020 2021 2022 2024
FTE's
Number of Employees
General government Public safety Public works Community development 103
CITY OF PLEASANT HILL
Operating Indicators by Function/Program
Last Ten Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
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 24,406 Traffic citations issued 3,964 5,626 5,126 5,940 3,176 5,282 912 943 1,047 706 878 Violent Crimes 195 217 235 221 217 74 97 75 66 59 73
Willful homicide - - - - 1 - - - - 2 2
Forcible rape 3 2 3 4 6 10 5 1 6 4 4
Robbery 30 37 44 37 32 42 50 34 18 35 39
Aggravated assaults 50 48 41 37 27 25 42 59 41 37 28
Property Crimes 1,564 1,854 1,511 1,623 1,536 1,439 1,476 1,220 1,448 1,588 1,490 Burglary 233 211 142 169 143 104 191 119 147 164 124
Motor Vehicle theft 158 189 198 170 77 86 153 132 143 117 104 Public works:
Miles of paved streets 110 110 110 110 110 110 110 110 110 110 110 Number of street lights 1,966 1,966 1,966 1,966 1,966 1,966 1,966 1,966 1,966 1,966 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 2,372 (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 675 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 2,632 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 55,352,694 Building inspections conducted 7,013 7,225 7,453 5,915 5,585 N/A 5,682 5,844 8,148 6,346 8,957 Source: City of Pleasant Hill
(a) Covers twelve months period November to November.
(b) City has implemented a new business license and permitting system and the data was not available for FY 2023. FY2024 data is based on active licenses while the old system was based on all businesses in the system. 104
CITY OF PLEASANT HILL
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function/Program
Public safety:
Police stations 1 1 1 1 1 1 1 1 1 1 1
Public works:
Miles of streets 110 110 110 110 110 110 110 110 110 110 110 Street lights 1,966 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 73
Recreation:
Open space acres 207 207 207 207 207 207 207 207 207 207 207 Number of parks owned 11 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 66.2 Library - - - - - - - - - 1 1
Fire protection:
Number of stations 2 2 2 2 2 2 2 2 2 2 2
Source: City of Pleasant Hill
105
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